Professional Qualifications Bill [HL]

Lord Grimstone of Boscobel Excerpts

Report stage
Tuesday 9th November 2021 Lords Chamber

I believe the Minister’s intention on this, and I am very pleased. We also had a welcome meeting a few weeks ago. He has understood the mood of the House and the concerns raised by noble Lords across all sides of the House, and has come back with an amendment that I think we can all get behind. My noble friend Lady Hayter will not test the opinion of the House on Amendment 15.

[The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con)]

My Lords, I will speak first to the amendment in my name on regulator autonomy and then respond to my noble friend Lord Lansley’s amendment and that of the noble Baroness, Lady Hayter of Kentish Town.

As your Lordships know, I am a great advocate of the autonomy of our regulators. I have no doubt that regulators are best placed to determine who is fit to practise in their professions. The consequence is that to interfere with this could undermine public confidence in those who provide important services.

The Bill absolutely will not undercut regulators’ ability to make determinations about individuals with qualifications, experience or skills from overseas. I have previously given this assurance to your Lordships. However, picking up the point from the noble Lord, Lord Kennedy, I began to realise that the mood of the House was not to rely on assurances in this area. No matter how eloquently I argued the case for assurances, it would not cut the mustard. I absolutely recognise the continued strength of feeling on this issue. That is why I am proposing to make the protection of regulator autonomy clear in the Bill, and to do so specifically for Clauses 1, 3 and 4.

Protecting the autonomy of regulators is particularly relevant to these clauses, because this is where regulations made under the Bill will most directly intersect with regulators’ existing powers. This could be through empowering regulators to assess individuals with overseas qualifications, enabling them to enter into recognition agreements or placing substantive obligations on them.

These clauses also attracted particular interest from the DPRRC, and your Lordships rightly asked for more assurances. The amendment in my name places two conditions on regulations made under Clauses 1, 3 and 4. The first condition is that the regulations cannot remove regulators’ ability to prevent unfit individuals practising a profession. The second is that the regulations cannot have a material adverse effect on the knowledge, skills or experience of individuals practising a regulated profession. To put it simply, regulations cannot lower the required standards for an individual to practise a profession in the UK or, importantly, part of the UK. Taken together, these two conditions will make sure, enshrined in statute, that regulators will retain the final say over who practises in their profession and that the standards of individuals practising professions are maintained.

I also reassure your Lordships that this does not ask regulators to change expectations where they differ between different parts of the UK with good reason. In the case of devolved regulators, such as the General Teaching Council for Scotland, this would mean the requirements of a regulator for part of the UK.

As I said, in framing this amendment I have drawn inspiration from contributions made in this House and from discussions with regulators. Indeed, I am particularly pleased that it has been recognised by the noble Lord, Lord Fox, who has chosen to put his name to this amendment. I hope that this will be the first of many amendments that I bring forward at the Dispatch Box that the noble Lord, Lord Fox, will feels able to do that to going forward.

I turn now to Amendment 11. Of course, I recognise that my noble friend wants safeguards around how powers that could modify primary legislation are used. That is entirely reasonable. But I hope that my explanation of the regulator autonomy amendment in my name provides reassurance that the Government have listened to both noble Lords’ and the DPRRC’s concerns that regulations made under the Bill will be an appropriate use of the powers in Clauses 1, 3 and 4.

In particular, I know that some noble Lords have questioned how regulator autonomy will be safeguarded in trade deals. First, I repeat what I have said previously: in all negotiations, a key concern for the Government is ensuring the autonomy of UK regulators and protecting UK standards. Now, of course, the regulator autonomy amendment in my name ensures, in statute, that this concern is reflected in any regulations made under Clause 3.

I come to the point that my noble friend Lord Lansley made in asking for an assurance that primary legislation will be used to implement any consequences of free trade agreements that affect professional qualifications. I am not able to give that assurance because, by this Bill making it statutory that we cannot undercut the autonomy of UK regulators and diminish UK standards, it is appropriate that secondary legislation will be used to implement those aspects of future trade deals.

This new clause that I am putting forward means that Clause 3 cannot be used, for example, to require the automatic recognition of overseas qualifications—it would not be possible to do that. Before regulations are made, the Government will engage extensively with regulators on trade negotiations. Earlier today, I spoke about how I have formalised that in the new regulated professions advisory forum, which provides regulators with a mechanism to inform UK objectives for trade negotiations and the implementation of commitments that we make in them. If I have learned anything from the Bill, it is that regulators will not shy away from telling the Government when they have concerns about their autonomy.

