Northern Ireland Assembly, 23 June 2015

331 contributions from 58 members. The official report.

Assembly Business

Gregory Campbell (DUP, East Londonderry)

On a point of order, Mr Speaker. I seek your guidance. Some time ago, I tabled a question for written answer to the Minister of Agriculture and received a reply in the past few days. It was in relation to an invite that she had extended to an event at the proposed DARD headquarters at Ballykelly camp. I had asked her whether invites were sent out to local community associations and local representatives. She said that they were. I indicated to her in a subsequent question that it appeared that an unelected representative from another constituency, who was a Westminster candidate a few weeks after the event, was present at the event and, in fact, was photographed beside her and the deputy First Minister. Yet her reply says that no such person was invited either by the Department or by her. I just wonder whether you, Mr Speaker, could investigate the accuracy of the reply and give advance notice to other Ministers to avoid such gatecrashing in the future.

Mitchel McLaughlin (Speaker, South Antrim)

The Member has got his point on the record. I suspect that he knows very well that it is not a point of order. Ministers take responsibility for the content of their own answers. It is not a matter for the Speaker. The circumstances of that particular event, as a result of you putting it on the record, permits the Minister and her departmental staff to consider the accuracy of the information that they transmitted. Let us move on.

Mike Nesbitt (UUP, Strangford)

On a point of order, Mr Speaker. I am going to crave your indulgence on this point of order. As you will be aware, Councillor John Hanna was killed in a very tragic accident yesterday on the north coast. I know that he is not directly associated with the House, but he served for 22 years as an elected representative, and I would just like Hansard to record the fact that we mourn his passing.

Mitchel McLaughlin (Speaker, South Antrim)

Again, it is technically an abuse of the point of order process, but I think that all Members will share the sorrow and extend condolences to the family. I never met the gentleman, but, by all accounts, he was an outstanding public representative and appears to have been a very well-loved figure in his community. The point has been very well made and is on the record.

Before we proceed to today's business, I would like to inform Members that the Business Committee has agreed to reduce the lunchtime suspension to one hour in order to reduce the lateness of today's sitting. It will commence half an hour later, at approximately 1.00 pm, and the sitting will resume at 2.00 pm, when the first business item will be Question Time.

Mitchel McLaughlin (Speaker, South Antrim)

As with similar motions, this will be treated as a business motion, so there will be no debate.

Resolved:

That Mr Ross Hussey replace Mrs Sandra Overend as a member of the Committee for Education; and that Mr Robin Swann replace Mr Tom Elliott as a member of the Committee for Agriculture and Rural Development with effect from 30 June 2015. — [Mr Swann.]

Committee Business

Mitchel McLaughlin (Speaker, South Antrim)

The Business Committee has agreed to allow up to one hour and 30 minutes for the debate. The proposer will have 10 minutes to propose the motion and 10 minutes to make a winding-up speech. All other Members who wish to speak will have five minutes.

Jimmy Spratt (DUP, Belfast South)

I beg to move

That this Assembly notes the report of the Committee on Standards and Privileges on the Review of the Northern Ireland Assembly Code of Conduct and the Guide to the Rules Relating to the Conduct of Members [NIA 178/11-16]; agrees to the new code of conduct and guide to the rules set out in annex 1 of the report; and further agrees to the other recommendations contained within the report.

I join with what has been said in relation to the late Councillor John Hanna and offer the condolences of my party colleagues on his tragic death yesterday after an accident. I had the privilege of working with John for a number of years on the Northern Ireland Local Government Association, and he was an outstanding public representative.

Over the last year, the Committee on Standards and Privileges has carried out a review of the Assembly’s code of conduct and guide to the rules. I thank everyone who contributed to the review, including those who offered us evidence, those who hosted our visits and those who provided us with answers, research and legal advice. I also thank the former members of the Committee who contributed to the review, particularly my colleague, the previous Chairman, Alastair Ross, who carried out most of the work in relation to this. I also put on record the Committee's gratitude to the Clerk and the other Committee staff for the outstanding support they gave during the review. The collected efforts of all those involved has allowed the Committee to bring forward a new and improved code today for the Assembly’s approval.

Much of our time during the review was spent on the question of when and how the code should apply to Members. That question is not as straightforward as it might seem. There were some, including the Committee on Standards in Public Life, who told us that, in certain circumstances, private behaviour can affect the reputation and integrity of a public institution. They said that, where that happens, there can be a clear public interest in a proportionate intrusion into a Member’s private life.

We disagreed. Of course, a Member’s actions in their private life could affect public confidence in their ability to carry out their role, but that does not provide a rationale for extending the scope of the code, and its standards and rules, to their private life. That would be unfair and disproportionate, even in limited circumstances.

Having said that, it is not always easy to differentiate between a Member’s private life and their wider public life and role as a Member. When we participate in media interviews, attend public events, and use social media, in what capacity are we doing so? The answer, depending on the situation, is not always obvious. The Committee therefore believes that the code should continue to apply in those circumstances, unless it is clear that a Member is acting exclusively in another capacity.

The Committee gave careful consideration to the issue of Members' comments. As a point of principle, the Committee believes, and has consistently stated, that it would be entirely inappropriate for the Assembly to seek to prevent or limit the lawful expression by a Member of any political opinion. That includes opinions on social or moral issues, even when such opinions should be regarded as offensive or inappropriate. The legal position on Members' right to freedom of expression supports that principle. The law gives enhanced protection to political expression and protects not only the substance of what is said but the form in which it is conveyed. Therefore, in the political context:

"a degree of the immoderate, offensive, shocking, disturbing, exaggerated, provocative, polemical, colourful, emotive, non-rational and aggressive, that would not be acceptable outside that context, is tolerated".

I am sure that we can all think of some examples of Members making those types of comments. However, the right to freedom of expression should not be misunderstood as allowing Members to bully or harass others. Clearly, that sort of conduct is unacceptable. The new code therefore provides that Members should not subject others to unreasonable and excessive personal attack.

That rule is just one of 21 enforceable rules in the new code. Most of them replicate, clarify or amend existing rules. Others are completely new, so I will say a few words about them. The new code provides that Members must not accept any gift, benefit or hospitality that might reasonably be thought to influence their actions when acting as a Member. Up until now, it has been enough for Members simply to register the receipt of such benefits. Generally speaking, no difficulty arises when they do so, provided that they do not then advocate for the person who provided the benefit. However, the Committee has agreed that, in certain circumstances, the receipt of particular benefits could reasonably be thought to influence Members' actions, even when they register them and comply with the Assembly rule. The Committee agrees that the receipt of such benefits in those circumstances would be unacceptable. Our new rule addresses that and brings us into line with the rules that apply to many other public-office holders.

The new code also provides that Members shall take reasonable care to ensure that their staff, when acting on their behalf, uphold the rules of conduct. That rule recognises, in the first instance, that Members' staff must not be able to act in a manner that improperly places personal interest above public interest. It also recognises, however, the primacy of Members as the employer in ensuring that their staff behave appropriately. Members should ensure that staff working for them are aware of the provisions of the code through appropriate induction, training, management and oversight and through requiring staff to adhere to their own code of conduct. The Committee shall liaise with the Assembly Commission and others to ensure that, if possible, a code of conduct for Members' staff is agreed and introduced to have effect from the start of the next mandate.

In his poem 'Choruses from "The Rock"', T S Eliot decries those who constantly dream of:

"systems so perfect that no one will need to be good."

The Committee understands that. It does not assume that, if Members mechanically follow the 21 rules, all will be well and that standards at the Assembly will be unquestionable.

Members must also take personal responsibility for their behaviour. No matter how comprehensive our rules, adherence to them does not absolve Members of their own personal integrity. Members must want to behave ethically and should base their behaviour not just on rules but on sound values and principles.

For that reason, in addition to rules, the code contains a number of principles. Those principles are aspirational rather than enforceable, but are just as important. The principles reflect the fact that Members should at all times conduct themselves in a manner that will tend to maintain and strengthen the public's trust and confidence, and integrity in the Assembly.

We must not forget that Members of the Assembly can be influential leaders to whom the public often look to provide an example. We know from research that the ethical behaviour of elected representatives can have an impact on the ethical standards and norms displayed across society more generally. The Assembly should therefore encourage and expect Members to observe those aspirational principles of conduct. As the guardian of the principles of conduct at the Assembly, the Committee will consider how best to promote them and will draw attention to practices and conduct that are incompatible with them.

The Committee is confident that the new code and guide will increase the public's confidence in the probity of the Assembly and the accountability of its Members. On behalf of the Committee, I commend the report to the House.

Fra McCann (Sinn Féin, Belfast West)

Go raibh míle maith agat, a Cheann Comhairle. I would just like to echo the thoughts and prayers that have been offered this morning for John Hanna. As a long-term councillor before I came into this place, I know about the difficult and hard work that is put in by councillors. I know that John had been an active member of NILGA and had worked to establish that organisation. From Sinn Féin, I would like to pass on our prayers and thoughts to the family of John.

My colleague Cathal Boylan was to lead the Sinn Féin position on the code of conduct but, unfortunately, Cathal is in hospital for an operation. We send our best wishes to him for a speedy recovery.

On 14 March 2015, the Committee on Standards and Privileges announced that it would carry out a review of the Assembly code of conduct. Its purpose was to establish the principles of conduct of all Members, to set rules for all Members to adhere to and to provide openness and accountability, thus ensuring public confidence in the standards regime in the Assembly. That wholesale review was agreed with the aim of clarifying what the purpose of a new code of conduct should be. It would define the scope of the code, determine where it does and does not apply and, ultimately, come up with a new draft that is comprehensive, clear and enforceable.

The Committee wrote to key stakeholders, including all Assembly Members, all political parties in the Assembly, the Speaker and the Equality Commission. The Committee published issue papers on the Assembly website, released press statements and took out adverts in the main local papers. In the end, the Committee was satisfied that all relevant stakeholders were approached to secure the widest possible participation. A total of 22 written submissions were received. I understand that Sinn Féin and the Ulster Unionist Party were the only two political parties to submit written submissions, which included recommendations that the Assembly approves the new code of conduct and guide.

The new code and guide include managing conflicts of interest; upholding the law; registering a declaration of interest; prohibition of the receipt of certain gifts; paid advocacy; misuse of payments; guidance and instructions; treatment of confidential information; interference with the performance by the Assembly of its functions; the abuse of position by a Member; and subjecting others to personal attack.

We also discussed Standing Order 69, which should be reviewed to determine whether it should be amended to reflect provisions of the new code and guide. The new code and guide should not come into effect until after the review of Standing Order 69 is complete.

The Assembly welcomes the independent financial review panel's intention to include in this determination for the fifth Assembly a provision for reducing the salary of a Member by 90% for any period during which that Member is imprisoned. The Committee on Procedures should review whether Standing Order 70 is necessary. It should liaise with the Assembly Commission to ensure that a code of conduct for Members' staff is agreed and introduced, to have effect from the start of the next Assembly. The seven principles of public life fulfil the purposes of promoting good behaviour in public life: selflessness; integrity; objectivity; accountability; openness; honesty; and leadership.

The new code includes 21 enforceable rules of conduct. These are clear and concise in spelling out what Members must do and what they must avoid. One new rule requires Members not to accept any gifts or benefits that might influence their actions. This brings us into line with many other public office holders. Some include avoiding conflict between personal interest and public interest; upholding the criminal law; upholding the law in relation to equality; and the Assembly's register of interests and all relevant issues. Members will not misuse any payment, allowance or resources that are available to them for public purposes. These include a new rule that requires Members not to accept any gift, benefit or hospitality that might reasonably be thought to influence their actions as a Member. This brings us into line with many other public office holders. Members will cooperate at all times with any investigation and will not disclose details about such an investigation except when authorised by law or an investigatory authority.

To conclude, the Committee agreed that specific training and education should be made available to Members in a range of areas. The Committee believes that this work would be complemented by Politics Plus and recommends its approach to seek to put in place appropriate training for this range of standards. Overall, we are satisfied that the work that has been carried out will instil public confidence.

Seán Rogers (Social Democratic and Labour Party, South Down)

I also add my condolences to the Hanna family on the death of John. I knew John for many years. He was a councillor on the neighbouring Banbridge District Council. I always found him to be a gentleman. To his wife, Joan, the Hanna family and, indeed, the wider unionist family, I send my sympathies.

I welcome the opportunity to take part in the debate on the review of the code of conduct. As was the case with the last Member who spoke, I am the first sub in place of Committee member Colum Eastwood, who is unable to be here today.

From reading the report, it is clear that the Committee has undertaken significant work to review the Assembly's code of conduct and guide to the rules relating to the conduct of Members and to create a new updated version that draws on the opinions of a wide range of stakeholders from within the Assembly and beyond. This work includes a redefinition of the purpose of the code; a clarified scope; 11 aspirational principles of conduct; 21 enforceable rules of conduct; and a clear and more concise guide to the rules.

Mr Eastwood asked me to thank, on his behalf, the Committee staff, who worked tirelessly throughout the year in the operation of the Committee and the creation of the report that we are considering today.

The Committee's work is prompt. We have seen recent publications from the Council of Europe's Group of States against Corruption and the Committee on Standards in Public Life on best practice in promoting good behaviour in public life. The Committee on Standards and Privileges here is to be commended for its timely response to reports of this nature and the publication of today's report.

I do not intend to give an exhaustive analysis on all issues in the report, but I will highlight a few key areas of work that have been undertaken. The House and its Members should always strive to operate within an established level of conduct that is befitting of elected representatives. A code of conduct should not be a loose guide to defining how Members should conduct their business in public life but should instead be a mechanism for adherence to an established set of principles. It is for this reason that the ombudsman and the commissioner, when considering the Committee's work on the report, welcomed a change in the language in relation to the code of conduct. The word "expected", for example, has been used before in the code. The ombudsman suggested that the word "required" be used instead. This reflects a key theme that has been highlighted by the ombudsman, the commissioner and others, namely that the code of conduct should extend beyond assistance or guidance for Members and have a greater purpose in compelling Members to behave in a certain way.

The Committee examined the scope of the code of conduct in relation to the private and family lives of Members. The Ulster Unionists were particularly strong in their representation on this. The Committee was not convinced that it was responsible or proportionate to extend the code of conduct beyond situations to which Standing Order 65 applies.

That said, there have been incidents, as acknowledged by the ombudsman, when an MLA might have been acting outside the Chamber in his capacity as an elected Member. It is there that the distinction between public duty and private life may become slightly blurred. I believe, having read the report, that the Committee was diligent in considering this issue, and the code has been updated to reflect that.

The Committee's review also considered lobbying. It is clear that lobbying takes place on a much lesser scale here than in other parts of the world: in the United States, for example, lobbying is a highly regulated, multibillion dollar industry. The Committee broadly agreed that lobbying is a legitimate practice that helps democracy and aids policymaking in the Assembly. However, the possibility that undue weight is given to lobbyists who wield the power of money is always there, and the Committee was cognisant of that.

There was a separate discussion about a possible statutory register of lobbyists, as exists in different jurisdictions. That is an interesting idea. However, the Committee was not convinced that the absence of any such register has created problems here. Furthermore, the Committee was wary of creating extra administrative burden and bureaucracy where they were simply not needed.

Having received legal advice, the Committee's view was that Standing Order 69 be reviewed to determine whether it should be amended to reflect the provisions of the new code and guide. Standing Order 69, of course, concerns Members' interests. It is my understanding that the consideration of Standing Order 69 has been passed to the Committee on Procedures and that the code would need to be amended to reflect the considerations of that Committee and any legal advice given. That is a prudent course of action.

I commend the work of Committee members and staff in the creation of this report. I hope that it goes some way to ensuring high standards of behaviour and personal responsibility in the House and beyond.

Sandra Overend (UUP, Mid Ulster)

I, too, would like to record my sympathies for Councillor Joan Hanna on the passing of her husband John. He will be sadly missed indeed by so many. My thoughts and prayers are with them all.

I speak on behalf of the Ulster Unionist Party to commend the Committee report, which followed a thorough and lengthy review of the code of conduct. I add my thanks to the Clerk and staff of the Committee for pulling together a vast amount of information.

The review began in March 2014, and I am glad that it reached its conclusion before the end of this mandate. The new code, if agreed today, will be introduced in the new Assembly mandate — I might have added "in May 2016" but the ways things are going around here, you just never know when that might be.

When a complaint against a Member is made, the process is meant to proceed in closed session and behind closed doors. However, many make it into the public domain due to the strong feelings of complainants and the view that they must be seen to have lodged a complaint. In my experience on the Committee, however, it has often been the case throughout this mandate that complaints turn out to be inadmissible as they are outside the scope of the code of conduct. That conclusion is reached following investigations — through written correspondence, oral interviewing or both — by the Commissioner for Standards, who is, currently, Douglas Bain.

A number of difficulties have been experienced with regard to complaints about Members, their conduct and how that has been perceived by the public at large. That is inevitable, considering the political dynamic in Northern Ireland, the history of the Troubles and the fact that we have such vastly differing views of what is acceptable, what is normal and, sometimes, what is the truth.

One of our main concerns about the existing code of conduct was that it was too ambiguous in parts, leading to unrealistic expectations of what it was supposed to do. A major difficulty throughout our evidence sessions and discussions was how to define when an MLA was acting as an MLA. While a Member is certainly entitled to a private and family life, there are occasions when it is difficult to define where that line lies.

The Committee has, therefore, taken the view that the code of conduct should continue to apply in circumstances where a Member only partly accounts for the Member's actions, except when it is clear that a Member is acting exclusively in another capacity. Of course, it shall not be enough for a Member to state that they are not acting as a Member. The commissioner is expected to take into consideration all relevant evidence etc before concluding if a Member is acting exclusively in another capacity. It is extremely important that there is increased clarity in this area.

For these and many other reasons, it is crucial that Members have a clear set of rules and standards. The new code of conduct includes both 11 aspirational principles of conduct and 21 enforceable rules, supplemented by a guide to explain the application of how to comply with the code. The principles are largely similar to what we had before, but the 21 rules are much more clearly defined. Therefore, Members and the public should find it easier to define if the code has been broken without having to process a complaint, which is often a complicated procedure. I have looked to summarise the 21 rules into the following categories: interest and influence; upholding the law; improper use of your position; respect; cooperation with any investigation; not urging other Members to contravene the code; and staff conduct.

I agree with the Committee recommendations that it would be useful if Members and staff were provided with some training on adhering to the code of conduct and in dealing with areas such as social media to ensure that Members know their limitations and act with respect and in an appropriate manner befitting of an MLA.

I must have talked much faster than I anticipated when I wrote this speech. I will draw my remarks to a close by commending the report to the House. It is important that Members act appropriately and avoid bringing the Assembly into disrepute. As one of our witnesses, Dr Tom Walker from Queen's University, said, we are the guardians of its integrity.

Anna Lo (Alliance, Belfast South)

First, I want to thank the Committee staff, particularly the Clerk, Paul Gill, who has ably assisted the Committee in reviewing the code of conduct and the guide to the rules. I joined the Standards and Privileges Committee as its vice-chair in September 2013. In recent months, it has become apparent that the majority of complaints received were inadmissible. While parliamentary privilege in the Chamber is reasonably well known to MLAs and the public, behaviours in Committees and elsewhere are not so clear. On several occasions, breaches of our code determined by the Commissioner for Standards were challenged as being not compatible with human rights convention articles such as the right to life or freedom of expression.

The Committee spent considerable time and effort conducting the review with a widespread consultation and consideration of best practice in other jurisdictions. We have also taken into account the Council of Europe's Group of States against Corruption reports and the UK Committee on Standards in Public Life's review, 'Standards Matter'. I therefore welcome the publication of the Committee report and believe that the revised code and guidance will give us an opportunity to increase public confidence in the integrity of the Assembly and accountability of MLAs, particularly at a time when the institution's rating is at an all-time low.

The new code will provide clarity to aspirational principles and set out enforceable rules that spell out clearly things that Members must and must not do in order to act in a manner consistent with the principles of conduct. When Members and the public know what standards of behaviour are expected of MLAs, this should result in fewer inadmissible complaints. However, it is important to reflect on the Assembly commissioner's remarks that the standards set out in the code are the minimum expected of Members. The Alliance Party endorses the updated 11 principles of conduct, the 21 enforceable rules of conduct, and the guide to the rules.

We welcome in particular the rules that deal with registering interests and prohibiting the receipt of gifts that might reasonably be thought to influence a Member's actions, as they are important to ensure that MLAs act in an impartial way. In terms of receiving payment to advocate for any outside body or individual, the Alliance Party feels very strongly that Members should be prohibited from providing paid advice for lobbyists. If we are to improve the levels of trust and confidence in the political system, we need to be as transparent and open as is possible.

As someone who has received a racist slur on social media, albeit unintentionally, from an MLA's assistant, I personally endorse rule 19, which states that Members:

"shall take reasonable care to ensure that your staff, when acting on your behalf, upholds these rules of conduct."

Finally, the Department of the Environment implemented the 'Northern Ireland Local Government Code of Conduct for Local Councillors' in April 2015. That is based largely on the Assembly's old codes, so there is now a discrepancy between the codes for central and local government. DOE may need to review that in the future to ensure a consistent approach for all public representatives in Northern Ireland. I support the motion.

Alastair Ross (DUP, East Antrim)

I want to record my gratitude to the Chairman of the Committee for acknowledging the work that I did in my time as Chair. I had the privilege of chairing the Committee from 2011 until December 2014, but I have also sat on the Committee since first entering the House in 2007. I approached the inquiry with some knowledge of the difficulties that there were with the old code of conduct and the opportunities that were presented to make a better code of conduct. The review of the code that was undertaken by the Committee was, as other Members have said, incredibly comprehensive. I want to record my thanks to Tom Walker from Queen's University, who, I think, focused the minds of Members on how we could get a code that is both practical and enforceable.

We obviously spoke to our colleagues in the House of Commons, in the Scottish Parliament and the Welsh Assembly, but of course clerks talk to each other all the time, and any changes that happen are usually quite incremental and will follow suit across these isles. However, I think that it is also important that we look beyond the British Isles. I gave evidence to the European Union for the GRECO report and we also engaged with the US House of Representatives Committee on Ethics, the Senate Ethics Committee and the State of Maryland legislature. Those areas deal with different difficulties to those that we face. The rest of Great Britain does not experience the political nature of complaints that we have here in Northern Ireland. In the United States, the debate tends to be around the ethics surrounding financial donations, because of the amount of money that they spend in their election campaigns. I listened to Mr Rogers make that point around lobbying. Because there is so much regulation around lobbying in the States, because Senators and Congressmen and -women are spending millions and millions of dollars on a campaign, that is just not applicable here in Northern Ireland.

We have ended up with a new approach in the code of conduct. As other Members have said, it is a simplified code, boiling everything down to 21 rules, but I think that the most important aspect of this new code of conduct is the fact that there is a separation between the aspirational and enforceable elements of the code. Look at the Nolan principles on public life, which are well known and used in nearly every jurisdiction around the United Kingdom: who could disagree with selflessness, integrity, objectivity, accountability, openness, honesty and leadership? The difficulty for the Committee and indeed for the Commissioner for Standards is how to decide when a Member is being open or honest or objective. How do you know whether a Member is showing leadership? It is very difficult for Committee members or the commissioner to judge whether a Member has breached the code of conduct based on those principles. That is why I think that it is so important that the separation between the aspirational element and the enforceable element has been reinforced in this code. That will make it much easier for Committee members and the commissioner when determining whether Members have breached the code. As Mr McCann said, greater sanctions are now available. The opportunity to dock a Member's salary is something that we called for and has been delivered. It is also incredibly important.

Other aspects of the code are worth highlighting. The right to a private life has been mentioned. It is important that Members are enabled to have a private life. In most cases, the code would not apply to it, nor would that be in the public interest. Freedom of speech is also hugely important. When we talked to politicians in the US, they laughed at some of the complaints we receive here in Northern Ireland on comments that Members have made. Indeed, as the Chairman of the Committee highlighted in his opening comments, article 10 of the European Convention on Human Rights, the law governing freedom of speech, protects Members when using:

"a degree of immoderate, offensive, shocking, disturbing, exaggerated, provocative, colourful, emotive"

language. That may be a challenge to some of us at times, particularly when Members say something that we do not like; but we have to recognise that they have the right to say it, and as long as their comments are lawful, they should be able to make them.

I conclude on two points. One of the difficulties we have faced in Northern Ireland is politically motivated complaints. We have far more complaints by MLAs against other MLAs than anywhere else in these islands. The most unfortunate thing is that a complaint by one MLA against another is nearly always accompanied by a press release. That is an abuse of the system and something we really need to get to grips with.

Finally, Ms Lo made reference to the councillors' code of conduct. It was unfortunate that the Environment Minister went on ahead with his code of conduct, rather than talking to the Committee on Standards and Privileges and trying to develop codes in parallel, which might have delivered much more clarity and a better system of conduct regulation at both council and Assembly level.

I recommend the code to the House.

Robin Newton (DUP, Belfast East)

I too rise in support of the code. I open my remarks by paying tribute to the Committee staff, who have, in my short time on the Committee, done an excellent job. They have been diligent in their work; they have been excellent in their communication; and they have offered excellent advice to the Committee. I also thank Jimmy Spratt, who has been Chair since I joined the Committee and, indeed, Alastair Ross for the work he has done.

I would like to take a slightly different tack. Rather than delve into aspects of the work that has been done, I will talk about the need, or the perceived need, for the work to be done. Let us remember that this is a review of the code of conduct and that the Assembly already had a code of conduct in operation, which it willingly undertook to review. One might see that as moving towards what is regarded in other areas of work as professional standards. That is to be welcomed. We all use the word — a very important, very small, but very significant word — "trust". People put their trust in politicians at election time, and they look to politicians and this House for good conduct and, indeed, to set an example, both in the Chamber and in the environs of the House, not forgetting that MLAs and politicians from all backgrounds have a private life. Indeed, good guidance has been given in the code on how that should be separated out.

The code offers greater clarity to MLAs and provides for a greater ability to scrutinise the openness and transparency of the work of MLAs. It also recognises that freedom of expression is absolutely necessary in public life, but it does not allow MLAs to step across a boundary.

They have to be, within the code of conduct, more accountable for their behaviour or actions. Indeed, within the 21 points and 11 principles, stronger action can be taken against an MLA who is adjudged to have broken the rules.

In two particular areas, there is use of the word "gifts". I have to say that I do not think that anybody has ever offered me a gift, but, anyway, where there are gifts, the public expect a standard. It is quite obvious, particularly in your role, Mr Speaker, where gifts are given to the Assembly —

Mitchel McLaughlin (Speaker, South Antrim)

Robin, I am getting sensitive about this.

Robin Newton (DUP, Belfast East)

I am going to welcome the fact that there are two display cabinets where gifts that are given to the Assembly are put on display and are recorded as such. Those are not gifts to the individual post holder but to the Assembly itself. That principle needs to be included in all aspects of life.

I will end with these few remarks. The public expect integrity from their politicians and expect politicians to behave in a manner that is perceived to be professional, whether in the Chamber, in Committees, in the public domain or through the conduct of office staff. They expect that professional standard. What we have got in the review of the code of conduct helps us to move in that direction.

Jim Allister (Traditional Unionist Voice, North Antrim)

At the outset, I associate myself with the condolences expressed upon the passing of Mr Hanna. He is the husband of a much-valued and very effective councillor in my constituency, Councillor Joan Baird, and my thoughts are very much with her at this very difficult time.

I wish to focus on a certain part of the report, but, before I do that, I want to make a couple of comments.

It is all very good, but part of the issue that can subvert and circumvent the work of the Standards and Privileges Committee and the commissioner is the misuse of the petition of concern. That further drags down the credibility of the situation. When there is a complaint, and a finding by the commissioner or the Committee that is adverse to the Member and perhaps a recommendation for censure, his or her friends and colleagues, if he is from one of the big parties with the capacity to do it, gather round as a human shield to protect him from the censure. That totally undermines the independence and effectiveness of the supposed system of protecting the standards and privileges of the House. We have seen it in the past, and we may well see it again in the not-too-distant future, maybe even next week. It is an abuse of the petition of concern.

When the Procedures Committee, upon which I serve, comes to look at some of these matters, it could do well to make a move to exempt the use of petitions of concern on matters of conduct in the Standards and Privileges Committee. That needs to be looked at, because it really makes a mockery of the system.

The main point I want to make relates to paragraphs 69 to 80, which point out that, in contrast to the holding of Members to account, there is a total lacuna in the ability to hold Ministers to account. Although there is a ministerial code, there is no methodology to enforce that code. The report rightly, though a little timidly, draws attention to that and suggests:

"the Executive should agree to introduce an independent process to investigate complaints which allege that a Minister has failed to observe the Pledge of Office".

Alastair Ross (DUP, East Antrim)

I thank the Member for giving way. He will, of course, acknowledge some of the difficulties with enforcing a ministerial code of conduct because of the composition of our Government. The mechanism for ensuring that the ministerial code of conduct is adhered to is the court system, and we have seen Ministers who have breached the ministerial code of conduct being sanctioned by the courts. There is therefore a mechanism in place to enforce the code of conduct, but it happens to be the court system rather than within government.

Mitchel McLaughlin (Speaker, South Antrim)

The Member has an extra minute.

Jim Allister (Traditional Unionist Voice, North Antrim)

Thank you. The point that I was making is that there is no mechanism and no compulsion to investigate a breach of the ministerial code. That is made very clear in some answers that I received from the First Ministers, to the effect that no mechanism exists and that they have no plans to bring in such a mechanism, whereas in paragraph 77, the report quite rightly suggests that there should be an "independent process to investigate complaints".

That seems to me to be quite incongruous. When there is a complaint made against a Member, as a Member, the Commissioner for Standards will investigate, bring forward his report and interview whomever. There is a proper, due process of investigation. When, however, you have an abuse of the process, such as we had by Minister McCausland as found in the Red Sky case, there is no mechanism to investigate and therefore no path to censure. It is an obvious gap in credibility for the operation of the Assembly that there is no means by which to investigate the alleged actions of Ministers if they fall foul of the ministerial code of conduct.

That is a gaping flaw in the system, which adds to the downward spiral in the credibility of the institutions. Although I welcome the fact that the Committee put its finger on that, the burden is now on the Executive, and the Office of the First Minister and deputy First Minister in particular, to do something about it and to instigate a proper procedure. At the moment, Mr Ross says, "The courts, yes. You can go to the court and ask for a declaration if there has been a breach of the ministerial code". The only other mechanism is that it be brought to the Assembly, either by the First Ministers jointly moving it, which, when most of our Ministers come from their parties, is unlikely to happen —

Mitchel McLaughlin (Speaker, South Antrim)

The Member's time is almost up.

Jim Allister (Traditional Unionist Voice, North Antrim)

— or by 30 Members of the House. The opportunity to investigate properly before you get to that point does not exist, and that is a fatal flaw in the procedures.

Steven Agnew (Green, North Down)

At the outset, I thank the Chair and the Committee staff for their diligent work on this, as well as the former Chair, Alastair Ross, who I know approached the review with a genuine commitment and desire to improve the working of the code and the standards of Members. I believe that the outcome is that we have a better, clearer code.

An issue that I raised about a number of investigations is the need for help for complainants to understand the code better. I often felt that the complainant was required to be an expert to make a complaint, and that should not be the case. A clearer code can only assist the public and, indeed, those politicians who are bound by it. Hopefully, this clearer code, with its guide, can discourage some of the erroneous complaints that other Members referred to, and, hopefully, we can reduce the number of inadmissible complaints. Sometimes, genuine complaints are made that are inadmissible, but I feel that, too often, complaints are made for political purposes, and I hope that we will move away from that.

