There are two main points to make about the Clause. Subsection (1) states:

“LBRO and a regulator to which this section applies must enter into a memorandum of understanding with each other as to how they will work together”.

The clause then lists the regulators under subsection (2). Organisations such as the Environment Agency and the  Food Standards Agency are major national regulators. They were keen to establish that, when LBRO was set up, there was an understanding of how they should work together. It is envisaged that the documents will set out the ground rules for mutual consultation and so on.

My second point is that the clause is permissive in the sense that other MOUs could be conducted with other organisations. The hon. Gentleman also asked what would happen if a conflict arose, the bone of his question. I stress that the organisations listed would retain their statutory independence. They will have to discuss matters maturely. I do not want the hon. Gentleman to feel that there will be some kind of takeover of these organisations by the LBRO. We are talking about memorandums of understanding, and the organisations concerned will retain their statutory independence under the clause.