Mr Win Griffiths (Bridgend, Labour)

With this it will be convenient to discuss amendment No. 40, in schedule 1, page 46, line 24, leave out

', and in deciding whether to do so,'.

Mr Bill Wiggin (Shadow Secretary of State for Wales, Local and Devolved Government Affairs; Leominster, Conservative)

Amendment No. 39 would delete subsection (4) of proposed new section 2A of the Local Government Act 1999. That section, which appears in paragraph 3 of schedule 1, deals with the best value audit for Wales. This is a probing amendment to find out how the Government think that it will work in practice to exempt certain best value authorities from a functional duty. Amendment No. 40 would delete the words ''and in deciding whether to do so'' from subsection (4) of proposed new section 4A, as inserted by paragraph 9.

The wording implies that the Auditor General has the choice of whether to carry out an inspection of a best value authority, but under subsection (2), the Secretary of State may direct him to carry out an inspection, with which the Auditor General must comply. How, therefore, can the Auditor General have the choice to decide whether to do so, when he is under a compulsory direction?

Mr Don Touhig (Parliamentary Under-Secretary (Wales), Department for Constitutional Affairs; Islwyn, Labour/Co-operative)

Amendment No. 39 relates to the Auditor General's functions under the Local Government Act 1999 in respect of best value authorities in Wales under the Wales programme for improvement, to which I referred earlier. The amendment would prevent the Assembly from exempting by order a best value authority from certain requirements under the programme for improvement. That would take away a power that is available to the Assembly under the Local Government Act. As I understand it, the exemption is not in the sense of a relaxation of best value authority responsibilities. The power would be exercised if the Assembly had fundamental doubts about the exercise of a function by a best value authority and was contemplating making alternative arrangements. The Assembly has not had cause to exercise the power, but that does not detract from its validity and the Assembly's desire to

maintain it. I trust that the hon. Gentleman agrees that it would not be appropriate to limit the Assembly's powers in this way.

Under amendment No. 40, the Auditor General would not be required to have regard to a recommendation by the best value authority's auditor, or to Assembly guidelines, in reaching a decision on whether to undertake an inspection of a best value authority's compliance with the requirements of the Local Government Act. However, he would be required to have regard to those matters in undertaking an inspection. It is equally appropriate for him to take account of an auditor's recommendation and guidance in coming to a decision on whether to undertake an inspection, as is currently the case.

The hon. Gentleman asked, in particular, how the Auditor General can decide whether to carry out an inspection, because the Secretary of State can direct him to do so. The Auditor General may decide himself to carry out an inspection, or be directed to do so by the Secretary of State. The option is there. Following that explanation, I hope the hon. Gentleman feels comfortable about withdrawing the amendment.

Mr Bill Wiggin (Shadow Secretary of State for Wales, Local and Devolved Government Affairs; Leominster, Conservative)

We have dealt with the fact that the Auditor General may himself decide to investigate, or may be ordered to do so by the Secretary of State. I suspect that if the Secretary of State orders it, he must do so and cannot make his own decision not to. That is fine.

Amendment No. 39 is designed to find out why the National Assembly for Wales would exempt an authority. The Minister said that that is one of its powers, which is right, and that the amendment would undermine that. However, before I withdraw the amendment, I would like to know why the Assembly should ever want to exempt an authority. I am sure he will be able to tell me now.

Mr Don Touhig (Parliamentary Under-Secretary (Wales), Department for Constitutional Affairs; Islwyn, Labour/Co-operative)

As I understand it, this is not an exemption in the sense of a relaxation of the best value authority's responsibility. The power would be exercised if the Assembly had fundamental doubts about the exercise of a function by a best value authority and was contemplating making alternative arrangements. The Assembly has not had cause to exercise that power, but it should not be removed because it is valid and may be needed at some point.

Mr Bill Wiggin (Shadow Secretary of State for Wales, Local and Devolved Government Affairs; Leominster, Conservative)

I am happy with that and grateful to the Minister for his reply. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Schedule 1, as amended, agreed to.

Clauses 51 to 53 ordered to stand part of the Bill.