The one issue on which I will place on record my discontent is the scope of the code. We have heard about the importance of the separation between our role as an MLA and our private life, which is a proper distinction to make. In our discussions, we talked about being out for a family meal etc, which should be treated as private time and should not be covered by the scope of the code. However, there is a third category, which I urged the Committee to include; it is referred to in the report as "reasonably presumed". I would be even more explicit and say that it should apply when a Member is acting in a political capacity. In our discussions, I used the example of attending or speaking at a political rally. I think it is reasonable that the public can expect the high standards that we have placed in the code of any MLA who speaks in public in a political capacity. It might be as a party representative, but I believe that those are areas that should be covered by the scope of the code.

John McCallister (UUP, South Down)

I am grateful to the Member for giving way. Does he accept that, in acting in such a capacity, you are unlikely, if you are not an MLA, to be asked to speak? Therefore, the code should, of course, cover your actions at such an event.

Mitchel McLaughlin (Speaker, South Antrim)

The Member has an extra minute.

Steven Agnew (Green, North Down)

I thank the Member for his intervention. That is a point that I make sometimes when I am being interviewed. If I am asked what I personally think, I reply that, if I was not speaking as a representative of a party or as an MLA, the interviewer would not be asking for my views. The views that I give are my political ones. It is important that Members who attend political events should conduct themselves with the levels of integrity and respect that are outlined in the code.

Mr Allister mentioned the ministerial code. The Committee was limited in what it could do. We have written to the First Minister and the deputy First Minister and included in our report the recommendation that there should be a process of investigation. That is right, because the line is often used that there is one rule for some and another rule for others. We have a situation where there are 21 rules for Members and none for Ministers because the ministerial code could be perceived to have been breached on a number of occasions without an independent investigation or a process.

Members of the public and, indeed, some MLAs have written to the Committee about breaches of the ministerial code, but we have had to write back to say that we cannot act and can only treat them as inadmissible complaints. In many cases, there are good reasons behind the complaints but we cannot refer them to another process. We have heard mixed views as to whether writing to the First Minister or the deputy First Minister is, in itself, a process. It appears that they take no responsibility for upholding the ministerial code or for its oversight. As has been pointed out, it has been left to the courts. It is a less than ideal situation that that is the only recourse. We should have a form of self-governance but, of course, the courts should be there as a final resort. As we do with the code for Members, we should have an independent investigation and a process that is clear and coherent to the public.

Mitchel McLaughlin (Speaker, South Antrim)

The Member's time is up.

Steven Agnew (Green, North Down)

It is unfortunate that that is not in place.

John McCallister (UUP, South Down)

I will be very brief. At the outset, I associate myself with the remarks about the late Councillor John Hanna. I knew John very well. I fought my first election campaign in the Knockiveagh ward alongside John so I have many fond memories of him. He will be greatly missed by his party colleagues and his wife, Joan, and I extend to Joan my sincere sympathies at this very difficult time.

I am grateful to the current Chair, the previous Chair and the Committee for bringing the report forward. I have concerns about the issue of respect, mentioned in paragraphs 214 to 225. I feel that there is a gap in that that section does not include Members' staff or, indeed, party staff. That is one of the difficulties that we have here. It applies particularly to staff members of independent Members like me or of smaller parties that maybe do not have the capacity, structure or HR experience to deal with complaints and in which, effectively, there is nowhere for a staff member to go. I would like that to be looked at. Mr Speaker, I wrote to your predecessor about this to see whether we could extend the scope, make sure that the Carecall process is looked at as an option and whether there could be some point of redress for members of staff of small parties or independent Members. Working for a Member is like working for a small business: you are effectively on your own. As a corporate body, we should have an overall responsibility. That needs to be looked at and grappled with.

It is worth supporting Mr Agnew's point about making a complaint and how difficult it is for a Member, a member of the public or a member of staff to make a complaint. It is important that it is not made unnecessarily difficult to have exactly the right language and to meet the standard, because we want this to be of value in upholding this institution and in ensuring that Members are rightly held up by the public as maintaining a high standard in public life. We also question how well equipped any individual commissioner is — not just the current commissioner — to deal with a very sensitive complaint.

Mr Allister made a point about breaching the ministerial code. I accept Mr Ross's point that it is up to a court, but the ministerial code can sometimes be viewed in the same way as ASBOs used to be viewed. It is almost a badge of honour to be accused of breaching the ministerial code when it should be seen as being slightly more serious. Nearly all Ministers seem to have breached the code at some point, regardless of whether they were taken to court. We must have a code that actually means something. That was Mr Allister's driving point, and I concur with it.

Jimmy Spratt (DUP, Belfast South)

I thank those who took part in the debate, which has largely been positive. That reflects the constructive and consensual manner in which the Committee carried out the review. The Committee has asked the Assembly to agree the new code. I welcome the apparent support for it across the Chamber. However, the Committee has also made further recommendations, so, before I reflect on the points made during the debate, I will address some of those other issues.

I want to mention the guide to the rules. The Committee has agreed that some of the rules of conduct should be supported by more detailed requirements, revisions and guidance. The new guide to the rules, therefore, sets out such details for rules 4 to 8 of the code. Should it appear to the Committee in the future that any of the other rules in the new code would benefit from more provisions, it will table amendments to the guide for the Assembly’s approval.

Secondly, the Committee recommended that Standing Order 69, on Members' interests, be reviewed in light of the provisions of the new code and guide. The Committee has recommended that the new code and guide not come into effect until after such a review is complete.

The third issue that I want to mention is lobbying, which has caused significant concerns at other legislatures where some Members have clearly acted improperly when making representations on behalf of lobbyists. The Committee is satisfied that lobbying is a legitimate practice that is important for democracy and policymaking. However, it should be managed well to ensure transparency to the public, who need to be assured that undue weight is not given to the power of money behind the scenes. No one should be under the impression that it is necessary to employ the services of a lobbyist to make their views known or gain access to Members.

The Committee is satisfied that the provisions of the new code and guide are sufficient to ensure that misconduct in relation to lobbying does not occur. However, we recognise the argument for, in addition to the mandatory requirements of the code and guide, good practice guidance for Members and their staff when dealing with lobbyists. The Committee has, therefore, agreed 'Guidance for Members on Dealing with Lobbyists', which is included at annex 2 of our report. The Committee also recommended that OFMDFM give consideration to whether a register of lobbyists in Northern Ireland would be appropriate or beneficial.

I now turn to some of the comments made by Members during the debate. Fra McCann pointed out that we welcomed the Independent Financial Review Panel's intention to include in its determination for the fifth Assembly mandate a provision for reducing the salary of a Member by 90% for a period during which that Member is imprisoned. Seán Rogers referred to the GRECO report on preventing corruption in legislatures, and our report takes full account of its recommendations.

Anna Lo and Sandra Overend referred to the number of inadmissible complaints received, and we hope that the new clearer code will reduce the number of those complaints in future. The greater clarity in the code is for Members and the public.

The former Chair, Alastair Ross, spoke about some of the problems that we had with the current code, problems that arose from ambiguities in drafting and the lack of separation of aspirational principles and enforceable rules. The new code clearly addresses that and spells it out that, while the principles are important, they are not enforceable.

My colleague Robin Newton spoke about the trust that is key to the integrity of this institution, and we believe that the new code will enhance trust in standards at the Assembly.

Mr Allister raised two issues, both of which have nothing to do with the conduct of Members. He spoke about petitions of concern, Mr Speaker, but that is not a matter that the Committee could or should address as part of the review. That is, of course, a matter for the Assembly and you as Speaker to decide on. He also raised the ministerial code. Today, we are debating the code of conduct for Members, not the ministerial code.

Jim Allister (Traditional Unionist Voice, North Antrim)

Will the Member give way?

Jimmy Spratt (DUP, Belfast South)

I am not sure. I have really heard enough from you, but I will give way just this once.

Jim Allister (Traditional Unionist Voice, North Antrim)

I am a little puzzled, because 12 paragraphs of the report deal with the very subject that I raised: the application of codes to Ministers. It is rather disingenuous to suggest that I raised something that had nothing to do with the report when the report itself has a recommendation in paragraph 77 touching on that very issue.

Jimmy Spratt (DUP, Belfast South)

Of course it is not disingenuous, Mr Speaker. The Member could have raised those issues, but he did not provide any feedback to the Committee at an earlier stage in relation to any it. He was obviously asleep at the steering wheel at the time the Committee sent out.

Jim Allister (Traditional Unionist Voice, North Antrim)

At least I know what is in the report.

Mitchel McLaughlin (Speaker, South Antrim)

Order.

Jimmy Spratt (DUP, Belfast South)

Yes, it is in the report, but it also very clearly points out that it is a matter for the Executive in relation to the ministerial code, and that is where the issue lies. It is for the First Minister and the deputy First Minister to make any changes necessary; it is not within the power of the Committee to do that in the code.

Steven Agnew spoke about the application of the code to circumstances where it was unclear in what capacity a Member was acting. However, the code will apply in such circumstances, unless it is clear that a Member was acting exclusively in another capacity.

Mr McCallister raised the issues of Members acting with respect and Members' treatment of their staff. That is more complicated because, ultimately, such behaviour could become the subject of an employment tribunal. The Committee has therefore agreed that it will amend its direction to the commissioner so that he will not investigate complaints that should be properly resolved in another statutory or official forum. However, Mr McCallister may wish to read the Hansard report of the Committee's session with the Clerk to the Assembly/Director General of the Assembly, when it was briefed on the extension of the Carecall welfare service to Members and their staff and the potential for grievance procedures and employment tribunals.

When the Committee on Standards and Privileges commenced the review, it said that it ultimately wanted to produce a new draft code of conduct that was

"relevant, appropriate, comprehensive, well-structured, clear and enforceable";

gives

"confidence to the public about the probity of the Assembly and the accountability of its Members";

and which is

"proportionate and reasonable in the requirements it places upon Members".

The Committee has done that unanimously and in cooperation with the commissioner, having undertaken a careful, detailed consideration of a wide range of issues. The new code establishes the principles of conduct expected from all Members, sets the rules of conduct that flow from these standards and provides openness and accountability to ensure public confidence in the standards of the Assembly. On behalf of the Committee on Standards and Privileges, I ask the Assembly to agree the new code and guide.

Question put and agreed to. Resolved:

That this Assembly notes the report of the Committee on Standards and Privileges on the Review of the Northern Ireland Assembly Code of Conduct and the Guide to the Rules Relating to the Conduct of Members [NIA 178/11-16]; agrees to the new code of conduct and guide to the rules set out in annex 1 of the report; and further agrees to the other recommendations contained within the report.

Executive Committee Business

Mitchel McLaughlin (Speaker, South Antrim)

Minister, this is my first opportunity to congratulate you on your appointment, so congratulations.

Jonathan Bell (DUP, Strangford)

Thank you, Mr Speaker, for those congratulations. I beg your indulgence to be associated with the sympathy that has been expressed in the House for Councillor John Hanna. I was with him on Thursday evening in Scarva. He had a love for the area that he had represented for over two decades and the people of the area had a love for him. He was a fine Christian man, and our deepest sympathy goes out to his family circle.

I beg to introduce the Credit Unions and Co-operative and Community Benefit Societies Bill [NIA 56/11-16], which is a Bill to make provision about credit unions and cooperative and community benefit societies and for connected purposes.

Bill passed First Stage and ordered to be printed.

Mitchel McLaughlin (Speaker, South Antrim)

This item may not proceed, as the Second Stage of the Bill has not yet been agreed. A revised Order Paper will issue for a sitting tomorrow which will include the Second Stage of the Bill, and the Consideration Stage will be scheduled by the Business Committee following notification from the Executive.

Mitchel McLaughlin (Speaker, South Antrim)

I call the Minister of Enterprise, Trade and Investment, Mr Jonathan Bell, to move the Consideration Stage of the Insolvency (Amendment) Bill.

Moved. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Mitchel McLaughlin (Speaker, South Antrim)

Members will have a copy of the Marshalled List of amendments detailing the order for consideration. The amendments have been grouped for debate in my provisional grouping of amendments selected list. There are two groups of amendments, and we will debate the amendments in each group in turn. The first debate will be on amendment Nos 1 to 11, 13 to 35, and 47 to 50, which are technical amendments.

The second debate will be on amendment Nos 12 and 36 to 46, which deal with recognised professional bodies and authorisation of insolvency practitioners. I remind Members intending to speak during the debates on the two groups of amendments that they should address all the amendments in each group on which they wish to comment. Once the debate on each group is completed, any further amendments in the group will be moved formally as we go through the Bill, and the Question on each will be put without further debate. The Questions on stand part will be taken at the appropriate points in the Bill. If all that is clear, we shall proceed.

No amendments have been tabled to clauses 1 and 2. I propose, by leave of the Assembly, to group these clauses for the Question on stand part.

Clauses 1 and 2 ordered to stand part of the Bill.

Clause 3 (Requirements relating to meetings)

Mitchel McLaughlin (Speaker, South Antrim)

We now come to the first group of amendments for debate. With amendment No 1, it will be convenient to debate amendment Nos 2 to 11, 13 to 35 and 47 to 50, which are technical amendments, including an amendment to modify Assembly control of subordinate legislation.

Jonathan Bell (DUP, Strangford)

I beg to move amendment No 1:

In page 5, line 30, leave out "at year’s end". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

The following amendments stood on the Marshalled List:

No 2: In page 5, line 31, leave out from "in" to "year," on line 32. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 3: In page 6, line 5, leave out "at year’s end". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 4: In page 6, line 6, leave out from "If" to "year," on line 7. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 5: In page 6, line 20, leave out "at year's end". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 6: In page 6, line 23, leave out "at". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 7: In page 6, leave out line 24. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 8: In clause 11, page 9, line 38, leave out subsection (3) and insert

"(3) No order may be made under subsection (2) containing provision which amends or repeals a provision of an Act of Parliament or Northern Ireland legislation unless a draft of the order has been laid before, and approved by resolution of, the Assembly.

(4) Any other orders under subsection (2) are subject to negative resolution.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 9: In clause 13, page 10, line 9, at end insert

"(za) in the words before sub-paragraph (a), after “service” insert “on the bankrupt”;". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 10: In clause 13, page 10, line 15, leave out the first "the". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 11: In clause 13, page 10, line 16, after "Article" insert

"(and whether before or after service on the bankrupt of a notice under this Article)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 13: In clause 14, page 11, line 15, after "authorised" insert

"to act as an insolvency practitioner in relation to companies". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 14: In clause 14, page 11, line 15, after "may" insert "nonetheless". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 15: In clause 14, page 11, line 16, leave out "as an insolvency practitioner". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 16: In clause 14, page 11, line 17, leave out "or an individual". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 17: In clause 14, page 11, line 18, leave out "or individual". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 18: In clause 14, page 11, line 20, at end insert

"(1A) A person who is partially authorised to act as an insolvency practitioner in relation to individuals may nonetheless not accept an appointment to act in relation to an individual if at the time of the appointment the person is aware that the individual?—

(a) is or was a member of a partnership other than a Scottish partnership, and

(b) has outstanding liabilities in relation to the partnership.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 19: In clause 14, page 11, line 21, after "authorised" insert

"to act as an insolvency practitioner in relation to companies". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 20: In clause 14, page 11, line 21, after "may" insert "nonetheless". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 21: In clause 14, page 11, line 22, leave out "as an insolvency practitioner". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 22: In clause 14, page 11, line 23, leave out "or an individual". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 23: In clause 14, page 11, line 23, leave out from second "or" to "individual" on line 24. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 24: In clause 14, page 11, line 28, at end insert

"(2A) Subject to paragraph (7), a person who is partially authorised to act as an insolvency practitioner in relation to individuals may nonetheless not continue to act in relation to an individual if the person becomes aware that the individual?—

(a) is or was a member of a partnership other than a Scottish partnership, and

(b) has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the High Court.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 25: In clause 14, page 11, line 29, leave out "the" and insert "a". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 26: In clause 14, page 11, line 29, after "act" insert

"for the purposes of paragraph (2) or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 27: In clause 14, page 11, line 32, after "(2)" insert "or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 28: In clause 14, page 11, line 38, after "company," insert "this Article or, if it applies,". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 29: In clause 14, page 11, line 38, leave out from "or" to "Article" on line 39. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 30: In clause 14, page 11, line 40, after "individual," insert "this Article or, if it applies,". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 31: In clause 14, page 11, line 40, leave out from "or" to "Article" on line 41. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 32: In clause 14, page 11, line 43, leave out "paragraph (1) or (2)" and insert "any of paragraphs (1) to (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 33: In clause 14, page 12, line 1, after "(2)" insert "or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 34: In clause 14, page 12, line 4, leave out "paragraph (2)" and insert "the paragraph". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 35: In clause 14, page 12, line 13, after "(2)" insert "or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 47: In schedule 2, page 18, line 15, at end insert

"3A. In Article 14(2), omit “or authorised to act as nominee,”.

3B. In Article 15(4), omit “, or authorised to act as nominee,”.

3C. In Article 17(2), omit “or authorised to act as nominee,”.

3D. In Article 20(5), omit “or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 48: In schedule 2, page 18, line 28, at end insert

"12A. In Schedule A1?—

(a) in paragraph 38(1), omit “, or authorised to act as nominee,”;

(b) in paragraph 41(2), omit “, or authorised to act as nominee,”;

(c) in paragraph 43(1), omit “, or authorised to act as nominee,”;

(d) in paragraph 49(6), omit “, or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 49: In schedule 3, page 19, line 42, in second column, at end insert

"In Article 14(2), the words “or authorised to act as nominee,”.

In Article 15(4), the words “, or authorised to act as nominee,”.

In Article 17(2), the words “or authorised to act as nominee,”.

In Article 20(5), the words “or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 50: In schedule 3, page 20, line 29, in second column, at end insert

"In Schedule A1—

(a) in paragraph 38(1), the words “, or authorised to act as nominee,”;

(b) in paragraph 41(2), the words “, or authorised to act as nominee,”;

(c) in paragraph 43(1), the words “, or authorised to act as nominee,”;

(d) in paragraph 49(6), the words “, or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Jonathan Bell (DUP, Strangford)

First, I will explain that there are an unusually large number of Government amendments — 50 in all — which extend over several pages. There are two main reasons for that. The first is that some of the Bill's provisions replicate provisions in the Deregulation Act 2015, made at Westminster in March. Amendments to those provisions are required as they were drafted using early versions of the Bill which became the Deregulation Act 2015, not the Act itself, and there are minor differences between the two.

The second reason is the request made during the Second Stage debate to have provision for more stringent regulation of insolvency practitioners included in this Bill. There is provision for that in the Westminster Small Business, Enterprise and Employment Act 2015, and it had originally been intended to include corresponding provision for Northern Ireland in a further Bill to amend insolvency law, to be made during the lifetime of the next Assembly. In view of the Member’s request, an amendment has been provided to provide for its inclusion in the current Bill instead.

The amendments to clauses 11, 13 and 15 and the amendments that insert new clauses 14A to 14H and schedule A1 have all been agreed by the Enterprise, Trade and Investment Committee. The other proposed amendments were considered by the Committee on 19 May 2015; the Committee had no comments on those. I thank the Committee Chair and members for their helpful and very thorough scrutiny of the Bill. As some of the amendments involve policy changes, Executive approval was sought to all 50. The Executive agreed them when they met on 28 May 2015. I will try to explain each of the amendments as briefly as possible.

Each of the 50 amendments amends the Insolvency (Northern Ireland) Order 1989, which I will hereafter refer to as "the Insolvency Order". There are a total of 27 amendments in group 1. There are seven amendments to clause 3, which, in turn, amends articles 79 and 91 of the Insolvency Order.

Amendments Nos 1 and 3 remove the words "at year’s end" from the title to each article. Amendments Nos 2 and 4 remove references in each article to the winding-up of a company continuing for more than one year. Amendment Nos 5, 6 and 7 remove the words "at year’s end" from the description of offences relating to the failure of a liquidator to send progress reports.

The combined effect of those seven amendments is to remove any stipulation for when progress reports have to be issued in members’ and creditors’ voluntary liquidations, leaving it as a matter to be prescribed solely in subordinate legislation.

Amendment No 8 is to clause 11. The amendment changes the type of Assembly control required for orders made under this provision, which amend or repeal provisions in subordinate legislation to negative resolution. I have agreed to that amendment as a consequence of a recommendation made to the Enterprise, Trade and Investment Committee by the Examiner of Statutory Rules. I thank the Committee for drawing the matter to the Department’s attention, and I also thank the Examiner of Statutory Rules for his suggestion, which I am happy to accept.

Amendment Nos 9, 10 and 11 are to clause 13. All three are required as a result of the minor differences that I mentioned between initial drafts of the Westminster Deregulation Bill and the resulting Act.

Amendment No 9 relates to the service of a notice on a bankrupt claiming property. It clarifies that a trustee in bankruptcy does not have any rights against a third party who has bought the property for a fair price if they did not know about the bankruptcy.

Amendment No 10 corrects a minor error by removing the word "the" where it had been incorrectly used in a new paragraph inserted into article 280.

Amendment No 11 clarifies that a trustee in bankruptcy is not to have any recourse against a bank that has made a payment out of a bankrupt’s account unless he had served notice on the bank, claiming the money before the bank paid it out.

Amendments Nos 13 to 36 are all to clause 14. They relate to restrictions on partially authorised insolvency practitioners acting for members of a partnership. They are required as a result of differences in the way they are set out between the initial drafts of the Westminster Bill, which became the Deregulation Act 2015, and in the Act itself. No changes to policy are involved.

Partially authorised insolvency practitioners are authorised to act in either corporate or individual insolvencies but not in both. Clause 14, as introduced, included a ban on a partially authorised insolvency practitioner acting in relation to members of a partnership. The amendments break the application of this ban down in terms of whether the practitioner is authorised to deal with company or individual cases.

Amendment Nos 13 to 24 bring provision restricting partially authorised insolvency practitioners from acting for individual or corporate members of a partnership into line with equivalent provisions applying in Great Britain. Amendment No 25 corrects a minor grammatical error in clause 14. Amendment Nos 26 and 27 are consequential on amendment Nos 13 to 24. Amendment Nos 28 to 31 correct errors in clause 14 by recognising that article 143(5B) and article 276(2C) of the Insolvency Order do not apply in all cases where a company or an individual is a member of a partnership.

Amendment Nos 32 to 35 are consequential on amendment Nos 13 to 24. Amendment Nos 47 to 50 remove references in the Insolvency Order to being authorised to act as nominee or supervisor. These references need to be removed because article 348A of the Order, which provided for authorisation to act as a nominee or supervisor in relation to voluntary arrangements, is repealed by the Bill.

Mr Speaker, I am sure that you are glad to hear that this concludes what I have to say about the amendments in group 1.

Mitchel McLaughlin (Speaker, South Antrim)

I could not possibly comment on that.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

Go raibh maith agat, a Cheann Comhairle. Agus mo bhuíochas leis an Aire chomh maith. I thank the Minister. I will speak on the 36 technical and consequential amendments in group 1.

The Committee welcomes the Insolvency (Amendment) Bill, which is intended to update insolvency legislation that was made before the advent of modern methods of electronic communication. The Bill was referred to the Committee on 10 November 2014. The Committee sought an extension to the Committee Stage to 13 March 2015 to ensure sufficient time to effectively scrutinise the Bill. The Committee reported on the Bill on 3 March 2015.

I would like to record the Committee’s thanks to those who provided written submissions and oral evidence during the Committee Stage. I would also like to thank the new Minister and, I am sure he will forgive me for saying so, his predecessor for her involvement. I especially thank the officials, and I put on the record that, for me, coming into an area that I did not know an awful lot about, they were very informative. They kept us right and did keep us well-briefed on all aspects of the Bill and the legislation that we were dealing with. It was a very positive engagement throughout, both in pre-legislative scrutiny and in the course of the Committee Stage.

Clause 3 provides for the removal of the requirement for annual meetings in a members’ voluntary and a creditors’ voluntary winding up. The Bill introduces provisions at clause 3 for the requirement to hold a meeting to present progress reports in voluntary winding-up procedures to be replaced by a requirement to issue a report on progress. This is intended to reduce the cost of holding meetings that are poorly attended or not of any benefit.

If the resolution for voluntary winding up was passed before the day on which the law comes into place, the old rule applies. If it is after that, the new rule applies. This raised issues for some stakeholders in that all open members’ voluntary liquidations (MVLs) and creditors’ voluntary liquidations (CVLs) will continue to require annual meetings to be held. In practice, this will mean that insolvency practitioners will need to operate the legacy legislation and the amended legislation concurrently on their portfolios of cases. It was felt that it would be more cost-effective for the insolvency profession generally, and therefore result in improved returns to creditors, if the requirement for annual meetings were to be abolished for all MVLs and CVLs rather than only those commencing after the date on which the legislation comes into operation.

The Committee explored that option, but, following consideration, agreed that, where procedure is already under way, those involved would expect the case to be conducted in accordance with the existing law. The Committee agreed that it would be bad practice for any party to be confronted by a different procedure from the one that they had expected and started off with at the outset of the case. The Committee was therefore content with clause 3 as drafted.

Following Committee Stage, the Department informed the Committee of additional amendments to clause 3, which remove unnecessary and misleading references to progress reports in voluntary liquidations. The Committee had not been given time to consider and agree the amendments at Committee Stage, so they were noted by the Committee.

Clause 11 deals with deeds of arrangement. The Examiner of Statutory Rules advised the Committee that the Department may wish to amend the clause — indeed, the Minister referred to the Examiner earlier — so that orders making consequential amendments to and repeals of primary legislation would be subject to draft affirmative resolution, while consequential amendments to and revocations of subordinate legislation would be subject to the negative resolution. The Department agreed and brought the amended clause 11 to the Committee during Committee Stage. The Committee was content with clause 11 as amended and with the wording of the proposed amendment.

Clause 13, concerning the after-acquired property of a bankrupt, provides protection to banks around property that comes into the ownership of bankrupts before they are discharged; that is, after-acquired property. That will encourage banks to offer basic banking services to undischarged bankrupts, as it removes any reason for them not to do so.

In his response to the Committee's call for evidence, the chairperson of the Chancery and Probate Liaison Committee raised a number of drafting issues. In its response to the Committee on the matter, the Department acknowledged the issues raised and outlined how they would be addressed at Consideration Stage. Having had sight of the proposed amendments during Committee Stage, the Committee was content with clause 13 as amended and with the wording of the proposed amendment.

Clause 14, on authorisation of insolvency practitioners (IPs), includes provisions for the option for an insolvency practitioner to be authorised solely in a personal or corporate capacity, whereas, under current legislation, it is only possible to be authorised for both. Departmental officials informed the Committee that the proposed changes will make it easier for people to become insolvency practitioners. They will not have to study both areas. For example, a debt adviser may wish to qualify as an IP and work for individuals but may not be interested in acting as an IP for companies. There would be no point in such a person studying and taking examinations in how to deal with company affairs.

Concern was raised, however, in the industry that the proposals would have a negative impact on businesses and individuals seeking financial advice, as lines might be blurred, resulting in a negative impact on the quality of advice from insolvency practitioners, leading to increased costs and delays. Reservations were also expressed about dealing with partnerships under a partial authorisation regime. The Department assured the Committee that the Bill will require IPs to be authorised fully to act when it comes to partnerships.

The Department assured the Committee that IPs would be free to become authorised in either personal or company cases, or both. If there is any doubt about whether a particular case fits into one or other category, a short interview with the person concerned should establish the facts of the case and whether there is a partnership involved or potential company issues.

In answer to concerns expressed about the introduction of partial authorisation, the Department informed the Committee that, having taken legal advice on the matter, it has no alternative except to go along with what is being done in GB. Officials informed the Committee that Northern Ireland cannot opt out of bringing in partial authorisation, because the advice that they got was that there is a requirement to comply with the EU services directive. The UK would be in breach of that directive if the North did not bring in partial authorisation. Someone who is partially authorised in GB under the Westminster Deregulation Act 2015 is entitled to practise on the same basis in Northern Ireland. On that basis, the Committee was content with clause 14 as drafted.

The Minister subsequently wrote on 15 May to inform the Committee that the Insolvency Service in GB has advised that it does not now intend to bring the provision forward in that way but will instead make the case that the present system is sufficient to comply with the requirements of the EU services directive. As this and other amendments to clause 14 were not considered by the Committee until after Committee Stage, the amendments were noted by the Committee.

Following Committee Stage, the Department informed the Committee of amendments to schedules 2 and 3 that would be brought at Consideration Stage to repeal references to being authorised to act as a nominee or supervisor. As the Committee had not been given time to consider and agree the amendments at Committee Stage, those amendments were also noted by the Committee. That concludes my comments on this group, a Cheann Comhairle.

Gordon Dunne (DUP, North Down)

I welcome the opportunity to speak on the Consideration Stage of the Insolvency (Amendment) Bill. Insolvency is a very complex and technical issue, as we all appreciate. I commend all who have been involved in the Bill for their substantial work to date, the staff of the Committee for Enterprise, Trade and Investment and DETI officials.

Unfortunately, insolvency has affected quite a number of businesses and organisations. Therefore, it is important that measures be put in place to make the process as simple and effective as possible to ensure that we have a modern, fit-for-purpose system in Northern Ireland and that the most efficient and effective system is in place for all those who are affected by insolvency either directly or indirectly. Many similar measures have already been introduced in England and Wales through the Legislative Reform (Insolvency) (Miscellaneous Provisions) Order 2010.

One of the Bill's main purposes is to allow for the electronic transfer of documents, which is a welcome step forward. The development that electronic documents will now have the same standing as hard-copy documents is a positive step that will, hopefully, help to improve insolvency processes. Other developments that authorise the use of websites to communicate reports electronically and the use of video conferencing and other types of remote meetings are further steps in the right direction.

The introduction of those measures should allow for more efficient communication and help to reduce delays in the completion of transactions involving insolvency cases. However, I feel that it is important that those without access to IT equipment are not put at a disadvantage by this process. Obviously, IT is the way forward and the vast majority of people now use it, but we cannot forget those who do not have the same level of access to it. I understand that provisions are in place to ensure that those who do not have electronic forms will not be disadvantaged at any stage of the process. I believe that those measures will help to streamline what is a difficult and technical process.

The Committee held a number of evidence sessions and a wide range of stakeholders were involved. There was general recognition that this was a progressive way to move forward. There are a number of issues that I wish to mention. Clause 3 deals with the removal of the requirement for annual meetings in a members' voluntary and a creditors' voluntary winding-up arrangement. Clause 13 provides protection to banks in relation to the property that comes under the ownership of a bankrupt organisation before it is discharged. Clause 14, which was mentioned by the Chair, includes changes that will make it easier for people to become insolvency practitioners, which should have a positive knock-on impact on the level of service that is provided. I welcome the progress at this stage of the Bill.

Sandra Overend (UUP, Mid Ulster)

At the outset, I apologise for having to deputise for Danny Kinahan MP MLA, who was party to the deliberations at the Committee Stage of the Bill. We make no apology, however, for implementing our manifesto pledge to end double-jobbing, which we are in the process of doing at this stage. I can inform the Assembly that the Member for South Antrim is at Westminster, doing the job that he was elected exclusively to do. I have spoken to Danny Kinahan and can confirm that he is content with both groups of amendments that have been put forward by the Department at Consideration Stage.

Clearly, it is a technical Bill about a highly technical subject. As such, it is unlikely to grab the attention of the media or the general public today, except, maybe, chartered accountants. Nevertheless, it is important legislation.

The Bill has progressed from public consultation through Second Reading, Committee Stage up to today's Consideration Stage, and it looks like it is a law that the legislative Assembly is shaping in a sensible and proper fashion, proving that, at times, the Assembly can do what it is meant to do: legislate.

