Constitutional Reform and Governance Bill

House of Lords

Session 2009 - 10
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Other Bills before Parliament

Constitutional Reform and Governance Bill

Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
76

      (5)
The repayment direction must specify the period (the “repayment
period”) before the end of which that amount is to be paid.
      (6)
A repayment direction may also require the member to do one or
both of the following before the end of the repayment period—
(a)
pay to the IPSA interest on the amount mentioned in sub-
5
paragraph (4), at the rate and in relation to the period
specified in the direction;
(b)
pay to the IPSA an amount reasonably representing the
costs incurred by the IPSA in relation to the overpayment,
including the costs of the Compliance Officer in
10
conducting the investigation.
      (7)
The Compliance Officer must send a copy of the repayment
direction to the IPSA.
      (8)
References in this Part of this Schedule to a member of the House
of Commons include a former member of that House.
15
      (9)
In this Schedule “overpayment”, “repayment direction” and
“repayment period” have the meaning given by this paragraph
(but in relation to the repayment period, see further paragraph
4(3)).
Guidance etc
20
2     (1)
The IPSA must prepare guidance about the circumstances in
which the Compliance Officer should include in a repayment
direction a requirement under paragraph 1(6)(a) or (b).
      (2)
The guidance must include guidance about whether the
Compliance Officer should include such a requirement if
25
paragraph 1(3) applies.
      (3)
The amount mentioned in paragraph 1(6)(b) is to be calculated by
the Compliance Officer in accordance with a scheme prepared by
the IPSA for that purpose.
      (4)
Before preparing guidance under sub-paragraph (1) or a scheme
30
under sub-paragraph (3) the IPSA must consult the persons listed
in section 9A(6).
Appeal against repayment direction
3     (1)
A member who has been given a repayment direction under
paragraph 1 may appeal to the First-tier Tribunal against—
35
(a)
the Compliance Officer’s findings under section 9(5);
(b)
if paragraph 1(3) applies, the Compliance Officer’s
decision to give the member a repayment direction;
(c)
if paragraph 1(3) applies, the amount the member is
required to repay because of paragraph 1(4)(a);
40
(d)
a requirement contained in the repayment direction
because of paragraph 1(6).
      (2)
An appeal under this paragraph must be brought before the end
of the period of 28 days beginning with the day on which the

Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
77

repayment direction is sent to the member (unless the Tribunal
directs that it may be brought after the end of that period).
      (3)
An appeal under this paragraph is by way of a rehearing.
      (4)
On an appeal under this paragraph the Tribunal may—
(a)
allow the appeal in whole or in part, or
5
(b)
dismiss the appeal.
      (5)
If the Tribunal allows the appeal (in whole or in part) it may—
(a)
revoke the repayment direction;
(b)
revoke or vary any requirement contained in the
repayment direction;
10
(c)
make any other order it thinks fit.
      (6)
If the Tribunal dismisses the appeal it may make any other order
it thinks fit.
      (7)
The Compliance Officer must notify the IPSA of the Tribunal’s
decision (and the result of any further appeal).
15
Extension of repayment period
4     (1)
The member may at any time before the end of the repayment
period make an application to the Compliance Officer for the
Compliance Officer to extend (or further extend) the repayment
period.
20
      (2)
The Compliance Officer must notify the IPSA of any decision by
the Compliance Officer to extend (or further extend) the
repayment period.
      (3)
If the Compliance Officer extends (or further extends) the
repayment period, references in this Schedule to the repayment
25
period are to that period as extended (or further extended) by the
Compliance Officer.
      (4)
The member may appeal to the First-tier Tribunal against the
Compliance Officer’s decision on an application under this
paragraph.
30
      (5)
An appeal under this paragraph must be brought before the end
of the period of 28 days beginning with the day on which notice of
the decision is sent to the member (unless the Tribunal directs that
it may be brought after the end of that period).
      (6)
The appeal is by way of a rehearing.
35
      (7)
The Tribunal may—
(a)
allow the appeal in whole or in part, or
(b)
dismiss the appeal.
      (8)
If the Tribunal allows the appeal (in whole or in part) it may—
(a)
revoke or vary the Compliance Officer’s decision;
40
(b)
make any other order it thinks fit.
      (9)
If the Tribunal dismisses the appeal it may make any other order
it thinks fit.

Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
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     (10)
The Compliance Officer must notify the IPSA of the Tribunal’s
decision (and the result of any further appeal).
Enforcement of repayment direction
5     (1)
This paragraph applies to any amount which a member is
required by a repayment direction to pay to the IPSA, but only
5
when—
(a)
it is no longer possible for there to be a relevant appeal, and
(b)
all relevant appeals have been withdrawn or determined.
      (2)
A relevant appeal is—
(a)
an appeal under paragraph 3 brought before the end of the
10
period mentioned in paragraph 3(2), or
(b)
a further appeal in relation to the repayment direction
which—
(i)
is brought before the end of the usual period for
bringing such an appeal, and
15
(ii)
is an appeal against the determination of an appeal
which was itself a relevant appeal.
      (3)
The IPSA may recover the amount by making deductions from—
(a)
any salary payable to the member under section 4;
(b)
any allowances payable to the member under the MPs’
20
allowances scheme.
      (4)
In England and Wales and Northern Ireland the amount is
recoverable, if a county court so orders on the application of the
Compliance Officer, as if it were payable under an order of that
court.
25
      (5)
In Scotland the amount is recoverable as if the repayment
direction were an extract registered decree arbitral bearing a
warrant for execution issued by the sheriff court of any sheriffdom
in Scotland.
Part 2
30
Penalties
Power to impose penalties
6     (1)
If sub-paragraph (3) or (4) applies to a member of the House of
Commons, the Compliance Officer may by notice (a “penalty
notice”) impose a penalty on the member.
35
      (2)
A “penalty” means a sum of money payable by the member to the
IPSA.
      (3)
This sub-paragraph applies if the Compliance Officer has made a
finding under section 9(5) that the member has without reasonable
excuse failed to comply with a requirement under section 9(3)
40
(provision of information to Compliance Officer).

Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
79

      (4)
This sub-paragraph applies if the Compliance Officer is satisfied
that the member has without reasonable excuse failed to comply
with any requirement contained in a repayment direction.
      (5)
The Compliance Officer must send a copy of the penalty notice to
the IPSA.
5
      (6)
References in this Part of this Schedule to a member of the House
of Commons include a former member of that House.
      (7)
In this Schedule “penalty notice” and “penalty” have the meanings
given by this paragraph.
Amount of penalty
10
7     (1)
The penalty notice must state the amount of the penalty.
      (2)
The amount of the penalty must not exceed £1,000.
      (3)
The amount in sub-paragraph (2) may be increased (or further
increased) by an order made by a Minister of the Crown.
      (4)
An order under sub-paragraph (3) is to be made by statutory
15
instrument.
      (5)
A statutory instrument containing an order under sub-paragraph
(3) may not be made unless a draft of the instrument has been laid
before and approved by a resolution of each House of Parliament.
Information to be contained in notice
20
8     (1)
The penalty notice must (as well as stating the amount of the
penalty) include information as to—
(a)
the reasons for imposing the penalty,
(b)
the period before the end of which the penalty is to be paid,
(c)
how the penalty may be paid,
25
(d)
the procedure and time limit for appealing,
(e)
the effect of paragraph 12, and
(f)
any other matter specified by the IPSA.
      (2)
Before specifying a matter the IPSA must consult the persons
listed in section 9A(6).
30
Guidance etc
9     (1)
The IPSA must prepare guidance about—
(a)
the circumstances in which the Compliance Officer should
impose a penalty under paragraph 6, and
(b)
how the Compliance Officer should determine the amount
35
of the penalty.
      (2)
Before preparing the guidance the IPSA must consult the persons
listed in section 9A(6).

Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
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Review of penalty
10    (1)
The Compliance Officer may at any time review a decision to
impose a penalty on a member under paragraph 6.
      (2)
Following the review the Compliance Officer may cancel the
penalty or reduce the amount of the penalty.
5
      (3)
If the Compliance Office does either of those things, the
Compliance Officer must notify the IPSA.
      (4)
If the penalty (or part of the penalty) has already been paid the
IPSA must repay the member accordingly.
Appeal against penalty
10
11    (1)
A member on whom a penalty has been imposed under paragraph
6 may appeal to the First-tier Tribunal.
      (2)
An appeal under this paragraph must be brought before the end
of the period of 28 days beginning with the day on which the
penalty notice is sent to the member (unless the Tribunal directs
15
that it may be brought after the end of that period).
      (3)
The appeal is by way of a rehearing.
      (4)
On an appeal under this paragraph the Tribunal may—
(a)
allow the appeal and cancel the penalty,
(b)
allow the appeal and reduce the penalty, or
20
(c)
dismiss the appeal.
      (5)
The Compliance Officer must notify the IPSA of the Tribunal’s
decision (and the result of any further appeal).
Enforcement of penalty
12    (1)
This paragraph applies to the amount of a penalty imposed on a
25
member under paragraph 6, but only when—
(a)
it is no longer possible for there to be a relevant appeal, and
(b)
all relevant appeals have been withdrawn or determined.
      (2)
A relevant appeal is—
(a)
an appeal under paragraph 11 brought before the end of
30
the period mentioned in paragraph 11(2), or
(b)
a further appeal in relation to the penalty notice which—
(i)
is brought before the end of the usual period for
bringing such an appeal, and
(ii)
is an appeal against the determination of an appeal
35
which was itself a relevant appeal.
      (3)
The IPSA may recover the amount by making deductions from—
(a)
any salary payable to the member under section 4;
(b)
any allowances payable to the member under the MPs’
allowances scheme.
40
      (4)
In England and Wales and Northern Ireland the amount is
recoverable, if a county court so orders on the application of the

