Twelfth Report
Instruments reported
The Committee has considered the following instruments
and has determined that the special attention of the House should
be drawn to them on the grounds specified.
A. Draft Electricity (Single Wholesale Market)
(Northern Ireland) Order 2007
Summary: The Government have brought forward this
Order as a step towards meeting the commitment to establishing
unified markets for electricity and gas in Northern Ireland and
the Republic of Ireland.
This Order is drawn to the special attention of
the House on the ground that it gives rise to issues of public
policy likely to be of interest to the House.
1. The Department of Enterprise, Trade and Investment
(Northern Ireland) (DETINI) have made this Order under section
23 of the Northern Ireland (Miscellaneous Provisions) Act 2006
and paragraph 1(1) of the Schedule to the Northern Ireland Act
2000. An Explanatory Memorandum (EM) has also been provided.
2. The EM states that, in November 2004, DETINI
and the Department of Communications, Marine and Natural Resources
in the Republic of Ireland published a paper entitled "All
Island Energy Market Development Framework", setting out
a joint commitment to the establishment of unified markets in
Northern Ireland (NI) and the Republic of Ireland (ROI) for electricity
and gas, and proposing a schedule for implementation of these
proposals.
3. The first step proposed by this paper was
the introduction of a unified electricity market, which was considered
to require the following elements: (a) removal of physical constraints
in the networks linking the electricity networks in NI and ROI,
to facilitate cross-border trading in electricity; (b) establishment
of a single electricity transmission system for NI and ROI, operated
by a single system operator; and (c) establishment of a single
market for the sale by electricity generators in NI and ROI and
the legacy Power Procurement Business of NIE plc to suppliers
of electricity in NI and ROI (the Single Electricity Market: "SEM").
4. This Order serves to facilitate implementation
of element (c). Among its provisions are those in Articles 6 to
8, which establish a special committee of the Northern Ireland
Authority for Utility Regulation ("the Authority")[1]
- the SEM Committee - which is to take any decision as to the
exercise of certain functions of the Authority, where it considers
such functions materially affect the SEM. Schedule 2 provides
further details of the SEM Committee, such as its composition
and proceedings. It specifies that the SEM Committee shall consist
of not more than 3 persons appointed by DETINI after consultation
with the Authority; not more than 3 persons appointed by DETINI
with the approval of the Irish Minister; and an "independent
member" appointed by DETINI with the approval of the Irish
Minister and after consultation with the Authority
5. The EM states that consultation has been a
key aspect of the SEM project to date. DETINI consulted interested
parties on the draft Order between November 2005 and January 2006;
21 responses were received. While there was general support for
the draft Order, a number of technical changes were suggested,
and amendments were made to the draft Order. The EM adds that
"a number of respondents, including the Democratic Unionist
Party (DUP) and the Social Democratic and Labour Party (SDLP)
emphasised the necessity to address the dominance and market power
of individual participants in order to promote greater competition
in the SEM and enable the projected benefits of the SEM to be
realised."
6. We believe that the House will be interested
to see that the Government have brought forward this Order as
a step towards meeting the commitment to establishing unified
markets for electricity and gas in Northern Ireland and the Republic
of Ireland.
B. Draft Integration Loans for Refugees and
Others Regulations 2007
Summary: These Regulations set up a system of
integration loans for refugees and others. The scheme will replace
the current system of back payments of income-related benefits.
The Committee notes with concern the Government's intention to
add the repayment of such loans to the list of deductions to be
made at source by the Department of Work and Pensions from those
on income-related benefits. We expressed concern over the administration
and impact of such deductions in our 5th Report of this session.
These Regulations are drawn to the special attention
of the House on the ground that they give rise to issues of public
policy likely to be of interest to the House
7. The Home Office have laid these Regulations
under section 13 of the Asylum and Immigration (Treatment of Claimants,
etc) Act 2004, together with an Explanatory Memorandum (EM).
8. These Regulations make provision for integration
loans to be made to those granted refugee or humanitarian protection
status and their respective dependants. They cover, amongst other
things, eligibility criteria, the way in which applications must
be made, and matters concerning repayment.