On reviewing the Committee report on the Bill, I note that it was introduced to the Assembly on 7 October 2014. The Assembly debated the principles at Second Stage on 10 November, when the Bill was passed to the Committee for Enterprise, Trade and Investment. The Committee sought and received the approval of the Assembly in plenary session to extend its consideration and scrutiny of the Bill until 13 March this year. The Bill has 21 clauses and three schedules.

During Committee Stage, the Department informed the Committee that amendments would be needed, mainly as a consequence to changes to legislation under way at Westminster. That is why we have so many amendments today tabled by the Department. It is clear from the Chair's comments that the Committee is content with those amendments.

It is important that insolvency legislation in Northern Ireland is kept as far as possible in parity with that in England and Wales. Undoubtedly, insolvency legislation in both jurisdictions needed to be updated to allow for the use of modern means of electronic communication and to do away with certain procedures and requirements that had outlived their usefulness. We can all agree with the objective of making the administration of insolvencies faster, more efficient and less expensive by legitimising the use of up-to-date methods of communication and doing away with burdensome and unnecessary procedural requirements.

The guidance notes published with the Bill point out that there is no financial cost to the Government. In these cash-strapped times, that is important. In addition, it has been calculated that the Bill proposals could result in net savings of £2,275,000 for insolvency practitioners over the period it takes to deal with all insolvency procedures entered into in one year. It has been calculated that, over the same period, there would be savings of £19,000 for the Official Receiver, £2,800 for business and £23,740 for HMRC and the Northern Ireland Courts and Tribunals Service.

The Ulster Unionist Party is supportive of both groups of amendments.

Jonathan Bell (DUP, Strangford)

I am grateful to the Members who contributed to the debate on the group 1 amendments.

My Department operates on the principle that insolvency legislation should, as far as possible, be kept in parity with that in England and Wales. That ensures that those affected by insolvency are treated the same as they would be in England and Wales. It simplifies matters for creditors from outside Northern Ireland taking action over unpaid debt and saves insolvency practitioners in both jurisdictions from having to deal with different legislative codes.

To ensure that parity is maintained, it is normal practice to wait until after legislation for England and Wales is finalised before attempting to replicate it for Northern Ireland. On this occasion, there were measures in the Deregulation Bill, in progress at Westminster, that could not wait, such as those relating to partial authorisation of insolvency practitioners. The fact that that Bill has become an Act gives us the opportunity to see those provisions in their final form. That enabled us to draft amendments to the corresponding provisions in our Bill to ensure that they are fully in accord with the Westminster Act.

I want to thank some of the Members who spoke. I appreciate the Chair's welcome and the quite distinguished work undertaken by my predecessor, the Finance and Personnel Minister, Arlene Foster. I join him in thanking officials for the work that they have done. I thank the Chair and the Deputy Chair of the Committee for their competence, their attention to detail and the time that they gave to this series of pieces of work.

The Member for North Down Gordon Dunne was right to say that insolvency is an unfortunate act. We have to deal with the consequences, and we want this to be as fair and efficient as possible.

In conclusion, I thank Sandra Overend. She is right that there are a number of technicalities in the Bill, but the work is no less important because of the technicalities involved.

Amendment No 1 agreed to.

Mitchel McLaughlin (Speaker, South Antrim)

Amendment Nos 2 to 7 have already been debated and are technical amendments to clause 3. I, therefore, propose, by leave of the Assembly, to group these amendments for the Question.

Amendment No 2 made:

In page 5, line 31, leave out from "in" to "year," on line 32. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 3 made:

In page 6, line 5, leave out "at year’s end". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 4 made:

In page 6, line 6, leave out from "If" to "year," on line 7. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 5 made:

In page 6, line 20, leave out "at year's end". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 6 made:

In page 6, line 23, leave out "at". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 7 made:

In page 6, leave out line 24. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Clause 3, as amended, ordered to stand part of the Bill.

Mitchel McLaughlin (Speaker, South Antrim)

No amendments have been tabled to clauses 4 to 10. I propose, by leave of the Assembly, to group these clauses for the Question on stand part.

Clauses 4 to 10 ordered to stand part of the Bill.

Clause 11 (Deeds of arrangement)

Amendment No 8 made:

In page 9, line 38, leave out subsection (3) and insert

"(3) No order may be made under subsection (2) containing provision which amends or repeals a provision of an Act of Parliament or Northern Ireland legislation unless a draft of the order has been laid before, and approved by resolution of, the Assembly.

(4) Any other orders under subsection (2) are subject to negative resolution.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Clause 11, as amended, ordered to stand part of the Bill.

Clause 12 ordered to stand part of the Bill.

Clause 13 (After-acquired property of bankrupt)

Mitchel McLaughlin (Speaker, South Antrim)

Amendment Nos 9 to 11 have already been debated and are technical amendments to clause 13. I therefore propose, by leave of the Assembly, to group these amendments for the Question.

Amendment No 9 made:

In page 10, line 9, at end insert

"(za) in the words before sub-paragraph (a), after “service” insert “on the bankrupt”;". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 10 made:

In page 10, line 15, leave out the first "the". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 11 made:

In page 10, line 16, after "Article" insert

"(and whether before or after service on the bankrupt of a notice under this Article)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Clause 13, as amended, ordered to stand part of the Bill.

Mitchel McLaughlin (Speaker, South Antrim)

We now come to the second group of amendments for debate. With amendment No 12, it will be convenient to debate amendment Nos 36 to 46, which deal with recognised professional bodies and the authorisation of insolvency practitioners. Members will note that amendment Nos 44 and 46 are consequential to amendment No 43 and that amendment No 45 is consequential to amendment No 37.

Clause 14 (Authorisation of insolvency practitioners)

Jonathan Bell (DUP, Strangford)

I beg to move amendment No 12:

In page 10, line 28, leave out

"or section 390A of the Insolvency Act 1986 (authorisation)".

The following amendments stood on the Marshalled List:

No 36: In page 12, leave out from line 23 to line 21 on page 13 and insert

"350.—(1) The Department may by order, if satisfied that a body meets the requirements of paragraph (4), declare the body to be a recognised professional body which is capable of providing its insolvency specialist members with full authorisation or partial authorisation.

(2) The Department may by order, if satisfied that a body meets the requirements of paragraph (4), declare the body to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (as to which, see Article 349A(1)).

(3) Article 350A makes provision about the making by a body of an application to the Department for an order under this Article.

(4) The requirements are that?—

(a) the body regulates (or is going to regulate) the practice of a profession;

(b) the body has rules which it is going to maintain and enforce for securing that its insolvency specialist members?—

(i) are fit and proper persons to act as insolvency practitioners; and

(ii) meet acceptable requirements as to education and practical training and experience; and

(c) the body’s rules and practices for or in connection with authorising persons to act as insolvency practitioners, and its rules and practices for or in connection with regulating persons acting as such, are designed to ensure that the regulatory objectives are met (as to which, see Article 350C).

(5) An order of the Department under this Article has effect from such date as is specified in the order.

(6) An order under this Article may be revoked by an order under Article 350L or 350N (and see Article 361A(1)(b)).

(7) In this Part?—

(a) references to members of a recognised professional body are to persons who, whether members of that body or not, are subject to its rules in the practice of the profession in question;

(b) references to insolvency specialist members of a professional body are to members who are permitted by or under the rules of the body to act as insolvency practitioners.

(8) A reference in this Part to a recognised professional body is to a body recognised under this Article (and see Articles 350L(6) and 350N(5)).

Application for recognition as recognised professional body

350A.—(1) An application for an order under Article 350(1) or (2) must?—

(a) be made to the Department in such form and manner as the Department may require;

(b) be accompanied by such information as the Department may require;

(c) be supplemented by such additional information as the Department may require at any time between receiving the application and determining it.

(2) The requirements which may be imposed under paragraph (1) may differ as between different applications.

(3) The Department may require information provided under this Article to be in such form, and verified in such manner, as the Department may specify.

(4) An application for an order under Article 350(1) or (2) must be accompanied by?—

(a) a copy of the applicant’s rules;

(b) a copy of the applicant’s policies and practices; and

(c) a copy of any guidance issued by the applicant in writing.

(5) The reference in paragraph (4)(c) to guidance issued by the applicant is a reference to guidance or recommendations which are?—

(a) issued or made by it which will apply to its insolvency specialist members or to persons seeking to become such members;

(b) relevant for the purposes of this Part; and

(c) intended to have continuing effect,

including guidance or recommendations relating to the admission or expulsion of members.

(6) The Department may refuse an application for an order under Article 350(1) or (2) if the Department considers that recognition of the body concerned is unnecessary having regard to the existence of one or more other bodies which have been or are likely to be recognised under Article 350.

(7) Paragraph (8) applies where the Department refuses an application for an order under Article 350(1) or (2); and it applies regardless of whether the application is refused on the ground mentioned in paragraph (6), because the Department is not satisfied as mentioned in Article 350(1) or (2) or because a fee has not been paid (see Article 361A(1)(b)).

(8) The Department must give the applicant a written notice of the Department’s decision; and the notice must set out the reasons for refusing the application.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 37: After clause 14 insert

"Regulatory objectives

14A.—(1) After Article 350A of the Insolvency Order (inserted by section 14) insert?—

“Regulatory objectives

Application of regulatory objectives

350B.—(1) In discharging regulatory functions, a recognised professional body must, so far as is reasonably practicable, act in a way?—

(a) which is compatible with the regulatory objectives; and

(b) which the body considers most appropriate for the purpose of meeting those objectives.

(2) In discharging functions under this Part, the Department must have regard to the regulatory objectives.

Meaning of “regulatory functions” and “regulatory objectives”

350C.—(1) This Article has effect for the purposes of this Part.

(2) “Regulatory functions”, in relation to a recognised professional body, means any functions the body has?—

(a) under or in relation to its arrangements for or in connection with?—

(i) authorising persons to act as insolvency practitioners; or

(ii) regulating persons acting as insolvency practitioners; or

(b) in connection with the making or alteration of those arrangements.

(3) “Regulatory objectives” means the objectives of?—

(a) having a system of regulating persons acting as insolvency practitioners that?—

(i) secures fair treatment for persons affected by their acts and omissions;

(ii) reflects the regulatory principles; and

(iii) ensures consistent outcomes;

(b) encouraging an independent and competitive insolvency-practitioner profession whose members?—

(i) provide high quality services at a cost to the recipient which is fair and reasonable;

(ii) act transparently and with integrity; and

(iii) consider the interests of all creditors in any particular case;

(c) promoting the maximisation of the value of returns to creditors and promptness in making those returns; and

(d) protecting and promoting the public interest.

(4) In paragraph (3)(a), “regulatory principles” means?—

(a) the principles that regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and

(b) any other principle appearing to the body concerned (in the case of the duty under Article 350B(1)), or to the Department (in the case of the duty under Article 350B(2)), to lead to best regulatory practice.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 37: After clause 14 insert

"Regulatory objectives

14A.—(1) After Article 350A of the Insolvency Order (inserted by section 14) insert?—

“Regulatory objectives

Application of regulatory objectives

350B.—(1) In discharging regulatory functions, a recognised professional body must, so far as is reasonably practicable, act in a way?—

(a) which is compatible with the regulatory objectives; and

(b) which the body considers most appropriate for the purpose of meeting those objectives.

(2) In discharging functions under this Part, the Department must have regard to the regulatory objectives.

Meaning of “regulatory functions” and “regulatory objectives”

350C.—(1) This Article has effect for the purposes of this Part.

(2) “Regulatory functions”, in relation to a recognised professional body, means any functions the body has?—

(a) under or in relation to its arrangements for or in connection with?—

(i) authorising persons to act as insolvency practitioners; or

(ii) regulating persons acting as insolvency practitioners; or

(b) in connection with the making or alteration of those arrangements.

(3) “Regulatory objectives” means the objectives of?—

(a) having a system of regulating persons acting as insolvency practitioners that?—

(i) secures fair treatment for persons affected by their acts and omissions;

(ii) reflects the regulatory principles; and

(iii) ensures consistent outcomes;

(b) encouraging an independent and competitive insolvency-practitioner profession whose members?—

(i) provide high quality services at a cost to the recipient which is fair and reasonable;

(ii) act transparently and with integrity; and

(iii) consider the interests of all creditors in any particular case;

(c) promoting the maximisation of the value of returns to creditors and promptness in making those returns; and

(d) protecting and promoting the public interest.

(4) In paragraph (3)(a), “regulatory principles” means?—

(a) the principles that regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and

(b) any other principle appearing to the body concerned (in the case of the duty under Article 350B(1)), or to the Department (in the case of the duty under Article 350B(2)), to lead to best regulatory practice.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 38: After clause 14 insert

"Oversight of recognised professional bodies

14B.—(1) After Article 350C of the Insolvency Order (inserted by section 14A) insert?—

“Oversight of recognised professional bodies

Directions

350D.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, direct the body to take such steps as the Department considers will counter the adverse impact, mitigate its effect or prevent its occurrence or recurrence.

(3) A direction under this Article may require a recognised professional body?—

(a) to take only such steps as it has power to take under its regulatory arrangements;

(b) to take steps with a view to the modification of any part of its regulatory arrangements.

(4) A direction under this Article may require a recognised professional body?—

(a) to take steps with a view to the institution of, or otherwise in respect of, specific regulatory proceedings;

(b) to take steps in respect of all, or a specified class of, such proceedings.

(5) For the purposes of this Article, a direction to take steps includes a direction which requires a recognised professional body to refrain from taking a particular course of action.

(6) In this Article “regulatory arrangements”, in relation to a recognised professional body, means the arrangements that the body has for or in connection with?—

(a) authorising persons to act as insolvency practitioners; or

(b) regulating persons acting as insolvency practitioners.

Directions: procedure

350E.—(1) Before giving a recognised professional body a direction under Article 350D, the Department must give the body a notice accompanied by a draft of the proposed direction.

(2) The notice under paragraph (1) must?—

(a) state that the Department proposes to give the body a direction in the form of the accompanying draft;

(b) specify why the Department has reached the conclusions mentioned in Article 350D(1) and (2); and

(c) specify a period within which the body may make written representations with respect to the proposal.

(3) The period specified under paragraph (2)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to give the body the proposed direction.

(5) The Department must give notice of that decision to the body.

(6) Where the Department decides to give the proposed direction, the notice under paragraph (5) must?—

(a) contain the direction;

(b) state the time at which the direction is to take effect; and

(c) specify the Department’s reasons for the decision to give the direction.

(7) Where the Department decides to give the proposed direction, the Department must publish the notice under paragraph (5); but this paragraph does not apply to a direction to take any step with a view to the institution of, or otherwise in respect of, regulatory proceedings against an individual.

(8) The Department may revoke a direction under Article 350D; and, where doing so, the Department?—

(a) must give the body to which the direction was given notice of the revocation; and

(b) must publish the notice and, if the notice under paragraph (5) was published under paragraph (7), must do so (if possible) in the same manner as that in which that notice was published.

Financial penalty

350F.—(1) This Article applies if the Department is satisfied?—

(a) that a recognised professional body has failed to comply with a requirement to which this Article applies; and

(b) that, in all the circumstances of the case, it is appropriate to impose a financial penalty on the body.

(2) This Article applies to a requirement imposed on the recognised professional body?—

(a) by a direction given under Article 350D; or

(b) by a provision of this Order or of subordinate legislation under this Order.

(3) The Department may impose a financial penalty, in respect of the failure, of such amount as the Department considers appropriate.

(4) In deciding what amount is appropriate, the Department?—

(a) must have regard to the nature of the requirement which has not been complied with; and

(b) must not take into account the Department’s costs in discharging functions under this Part.

(5) A financial penalty under this Article is payable to the Department; and sums received by the Department in respect of a financial penalty under this Article (including by way of interest) are to be paid into the Consolidated Fund.

(6) In Articles 350G to 350I, “penalty” means a financial penalty under this Article.

Financial penalty: procedure

350G.—(1) Before imposing a penalty on a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to impose a penalty and the amount of the proposed penalty;

(b) specifying the requirement in question;

(c) stating why the Department is satisfied as mentioned in Article 350F(1); and

(d) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(d)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide?—

(a) whether to impose a penalty; and

(b) whether the penalty should be the amount stated in the notice or a reduced amount.

(4) The Department must give notice of the decision to the body.

(5) Where the Department decides to impose a penalty, the notice under paragraph (4) must?—

(a) state that the Department has imposed a penalty on the body and its amount;

(b) specify the requirement in question and state?—

(i) why it appears to the Department that the requirement has not been complied with; or

(ii) where, by that time, the requirement has been complied with, why it appeared to the Department when giving the notice under paragraph (1) that the requirement had not been complied with; and

(c) specify a time by which the penalty is required to be paid.

(6) The time specified under paragraph (5)(c) must be at least three months after the date on which the notice under paragraph (4) is given to the body.

(7) Where the Department decides to impose a penalty, the Department must publish the notice under paragraph (4).

(8) The Department may rescind or reduce a penalty imposed on a recognised professional body; and, where doing so, the Department?—

(a) must give the body notice that the penalty has been rescinded or reduced to the amount stated in the notice; and

(b) must publish the notice; and it must (if possible) be published in the same manner as that in which the notice under paragraph (4) was published.

Appeal against financial penalty

350H.—(1) A recognised professional body on which a penalty is imposed may appeal to the High Court on one or more of the appeal grounds.

(2) The appeal grounds are?—

(a) that the imposition of the penalty was not within the Department’s power under Article 350F;

(b) that the requirement in respect of which the penalty was imposed had been complied with before the notice under Article 350G(1) was given;

(c) that the requirements of Article 350G have not been complied with in relation to the imposition of the penalty and the interests of the body have been substantially prejudiced as a result;

(d) that the amount of the penalty is unreasonable;

(e) that it was unreasonable of the Department to require the penalty imposed to be paid by the time specified in the notice under Article 350G(5)(c).

(3) An appeal under this Article must be made within the period of three months beginning with the day on which the notice under Article 350G(4) in respect of the penalty is given to the body.

(4) On an appeal under this Article the Court may?—

(a) quash the penalty;

(b) substitute a penalty of such lesser amount as the Court considers appropriate; or

(c) in the case of the appeal ground in paragraph (2)(e), substitute for the time imposed by the Department a different time.

(5) Where the Court substitutes a penalty of a lesser amount, it may require the payment of interest on the substituted penalty from such time, and at such rate, as it considers just and equitable.

(6) Where the Court substitutes a later time for the time specified in the notice under Article 350G(5)(c), it may require the payment of interest on the penalty from the substituted time at such rate as it considers just and equitable.

(7) Where the Court dismisses the appeal, it may require the payment of interest on the penalty from the time specified in the notice under Article 350G(5)(c) at such rate as it considers just and equitable.

Recovery of financial penalties

350I.—(1) If the whole or part of a penalty is not paid by the time by which it is required to be paid, the unpaid balance from time to time carries interest at the rate for the time being applicable to a money judgment of the High Court (but this is subject to any requirement imposed by the Court under Article 350H(5), (6) or (7)).

(2) If an appeal is made under Article 350H in relation to a penalty, the penalty is not required to be paid until the appeal has been determined or withdrawn.

(3) Paragraph (4) applies where the whole or part of a penalty has not been paid by the time it is required to be paid and?—

(a) no appeal relating to the penalty has been made under Article 350H during the period within which an appeal may be made under that Article; or

(b) an appeal has been made under that Article and determined or withdrawn.

(4) The Department may recover from the recognised professional body in question, as a debt due to the Department, any of the penalty and any interest which has not been paid.

Reprimand

350J.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, publish a statement reprimanding the body for the act or omission (or series of acts or omissions).

Reprimand: procedure

350K.—(1) If the Department proposes to publish a statement under Article 350J in respect of a recognised professional body, it must give the body a notice?—

(a) stating that the Department proposes to publish such a statement and setting out the terms of the proposed statement;

(b) specifying the acts or omissions to which the proposed statement relates; and

(c) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide whether to publish the statement.

(4) The Department may vary the proposed statement; but before doing so, the Department must give the body notice?—

(a) setting out the proposed variation and the reasons for it; and

(b) specifying a period within which the body may make written representations with respect to the proposed variation.

(5) The period specified under paragraph (4)(b)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(6) On the expiry of that period, the Department must decide whether to publish the statement as varied.”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (1A) (inserted by section 14(6)(b)) insert?—

“(1B) In setting under paragraph (1) the amount of a fee in connection with maintenance of recognition, the matters to which the Department may have regard include, in particular, the costs of the Department in connection with any functions under Articles 350D, 350E, 350J, 350K and 350N.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 38: After clause 14 insert

"Oversight of recognised professional bodies

14B.—(1) After Article 350C of the Insolvency Order (inserted by section 14A) insert?—

“Oversight of recognised professional bodies

Directions

350D.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, direct the body to take such steps as the Department considers will counter the adverse impact, mitigate its effect or prevent its occurrence or recurrence.

(3) A direction under this Article may require a recognised professional body?—

(a) to take only such steps as it has power to take under its regulatory arrangements;

(b) to take steps with a view to the modification of any part of its regulatory arrangements.

(4) A direction under this Article may require a recognised professional body?—

(a) to take steps with a view to the institution of, or otherwise in respect of, specific regulatory proceedings;

(b) to take steps in respect of all, or a specified class of, such proceedings.

(5) For the purposes of this Article, a direction to take steps includes a direction which requires a recognised professional body to refrain from taking a particular course of action.

(6) In this Article “regulatory arrangements”, in relation to a recognised professional body, means the arrangements that the body has for or in connection with?—

(a) authorising persons to act as insolvency practitioners; or

(b) regulating persons acting as insolvency practitioners.

Directions: procedure

350E.—(1) Before giving a recognised professional body a direction under Article 350D, the Department must give the body a notice accompanied by a draft of the proposed direction.

(2) The notice under paragraph (1) must?—

(a) state that the Department proposes to give the body a direction in the form of the accompanying draft;

(b) specify why the Department has reached the conclusions mentioned in Article 350D(1) and (2); and

(c) specify a period within which the body may make written representations with respect to the proposal.

(3) The period specified under paragraph (2)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to give the body the proposed direction.

(5) The Department must give notice of that decision to the body.

(6) Where the Department decides to give the proposed direction, the notice under paragraph (5) must?—

(a) contain the direction;

(b) state the time at which the direction is to take effect; and

(c) specify the Department’s reasons for the decision to give the direction.

(7) Where the Department decides to give the proposed direction, the Department must publish the notice under paragraph (5); but this paragraph does not apply to a direction to take any step with a view to the institution of, or otherwise in respect of, regulatory proceedings against an individual.

(8) The Department may revoke a direction under Article 350D; and, where doing so, the Department?—

(a) must give the body to which the direction was given notice of the revocation; and

(b) must publish the notice and, if the notice under paragraph (5) was published under paragraph (7), must do so (if possible) in the same manner as that in which that notice was published.

Financial penalty

350F.—(1) This Article applies if the Department is satisfied?—

(a) that a recognised professional body has failed to comply with a requirement to which this Article applies; and

(b) that, in all the circumstances of the case, it is appropriate to impose a financial penalty on the body.

(2) This Article applies to a requirement imposed on the recognised professional body?—

(a) by a direction given under Article 350D; or

(b) by a provision of this Order or of subordinate legislation under this Order.

(3) The Department may impose a financial penalty, in respect of the failure, of such amount as the Department considers appropriate.

(4) In deciding what amount is appropriate, the Department?—

(a) must have regard to the nature of the requirement which has not been complied with; and

(b) must not take into account the Department’s costs in discharging functions under this Part.

(5) A financial penalty under this Article is payable to the Department; and sums received by the Department in respect of a financial penalty under this Article (including by way of interest) are to be paid into the Consolidated Fund.

(6) In Articles 350G to 350I, “penalty” means a financial penalty under this Article.

Financial penalty: procedure

350G.—(1) Before imposing a penalty on a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to impose a penalty and the amount of the proposed penalty;

(b) specifying the requirement in question;

(c) stating why the Department is satisfied as mentioned in Article 350F(1); and

(d) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(d)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide?—

(a) whether to impose a penalty; and

(b) whether the penalty should be the amount stated in the notice or a reduced amount.

(4) The Department must give notice of the decision to the body.

(5) Where the Department decides to impose a penalty, the notice under paragraph (4) must?—

(a) state that the Department has imposed a penalty on the body and its amount;

(b) specify the requirement in question and state?—

(i) why it appears to the Department that the requirement has not been complied with; or

(ii) where, by that time, the requirement has been complied with, why it appeared to the Department when giving the notice under paragraph (1) that the requirement had not been complied with; and

(c) specify a time by which the penalty is required to be paid.

(6) The time specified under paragraph (5)(c) must be at least three months after the date on which the notice under paragraph (4) is given to the body.

(7) Where the Department decides to impose a penalty, the Department must publish the notice under paragraph (4).

(8) The Department may rescind or reduce a penalty imposed on a recognised professional body; and, where doing so, the Department?—

(a) must give the body notice that the penalty has been rescinded or reduced to the amount stated in the notice; and

(b) must publish the notice; and it must (if possible) be published in the same manner as that in which the notice under paragraph (4) was published.

Appeal against financial penalty

350H.—(1) A recognised professional body on which a penalty is imposed may appeal to the High Court on one or more of the appeal grounds.

(2) The appeal grounds are?—

(a) that the imposition of the penalty was not within the Department’s power under Article 350F;

(b) that the requirement in respect of which the penalty was imposed had been complied with before the notice under Article 350G(1) was given;

(c) that the requirements of Article 350G have not been complied with in relation to the imposition of the penalty and the interests of the body have been substantially prejudiced as a result;

(d) that the amount of the penalty is unreasonable;

(e) that it was unreasonable of the Department to require the penalty imposed to be paid by the time specified in the notice under Article 350G(5)(c).

(3) An appeal under this Article must be made within the period of three months beginning with the day on which the notice under Article 350G(4) in respect of the penalty is given to the body.

(4) On an appeal under this Article the Court may?—

(a) quash the penalty;

(b) substitute a penalty of such lesser amount as the Court considers appropriate; or

(c) in the case of the appeal ground in paragraph (2)(e), substitute for the time imposed by the Department a different time.

(5) Where the Court substitutes a penalty of a lesser amount, it may require the payment of interest on the substituted penalty from such time, and at such rate, as it considers just and equitable.

(6) Where the Court substitutes a later time for the time specified in the notice under Article 350G(5)(c), it may require the payment of interest on the penalty from the substituted time at such rate as it considers just and equitable.

(7) Where the Court dismisses the appeal, it may require the payment of interest on the penalty from the time specified in the notice under Article 350G(5)(c) at such rate as it considers just and equitable.

Recovery of financial penalties

350I.—(1) If the whole or part of a penalty is not paid by the time by which it is required to be paid, the unpaid balance from time to time carries interest at the rate for the time being applicable to a money judgment of the High Court (but this is subject to any requirement imposed by the Court under Article 350H(5), (6) or (7)).

(2) If an appeal is made under Article 350H in relation to a penalty, the penalty is not required to be paid until the appeal has been determined or withdrawn.

(3) Paragraph (4) applies where the whole or part of a penalty has not been paid by the time it is required to be paid and?—

(a) no appeal relating to the penalty has been made under Article 350H during the period within which an appeal may be made under that Article; or

(b) an appeal has been made under that Article and determined or withdrawn.

(4) The Department may recover from the recognised professional body in question, as a debt due to the Department, any of the penalty and any interest which has not been paid.

Reprimand

350J.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, publish a statement reprimanding the body for the act or omission (or series of acts or omissions).

Reprimand: procedure

350K.—(1) If the Department proposes to publish a statement under Article 350J in respect of a recognised professional body, it must give the body a notice?—

(a) stating that the Department proposes to publish such a statement and setting out the terms of the proposed statement;

(b) specifying the acts or omissions to which the proposed statement relates; and

(c) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide whether to publish the statement.

(4) The Department may vary the proposed statement; but before doing so, the Department must give the body notice?—

(a) setting out the proposed variation and the reasons for it; and

(b) specifying a period within which the body may make written representations with respect to the proposed variation.

(5) The period specified under paragraph (4)(b)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(6) On the expiry of that period, the Department must decide whether to publish the statement as varied.”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (1A) (inserted by section 14(6)(b)) insert?—

“(1B) In setting under paragraph (1) the amount of a fee in connection with maintenance of recognition, the matters to which the Department may have regard include, in particular, the costs of the Department in connection with any functions under Articles 350D, 350E, 350J, 350K and 350N.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 39: After clause 14 insert

"Recognised professional bodies: revocation of recognition

14C.—(1) After Article 350K of the Insolvency Order (inserted by section 14B) insert?—

“Revocation etc. of recognition

Revocation of recognition at instigation of Department

350L.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if the Department is satisfied that?—

(a) an act or omission of the body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives; and

(b) it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) If the condition set out in paragraph (3) is met, an order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)).

(3) The condition is that the Department is satisfied?—

(a) as mentioned in paragraph (1)(a); and

(b) that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(4) In this Part?—

(a) an order under paragraph (1) is referred to as a “revocation order”;

(b) an order under paragraph (2) is referred to as a “partial revocation order”.

(5) A revocation order or partial revocation order?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(6) A partial revocation order has effect as if it were an order made under Article 350(2).

Orders under Article 350L: procedure

350M.—(1) Before making a revocation order or partial revocation order in relation to a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to make the order and the terms of the proposed order;

(b) specifying the Department’s reasons for proposing to make the order; and

(c) specifying a period within which the body, members of the body or other persons likely to be affected by the proposal may make written representations with respect to it.

(2) Where the Department gives a notice under paragraph (1), the Department must publish the notice on the same day.

(3) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to make the revocation order or (as the case may be) partial revocation order in relation to the body.

(5) The Department must give notice of the decision to the body.

(6) Where the Department decides to make the order, the notice under paragraph (5) must specify?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(7) A notice under paragraph (5) must be published; and it must (if possible) be published in the same manner as that in which the notice under paragraph (1) was published.

Revocation of recognition at request of body

350N.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) An order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)) if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(3) Where the Department decides to make an order under this Article the Department must publish a notice specifying?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(4) An order under this Article?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(5) An order under paragraph (2) has effect as if it were an order made under Article 350(2).”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (5) insert?—

“(5A) Article 350M applies for the purposes of an order under paragraph (1)(b) as it applies for the purposes of a revocation order made under Article 350L.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 39: After clause 14 insert

"Recognised professional bodies: revocation of recognition

14C.—(1) After Article 350K of the Insolvency Order (inserted by section 14B) insert?—

“Revocation etc. of recognition

Revocation of recognition at instigation of Department

350L.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if the Department is satisfied that?—

(a) an act or omission of the body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives; and

(b) it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) If the condition set out in paragraph (3) is met, an order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)).

(3) The condition is that the Department is satisfied?—

(a) as mentioned in paragraph (1)(a); and

(b) that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(4) In this Part?—

(a) an order under paragraph (1) is referred to as a “revocation order”;

(b) an order under paragraph (2) is referred to as a “partial revocation order”.

(5) A revocation order or partial revocation order?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(6) A partial revocation order has effect as if it were an order made under Article 350(2).

Orders under Article 350L: procedure

350M.—(1) Before making a revocation order or partial revocation order in relation to a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to make the order and the terms of the proposed order;

(b) specifying the Department’s reasons for proposing to make the order; and

(c) specifying a period within which the body, members of the body or other persons likely to be affected by the proposal may make written representations with respect to it.

(2) Where the Department gives a notice under paragraph (1), the Department must publish the notice on the same day.

(3) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to make the revocation order or (as the case may be) partial revocation order in relation to the body.

(5) The Department must give notice of the decision to the body.

(6) Where the Department decides to make the order, the notice under paragraph (5) must specify?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(7) A notice under paragraph (5) must be published; and it must (if possible) be published in the same manner as that in which the notice under paragraph (1) was published.

