Schedule 1: The National Consumer Council
174.This Schedule makes further provision in relation to appointments to the Council, its members, procedures, status and funding.
Part 1: Members of the Council.Membership
175.Paragraph 1 provides for the Secretary of State to appoint the chairman of the Council and other members. The Council chairman is non-executive (i.e. not appointed from the staff of the Council), and must be consulted by the Secretary of State before the latter appoints other non-executive members to the Council. Executive members of the Council (i.e. Council members who are appointed from the staff of the Council) are appointed by the Secretary of State on the nomination of the Council chairman.
176.The Secretary of State may appoint as non-executive members persons who are members of the OFCOM Consumer Panel and/or the Financial Services Consumer Panel where these persons have been nominated by the Panel in question following consultation with the Council Chairman. The Secretary of State is obliged to secure that a majority of members of the Council are non-executive. In making appointments to the Council, this paragraph provides that the Secretary of State must have regard to the desirability of appointing one or more members with experience of work among and the special needs of disabled persons.
177.Paragraph 2, subject to the other provisions of Schedule 1, establishes that members of the Council will be appointed to, and vacate, their office according to the terms and conditions of their appointment.
178.Paragraph 3 enables the Council to make payments in relation to non-executive members’ remuneration, pensions, allowances or gratuities. The Council may also pay travelling and other allowances to any member.
179.Paragraph 4 defines the term of a non-executive appointment as a fixed period not exceeding five years, and permits re-appointment for one further period of up to five years.
180.Paragraph 5 describes circumstances where individuals will cease to be members of the Council. The Secretary of State is empowered to terminate the appointment of a chairman or other member who is unable, unfit, or unwilling to fulfil the functions of his or her appointment.
181.Paragraph 6 enables the Council to pay compensation to members who leave office early.
Part 2: Staff of the Council
182.Paragraph 7 requires the Council to employ a Chief Executive, and the first such appointment is to be made by the Secretary of State on such terms and conditions as he determines. Subsequent appointments of Chief Executives are to be made by the Council, with the approval of the Secretary of State being required for both the appointment and for the terms and conditions on which the appointment is made.
183.Paragraph 8 enables the Council to employ other staff as it considers appropriate, with the numbers of staff and their terms and conditions subject to approval by the Secretary of State.
184.Paragraph 9 makes provision to allow the Chief Executive and staff of the Council to join the Principal Civil Service Pension Scheme and for payments to be made by the Council in respect of this pension provision.
185.Paragraph 10 provides that the Council may arrange for other parties to provide it with assistance, and to pay fees to such parties.
Part 3: Territorial, Regional and Other Committees
186.Paragraph 11 sets out the arrangements for territorial committees, which the Council is required to establish by section 1(2) for Scotland, Wales, and Northern Ireland. Each committee comprises executive and non-executive members appointed by the Secretary of State, with a majority of non-executive members. The Chairman of each committee must be a non-executive member. Before appointing a non-executive member (including a chairman), the Secretary of State must consult the Council chairman, and Scottish and Welsh Ministers as appropriate. The Council must have regard to the desirability of appointing one or more members with experience of work among, and the special needs of, disabled persons.
187.Paragraph 12 enables the Council, with the approval of the Secretary of State, to establish or abolish regional committees to provide advice and information to the Council about consumer matters affecting the relevant region, and for other purposes determined by the Council.
188.Paragraph 13 specifies that the Council is able to appoint a chairman and members to a regional committee. The chairman and the majority of members must be non-executive. The Council must have regard to the desirability of appointing one or more members with experience of work among, and the special needs of, disabled persons.
189.Paragraph 14 enables the Council to establish other committees.
190.Paragraph 18 limits the term of a non-executive appointment to a territorial or regional committee to a fixed period not exceeding five years, and permits re-appointment for one further period of up to five years.
191.Paragraph 19 makes provision in respect of the circumstances in which the chairmen, or any other member, of a territorial or regional committee shall cease to be a member of the committee. The Secretary of State is empowered to terminate the appointment of a chairman or other member of a territorial committee who is unable, unfit, or unwilling to fulfil the functions of his or her appointment.
192.Paragraph 20 enables the Council to pay compensation to members of territorial committees when they leave office early.
Part 4: Procedure etc.
193.Paragraph 21 enables the Council to regulate its own procedure and that of its committees and sub-committees, including the quorum in each case.
