Schedule 1 - Best value audit and inspections
Public Audit (Wales) Bill [Lords]
3:15 pm
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.