Public Bodies Bill [HL]

Lord Henley Excerpts

Monday 4th April 2011 Lords Chamber

Moved by

[Lord Henley]

63: Clause 9, page 5, line 5, leave out from “in” to “an” in line 6

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Henley)]

My Lords, in moving the amendment in the name of my noble friend Lord Taylor, I shall speak also to Amendments 64, 73 to 82, 84 to 87, 88, 89B, 90, 92, 93, 95 and 99. I understand that within this group we will also debate Amendments 83 and 87A in the name of the noble Lord, Lord Rowlands.

The Bill contains a number of clauses that confer powers on Welsh Ministers. These clauses have been requested by the Welsh Assembly Government to enable them to give effect to possible institutional changes flowing from their ongoing review of how environmental policies are delivered in Wales. This review is linked to wider policy proposals to develop a more integrated ecosystems approach to managing the natural environment in Wales.

These proposals were set out in A Living Wales, the Welsh Assembly’s natural environment framework, which was subject to recent public consultation. The consultation specifically raised the issues of reviewing institutional arrangements. The Assembly Government rightly want to ensure that they have the most effective and efficient institutional arrangements in place to deliver the proposed new policy approach. More than half the responses to the consultation addressed the question of institutional arrangements and the majority of those responses were supportive of a much more integrated delivery approach, including the possible establishment of a new environmental delivery body.

The Assembly Government have looked at a range of options as part of the initial stages of the review and have now asked for more detailed work to be undertaken on the purpose and function of establishing a single environmental body for Wales and assessing the benefits and costs of establishing such a body. Any final decision to implement changes to the way in which environmental policy is delivered in Wales will be a matter for the incoming Assembly Government, following the National Assembly elections in May. However, I assure the House that it is the Welsh Assembly Government’s intention to hold a full public consultation on any proposals to revise delivery arrangements. Amendment 88 places a duty on Welsh Ministers to consult on orders under Clauses 12 to 14.

I turn to the detail of the amendments. A number of them serve more accurately to reflect the boundary between devolved and non-devolved matters. Amendments 87 and others widen the circumstances in which the consent of the Secretary of State or another UK Minister will be required. They also constrain Welsh Ministers’ powers in Clause 12 to modify or transfer functions of environmental bodies in relation to Welsh devolved functions. Amendment 82 seeks to amend Clause 13 and further to safeguard the interests of the United Kingdom Government by ensuring that Welsh Ministers cannot modify the constitutional funding arrangements of any cross-border operator, not merely the Environment Agency and the forestry commissioners.

Amendments 73, 77 and 79 serve to extend Welsh Ministers’ order-making powers in Clauses 12 and 13 to regional flood and coastal committees whose areas are wholly or mainly in Wales. This would allow the Assembly Government to modify or transfer the functions of these committees in light of the conclusions of the Assembly Government’s review of environmental bodies.

Amendment 80 aims to give Welsh Ministers order-making powers in relation to a short list of bodies that are wholly or mainly in Wales—namely, agricultural dwelling house advisory committees, agricultural wages committees, the Environment Protection Advisory Committee, regional and local fisheries advisory committees and forestry regional advisory committees. The amendment also provides Welsh Ministers with powers to modify the funding arrangements of drinking water inspectors and powers to modify or transfer the functions of internal drainage boards that are wholly or mainly in Wales, as well as powers to modify their constitutional arrangements. This is necessary in respect of the Welsh devolution settlement, because the bodies listed exercise devolved functions and are constituted in Wales or relate to areas within Wales. These powers are equivalent to those of United Kingdom Ministers under Clauses 1 to 6.

The intention is that those Welsh bodies will be abolished at either the same time as their English counterparts or in accordance with any programme initiated by Welsh Ministers as a result of the review that I mentioned of the principal environmental delivery bodies in Wales—the Environment Agency, the Countryside Council for Wales and the forestry commissioners. The purpose of the power to modify the funding arrangements of the Drinking Water Inspectorate is to enable inspectors to establish a charging scheme to recover the costs of its regulatory functions from water companies, while the powers relating to internal drainage boards are linked to the outcome of the review of environmental delivery bodies. It may, for instance, be the case that, if a new environmental body were established, the functions of the boards might be transferred to that body.

Amendments 63 and 64 are necessary to reflect the outcomes of the referendum on Assembly powers. They ensure that United Kingdom Ministers have a duty to seek the consent of the National Assembly for Wales when they wish to make orders under Clauses 1 to 6 of the Bill that may encroach on the Assembly’s legislative competence. Amendments 88 and 89A build in the same safeguards to the exercise of the powers of the Welsh Ministers as apply to the corresponding powers of Ministers of the Crown—that is, the duty to have regard to certain objectives and to consult on the exercise of order-making powers. Finally, Amendment 89 establishes a procedure for the National Assembly for Wales to consider orders of the Welsh Ministers that mirrors the equivalent parliamentary procedure for orders made by United Kingdom Ministers.

These new clauses and amendments have been developed in close consultation with the Welsh Assembly Government. Furthermore, the National Assembly considered and agreed a legislative consent motion for the Bill on 8 March, noting that it is content for Parliament to legislate in areas of its devolved legislative competence. I beg to move.

--- Later in debate ---

[Lord Henley]

My Lords, I start by making an apology to the House and correct something that I said in my opening remarks. I misspoke when I referred to Amendment 89A; I meant Amendment 86A. When I referred to Amendment 89 I meant Amendment 89B. I say this just for the sake of the record. Because so many amendments have been withdrawn and then redrafted, it is rather easy to make mistakes of this sort. I hope that the House will accept that apology and that minor correction.

