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Legislative and Regulatory Reform Bill

moved Amendment No. 18: Before Clause 4, insert the following new clause- ““INDEPENDENCE OF THE ECONOMIC REGULATORS (1) An order under this Part may not restrict the jurisdiction or undermine the independence of any economic regulator. (2) For the purposes of this section- (a) restricting the jurisdiction of any economic regulator includes diminishing, removing or transferring to another person any function conferred on or exercisable by an economic regulator; (b) undermining the independence of any economic regulator includes imposing on an economic regulator an obligation to comply with the wishes of- (i) a Minister of the Crown; (ii) a person who owes such an obligation to a Minister of the Crown; or (iii) a person who is controlled by a Minister of the Crown. (3) An order under this section may not render a person who is a director or member of an economic regulator removable from office on grounds other than those which were in force on the date on which this Act was passed. (4) In this section, ““economic regulator”” means any of- (a) the Gas and Electricity Markets Authority; (b) the Office of Communications; (c) the Office of Rail Regulation; (d) the Postal Services Commission; (e) the Water Services Regulation Authority; (f) the Office of Fair Trading; (g) the Civil Aviation Authority.”” The noble Baroness said: My Lords, I thank my noble friend Lord Norton of Louth, as this is a slightly modified version of the amendment that he tabled in Committee to great acclaim. I am also very grateful for the support given by the noble and learned Lord, Lord Lloyd of Berwick, to my previous amendment on this issue. The economic regulators have been given statutory powers and duties for the benefit of us all. Their effective regulation of the networks and infrastructures that provide us with electricity, water and transport is critical for our safety and the reliability of crucial services. It is essential that industry continues to invest in the services in order to maintain and improve their quality. This investment will be put at risk if there is the slightest danger of political interference. At previous stages of the Bill, I reminded this House of the Government's behaviour towards the Rail Regulator during the winding up of Railtrack. We need no reminder that in the past economic regulators have been, and may well be in the future, the target of pressure from politicians. In Committee, the Minister attempted to reassure us by promising consultation, yet we have all seen countless orders forced through both this House and another place in the face of enormous opposition from consultations and committees. Equally frequently, the Government have ignored advice and warnings from parliamentary committees. I am afraid that I do not share the Minister’s faith that future Ministers will consistently adhere to his undertaking not to pursue controversial orders and not to undermine the independence of the regulators, welcome as these undertakings are. I was contacted by a member of the Government’s Better Regulation Commission who was worried that my amendment would allow the economic regulators to impose bad regulation on already overburdened businesses. I have written to the member of the commission to reassure him that the amendment would not let economic regulators off following good regulatory practice. Instead, it would ensure that major changes to the regulators were given the full scrutiny that matters of such financial significance to every man and woman in this country deserve. We have seen the Government twist and turn to avoid taking the blame for the mountain of red tape burying business in this country today. It is time that they stopped arrogating more and more powers to themselves, while doing nothing with the powers that they already have. They should clean up their departments and break their addiction to government interference. I beg to move.