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

I beg to move amendment No. 42, in page 41, line 24, leave out subsection (2).

This probing amendment would delete clause 70(2), which deals with transitional provisions. The amendment is designed to find out the length of current appointments of local authority auditors under the Audit Commission Act 1998 before new appointments are made under clause 13. I seek an assurance from the Minister that the purpose of the Bill, which is to put the Auditor General in charge of local authority audits in Wales, cannot be frustrated.

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

The amendment would remove continuity of audit arrangements in the transition to the new arrangements under the Bill. Clauses 69 and 70 provide for appointments of auditors already made by the Audit Commission for local government bodies and NHS bodies in Wales to remain in force when the Bill comes into force. The appointments will continue in force until they expire under their own terms. From the date of the relevant provisions of the Bill coming into force, existing local government-appointed auditors will be regarded as having been appointed by the Auditor General. Existing NHS-appointed auditors will be regarded as exercising the statutory audit functions of the Auditor General. That is a sensible and pragmatic arrangement. It will provide

client bodies with continuity and avoid any contractual difficulties that may arise through the early termination of appointments.

Under the amendment, existing contracts would have to end when the Bill came into force. The Auditor General would have to undertake an extensive, costly and time-consuming procurement exercise to make new appointments, potentially of the same auditors, to take effect on the first day of the Wales Audit Office's operation. That would be on top of other preparatory work required to ensure that the office runs effectively from the outset. Therefore, I hope that the hon. Gentleman will consider withdrawing the amendment.

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

The Minister will recognise that we do not wish the Auditor General to be frustrated by existing auditors. As long as he is confident that that will not happen, I am content. It is important that existing auditors continue in the form that he outlined. I recognise the inadequacy of the amendment, but I emphasise that it was a probing amendment to find out whether the Auditor General would be frustrated. The Minister has assured me that he will not, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 70 ordered to stand part of the Bill.

Clauses 71 and 72 ordered to stand part of the Bill.

Schedule 4 agreed to.

Clauses 73 and 74 ordered to stand part of the Bill.