Mr Henry Bellingham (North West Norfolk, Conservative)

Clause 11 refers to the

''power of the Secretary of State to amend that Schedule''.

Will the Minister confirm how the power will be exercised? Will it be by Order in Council? Presumably, it will be done through regulations appearing before both Houses.

Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)

The Government aim to ensure that the recognition procedure works smoothly, effectively and fairly. Our review of the Employment Relations Act 1999 found that the procedure worked well overall. However, considerable parts of what is a lengthy procedure are still untested. Inconsistencies or operational difficulties with the process could come to light as the body of cases grows. Therefore, the Government may want to make technical amendments to the procedure without using valuable parliamentary time in amending the schedule through primary legislation.

When the 1999 Act was drafted, a power to amend the schedule was not included to avoid constant pressure for operational changes during the settling-in period. The procedure has now operated for more than three and a half years and has been broadly accepted as a reasonable settlement. There is much less uncertainty about the effects of the legislation.

The clause provides a new power for the Secretary of State to amend any provision in the schedule by order. He or she may do so only if the CAC informs them that the provision in question has an unsatisfactory effect. However, the Secretary of State is not obliged to amend the schedule in the way proposed by the CAC. The CAC is an independent and

highly regarded body with much specialist knowledge. Allowing the CAC that role will ensure that the power to amend the schedule will be used for sensible or technical amendments.

The new power does not interfere with the Secretary of State's discretion to exercise existing powers to amend particular parts of schedule A1 on her own initiative. The powers include, for example, paragraph (7) of the schedule, which allows the Secretary of State to change the 21-worker threshold. The power will not prevent the Secretary of State from independently exercising other specific powers in the Bill.

The power is limited. Orders under the power will be made only by the affirmative resolution procedure. Parliament will therefore have adequate opportunity to scrutinise orders. As a general rule, we will consult interested parties on draft orders before they are tabled in Parliament, as we usually do. The power will allow the Government to respond promptly and effectively to any operational difficulties with the procedure that may arise. We believe that it is a sensible measure.

Mr Henry Bellingham (North West Norfolk, Conservative)

The Minister said that parties would be consulted as a general rule. Would it not make sense to consult interested parties at all times?

Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)

As the hon. Gentleman knows, we have a good track record of consultation. We introduced the 12-week consultation period, and we have consistently kept to that. I accept the point that it is advisable to consult fully, and we intend to do so.

Question put and agreed to.

Clause 11 ordered to stand part of the Bill.