Revocation of recognition at request of body

350N.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) An order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)) if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(3) Where the Department decides to make an order under this Article the Department must publish a notice specifying?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(4) An order under this Article?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(5) An order under paragraph (2) has effect as if it were an order made under Article 350(2).”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (5) insert?—

“(5A) Article 350M applies for the purposes of an order under paragraph (1)(b) as it applies for the purposes of a revocation order made under Article 350L.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 39: After clause 14 insert

"Recognised professional bodies: revocation of recognition

14C.—(1) After Article 350K of the Insolvency Order (inserted by section 14B) insert?—

“Revocation etc. of recognition

Revocation of recognition at instigation of Department

350L.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if the Department is satisfied that?—

(a) an act or omission of the body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives; and

(b) it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) If the condition set out in paragraph (3) is met, an order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)).

(3) The condition is that the Department is satisfied?—

(a) as mentioned in paragraph (1)(a); and

(b) that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(4) In this Part?—

(a) an order under paragraph (1) is referred to as a “revocation order”;

(b) an order under paragraph (2) is referred to as a “partial revocation order”.

(5) A revocation order or partial revocation order?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(6) A partial revocation order has effect as if it were an order made under Article 350(2).

Orders under Article 350L: procedure

350M.—(1) Before making a revocation order or partial revocation order in relation to a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to make the order and the terms of the proposed order;

(b) specifying the Department’s reasons for proposing to make the order; and

(c) specifying a period within which the body, members of the body or other persons likely to be affected by the proposal may make written representations with respect to it.

(2) Where the Department gives a notice under paragraph (1), the Department must publish the notice on the same day.

(3) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to make the revocation order or (as the case may be) partial revocation order in relation to the body.

(5) The Department must give notice of the decision to the body.

(6) Where the Department decides to make the order, the notice under paragraph (5) must specify?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(7) A notice under paragraph (5) must be published; and it must (if possible) be published in the same manner as that in which the notice under paragraph (1) was published.

Revocation of recognition at request of body

350N.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) An order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)) if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(3) Where the Department decides to make an order under this Article the Department must publish a notice specifying?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(4) An order under this Article?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(5) An order under paragraph (2) has effect as if it were an order made under Article 350(2).”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (5) insert?—

“(5A) Article 350M applies for the purposes of an order under paragraph (1)(b) as it applies for the purposes of a revocation order made under Article 350L.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 40: After clause 14 insert

"Court sanction of insolvency practitioners in public interest cases

14D. After Article 350N of the Insolvency Order (inserted by section 14C) insert?—

“Court sanction of insolvency practitioners in public interest cases

Direct sanction orders

350O.—(1) For the purposes of this Part a “direct sanctions order” is an order made by the High Court against a person who is acting as an insolvency practitioner which?—

(a) declares that the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) declares that the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the order;

(c) declares that the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the order or until such time as the requirements so specified are complied with;

(d) requires the person to comply with such other requirements as may be specified in the order while acting as an insolvency practitioner;

(e) requires the person to make such contribution as may be specified in the order to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(2) Where the Court makes a direct sanctions order, the relevant recognised professional body must take all necessary steps to give effect to the order.

(3) A direct sanctions order must not specify a contribution as mentioned in paragraph (1)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(4) In this Article and Article 350P, “relevant recognised professional body”, in relation to a person who is acting as an insolvency practitioner, means the recognised professional body by virtue of which the person is authorised so to act.

Application for, and power to make, direct sanctions order

350P.—(1) The Department may apply to the High Court for a direct sanctions order to be made against a person if it appears to the Department that it would be in the public interest for the order to be made.

(2) The Department must send a copy of the application to the relevant recognised professional body.

(3) The Court may make a direct sanctions order against a person where, on an application under this Article, the Court is satisfied that condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person.

(4) The conditions are set out in Article 350Q.

(5) In deciding whether to make a direct sanctions order against a person the Court must have regard to the extent to which?—

(a) the relevant recognised professional body has taken action against the person in respect of the failure mentioned in condition 1; and

(b) that action is sufficient to address the failure.

Direct sanctions order: conditions

350Q.—(1) Condition 1 is that the person, in acting as an insolvency practitioner or in connection with any appointment as such, has failed to comply with?—

(a) a requirement imposed by the rules of the relevant recognised professional body;

(b) any standards, or code of ethics, for the insolvency-practitioner profession adopted from time to time by the relevant recognised professional body.

(2) Condition 2 is that the person?—

(a) is not a fit and proper person to act as an insolvency practitioner;

(b) is a fit and proper person to act as an insolvency practitioner only in relation to companies, but the person’s authorisation is not so limited; or

(c) is a fit and proper person to act as an insolvency practitioner only in relation to individuals, but the person’s authorisation is not so limited.

(3) Condition 3 is that it is appropriate for the person’s authorisation to act as an insolvency practitioner to be suspended for a period or until one or more requirements are complied with.

(4) Condition 4 is that it is appropriate to impose other restrictions on the person acting as an insolvency practitioner.

(5) Condition 5 is that loss has been suffered as a result of the failure mentioned in condition 1 by one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(6) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.

Direct sanctions direction instead of order

350R.—(1) The Department may give a direction (a “direct sanctions direction”) in relation to a person acting as an insolvency practitioner to the relevant recognised professional body (instead of applying, or continuing with an application, for a direct sanctions order against the person) if the Department is satisfied that?—

(a) condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person (see Article 350Q); and

(b) it is in the public interest for the direction to be given.

(2) But the Department may not give a direct sanctions direction in relation to a person without that person’s consent.

(3) A direct sanctions direction may require the relevant recognised professional body to take all necessary steps to secure that?—

(a) the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the direction;

(c) the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the direction or until such time as the requirements so specified are complied with;

(d) the person must comply with such other requirements as may be specified in the direction while acting as an insolvency practitioner;

(e) the person makes such contribution as may be specified in the direction to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(4) A direct sanctions direction must not specify a contribution as mentioned in paragraph (3)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(5) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.”." — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 41: After clause 14 insert

"Power for Department to obtain information

14E. After Article 350R of the Insolvency Order (inserted by section 14D) insert?—

“General

Power for Department to obtain information

350S.—(1) A person mentioned in paragraph (2) must give the Department such information as the Department may by notice in writing require for the exercise of the Department’s functions under this Part.

(2) Those persons are?—

(a) a recognised professional body;

(b) any individual who is or has been authorised under Article 349A to act as an insolvency practitioner;

(c) any person who is connected to such an individual.

(3) A person is connected to an individual who is or has been authorised to act as an insolvency practitioner if, at any time during the authorisation?—

(a) the person was an employee of the individual;

(b) the person acted on behalf of the individual in any other way;

(c) the person employed the individual;

(d) the person was a fellow employee of the individual’s employer;

(e) in a case where the individual was employed by a firm, partnership or company, the person was a member of the firm or partnership or (as the case may be) a director of the company.

(4) In imposing a requirement under paragraph (1) the Department may specify?—

(a) the time period within which the information in question is to be given; and

(b) the manner in which it is to be verified.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 42: After clause 14 insert

"Compliance orders

14F. After Article 350S of the Insolvency Order (inserted by section 14E) insert?—

“Compliance orders

350T.—(1) If at any time it appears to the Department that?—

(a) a recognised professional body has failed to comply with a requirement imposed on it by or by virtue of this Part; or

(b) any other person has failed to comply with a requirement imposed on the person by virtue of Article 350S,

the Department may make an application to the High Court.

(2) If, on an application under this Article, the Court decides that the body or other person has failed to comply with the requirement in question, it may order the body or person to take such steps as the Court considers will secure that the requirement is complied with.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 43: After clause 14 insert

"Power to establish single regulator of insolvency practitioners

Power to establish single regulator of insolvency practitioners

14G.—(1) The Department may by regulations designate a body for the purposes of?—

(a) authorising persons to act as insolvency practitioners; and

(b) regulating persons acting as such.

(2) The designated body may be either?—

(a) a body corporate established by the regulations; or

(b) a body (whether a body corporate or an unincorporated association) already in existence when the regulations are made (an “existing body”).

(3) The regulations may, in particular, confer the following functions on the designated body?—

(a) establishing criteria for determining whether a person is a fit and proper person to act as an insolvency practitioner;

(b) establishing the requirements as to education, practical training and experience which a person must meet in order to act as an insolvency practitioner;

(c) establishing and maintaining a system for providing full authorisation or partial authorisation to persons who meet those criteria and requirements;

(d) imposing technical standards for persons so authorised and enforcing compliance with those standards;

(e) imposing professional and ethical standards for persons so authorised and enforcing compliance with those standards;

(f) monitoring the performance and conduct of persons so authorised;

(g) investigating complaints made against, and other matters concerning the performance or conduct of, persons so authorised.

(4) The regulations may require the designated body, in discharging regulatory functions, so far as is reasonably practicable, to act in a way?—

(a) which is compatible with the regulatory objectives; and

(b) which the body considers most appropriate for the purpose of meeting those objectives.

(5) Provision made under subsection (3)(d) or (3)(e) for the enforcement of the standards concerned may include provision enabling the designated body to impose a financial penalty on a person who is or has been authorised to act as an insolvency practitioner.

(6) The regulations may, in particular, include provision for the purpose of treating a person authorised to act as an insolvency practitioner by virtue of being a member of a professional body recognised under Article 350 of the Insolvency Order immediately before the regulations come into force as authorised to act as an insolvency practitioner by the body designated by the regulations after that time.

(7) Expressions used in this section which are defined for the purposes of Part 12 of the Insolvency Order have the same meaning in this section as in that Part.

(8) Regulations under this section shall not be made unless a draft of the regulations has been laid before and approved by resolution of the Assembly.

(9) Section 14H makes further provision about regulations under this section which designate an existing body.

(10) Schedule A1 makes supplementary provision in relation to the designation of a body by regulations under this section.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 43: After clause 14 insert

"Power to establish single regulator of insolvency practitioners

Power to establish single regulator of insolvency practitioners

14G.—(1) The Department may by regulations designate a body for the purposes of?—

(a) authorising persons to act as insolvency practitioners; and

(b) regulating persons acting as such.

(2) The designated body may be either?—

(a) a body corporate established by the regulations; or

(b) a body (whether a body corporate or an unincorporated association) already in existence when the regulations are made (an “existing body”).

(3) The regulations may, in particular, confer the following functions on the designated body?—

(a) establishing criteria for determining whether a person is a fit and proper person to act as an insolvency practitioner;

(b) establishing the requirements as to education, practical training and experience which a person must meet in order to act as an insolvency practitioner;

(c) establishing and maintaining a system for providing full authorisation or partial authorisation to persons who meet those criteria and requirements;

(d) imposing technical standards for persons so authorised and enforcing compliance with those standards;

(e) imposing professional and ethical standards for persons so authorised and enforcing compliance with those standards;

(f) monitoring the performance and conduct of persons so authorised;

(g) investigating complaints made against, and other matters concerning the performance or conduct of, persons so authorised.

(4) The regulations may require the designated body, in discharging regulatory functions, so far as is reasonably practicable, to act in a way?—

(a) which is compatible with the regulatory objectives; and

(b) which the body considers most appropriate for the purpose of meeting those objectives.

(5) Provision made under subsection (3)(d) or (3)(e) for the enforcement of the standards concerned may include provision enabling the designated body to impose a financial penalty on a person who is or has been authorised to act as an insolvency practitioner.

(6) The regulations may, in particular, include provision for the purpose of treating a person authorised to act as an insolvency practitioner by virtue of being a member of a professional body recognised under Article 350 of the Insolvency Order immediately before the regulations come into force as authorised to act as an insolvency practitioner by the body designated by the regulations after that time.

(7) Expressions used in this section which are defined for the purposes of Part 12 of the Insolvency Order have the same meaning in this section as in that Part.

(8) Regulations under this section shall not be made unless a draft of the regulations has been laid before and approved by resolution of the Assembly.

(9) Section 14H makes further provision about regulations under this section which designate an existing body.

(10) Schedule A1 makes supplementary provision in relation to the designation of a body by regulations under this section.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 43: After clause 14 insert

"Power to establish single regulator of insolvency practitioners

Power to establish single regulator of insolvency practitioners

14G.—(1) The Department may by regulations designate a body for the purposes of?—

(a) authorising persons to act as insolvency practitioners; and

(b) regulating persons acting as such.

(2) The designated body may be either?—

(a) a body corporate established by the regulations; or

(b) a body (whether a body corporate or an unincorporated association) already in existence when the regulations are made (an “existing body”).

(3) The regulations may, in particular, confer the following functions on the designated body?—

(a) establishing criteria for determining whether a person is a fit and proper person to act as an insolvency practitioner;

(b) establishing the requirements as to education, practical training and experience which a person must meet in order to act as an insolvency practitioner;

(c) establishing and maintaining a system for providing full authorisation or partial authorisation to persons who meet those criteria and requirements;

(d) imposing technical standards for persons so authorised and enforcing compliance with those standards;

(e) imposing professional and ethical standards for persons so authorised and enforcing compliance with those standards;

(f) monitoring the performance and conduct of persons so authorised;

(g) investigating complaints made against, and other matters concerning the performance or conduct of, persons so authorised.

(4) The regulations may require the designated body, in discharging regulatory functions, so far as is reasonably practicable, to act in a way?—

(a) which is compatible with the regulatory objectives; and

(b) which the body considers most appropriate for the purpose of meeting those objectives.

(5) Provision made under subsection (3)(d) or (3)(e) for the enforcement of the standards concerned may include provision enabling the designated body to impose a financial penalty on a person who is or has been authorised to act as an insolvency practitioner.

(6) The regulations may, in particular, include provision for the purpose of treating a person authorised to act as an insolvency practitioner by virtue of being a member of a professional body recognised under Article 350 of the Insolvency Order immediately before the regulations come into force as authorised to act as an insolvency practitioner by the body designated by the regulations after that time.

(7) Expressions used in this section which are defined for the purposes of Part 12 of the Insolvency Order have the same meaning in this section as in that Part.

(8) Regulations under this section shall not be made unless a draft of the regulations has been laid before and approved by resolution of the Assembly.

(9) Section 14H makes further provision about regulations under this section which designate an existing body.

(10) Schedule A1 makes supplementary provision in relation to the designation of a body by regulations under this section.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 44: After clause 14 insert

"Regulations under section 14G: designation of existing body

14H.—(1) The Department may make regulations under section 14G designating an existing body only if it appears to the Department that?—

(a) the body is able and willing to exercise the functions that would be conferred by the regulations; and

(b) the body has arrangements in place relating to the exercise of those functions which are such as to be likely to ensure that the conditions in subsection (2) are met.

(2) The conditions are?—

(a) that the functions in question will be exercised effectively; and

(b) where the regulations are to contain any requirements or other provisions prescribed under subsection (3), that those functions will be exercised in accordance with any such requirements or provisions.

(3) Regulations which designate an existing body may contain such requirements or other provisions relating to the exercise of the functions by the designated body as appear to the Department to be appropriate.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 45: In clause 15, page 14, line 2, at end insert

"(5) After that paragraph insert?—

“(3) In making regulations under this Article, the Department must have regard to the regulatory objectives (as defined by Article 350C(3)).”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

No 46: Before schedule 1 insert

"SCHEDULE A1

SECTION 14G(10).

SINGLE REGULATOR OF INSOLVENCY PRACTITIONERS: SUPPLEMENTARY PROVISION

OPERATION OF THIS SCHEDULE

1.—(1) This Schedule has effect in relation to regulations under section 14G designating a body (referred to in this Schedule as “the Regulations”) as follows?—

(a) paragraphs 2 to 13 have effect where the Regulations establish the body;

(b) paragraphs 6, 7 and 9 to 13 have effect where the Regulations designate an existing body (see section 14G(2)(b));

(c) paragraph 14 also has effect where the Regulations designate an existing body that is an unincorporated association.

(2) Provision made in the Regulations by virtue of paragraph 6 or 12, where that paragraph has effect as mentioned in sub-paragraph (1)(b), may only apply in relation to?—

(a) things done by or in relation to the body in or in connection with the exercise of functions conferred on it by the Regulations; and

(b) functions of the body which are functions so conferred.

NAME, MEMBERS AND CHAIR

2.—(1) The Regulations must prescribe the name by which the body is to be known.

(2) The Regulations must provide that the members of the body must be appointed by the Department after such consultation as the Department thinks appropriate.

(3) The Regulations must provide that the Department must appoint one of the members as the chair of the body.

(4) The Regulations may include provision about?—

(a) the terms on which the members of the body hold and vacate office;

(b) the terms on which the person appointed as the chair holds and vacates that office.

REMUNERATION ETC.

3.—(1) The Regulations must provide that the body must pay to its chair and members such remuneration and allowances in respect of expenses properly incurred by them in the exercise of their functions as the Department may determine.

(2) The Regulations must provide that, as regards any member (including the chair) in whose case the Department so determines, the body must pay or make provision for the payment of?—

(a) such pension, allowance or gratuity to or in respect of that person on retirement or death as the Department may determine; or

(b) such contributions or other payment towards the provision of such a pension, allowance or gratuity as the Department may determine.

(3) The Regulations must provide that where?—

(a) a person ceases to be a member of the body otherwise than on the expiry of the term of office; and

(b) it appears to the Department that there are special circumstances which make it right for that person to be compensated,

the body must make a payment to the person by way of compensation of such amount as the Department may determine.

STAFF

4. The Regulations must provide that?—

(a) the body may appoint such persons to be its employees as the body considers appropriate; and

(b) the employees are to be appointed on such terms and conditions as the body may determine.

PROCEEDINGS

5.—(1) The Regulations may make provision about the proceedings of the body.

(2) The Regulations may, in particular?—

(a) authorise the body to exercise any function by means of committees consisting wholly or partly of members of the body;

(b) provide that the validity of proceedings of the body, or of any such committee, is not affected by any vacancy among the members or any defect in the appointment of a member.

FEES

6.—(1) The Regulations may make provision?—

(a) about the setting and charging of fees by the body in connection with the exercise of its functions;

(b) for the retention by the body of any such fees payable to it;

(c) about the application by the body of such fees.

(2) The Regulations may, in particular, make provision?—

(a) for the body to be able to set such fees as appear to it to be sufficient to defray the expenses of the body exercising its functions, taking one year with another;

(b) for the setting of fees by the body to be subject to the approval of the Department.

(3) The expenses referred to in sub-paragraph (2)(a) include any expenses incurred by the body on such staff, accommodation, services and other facilities as appear to it to be necessary or expedient for the proper exercise of its functions.

CONSULTATION

7. The Regulations may make provision as to the circumstances and manner in which the body must consult others before exercising any function conferred on it by the Regulations.

TRAINING AND OTHER SERVICES

8.—(1) The Regulations may make provision authorising the body to provide training or other services to any person.

(2) The Regulations may make provision authorising the body?—

(a) to charge for the provision of any such training or other services; and

(b) to calculate any such charge on the basis that it considers to be the appropriate commercial basis.

REPORT AND ACCOUNTS

9.—(1) The Regulations must require the body, at least once in each 12 month period, to report to the Department on?—

(a) the exercise of the functions conferred on it by the Regulations; and

(b) such other matters as may be prescribed in the Regulations.

(2) The Regulations must require the Department to lay before the Assembly a copy of each report received under this paragraph.

(3) Unless section 394 of the Companies Act 2006 applies to the body (duty on every company to prepare individual accounts), the Regulations must provide that the Department may give directions to the body with respect to the preparation of its accounts.

(4) Unless the body falls within sub-paragraph (5), the Regulations must provide that the Department may give directions to the body with respect to the audit of its accounts.

(5) The body falls within this sub-paragraph if it is a company whose accounts?—

(a) are required to be audited in accordance with Part 16 of the Companies Act 2006 (see section 475 of that Act); or

(b) are exempt from the requirements of that Part under section 482 of that Act (non-profit making companies subject to public sector audit).

(6) The Regulations may provide that, whether or not section 394 of the Companies Act 2006 applies to the body, the Department may direct that any provisions of that Act specified in the directions are to apply to the body with or without modifications.

FUNDING

10. The Regulations may provide that the Department may make grants to the body.

FINANCIAL PENALTIES

11.—(1) This paragraph applies where the Regulations include provision enabling the body to impose a financial penalty on a person who is, or has been, authorised to act as an insolvency practitioner (see section 14G(5)).

(2) The Regulations?—

(a) must include provision about how the body is to determine the amount of a penalty; and

(b) may, in particular, prescribe a minimum or maximum amount.

(3) The Regulations must provide that, unless the Department (with the consent of the Department of Finance and Personnel) otherwise directs, income from penalties imposed by the body is to be paid into the Consolidated Fund.

(4) The Regulations may also, in particular?—

(a) include provision for a penalty imposed by the body to be enforced as a debt;

(b) prescribe conditions that must be met before any action to enforce a penalty may be taken.

STATUS ETC.

12. The Regulations must provide that?—

(a) the body is not to be regarded as acting on behalf of the Crown; and

(b) its members, officers and employees are not to be regarded as Crown servants.

TRANSFER SCHEMES

13.—(1) This paragraph applies if the Regulations make provision designating a body (whether one established by the Regulations or one already in existence) in place of a body designated by earlier regulations under section 14G; and those bodies are referred to as the “new body” and the “former body” respectively.

(2) The Regulations may make provision authorising the Department to make a scheme (a “transfer scheme”) for the transfer of property, rights and liabilities from the former body to the new body.

(3) The Regulations may provide that a transfer scheme may include provision?—

(a) about the transfer of property, rights and liabilities that could not otherwise be transferred;

(b) about the transfer of property acquired, and rights and liabilities arising, after the making of the scheme.

(4) The Regulations may provide that a transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular?—

(a) create rights, or impose liabilities, in relation to property or rights transferred;

(b) make provision about the continuing effect of things done by the former body in respect of anything transferred;

(c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the former body in respect of anything transferred;

(d) make provision for references to the former body in an instrument or other document in respect of anything transferred to be treated as references to the new body;

(e) make provision for the shared ownership or use of property;

(f) if the TUPE regulations do not apply to in relation to the transfer, make provision which is the same or similar.

(5) The Regulations must provide that, where the former body is an existing body, a transfer scheme may only make provision in relation to?—

(a) things done by or in relation to the former body in or in connection with the exercise of functions conferred on it by previous regulations under section 14G; and

(b) functions of the body which are functions so conferred.

(6) In sub-paragraph (4)(f), “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246).

(7) In this paragraph?—

(a) references to rights and liabilities include rights and liabilities relating to a contract of employment;

(b) references to the transfer of property include the grant of a lease.

ADDITIONAL PROVISION WHERE BODY IS UNINCORPORATED ASSOCIATION

14.—(1) This paragraph applies where the body is an unincorporated association.

(2) The Regulations must provide that any relevant proceedings may be brought by or against the body in the name of any body corporate whose constitution provides for the establishment of the body.

(3) In sub-paragraph (2) “relevant proceedings” means proceedings brought in or in connection with the exercise of any function conferred on the body by the Regulations.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Jonathan Bell (DUP, Strangford)

Amendment No 12 represents a change in policy. It removes from subsection (2) of clause 14 the reference to section 390A of the Insolvency Act 1986. This reference would have given insolvency practitioners authorised in Great Britain the automatic right to practise in Northern Ireland. It would have been appropriate for them to have had this right only if it had been reciprocated in Great Britain. The Insolvency Service in London has now advised that this will not happen.

Amendment No 36 is also a significant change, as it replaces article 350 of the Insolvency Order, as substituted by clause 14, with a new version. The new version makes having rules and procedures to meet regulatory objectives a requirement for being recognised as a professional body capable of authorising insolvency practitioners.

Amendment No 36 also inserts new article 350A, which establishes a procedure for applying to my Department to become a recognised professional body. Amendment No 37, which takes the form of new clause14A, inserts two new articles into the Insolvency Order. New article 350B provides that bodies recognised for the purposes of authorising insolvency practitioners will have to discharge their regulatory functions in accordance with regulatory objectives. New article 350C sets out what is meant by regulatory functions and objectives.

Amendment No 38, which takes the form of new clause 14B, inserts new articles 350D to 350K into the Insolvency Order. These give the Department power to impose penalties on recognised professional bodies for regulatory failures. Amendment No 39, which takes the form of new clause 14C, inserts new articles 350L to 350N into the Insolvency Order. Articles 350L and 350M give my Department power to revoke a professional body’s recognition to authorise insolvency practitioners. It also gives my Department the power to downgrade recognition to being able to provide only partial authorisation if the body is failing to meet its regulatory objectives. Partial authorisation is authorisation to act as an insolvency practitioner either in relation to corporate or individual insolvencies, but not both. Article 350N gives my Department similar powers to revoke or downgrade recognition at the request of a recognised professional body.

Amendment No 40, which takes the form of new clause 14D, inserts new articles 350O to 350R into the Insolvency Order. Articles 350O and 350Q give my Department power to apply to the High Court for a direct sanctions order against an insolvency practitioner. Article 350R gives my Department power to give a direct sanctions direction to a recognised professional body in relation to an insolvency practitioner as an alternative to seeking a court order.

Amendment No 41, which takes the form of new clause 14E, inserts new article 350S into the Insolvency Order. This article gives my Department power to obtain information needed in connection with its oversight and disciplinary functions in relation to recognised professional bodies. Amendment No. 42, which takes the form of new clause 14F, inserts new article 350T into the Insolvency Order. This gives the Department the right to seek a High Court order in cases where a recognised professional body is failing to comply with a requirement that it is under or where someone is failing to comply with a requirement to provide information.

Amendment No 43, which takes the form of new clause 14G, gives my Department power to either designate an existing body or establish a new one for the purpose of authorising and regulating insolvency practitioners. Amendment No 44, which takes the form of new clause 14H, sets out the circumstances in which an existing body may be designated for the purpose of authorising and regulating insolvency practitioners.

Jim Allister (Traditional Unionist Voice, North Antrim)

Will the Minister give way?

Jonathan Bell (DUP, Strangford)

Yes, I will give way.

Jim Allister (Traditional Unionist Voice, North Antrim)

Just before the Minister moves away from the new clauses, can he explain to the House why, given the history of difficulties with the conduct of some insolvency practitioners, the opportunity was not taken in the Bill to insert a statutory code of conduct to control and set the parameters and guidelines for insolvency practitioners?

Jonathan Bell (DUP, Strangford)

The Member makes an interesting point. What I intend to do is to hear the perspectives of all Members and then address them collectively when I conclude.

Amendment No 45 is to clause 15. It requires my Department to have regard to the regulatory objectives set for the recognised professional bodies when making regulations dealing with insolvency practitioners and their qualification. Amendment No 46, which takes the form of a new schedule, sets out matters to be dealt with in regulations designating a single regulatory body to authorise and regulate insolvency practitioners.

Mr Speaker, that concludes what I have to say about the amendments.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

Go raibh maith agat, a Cheann Comhairle, agus mo bhuíochas leis an Aire. Thank you very much, Mr Speaker, and I thank the Minister. This group is concerned with recognised professional bodies and insolvency practitioners. There are 12 amendments to clause 14, in particular, new clauses 14A to 14H, clause 15 and schedule 3.

The group 2 amendments relate to the regulation of insolvency practitioners. The Committee raised the issue of a statutory code of conduct with the Department during the Committee Stage of the Bill. Officials responded that there is no provision in the Bill for a code of conduct. However, in GB, provision is included in the Small Business, Enterprise and Employment Bill going through Westminster. Officials informed the Committee that they intended to recommend to the Minister that, in future legislation, a regulatory objective be put in place. That would require the regulated professional bodies to ensure that objectives and principles are put in place to regulate insolvency professionals. I would like at this stage to pay tribute to Mr Allister for his correspondence to the Committee, which highlighted in a very real and human manner the regulatory deficiencies in the system and in the legislation until now around this regulatory aspect.

(Mr Principal Deputy Speaker [Mr Newton] in the Chair)

This would include requirements for appropriate training; ensuring consistent outcomes; providing high-quality services; acting transparently and with integrity; considering the interests of all creditors in a case; promoting the maximisation of the value of returns; and protecting and promoting the public interest. Officials stated that those issues will be enshrined in legislation through the Westminster Bill, and it is the Department’s intention to include similar provisions in a future insolvency Bill. The Committee was broadly content with that approach. However, the Minister subsequently wrote to the Committee confirming that provisions for an effective route to policing and controlling the conduct of insolvency practitioners would be included in the current Bill by way of an amendment at Consideration Stage. This includes penalties that will apply to recognised professional bodies if they do not maintain a satisfactory standard of regulation. It also gives the Department the power to intervene directly by applying to the court, as the Minister outlined, for action to be taken against an IP. Having had sight of the proposed amendments during Committee Stage, the Committee was content that they be made to the Bill at Consideration Stage.

That concludes my comments on behalf of the Committee, Mr Principal Deputy Speaker.

Gordon Dunne (DUP, North Down)

The amendments in group 2 relate to the regulation of professional bodies and insolvency practitioners. There was a concern raised that there seemed to be a deficit of supervision, control, accountability and regulation in how insolvency practitioners conduct themselves. The Committee subsequently raised that with the Department and officials, who responded by saying that there was no provision in the Bill for a code of conduct but said that they would recommend to the Minister that, in future legislation, a regulatory objective be put in place. In December 2014, the Minister wrote to the Committee stating that provisions for a statutory code of conduct for IPs would be included in the Bill by way of an amendment at Consideration Stage. I believe that all other measures will help to improve the processes for all those involved in the sector. I am content to support this stage.

Jim Allister (Traditional Unionist Voice, North Antrim)

As the House knows, at the Second Stage of the Bill, I raised concerns about the lack of control over insolvency practitioners arising from a particular case with which the Committee then became acquainted. It demonstrated a great gap in the capacity to control and effectively to discipline insolvency practitioners who do not conduct themselves in the manner in which they ought to. In that case, some of the things that were done were quite audacious, including the dispersal of the assets in a wholly inappropriate way, leaving the young person whose business had been put into insolvency in a much worse position than they ought to have been. I was grateful that, after raising that, the previous Minister advised me in correspondence of the intention to stiffen some of the provisions in the Bill from how it was originally drafted and that we now have this slate of amendments.

As I said in the intervention, the one area that stills puzzles me somewhat is why the opportunity was not taken in the Bill to introduce a statutory code of conduct. The explanation seems to be that there is parallel legislation at Westminster, which effectively such a thing will be, and at some point in the future we may well do the same. The same argument applied to doing nothing at all at this stage of the Bill, yet something is being done. Why not address the entirety of the issue by embracing a code of conduct at this point? That is my one reservation and my one question that has not been answered in a satisfactory way. Why was that not done at this stage? Given that there seems to be willingness to do it at some point, why not do it now?

Jonathan Bell (DUP, Strangford)

I am grateful to Members who contributed to the debate on the group 2 amendments. The amendments are based on similar provisions in the GB Deregulation Bill and the Small Business, Enterprise and Employment Bill. We are in the fortunate position that both pieces of legislation have completed their passage through Westminster and are now Acts, as that has allowed us to ensure that the corresponding provisions in our Bill are fully up to date.

The amendments will ensure that insolvency practitioners in Northern Ireland are authorised in the same manner and to the same standard as their counterparts in GB. The inclusion of the amendments to provide for a more rigorous regulatory regime for the bodies responsible for overseeing insolvency practitioners will be of benefit to those who rely on the services of that profession.

I will address some of the points that have been raised. I have already thanked the Chair, and I think that he has again demonstrated the competence that he, the Deputy Chair and the Committee have shown in these matters. I reiterate my attention to their detail and the support that they and Gordon Dunne, the Member for North Down, have given. I also put on record my thanks to the Member for North Antrim, Jim Allister. I have reviewed some of the correspondence that has been sent. I thank him for his involvement in applying his legal intelligence to the matter. He has queried me on a couple of points that I will try to address, although this will be an interesting experience as a psychologist attempts to address points of law to a learned QC.

