Health and Social Care Bill – in a Public Bill Committee at 2:00 pm on 17 March 2011.
With this it will be convenient to discuss Government amendments 496 and 497.
The clause provides powers for the Secretary of State to direct Monitor when he considers that it is failing or has failed to perform a function. The Secretary of State may direct it to carry out the functions within a specified time frame or, when Monitor fails to comply with such a direction, to carry out the functions himself or arrange for other persons to do so. The clause does not set out how that power should be exercised, and I am recommending these amendments so that that is made clear.
Monitor will be the economic regulator of health care services. We do not intend to compromise Monitor’s independence or undermine the benefits of economic regulation by allowing for political interference in its decision making. However, we need to strike a balance. Monitor will continue to be a non-departmental body, and, as such, we need to ensure its political accountability. The Secretary of State will be able to direct Monitor only in respect of significant failings in the performance of its functions, and will not be able to intervene in individual cases. Where the Secretary of State does intervene, he or she will be required to publish a statement on his or her reasons for doing so.
The amendments are needed to make the accountabilities clear and to ensure that Monitor is, as far as possible, independent and protected from political interference. At the same time, they will ensure that steps can be taken should there be significant failings by Monitor in the performance of its functions as an economic regulator. The amendments will also bring Monitor into line with the Government’s proposed overarching principles for economic regulation, which the Department for Business, Innovation and Skills published in January.