(1 year, 9 months ago)
Lords ChamberMy Lords, what the Minister said about common frameworks is very encouraging and I absolutely understand what she has been saying in her description of the system. But is the procedure in Clause 2 capable of, let us say, exempting a particular common framework from the sunset in Clause 1? Does it fall within the formula set out in Clause 2, so that we could take, for example, the common framework on animal health, labelling or the ozone layer, and specify a common framework to be excluded? It would be encouraging if that were the case.
We can, indeed, exclude a specific category of law from the REUL exclusions if it relates to a specific area such as animal health, or a particular category of common framework.
(2 years, 8 months ago)
Lords ChamberMy Lords, with the leave of the House, I beg to move that the House do agree with the Commons in their Amendments 1 to 3. In doing so, I will briefly summarise the changes which have been made to the Bill since it was last before your Lordships’ House.
As noble Lords will recall, there has been a great deal of interest in the issues of concurrent powers and devolved competence in relation to this Bill. Before the Bill left this place, my noble friend Lord Grimstone, to whom I am sure the whole House wishes a speedy recovery, committed to continue to engage with his counterparts in the devolved Administrations to persuade them of the merits of the Government’s approach and, in so doing, to try to secure support for legislative consent. Since then, my honourable friend in the other place, the Minister for Small Business, Consumers and Labour Markets, and my noble friend Lord Grimstone, have worked hard to honour that commitment. However, following extensive discussions at both ministerial and official level, it has proved impossible to secure that agreement. It is therefore with great regret that the UK Government will be legislating without the consent of the devolved legislatures.
The Government’s preferred approach throughout has always been to secure legislative consent Motions. Although the UK Government are disappointed with this outcome, we are satisfied that all avenues to secure legislative consent have been exhausted. The UK Government have been consistently clear that a consent mechanism, as requested by the devolved Administrations, is not appropriate for this Bill, but the amendments tabled unconditionally in the other place look to provide reassurances and address DA concerns.
The UK Government cannot agree to the insertion of a duty to obtain consent, as this could give rise to a risk that the UK Government would not be able to implement provisions in international agreements on recognition of professional qualifications promptly and consistently. This could jeopardise the UK Government’s credibility in securing ambitious provisions to support UK services’ exports with global trade partners.
In October of last year, my noble friend Lord Grimstone made the offer to all three DAs of a legislative commitment to consult with the devolved Administrations before the UK Government make regulations under certain powers in this Bill. That offer was made in exchange for legislative consent but was rejected. Following further discussions, the Government offered two further concessions, in December 2021.
First, we offered an enhanced statutory consultation duty for all the devolved Administrations. This duty includes a requirement to publish a report in advance of any regulations being made by the UK Government which would be within devolved legislative competence. The report should set out the consultation process and whether and how the representations made by the devolved Administrations during the consultation have been taken into account.
Secondly, we offered an amendment to carve out the Bill from the requirements of Schedule 7B of the Government of Wales Act 2006. This amendment would allow for an Act of the Senedd to remove the ability of UK Ministers to make regulations under the Bill in an area of Welsh legislative competence, without the need to first obtain the consent of a Minister of the Crown. The Welsh Government would still be required to consult the UK Government on any removal of powers. This is in line with similar approaches taken by the Government in relation to the Environment Act 2021, the Fisheries Act 2020 and the Agriculture Act 2020. These concessions were also offered to the devolved Administrations in exchange for support for legislative consent Motions from their respective legislatures. However, that offer was also rejected.
Subsequently, my noble friend Lord Grimstone wrote to the devolved Administrations confirming the Government’s intention to table both the concessions unconditionally, despite not securing legislative consent. Although the UK Government have not been able to reach agreement with the devolved Administrations, it is our strong view that this Bill will operate best and in the interests of all the nations of the UK if we work together as collaboratively and transparently as possible. These amendments demonstrate that the UK Government have kept their promise and negotiated in good faith. Moreover, we have always been clear that any regulations the UK Government made in devolved legislative competence would be limited in scope and exceptional and would always be made in consultation with the appropriate devolved Administrations, and I am happy to reiterate that now. I therefore hope your Lordships will agree to both these amendments. I reassure your Lordships that the Government look forward to continuing to work closely with the devolved Administrations across the full range of regulated professions policy and implementation.
Amendment 3 is wholly procedural and removes the privilege amendment made in your Lordships’ House, as is the procedure in these cases. I therefore hope that your Lordships will also agree to this amendment. I beg to move.
My Lords, I join the noble Baroness in expressing good wishes to the noble Lord, Lord Grimstone. I wish him a speedy recovery. It is a matter of great regret that an agreement has not been possible with the devolved Administrations. I know from having listened to the noble Lord, Lord Grimstone, previously how much effort he and his team have put into trying to obtain consent through frequent meetings in Scotland and many discussions. Of course, it turns on the essential difference between consultation and consent, as the noble Baroness explained. It is a shame, because there are aspects of this Bill which affect professional bodies in Scotland, which need to be properly regarded and protected against misadventures as a result of this legislation. I do not think that the devolved Administrations have been acting out of malice or anything like that; it is a matter of principle. That having been said, I would be grateful if the Minister would repeat the point she made that there will be continuing effort as this Bill is being put into effect and regulations are being drafted and so on to maintain contact with the devolved Administrations with all the good will possible, to try to make this legislation work as well as possible in the best interests of all the professional bodies concerned.
(2 years, 9 months ago)
Grand CommitteeMy Lords, I want to add to that list of questions. Does the Minister have any information on where the CMA is to be based? It is one thing if it is in London, and quite different if it is in Cardiff, Glasgow, Birmingham or Manchester, for example. One of the concerns is the constant pressure that the devolved Administrations have against the south-east and London-based administrations. If there were some way in which the CMA could locate itself further away from the south-east and closer to other areas, that would at least be to some advantage.