I refer to amendment No 37. As I understand it, the mechanisms put in place will have the same effect as a code of conduct and will require the bodies responsible for regulating the insolvency practitioners to do so in accordance with regulatory objectives designed to ensure that insolvency practitioners adhere to professional standards. Those are the same provisions as in the Westminster Small Business, Enterprise and Employment Act 2015.

Amendment No 12 agreed to.

Amendment No 13 made:

In page 11, line 15, after "authorised" insert

"to act as an insolvency practitioner in relation to companies". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 14 made:

In page 11, line 15, after "may" insert "nonetheless". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 15 made:

In page 11, line 16, leave out "as an insolvency practitioner". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 16 made:

In page 11, line 17, leave out "or an individual". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 17 made:

In page 11, line 18, leave out "or individual". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 18 made:

In page 11, line 20, at end insert

"(1A) A person who is partially authorised to act as an insolvency practitioner in relation to individuals may nonetheless not accept an appointment to act in relation to an individual if at the time of the appointment the person is aware that the individual?—

(a) is or was a member of a partnership other than a Scottish partnership, and

(b) has outstanding liabilities in relation to the partnership.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 19 made:

In page 11, line 21, after "authorised" insert

"to act as an insolvency practitioner in relation to companies". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 20 made:

In page 11, line 21, after "may" insert "nonetheless". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 21 made:

In page 11, line 22, leave out "as an insolvency practitioner". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 22 made:

In page 11, line 23, leave out "or an individual". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 23 made:

In page 11, line 23, leave out from second "or" to "individual" on line 24. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 24 made:

In page 11, line 28, at end insert

"(2A) Subject to paragraph (7), a person who is partially authorised to act as an insolvency practitioner in relation to individuals may nonetheless not continue to act in relation to an individual if the person becomes aware that the individual?—

(a) is or was a member of a partnership other than a Scottish partnership, and

(b) has outstanding liabilities in relation to the partnership,

unless the person is granted permission to continue to act by the High Court.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 25 made:

In page 11, line 29, leave out "the" and insert "a". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 26 made:

In page 11, line 29, after "act" insert

"for the purposes of paragraph (2) or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 27 made:

In page 11, line 32, after "(2)" insert "or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 28 made:

In page 11, line 38, after "company," insert "this Article or, if it applies,". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 29 made:

In page 11, line 38, leave out from "or" to "Article" on line 39. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 30 made:

In page 11, line 40, after "individual," insert "this Article or, if it applies,". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 31 made:

In page 11, line 40, leave out from "or" to "Article" on line 41. — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 32 made:

In page 11, line 43, leave out "paragraph (1) or (2)" and insert "any of paragraphs (1) to (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 33 made:

In page 12, line 1, after "(2)" insert "or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 34 made:

In page 12, line 4, leave out "paragraph (2)" and insert "the paragraph". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 35 made:

In page 12, line 13, after "(2)" insert "or (2A)". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 36 made:

In page 12, leave out from line 23 to line 21 on page 13 and insert

"350.—(1) The Department may by order, if satisfied that a body meets the requirements of paragraph (4), declare the body to be a recognised professional body which is capable of providing its insolvency specialist members with full authorisation or partial authorisation.

(2) The Department may by order, if satisfied that a body meets the requirements of paragraph (4), declare the body to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (as to which, see Article 349A(1)).

(3) Article 350A makes provision about the making by a body of an application to the Department for an order under this Article.

(4) The requirements are that?—

(a) the body regulates (or is going to regulate) the practice of a profession;

(b) the body has rules which it is going to maintain and enforce for securing that its insolvency specialist members?—

(i) are fit and proper persons to act as insolvency practitioners; and

(ii) meet acceptable requirements as to education and practical training and experience; and

(c) the body’s rules and practices for or in connection with authorising persons to act as insolvency practitioners, and its rules and practices for or in connection with regulating persons acting as such, are designed to ensure that the regulatory objectives are met (as to which, see Article 350C).

(5) An order of the Department under this Article has effect from such date as is specified in the order.

(6) An order under this Article may be revoked by an order under Article 350L or 350N (and see Article 361A(1)(b)).

(7) In this Part?—

(a) references to members of a recognised professional body are to persons who, whether members of that body or not, are subject to its rules in the practice of the profession in question;

(b) references to insolvency specialist members of a professional body are to members who are permitted by or under the rules of the body to act as insolvency practitioners.

(8) A reference in this Part to a recognised professional body is to a body recognised under this Article (and see Articles 350L(6) and 350N(5)).

Application for recognition as recognised professional body

350A.—(1) An application for an order under Article 350(1) or (2) must?—

(a) be made to the Department in such form and manner as the Department may require;

(b) be accompanied by such information as the Department may require;

(c) be supplemented by such additional information as the Department may require at any time between receiving the application and determining it.

(2) The requirements which may be imposed under paragraph (1) may differ as between different applications.

(3) The Department may require information provided under this Article to be in such form, and verified in such manner, as the Department may specify.

(4) An application for an order under Article 350(1) or (2) must be accompanied by?—

(a) a copy of the applicant’s rules;

(b) a copy of the applicant’s policies and practices; and

(c) a copy of any guidance issued by the applicant in writing.

(5) The reference in paragraph (4)(c) to guidance issued by the applicant is a reference to guidance or recommendations which are?—

(a) issued or made by it which will apply to its insolvency specialist members or to persons seeking to become such members;

(b) relevant for the purposes of this Part; and

(c) intended to have continuing effect,

including guidance or recommendations relating to the admission or expulsion of members.

(6) The Department may refuse an application for an order under Article 350(1) or (2) if the Department considers that recognition of the body concerned is unnecessary having regard to the existence of one or more other bodies which have been or are likely to be recognised under Article 350.

(7) Paragraph (8) applies where the Department refuses an application for an order under Article 350(1) or (2); and it applies regardless of whether the application is refused on the ground mentioned in paragraph (6), because the Department is not satisfied as mentioned in Article 350(1) or (2) or because a fee has not been paid (see Article 361A(1)(b)).

(8) The Department must give the applicant a written notice of the Department’s decision; and the notice must set out the reasons for refusing the application.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Clause 14, as amended, ordered to stand part of the Bill.

New Clause

Amendment No 37 made:

After clause 14 insert

"Regulatory objectives

14A.—(1) After Article 350A of the Insolvency Order (inserted by section 14) insert?—

“Regulatory objectives

Application of regulatory objectives

350B.—(1) In discharging regulatory functions, a recognised professional body must, so far as is reasonably practicable, act in a way?—

(a) which is compatible with the regulatory objectives; and

(b) which the body considers most appropriate for the purpose of meeting those objectives.

(2) In discharging functions under this Part, the Department must have regard to the regulatory objectives.

Meaning of “regulatory functions” and “regulatory objectives”

350C.—(1) This Article has effect for the purposes of this Part.

(2) “Regulatory functions”, in relation to a recognised professional body, means any functions the body has?—

(a) under or in relation to its arrangements for or in connection with?—

(i) authorising persons to act as insolvency practitioners; or

(ii) regulating persons acting as insolvency practitioners; or

(b) in connection with the making or alteration of those arrangements.

(3) “Regulatory objectives” means the objectives of?—

(a) having a system of regulating persons acting as insolvency practitioners that?—

(i) secures fair treatment for persons affected by their acts and omissions;

(ii) reflects the regulatory principles; and

(iii) ensures consistent outcomes;

(b) encouraging an independent and competitive insolvency-practitioner profession whose members?—

(i) provide high quality services at a cost to the recipient which is fair and reasonable;

(ii) act transparently and with integrity; and

(iii) consider the interests of all creditors in any particular case;

(c) promoting the maximisation of the value of returns to creditors and promptness in making those returns; and

(d) protecting and promoting the public interest.

(4) In paragraph (3)(a), “regulatory principles” means?—

(a) the principles that regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and

(b) any other principle appearing to the body concerned (in the case of the duty under Article 350B(1)), or to the Department (in the case of the duty under Article 350B(2)), to lead to best regulatory practice.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

New Clause

Amendment No 38 made:

After clause 14 insert

"Oversight of recognised professional bodies

14B.—(1) After Article 350C of the Insolvency Order (inserted by section 14A) insert?—

“Oversight of recognised professional bodies

Directions

350D.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, direct the body to take such steps as the Department considers will counter the adverse impact, mitigate its effect or prevent its occurrence or recurrence.

(3) A direction under this Article may require a recognised professional body?—

(a) to take only such steps as it has power to take under its regulatory arrangements;

(b) to take steps with a view to the modification of any part of its regulatory arrangements.

(4) A direction under this Article may require a recognised professional body?—

(a) to take steps with a view to the institution of, or otherwise in respect of, specific regulatory proceedings;

(b) to take steps in respect of all, or a specified class of, such proceedings.

(5) For the purposes of this Article, a direction to take steps includes a direction which requires a recognised professional body to refrain from taking a particular course of action.

(6) In this Article “regulatory arrangements”, in relation to a recognised professional body, means the arrangements that the body has for or in connection with?—

(a) authorising persons to act as insolvency practitioners; or

(b) regulating persons acting as insolvency practitioners.

Directions: procedure

350E.—(1) Before giving a recognised professional body a direction under Article 350D, the Department must give the body a notice accompanied by a draft of the proposed direction.

(2) The notice under paragraph (1) must?—

(a) state that the Department proposes to give the body a direction in the form of the accompanying draft;

(b) specify why the Department has reached the conclusions mentioned in Article 350D(1) and (2); and

(c) specify a period within which the body may make written representations with respect to the proposal.

(3) The period specified under paragraph (2)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to give the body the proposed direction.

(5) The Department must give notice of that decision to the body.

(6) Where the Department decides to give the proposed direction, the notice under paragraph (5) must?—

(a) contain the direction;

(b) state the time at which the direction is to take effect; and

(c) specify the Department’s reasons for the decision to give the direction.

(7) Where the Department decides to give the proposed direction, the Department must publish the notice under paragraph (5); but this paragraph does not apply to a direction to take any step with a view to the institution of, or otherwise in respect of, regulatory proceedings against an individual.

(8) The Department may revoke a direction under Article 350D; and, where doing so, the Department?—

(a) must give the body to which the direction was given notice of the revocation; and

(b) must publish the notice and, if the notice under paragraph (5) was published under paragraph (7), must do so (if possible) in the same manner as that in which that notice was published.

Financial penalty

350F.—(1) This Article applies if the Department is satisfied?—

(a) that a recognised professional body has failed to comply with a requirement to which this Article applies; and

(b) that, in all the circumstances of the case, it is appropriate to impose a financial penalty on the body.

(2) This Article applies to a requirement imposed on the recognised professional body?—

(a) by a direction given under Article 350D; or

(b) by a provision of this Order or of subordinate legislation under this Order.

(3) The Department may impose a financial penalty, in respect of the failure, of such amount as the Department considers appropriate.

(4) In deciding what amount is appropriate, the Department?—

(a) must have regard to the nature of the requirement which has not been complied with; and

(b) must not take into account the Department’s costs in discharging functions under this Part.

(5) A financial penalty under this Article is payable to the Department; and sums received by the Department in respect of a financial penalty under this Article (including by way of interest) are to be paid into the Consolidated Fund.

(6) In Articles 350G to 350I, “penalty” means a financial penalty under this Article.

Financial penalty: procedure

350G.—(1) Before imposing a penalty on a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to impose a penalty and the amount of the proposed penalty;

(b) specifying the requirement in question;

(c) stating why the Department is satisfied as mentioned in Article 350F(1); and

(d) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(d)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide?—

(a) whether to impose a penalty; and

(b) whether the penalty should be the amount stated in the notice or a reduced amount.

(4) The Department must give notice of the decision to the body.

(5) Where the Department decides to impose a penalty, the notice under paragraph (4) must?—

(a) state that the Department has imposed a penalty on the body and its amount;

(b) specify the requirement in question and state?—

(i) why it appears to the Department that the requirement has not been complied with; or

(ii) where, by that time, the requirement has been complied with, why it appeared to the Department when giving the notice under paragraph (1) that the requirement had not been complied with; and

(c) specify a time by which the penalty is required to be paid.

(6) The time specified under paragraph (5)(c) must be at least three months after the date on which the notice under paragraph (4) is given to the body.

(7) Where the Department decides to impose a penalty, the Department must publish the notice under paragraph (4).

(8) The Department may rescind or reduce a penalty imposed on a recognised professional body; and, where doing so, the Department?—

(a) must give the body notice that the penalty has been rescinded or reduced to the amount stated in the notice; and

(b) must publish the notice; and it must (if possible) be published in the same manner as that in which the notice under paragraph (4) was published.

Appeal against financial penalty

350H.—(1) A recognised professional body on which a penalty is imposed may appeal to the High Court on one or more of the appeal grounds.

(2) The appeal grounds are?—

(a) that the imposition of the penalty was not within the Department’s power under Article 350F;

(b) that the requirement in respect of which the penalty was imposed had been complied with before the notice under Article 350G(1) was given;

(c) that the requirements of Article 350G have not been complied with in relation to the imposition of the penalty and the interests of the body have been substantially prejudiced as a result;

(d) that the amount of the penalty is unreasonable;

(e) that it was unreasonable of the Department to require the penalty imposed to be paid by the time specified in the notice under Article 350G(5)(c).

(3) An appeal under this Article must be made within the period of three months beginning with the day on which the notice under Article 350G(4) in respect of the penalty is given to the body.

(4) On an appeal under this Article the Court may?—

(a) quash the penalty;

(b) substitute a penalty of such lesser amount as the Court considers appropriate; or

(c) in the case of the appeal ground in paragraph (2)(e), substitute for the time imposed by the Department a different time.

(5) Where the Court substitutes a penalty of a lesser amount, it may require the payment of interest on the substituted penalty from such time, and at such rate, as it considers just and equitable.

(6) Where the Court substitutes a later time for the time specified in the notice under Article 350G(5)(c), it may require the payment of interest on the penalty from the substituted time at such rate as it considers just and equitable.

(7) Where the Court dismisses the appeal, it may require the payment of interest on the penalty from the time specified in the notice under Article 350G(5)(c) at such rate as it considers just and equitable.

Recovery of financial penalties

350I.—(1) If the whole or part of a penalty is not paid by the time by which it is required to be paid, the unpaid balance from time to time carries interest at the rate for the time being applicable to a money judgment of the High Court (but this is subject to any requirement imposed by the Court under Article 350H(5), (6) or (7)).

(2) If an appeal is made under Article 350H in relation to a penalty, the penalty is not required to be paid until the appeal has been determined or withdrawn.

(3) Paragraph (4) applies where the whole or part of a penalty has not been paid by the time it is required to be paid and?—

(a) no appeal relating to the penalty has been made under Article 350H during the period within which an appeal may be made under that Article; or

(b) an appeal has been made under that Article and determined or withdrawn.

(4) The Department may recover from the recognised professional body in question, as a debt due to the Department, any of the penalty and any interest which has not been paid.

Reprimand

350J.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, publish a statement reprimanding the body for the act or omission (or series of acts or omissions).

Reprimand: procedure

350K.—(1) If the Department proposes to publish a statement under Article 350J in respect of a recognised professional body, it must give the body a notice?—

(a) stating that the Department proposes to publish such a statement and setting out the terms of the proposed statement;

(b) specifying the acts or omissions to which the proposed statement relates; and

(c) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide whether to publish the statement.

(4) The Department may vary the proposed statement; but before doing so, the Department must give the body notice?—

(a) setting out the proposed variation and the reasons for it; and

(b) specifying a period within which the body may make written representations with respect to the proposed variation.

(5) The period specified under paragraph (4)(b)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(6) On the expiry of that period, the Department must decide whether to publish the statement as varied.”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (1A) (inserted by section 14(6)(b)) insert?—

“(1B) In setting under paragraph (1) the amount of a fee in connection with maintenance of recognition, the matters to which the Department may have regard include, in particular, the costs of the Department in connection with any functions under Articles 350D, 350E, 350J, 350K and 350N.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

After clause 14 insert

"Oversight of recognised professional bodies

14B.—(1) After Article 350C of the Insolvency Order (inserted by section 14A) insert?—

“Oversight of recognised professional bodies

Directions

350D.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, direct the body to take such steps as the Department considers will counter the adverse impact, mitigate its effect or prevent its occurrence or recurrence.

(3) A direction under this Article may require a recognised professional body?—

(a) to take only such steps as it has power to take under its regulatory arrangements;

(b) to take steps with a view to the modification of any part of its regulatory arrangements.

(4) A direction under this Article may require a recognised professional body?—

(a) to take steps with a view to the institution of, or otherwise in respect of, specific regulatory proceedings;

(b) to take steps in respect of all, or a specified class of, such proceedings.

(5) For the purposes of this Article, a direction to take steps includes a direction which requires a recognised professional body to refrain from taking a particular course of action.

(6) In this Article “regulatory arrangements”, in relation to a recognised professional body, means the arrangements that the body has for or in connection with?—

(a) authorising persons to act as insolvency practitioners; or

(b) regulating persons acting as insolvency practitioners.

Directions: procedure

350E.—(1) Before giving a recognised professional body a direction under Article 350D, the Department must give the body a notice accompanied by a draft of the proposed direction.

(2) The notice under paragraph (1) must?—

(a) state that the Department proposes to give the body a direction in the form of the accompanying draft;

(b) specify why the Department has reached the conclusions mentioned in Article 350D(1) and (2); and

(c) specify a period within which the body may make written representations with respect to the proposal.

(3) The period specified under paragraph (2)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to give the body the proposed direction.

(5) The Department must give notice of that decision to the body.

(6) Where the Department decides to give the proposed direction, the notice under paragraph (5) must?—

(a) contain the direction;

(b) state the time at which the direction is to take effect; and

(c) specify the Department’s reasons for the decision to give the direction.

(7) Where the Department decides to give the proposed direction, the Department must publish the notice under paragraph (5); but this paragraph does not apply to a direction to take any step with a view to the institution of, or otherwise in respect of, regulatory proceedings against an individual.

(8) The Department may revoke a direction under Article 350D; and, where doing so, the Department?—

(a) must give the body to which the direction was given notice of the revocation; and

(b) must publish the notice and, if the notice under paragraph (5) was published under paragraph (7), must do so (if possible) in the same manner as that in which that notice was published.

Financial penalty

350F.—(1) This Article applies if the Department is satisfied?—

(a) that a recognised professional body has failed to comply with a requirement to which this Article applies; and

(b) that, in all the circumstances of the case, it is appropriate to impose a financial penalty on the body.

(2) This Article applies to a requirement imposed on the recognised professional body?—

(a) by a direction given under Article 350D; or

(b) by a provision of this Order or of subordinate legislation under this Order.

(3) The Department may impose a financial penalty, in respect of the failure, of such amount as the Department considers appropriate.

(4) In deciding what amount is appropriate, the Department?—

(a) must have regard to the nature of the requirement which has not been complied with; and

(b) must not take into account the Department’s costs in discharging functions under this Part.

(5) A financial penalty under this Article is payable to the Department; and sums received by the Department in respect of a financial penalty under this Article (including by way of interest) are to be paid into the Consolidated Fund.

(6) In Articles 350G to 350I, “penalty” means a financial penalty under this Article.

Financial penalty: procedure

350G.—(1) Before imposing a penalty on a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to impose a penalty and the amount of the proposed penalty;

(b) specifying the requirement in question;

(c) stating why the Department is satisfied as mentioned in Article 350F(1); and

(d) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(d)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide?—

(a) whether to impose a penalty; and

(b) whether the penalty should be the amount stated in the notice or a reduced amount.

(4) The Department must give notice of the decision to the body.

(5) Where the Department decides to impose a penalty, the notice under paragraph (4) must?—

(a) state that the Department has imposed a penalty on the body and its amount;

(b) specify the requirement in question and state?—

(i) why it appears to the Department that the requirement has not been complied with; or

(ii) where, by that time, the requirement has been complied with, why it appeared to the Department when giving the notice under paragraph (1) that the requirement had not been complied with; and

(c) specify a time by which the penalty is required to be paid.

(6) The time specified under paragraph (5)(c) must be at least three months after the date on which the notice under paragraph (4) is given to the body.

(7) Where the Department decides to impose a penalty, the Department must publish the notice under paragraph (4).

(8) The Department may rescind or reduce a penalty imposed on a recognised professional body; and, where doing so, the Department?—

(a) must give the body notice that the penalty has been rescinded or reduced to the amount stated in the notice; and

(b) must publish the notice; and it must (if possible) be published in the same manner as that in which the notice under paragraph (4) was published.

Appeal against financial penalty

350H.—(1) A recognised professional body on which a penalty is imposed may appeal to the High Court on one or more of the appeal grounds.

(2) The appeal grounds are?—

(a) that the imposition of the penalty was not within the Department’s power under Article 350F;

(b) that the requirement in respect of which the penalty was imposed had been complied with before the notice under Article 350G(1) was given;

(c) that the requirements of Article 350G have not been complied with in relation to the imposition of the penalty and the interests of the body have been substantially prejudiced as a result;

(d) that the amount of the penalty is unreasonable;

(e) that it was unreasonable of the Department to require the penalty imposed to be paid by the time specified in the notice under Article 350G(5)(c).

(3) An appeal under this Article must be made within the period of three months beginning with the day on which the notice under Article 350G(4) in respect of the penalty is given to the body.

(4) On an appeal under this Article the Court may?—

(a) quash the penalty;

(b) substitute a penalty of such lesser amount as the Court considers appropriate; or

(c) in the case of the appeal ground in paragraph (2)(e), substitute for the time imposed by the Department a different time.

(5) Where the Court substitutes a penalty of a lesser amount, it may require the payment of interest on the substituted penalty from such time, and at such rate, as it considers just and equitable.

(6) Where the Court substitutes a later time for the time specified in the notice under Article 350G(5)(c), it may require the payment of interest on the penalty from the substituted time at such rate as it considers just and equitable.

(7) Where the Court dismisses the appeal, it may require the payment of interest on the penalty from the time specified in the notice under Article 350G(5)(c) at such rate as it considers just and equitable.

Recovery of financial penalties

350I.—(1) If the whole or part of a penalty is not paid by the time by which it is required to be paid, the unpaid balance from time to time carries interest at the rate for the time being applicable to a money judgment of the High Court (but this is subject to any requirement imposed by the Court under Article 350H(5), (6) or (7)).

(2) If an appeal is made under Article 350H in relation to a penalty, the penalty is not required to be paid until the appeal has been determined or withdrawn.

(3) Paragraph (4) applies where the whole or part of a penalty has not been paid by the time it is required to be paid and?—

(a) no appeal relating to the penalty has been made under Article 350H during the period within which an appeal may be made under that Article; or

(b) an appeal has been made under that Article and determined or withdrawn.

(4) The Department may recover from the recognised professional body in question, as a debt due to the Department, any of the penalty and any interest which has not been paid.

Reprimand

350J.—(1) This Article applies if the Department is satisfied that an act or omission of a recognised professional body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives.

(2) The Department may, if in all the circumstances of the case satisfied that it is appropriate to do so, publish a statement reprimanding the body for the act or omission (or series of acts or omissions).

Reprimand: procedure

350K.—(1) If the Department proposes to publish a statement under Article 350J in respect of a recognised professional body, it must give the body a notice?—

(a) stating that the Department proposes to publish such a statement and setting out the terms of the proposed statement;

(b) specifying the acts or omissions to which the proposed statement relates; and

(c) specifying a period within which the body may make written representations with respect to the proposal.

(2) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(3) On the expiry of that period, the Department must decide whether to publish the statement.

(4) The Department may vary the proposed statement; but before doing so, the Department must give the body notice?—

(a) setting out the proposed variation and the reasons for it; and

(b) specifying a period within which the body may make written representations with respect to the proposed variation.

(5) The period specified under paragraph (4)(b)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(6) On the expiry of that period, the Department must decide whether to publish the statement as varied.”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (1A) (inserted by section 14(6)(b)) insert?—

“(1B) In setting under paragraph (1) the amount of a fee in connection with maintenance of recognition, the matters to which the Department may have regard include, in particular, the costs of the Department in connection with any functions under Articles 350D, 350E, 350J, 350K and 350N.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

New Clause

Amendment No 39 made:

After clause 14 insert

"Recognised professional bodies: revocation of recognition

14C.—(1) After Article 350K of the Insolvency Order (inserted by section 14B) insert?—

“Revocation etc. of recognition

Revocation of recognition at instigation of Department

350L.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if the Department is satisfied that?—

(a) an act or omission of the body (or a series of such acts or omissions) in discharging one or more of its regulatory functions has had, or is likely to have, an adverse impact on the achievement of one or more of the regulatory objectives; and

(b) it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) If the condition set out in paragraph (3) is met, an order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)).

(3) The condition is that the Department is satisfied?—

(a) as mentioned in paragraph (1)(a); and

(b) that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(4) In this Part?—

(a) an order under paragraph (1) is referred to as a “revocation order”;

(b) an order under paragraph (2) is referred to as a “partial revocation order”.

(5) A revocation order or partial revocation order?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(6) A partial revocation order has effect as if it were an order made under Article 350(2).

Orders under Article 350L: procedure

350M.—(1) Before making a revocation order or partial revocation order in relation to a recognised professional body, the Department must give notice to the body?—

(a) stating that the Department proposes to make the order and the terms of the proposed order;

(b) specifying the Department’s reasons for proposing to make the order; and

(c) specifying a period within which the body, members of the body or other persons likely to be affected by the proposal may make written representations with respect to it.

(2) Where the Department gives a notice under paragraph (1), the Department must publish the notice on the same day.

(3) The period specified under paragraph (1)(c)?—

(a) must begin with the date on which the notice is given to the body; and

(b) must not be less than 28 days.

(4) On the expiry of that period, the Department must decide whether to make the revocation order or (as the case may be) partial revocation order in relation to the body.

(5) The Department must give notice of the decision to the body.

(6) Where the Department decides to make the order, the notice under paragraph (5) must specify?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(7) A notice under paragraph (5) must be published; and it must (if possible) be published in the same manner as that in which the notice under paragraph (1) was published.

Revocation of recognition at request of body

350N.—(1) An order under Article 350(1) or (2) in relation to a recognised professional body may be revoked by the Department by order if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case to revoke the body’s recognition under Article 350.

(2) An order under Article 350(1) in relation to a recognised professional body may be revoked by the Department by an order which also declares the body concerned to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order (see Article 349A(1)) if?—

(a) the body has requested that an order be made under this paragraph; and

(b) the Department is satisfied that it is appropriate in all the circumstances of the case for the body to be declared to be a recognised professional body which is capable of providing its insolvency specialist members with partial authorisation only of the kind specified in the order.

(3) Where the Department decides to make an order under this Article the Department must publish a notice specifying?—

(a) when the order is to take effect; and

(b) the Department’s reasons for making the order.

(4) An order under this Article?—

(a) has effect from such date as is specified in the order; and

(b) may make provision for members of the body in question to continue to be treated as fully or partially authorised (as the case may be) to act as insolvency practitioners for a specified period after the order takes effect.

(5) An order under paragraph (2) has effect as if it were an order made under Article 350(2).”.

(2) In Article 361A of the Insolvency Order (fees orders (supplementary)), after paragraph (5) insert?—

“(5A) Article 350M applies for the purposes of an order under paragraph (1)(b) as it applies for the purposes of a revocation order made under Article 350L.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

New Clause

Amendment No 40 made:

After clause 14 insert

"Court sanction of insolvency practitioners in public interest cases

14D. After Article 350N of the Insolvency Order (inserted by section 14C) insert?—

“Court sanction of insolvency practitioners in public interest cases

Direct sanction orders

350O.—(1) For the purposes of this Part a “direct sanctions order” is an order made by the High Court against a person who is acting as an insolvency practitioner which?—

(a) declares that the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) declares that the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the order;

(c) declares that the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the order or until such time as the requirements so specified are complied with;

(d) requires the person to comply with such other requirements as may be specified in the order while acting as an insolvency practitioner;

(e) requires the person to make such contribution as may be specified in the order to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(2) Where the Court makes a direct sanctions order, the relevant recognised professional body must take all necessary steps to give effect to the order.

(3) A direct sanctions order must not specify a contribution as mentioned in paragraph (1)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(4) In this Article and Article 350P, “relevant recognised professional body”, in relation to a person who is acting as an insolvency practitioner, means the recognised professional body by virtue of which the person is authorised so to act.

Application for, and power to make, direct sanctions order

350P.—(1) The Department may apply to the High Court for a direct sanctions order to be made against a person if it appears to the Department that it would be in the public interest for the order to be made.

(2) The Department must send a copy of the application to the relevant recognised professional body.

(3) The Court may make a direct sanctions order against a person where, on an application under this Article, the Court is satisfied that condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person.

(4) The conditions are set out in Article 350Q.

(5) In deciding whether to make a direct sanctions order against a person the Court must have regard to the extent to which?—

(a) the relevant recognised professional body has taken action against the person in respect of the failure mentioned in condition 1; and

(b) that action is sufficient to address the failure.

Direct sanctions order: conditions

350Q.—(1) Condition 1 is that the person, in acting as an insolvency practitioner or in connection with any appointment as such, has failed to comply with?—

(a) a requirement imposed by the rules of the relevant recognised professional body;

(b) any standards, or code of ethics, for the insolvency-practitioner profession adopted from time to time by the relevant recognised professional body.

(2) Condition 2 is that the person?—

(a) is not a fit and proper person to act as an insolvency practitioner;

(b) is a fit and proper person to act as an insolvency practitioner only in relation to companies, but the person’s authorisation is not so limited; or

(c) is a fit and proper person to act as an insolvency practitioner only in relation to individuals, but the person’s authorisation is not so limited.

(3) Condition 3 is that it is appropriate for the person’s authorisation to act as an insolvency practitioner to be suspended for a period or until one or more requirements are complied with.

(4) Condition 4 is that it is appropriate to impose other restrictions on the person acting as an insolvency practitioner.

(5) Condition 5 is that loss has been suffered as a result of the failure mentioned in condition 1 by one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(6) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.

Direct sanctions direction instead of order

350R.—(1) The Department may give a direction (a “direct sanctions direction”) in relation to a person acting as an insolvency practitioner to the relevant recognised professional body (instead of applying, or continuing with an application, for a direct sanctions order against the person) if the Department is satisfied that?—

(a) condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person (see Article 350Q); and

(b) it is in the public interest for the direction to be given.

(2) But the Department may not give a direct sanctions direction in relation to a person without that person’s consent.

(3) A direct sanctions direction may require the relevant recognised professional body to take all necessary steps to secure that?—

(a) the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the direction;

(c) the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the direction or until such time as the requirements so specified are complied with;

(d) the person must comply with such other requirements as may be specified in the direction while acting as an insolvency practitioner;

(e) the person makes such contribution as may be specified in the direction to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(4) A direct sanctions direction must not specify a contribution as mentioned in paragraph (3)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(5) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.”." — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

After clause 14 insert

"Court sanction of insolvency practitioners in public interest cases

14D. After Article 350N of the Insolvency Order (inserted by section 14C) insert?—

“Court sanction of insolvency practitioners in public interest cases

Direct sanction orders

350O.—(1) For the purposes of this Part a “direct sanctions order” is an order made by the High Court against a person who is acting as an insolvency practitioner which?—

(a) declares that the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) declares that the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the order;

(c) declares that the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the order or until such time as the requirements so specified are complied with;

(d) requires the person to comply with such other requirements as may be specified in the order while acting as an insolvency practitioner;

(e) requires the person to make such contribution as may be specified in the order to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(2) Where the Court makes a direct sanctions order, the relevant recognised professional body must take all necessary steps to give effect to the order.