194.Paragraph 22 states that the validity of any act of the Council is not affected by any vacancy on the Council, its committees or sub-committees; any defect in the appointment of any members of the Council or its committees or sub-committees, or any disqualification of any person as chairman or other member of the Council.
195.Paragraph 23(1) enables the Council to delegate its functions to the Chairman or another member of the Council, any committee or sub-committee of the Council, or the Chief Executive or another member of staff. Paragraph 23(2) provides that any committee established by the Council has a similar power to delegate its functions.
196.Paragraphs 24 to 26 make provision in relation to the authentication of Council’s seal and the execution of documents by the Council.
197.Paragraph 27 requires the Council to maintain an office in each of England, Scotland, Wales and Northern Ireland, and authorises the Council to establish additional offices within the United Kingdom with the consent of the Secretary of State.
Part 5: Funding and accounts
198.Part 5 sets out how the Council will be funded, and the requirements to be placed on the Council in relation to its accounts.
199.Paragraph 29 inserts additional provisions in the Utilities Act 2000 (c.27) which provide that licensed electricity and gas providers may be required to pay for:
the appropriate proportion of the expenses of the Council (including a proportion of the establishment costs);
the appropriate proportion of the costs of the Secretary of State in relation to the establishment of the Council;
any transfer schemes made under section 35(2)(a) or 35(7) of the Act in respect of energywatch;
the costs of the Secretary of State in relation to the abolition of energywatch;
the costs of the OFT in relation to the expansion of any public consumer advice scheme supported by the OFT (“OFT scheme”) to enable it to cater for enquiries from electricity and gas consumers;
the appropriate proportion of the costs of the Office of Fair Trading in relation to the operation of an OFT scheme.
200.In determining the “appropriate proportion” of the funding to come from energy licensees, the Secretary of State must have regard to the functions exercised by the Council or an OFT scheme in relation to electricity and gas consumers.
201.Paragraph 31 inserts a new provision into the Postal Services Act 2000 (c.26) which provides that licensed suppliers of postal services may be required to pay for:
the appropriate proportion of the expenses of the Council (including a proportion of the establishment costs);
the appropriate proportion of the costs of the Secretary of State in relation to the establishment of the Council;
any costs relating to transfer schemes made under section 35(2)(a) or 35(7) of the Act in respect of Postwatch;
the costs of the Secretary of State in relation to the abolition of Postwatch;
the costs of the OFT in relation to the expansion of any public consumer advice scheme supported by the OFT (“OFT scheme”) to enable it to cater for enquiries from postal services consumers;
the appropriate proportion of the costs of the Office of Fair Trading in relation to the operation of an OFT scheme.
202.In determining the “appropriate proportion” of the funding to come from postal services licensees, the Secretary of State must have regard to the functions exercised by the Council or the OFT scheme in relation to postal services consumers.
203.Paragraph 32 sets out the requirements on the Council in relation to its accounts, including a requirement on the Comptroller and Auditor General (the head of the National Audit Office) to audit the Council’s accounts annually, and for the Secretary of State to lay each year’s certified accounts (as well as the Comptroller and Auditor General’s report on the accounts) before Parliament.
Part 6: Status etc.
204.Paragraph 33 provides that the Council is not to be regarded as a servant or agent of the Crown; it does not enjoy any status, immunity of privilege of the Crown; and the Council’s property is not Crown property.
205.Paragraphs 34 to 37 amend the House of Commons Disqualification Act 1975 (c. 24) and the Northern Ireland Assembly Disqualification Act 1975 (c. 25) provisions so as to disqualify members of the Council from membership of the House of Commons and the Northern Ireland Assembly. They also amend the Freedom of Information Act 2000 (c. 36), the Public Records Act 1958 (c.51) and the Parliamentary Commissioner Act 1967 (c.13) so as to make provision about the Council.
206.Paragraph 38 provides an exemption from liability for damages for anything done by the Council, any member of the Council or any of its committees or sub-committees, the Chief Executive or any member of the Council’s staff in the exercise (or purported exercise) of the Council’s functions. This exemption does not apply where the act or omission was in bad faith. Nor does it prevent an award of damages made in respect of an act or omission which is unlawful as a result of section 6(1) of the Human Rights Act 1998 (c. 42).