9. Asylum seekers that are applying for refugee
status may receive asylum support. If their application for asylum
is granted they may currently claim a backdated payment of income-related
benefits (less any asylum support) calculated from the date on
which their asylum application was made until the date of the
final decision. The Government believe that a system of integration
loans will be fairer and more cost-effective, because a loan will
be based on an individual's integration needs, whereas back payments
only reflect the time taken to determine the asylum claim.
10. Decisions on whether a loan should be made
will be taken by the Home Office, whilst arrangements for the
payment and recovery of loans will be handled by the Department
for Work and Pensions (DWP). The Secretary of State's present
intention is to specify the minimum and maximum loan amount as
£100 and £1,000 respectively.
11. The Committee has no comment to make on these
arrangements in general but notes with concern the intention to
add a further item to the list of deductions made at source by
DWP from those on income-related benefits. In our 5th Report of
this session, in relation to the Social Security (Claims and Payments)
Amendment (No. 2) Regulations 2006 (SI 2006/3188), we noted the
view of the Social Security Advisory Committee that multiple deductions
from benefits risked undermining the original purpose of such
deductions: that of clearing priority debts such as housing and
fuel costs. Their report also recommends that there should be
a review of the system of deductions from benefits to "consider
issues of consistency in policy and efficient administration as
well as the impact on claimants of the deductions from benefits",
before there is any further widening of the scheme. Although
no such review has been announced, the Government are proposing
to add yet another deduction to the benefits system.
C. Draft Representation of the People (England
and Wales) and the Representation of the People (Combination of
Polls) (England and Wales)(Amendment) Regulations 2007
Summary: Due to the drafting of the Electoral
Administration Act 2006, the provision requiring an elector to
sign for a ballot paper cannot be enforced and is hereby withdrawn.
An important measure to combat electoral fraud will not now be
available for the May 2007 elections, and the Government's policy
objective of reducing the amount of such fraud may, consequently,
be imperfectly achieved.
These Regulations are drawn to the special attention
of the House on the ground that they may imperfectly achieve their
policy objectives.
12. The Department for Constitutional Affairs
(DCA) have laid these Regulations under the Representation of
the People Acts 1983 and 1985, the Local Government Act 2000 and
the Electoral Administration Act 2006 together with an Explanatory
Memorandum (EM).
13. These Regulations revise the Representation
of the People (England and Wales) (SI 2001/341) and the Representation
of the People (Combination of Polls) (England and Wales) Regulations
(SI 2004/294), as amended, because the provision to require a
signature before the elector can receive a ballot paper is unenforceable.
New Rule 37(1)(d) inserted in the Parliamentary Election Rules
by the Electoral Administration Act 2006 would require the elector
in the polling station, immediately before the delivery of the
ballot paper, to sign the Corresponding Number List (that is created
by the Act) beside the elector's allocated number.
14. The intention was that this provision should
be in place for the elections on 3 May 2007. However, the Electoral
Commission has drawn it to the Government's attention that there
is no provision for the Presiding Officer to refuse to give an
elector a ballot paper if he refuses to provide a signature. The
Electoral Commission was concerned that the absence of this power
would give rise to inconsistent practice and a potential for legal
challenge. The Government have accordingly decided not to commence
the provision, and the necessary amendment to the primary legislation
cannot be made before the May 2007 elections. These Regulations
make consequential amendments to a number of the prescribed forms
to remove the redundant signature column.
15. The Committee has repeatedly stressed the
need for rigorous quality control in the production of legislation
and this case clearly demonstrates the reason it is required.
The consequence of this error is that an important measure to
combat electoral fraud will not now be available for the May 2007
elections, and the Government's policy objective in reducing the
amount of such fraud may, consequently, be imperfectly achieved.
