Clause 39 — Provision of services

Oral Answers to Questions — Prime Minister – in the House of Commons at 5:45 pm on 4 November 2009.

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Question proposed, That the clause stand part of the Bill.

Photo of David Howarth David Howarth Shadow Secretary of State for Justice

I want to ask about the necessity of this Clause. The Father of the House might correct me, but I do not remember its being referred to in the Public Accounts Commission's report.

Whenever one sees a clause that creates powers to do something that has been done for a very long time, it sets alarm bells ringing. May I ask the Minister whether there is any doubt that the CAG has the power to enter into the type of agreement referred to in the clause, or any doubt about whether anything done in the past is valid?

Photo of Sarah McCarthy-Fry Sarah McCarthy-Fry Parliamentary Secretary, HM Treasury

I am happy to respond to the hon. Gentleman. The Clause does not set out a new power. In the past the CAG has relied on his legal powers as a natural person and corporation sole to enter into agreements and provide non-statutory services. The clause puts that on a statutory footing, and we do not consider that that will add to or restrict the current powers of the CAG, although some of the services provided under that power will now require the prior approval of the NAO. That is under a later provision of the Bill.

Photo of David Howarth David Howarth Shadow Secretary of State for Justice

In a way that is a rather disturbing answer, because Clause 38 already states:

"The Comptroller and Auditor General continues by that name to be a corporation sole."

I am still concerned about what the precise necessity is for the clause. It might be a belt-and-braces approach, but I still cannot see why it is necessary.

Photo of Sarah McCarthy-Fry Sarah McCarthy-Fry Parliamentary Secretary, HM Treasury

I think "belt and braces" is probably an appropriate description! The CAG carries out a huge range of important work in addition to statutory responsibilities: auditing international institutions; consultancy on public audit; and providing support to other Select Committees. The Clause is just a general statutory power to carry out such work under the new arrangements.

Question put and agreed to.

Clause 39 accordingly ordered to stand part of the Bill.

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A parliamentary bill is divided into sections called clauses.

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clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

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