Legislative and Regulatory Reform (Regulatory Functions) Order 2007

I join the noble Lord, Lord Hodgson, in saying that we on these Benches support the code and the order. I shall start by picking up on the point that the noble Lord, Lord Hodgson, made. As the Minister will be aware, Members on these Benches have long argued that, as with all regulations, the devil is in the detail and that what is essential from the Government’s point of view is that we should have a full impact assessment before any regulation is brought in. We have also argued for sunset clauses. In this provision, the Government are almost moving towards what we have asked for, in the sense that we have a full impact assessment, which is the document that I have in my hand. Also, taking into account what was said by the noble Lord, Lord Hodgson, we almost have a sunset clause, in the sense that the full impact assessment answers the question, ““When will the policy be reviewed to establish the actual costs and benefits and the achievement of the desired effects?””. The answer is April 2011. So we are getting close in the approach to these provisions to what we on these Benches have been arguing in favour of for some time, which we have put into our last two general election manifestos. Turning to the regulations, it is clear that the Hampton principles are similar to apple pie and motherhood—who could be against them? Of course, the devil will undoubtedly be in the detail. From practical experience, I shall take just two examples. The first is Hampton principle 6, which is going to be endorsed in these regulations, which states that: "““No inspection should take place without a reason””." I look forward very much to the Health and Safety Executive implementing principle 6 of the Hampton principles, because anyone involved in business would say that many visits made by the Health and Safety Executive are time-wasting and are made for no apparent reason. So again, it will be for the devil to be found in the detail to see whether the HSE adopts principle 6. A very contemporary example is principle 9, that: "““Regulators should be accountable for the efficiency and effectiveness of their activities””." I look forward to that principle being adopted in the activities of the Financial Services Authority in relation to Northern Rock. It will be a matter for judgment and subsequent action to see whether the FSA observed principle 9 or whether it will be called to account as the Northern Rock saga unwraps itself—if that is the correct phrase in this particular circumstance. In general, however, I welcome the Government’s adoption of the full impact assessment and almost getting a sunset clause. Obviously, I welcome the principles, but by 2011 we will know whether this has had any practical effect.