Legal Services Bill [HL]

While we all enjoyed the spectre of the ship of state of government being holed below the water-line by my noble and learned friend Lord Mackay of Clashfern, and as no doubt some degree of repair is about to be carried out, I just think that the answer is to leave out subsection (1), which is exactly what the amendment seeks to do. Only approved regulators can seek to become licensing authorities. Surely that is the main point, as well as being the main point behind the amendment. Why are we putting this obligation on the board, acting in whatever capacity, to make licensing rules, which it has to do before the end of 12 months? I agree with my noble and learned friend Lord Mackay of Clashfern that it is difficult to understand how this will operate and to whom these rules will apply. Although I recognise the validity of the point made by the noble Lord, Lord Clinton-Davis, we are trying to introduce a simple regime. Provided we still stick to the principle that only approved regulators can seek to become licensing authorities—for example, the Financial Services Authority cannot apply to become a licensing authority—why do we need this additional obligation on the board, particularly when we cannot work out to whom the rules will apply? I and my noble friend, who served so valiantly on the Joint Committee, are anxious to ensure that it is as easy to understand as possible. We have a dilemma, particularly if the Minister runs true to form and rejects this amendment as well. Surely, the answer is for her to accept it.