Constitutional Reform and Governance Bill

There are no budgetary implications for this Government. Any budgetary implications would be in the hands of the Welsh Assembly Government. The new clause adds a new Matter 14.1 to part 1 of schedule 5 to the Government of Wales Act 2006 in the field of public administration. It also inserts new paragraph 6A into part 2 of schedule 5 to the 2006 Act to modify the general restrictions on the Assembly's competence. The competence conferred by Matter 14.1 would allow the National Assembly to pass legislation, known as an Assembly measure, to put in place new arrangements for the Auditor General for Wales and the Wales Audit Office. These arrangements are comparable to the ones set out in part 7 of the Bill for the Comptroller and Auditor General and the National Audit Office. However, the Assembly may decide on different arrangements within the scope of the competence conferred. In particular, the competence covers the Auditor General's terms of appointment relating to tenure and remuneration, the number of times that a person may be appointed Auditor General, the efficiency and effectiveness of the Auditor General, the other positions that a serving or former Auditor General may hold, the authorisation of other people to perform the Auditor General's functions on his or her behalf, oversight and supervision of the Auditor General, and the provision of resources for the Auditor General and the charging of fees or other amounts. It is right that the National Assembly should have the power to decide what arrangements are appropriate in relation to the public auditor for the devolved bodies operating in Wales. The structure of public audit is different in Wales compared with England, and the new clause gives the Assembly power to put in place arrangements for the more effective oversight, supervision and accountability of the Auditor General for Wales. At the same time, it makes sure that the independence of the Auditor General's operational audit work is maintained. The Assembly will not be able to modify provisions in the Government of Wales Act 2006 that provide that the Auditor General is not subject to the direction or control of the Assembly or the Assembly Government. That strikes the right balance between allowing the Assembly flexibility to put in place arrangements that it considers appropriate for Wales, and preventing any erosion of the important principle of audit independence. New paragraph 6A in part 2 of schedule 5 provides for an exception to the prohibition on the ability of Assembly measures to modify certain provisions of the Government of Wales Acts 1998 and 2006. That will enable those Acts to be amended by Assembly measure, if the purpose of the amendment is about putting in place the new governance arrangements for the Auditor General. The competence would also enable the Assembly to transfer functions currently undertaken by its Audit Committee relating to consideration of the estimate of the audit reports of the Auditor General by another Committee of the Assembly. However, it could do so only if the Committee to which the functions are transferred is, like the Audit Committee, composed in a way that is independent of Welsh Ministers and the ruling Administration. The consequential Government amendment 43 amends the long title to include the proposed amendments to the Government of Wales Act 2006. I commend the new clause and the amendment to the House. Question put and agreed to. New clause 24 accordingly read a Second time, and added to the Bill.