Clause 2 - Additional functions of Auditor General
Public Audit (Wales) Bill [Lords]
9:25 am
Mr Bill Wiggin (Shadow Secretary of State for Wales, Local and Devolved Government Affairs; Leominster, Conservative)
Amendment No. 4 would delete the words
''if so required by a relevant body''
from proposed new section 96B(1) of the Government of Wales Act 1998, which clause 2 inserts, because they imply that certification is optional. Certification is an important process, which should be an integral part of the Auditor General's duty, but the Bill allows a relevant body to request the Auditor General to certify. We are concerned that the clause allows bodies to shop around for certification of their claims, which is an undesirable practice.
Amendment No. 5 would leave out new section 96C(3) as inserted by clause 2. It is a probing amendment to find out what arrangements will be made between the Auditor General and the three types
of organisation set out in the subsection—a ''relevant authority'', a ''qualified auditor'' and an ''accountancy body''. What arrangements might be made with each type of organisation, and will the Minister confirm which bodies are covered by subsections (1) and (3)?
Amendment No. 6 deals with the Auditor General's independence. Our suggested new subsection would ensure that his independence was not impaired by arrangements that he made with the various bodies for the various purposes in subsections (1) to (3). Maintaining the same standards of auditor independence in the public sector as exist in the private sector is vital. The amendment would give the Auditor General a clear obligation to satisfy himself that the arrangements entered into did not weaken his independence. That statutory requirement would provide firm roots for both actual and perceived independence.
In Committee in the other place, Lord Davies argued that the Government do not believe that a statutory duty is necessary to ensure that the Auditor General upholds the highest standard of independence. As the proposed duty would support what will be the outcome anyway, the amendment would do no harm. In fact, it would strengthen high-quality public audit to have the same firm guidelines and protocols as the private sector has.