(3) A direct sanctions order must not specify a contribution as mentioned in paragraph (1)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(4) In this Article and Article 350P, “relevant recognised professional body”, in relation to a person who is acting as an insolvency practitioner, means the recognised professional body by virtue of which the person is authorised so to act.

Application for, and power to make, direct sanctions order

350P.—(1) The Department may apply to the High Court for a direct sanctions order to be made against a person if it appears to the Department that it would be in the public interest for the order to be made.

(2) The Department must send a copy of the application to the relevant recognised professional body.

(3) The Court may make a direct sanctions order against a person where, on an application under this Article, the Court is satisfied that condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person.

(4) The conditions are set out in Article 350Q.

(5) In deciding whether to make a direct sanctions order against a person the Court must have regard to the extent to which?—

(a) the relevant recognised professional body has taken action against the person in respect of the failure mentioned in condition 1; and

(b) that action is sufficient to address the failure.

Direct sanctions order: conditions

350Q.—(1) Condition 1 is that the person, in acting as an insolvency practitioner or in connection with any appointment as such, has failed to comply with?—

(a) a requirement imposed by the rules of the relevant recognised professional body;

(b) any standards, or code of ethics, for the insolvency-practitioner profession adopted from time to time by the relevant recognised professional body.

(2) Condition 2 is that the person?—

(a) is not a fit and proper person to act as an insolvency practitioner;

(b) is a fit and proper person to act as an insolvency practitioner only in relation to companies, but the person’s authorisation is not so limited; or

(c) is a fit and proper person to act as an insolvency practitioner only in relation to individuals, but the person’s authorisation is not so limited.

(3) Condition 3 is that it is appropriate for the person’s authorisation to act as an insolvency practitioner to be suspended for a period or until one or more requirements are complied with.

(4) Condition 4 is that it is appropriate to impose other restrictions on the person acting as an insolvency practitioner.

(5) Condition 5 is that loss has been suffered as a result of the failure mentioned in condition 1 by one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(6) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.

Direct sanctions direction instead of order

350R.—(1) The Department may give a direction (a “direct sanctions direction”) in relation to a person acting as an insolvency practitioner to the relevant recognised professional body (instead of applying, or continuing with an application, for a direct sanctions order against the person) if the Department is satisfied that?—

(a) condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person (see Article 350Q); and

(b) it is in the public interest for the direction to be given.

(2) But the Department may not give a direct sanctions direction in relation to a person without that person’s consent.

(3) A direct sanctions direction may require the relevant recognised professional body to take all necessary steps to secure that?—

(a) the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the direction;

(c) the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the direction or until such time as the requirements so specified are complied with;

(d) the person must comply with such other requirements as may be specified in the direction while acting as an insolvency practitioner;

(e) the person makes such contribution as may be specified in the direction to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(4) A direct sanctions direction must not specify a contribution as mentioned in paragraph (3)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(5) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.”." — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

After clause 14 insert

"Court sanction of insolvency practitioners in public interest cases

14D. After Article 350N of the Insolvency Order (inserted by section 14C) insert?—

“Court sanction of insolvency practitioners in public interest cases

Direct sanction orders

350O.—(1) For the purposes of this Part a “direct sanctions order” is an order made by the High Court against a person who is acting as an insolvency practitioner which?—

(a) declares that the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) declares that the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the order;

(c) declares that the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the order or until such time as the requirements so specified are complied with;

(d) requires the person to comply with such other requirements as may be specified in the order while acting as an insolvency practitioner;

(e) requires the person to make such contribution as may be specified in the order to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(2) Where the Court makes a direct sanctions order, the relevant recognised professional body must take all necessary steps to give effect to the order.

(3) A direct sanctions order must not specify a contribution as mentioned in paragraph (1)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(4) In this Article and Article 350P, “relevant recognised professional body”, in relation to a person who is acting as an insolvency practitioner, means the recognised professional body by virtue of which the person is authorised so to act.

Application for, and power to make, direct sanctions order

350P.—(1) The Department may apply to the High Court for a direct sanctions order to be made against a person if it appears to the Department that it would be in the public interest for the order to be made.

(2) The Department must send a copy of the application to the relevant recognised professional body.

(3) The Court may make a direct sanctions order against a person where, on an application under this Article, the Court is satisfied that condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person.

(4) The conditions are set out in Article 350Q.

(5) In deciding whether to make a direct sanctions order against a person the Court must have regard to the extent to which?—

(a) the relevant recognised professional body has taken action against the person in respect of the failure mentioned in condition 1; and

(b) that action is sufficient to address the failure.

Direct sanctions order: conditions

350Q.—(1) Condition 1 is that the person, in acting as an insolvency practitioner or in connection with any appointment as such, has failed to comply with?—

(a) a requirement imposed by the rules of the relevant recognised professional body;

(b) any standards, or code of ethics, for the insolvency-practitioner profession adopted from time to time by the relevant recognised professional body.

(2) Condition 2 is that the person?—

(a) is not a fit and proper person to act as an insolvency practitioner;

(b) is a fit and proper person to act as an insolvency practitioner only in relation to companies, but the person’s authorisation is not so limited; or

(c) is a fit and proper person to act as an insolvency practitioner only in relation to individuals, but the person’s authorisation is not so limited.

(3) Condition 3 is that it is appropriate for the person’s authorisation to act as an insolvency practitioner to be suspended for a period or until one or more requirements are complied with.

(4) Condition 4 is that it is appropriate to impose other restrictions on the person acting as an insolvency practitioner.

(5) Condition 5 is that loss has been suffered as a result of the failure mentioned in condition 1 by one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(6) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.

Direct sanctions direction instead of order

350R.—(1) The Department may give a direction (a “direct sanctions direction”) in relation to a person acting as an insolvency practitioner to the relevant recognised professional body (instead of applying, or continuing with an application, for a direct sanctions order against the person) if the Department is satisfied that?—

(a) condition 1 and at least one of conditions 2, 3, 4 and 5 are met in relation to the person (see Article 350Q); and

(b) it is in the public interest for the direction to be given.

(2) But the Department may not give a direct sanctions direction in relation to a person without that person’s consent.

(3) A direct sanctions direction may require the relevant recognised professional body to take all necessary steps to secure that?—

(a) the person is no longer authorised (whether fully or partially) to act as an insolvency practitioner;

(b) the person is no longer fully authorised to act as an insolvency practitioner but remains partially authorised to act as such either in relation to companies or individuals, as specified in the direction;

(c) the person’s authorisation to act as an insolvency practitioner is suspended for the period specified in the direction or until such time as the requirements so specified are complied with;

(d) the person must comply with such other requirements as may be specified in the direction while acting as an insolvency practitioner;

(e) the person makes such contribution as may be specified in the direction to one or more creditors of a company, individual or insolvent partnership in relation to which the person is acting or has acted as an insolvency practitioner.

(4) A direct sanctions direction must not specify a contribution as mentioned in paragraph (3)(e) which is more than the remuneration that the person has received or will receive in respect of acting as an insolvency practitioner in the case.

(5) In this Article “relevant recognised professional body” has the same meaning as in Article 350O.”." — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

New Clause

Amendment No 41 made:

After clause 14 insert

"Power for Department to obtain information

14E. After Article 350R of the Insolvency Order (inserted by section 14D) insert?—

“General

Power for Department to obtain information

350S.—(1) A person mentioned in paragraph (2) must give the Department such information as the Department may by notice in writing require for the exercise of the Department’s functions under this Part.

(2) Those persons are?—

(a) a recognised professional body;

(b) any individual who is or has been authorised under Article 349A to act as an insolvency practitioner;

(c) any person who is connected to such an individual.

(3) A person is connected to an individual who is or has been authorised to act as an insolvency practitioner if, at any time during the authorisation?—

(a) the person was an employee of the individual;

(b) the person acted on behalf of the individual in any other way;

(c) the person employed the individual;

(d) the person was a fellow employee of the individual’s employer;

(e) in a case where the individual was employed by a firm, partnership or company, the person was a member of the firm or partnership or (as the case may be) a director of the company.

(4) In imposing a requirement under paragraph (1) the Department may specify?—

(a) the time period within which the information in question is to be given; and

(b) the manner in which it is to be verified.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

New Clause

Amendment No 42 made:

After clause 14 insert

"Compliance orders

14F. After Article 350S of the Insolvency Order (inserted by section 14E) insert?—

“Compliance orders

350T.—(1) If at any time it appears to the Department that?—

(a) a recognised professional body has failed to comply with a requirement imposed on it by or by virtue of this Part; or

(b) any other person has failed to comply with a requirement imposed on the person by virtue of Article 350S,

the Department may make an application to the High Court.

(2) If, on an application under this Article, the Court decides that the body or other person has failed to comply with the requirement in question, it may order the body or person to take such steps as the Court considers will secure that the requirement is complied with.”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

New Clause

Amendment No 43 made:

After clause 14 insert

"Power to establish single regulator of insolvency practitioners

Power to establish single regulator of insolvency practitioners

14G.—(1) The Department may by regulations designate a body for the purposes of?—

(a) authorising persons to act as insolvency practitioners; and

(b) regulating persons acting as such.

(2) The designated body may be either?—

(a) a body corporate established by the regulations; or

(b) a body (whether a body corporate or an unincorporated association) already in existence when the regulations are made (an “existing body”).

(3) The regulations may, in particular, confer the following functions on the designated body?—

(a) establishing criteria for determining whether a person is a fit and proper person to act as an insolvency practitioner;

(b) establishing the requirements as to education, practical training and experience which a person must meet in order to act as an insolvency practitioner;

(c) establishing and maintaining a system for providing full authorisation or partial authorisation to persons who meet those criteria and requirements;

(d) imposing technical standards for persons so authorised and enforcing compliance with those standards;

(e) imposing professional and ethical standards for persons so authorised and enforcing compliance with those standards;

(f) monitoring the performance and conduct of persons so authorised;

(g) investigating complaints made against, and other matters concerning the performance or conduct of, persons so authorised.

(4) The regulations may require the designated body, in discharging regulatory functions, so far as is reasonably practicable, to act in a way?—

(a) which is compatible with the regulatory objectives; and

(b) which the body considers most appropriate for the purpose of meeting those objectives.

(5) Provision made under subsection (3)(d) or (3)(e) for the enforcement of the standards concerned may include provision enabling the designated body to impose a financial penalty on a person who is or has been authorised to act as an insolvency practitioner.

(6) The regulations may, in particular, include provision for the purpose of treating a person authorised to act as an insolvency practitioner by virtue of being a member of a professional body recognised under Article 350 of the Insolvency Order immediately before the regulations come into force as authorised to act as an insolvency practitioner by the body designated by the regulations after that time.

(7) Expressions used in this section which are defined for the purposes of Part 12 of the Insolvency Order have the same meaning in this section as in that Part.

(8) Regulations under this section shall not be made unless a draft of the regulations has been laid before and approved by resolution of the Assembly.

(9) Section 14H makes further provision about regulations under this section which designate an existing body.

(10) Schedule A1 makes supplementary provision in relation to the designation of a body by regulations under this section.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

New Clause

Robin Newton (DUP, Belfast East)

Amendment No 44 is consequential to amendment No 43.

Amendment No 44 made:

After clause 14 insert

"Regulations under section 14G: designation of existing body

14H.—(1) The Department may make regulations under section 14G designating an existing body only if it appears to the Department that?—

(a) the body is able and willing to exercise the functions that would be conferred by the regulations; and

(b) the body has arrangements in place relating to the exercise of those functions which are such as to be likely to ensure that the conditions in subsection (2) are met.

(2) The conditions are?—

(a) that the functions in question will be exercised effectively; and

(b) where the regulations are to contain any requirements or other provisions prescribed under subsection (3), that those functions will be exercised in accordance with any such requirements or provisions.

(3) Regulations which designate an existing body may contain such requirements or other provisions relating to the exercise of the functions by the designated body as appear to the Department to be appropriate.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New clause ordered to stand part of the Bill.

Clause 15 (Power to make regulations)

Robin Newton (DUP, Belfast East)

Amendment No 45 is consequential to amendment No 37.

Amendment No 45 made:

In page 14, line 2, at end insert

"(5) After that paragraph insert?—

“(3) In making regulations under this Article, the Department must have regard to the regulatory objectives (as defined by Article 350C(3)).”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Clause 15, as amended, ordered to stand part of the Bill.

Clauses 16 to 21 ordered to stand part of the Bill.

New Schedule

Amendment No 46 made:

Before schedule 1 insert

"SCHEDULE A1

SECTION 14G(10).

SINGLE REGULATOR OF INSOLVENCY PRACTITIONERS: SUPPLEMENTARY PROVISION

OPERATION OF THIS SCHEDULE

1.—(1) This Schedule has effect in relation to regulations under section 14G designating a body (referred to in this Schedule as “the Regulations”) as follows?—

(a) paragraphs 2 to 13 have effect where the Regulations establish the body;

(b) paragraphs 6, 7 and 9 to 13 have effect where the Regulations designate an existing body (see section 14G(2)(b));

(c) paragraph 14 also has effect where the Regulations designate an existing body that is an unincorporated association.

(2) Provision made in the Regulations by virtue of paragraph 6 or 12, where that paragraph has effect as mentioned in sub-paragraph (1)(b), may only apply in relation to?—

(a) things done by or in relation to the body in or in connection with the exercise of functions conferred on it by the Regulations; and

(b) functions of the body which are functions so conferred.

NAME, MEMBERS AND CHAIR

2.—(1) The Regulations must prescribe the name by which the body is to be known.

(2) The Regulations must provide that the members of the body must be appointed by the Department after such consultation as the Department thinks appropriate.

(3) The Regulations must provide that the Department must appoint one of the members as the chair of the body.

(4) The Regulations may include provision about?—

(a) the terms on which the members of the body hold and vacate office;

(b) the terms on which the person appointed as the chair holds and vacates that office.

REMUNERATION ETC.

3.—(1) The Regulations must provide that the body must pay to its chair and members such remuneration and allowances in respect of expenses properly incurred by them in the exercise of their functions as the Department may determine.

(2) The Regulations must provide that, as regards any member (including the chair) in whose case the Department so determines, the body must pay or make provision for the payment of?—

(a) such pension, allowance or gratuity to or in respect of that person on retirement or death as the Department may determine; or

(b) such contributions or other payment towards the provision of such a pension, allowance or gratuity as the Department may determine.

(3) The Regulations must provide that where?—

(a) a person ceases to be a member of the body otherwise than on the expiry of the term of office; and

(b) it appears to the Department that there are special circumstances which make it right for that person to be compensated,

the body must make a payment to the person by way of compensation of such amount as the Department may determine.

STAFF

4. The Regulations must provide that?—

(a) the body may appoint such persons to be its employees as the body considers appropriate; and

(b) the employees are to be appointed on such terms and conditions as the body may determine.

PROCEEDINGS

5.—(1) The Regulations may make provision about the proceedings of the body.

(2) The Regulations may, in particular?—

(a) authorise the body to exercise any function by means of committees consisting wholly or partly of members of the body;

(b) provide that the validity of proceedings of the body, or of any such committee, is not affected by any vacancy among the members or any defect in the appointment of a member.

FEES

6.—(1) The Regulations may make provision?—

(a) about the setting and charging of fees by the body in connection with the exercise of its functions;

(b) for the retention by the body of any such fees payable to it;

(c) about the application by the body of such fees.

(2) The Regulations may, in particular, make provision?—

(a) for the body to be able to set such fees as appear to it to be sufficient to defray the expenses of the body exercising its functions, taking one year with another;

(b) for the setting of fees by the body to be subject to the approval of the Department.

(3) The expenses referred to in sub-paragraph (2)(a) include any expenses incurred by the body on such staff, accommodation, services and other facilities as appear to it to be necessary or expedient for the proper exercise of its functions.

CONSULTATION

7. The Regulations may make provision as to the circumstances and manner in which the body must consult others before exercising any function conferred on it by the Regulations.

TRAINING AND OTHER SERVICES

8.—(1) The Regulations may make provision authorising the body to provide training or other services to any person.

(2) The Regulations may make provision authorising the body?—

(a) to charge for the provision of any such training or other services; and

(b) to calculate any such charge on the basis that it considers to be the appropriate commercial basis.

REPORT AND ACCOUNTS

9.—(1) The Regulations must require the body, at least once in each 12 month period, to report to the Department on?—

(a) the exercise of the functions conferred on it by the Regulations; and

(b) such other matters as may be prescribed in the Regulations.

(2) The Regulations must require the Department to lay before the Assembly a copy of each report received under this paragraph.

(3) Unless section 394 of the Companies Act 2006 applies to the body (duty on every company to prepare individual accounts), the Regulations must provide that the Department may give directions to the body with respect to the preparation of its accounts.

(4) Unless the body falls within sub-paragraph (5), the Regulations must provide that the Department may give directions to the body with respect to the audit of its accounts.

(5) The body falls within this sub-paragraph if it is a company whose accounts?—

(a) are required to be audited in accordance with Part 16 of the Companies Act 2006 (see section 475 of that Act); or

(b) are exempt from the requirements of that Part under section 482 of that Act (non-profit making companies subject to public sector audit).

(6) The Regulations may provide that, whether or not section 394 of the Companies Act 2006 applies to the body, the Department may direct that any provisions of that Act specified in the directions are to apply to the body with or without modifications.

FUNDING

10. The Regulations may provide that the Department may make grants to the body.

FINANCIAL PENALTIES

11.—(1) This paragraph applies where the Regulations include provision enabling the body to impose a financial penalty on a person who is, or has been, authorised to act as an insolvency practitioner (see section 14G(5)).

(2) The Regulations?—

(a) must include provision about how the body is to determine the amount of a penalty; and

(b) may, in particular, prescribe a minimum or maximum amount.

(3) The Regulations must provide that, unless the Department (with the consent of the Department of Finance and Personnel) otherwise directs, income from penalties imposed by the body is to be paid into the Consolidated Fund.

(4) The Regulations may also, in particular?—

(a) include provision for a penalty imposed by the body to be enforced as a debt;

(b) prescribe conditions that must be met before any action to enforce a penalty may be taken.

STATUS ETC.

12. The Regulations must provide that?—

(a) the body is not to be regarded as acting on behalf of the Crown; and

(b) its members, officers and employees are not to be regarded as Crown servants.

TRANSFER SCHEMES

13.—(1) This paragraph applies if the Regulations make provision designating a body (whether one established by the Regulations or one already in existence) in place of a body designated by earlier regulations under section 14G; and those bodies are referred to as the “new body” and the “former body” respectively.

(2) The Regulations may make provision authorising the Department to make a scheme (a “transfer scheme”) for the transfer of property, rights and liabilities from the former body to the new body.

(3) The Regulations may provide that a transfer scheme may include provision?—

(a) about the transfer of property, rights and liabilities that could not otherwise be transferred;

(b) about the transfer of property acquired, and rights and liabilities arising, after the making of the scheme.

(4) The Regulations may provide that a transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular?—

(a) create rights, or impose liabilities, in relation to property or rights transferred;

(b) make provision about the continuing effect of things done by the former body in respect of anything transferred;

(c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the former body in respect of anything transferred;

(d) make provision for references to the former body in an instrument or other document in respect of anything transferred to be treated as references to the new body;

(e) make provision for the shared ownership or use of property;

(f) if the TUPE regulations do not apply to in relation to the transfer, make provision which is the same or similar.

(5) The Regulations must provide that, where the former body is an existing body, a transfer scheme may only make provision in relation to?—

(a) things done by or in relation to the former body in or in connection with the exercise of functions conferred on it by previous regulations under section 14G; and

(b) functions of the body which are functions so conferred.

(6) In sub-paragraph (4)(f), “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246).

(7) In this paragraph?—

(a) references to rights and liabilities include rights and liabilities relating to a contract of employment;

(b) references to the transfer of property include the grant of a lease.

ADDITIONAL PROVISION WHERE BODY IS UNINCORPORATED ASSOCIATION

14.—(1) This paragraph applies where the body is an unincorporated association.

(2) The Regulations must provide that any relevant proceedings may be brought by or against the body in the name of any body corporate whose constitution provides for the establishment of the body.

(3) In sub-paragraph (2) “relevant proceedings” means proceedings brought in or in connection with the exercise of any function conferred on the body by the Regulations.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Before schedule 1 insert

"SCHEDULE A1

SECTION 14G(10).

SINGLE REGULATOR OF INSOLVENCY PRACTITIONERS: SUPPLEMENTARY PROVISION

OPERATION OF THIS SCHEDULE

1.—(1) This Schedule has effect in relation to regulations under section 14G designating a body (referred to in this Schedule as “the Regulations”) as follows?—

(a) paragraphs 2 to 13 have effect where the Regulations establish the body;

(b) paragraphs 6, 7 and 9 to 13 have effect where the Regulations designate an existing body (see section 14G(2)(b));

(c) paragraph 14 also has effect where the Regulations designate an existing body that is an unincorporated association.

(2) Provision made in the Regulations by virtue of paragraph 6 or 12, where that paragraph has effect as mentioned in sub-paragraph (1)(b), may only apply in relation to?—

(a) things done by or in relation to the body in or in connection with the exercise of functions conferred on it by the Regulations; and

(b) functions of the body which are functions so conferred.

NAME, MEMBERS AND CHAIR

2.—(1) The Regulations must prescribe the name by which the body is to be known.

(2) The Regulations must provide that the members of the body must be appointed by the Department after such consultation as the Department thinks appropriate.

(3) The Regulations must provide that the Department must appoint one of the members as the chair of the body.

(4) The Regulations may include provision about?—

(a) the terms on which the members of the body hold and vacate office;

(b) the terms on which the person appointed as the chair holds and vacates that office.

REMUNERATION ETC.

3.—(1) The Regulations must provide that the body must pay to its chair and members such remuneration and allowances in respect of expenses properly incurred by them in the exercise of their functions as the Department may determine.

(2) The Regulations must provide that, as regards any member (including the chair) in whose case the Department so determines, the body must pay or make provision for the payment of?—

(a) such pension, allowance or gratuity to or in respect of that person on retirement or death as the Department may determine; or

(b) such contributions or other payment towards the provision of such a pension, allowance or gratuity as the Department may determine.

(3) The Regulations must provide that where?—

(a) a person ceases to be a member of the body otherwise than on the expiry of the term of office; and

(b) it appears to the Department that there are special circumstances which make it right for that person to be compensated,

the body must make a payment to the person by way of compensation of such amount as the Department may determine.

STAFF

4. The Regulations must provide that?—

(a) the body may appoint such persons to be its employees as the body considers appropriate; and

(b) the employees are to be appointed on such terms and conditions as the body may determine.

PROCEEDINGS

5.—(1) The Regulations may make provision about the proceedings of the body.

(2) The Regulations may, in particular?—

(a) authorise the body to exercise any function by means of committees consisting wholly or partly of members of the body;

(b) provide that the validity of proceedings of the body, or of any such committee, is not affected by any vacancy among the members or any defect in the appointment of a member.

FEES

6.—(1) The Regulations may make provision?—

(a) about the setting and charging of fees by the body in connection with the exercise of its functions;

(b) for the retention by the body of any such fees payable to it;

(c) about the application by the body of such fees.

(2) The Regulations may, in particular, make provision?—

(a) for the body to be able to set such fees as appear to it to be sufficient to defray the expenses of the body exercising its functions, taking one year with another;

(b) for the setting of fees by the body to be subject to the approval of the Department.

(3) The expenses referred to in sub-paragraph (2)(a) include any expenses incurred by the body on such staff, accommodation, services and other facilities as appear to it to be necessary or expedient for the proper exercise of its functions.

CONSULTATION

7. The Regulations may make provision as to the circumstances and manner in which the body must consult others before exercising any function conferred on it by the Regulations.

TRAINING AND OTHER SERVICES

8.—(1) The Regulations may make provision authorising the body to provide training or other services to any person.

(2) The Regulations may make provision authorising the body?—

(a) to charge for the provision of any such training or other services; and

(b) to calculate any such charge on the basis that it considers to be the appropriate commercial basis.

REPORT AND ACCOUNTS

9.—(1) The Regulations must require the body, at least once in each 12 month period, to report to the Department on?—

(a) the exercise of the functions conferred on it by the Regulations; and

(b) such other matters as may be prescribed in the Regulations.

(2) The Regulations must require the Department to lay before the Assembly a copy of each report received under this paragraph.

(3) Unless section 394 of the Companies Act 2006 applies to the body (duty on every company to prepare individual accounts), the Regulations must provide that the Department may give directions to the body with respect to the preparation of its accounts.

(4) Unless the body falls within sub-paragraph (5), the Regulations must provide that the Department may give directions to the body with respect to the audit of its accounts.

(5) The body falls within this sub-paragraph if it is a company whose accounts?—

(a) are required to be audited in accordance with Part 16 of the Companies Act 2006 (see section 475 of that Act); or

(b) are exempt from the requirements of that Part under section 482 of that Act (non-profit making companies subject to public sector audit).

(6) The Regulations may provide that, whether or not section 394 of the Companies Act 2006 applies to the body, the Department may direct that any provisions of that Act specified in the directions are to apply to the body with or without modifications.

FUNDING

10. The Regulations may provide that the Department may make grants to the body.

FINANCIAL PENALTIES

11.—(1) This paragraph applies where the Regulations include provision enabling the body to impose a financial penalty on a person who is, or has been, authorised to act as an insolvency practitioner (see section 14G(5)).

(2) The Regulations?—

(a) must include provision about how the body is to determine the amount of a penalty; and

(b) may, in particular, prescribe a minimum or maximum amount.

(3) The Regulations must provide that, unless the Department (with the consent of the Department of Finance and Personnel) otherwise directs, income from penalties imposed by the body is to be paid into the Consolidated Fund.

(4) The Regulations may also, in particular?—

(a) include provision for a penalty imposed by the body to be enforced as a debt;

(b) prescribe conditions that must be met before any action to enforce a penalty may be taken.

STATUS ETC.

12. The Regulations must provide that?—

(a) the body is not to be regarded as acting on behalf of the Crown; and

(b) its members, officers and employees are not to be regarded as Crown servants.

TRANSFER SCHEMES

13.—(1) This paragraph applies if the Regulations make provision designating a body (whether one established by the Regulations or one already in existence) in place of a body designated by earlier regulations under section 14G; and those bodies are referred to as the “new body” and the “former body” respectively.

(2) The Regulations may make provision authorising the Department to make a scheme (a “transfer scheme”) for the transfer of property, rights and liabilities from the former body to the new body.

(3) The Regulations may provide that a transfer scheme may include provision?—

(a) about the transfer of property, rights and liabilities that could not otherwise be transferred;

(b) about the transfer of property acquired, and rights and liabilities arising, after the making of the scheme.

(4) The Regulations may provide that a transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular?—

(a) create rights, or impose liabilities, in relation to property or rights transferred;

(b) make provision about the continuing effect of things done by the former body in respect of anything transferred;

(c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the former body in respect of anything transferred;

(d) make provision for references to the former body in an instrument or other document in respect of anything transferred to be treated as references to the new body;

(e) make provision for the shared ownership or use of property;

(f) if the TUPE regulations do not apply to in relation to the transfer, make provision which is the same or similar.

(5) The Regulations must provide that, where the former body is an existing body, a transfer scheme may only make provision in relation to?—

(a) things done by or in relation to the former body in or in connection with the exercise of functions conferred on it by previous regulations under section 14G; and

(b) functions of the body which are functions so conferred.

(6) In sub-paragraph (4)(f), “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246).

(7) In this paragraph?—

(a) references to rights and liabilities include rights and liabilities relating to a contract of employment;

(b) references to the transfer of property include the grant of a lease.

ADDITIONAL PROVISION WHERE BODY IS UNINCORPORATED ASSOCIATION

14.—(1) This paragraph applies where the body is an unincorporated association.

(2) The Regulations must provide that any relevant proceedings may be brought by or against the body in the name of any body corporate whose constitution provides for the establishment of the body.

(3) In sub-paragraph (2) “relevant proceedings” means proceedings brought in or in connection with the exercise of any function conferred on the body by the Regulations.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

New schedule agreed to.

Schedule 1 agreed to.

Schedule 2 (Minor and consequential amendments)

Amendment No 47 made:

In page 18, line 15, at end insert

"3A. In Article 14(2), omit “or authorised to act as nominee,”.

3B. In Article 15(4), omit “, or authorised to act as nominee,”.

3C. In Article 17(2), omit “or authorised to act as nominee,”.

3D. In Article 20(5), omit “or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 48 made:

In page 18, line 28, at end insert

"12A. In Schedule A1?—

(a) in paragraph 38(1), omit “, or authorised to act as nominee,”;

(b) in paragraph 41(2), omit “, or authorised to act as nominee,”;

(c) in paragraph 43(1), omit “, or authorised to act as nominee,”;

(d) in paragraph 49(6), omit “, or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Schedule 2, as amended, agreed to.

Schedule 3 (Repeals)

Amendment No 49 made:

In page 19, line 42, in second column, at end insert

"In Article 14(2), the words “or authorised to act as nominee,”.

In Article 15(4), the words “, or authorised to act as nominee,”.

In Article 17(2), the words “or authorised to act as nominee,”.

In Article 20(5), the words “or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Amendment No 50 made:

In page 20, line 29, in second column, at end insert

"In Schedule A1—

(a) in paragraph 38(1), the words “, or authorised to act as nominee,”;

(b) in paragraph 41(2), the words “, or authorised to act as nominee,”;

(c) in paragraph 43(1), the words “, or authorised to act as nominee,”;

(d) in paragraph 49(6), the words “, or authorised to act as supervisor,”.". — [Mr Bell (The Minister of Enterprise, Trade and Investment).]

Schedule 3, as amended, agreed to.

Long title agreed to.

Robin Newton (DUP, Belfast East)

That concludes the Consideration Stage of the Insolvency (Amendment) Bill. The Bill stands referred to the Speaker.

Committee Business

Pat Sheehan (Sinn Féin, Belfast West)

I beg to move

That, in accordance with Standing Order 33(4), the period referred to in Standing Order 33(2) be extended to 30 September 2015, in relation to the Committee Stage of the Public Services Ombudsperson Bill [NIA 47/11-16].

Question put and agreed to. Resolved:

That, in accordance with Standing Order 33(4), the period referred to in Standing Order 33(2) be extended to 30 September 2015, in relation to the Committee Stage of the Public Services Ombudsperson Bill [NIA 47/11-16].

Robin Newton (DUP, Belfast East)

The Business Committee has agreed to allow up to two hours for the debate. The proposer will have 15 minutes to propose the motion and 15 minutes to make a winding-up speech. All other Members who wish to speak will have five minutes.

Daithí McKay (Sinn Féin, North Antrim)

I beg to move

That this Assembly approves the report of the Committee for Finance and Personnel on its review of the operation of the Barnett formula (NIA 254/11-15); and calls on the Minister of Finance and Personnel, in conjunction with Executive colleagues, to implement, as applicable, the recommendations contained therein.

Go raibh maith agat, a Phríomh-LeasCheann Comhairle. I open what I believe to be a very important debate strategically. While it focuses on our future funding arrangements, the issues are ultimately concerned with the longer-term prosperity of our local economy and the wider community.

In terms of the headlines arising from the review of the operation of the Barnett formula, let me make two points clear up front: first, the Committee is not necessarily calling for the Barnett formula to be scrapped, at least not in the short-term; secondly, the Committee has identified two key areas of risk. The possibility exists that, as a result of the way in which the formula works, we could end up being significantly underfunded in relative terms, certainly when we turn the corner with austerity, which, I am sure, we all hope is sooner rather than later. There is also the very real possibility that the status quo will be changed for us as a result of wider constitutional reform across the water in the wake of the Scottish independence referendum and the May general election.

