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Legal Services Bill [HL]

I agree with the noble Lords, Lord Kingsland and Lord Maclennan of Rogart, that it is essential that the board consults on important points of policy and the framework under which it operates. The combination of the Bill and the regulatory best practice provides that the board will do so and that it must give sufficient regard to representations from consumers and practitioners. As the noble Lord, Lord Kingsland, said, Amendment No. 139FA duplicates the current provisions of the Bill, ensuring that the board makes arrangements to consult consumers. We think that, in Clauses 8 to 11, we already have the statutory duty to consult consumers which sets up and maintains the Consumer Panel. Clause 10, for example, obliges the board to consider representations made to it by the Consumer Panel. In accepting Amendment No. 38, we have accepted in principle that this requirement should apply also to representations from the approved regulators. As the noble Lord said in referring to Clause 49, the Bill also ensures that before a statement of policy is issued and before rules are made by the board, they must comply with the procedures in Clauses 49 and 195. Those provide that, "““the Board must have regard to any representations duly made””." That is not limited to practitioners and consumers. It is a wider duty that encompasses other interested parties; for example, other regulators such as the Financial Services Authority which may wish to inform how the board develops its policies and procedures. Clause 6 refers to the annual report and, "““the extent to which … the Board has met the regulatory objectives””," and the discharge of its functions. As we discussed, the Secretary of State must then lay the annual report before Parliament for scrutiny. That is another opportunity to provide ongoing transparency and accountability once the board’s policies are established. In particular, the board will need to consult the approved regulators and whoever else it feels is necessary to decide on its work plan for the coming year. Amendment No. 139FB seeks to create a statutory obligation for the board to consult in advance of setting its work plan for the year and specifically to consult on the degree to which the activities are appropriately targeted on areas giving rise to the greatest regulatory concern. Clause 3(3)(a) already obliges the board to have regard to the targeting of only those cases where action is needed. As I said, if an approved regulator or consumer has concerns about how the board’s plans will operate, they can make representation to the board. In addition, any allegations of unnecessary regulatory burdens will of course be open to parliamentary scrutiny. We think that we have captured what the noble Lord is seeking to do in the Bill. Perhaps he will reflect on the references that I have made between now and the next stage. Combined with good regulatory practice, there is nothing between us on what we are seeking to do. We believe that we have captured it in the Bill already. On that basis, I hope that he will withdraw the amendment.