The Government of Wales Act 2006 (Transitional Provisions) (Finance) Order 2007

EXPLANATORY NOTE

(This note is not part of the Order)

This Order modifies the transitional provisions in Schedule 11 to the Government of Wales Act 2006 (“GOWA 2006”), which modify the application of the finance provisions in Part 5 of GOWA 2006.

Article 3 amends the transitional provision concerning payments into the Welsh Consolidated Fund, to be established under section 117 of GOWA 2006. It substitutes for the existing paragraph 53 of Schedule 11 a new paragraph 53 which requires the Welsh Ministers to pay into the Welsh Consolidated Fund a sum equal to the total of all monies standing to the credit of the Assembly constituted by the Government of Wales Act 1998 (“the 1998 Assembly”) immediately before 1^st April 2007. This payment must be made no later than 4 weeks after the date on which a copy of the certified accounts of the 1998 Assembly for the financial year 2006/2007 is laid before the Assembly constituted by GOWA 2006 (“the 2006 Assembly”) under section 97(5)(b) of the Government of Wales Act 1998 (“GOWA 1998”). Section 97 of GOWA 1998 will continue in force, by virtue of section 161(6) of GOWA 2006, until it has been complied with for the financial year ending 31st March 2007.

Article 3 also inserts two new paragraphs into Schedule 11 immediately after paragraph 53. New paragraph 53A provides that the Public Services Ombudsman for Wales (“the Ombudsman”) must pay into the Welsh Consolidated Fund a sum equal to the total of all monies held by the Ombudsman immediately before the 1st April 2007. This payment must be made no later than 4 weeks after the date on which the certified accounts of the Ombudsman for the financial year ending with 31st March 2007 is laid before the 2006 Assembly under paragraph 17(2)(b) of Schedule 1 to the Public Services Ombudsman (Wales) Act 2005 c.10. New paragraph 53B(1) provides that the Auditor General for Wales (“the Auditor General”) must pay into the Welsh Consolidated Fund a sum equal to the total of all monies held by the Auditor General immediately before the 1st April 2007. This payment must be made no later than 4 weeks after the date on which a copy of the certified accounts of the Auditor General for the financial year ending with 31st March 2007 is laid before the 2006 Assembly under paragraph 15 of Schedule 8 to GOWA 2006. However paragraph 53B(2) excludes certain monies from that which the Auditor General must pay into the Welsh Consolidated Fund. Excluded from the requirement to pay into the Welsh Consolidated Fund is income which the Auditor General has earned through the exercise of functions related to local government in Wales and retained for the purposes of carrying out those functions and sums received by virtue of section 96C of GOWA 1998 and retained for the purposes of the Auditor General’s functions under that section. Similar provisions to those set out in paragraphs 53B(3) and (4) are made in paragraphs 9(3) and (4) of Schedule 8 to GOWA 2006.

Article 4 substitutes for paragraph 62 of Schedule 11 a new paragraph 62 concerning the application of section 128 of GOWA 2006. Section 128 enables the Welsh Ministers to authorise the use of resources or the payment of amounts which are necessary in the public interest and are urgent. This power comes into force on 1st April 2007 and for the period between 1st April and the end of the initial period section 128 shall have effect as amended by new paragraph 62. The initial period is defined in section 161(5) of GOWA 2006 as beginning with the day of the Assembly general election in May 2007 and ending with the day on which the first appointment of the First Minister is made under section 46 of GOWA 2006.

New paragraph 62 provides that until the end of the initial period section 128 may be used to authorise the use of up to £50 million in resources and payments out of the Welsh Consolidated Fund. The power to give such authorisation and the duty to report following such authorisation will depend on when the authorisation is given. Prior to the beginning of the initial period authorisation may be given by two or more members of the executive committee within the meaning of GOWA 1998 (“the executive committee”) and the executive committee must lay a report before the 1998 Assembly (see section 56 of GOWA 1998 as to that committee, which under the standing orders of the 1998 Assembly is known as the Assembly Cabinet). During the initial period authorisation may be given by two or more members of the Assembly constituted by GOWA 1998 (as it continues in existence by virtue of paragraph 22 of Schedule 11 to GOWA 2006) excluding the person who was the presiding officer immediately before the beginning of the initial period. The Assembly must then prepare a report in readiness for the Welsh Ministers who must, as soon as reasonably practicable after the end of the initial period, lay the report before the 2006 Assembly.