D. Education (Induction Arrangements for School
Teachers) (Consolidation) (England) (Amendment) Regulations 2007
(SI 2007/172)
Summary: Teachers who were set to gain Qualified
Teacher Status between 1 May 2000 and 30 April 2001 were required
to pass a numeracy skills test by 31 August 2002. However, the
Government have recently identified as many as 229 of those teachers
who have still not passed the test. These Regulations extend the
induction period of these teachers to 27 April 2007 or the date,
if earlier, on which they pass the numeracy skills test; and they
also extend the time for passing the test to 27 April 2007. We
believe that the House will be interested to see that the Government
have brought forward Regulations in 2007 to resolve a policy issue
that was originally meant to be concluded in 2002. We look to
the Department to keep Parliament informed of progress.
These Regulations are drawn to the special attention
of the House on the ground that they give rise to issues of public
policy likely to be of interest to the House.
16. The Department for Education and Skills (DfES)
have made the Education (Induction Arrangements for School Teachers)
(Consolidation) (England) (Amendment) Regulations 2007 (SI 2007/172)
under sections 19 and 42(6) of the Teaching and Higher Education
Act 1998. An Explanatory Memorandum (EM) has also been provided.
17. The EM explains that SI 2007/172 amends the
Education (Induction Arrangements for School Teachers) (Consolidation)
(England) Regulations 2001(SI 2001/2897: "the principal Regulations").
The principal Regulations specified that no one was to be employed
as a teacher in a maintained or non-maintained special school
unless he or she had satisfactorily completed an induction period.
They provided that the cohort of teachers who were set to gain
Qualified Teacher Status (QTS) between 1 May 2000 and 30 April
2001 ("the 2000-01 cohort") did not have to take a set
of skills tests to achieve QTS (as was required of later cohorts).
However, the principal Regulations also provided that the 2000-01
cohort had to pass a numeracy skills test to complete induction
satisfactorily, by 31 August 2002. After this deadline any of
the teachers who had not passed the test could not be employed
in a maintained school or non-maintained special school. Despite
these provisions, a number of the teachers in the 2000-01 cohort
have still not passed the test.
18. SI 2007/172 extends the induction period
of these teachers to 27 April 2007 or the date, if earlier, on
which they pass the numeracy skills test; and they also extend
the time for passing the test to 27 April 2007. In setting a new
deadline, DfES wish to ensure that the experienced teachers concerned
are not lost to the profession.
19. The Committee was surprised to read in the
EM that as many as 229 teachers from the 2000-01 cohort who had
not passed the test had recently been identified. We put a number
of questions to DfES to clarify the background which had resulted
in the decision to lay these Regulations. The Department's responses
are printed at the Appendix.
20. The EM explains that DfES have consulted
employers, local authority induction co-ordinators, trades unions,
educational bodies such as the Independent Schools Council Teacher
Induction Panel (ISCTIP), and contacts responsible for induction
policy in Scotland, Wales and Northern Ireland. It states that
there was widespread support for the proposed amendment, with
the vast majority of respondents in favour of a change to the
deadline as proposed.
21. The Department have commented that the numeracy
test was designed to ensure that everyone qualifying to teach
has a thorough grounding in the use of numeracy in the wider context
of their professional role as a teacher; and that, because of
the importance of it, they are taking firm steps to enforce the
skills test policy now that the issue has come to light. We believe
that the House will be interested to see that the Government have
brought forward Regulations in 2007 to resolve a policy issue
that had originally been intended to be concluded in 2002. We
look to the Department to keep Parliament informed of progress
in enforcing the skills test policy through these Regulations.
E. Rates (Regional Rates) Order (Northern
Ireland) 2007 (SR 2007/52)
Summary: The Order fixes the amount of the regional
rates for the year ending on 31 March 2008: 29.10 pence in the
pound for non-domestic property; and 0.3608 pence in the pound
for domestic property. There is a high level of interest in the
use of capital values as the tax base for the rating system, which
underlies this Order.
This Order is drawn to the special attention of
the House on the ground that it gives rise to issues of public
policy likely to be of interest to the House.
22. The Department of Finance and Personnel (Northern
Ireland) (DFPNI) have laid this Order under Article 7(1) and (3)
of the Rates (Northern Ireland) Order 1977. An Explanatory Memorandum
(EM) has also been provided.
23. The Order fixes the amount of the regional
rates for the year ending on 31 March 2008. It fixes 29.10 pence
in the pound as the amount of the regional rate for non-domestic
property and 0.3608 pence in the pound as the amount of the regional
rate for domestic property.
