Select Committee on Merits of Statutory Instruments Eighth Report


Eighth Report


Instruments drawn to the special attention of the House

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 Local Authorities (Alcohol Disorder Zones) Regulations 2008

Summary: These Regulations set out how Alcohol Disorder Zones (ADZs) are to be designated and administered, and how charges within them are to be levied. We found the Explanatory Memorandum unclear. Much of the practical detail is in the draft Guidance which was not published with the instrument, which we regard as poor practice. The Committee was left with an impression of a rather bureaucratic system and without a clear idea of how ADZs fit in with the other items in the local authorities' toolkit for combating alcohol-fuelled disorder. Correspondence from the Local Government Association endorses these concerns. We also had some questions over the robustness of the figures given in the Regulatory Impact Assessment. The House may wish to seek further information on how the temporary nature of ADZs is to be assured and how the complex charging structure is to be implemented in a practical and transparent way.

These Regulations are drawn to the special attention of the House on the ground that they may imperfectly achieve their policy objectives.

1.  The Home Office (HO) have laid these Regulations under sections 15-17 and 20 of the Violent Crime Reduction Act 2006 and sections 13 and 105 of the Local Government Act 2000, together with an Explanatory Memorandum (EM) and a Regulatory Impact Assessment (RIA).

2.  Alcohol Disorder Zones (ADZs) are a Government manifesto commitment which were enacted by sections 15-20 of the Violent Crime Reduction Act 2006. These Regulations set out how the ADZs are to be designated and administered, and how charges within them are to be levied.

3.  We found the EM more of a press notice than a clear explanation of the policy objectives and of how the Regulations contribute to their achievement. Much of the practical detail is in the draft Guidance which was not published at the same time as the instrument, which we regard as poor practice. We understand that it was posted on the Home Office website[1] about a week later.

4.  The RIA which accompanies the Regulations is the same one that was provided for the Bill in 2005. It relies heavily on the evidence from pilot projects such as Manchester City Centre Safe where "the rising trend of late night disorder was reduced by 8.5% in the first year and 12.3% in the second year". However, following our enquiries, the Home Office have revised the initial figure to 6.2%, and plan to revise the RIA to say:

"As a result of this approach [Manchester City Centre Safe], which also includes an accreditation scheme for well-run premises, and full use of enforcement tools by the police and Trading Standards, the level of serious assaults in Manchester City Centre was reduced by 46% between 1999/ 2000 when the scheme was established and 2004/ 05 (the last year for which comparable data is available) [2]
YearNumber of serious assaults in the City Centre Percentage change on previous year
1999/ 2000225 N/A
2000/ 01211 - 6.2
2001/ 02185 - 12.3
2002/ 03198 + 7.0
2003/ 04186 - 6.1
2004/ 05122 - 34.4

The temporary rise in the number of serious assaults in 2002/03 may be due to the fact that the Commonwealth Games and World Cup were both held in that year. The fall in the number of serious assaults over five years is equivalent to an average of approximately 12% per year." The revised extract is printed at the Appendix.

5.  While this claim may be statistically true, the more detailed figures show a rather more complex story, and the Committee questions how robust the Home Office's estimates of the anticipated benefits can be if extrapolated from these figures: "based on the experience in Manchester we estimate that ADZs, which would have a greater focus on public space issues, would lead to a reduction in all alcohol-related crimes (including more serious wounding, less serious wounding and common assault) of around 10% over a year."[3]

6.  We also noted that the Home Office estimate in the RIA that 30 areas will commence the ADZ process in the first year, but only 6 would move to the charging regime. They have not supplied projections for subsequent years which they say will be reviewed after the first year of implementation. The Local Government Association (LGA) have expressed "serious misgivings about this policy", in particular about how they are to recover set-up costs in the case where the issues are resolved before the charging regime can be initiated and whether local authorities will be liable for the costs incurred by other agencies if the income from ADZ charges is inadequate. The LGA letter is printed at the Appendix.

7.  It also appears that a key measure of success which might lead to bars having their fees discounted or the ADZ lifted would be strict checks on the age of drinkers. To justify this element of the policy, it would have been helpful to be given an indication of what percentage of the alcohol-fuelled disorder, that these Regulations seek to combat, is attributable to underage drinking. The HO argue that those establishments which fail to take action to eliminate underage sales also tend to be the premises associated with crime and disorder more generally.

8.  The Committee was left with an impression of a rather bureaucratic system and without a clear idea of how it fits in with the other items in the local authorities' toolkit for combating alcohol-fuelled disorder. We were not clear why this policy was required in addition to voluntary measures such as Business Improvement Districts, or enforcement action such as suspending the licences of delinquent bars, or charging delinquent individuals under existing legislation.

