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

Amendment No. 44, which would affect the Audit Commission Act, would require the Audit Commission to co-operate with the Auditor General, where appropriate, for the efficient and effective discharge of the latter's functions in respect of undertaking studies under clauses 41 and 42. The Bill gives the Auditor General and the Commission various reciprocal duties to co-operate, as we have discussed earlier. It requires them to co-operate in respect of studies that they would initiate themselves, under clauses 41 and 42 and under sections 33 and 34 of the Audit Commission Act respectively.

Those duties are contained in clause 43, and paragraph 34 of schedule 2—the provision that would be subject to amendment. In those provisions, the requirement to co-operate rests with the initiator of the study. The intention is that, in proposing a study, each would consult and co-operate with the other in terms of timing, exchange of relevant information and the potential for joint working in so far as they consider it necessary and appropriate.

The Bill also gives a mutual duty to the Auditor General for Wales and the Audit Commission to provide each other with any information that they reasonably require to make comparisons between English and Welsh bodies when undertaking studies of those bodies. That provision was inserted in another place after representations from the Opposition parties and was found to be quite helpful. The duty is in clause 57, and paragraph 34 of schedule 2.

The Government have not imposed a duty on the Audit Commission and the Auditor General to co-operate with each other's studies other than by the exchange of information. Our firm expectation is that

regulatory and audit bodies such as the commission and the Auditor General will collaborate closely on work of cross-border interest. The Bill encourages them to do so, and the evidence submitted by both parties during pre-legislative scrutiny of the draft Bill demonstrated a clear willingness to do so. However, a duty would create operational difficulties in matters such as forward work planning, and could ultimately have a restrictive effect.

The hon. Gentleman touched again on cross-border duties. Logically, a duty for the Audit Commission would require a reciprocal duty for the Auditor General in respect of commission work, which could fetter the latter's discretion to organise the work as he sees fit. I hope that the hon. Gentleman is content with that explanation.

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

I am grateful to the Minister for his reply. This is a missed opportunity and a waste, but it is not a critical missed opportunity, so there seems little purpose in pushing the Government further at this stage, although with hindsight it would have been helpful if the duty had been included. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Schedule 2 agreed to.

Clauses 67 and 68 ordered to stand part of the Bill.

Schedule 3 agreed to.

Clause 69 ordered to stand part of the Bill.