24. The EM states that, in December 2005, the
Secretary of State for Northern Ireland announced the intention
to bring forward percentage increases for 2007-08 of 6.0% and
3.3% for the domestic and non-domestic sectors respectively. It
adds that, although the domestic system has been re-valued on
a capital value basis as opposed to rental values, the increase
to the Regional Domestic rate poundage on last year is the equivalent
of 6%. It also states that there is a high degree of interest
when both the annual percentage increases in the regional rates
and the actual rates in the pound as contained in this Order are
announced.
25. The Committee sought information from DFPNI
to understand more fully the impact of these increases. We received
the following explanation of the components of an average bill:
"The average total domestic rate bill in 2006-07
is estimated to be £670, of which the domestic Regional Rate
accounts for £381. The remaining £289 is accounted for
by the District domestic rates which are set by each of the 26
District Councils and are not within the ambit of the Regional
Rate Order.
"The total domestic rate bill in 2007-08 is
estimated to be £712 with the Regional domestic rate accounting
for £404 of the total. The remaining £308 is accounted
for by the District domestic rates which are set by each of the
26 District Councils and are not within the ambit of the Regional
Rate Order.
"The overall (Regional plus District Council)
domestic rate bill is estimated to increase by £42. The Regional
Rate component of this change is £23 (+6%)."
26. We also asked for more information about
the high degree of interest which, according to the EM, had been
shown in these increases. DFPNI commented as follows:
"Concerns that have been expressed about the
increase have been overshadowed by reaction to the redistributive
effect of the first capital value revaluation, which represents
a fundamental reform of the system, not the recurring annual increase
in overall rate revenue. In relation to the 6% Regional Rate increase
as a distinct issue, criticism has been largely confined to local
government. Some District Councils have been keen to point out
that the increases in the regional rates continue to be higher
than the respective district rates that each council individually
sets. They too have referred to the move to capital values indicating
that they have no control over either the system of rating or
on the level of increase in the regional rates."
27. In response to a question which we posed
about reactions to the first capital value revaluation, DFPNI
offered the following comments:
"The Order in question (NI SR 52) does not concern
itself with the reform process, it merely sets a tax rate using
a new tax base which itself has been subject to extensive consultation
and the scrutiny of parliament with the passing of new legislation
last year. The rating reforms have attracted keen media interest
since the capital values were published following the recent revaluation
and notified to ratepayers in July and August of 2006. The previous
revaluation was in 1976 (which used old rental values, similar
to those which existed before the Poll Tax in GB) and this is
the first one carried out on a capital value basis.
"Revaluations are not about increasing the proceeds
from the rating system. Revaluations are about redistributing
the rating burden amongst households in a fairer and more easily
understood way. The impact of this change, without allowing for
those on full rate rebate, is that about 55% of households will
find themselves either paying a reduced share of local taxation
or no change and 45% paying more. This has inevitably increased
public interest and stimulated both public and political debate...
"To prevent hardship, the Government has put
in place a range of measures, including relief for lower income
households, which includes those on modest incomes in high value
properties and a 3 year transitional relief scheme for those whose
rate bill has increased by more than a third due to the revaluation.
In addition, as part of the St Andrew's agreement, the Government
intends to adhere to the wishes of local political parties by
introducing a cap and enhanced relief for low income pensioners
in advance of restoration happening, so that the changes are in
place for the new bills."
28. We recognise that, as the Department have
said, this Order merely sets a rate using a new tax base, and
that the resulting increase in the regional rates is lower than
the increases in the two preceding years. None the less, it is
clear that there is a high level of interest in the use of capital
values as the tax base, and we believe that the House will be
interested to see that this Order specifies rates against the
new tax base.
1 The Authority was established under Article 3 of
the Energy (Northern Ireland) Order 2003 and created by combining
the responsibilities previously held by the separate offices of
Director General of Electricity Supply and Director General of
Gas Supply. The role of the Authority includes the regulation
of the electricity and natural gas industries in Northern Ireland
within the strategic policy parameters determined by Ministers. Back
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