I thank right hon. and hon. Members for their participation in this debate. I congratulate the hon. Member for Nottingham East (Mr Leslie) on his new clause, because he has achieved a considerable widening of the debate’s scope, which has led to a wide range of contributions.
Clause 12 is not about paying any negotiated financial settlement. It is about ensuring that Parliament has authorised the Government and the devolved Administrations to incur expenditure under this Bill. It is also about the preparation for the making of statutory
instruments under the powers of the Bill or under existing powers to make subordinate legislation as modified by or under the Bill. The clause has two functions. The main text of the clause is concerned with parliamentary approval for the Government to spend money. The clause also gives effect to schedule 4, which is concerned with fees and charges by which the Government, devolved Administrations and arm’s-length bodies raise money.
Clause 12 and schedule 4 will ensure that all the money that might flow into and out of the Exchequer as a consequence of this Bill is proper and respects the long-established rules for the relationship between this House and the Treasury, as laid down in the 1932 Public Accounts Committee concordat and the Treasury guidance in “Managing public money”.
Taking back control of functions the UK has long delegated to European Union institutions may cost money. That expenditure will come from the use of the powers in the Bill. Although at this stage in the negotiations it is too early to say precisely what that expenditure will be, it might involve expanding public authorities in the UK, recruitment at those authorities or setting up new IT systems. That is not to say that the UK cannot perform those functions more efficiently and, crucially, at a lower cost than the European Union, but clearly we cannot say that it will cost the Government nothing at all to carry out the new responsibilities. It is therefore vital that the financial aspects of taking back control and preparing to take a fully independent position on the world stage are put on a sound and proper footing.
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Clause 12 is a technical clause that is designed to ensure that Parliament has had an opportunity formally to signal its assent to expenditure once the Bill has been passed. The Committee will realise that we are debating the authorisation of expenditure under the powers in the Bill before we debate the powers themselves. The debate on those powers is for another day, when the Government will set out the importance of those powers remaining to ensure that we can effectively correct deficiencies in the statute book arising from our withdrawal in time for exit day. There can surely be no argument about the need to be properly prepared.
Schedule 4 will mitigate the burden of taking on new functions on the general taxpayer. It ensures that fees and charges that are currently made in relation to retained EU law, such as the cost of Kimberley process diamond certificates, can continue to be modified as costs rise and fall, and that new fees and charges can be made, for example to replace those being made by the EU, such as for the regulation of chemicals. That will ensure that those who benefit from the functions transferred from the EU to the UK pay for them and that taxpayers, both corporate and individual, do not end up paying for services provided to others.