9.  Our further enquiries failed to gain a clear assurance on two points which the House may wish to pursue in more detail during the debate:

  • the temporary nature of ADZs: the documentation repeatedly states that ADZs are a temporary measure of last resort but, although Regulation 22 requires there to be three-monthly reviews of the action plan, there is no measure to set a finite time-limit to this additional, if carefully ring-fenced, source of income to the local authorities.
  • the arcane nature of the charging system: as well as offering significant scope for discounts and exemptions, the basic method of calculation is highly variable. Regulation 16 sets out a formula comprising two indicators (rateable value and hours open) but these factors can first be weighted and then added or multiplied. Under Regulation 16(6), the basis of calculation can differ within the zone as long as all premises of the same description have their scores calculated in the same way. The Home Office guidance states (para 6.20) that authorities may have bespoke local bandings to ensure that premises pay for the amount of additional services they receive, but Regulation 16(4) allows a higher charge to be levied if local authorities think that premises are using a higher level of non-baseline services. The level of charge is not capped as long as it reflects the actual enforcement costs, but the guidance also states that the charge should seek not to endanger the economic viability of premises (guidance para 6.25). Our concern is about the transparency and practicality of this proposal: we suspect that, if implemented as set out, this charging structure could result in a large number of individual premises contesting the level of their charge in comparison with that of their competitors, which would result in a significant diversion of local authority resources from addressing the alcohol disorder problem.

CONCLUSION

10.  Although the policy is optional, given its complexity we wonder how many local authorities will actually take it up, and we draw the Regulations to the special attention of the House on the ground that they may imperfectly achieve their policy objectives.

B.  Armed Forces and Reserve Forces (Compensation Scheme) (Amendment) Order 2008 (SI 2008/39)

Summary: The Ministry of Defence have brought forward this Order to amend the rules of the armed forces compensation scheme, to respond in particular to concerns expressed about the level of awards to personnel who have sustained more than one injury in one incident.

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.

11.  The Ministry of Defence (MOD) have laid the Armed Forces and Reserve Forces (Compensation Scheme) (Amendment) Order 2008 ("the 2008 Order") under sections 1(2) and 10(2) and (3) of the Armed Forces (Pensions and Compensation) Act 2004. An Explanatory Memorandum (EM) has been provided.

12.  The EM states that the 2008 Order amends the Armed Forces and Reserve Forces (Compensation Scheme) Order 2005 ("the 2005 Order"), in order to amend the provisions of the 2005 Order that apply where more than one injury has been sustained in one incident, and to amend a number of injury descriptors in Table 5 (Amputations) of the injury tariff.

13.  The EM explains that, since the introduction of the 2005 Order, MOD have monitored the operation of the compensation scheme, taking account of experience of live claims. It states that one particular case received widespread media coverage in 2007, and that MOD were prompted to review the particular rules applied to that case and similar cases in order to assess whether the Scheme still fulfilled the original intent of focussing resources on the most severely injured. The review identified a requirement to amend the effect of the rule which applied discounting to an award of lump sum benefit where the individual sustained more than one injury in one incident. The EM adds that the injury tariff contained in Schedule 4 has been amended to enable final injury benefit to be payable for an injury for which no provision was available previously, and to decouple certain categories of combined amputation items.

14.  On 15 January 2008, Mr Derek Twigg, MP, Parliamentary Under-Secretary of State for Defence, made a statement about these amendments:

"I am pleased to confirm that the rule will be amended so that in future those who qualify for 100 per cent of the guaranteed income payment (GIP), who are by definition the most seriously injured, will receive 100 per cent of the surplus payable of all injuries sustained in a single incident, up to a maximum of £285,000. Those who do not qualify for 100 per cent GIP payments will continue to have the current discounting rule applied to their multiple injuries. This does not affect injuries sustained in separate incidents as these are already paid at the full tariff value of the injury.

"The new rule applies to those whose injuries are sustained on or after the legislation comes into force. Cases whose multiple injuries were sustained between 6 April 2005 (the start of the scheme) and the date the new rule comes into force and who qualify for 100 per cent GIP will, exceptionally, have an additional benefit paid to bring them to the same level as those who have the new rule applied."

15.  MOD have stated that they carried out a consultation exercise on the proposed changes in October/November 2007 and received 15 responses, of which 10 were from ex-service organisations and five from service personnel. They say that "on the whole these were supportive of the proposed change."

16.  We believe that the House will be interested to see that the Ministry of Defence have brought forward this Order to amend the rules of the armed forces compensation scheme, to respond in particular to concerns expressed about the level of awards to personnel who have sustained more than one injury in one incident.


1  http://police.homeoffice.gov.uk/news-and-publications/publication/operational-policing/Alcohol_disorder_zones_guid1.pdf?view=Binary  Back

2   Greater Manchester Police recorded crime statistics Back

3   See paragraph 5.12 of the Home Office's revised RIA, at the Appendix. Back


 
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