I am relatively new to Welsh matters, but as always it has been a joy to be taking part in this debate. I hope that I can satisfy the various concerns that have been put forward by noble Lords. I will start with the noble Lord, Lord Rowlands. I accept that he is not averse to transferring greater powers to the Welsh Assembly Government, but does not like Clause 13. He feels that it goes too far and gives too much to the Welsh Assembly Government rather than to the Assembly. He also talked about a blurring of the lines but accepted that some of our amendments improved on that. I assure him that there has been considerable consultation between us and Welsh Assembly Government Ministers. Like the noble Baroness, Lady Gale, I pay tribute to Jane Davidson, who is retiring. I met her only recently on cross-border issues, and I wish her well in her new role.

There has been a great deal of consultation on these matters, importantly not just between us and the Welsh Assembly Government, but also the National Assembly itself. As the noble Lord, Lord Rowlands, will be aware, that National Assembly passed a Legislative Consent Motion for the Public Bodies Bill on 8 March, to which I referred. Such a Motion is required because some of the provisions of the Bill come within the legislative competence of the National Assembly rather than of Welsh Assembly Government Ministers. In passing the Motion, the National Assembly has indicated it is content for Welsh Ministers to have executive powers on the lines proposed in the Bill.

I do not quite understand the noble Lord, Lord Rowlands, objecting to the Welsh Assembly Government gaining too much power, but he also appears to object to certain constraints placed upon them by this Bill. These matters have been discussed and we believe, as does the National Assembly, that there is a degree of agreement.

The second amendment of the noble Lord, Amendment 87A, requires the approval of both Houses of Parliament following the consent of United Kingdom Ministers under the new clause that will come in under new Clause 14. This is unnecessary because of the procedures already outlined by my noble friend. I hope, therefore, that he would feel able to withdraw or not move that amendment.

I turn to the various concerns raised by the noble Lord, Lord Wigley, who raised three points. The first was the question on devolved matters and whether that would be a matter for Welsh Assembly Government Ministers; I can assure him that he is correct. Secondly, on cross-border issues, he asks whether there will be consultation between us and the Welsh Assembly Government Ministers, or the other way around. I can assure him there will be consultation going both ways according to how the cross-border issue happens to run. Thirdly, I can give no concrete guarantee about when consultation will happen on any given issue but we would always hope to get it started as early as possible. If consultation between the two sets of Ministers is going to be effective, it is important that it takes place as early as possible. All I can say is that we very much hope that this will happen and, having said so from the Dispatch Box, that we or our successors of whatever political persuasion or Government will bear this in mind.

From what has been said by the noble Baroness, Lady Gale, I have the impression that these amendments meet a great many of the concerns that have been put forward. I therefore hope that noble Lords will accept these amendments, which set out in greater detail the powers and duties of the Welsh Assembly Government Ministers in dealing with these matters.

[Lord Rowlands]

I listened to the Minister’s reply with great interest and I would like to put two points to him. First, on consent, Clause 9 provides that when UK Ministers want to make orders which could encroach on the Assembly’s legislative competence, they must seek the consent of the National Assembly for Wales, not just Welsh Ministers. If an Assembly Government issue orders which change or alter the law relating to those bodies and affect the cross border, is it not reasonable that not only should the Secretary of State’s consent be sought but also the consent of both Houses? If Clause 9 requires the approval of the Assembly, rather than the Ministers in the Assembly, would it not be a sensible procedure to require the reverse procedure? If, where the Assembly is making orders which could have considerable cross-border effects on the operation of that organisation and which therefore quite rightly require the consent of the Secretary of State, surely it should also require the consent of both Houses in just the same way.

My noble friend Lord Wigley asked about it. As he will see under Clause 9, there is a two-way process. UK Ministers have to seek the consent of the Assembly if they wish to bring in orders which could affect the performance of bodies in Wales. I would still like to press him on my Amendment 87A. I accept the changes that have now been made in relation to the other issues that I raised. He said that he could not quite understand why I seemed to object to the super-affirmative resolution. My objection is one of the principle of legislating in detail on the way in which Welsh Ministers should consult, when that should be determined by the Assembly. He says that that is covered by the 8 March decision. Before we conclude, perhaps he could tell us whether that decision included the reference to super-affirmative resolutions, because this clause has been introduced very late. Was it put before the Assembly? Was it part of the approval of the legislative consent process on 8 March? Before I decide what I will do about my Amendment 87A, will he respond to those points?

[Lord Henley]

My Lords, we are at a relatively late stage of this Bill. I appreciate that there is one further stage, Third Reading, and that there are limitations on what we can and cannot do. It probably would be right if I took away the points that the noble Lord has made on Amendment 87A and his secondary point. I am not sure whether I will be able to satisfy him but I am more than happy to consider these matters in consultation with colleagues in other departments. On his second point about the 8 March decision, I can certainly give an assurance that specific reference was made as part of the memorandum and that it did come up in the debate. On that, I think that he can be satisfied.

On his point in relation to Amendment 87A, it might be worth the noble Lord, colleagues in the Welsh Office and me having further discussions. I do not think that what he is looking for in Amendment 87A is necessary, so I make no promises. In the light of his generally very reasonable behaviour on these matters, I will give him those assurances for the moment. Therefore, I hope that he will accept that we can press forward with the amendments as they are.

Amendment 63 agreed.

Moved by

[Lord Henley]

64: Clause 9, page 5, line 14, leave out subsection (8)