Public Bodies Bill [HL]

Baroness Wilcox Excerpts

Tuesday 21st December 2010 Lords Chamber

[Lord Young of Norwood Green]

My Lords, noble Lords will be relieved to hear that I do not propose detaining us for long, because my noble friend Lord Borrie has put the kernel of the case. I just want to make a couple of points. We are told that a working group is currently examining the case for abolishing this body. Early in 2011, it will report to the Secretary of State for Justice and the Secretary of State for Business with its recommendations. No final decisions will be taken before then. Apparently, the working group consists of BIS, TS, HMT and Competition Service officials. It is examining all the relevant aspects of a possible transfer and abolition, including financial, legal, judicial and policy. It aims to produce a report for Ministers that sets out the pros and cons of such an abolition and transfer. If that consultation is taking place, it seems to us rather strange that this should appear in Schedule 1. Would it not be preferable if we awaited the outcome of the consultation process? All the other points in relation to this have been made. Given the time, I await eagerly the Minister’s response.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, I thank the noble Lord, Lord Borrie, for his amendment because it means that we have to look carefully at what we have said and what we are doing. With his background in the Office of Fair Trading and my experience of working with him over the years, I know how valuable his opinion is in these matters. He has rightly said that the Competition Appeal Tribunal was created by the Enterprise Act 2002. It hears appeals on competition and regulated industry cases and is independent from other competition bodies, such as the OFT and the Competition Commission, because it hears appeals against their decisions. Rightly, he explained how special it is.

The Competition Service was created by the Enterprise Act to provide administrative and other support to the Competition Appeal Tribunal. It has no function other than being a service for the Competition Appeal Tribunal. The Government believe that the way in which this function is being provided is not making the most effective use of resources and that there may be cost savings and increased efficiencies if the functions of the Competition Service were transferred to the Tribunals Service, to which the noble Lord referred.

The consequence of this would be transferring the Competition Appeal Tribunal, which would then receive its support from the Tribunals Service. The Competition Service would then be abolished. However, no final decision has been taken. As the noble Lord, Lord Young, said, a working group has been set up to test the case for making this proposed abolition and transfer. It is a decision that we will not take lightly. The working group will report to Ministers in BIS and the Minister of Justice in early 2011. They will then decide whether to proceed with the abolition and the transfer. In carrying out this review, the Government are clear that there should be no adverse impact on the operation of the Competition Appeal Tribunal, which would operate as an independent tribunal under the aegis of the Tribunals Service. I hope that the noble Lord, Lord Borrie, finds that reassuring.