Article 5 amends paragraph 63 of Schedule 11, which modifies the application of section 129 of GOWA 2006 (approvals to draw) prior to the end of the initial period. Section 129 makes provision for the drawing of money out of the Welsh Consolidated Fund. It enables the Welsh Ministers to make a request for the grant of an approval to draw and requires requests to be approved by the Auditor General. Article 5 of this Order further modifies the application of section 129(1) and (3) of GOWA 2006 by making amendments to paragraph 63. It provides that in section 129(3) as well as in section 129(1) references to the Welsh Ministers shall, before the beginning of the initial period, be to a member of the executive committee and during the initial period be to a member of the Assembly constituted by GOWA 1998 (as it continues in existence by virtue of paragraph 22 of schedule 11 to GOWA 2006) excluding the person who was the presiding officer immediately before the beginning of the initial period. Where an approval to draw is granted by the Auditor General in response to a request made prior to the end of the initial period the Paymaster General must make the funds available to the 1998 Assembly.

Article 6 inserts into Schedule 11, immediately after paragraph 63, two new paragraphs. New paragraph 63A modifies the application, in relation to the accounts of the 1998 Assembly for 2006-07, of section 97 of GOWA 1998. Section 97, places a duty on the 1998 Assembly to prepare accounts and to submit these accounts to the Auditor General no later than 30^th November of the following financial year. Subsection (5)(a) requires the Auditor General to examine and certify the accounts and subsection (5)(b) requires the Auditor General to lay a copy of the certified accounts before the Assembly. The purpose of new paragraph 63A is to ensure that from the end of the initial period the duty to prepare and submit the accounts for 2006-07 transfers to the Welsh Ministers. New paragraph 63B makes similar modifications in relation section 101A of GOWA 1998 (whole of Government of Wales accounts) which like section 97 is saved from repeal until it has been complied with.

Article 7 inserts into Schedule 11 a number of new provisions concerning the staff of the Auditor General, the audit of the Auditor General’s accounts, the remit of the Audit Committee of the 2006 Assembly, the power of the Auditor General to carry out value for money examinations into the use of resources by the 1998 Assembly and the remuneration of the Auditor General and the Ombudsman out of the Welsh Consolidated Fund.

Paragraph 64A provides clarification as to the position of staff employed by the Auditor General. It makes it clear that staff employed by the Auditor General immediately before the repeal of section 92 of GOWA 1998 are to be taken after that time as having been appointed by the Auditor General to their employment under paragraph 7 of Schedule 8 to GOWA 2006.

Paragraph 64B provides clarification as to the position of the auditor of the accounts of the Auditor General. It similarly makes it clear that any auditor appointed under section 94(1) of GOWA 1998 immediately before the repeal of that section shall thereafter be taken to have been appointed by the 2006 Assembly under paragraph 14(1) of Schedule 8 to GOWA 2006.

Paragraph 64C applies paragraph 15 of Schedule 8 to GOWA 2006 to accounts for the financial year ending with the 31st March 2007 prepared by the Auditor General under section 93(8) of GOWA 1998. Consequently, accounts prepared under section 93(8) of GOWA 1998 must be submitted by the Auditor General to the auditor appointed to audit the accounts of the Auditor General no later than 31^st August 2007.

Paragraph 64D amends section 143(1) of GOWA 2006 to enable the Audit Committee of the 2006 Assembly to consider and lay before that Assembly a report on, any accounts, statement of accounts or report laid before the 1998 Assembly.

Paragraph 64E enables the Auditor General to carry out, or continue to carry out, value for money examinations into the activities of the 1998 Assembly, notwithstanding the repeal of section 100 of GOWA 1998.

Paragraphs 64F and 64G provide that sums required by the 1998 Assembly for the making of remuneration payments to the Auditor General or the Ombudsman and for meeting the expenses of the Ombudsman shall, to the extent that they relate to the financial year beginning with 1st April 2007, be a charge on the Welsh Consolidated Fund.