Should any of your Lordships remain in doubt about whether powers in the Bill should be used to modify primary legislation, I remind the House that the relevant sector-specific legislation can be primary or subordinate legislation. Why we have these differences is lost in the mystery of time, but there is no consistency at all between professions in this matter. For example, the qualification and experience requirements to be a doctor or vet are set out in primary legislation. By contrast, the requirements for pharmacists or social workers are set out in subordinate legislation. That is why regulations made under the Bill may need to amend both primary and subordinate legislation in order to work for all regulated professions.

To give a further example, Clause 4 ensures that regulators can be authorised to enter into regulator recognition agreements with overseas counterparts. Many regulators already have this power; however, not all do. The Architects Registration Board and the General Dental Council are examples of regulators which do not have this power and may therefore benefit from Clause 4. But their powers are set out in primary legislation, so my noble friend’s amendment would prevent them being authorised to enter these agreements under Clause 4 if necessary. To give a further assurance, of course the Government envisage that regulations made under Clause 4 would be made at the request of the regulator. It would seem unfair to prevent them entering into recognition agreements simply because their powers are set out in one type of legislation rather than another. There frankly is no rationale or sensible reason for this difference. I hope that I have provided the House with the necessary reassurance that we have taken seriously the concerns about the use of delegated powers. For this reason, I ask for the amendment to be withdrawn.

I thank the noble Lord, Lord Kennedy, for speaking to Amendment 15, and the noble Baroness, Lady Hayter, for her contribution. My amendment addresses the same core concerns as Amendment 15. Both amendments —I understand that the noble Baroness’s amendment was very well intentioned—ensure that the Bill does not require regulators to allow those whom they determine to be unfit to practise and that the Bill cannot lower professional standards. Amendment 15, however, would further specify the protection of regulators’ autonomy regarding flexibility in assessment practice. The ability of regulators to make assessments as is most appropriate is already accommodated in the amendment in my name to Clause 1.

Finally, Amendment 15 also seeks to prevent anything in the Bill affecting a regulator’s ability to determine to make a regulator recognition agreement. This point is unnecessary. FTAs—such as the UK’s current deal with Canada—often contain frameworks for agreeing regulator recognition agreements. However, there is no obligation on regulators to enter into these agreements in any deal the UK has entered into. I am concerned that specifying this in legislation could unhelpfully suggest that the Government are unsupportive of such agreements. The Government are keen to support regulators agreeing them, where they wish to do so. In view of my own amendment, I formally ask the noble Baroness not to press her own.

[Lord Lansley (Con)]

My Lords, I thought that my noble friend gave an extremely helpful response to the debate and explanation of the relationship between the Government’s new clause in government Amendment 12 and Clauses 1, 3 and 4. Regulators in particular looking at this debate will, I hope, look at subsections (2) and (3) of the Government’s proposed new clause and share their view with us. If that holds, it provides a central piece of protection for regulators in future, in relation to all the substantive powers made available through the Bill. I am grateful for what the Minister has brought forward, and what he has said this evening. I beg leave to withdraw Amendment 11.

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Moved by

[Lord Grimstone of Boscobel]

12: After Clause 13, insert the following new Clause—
“Regulations: protection of regulator autonomy
(1) The appropriate national authority may make regulations under section 1, 3 or 4 only if satisfied that the conditions in subsections (2) and (3) are met. (2) The condition in this subsection is that the regulations do not remove the ability of any regulator of a regulated profession to prevent individuals who are unfit to practise the profession from doing so.(3) The condition in this subsection is that the regulations will not have a material adverse effect on any regulated profession in terms of the knowledge, skills or experience of the individuals practising it.(4) The reference in subsection (2) to individuals who are unfit to practise the profession is a reference to individuals who are unfit to practise the profession by reason of their character, a lack of knowledge, skills or experience or otherwise.(5) A reference in this section to practising a profession includes a reference to undertaking activities that comprise the practise of the profession or using a title associated with the practise of the profession.”Member’s explanatory statement
This amendment prevents the appropriate national authority making regulations under section 1, 3 or 4 unless satisfied that the conditions in subsections (2) and (3) of the new Clause are met.

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[Lord Fox (LD)]

My Lords, I think no one has had a bigger headache on this list than the Minister himself and the department, but it was a headache, frankly, of their own making.

I am with the noble Baroness, Lady Hayter, on this: I think it should be a separate schedule. We proposed a mechanism in Amendment 19 by which this schedule might be created and maintained. The noble Baroness, Lady Blake, talked about keeping it updated: if it had not been for the scrutiny of your Lordships and the constant harrying of the Ministers, this list would not have been nearly right now. I suspect there are still amendments to go into it. For that reason, we think Parliament should hold on to a regulatory process and, through a statutory instrument, that schedule can be updated.

