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

I beg to move amendment No. 34, in page 27, line 38, at end insert—

'(d) Any draft regulations which are within subsection (3)(b) shall not be made unless a draft of the regulations has been laid before and approved by a resolution of each House of Parliament'.

Welcome back, Mr. Griffiths, and I hope you had a good lunch. It is splendid to see you in the Chair. Amendment No. 34 would add a new subsection to clause 39 so that the approval of both Houses of Parliament must be given to any regulation made under the clause that creates an offence. We are concerned that the accounting regulations dealt with in clause 39 could create a criminal offence of non-compliance, which would be introduced by the Assembly without any parliamentary procedure. We hope that criminal sanctions would not be created in regulations on accounting offences, but proper parliamentary scrutiny must be in place in the event of such regulations being brought forward.

Although the clause mirrors section 27 of the Audit Commission Act 1998, the Government's argument cannot be for consistency, because the Assembly could create a criminal offence that does not exist in England. Surely the Government are eager to ensure that Parliament is involved in regulations made under the clause, as they proclaim that one of the principles of the Bill regarding criminal law is equivalence between England and Wales. The clause allows for exactly the result that they say they do not want.

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

Clause 39 empowers the Assembly, subject to consultation, to make regulations relating to the form and preparation of accounts by local government bodies in Wales. The regulations can also make provision concerning the public's right under the Bill to inspect documents and raise questions and objections. The Assembly can provide that a person who without reasonable excuse contravenes a particular provision of regulations made under the clause will be guilty of an offence.

Amendment No. 34 would make the Assembly's power subject to the approval of Parliament. The amendment would therefore restrict a power already

available to the Assembly by virtue of section 27 of the Audit Commission Act and the National Assembly for Wales (Transfer of Functions) Order 2001. Accounts and audit regulations allow for a different approach between England and Wales on interpreting non-compliance as an offence. However, to date, the approach has been consistent on a cross-border basis, which I hope will assuage the hon. Gentleman's concerns.

Before making regulations under this clause, the Assembly will be required to consult with the Auditor General, local government and accountancy bodies. Therefore, it would be inappropriate to fetter an existing power that the Assembly has in respect of regulations specific to Wales.

I cannot say whether you had a good lunch, Mr. Griffiths, as the hon. Gentleman mentioned, but my spies tell me that he had a busy time cycling around Westminster. I hope he feels better for it.

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

I am glad that the Minister is keeping an eye on me. I was on my bicycle, but we should not extend the powers to make that an offence—it is a helpful and environmentally sensitive way to get around.

I take the Minister's point that this is an existing power. He will have taken on board the equivalence argument that I made, so I see no point in pressing the issue further. We tabled amendments to try to get this issue right. Having drawn those concerns to the attention of the Committee, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 39 ordered to stand part of the Bill.