Constitutional Reform and Governance Bill
Schedule 6 — Parliamentary standards: consequential amendments
Part 1 — Amendments of the Parliamentary Standards Act 2009
81

Compliance Officer, as if it were payable under an order of that
court.
      (5)
In Scotland the amount is recoverable as if the penalty notice were
an extract registered decree arbitral bearing a warrant for
execution issued by the sheriff court of any sheriffdom in
5
Scotland.
Payment of penalty into Consolidated Fund
13
The IPSA must pay into the Consolidated Fund—
(a)
the amount of any penalty paid to the IPSA, and
(b)
where the IPSA makes a deduction under paragraph 12(3),
10
an amount corresponding to the amount of the deduction.”
Schedule 6
Section 50

Parliamentary standards: consequential amendments
Part 1
Amendments of the Parliamentary Standards Act 2009
15
1
The Parliamentary Standards Act 2009 (c. 13) is amended as follows.
2
In section 2(2) (effect of Act on House of Lords)—
(a)
omit paragraph (a),
(b)
omit “and” at the end of paragraph (b),
(c)
in paragraph (c) for “paragraphs 4(2) and 8(1)” substitute “paragraph
20
8(2)”, and
(d)
after that paragraph insert “, and
(d)
paragraph 7(5) of Schedule 4.”
3
In section 5(8) (allowances) for the words from “and” to the end substitute
“and in relation to any such allowances, references in this Act to a member
25
of the House of Commons include a former member of that House.”
4     (1)
Section 12 (interpretation) is amended as follows.
      (2)
In subsection (1)—
(a)
for ““the Commissioner”” substitute ““the Compliance Officer””,
and
30
(b)
omit the definition of “the MPs’ code of conduct relating to financial
interests”.
      (3)
In subsection (2)—
(a)
after “committee” (in each place) insert “or officer”, and
(b)
in paragraph (a) for “its” substitute “the”.
35
5     (1)
Section 13 (transitional provision) is amended as follows.
      (2)
Omit subsection (2)(b) and (c).

Constitutional Reform and Governance Bill
Schedule 6 — Parliamentary standards: consequential amendments
Part 2 — Amendments of other Acts
82

      (3)
In subsection (4) and (6)(c) for “Commissioner” substitute “Compliance
Officer”.
6
In section 14 (commencement) omit subsection (2)(d).
7     (1)
Schedule 1 (the IPSA) is amended as follows.
      (2)
Omit paragraph 10 and the heading above it.
5
      (3)
In paragraph 18(1)—
(a)
for paragraph (a) substitute—
“(a)
section 4 (MPs’ salaries), so far as relating to the
payment (but not the determination) of salaries,”,
(b)
in paragraph (c), after “claims)” insert “(except as mentioned in sub-
10
paragraph (2) below)”, and
(c)
omit the words following paragraph (c).
      (4)
In paragraph 18(2)—
(a)
before paragraph (a) insert—
“(za)
sections 4 and 4A (MPs’ salaries) (except as
15
mentioned in sub-paragraph (1) above),”,
(b)
after paragraph (a) insert—
“(aa)
section 6(10) (determining procedures for
publication of allowances claims),”,
(c)
omit paragraph (b) (and the “and” following it), and
20
(d)
for paragraph (c) substitute—
“(c)
section 9(8)(b) and (9) (determining conditions),
(d)
section 9A (determining procedures for
investigations etc),
(e)
paragraphs 1, 2(2), 4(2) and 9(2) of Schedule 2
25
(appointment and removal of Compliance Officer
etc), and
(f)
paragraphs 2, 8 and 9 of Schedule 4 (scheme,
guidance etc for Compliance Officer).”
      (5)
In paragraph 22(8) for “Any repayments” substitute “Any payments
30
received by the IPSA as a result of a repayment direction under Schedule 4,
and any repayments otherwise”.
Part 2
Amendments of other Acts
European Parliament (Pay and Pensions) Act 1979 (c. 50)
35
8     (1)
In section 1(2) (salaries of MEPs) for paragraphs (a) and (b) substitute “the
same as that of the salary payable for that period, under section 4 of the
Parliamentary Standards Act 2009, to a Member who does not hold an office
or position specified in a resolution of the House of Commons for the
purposes of section 4A(2) of that Act (higher salaries for holders of specified
40
offices or positions).”
      (2)
Omit section 5 (salary to be used for calculating pension benefits).