What we have sought to do in Amendment 19 is not to second-guess where the list is now—because, as the noble Baroness, Lady Hayter, pointed out, that is like catching a knife—but to give the Government a process by which a definitive list may be created, put in a schedule and updated easily and, I would say, flexibly through a statutory instrument. Why? Because this is not just a list of organisations on a website: there are rights and responsibilities that come with being on this list and, indeed, not being on this list. Which professions are going to be scrutinised to see whether demand is met or unmet? This is a really important issue that Parliament should continue to maintain scrutiny over.

The noble Baroness, Lady Hayter, talked about the responsibilities of those organisations, but also the rights—which ones have the autonomy that the Minister’s amendment has granted and which are not part of this list? Furthermore, when the conversations are being had with the devolved authorities, a list gives weight to those discussions and gives a very clear indication of which professions are in and which are not. So, one way or another, putting it in the schedule is really important, as is a way in which that can be flexibly maintained, whereby Parliament maintains its ability to scrutinise that process; because without that scrutiny, where would we be now?

[Lord Grimstone of Boscobel (Con)]

My Lords, I thank the noble Baronesses, Lady Blake of Leeds and Lady Hayter of Kentish Town, and the noble Lords, Lord Purvis and Lord Fox, for their amendments. These amendments return to the debate about the regulators and professions to which the Bill applies, a topic which has covered me in embarrassment at various stages during the Bill’s passage. I admit that it was not our finest hour. Noble Lords rightly asked that the Government fully and precisely articulate who meets the definitions in the Bill.

The Government too, of course, and the regulators want to be clear about who the Bill applies to. It was for this reason that I asked my officials to carry out a comprehensive exercise to determine all those regulators and professions that meet the definitions in the Bill. My officials worked closely throughout the summer with other government departments, devolved Administrations and regulators. I am grateful to all those who contributed. Every regulator that meets the definitions in the Bill has been directly contacted by my officials, and is aware that the Bill applies to them. My officials have also contacted those regulators that we no longer consider the Bill applies to. I have written to my counterparts in the devolved Administrations to confirm the professions and regulators that operate in those parts of the UK. I am pleased to report that they have fully co-operated in this exercise. This extensive engagement culminated in the drawing up of a list of regulators and professions affected by the Bill, which we published on GOV.UK on 14 October. This exercise has provided the additional clarity rightly demanded by this House. The Government remain absolutely committed to regularly updating a list of professions and regulators to which they consider the Bill applies, and to keeping that list in the public domain.

I have also asked my officials to ensure that the assistance centre will also publish the list and will signpost professionals to all the professions and regulators identified on it. This will be part of our future service requirements and our contractual requirements for the assistance centre. Building on our work with regulators to prepare the list, my officials will continue engaging with this network of regulators through a variety of avenues to ensure they are kept updated on our work in this area. In answer to the noble Baroness, Lady Hayter of Kentish Town, I say that it would not be sensible to use the new forum that we are setting up as a means for doing this. The forum would be so large that we would probably have to go to Rome to use the forum there for its meetings, and it would frankly be unwieldly to have a forum of that size. That forum is going to have a cross-section of all the regulators on it. We will refresh that cross-section from time to time to make sure that all regulators from all parts of the UK have a chance to put their views. Of course, we will have other networks where we will engage through a variety of avenues to ensure that regulators are kept updated on our work in this area.

Perhaps picking up a point made by the noble Lord, Lord Fox, I say that the regulators will of course want to know that they are on this list, because a regulator who is covered by the definition gets the benefit of regulatory autonomy. There is therefore a positive reason for a regulator wanting to be included.

[Lord Fox (LD)]

On that note, in the event that I happened to be the chief executive of a regulator that was not on that list, it would help to know what the process was by which one sought to join the list or, indeed, to be taken off it. If we are not going to have a schedule as we discussed, the process by which a regulator puts itself in the frame or seeks to put itself in the frame would be really important, as well as publishing the list. Discussing that process would be useful.

[Lord Grimstone of Boscobel (Con)]

Of course, the interesting thing is that this process derives entirely from the legal definition of a regulator that is governed in law. It is not a matter of grace and favour to say whether a regulator is included or not; it is a matter of fact as to whether the regulator statutes make it a regulator engaged in law.

[Lord Fox (LD)]

It is more about having to draw attention to the fact that they believe that they are within the law. I cannot imagine that the department will have enough resources to continually trawl the horizon and find them, so individual organisations may find themselves asking how they go about getting on the list.

[Lord Grimstone of Boscobel (Con)]

I think the simple answer is that they should write either to the Minister responsible, whoever that is—if it is me, of course, I will attend to that—or to the senior officials within the department or within the devolved Administrations. This will obviously be something that officials will monitor and keep up to date.