My Lords, Clause 68 requires that the CMA establishes a new committee of its board called the subsidy advice unit for the purposes of undertaking the subsidy control functions set out elsewhere in the Bill. I recognise that nothing I can say at the Dispatch Box will completely allay the fears of the DAs that this is a power grab or that we have malevolent intent in all this. All I can say is that the Government are very well aware of these issues. We talk about them constantly and will endeavour to continue the dialogue as we go forward on many fronts.
To return to these amendments, the subsidy advice unit will be a specific committee within the CMA dealing with subsidy control. It will comprise exclusively staff and members of the CMA. In this instance, “members” of the CMA refers to, among others, the chair and individuals who sit on the CMA board, the CMA panel of competition experts and the office for the internal market panel and its chair; “staff” refers to the civil servants employed by the CMA.
Amendment 64 seeks to allow the CMA chair to appoint to the subsidy advice unit non-executive members
“with relevant experience in relation to each of Wales, Scotland and Northern Ireland.”
The CMA was chosen as the home of the subsidy advice unit because of its experience and credibility in acting as a regulator and adviser in matters of competition and consumer law on a UK-wide basis. In carrying out its new functions under the SAU, the CMA will continue to act as it always has successfully, with the whole of the UK in mind.
It is notable that the amendment does not make any mention of “relevant experience” in relation to England, perhaps implying that the CMA already has an excess of England expertise but a deficit in relation to the other parts of the UK. I cannot possibly agree with the noble Lord on that point, if indeed that was the implication.
The amendment is unnecessary because the CMA can and does already recruit to the unit personnel with “relevant experience” in relation to all its functions, various different markets and all parts of the UK. The CMA has an excellent track record of recruitment and retention of staff and members from across the UK, and currently employs staff in Belfast, Cardiff, Edinburgh and London. The CMA has already undertaken external recruitment to a number of posts in the SAU. These were advertised on a location-neutral basis and were open to applicants willing to be based in any of the CMA’s existing offices. It is unnecessary to impose excessive and unhelpful complexity on the CMA’s recruitment process when it has already proved quite capable of finding persons with the “relevant experience” to carry out its functions.
I turn to Amendment 65. Part 4 of the Subsidy Control Bill represents an important pillar of the new domestic regime. The additional flexibility that public authorities will enjoy to design bespoke subsidies and schemes and quickly bring them to fruition to address identified policy problems must be balanced by a proportionate mechanism to provide an appropriate degree of scrutiny. This scrutiny will be crucial for the most potentially distortive subsidies and schemes, which is why the SAU has been given a role in advising public authorities before they award the most potentially distortive subsides or schemes. In response to the noble Lord, Lord Bruce, I say that neither the SAU nor the Secretary of State will be able to block a subsidy being awarded.
The CMA will also have the role of monitoring the efficacy of the entire regime through a periodic review and report to Parliament. This will ensure appropriate oversight and scrutiny of the regime by Parliament to confirm that it remains relevant to the needs of the whole of the UK.
Amendment 65 requires that the Secretary of State must undertake an assessment of the CMA’s capacity to fulfil its new functions under Part 4 of the Bill and make a Statement to both Houses on their findings. If the Secretary of State finds that the CMA is not sufficiently resourced, their report to Parliament must also outline the steps the Government intend to take to address this. I appreciate the noble Lord’s intention and that this is a probing amendment to ensure that the CMA is properly prepared to carry out its new statutory functions. I therefore offer the following statement on preparations for the new subsidy advice unit.
The CMA was allocated funding of some £20.3 million at the spending review in 2020 to establish three new functions within the CMA: the subsidy control function, the office for the internal market and the digital markets unit. Following the 2021 spending review, this budget of around £20.3 million will be maintained for the next three years. The CMA will continue to allocate funding in the 2022-23 financial year to reflect the estimate of resources needed to establish the new subsidy advice unit. This estimate reflects both the functions set out in the Bill on introduction, and the estimated number of subsidies and schemes of interest and particular interest that would be referred to the SAU.
The estimated case load of around 20 cases of both categories per year was arrived at using the methodologies set out in the Bill’s impact assessment. There is unavoidable uncertainty in this estimation, since the SAU’s referral functions are new and unprecedented. However, Her Majesty’s Government remain confident that this represents a reasonable estimate based on the best available evidence.
In terms of recruitment, to establish the SAU, the CMA has estimated that approximately 50 new posts will need to be created across all its professions. The CMA has recently undertaken external recruitment to fill several policy and project management posts in the subsidy advice unit, as well as allocating resource internally. The CMA will continue to recruit to its pools of economist, legal and business adviser resource over the coming months. The CMA is looking to recruit staff with a range of skills and experience, which includes building on its core competition expertise, as well ensuring the necessary skills in areas such as stakeholder engagement.
(4 years, 4 months ago)
Lords ChamberMy Lords, I support Amendment 264, moved by the noble Lord, Lord Foulkes of Cumnock. By a curious chance, I spoke to Amendment 267, a mirror image of this one, shortly before midnight on Tuesday evening. I do not need to repeat what I said then, because I am sure that the Minister knows very well the points that I wanted to make. The amendment moved this evening is almost exactly the same, except that in my case, instead of using the phrase, “the relevant stakeholders”, I set out who the relevant stakeholders were. For the reasons I mentioned at about this time two days ago, I absolutely support the amendment moved by the noble Lord, Lord Foulkes.
My Lords, I beg to move that the debate on this amendment be adjourned.