The Committee had the privilege of a briefing from Professor David Heald, one of the leading lights on devolution funding, who is accredited with giving the Barnett formula its name. In light of the vow by Messrs Cameron, Clegg and Miliband before the independence referendum in Scotland, Professor Heald had pointed out that that could mean different things, including that Barnett is kept in name only; that the population-based mechanism continues and is combined with a needs assessment; and/or that it will be about maintaining Scotland's level of per capita spending. In short, therefore, we do not know what the future holds for how or whether the Barnett formula continues.

In February 2012, the Committee received preliminary evidence from a panel of expert witnesses that indicated that, whilst historically the Barnett formula, or the original block allocation, may have worked in our favour due to various factors, we could soon reach the point at which we are underfunded in terms of relative need. In light of this and the apparent commitments to retain the formula, the Committee commenced its review last autumn, taking evidence from a range of expert witnesses over seven months. Research was commissioned, and several members visited Edinburgh in May for discussions with senior Scottish Government officials and members of the Scottish Parliament’s Finance Committee.

I expect others may wish to cover some of the detail of the Committee’s findings during the debate, including the pros and cons of the formula. I shall, therefore, focus in very broad terms on the four key areas that needed to be addressed.

I mentioned the risk of being underfunded. A number of experts highlighted how convergence with per capita spending in England — the Barnett squeeze, as it is known — means that the North is likely to be in the same position as Wales in a few years' time, whereby funding has gone below the level that needs-based formulae would provide. In this regard, Professor Alan Trench cautioned:

"the point at which spending matches a reasonable estimate of relative need may not be far away. At that point, life could get very tough indeed for a Finance Minister"

— if it is not tough enough already.

Most of the experts agreed that convergence appears to have occurred in the North to some extent, although the influences and complexities of that were discussed in some detail. While convergence can slow or reverse during a period of austerity, the Committee noted that it will depend on the particular mix of influencing factors that exist at any point in time. Moreover, Dr Gudgin cautioned:

"The worst situation for [the North] would be if real spending was stagnant or falling while prices were rising. [The North] would then be hit twice, once by the real fall which would affect all regions and secondly by a falling share of national spending due to inflation."

The Committee also examined the different considerations in needs assessment. The key point is that it has the potential to be controversial in the approach taken and in the definitions and data used. As such, the Committee calls for the Department of Finance and Personnel and the Executive to do their homework on those complex issues. That will be important by way of contingency planning for circumstances in which we need to promote or respond to proposals for change.

It is reasonably foreseeable that external pressure for change will arise from the increased fiscal devolution and wider constitutional reform across the water. The Committee noted several issues that may lead to increased complexity and contention, ultimately influencing the future of the Barnett formula and devolution funding generally.

The first issue is the implications of the further devolution of fiscal powers. That could lead to a diminished funding allocation through the formula and increasingly notional deductions from the block grant. There is the big question of what principles will be used for block grant adjustments and whether they will apply across the devolved jurisdictions. The Committee has queried, for example, whether the no detriment principle from the Smith Commission in Scotland will also apply here in calculating the cost of applying a reduced corporation tax rate. If so, that could reduce the hit on our block grant quite substantially. I refer Members to paragraphs 40 and 41 of the report.

The Committee’s review also examined other topical issues that could have implications for devolution funding arrangements. They include the proposal for English votes for English laws, more often referred to as "EVEL"; the potential for devolution within England; and the tie between the Barnett formula and policy decisions in England. It is clear that those issues could further complicate things and lead to disputes, which could act as a further impetus for more thoroughgoing reform.

The other two areas that the Committee identified as needing to be addressed relate to the clear lack of transparency and accountability in Treasury’s decision-making and the dearth of reliable, independent public finance data. It is clear that there are widely held concerns about the data underpinning the Barnett decisions and a general recognition that greater transparency and openness are required. I will not rehearse the evidence from the expert witnesses. However, Committee members, during their visit to Edinburgh, noted an interesting point that the Scottish Parliament’s Finance Committee had picked up on in recent evidence from the Institute for Fiscal Studies (IFS). The IFS pointed out that after it "pestered the Treasury", it managed to get hold of the spreadsheets that are used for the more detailed Barnett calculations and which are unpublished. The IFS could not see any reason why that information could not be published by Treasury with each spending review or Budget statement.

Closer to home, it was clear from the Department’s previous evidence to the Committee that DFP officials have been unfairly disadvantaged in their negotiations with Treasury on the devolution of corporation tax. It was noted that Treasury had not shared all the detail of its calculations. The obvious question arising from that is this: how can that be acceptable to any devolved Government or Administration?

Also related to transparency is the fact that the Committee heard about some of the more notorious examples of arbitrary decision-making by Treasury on what does or does not attract Barnett consequentials. They included the initial decisions that infrastructure spending on the 2012 London Olympics, Crossrail and Kew Gardens would not attract consequentials, as they were classified as an activity in England benefiting all the jurisdictions. In evidence, Professor Holtham described one of those examples more colourfully than I could. He stated:

"The Royal Botanic Gardens at Kew is regarded as of national significance and, therefore, is excluded from having Barnett consequentials. However, the National Botanic Garden of Wales falls entirely to the cost of the Welsh Government".

He said:

"How the hell is Kew regarded as being of national significance, when the National Botanic Garden of Wales is not? That is unfair. For once, the Treasury gave way and put in a small consequential for expenditure on Kew gardens. It was very small."

In his evidence, Professor Trench highlighted the failure of the existing dispute resolution arrangements when they were invoked by the devolved Governments over the issue of the 2012 London Olympics. He stated:

"Essentially, the Treasury said no, that it had made its decision and that it would not budge. So, even though there was a very strong argument that that had taken quite a lot of spending out of devolved Governments' pockets and that it was completely inappropriate... they still could not persuade the Treasury through the disputes resolution panel, which, for these purposes, was Francis Maude, the Cabinet Office Minister... So, effectively, the devolved Governments got nowhere with that process, and that is a problem that will remain built into the present structure of resolving disputes, particularly finance disputes."

Related to that point, the Committee heard various suggestions for improvements to the arrangements for making decisions and resolving associated disputes. Those are outlined in the Committee’s report and discussed in detail in the source evidence. Members may wish to pick up on some of the suggestions during the debate.

The Committee has not been prescriptive on the solutions covered. Instead, it is calling on the Minister to engage with her counterparts in Scotland and Wales, with a view to presenting jointly agreed proposals to the Government in Westminster.

More generally, the Committee is calling on the Department and the wider Executive to act now and develop a well-thought-out position on funding arrangements, with a view to influencing the shape of things to come. I look forward to the contributions from Members and the Minister and commend the report to the House.

Robin Newton (DUP, Belfast East)

The Business Committee has arranged to meet immediately after the lunchtime suspension today. I propose, therefore, by leave of the Assembly, to suspend the sitting until 2.00 pm. The first item of business when we return will be Question Time.

The debate stood suspended. The sitting was suspended at 1.02 pm.

On resuming (Mr Deputy Speaker [Mr Beggs] in the Chair) —

Oral Answers to Questions — Education

Roy Beggs (UUP, East Antrim)

Questions 1, 8, 9 and 11 have been withdrawn.

William Humphrey (DUP, Belfast North)

2. Mr Humphrey asked the Minister of Education what impact the proposed new-build development of Glenwood Primary School will have on the decision in relation to the future of Malvern Primary School. (AQO 8462/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

Glenwood Primary School is one of the 22 new-build projects that I announced would advance in planning in January 2013. As part of my recent decision on Malvern Primary School, I asked the Education Authority to draw up firm proposals for a wider area solution, encompassing Edenbrooke, Glenwood and Malvern primary schools. That will assist in giving clarity to the size of the Glenwood Primary School new-build project. The Education Authority's Belfast region is preparing the business case for the new Glenwood Primary School, which will justify the required size and consider a revised area solution.

William Humphrey (DUP, Belfast North)

I thank the Minister for his answer. I appreciate the work that he has done in relation to schools in the greater Shankill, not least Malvern Primary School, and I appreciate the decoupling of the Malvern and Glenwood schools. The Minister will know that Glenwood is the hub school for the greater Shankill, with more than 500 children, and is vital to the education of the young people in that area. Given its importance and the key role that it plays, can the Minister provide certainty to the school and its board of governors that the new build will go ahead, and that it will go ahead as soon as is possible?

John O'Dowd (Sinn Féin, Upper Bann)

I have no hesitation in doing so. There was some concern, and perhaps confusion, in relation to comments around the possible negative impact on Glenwood Primary School of Malvern Primary School being kept open. That caused concern in both schools and, indeed, the wider community, and I hope we have reassured the community that that is not the case. This is a normal planning process that we have to go through with every building application. It is my intention to deliver a new Glenwood Primary School, and my decision on Malvern Primary School will not divert me from that.

Caitriona Ruane (Sinn Féin, South Down)

3. Ms Ruane asked the Minister of Education, following the establishment of a new 26-place part-time nursery unit at Iveagh Primary School in Rathfriland, to outline the benefits that this new facility will bring to families in the Rathfriland area. (AQO 8463/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

On 2 June, I approved the establishment of a new 26-place part-time nursery unit at Iveagh Primary School in Rathfriland. That approval was in response to the publication in October 2014 by the then Southern Education and Library Board of a development proposal to establish the new provision with effect from 1 September 2015 or as soon as possible thereafter. The new nursery unit will replace the current reception provision at the school. Having reviewed the advice from officials, I was satisfied that the evidence clearly demonstrated a need for more preschool places for the benefit of children in the Rathfriland area. It is well known that high-quality preschool education has a positive long-term impact on children’s educational outcomes. The new provision at Iveagh Primary School will help achieve that aim in the Rathfriland area.

Caitriona Ruane (Sinn Féin, South Down)

Gabhaim buíochas leis an Aire as an fhreagra sin. I thank the Minister for his answer. I appreciate the decision and share his view on the importance of early years. Will he outline the rationale for the modification of the implementation date for the new nursery to September 2016?

John O'Dowd (Sinn Féin, Upper Bann)

I thank the Member for her question and comments. We have modified it to September 2016 because the decision-making process meant that my decision did not come until the start of June. That meant that the preschool applications for this year were quite well advanced, so we felt that it was only right and proper to delay the Rathfriland decision until 2015-16 so as to not interfere with this year's applications and to ensure that we can put in place the infrastructure required in the school for this much-welcomed development.

Seán Rogers (Social Democratic and Labour Party, South Down)

I welcome that new nursery provision in the Rathfriland area. In the flexibility around nursery education, a child normally gets five three-hour sessions per week, but have you ever thought about introducing flexibility so that that could be changed to three five-hour sessions?

John O'Dowd (Sinn Féin, Upper Bann)

We carried out a review of preschool education a number of years ago, and we introduced our Learning to Learn policy within the last two years. We now believe that we have in place a policy that benefits the needs of children. However, if there are imaginative proposals coming forward that can be accommodated within the infrastructure of a school, each one is worth looking at on its own merits.

Roy Beggs (UUP, East Antrim)

David McNarry is not in his place.

Paul Girvan (DUP, South Antrim)

5. Mr Girvan asked the Minister of Education for an update on area-based planning for primary and post-primary schools. (AQO 8465/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

New area planning governance structures are being implemented at a strategic, working-group and local level. They aim to improve the area planning process by refreshing and enhancing strategic directional and operational consistency across all Education Authority regions. They will also give opportunities for increased engagement with all key stakeholders and stakeholder bodies.

The area plans for primary and post-primary schools are to be reviewed and consulted on by the Education Authority. They will then be published together for all regions by July 2016. The plans will be reviewed on a three-year cycle.

The annual action plan will also accompany the area plan. That will reflect how the needs of all sectors will be provided for. It will highlight those schools that are exhibiting stress and indicate how they will be supported and how their sustainability issues will be addressed. The first annual action plans are due to be submitted to my Department in September this year.

The annual area profiles, which contain information for 2014-15 on all schools in a common and accessible format, have been published on the Education Authority’s website. I remain committed to area planning, and I am confident that the new structures and processes that I described will lead to a more efficient and inclusive implementation process.

Paul Girvan (DUP, South Antrim)

I thank the Minister for his answer thus far. Have the criteria been applied fairly and equally throughout all the sectors of education that exist in Northern Ireland?

John O'Dowd (Sinn Féin, Upper Bann)

I believe so. All the main sectors are represented on one or other of the planning models, and each one's voice is heard. Representations are made from all the sectors; for instance, the new controlled sectoral body's role has been recognised and placed on the appropriate level in relation to area planning.

Area planning has been an evolving process over the last number of years. We struggled against the backdrop of uncertainty with the Education and Skills Authority and the continuation of the education boards. We now have the Education Authority and the controlled sectoral support body in place. There is certainly now a way forward, and I think that we can continue to achieve significant goals through the area planning process in the short, medium and long term.

Pat Ramsey (Social Democratic and Labour Party, Foyle)

Why is there limited cross-border engagement when considering areas that are so close to the border that that level of cooperation would clearly make sense?

John O'Dowd (Sinn Féin, Upper Bann)

I think that partition has clearly had an impact on how structures on both sides of the border plan and on how you think about how you deliver services in a region. That has had a negative impact, in my opinion.

There is further work to be done and that can be done through education and area planning on cross-border cooperation. We are looking at a model in Fermanagh and Donegal to see how we can cooperate there, and there are clearly areas in your constituency where greater cooperation can take place.

It is about breaking down not the big political mindset but politics with a small "p". It is also about ensuring that, when people come to planning, they look within and beyond this jurisdiction to make sure that we provide the best services possible for all our young people.

Leslie Cree (UUP, North Down)

Does the Minister recognise that the Catholic maintained sector has, in fact, reorganised its own schools estate over many years without reference whatsoever to other sectors? Does he agree that we will not be able to have proper area planning-based sectors until we agree a long-term vision of having one schools estate?

John O'Dowd (Sinn Féin, Upper Bann)

The question, then, is this: what will that one, single schools estate and its management body look like? We tried to bring in a model through the Education and Skills Authority, but it faced huge resistance.

The Member is not the first person to make a statement saying that we need a single education system. The challenge for all politicians and educators is to establish what that system looks like and how we ensure that everybody has faith in it and that the stakeholders all have a say in the development of education moving forward. That is a challenge for the Assembly and for those beyond it.

I do not think that it is fair to criticise the Council for Catholic Maintained Schools (CCMS) in isolation. All sectors have been guilty at one time or another of planning their estate in isolation. I have now brought all sectors together under the one umbrella, where they have to engage with each other, discuss with each other and work with each other around planning the future schools estate. I hope also to bring shared education legislation to the Assembly, which I think will enhance the work of ensuring that sectors, communities and schools work together in the planning of our schools estate going into the future.

Kieran McCarthy (Alliance, Strangford)

What procedures does the Minister have in place to ensure support for the growth of the integrated sector in the area-based planning process?

John O'Dowd (Sinn Féin, Upper Bann)

The integrated sector has a seat at the top table. It is represented at all layers in area planning. It also has a responsibility to make its voice heard and to engage with and encourage and facilitate integrated education among the other sectors. I have made my views quite plain and clear to the body. I chair the meetings biannually, and my deputy permanent secretary chairs the other meetings. All sectors need to work together, and everyone's voice has to be heard, including the smaller sectors, which are the integrated sector and the Irish-medium sector.

Claire Sugden (Independent, East Londonderry)

When setting out the area-based plans, was the Minister mindful of finance and, indeed, did he set aside finance to implement his plans, for example of an amalgamation of a new school?

John O'Dowd (Sinn Féin, Upper Bann)

Yes. Area planning has been one of the central cores and policies of my Department and, indeed, my time as Minister of Education. For new builds, amalgamations are given a higher score in moving forward towards new build or investment in the school. Those elements are taken under consideration in moving forward capital and resource provision to newly amalgamated schools.

I say again that it is a learning process. It is a learning process for the schools, the sectors and my Department, but I think that we are improving on it and that we are learning from the lessons that need to be learned from.

Jo-Anne Dobson (UUP, Upper Bann)

6. Mrs Dobson asked the Minister of Education whether there are any circumstances where he would overrule his Department's decisions on applications for temporary variation in individual school enrolments. (AQO 8466/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

I will start by putting into context why the temporary variation process exists. The Education Order 1997 requires the Department to determine an enrolment number and an admissions number for each grant-aided school. These numbers are set each year in consultation with the Education Authority, with the school’s board of governors and with CCMS in the case of Catholic maintained schools. However, in recognition of the pressures that can arise in local areas, the Department has the power to create additional places by way of temporary variations (TVs). In effect, TVs are about addressing short-term demographic pressures in an area. Additional spaces are sought and approved for specific named children on a school’s waiting list in an order dictated by the school’s own admissions criteria. They are not about facilitating particular parental preferences or indeed about meeting the needs of a particular institution. The Department considers hundreds of TV requests each year. Where I am asked to consider a particular request, my overriding priority will always be the educational interests of the specific children named in the request.

Jo-Anne Dobson (UUP, Upper Bann)

I thank the Minister for his answer. Does he understand why there is great concern that he saw fit to review and reverse the recent decision by his officials not to allow a temporary increase in year 8 enrolments in a County Armagh maintained secondary school but not to review the same decision in a neighbouring controlled school? Can he assure the House and, indeed, the wider public that this is not a case of preferential treatment, given the media comments by his party colleagues in the area?

John O'Dowd (Sinn Féin, Upper Bann)

Before I answer the question, I offer my sympathies to Mrs Dobson on the death of Councillor John Hanna. I pass on my sympathies to the Ulster Unionist Party in Upper Bann, to John's wife and to his wider family. I knew John, and he was a character. He will be sadly missed by all. My sympathies go to everyone involved.

I can understand the concern because I believe that I have been misrepresented in the media. Media and press releases have been inaccurate, not factual and, in some cases, in my opinion, deliberately misleading. I have set out quite clearly why I approved the places in St Paul's, and there is a clear rationale behind that. I have set out quite clearly where I turned down the places at Markethill High School, and there is a clear rationale behind that as well.

I do not focus my work on orange and green. I focus my work on what the policy dictates, the needs of the children who apply and the impact that that has on the wider area.

I am not going to get into a media fight over it. The facts speak for themselves. If people deal with the facts, there is a clear rationale. If people wish to spin those facts, I cannot stop that, but if they sit down and look at the simple facts of the case, they can see that the decisions are defensible. They were the right decisions to make, and if I had to make them again in the morning, I would make the same decisions.

Robin Newton (DUP, Belfast East)

The Minister will be aware of the unique situation with Strandtown Primary School and, indeed, the three feeder schools of Belmont, Dundela and Greenwood, where temporary variation owing to potential development plans needs to be kept in place. To encourage what are very good schools offering a very good education base and, indeed, a very good social mix, will the Minister allow the temporary variations for the period of the development plan's implementation?

John O'Dowd (Sinn Féin, Upper Bann)

I will consider each case on its merits. There have been a number of temporary variations agreed in previous years, and one, I believe, for this year for Strandtown as well. I encourage everyone involved in the equation to come forward with a development proposal that gives an area-planning-proofed solution to the specific primary school/nursery school relationship in that area. I encourage the Education Authority and the schools involved to come forward with a development proposal as quickly as possible.

Rosaleen McCorley (Sinn Féin, Belfast West)

Go raibh maith agat, a LeasCheann Comhairle. Gabhaim buíochas leis an Aire as a fhreagraí go dtí seo. Why is it not possible to grant every temporary variation request submitted to the Department by schools?

John O'Dowd (Sinn Féin, Upper Bann)

The simple answer is that every temporary variation is different and has different circumstances attached. As in the case of a development proposal, which gives a permanent increase to numbers in schools, it also has an impact on the schools surrounding the named school, so it is impossible to give a blanket approval, just as it is impossible to have a blanket ban on any increase in numbers. As I said, each case will be judged on its merits.

There will be occasions when I as Minister either review decisions made by my officials or am asked to review decisions made by my officials, and I will do that. The task of any Minister in any Department is to govern and run the Department. At times, I will make a decision that is different from my officials, but that is the nature of government. That is the nature of being in a ministerial post. As long as I can stand over the decisions that I have made, and I believe that I can stand over the decisions that I have made, even in the recent past, I am content that the process has been followed properly and fully.

Fra McCann (Sinn Féin, Belfast West)

7. Mr F McCann asked the Minister of Education, given the recent tragedy caused by cyberbullying, to outline what measures his Department is taking to help young people and parents deal with this type of bullying. (AQO 8467/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

Gabhaim buíochas leis an Chomhalta as an cheist. The primary duty to safeguard pupils lies with each school board of governors, and schools are required to have in place policies for bullying and the safe use of the Internet and digital technologies. The Department supports schools by providing, through C2k, safe and controlled Internet access and ICT services. We also focus on teaching pupils of all ages about e-safety and acceptable online behaviour so that, even beyond the school gates and the boundaries of C2k, they are equipped to participate in the online world effectively, enjoyably and safely.

C2k provides schools with access to e-safety information and teaching resources via a dedicated e-safety zone. In May 2015, it ran e-safety conferences that attracted over 400 school representatives. All schools have received a new circular containing information, advice and lesson plans on issues such as sexting, using webcams, social networking, inappropriate content and chatting with strangers. C2k works directly with pupils to highlight online safety issues and to provide young people with links to relevant Web resources.

The Department funds the local Anti-Bullying Forum, which provides support, resources and guidance to schools, parents and pupils. We have tasked the Anti-Bullying Forum with enhancing its cyberbullying resources during the year. Further specialist support is available from the Education Authority's child protection support service to schools, and children in post-primary education can use the independent counselling service for schools to speak to a trained counsellor about any concerns or fears that they have. I am currently taking forward new anti-bullying legislation, which will be accompanied by additional detailed guidance for schools, parents and pupils. My Department is working with the Safeguarding Board in the development of its e-safety strategy.

Fra McCann (Sinn Féin, Belfast West)

Will the Minister outline the scope of his anti-bullying Bill?

John O'Dowd (Sinn Féin, Upper Bann)

In that Bill, I plan to give a legal definition to bullying for the first time. The proposal will be that bullying is the repeated and intentional use of physical, verbal, electronic, written or psychological acts, or omissions, or any combination thereof by one or more pupils against a pupil or group of pupils with the intention of causing hurt, harm, fear, distress or adversely affecting the rights or needs of that pupil or group of pupils. The legislation will also put a duty on boards of governors to ensure that they have in place a robust anti-bullying policy and that measures are taken, as far as possible, as in any circumstances, to eradicate bullying and support the victims of bullying in our schools.

E-safety and Internet safety will require a combined approach from a number of Departments to bring forward legislation, if legislation is the right answer with regard to further e-safety for children. The Safeguarding Board is working with Departments and has agreed terms of reference on bringing forward a strategy on protecting our young people online etc. Quite a significant amount of work is going on across Departments and interdepartmentally to protect young people online. It is a very difficult area both for schools and parents. As the recent tragic events have shown us, criminals can reach young people from thousands of miles away, with disastrous impacts on children and their families. We will continue to work across a range of agencies and areas to do our best to protect our young people when they are online.

Sandra Overend (UUP, Mid Ulster)

I thank the Minister for that. I know that the Department of Education carries out a lot of work in the realm of Internet safety. Can he tell me whether the Office of the First Minister and deputy First Minister has shared with him the details of the gapping and mapping exercise that it carried out in winter 2012 and completed in summer 2013, or given him any of the information from that exercise? I feel that it is something that should greatly benefit him —

Roy Beggs (UUP, East Antrim)

The Member has asked a question.

Sandra Overend (UUP, Mid Ulster)

If not, will he endeavour to get that information?

John O'Dowd (Sinn Féin, Upper Bann)

I can neither confirm nor deny that. I will ask my officials to check whether that information has been shared and, if not, whether it can be shared and what help it will be to my Department. It may have been shared or may be part of the work of the Safeguarding Board. It is involved in and spearheading work between the various Departments and agencies. I will endeavour to check out whether the safety information can be shared and what assistance it is to my Department in our work on anti-bullying infrastructure.

Jonathan Craig (DUP, Lagan Valley)

I welcome the fact that the Minister is bringing forward legislation on bullying policies in schools. Does he agree, though, that a lot of cyberbullying in particular actually occurs outside of the school and, as he mentioned, even on an international basis? What has his Department done in conjunction or in liaison with the PSNI on that as it has now become a priority matter for the PSNI and has been put into the new policing plan?

John O'Dowd (Sinn Féin, Upper Bann)

The latest circular that we issued to schools was done in conjunction with and on advice from the PSNI. I know that, even with regard to presentations that have taken place since the tragedy in Tyrone, there have been joint presentations by C2k and the PSNI to schools and parents in the area, which have been very informative and useful. We will continue to liaise with all agencies, including the PSNI, on how we protect young people in and outside school and on how we provide information to teachers, parents and guardians on how they can assist in protecting young people.

We will also liaise on how we ensure that our young people and children feel comfortable about coming forward if they have made a mistake or are under pressure from elements, whether bullies, criminals or whoever. They must feel that they can come forward to discuss these matters with a trusted adult and that action can be taken and assistance given.

Those are the objectives, and the approach will be multi-departmental and multi-agency. The work to date has been very good, but we are always learning. As for the Internet, there is always somebody one step ahead of you, so we have to keep learning and keep our ideas fresh.

Roy Beggs (UUP, East Antrim)

Excuse me, but could I ask Members to take their seats? Thank you. I call Dolores Kelly.

Dolores Kelly (Social Democratic and Labour Party, Upper Bann)

Thank you. Minister, you will be aware that I wrote to you recently in the aftermath of the tragedy. I hope that we can also promote the website Get Safe Online as an information tool. Given that there has been a death as a result of cyberbullying, has the Minister any plans for a critical incident analysis? Despite all the safeguards, policies and procedures, somehow or other, what was happening to Ronan was not brought to the attention of the school authorities, and he did not know where to turn to for help.

John O'Dowd (Sinn Féin, Upper Bann)

I responded to your letter in the last number of days, and you will have the information.

I do not want to get into the detail of Ronan's case or what the school, family or police did or did not know. I met the principal, the vice-principal and the senior management team of the school yesterday to ensure that counselling services were available over the summer holiday period for parents and pupils. The staff, who acted tremendously in support of Ronan's family and his school peers, also need support, and we also have to ensure that we look after their mental health and well-being, because this is a very testing and trying period for everyone involved.

I have no difficulty in engaging with, or even suggesting to, other Departments and agencies that we have a critical incident review. I am not sure whether this is the right time. It may be the time, and, if lessons have to be learned, we should learn them.

When there is a sudden death in a school, whether of a pupil or staff member, the counselling service reacts immediately once notified. It will send counsellors into a school to support staff, pupils and parents. That happened in this case, as it has happened in so many other cases, so the counselling service is there. However, in the context of what you are saying, Mrs Kelly, I will certainly raise the issue with other Departments and see when is the best time to carry out a critical incident review.

Karen McKevitt (Social Democratic and Labour Party, South Down)

10. Mrs McKevitt asked the Minister of Education, given that a number of children have not been awarded a post-primary place this year, to outline the action he is taking to ensure all children are awarded a post-primary place in future years. (AQO 8470/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

I understand that, as of 22 June, 53 children have not yet been awarded a post-primary school place. With over 21,000 applications, that represents less than 0·3% of the cohort. That is changing daily, and the Education Authority is actively working to ensure that all children are placed.

The Education Authority has a statutory duty to secure provision of primary and secondary education, and the area planning process helps to ensure that there is a network of sustainable schools to cater for our children and young people now and in the future.

The Education Authority and the Council for Catholic Maintained Schools (CCMS), as the bodies with statutory responsibility for planning school provision, in conjunction with other sectors, including the integrated and Irish-medium sectors, produced area plans that provide an indication of how the schools estate will meet the projected demand for places.

It is the responsibility of the managing authorities and schools, in the context of area planning, to bring forward development proposals to make a significant change to the admission and enrolment of a school.

Roy Beggs (UUP, East Antrim)

That is the end of listed questions. We now move on to topical questions.

Claire Sugden (Independent, East Londonderry)

T1. Ms Sugden asked the Minister of Education how he is minimising the risk to 900 crèche places due to the impending early years cuts. (AQT 2701/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

We are now down to 900 — originally, I was questioned about 2,400 preschool places. I have yet to see any figure on this that I believe can be stood over. I do not believe that there is a risk to a significant number of preschool places. I have already put on record that I have the finances to fund preschool places. The early years fund is a different fund from that for preschool places. The early years fund supported community and voluntary providers of preschool places. Preschool funding is from a different budget and has not been affected.

Claire Sugden (Independent, East Londonderry)

The Minister has laboured on what he believes early years to be and not to be, but my sense is that he is just ignorant of the facts. When will the Minister take responsibility for a fund that is within his remit?

John O'Dowd (Sinn Féin, Upper Bann)

With the deepest respect to the Member, if she can produce for me a budget paper that shows that the early years fund is the preschool fund, I am ignorant of the facts. However, I suspect that there is one person in the Chamber who is ignorant of the facts, and that is you, because the early years fund is a separate fund.

Claire Sugden (Independent, East Londonderry)

[Interruption.]

John O'Dowd (Sinn Féin, Upper Bann)

You can mutter and interrupt me all that you want, but, if you listen, you might be surprised that you learn something. The early years fund is a fund separate and distinct from the preschool education fund. It was established —

Roy Beggs (UUP, East Antrim)

Could all remarks be made through the Chair, please?

John O'Dowd (Sinn Féin, Upper Bann)

Sorry, Mr Deputy Speaker. It was established in the early 2000s as a result of the ending of one of the Peace funds. It was transferred from the Department of Health to the Department of Education, which continued to pay out the fund. It was a budget of around £2·2 million, and it was cut because of the drastic cuts that we face as a result of the British Government's economic policies. Preschool education is funded from a completely different budget line that has not been cut.

Claire Sugden (Independent, East Londonderry)

[Interruption.]

John O'Dowd (Sinn Féin, Upper Bann)

We are still muttering, and we are still not learning anything. If the Member wants a copy of all the budget lines in the Department of Education, I will send her one, and she will see that there is a clear distinction between the two. If she has been listening to the lobby from the Early Years organisation, she will know that it, too, accepts that there are two distinct and clear budget lines.

Brenda Hale (DUP, Lagan Valley)

T3. Mrs Hale asked the Minister of Education to inform the Assembly of any changes to the process for deciding on new-build schools now that the five education and library boards have been subsumed by the Education Authority. (AQT 2703/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

No change is proposed or planned in how we decide to provide new builds or in the size of a school required for a new build.

Brenda Hale (DUP, Lagan Valley)

I thank the Minister for his answer. Can the Minister provide details of the prioritised list of schools waiting for departmental and ministerial approval for new school buildings?

John O'Dowd (Sinn Féin, Upper Bann)

We do not have a prioritised list in that sense. I am aware that many, many schools out there require a new build and significant investment of capital, whether for a full new build through the school enhancement programme or through the minor works programme. If we get to the stage of deciding to make a new announcement, we will contact the relevant managing authorities and ask them to put forward a list of schools that they believe can be built in a timely way and fit within whatever funding envelope we have going into the future.

Adrian McQuillan (DUP, East Londonderry)

T4. Mr McQuillan asked the Minister of Education for an update on his June monitoring round bid for early years funding, given that, in a recent answer to a question on early years funding, he said that it was his number one priority. (AQT 2704/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

It remains my number one priority. All Departments have now submitted bids to the Department of Finance and Personnel, and those will be processed in the normal way. If and when we ever reach a point at which the Budget Bill is passed and June monitoring arrives at the Executive, I hope that they will agree to provide funding to the early years fund.

Adrian McQuillan (DUP, East Londonderry)

When does the Minister expect the Budget to be passed, agreed and all the rest of it?

