Public bodies bill passes second reading

Public bodies bill passes second reading

The government’s controversial public bodies bill passed its second reading in the House of Commons in July by 304 votes to 229 – a government majority of 76.

A Labour amendment declining to give the bill a second reading was defeated by 307 votes to 231.

The bill gives ministers powers to abolish or reform public bodies with little Parliamentary or public scrutiny.

Retain or reform tests

Conservative MP Bernard Jenkin chairs the Select Committee on Public Administration which published a critical report on the bill in January 2011.

He said the bill was “much improved and much more acceptable”. But MPs could make improvements “to ensure that these controversial changes to bodies that were, after all, brought into being through primary legislation are not simply ticked off by Ministers with a stroke of the pen.”

Jenkin pointed out that the tests in the bill are different from the tests applied in the government’ s 2010 review of public bodies.

Clause 8 gives four tests: efficiency; effectiveness; economy and “securing appropriate accountability to Ministers”.

Jenkin said effectiveness was not defined; he presumed that economy meant value for money and said he did not know what “appropriate accountability” was. He added that these were “very subjective tests” to have in legislation.

Protection for staff who are transferred

Labour MP John McDonnell pointed out that consultation with staff unions is not listed in the bill. He said that the bill should contain an explicit reference to the Transfer of Undertakings (Protection of Employment) regulations.

Nick Hurd, Parliamentary secretary, Cabinet Office, said he would be happy to meet McDonnell “to clarify any confusion that might exist in relation to TUPE”.

Office of the Chief Coroner, Agricultural Wages Board, S4C

Much of the debate focussed on three public bodies: Office of the Chief Coroner; the Agricultural Wages Board and S4C (the Welsh Channel 4).

Andrew George, who leads on Defra matters for the Liberal Democrats, opposed the abolition of the Agricultural Wages Board.

The bill will now go to a public bill committee which will examine it line by line and report back by October 13.

Read the full version of this story.

Read the latest House of Commons library briefing on the bill.


  • 19 Jul 2011