My Lords, Amendments 36ZA and 36ZB seek to amend the provisions in the Bill that relate to the provision for the making of a scheme to transfer property, rights and liabilities from public authorities to combined authorities. The Bill specifies that where a function of a public authority is to be a function of a combined authority, the property, rights and liabilities of the public authority can be transferred to the combined authority. These amendments seek to change this by removing from the Bill the provisions that allow for the transfer of public authority liabilities.
These amendments would prevent liabilities from being transferred from a public authority to a combined authority. Clause 6 enables the Secretary of State, by order, to confer on a combined authority powers exercised by a public authority. If functions are transferred, there may be some instances where assets, property, rights and liabilities should also be transferred to the combined authority in order for it to be able to exercise these functions.
As we have discussed, the whole Bill is enabling legislation. No combined authority will be forced to take on powers it does not wish to have, nor will a combined authority be forced to take on a public authority’s property, rights or liabilities. An existing combined authority must consent before such transfer can take place, and in the case of a new combined authority, the appropriate local authorities seeking to take on public body functions must have consented to the transfer of the property, rights and liabilities of the public authority. However, there may be times where such a transfer is necessary to give full effect to devolution deals.
Similar transfers of property, rights and liabilities from a local authority to a combined authority are already possible under Section 115 of the Local Democracy, Economic Development and Construction Act 2009. Such transfers have already happened when establishing combined authorities; for example, when the West Yorkshire combined authority was established the integrated transport authority and the passenger transport executive were both closed, and their functions, assets, liabilities et cetera transferred to the combined authority. This provision purely mirrors the existing provisions by applying the same principles to transfers from public authorities.
The noble Lord asked about TUPE. The tradition and past practice is that when transferring functions within the public sector, TUPE applies, and it always has up to now. I hope that with this explanation the noble Lord will feel able to withdraw his amendment.