Civil Aviation Bill

Lord Empey Excerpts

Wednesday 27th June 2012 Grand Committee

[Lord Clinton-Davis]

On the face of it, paragraph (b) is otiose. I have dealt with several cases in the sub-committee investigating legislation, of which I am a member. It is incumbent upon the Minister to say why this provision is included.

[Lord Empey]

Does the Minister feel that these two paragraphs could leave the CAA open to judicial review by disgruntled operators? They are adding something unclear with the definition of what is and is not needed. It may be intended to prevent overzealous application of restrictions on operators, but these days, one always has to look at the potential for judicial review, and I suspect that the way this is drafted might leave the CAA open. It might be possible to amend the first paragraph to meet the needs of the Government, but I hope the Minister will address the legal issue.

[Earl Attlee]

My Lords, I must admit that I am puzzled by these amendments. I take it that they are merely probing amendments, but they are certainly not mundane. They seek to weaken the principles that the CAA and the Secretary of State must have regard to when discharging their economic regulation functions. Specifically, they seek to remove the need to have regard to the principle that regulatory activities should be targeted only at cases in which action is needed. To this extent, the amendment may inadvertently facilitate or encourage excessive regulation, and I am sure that the Committee will agree that that is clearly not desirable. I ask noble Lords to oppose these amendments today because they would remove provisions in the Bill that strengthen the adherence of the CAA and the Secretary of State to good economic regulation practice.

This first amendment seeks to delete one of the principles that the CAA must have regard to in performing its duties under subsections (1) and (2) of Clause 1, which sets out the CAA’s general duty. That principle is that,

“regulatory activities should be targeted only at cases in which action is needed”.

The second amendment makes the same provision for the Secretary of State’s duties.

The principles set out in Clause 1(4) and Clause 2(5) are those that the Better Regulation Task Force defined in 1997 as in keeping with good regulation. They were that good regulation should be transparent, accountable, proportionate, consistent, and targeted.

These principles are not in the Bill by accident. They are a well recognised starting point and one looks to encourage those responsible for economic regulation to apply them appropriately. Having provisions in legislation that reflect these principles is sensible and makes clear what is expected of regulators. It is not only desirable but good practice to have these provisions to encourage the CAA to discharge its Clause 1 functions in a manner that discourages unnecessary regulation.

It is known that economic regulation is an imperfect intervention. It should be used only where an unregulated market fails to deliver competitive outcomes. However, used appropriately, it can be an effective tool. The provisions in Clauses 1(4) and 2(5) ensure that this is the case in the Civil Aviation Bill. Furthermore, as an experienced regulator, the CAA is not troubled by having regard to the principles set out in Clause 1(4)(b). Indeed, it considers it sound regulatory practice, as do the Government.