§ 8.27 p.m
§ Lord MancroftMy Lords, I beg to move that this Bill be now read a second time.
This is a short Bill which was initiated by Mr. Michael Mates in another place. It is, I believe, an uncontroversial measure. Indeed, given its origins, it would not be before your Lordships today if it were at all controversial.
It may be helpful if I sketch in some background to the Bill. The auditor of a local authority is required by 222 Section 15 of the Local Government Finance Act 1982 to consider whether he should make a report on any matter which comes to his attention while carrying out the audit in order that it may be considered by the body concerned or brought before the attention of the public. Such reports are known as auditors' public interest reports. The auditor must also consider whether such reports should be prepared and sent to a body immediately—an auditor's immediate report—or at the conclusion of the audit.
Under the existing law, the principal problem with the arrangements for making such reports public knowledge is that the 1982 Act requires only that an immediate report be taken into account "as soon as practicable". That effectively means that the contents of a report may not be publicly available until some months after its issue and even then it is published only in the sense that it comprises part of the papers for a council meeting. The fact that a report has been produced may not be widely known.
The Widdicombe Report made certain proposals for improving publicity and the Government's response was included in a White Paper in 1988. The Bill builds on those proposals and is designed with four principal objectives: first, to entitle the public to see an auditor's immediate public interest report, to copy it and be supplied with a copy at reasonable cost from the moment it is received; secondly, to require the body concerned to advertise the report; thirdly, to provide for sanctions comparable to those for the current provisions of the 1982 Act; and, fourthly, to give the auditor fall back powers to ensure that the report is made known.
I should not wish your Lordships to think that the Bill is aimed at stopping a widespread abuse. Most bodies ensure that auditors' immediate public interest reports are made available to the public with all proper speed, but there are a few cases where it seems that bodies deliberately delay publication. The Bill will put an end to such delays and ensure that information intended to be made public does indeed enter the public domain promptly. I beg to move.
§ Moved, That the Bill be now read a second time.—(Lord Mancroft.)
§ 8.29 p.m.
§ Baroness Hollis of HeighamMy Lords, perhaps I may give the apologies of my noble friend Lord McIntosh for his absence and I hope the House will accept them.
On this side of the House we give the Bill our full support. An auditor's report of special public interest may or may not deal with issues of fraud or of financial incompetence but it is self-evident that these issues of major public concern should be brought to the attention of the public. Therefore, in the interests of the efficient management of local government, on the one hand, and the public's right to know, on the other, we believe the Bill to be entirely virtuous and give it our full support.
§ 8.30 p.m.
Viscount AstorMy Lords, this is a short Bill. Its purposes have been clearly and ably explained by my noble friend Lord Mancroft. At this stage, suffice it for me to say that the Government support the Bill in principle. We are committed to making local government more accountable and the Bill is a limited measure in that desirable direction.
§ Lord MancroftMy Lords, I thank the noble Baroness, Lady Hollis, for her kind contribution on behalf of the Opposition. She is correct, the Bill covers issues of public concern and it is right that the issues should be made public. I also thank my noble friend Lord Astor for his kind words about the Bill and for the Government's support. I commend the Bill to the House.
§ On Question, Bill read a second time, and committed to a Committee of the Whole House.
§ Viscount DavidsonMy Lords, I beg to move that the House do now adjourn during pleasure until 9 o'clock.
§ Moved accordingly, and, on Question, Motion agreed to.
§ [The Sitting was suspended from 8.31 to 9 p.m.]