John O'Dowd (Sinn Féin, Upper Bann)

If I had the answer to that question, I would be doing a tour of the radio and TV studios, telling everyone that the answer to all our woes had been found, but I do not have the answer. I am aware that the Budget Bill is progressing, and I think that its Final Stage is next week. I assume that June monitoring will be dealt with at some stage after that.

Ian Milne (Sinn Féin, Mid Ulster)

T5. Mr Milne asked the Minister of Education how many teaching posts are being supressed in this financial year as part of the voluntary exit scheme. (AQT 2705/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

There are significantly fewer than first estimated. The Department received 214 teaching redundancy applications, which means that boards of governors have identified 200 teaching positions as being redundant. Eighty of those 214 applications relate to development proposals that I approved prior to 31 March 2015. Those have been approved as part of the ELB education incurred costs in the 2014-15 annual accounts and will be paid from those. The cost of the 80 approved redundancies is £3·1 million and the cost of the remaining 134 applications is £4·7 million.

Ian Milne (Sinn Féin, Mid Ulster)

Go raibh maith agat, a LeasCheann Comhairle. Mo bhuíochas leis an Aire as a fhreagra go dtí seo. How many teachers are in our schools now as opposed to three years ago due to reductions in budgets over recent years?

John O'Dowd (Sinn Féin, Upper Bann)

Despite several years of significant teaching redundancies, the number of teachers that we have has actually grown. That is as a result of the growth in the number of pupils in primary school over past years. We had an increase of 208 full-time equivalent teachers in the system in the 2014-15 year. We have paid off a significant number of teachers, but it is good to know that we have 208 more teachers in the system than we had in the previous year.

It is worth noting that it is very difficult to judge the impact across 1,100 schools of a reduction in the Department of Education budgets. To suggest that about 500 teachers could have been made redundant as a result of the cut to the Department of Education's budget was a fair estimate, but the schools have reported back, and we are looking at 214 redundancies, which will be covered through the voluntary exit scheme. That is a very welcome development.

We also estimate the number of non-teaching staff that might leave education to be around 1,000. That figure will not be necessary and will be significantly reduced. I think that we are now dealing with school-based non-teaching redundancies of about 140, but that number changes daily. The voluntary exit scheme of the Education Authority will be added to that at a later date.

Pat Sheehan (Sinn Féin, Belfast West)

T6. Mr Sheehan asked the Minister of Education what his Department is doing to tackle educational underachievement among working-class children, in light of the ‘Firm Foundations’ report, launched by the PUP last week. (AQT 2706/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

The policy direction of my Department over the last seven years, and previously, during Mr McGuinness's tenure, has been about tackling educational underachievement. We have tackled the myth that we had a world-class education system. People used to say, "If it's not broke, don't fix it." We have now got the majority of political parties to the point of saying that something is broken. We may not agree on exactly what it is, but they now agree that greater focus must be aimed at young people from socially deprived backgrounds in particular.

Policies that we have put in place are paying dividends. The latest examination results show an increase in those achieving five good GCSEs, including English and maths. There is still a tale of underachievement that we have to tackle, but I believe that the policies that are in place have the potential to turn things around significantly.

Pat Sheehan (Sinn Féin, Belfast West)

Go raibh maith agat. Gabhaim buíochas leis an Aire as ucht a fhreagra. Will the Minister tell us whether the measures that he and his Department have put in place have made any improvements to educational attainment?

John O'Dowd (Sinn Féin, Upper Bann)

The simple answer is yes. As I said during my original answer, we have had an increase of about 4% in the number of young people achieving good GCSEs, including English and maths. As to the provision of education in our primary schools, this international report states that we have some of the best primary schools in the English-speaking world. That is something that our schools, and those involved in education, should be proud of. The potential, moving into post-primary schools, is hugely significant.

We still face significant challenges in post-primary schools, and I welcome that the PUP document recognises that academic selection is a challenge to education. We often hear of this child or that child from a socially deprived background doing well, and people tell us, "academic selection worked great for me" and all that stuff, but the system has to work for all children. Pointing to one or two examples of children who have done well — and fair play to them — is not good enough. There has to be a system in place that ensures that all our young people achieve all they can. The PUP report is useful for many reasons, not least because it has again stirred up a debate about education. I think that debating education in the round is a very good thing, and I hope the debate continues.

Judith Cochrane (Alliance, Belfast East)

T7. Mrs Cochrane asked the Minister of Education to outline the main ways in which the money allocated to schools under the free school meals formula is spent. (AQT 2707/11-15)

John O'Dowd (Sinn Féin, Upper Bann)

It is up to schools, at the end of the day, as to how they spend their investment. We have provided them with additional information through the Sutton toolkit, which gives examples of how high-performing schools in socially deprived areas invest additional resources and best use them to improve education outcomes for young people. We have also made it clear to schools that we will monitor how money is invested and that we want to ensure there is a turnaround in the education outcomes of the young people in the schools that the money has been awarded to. It will take a number of years for that money to make a difference. It will take a number of years for the schools to plan and invest that money with a strategic long-term view.

I have no doubt that the money will make a difference, but money on its own is not the answer to the problem. Money is part of the answer. Strong school leadership is crucial, strong boards of governors are crucial, parental involvement in education is crucial, and ensuring that parents who have had a poor education experience themselves have the confidence and knowledge to get involved in their children's education is crucial. Community and political support for schools are also crucial. Money is only one element. I was never of the view that providing more money to socially deprived schools was the answer; I always said that it was part of the answer.

Judith Cochrane (Alliance, Belfast East)

I thank the Minister for his response. Does he believe that the free school meal percentage of school population threshold actually allows for the money to be targeted at the children it is designed for, given that the calculation means that some schools with more pupils on free school meals are receiving less additional support than some smaller schools? Should there be more of a focus —

Roy Beggs (UUP, East Antrim)

I ask the Member to finish her question.

Judith Cochrane (Alliance, Belfast East)

— on spending that money to develop quality teaching?

John O'Dowd (Sinn Féin, Upper Bann)

In the debate on the common funding formula, which took place around a year and a half ago, or more, I was constantly challenged by commentators and other political parties on the ground that the free school meal entitlement formula did not properly target children in need. A year and a half on, no one has come forward with an alternative or an analysis suggesting that free school meal entitlement is the wrong way to identify social deprivation. I do not think you can prove that it is wrong. I am not aware of any other social deprivation factor that identifies the individual to whom you give the money. Free school meal entitlement identifies children who are entitled to the benefit, and they are entitled either because they come from a low-paid family or a family that is on one or more benefit. The child therefore comes from a socio-economically deprived background.

When you have significant numbers of children from socio-economically deprived backgrounds in one school, that causes further pressures on the education attainment level and learning in the school. The money we have awarded to those schools is to tackle that additional factor against learning. Again, I throw out the challenge, a year and a half on from the debate, when many commentators and political parties told me that free school meals entitlement was not the right way to do it. No one has come forward with an alternative.

Oral Answers to Questions — Employment and Learning

Roy Beggs (UUP, East Antrim)

Thomas Buchanan is not in his place to ask question 1.

Karen McKevitt (Social Democratic and Labour Party, South Down)

2. Mrs McKevitt asked the Minister for Employment and Learning what steps his Department is taking to support aspiring performing arts students from disadvantaged backgrounds. (AQO 8477/11-15)

Stephen Farry (Alliance, North Down)

Widening participation in further and higher education to students from a disadvantaged background is a key strategic aim for my Department. As the main providers of adult education throughout Northern Ireland, colleges continue to encourage access to further education, including performing arts, by delivering a varied curriculum through their campuses and community outreach centres. Colleges have a strong track record in attracting enrolments from deprived areas. In the 2013-14 academic year, there were over 1,000 enrolments in performing arts courses in further education. Of that, 21% were from the most deprived areas. Performing arts courses are available from level 1 to level 5 and offer learners the opportunity to acquire the skills and knowledge that they need to gain qualifications to help them progress in their chosen careers. A range of financial assistance is also available to students with low incomes.

Karen McKevitt (Social Democratic and Labour Party, South Down)

Has the variety of such arts courses taught in this region increased in line with any so-called 'Game of Thrones' effect given that we have benefited so much from the likes of the film industry here in the North?

Stephen Farry (Alliance, North Down)

First of all, the Member is right to point to the benefits to our economy from the film and other creative industries being present in our economy. Indeed, the further education system is there to be responsive to the needs of the local business community and investors that come in. It is important to bear in mind that, while the question is on performing arts, it is part of a much wider landscape that involves a whole range of creative industries, from textiles and fashion through to multimedia. There are other aspects that are important in film production, such as sound. Our colleges are providing courses across the full spectrum of the creative industries, including the performing arts, and, in that way, we are bringing forward a range of people with the relevant skills.

It is also important to recognise that we continue to invest in the further education estate to ensure that we have modern, world-class facilities and to ensure that we are providing the best type of environment for our students to pick up the skills that are so important to those fast-growing industries.

Leslie Cree (UUP, North Down)

What support has been given to FE colleges so that they can deliver courses and supplement the good work that is being done in the film and television industry, which the Minister mentioned, and can encourage more people to get involved in that?

Stephen Farry (Alliance, North Down)

I thank the Member for the question. It is difficult to say that we are in a position to give more support because, as the House will be aware, we are going through very difficult financial cuts. Indeed, the FE sector is bearing an element of those, though we are working with the colleges to ensure that we try to minimise the impact of those cuts on the front line and on the areas that are most relevant to the economy. The type of areas that have been touched upon by the questions to date would fall into those areas that are very relevant. As I said, we continue to invest in the capital estate, and, as the Member represents North Down, he will be conscious of the imminent opening of the SPACE at the South Eastern Regional College's campus in Bangor, which will be a major asset to the whole community in Northern Ireland.

Claire Sugden (Independent, East Londonderry)

Is the Minister aware of the financial aspect of the business case not to continue dance and drama classes at Belfast Metropolitan College?

Stephen Farry (Alliance, North Down)

It is not an issue of a business case as such. These are decisions to be taken by the colleges themselves, which are there to manage their resources. Obviously, all our colleges are facing very difficult circumstances and need to make difficult decisions. It is important that we bear in mind that our colleges are not simply there to service a distinct geographical area. It is important that we encourage specialism and collaboration across our colleges. It is also worth bearing in mind that the very particular direction of travel in Belfast Met is not just a product of the current financial climate, though that obviously has accelerated the approach that is being taken, but that the strategic direction to this was set out in the college development plan, which predates my time as Minister.

Cathal Ó hOisín (Sinn Féin, East Londonderry)

3. Mr Ó hOisín asked the Minister for Employment and Learning for an update on the introduction of a funding scheme for postgraduate students. (AQO 8478/11-15)

Stephen Farry (Alliance, North Down)

At present, the majority of postgraduate students in Northern Ireland must finance their own studies. Of the minority who are funded, some are treated as undergraduates for student support purposes. My Department also funds a postgraduate awards scheme that will provide over 700 scholarships this academic year. These scholarships cover students' approved tuition fees and provide around £14,000 per annum to support them with their living costs. They are, however, limited in number and largely restricted to PhD students. They are allocated by our universities on a highly competitive basis. There is no standard student finance package in place for postgraduate students through the Student Loans Company.

Looking ahead, it is clear that our economic growth is going to be highly, and increasingly, dependent on higher skill levels. Those skill demands will only intensify under a potentially lower rate of corporation tax. Indeed, forecasting commissioned by my Department has shown that, in an environment of lower corporation tax, the requirement for postgraduate qualifications in our workplace will rise faster than any other type of qualification. However, Northern Ireland continues to enrol far fewer postgraduate students, relative to our population, than any other country in the UK. Supporting an increase in postgraduate provision is therefore not only a matter of social justice but an economic imperative. That is why, two weeks ago, I launched a policy consultation that considers a range of options for better assisting postgraduate students through the student finance system. The consultation will run until 11 September, and my Department will publish a summary of the responses after that date. For a range of legislative and administrative reasons, any new policies resulting from the consultation will carry significant lead-in times.

Cathal Ó hOisín (Sinn Féin, East Londonderry)

Go raibh maith agat, a LeasCheann Comhairle. Gabhaim buíochas leis an Aire as an fhreagra sin. I thank the Minister for his answer and commend him for launching the consultation. How important to the wider economy is increasing access to postgraduate degrees?

Stephen Farry (Alliance, North Down)

First of all, I thank the Member for his comments and for welcoming the consultation, which I should mention also covers potential options for supporting part-time students.

On the issue of postgraduate students, as our economy evolves ever further, the demand for higher-level skills will increase. That includes primary degree level to level 7 and level 8, so it is important that we ensure we have proper investment in that regard. That will accelerate with a lower level of corporation tax.

At present, we have a system of support that tends to help those who are doing PhDs, but not those who are doing master's degrees. We see the same situation occurring elsewhere in the UK. A lot of people talk about the "broken bridge" between an undergraduate progressing to a master's and then to a PhD. That is why the consultation particularly focuses on what we can do to better assist master's students. That is where the greatest efficiency has been identified, not just in Northern Ireland but elsewhere in these islands.

Seán Rogers (Social Democratic and Labour Party, South Down)

Thank you for that detailed answer, Minister. You mentioned the economic imperative. Is it the preferred option of the Department that any such schemes target those subject areas identified as key economic drivers?

Stephen Farry (Alliance, North Down)

We can certainly focus the scheme on particular subject areas. Cost implications may drive us in that direction. Also, some of the options in the consultation are across the board and recognise that there may well be interest in studying a range of subjects. The critical aspect affecting whether or not this will work — bearing in mind that we are going through times of major financial stress — is whether we can access a system of loans from the Treasury, making the system, in essence, almost self-funding, provided that repayments are made within the approved range allowed by the Treasury scheme.

The Member may be aware that, in England, the UK Chancellor of the Exchequer has announced the development of a loan scheme. That opens up the opportunity for us in Northern Ireland to have a similar scheme for our jurisdiction. That is hopefully the path that we are going to pursue, and if that falls in place, we may be able to extend the intervention beyond just those subjects that are most relevant to the economy to include a wider range of areas.

Anna Lo (Alliance, Belfast South)

Nowadays, many workers prefer to do their master's degrees part time. What plans does DEL have to support those students?

Stephen Farry (Alliance, North Down)

I thank the Member for the question. Obviously, any scheme has to be one that can adapt to those who are full-time and part-time students. It is also worth stressing, as I did to Mr Ó hOisín, that we are seeking to look at options to support part-time students at undergraduate level. Undergraduate part-time study is an area where, again, there is significant scope for expansion. In particular, we seek to encourage and develop people from a range of different backgrounds beyond perhaps the conventional 18-to-21-year bracket, which is probably no longer seen as the exclusive source of students, to take up a wider range of study at higher-skill levels.

We also recognise that we are under pressure in how we fund full-time places. The importance of part-time study takes on an even greater presence in the way that we will be engaging in skills. It is also important that, as we look to link up our higher education system with the emerging strategy on apprenticeships, we look to funding mechanisms that will support students who are in an apprenticeship system but are also accessing their off-the-job training through university. By definition, they will be part-time students. That funding model may well be important in that regard, as well as for those students who are studying part-time on a free-standing basis.

George Robinson (DUP, East Londonderry)

4. Mr G Robinson asked the Minister for Employment and Learning to outline how he will ensure small and microbusinesses will provide apprenticeships that promote specific and much-needed skills in the workforce. (AQO 8479/11-15)

Stephen Farry (Alliance, North Down)

With a very smooth link, I can say that we launched 'Securing our Success: The Northern Ireland Strategy on Apprenticeships' in June 2014, which committed to putting employers at the heart of a new apprenticeship system. Naturally, the success of the system will be reliant on successful engagement with employers, in particular those from small and microbusinesses that are the backbone of the Northern Ireland economy. That is why the apprenticeships strategy recognises the need for tailored support for such businesses.

A key aspect of supporting business will be the proposed apprenticeships central service, which will signpost employers, particularly small and microbusinesses, to appropriate sources of advice and guidance and which will administer any support and incentives that might be made available. That will be tested from autumn 2015 with a view to introducing a new central service by September 2016.

Last year, I established an interim strategic advisory forum comprised of employers, trade unions, providers of off-the-job training and other key stakeholders to provide advice on key issues concerning the implementation of the new strategy. A subgroup of that body has been established to look specifically at ways to support small and micro-employers to engage with the new system. That subgroup has met on a number of occasions to examine a range of measures, including financial incentives, group training approaches and wider administrative support that could be introduced to support small and micro-employers to engage with the new system. The subgroup will develop proposals and test them with a wider range of employers before presenting recommendations to me in the autumn.

George Robinson (DUP, East Londonderry)

I thank the Minister for his answer. Does he agree that small and microbusinesses will play a vital role in the economic and employment development of Northern Ireland in the short to medium-term future?

Stephen Farry (Alliance, North Down)

Yes, I very much concur with that sentiment. It is also worth bearing in mind that the structure of our economy means that we have a greater predominance of small and microbusinesses than many other societies. Indeed, what is viewed as an SME in Northern Ireland is probably of a different nature and scale than is the case in other jurisdictions. We have more smaller SMEs relative to some other countries in the world.

Whenever we talk about apprenticeships, it is important that we bear in mind that there will always be a differential take-up of those opportunities, subject to the size of the businesses that we are talking about. What I mean by that is that larger businesses are always more readily placed to create such opportunities. That is the pattern even in the most successful vocational training systems in the world, including the Germanic countries and Scandinavia. We are putting such a focus on particular types of interventions to encourage SMEs in Northern Ireland to engage with the system, because they will benefit very much from that type of approach to training. In particular, our discussions so far indicate that perhaps the biggest perceived blockage is in administration and bureaucracy. I think that that is where a lot of focus is going to go in trying to ensure that we have full participation from that sector of the economy.

Fearghal McKinney (Social Democratic and Labour Party, Belfast South)

I thank the Minister. The SDLP sees the apprenticeship model as being a strong tool for freeing up the issues around long-term unemployment, but what steps can be taken to ensure that any such apprenticeships will lead to longer-term employment for students and not to a situation where we have a conveyor belt of reduced-cost labour, for example?

Stephen Farry (Alliance, North Down)

It is worth saying a couple of things. First, I welcome the support from the Member for apprenticeships. I think there is a strong consensus across the House on the importance of apprenticeships as a way forward. To answer the question, it is very much in the self-interest of employers to ensure that this model is sustainable. It is not, and should not be, a source of cheap labour for employers. It is the means by which companies and organisations will find and be investing in their future talent. There will always be an investment that employers have to make. They will receive a return by way of productivity on the far side of an apprenticeship, so it is important that employers understand that this is something that benefits them. If they understand that, they will not simply be letting people go on the far side.

Secondly, I must stress that, from the outset, we in Northern Ireland have been very clear around the importance of quality and have not simply been badging anything that looks like training in an employment context as an apprenticeship. Members will be aware that there has been a change of approach in England, notably, over the past number of weeks, where greater care is being taken about labelling certain types of activity as an apprenticeship and avoiding labelling other types of activity as an apprenticeship. That way, if we have a focus on quality, we will be ensuring that young people who are going through apprenticeships will be well served, as will the companies that benefit from apprenticeships.

Roy Beggs (UUP, East Antrim)

Alastair Ross is not in his place. John McCallister is not in his place. I call Barry McElduff.

Barry McElduff (Sinn Féin, West Tyrone)

I am in my place.

[Laughter.]

Barry McElduff (Sinn Féin, West Tyrone)

7. Mr McElduff asked the Minister for Employment and Learning for an update on the removal of barriers to cross-border mobility for undergraduates. (AQO 8482/11-15)

Stephen Farry (Alliance, North Down)

I am committed to improving cross-border student mobility. As part of my Department's higher education strategy, a project group, which includes representation from the Irish Higher Education Authority and the institutes of technology, has been established to take the issue forward. The project team has considered the recommendations of the IBEC-CBI report on undergraduate mobility and has made progress in a number of areas.

In relation to improving information, careers teachers and careers advisers have received additional training on the higher education opportunities available in the South and on the Central Applications Office processes. Extensive information regarding Northern Ireland's higher education sector is available through the NI Direct portal. As well as supporting our local students, that information can act as a gateway for other students, including those from the South, who may be interested in studying in Northern Ireland.

Northern Ireland students studying in the South now have access to funding support. The Irish Universities Association recently announced that it is planning to make changes to the Central Applications Office point system to improve access for A-level students.

My officials have been working with officials in the Department of Education and Skills to research and analyse the impact of future demographics on cross-border student flows in order to inform future policy development. A joint report was published on 15 of June.

I regularly meet the Irish Minister for Education to discuss a range of issues, including student mobility. I will continue to meet Minister O'Sullivan to discuss progress on these issues, and my officials will work closely with their counterparts in the South on that and other cross-border issues.

Barry McElduff (Sinn Féin, West Tyrone)

I commend the Minister and the Minister of Education for work done in this area by way of a lot of meetings with Minister Quinn and, subsequently, Minister O'Sullivan. Is the Minister satisfied that part of the training for careers teachers and careers advisers is touching on the range and type of courses that are available to local students along the border corridor in the likes of Institute of Technology, Sligo, Letterkenny Institute of Technology and Dundalk Institute of Technology?

Stephen Farry (Alliance, North Down)

I thank the Member for his question and his comments. In some respects, he is right to focus on the careers aspect, because I would like to think that, in addressing the recommendations, we have addressed very clearly the issues around funding and the distortions that previously existed in funding. The issue regarding recognition of the qualifications from Northern Ireland is well on the way to being resolved, and we will see how that rolls out over forthcoming years. The key attitude now has to be around tackling attitudes and hearts and minds. Obviously, our careers teachers and careers advisers have a critical role to play in that regard. A lot of training has been provided, and people are much more aware of the mutual opportunities that exist across the two jurisdictions. We probably need a stronger public debate to encourage students, and I include in that other influencers, such as parents and friends, to think about the opportunities that may exist.

The Member is right to indicate that, as pressure on public finances continues, there will be a need for specialism in some areas, and, whether that is for our universities, institutes of technology or further education colleges, we should be seeking to establish where we can find economies of scale in some very particular specialisms and trying to find a solution to the benefit of everyone. In some ways, we are doing that through the research offer across our different higher education institutions on the island.

Alban Maginness (Social Democratic and Labour Party, Belfast North)

I thank the Minister for his very detailed answer. Is there anything further than can be done on the free movement of university students, North and South, and, of course, A-level and leaving-certificate students both ways? It seems an absurd situation to have all those obstacles. Surely the goal must be free movement of students, North and South.

Stephen Farry (Alliance, North Down)

I thank the Member for his interest. We have been progressively removing the actual barriers to free movement on the island. That having been said, we have seen a reversal of trends over the past 10 years on the scale of movement in both directions on the island, and that is disappointing. It is worth stressing that the flow on the island, again in both directions, is much smaller than the flow between Northern Ireland and other parts of the UK. Undoubtedly, there is untapped potential. In common with what I said to Mr McElduff, the real focus has to be on attitudes and on using the careers approach and other key influencers in society to encourage young people to see the full range of opportunities that is out there.

I say this to any young person who wants to study outside Northern Ireland: by all means, pursue your dreams, but do not forget about us in Northern Ireland and please consider coming back to build your career here.

Jim Allister (Traditional Unionist Voice, North Antrim)

The Minister may not have it to hand, but will he undertake to provide the figure of the cost to his hard-pressed budget of providing free education in our regional colleges to students from the Irish Republic?

Stephen Farry (Alliance, North Down)

The figure is between £6 million and £7 million at present, but I will write to the Member and give him the precise figure. As he will be aware, that is an outworking of European Union legislation on the free movement of students. In case the House thinks that, all of a sudden, I am being converted to Euroscepticism, it is one small source of frustration in what is otherwise a very lucrative area from which Northern Ireland's economy and wider society massively benefits.

The real source of the cost that is being borne in Northern Ireland is less as a result of having students from the South coming to study in the North; rather, it is more the case that we do not see the flow going in the other direction. There is a real challenge for the Southern Government to work on improving the offer that they have, particularly around the level 2 and level 3 equivalents in the north-west, particularly in the north of County Donegal. By far the predominance of student flows from South to North occurs in that north Donegal/Derry corridor, which indicates that there is recognition that Derry, in some ways, has been a natural hinterland over history for that part of the island and that there is a real underinvestment in facilities outside the context of what is offered by the Letterkenny Institute of Technology.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

8. Mr McGlone asked the Minister for Employment and Learning whether his Department has identified or appointed the dedicated industry consultants referenced in the review of youth training. (AQO 8483/11-15)

Stephen Farry (Alliance, North Down)

The consultation on the review of youth training closed in February 2015. When operational, the new youth training system will secure a step change in professional and technical training for all young people aged between 16 and 24 through a new system of learning. It will be accessible to those already in employment, those starting a new job and those not yet in employment.

The review is being finalised, and the strategy, when published, will include details of the new system, along with an implementation plan. There will be piloting of the strategy from July this year onwards including industry consultants, with a full system in place from September 2016.

Patsy McGlone (Social Democratic and Labour Party, Mid Ulster)

Go raibh maith agat don Aire as a fhreagra. I thank the Minister for his response. Will he clarify for me how the strategy will be directed at those most in need: people not in employment, education or training?

Stephen Farry (Alliance, North Down)

I thank the Member for his question and congratulate him on his timing in that he has got in a week ahead of the formal announcement of the new system. I hope to make a statement to the Assembly next Tuesday in that regard. Our new system will be open to all young people between the ages of 16 and 24 who are capable of achieving a level 2 qualification. There is a pool of people who, for various reasons, leave school and do not progress directly into further or higher education, apprenticeships or employment but clearly, with support, have the potential to do so. The new system is designed to be of assistance to them. Where people do not yet have a level 1 qualification and therefore are not in a position to access the new system of youth training, there will be support available to help them to get that far. That will include a lot of the projects that have been announced and will be resourced under the European social fund.

Phil Flanagan (Sinn Féin, Fermanagh and South Tyrone)

9. Mr Flanagan asked the Minister for Employment and Learning for an update on the proposed consultation on the introduction of changes to the frequency of student support payments. (AQO 8484/11-15)

Stephen Farry (Alliance, North Down)

At present, full-time undergraduate higher education students from Northern Ireland receive their maintenance support payments in three instalments, roughly at the beginning of each term of the academic year. A number of student union bodies and a number of fellow Members of the Assembly have raised concerns in recent months about the existing payment frequency. It is felt that larger and less frequent payments heighten the risk of financial mismanagement and, by extension, the risk of financial hardship among students. It has been suggested that smaller and more frequent payments would better prepare students for entering the working world, where wages are, in the majority of cases, paid monthly. Of course, there are other sides to the argument. Students contend not only with day-to-day living costs but, in many cases, with significant upfront costs in respect of things such as accommodation, books and equipment. Therefore, I intend to launch a consultation in the near future outlining options for the frequency at which the payments are made, including options for monthly payments. The consultation will clearly outline the pros and cons of each option and any additional administrative costs associated with the options considered.

I stress that the consultation will consider only the frequency at which the existing maintenance package is paid. In our current financial circumstances, it would simply not be realistic to consider options for raising the level of overall support available. The consultation is currently under development by my officials, and I hope to have the opportunity to consider the initial draft in the near future.

Phil Flanagan (Sinn Féin, Fermanagh and South Tyrone)

Go raibh maith agat, a LeasCheann Comhairle. Gabhaim buíochas leis an Aire as a fhreagra. I thank the Minister for his answer and hope that, in the round, this will be seen as a positive move for students. He says that there is no money to increase the maintenance payments that students get, even though tuition fees are going up in line with inflation. Does it not seem a bit unfair that his Department continues to increase tuition fees, often above the rate of inflation, but there is no reciprocal increase in the maintenance support grants given to students to cover those costs?

Stephen Farry (Alliance, North Down)

What I would say to the Member is that I would love it to be different. Things have been going so well so far today, and we were keeping ourselves reasonably calm and focused on the detail of policy. However, I must mention the elephant in the room: unless we have a major change in the nature of funding for higher education in Northern Ireland, options such as increased maintenance support will simply not be viable. The Member may well make a powerful case in that regard, but, in a context where the higher education sector alone faces in-year cuts to date of £16 million, on top of what is already a structural deficit, according to universities, of around £39 million with other pressures, including from the Member's colleagues, for expansion of the sector, notably at the Magee campus in Derry, we are in a very difficult position to proceed along the lines that the Member articulates.

Roy Beggs (UUP, East Antrim)

That is the end of our time for listed questions. We move to topical questions.

Sean Lynch (Sinn Féin, Fermanagh and South Tyrone)

T1. Mr Lynch asked the Minister for Employment and Learning to outline the outcome of the recent Trans-Atlantic Technology and Training Alliance (TA3) conference in Belfast and to state the benefits for the local economy. (AQT 2711/11-15)

Stephen Farry (Alliance, North Down)

I was pleased that our colleges in Northern Ireland were able to host the TA3 conference in Belfast earlier this month. This prestigious conference brings together practitioners from different parts of the world, including the United States, Denmark, Spain and Germany, to share best practice on further education and vocational training. Some of the biggest employers, such as Siemens, which use vocational training, were also represented. The conference built on a strong local track record of learning from best practice internationally around the successes of vocational training, and it provided a good opportunity to share that best practice further.

On the back of that, I had the opportunity to visit the Basque region in Spain in the same week and was able to sign a memorandum of understanding with the regional government there on exchange opportunities for our students and to allow our colleges to develop further their international strategies on learning about best practice in each other's jurisdictions. I was encouraged that they were as keen to learn from us as we are to learn from them.

Sean Lynch (Sinn Féin, Fermanagh and South Tyrone)

Go raibh maith agat. Gabhaim buíochas leis an Aire as an fhreagra sin. I thank the Minister for his answer. He has possibly answered my next question. What was learned from international input to the conference? You mentioned that some international companies were there.

Stephen Farry (Alliance, North Down)

To add to that, I hope that the Member will see the lessons learned from the outworkings of the conference in the Department's ongoing policy development work and how, at a more local level, that filters through to the curriculum offered by the colleges, including the South West College in his area.

Roy Beggs (UUP, East Antrim)

Questions 2 and 8 have been withdrawn.

Fearghal McKinney (Social Democratic and Labour Party, Belfast South)

T3. Mr McKinney asked the Minister for Employment and Learning to what extent life and health science degrees will be impacted by the upcoming cuts to university budgets. (AQT 2713/11-15)

Stephen Farry (Alliance, North Down)

As the Member will appreciate, Queen's University and Ulster University have announced in general terms the impact of in-year cuts on student places and potential staff reductions. This is a detrimental state of affairs that is not only sending out a negative image to the rest of the world but impacting on opportunities for our young people.

Within that framework, I have asked the universities to protect, as far as they can, what we term the "narrow STEM subjects": maths, physics, computer science, engineering and elements of life sciences and biological sciences. When the Member refers to health and life sciences, that is probably a slightly broader concept that will bring in what we would term "allied health areas". The requested protection, which the universities are intent on delivering, would not necessarily cover the full range of what the Member has outlined.

When we ask the universities to protect the subjects that are deemed most relevant to the economy, that comes at an additional cost. On average, those subjects are more expensive to provide than some arts and humanities courses. When we ask for such protection, that puts further pressure on places elsewhere in the system. However, we have to take a balanced view of what is most important for the future of the Northern Ireland economy and act strategically, including at times of great pressure and stress. All I will say is that, the sooner we have a change of direction in our finances and begin to reinvest in our universities, the sooner we will be on a much better course.

Fearghal McKinney (Social Democratic and Labour Party, Belfast South)

The Minister's answer reflects part of my concern, which is about making sure that degree courses that are relevant to the future economy will go ahead. However, in reply to a question for written answer and in this reply, the Minister indicates that, fundamentally, despite his advice or encouragement —