Clause 70 - Welsh NHS bodies
Public Audit (Wales) Bill [Lords]
3:45 pm
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.