Select Committee on Social Security Fifth Report



CONCLUSION

Timing

26. The Association of Pension Lawyers queried the feasibility of bringing in pension sharing with effect from April 2000, because of the need to resolve issues of detail and the other challenges arising from the implementation of divorce law reform, the millennium date problem for computer systems and the introduction of the euro.[221] The Society of Pension Consultants suggested that "an implementation date of April 2001 would be prudent."[222] The Pensions Management Institute[223] and the Association of Pension Lawyers[224] made the same suggestion. Mr John Denham had no plans to change the original timetable but he told us "we have got to do an assessment of the strength of that case."[225] Other concerns include the delays in the roll-out of the National Insurance Recording System (NIRS 2), the legislative timetable for the new Financial Services and Markets Act and the introduction of accredited training schemes for divorce lawyers. While we would like to see the Pension Sharing Bill coming forward in the 1998-99 parliamentary session, we recommend that the Government should consult interested parties on the possibility of delaying the implementation of the Pension Sharing Act, together with the Regulations to be made under its provisions, until April 2001.

The consultation process

27. The Department of Social Security heralded the Consultation Panel as a radical new approach to Government business.[226] The parties to the Consultation panel were listed at Annex C of Part 1 of the Consultation Document. We have received written or oral evidence from most of the organisations represented on the Panel, who generally reported favourably on their experience of the process:

"I am very grateful that during the consultative process the Lord Chancellor's Ancillary Relief Advisory Group was included and, therefore, had the opportunity to have its say on the development. The points that we urged have all been taken and by and large reflected so we are both grateful that we were consulted and particularly grateful that the points we urged have been recognised." — Lord Justice Thorpe[227]

"We believe that pre-scrutiny of this sort reduces the chances of errors and gives the opportunity for useful refinements to be suggested to Bills which we hope will be incorporated, and we will end up with better, simpler, more effective legislation. So we very much welcome that." — Mr Peter Murray, National Association of Pension Funds[228]

"We were very supportive of it." — Mr Brian Arrighi, Association of British Insurers[229]

"It is very encouraging that there should have been an invitation to make representations at the stage before the document is published as an actual Bill. I do not have any adverse comment to make about the way in which it has been conducted." — Mr Martin Pointer, Family Law Bar Association[230]

"We have very much appreciated the thorough liaison which DSS has carried out with interested parties, including SPC, before the release of the papers, and we believe that this initiative has been worthwhile." — Society of Pension Consultants.[231]

28. The Consultation Panel inevitably comprised mainly organisations representing commercial and professional interests, although Fairshares was represented.[232] Families Need Fathers regretted that they had not been included in the Panel.[233] Another limitation is that the panel stage of the consultation was not conducted in public. There is a difficulty in finding ways of consulting with representatives of the general public or 'consumers' of proposed legislative changes, which can only partly be overcome by the use of fashionable marketing techniques such as opinion polls or focus groups. It may well be that the expectation of pre-legislative scrutiny by the select committee had an effect on the thoroughness of the consultation process, so that this Bill has perhaps been given more detailed consideration in the pre-drafting stage than is often possible.

29. The Consultation Document was published in two volumes on 8 June 1998. It was made available to Members in the Vote Office[234], and announced in a written Answer,[235] but it was not formally laid upon the Table on the House as a Command Paper, unlike the previous Green and White Papers on this subject. Indeed the Consultation Document is a more ephemeral publication than a Command Paper; it carries no ISBN number and is not priced for sale. Whatever advantages this had for the internal economy of the DSS in avoiding charges for copies sent to interested parties, it is normally easier for the general public at the time, and for researchers in the future, to obtain Government papers if they are properly published.[236] We recommend that any draft Bill published by the Government in future should be laid before Parliament as a Command Paper.

30. The select committee's inquiry — with its public evidence sessions — has added another dimension to the Department's preparation of the legislation, but has not added unduly to the logistical burdens of the Department.[237] The Consultation Document invited responses by 7 August 1998, although in practice the Department was flexible over considering later responses;[238] some of the respondents complained that it was not possible to put together full and detailed responses in the time available.[239] We ourselves were constrained by the timing of the publication of the draft Bill, and the desirability of concluding our Report before the end of the Session. Several of the witnesses from whom we took evidence in July had to resort to undertaking to send us their considered views later in writing.[240] We recommend that Bills which are to be published in draft for pre-legislative scrutiny by a select committee in the Session before their formal introduction should be published no later than Easter, in order to allow potential witnesses plenty of time to prepare their evidence and for the select committee to complete its work before the end of the Session.

31. The Minister was very positive about the value of the pre-legislative process:

"Certainly the process has flushed out a few areas where drafting can be improved; where some minor changes need to be made to the draft legislation. ... We would probably say we have received the type of representations that we might have expected from the practitioners. The difference is that instead of receiving those once the Bill is in Committee, which is very often the case and time is pressing to make any changes, we have had them sufficiently in advance to be able to take those points into account and hopefully have a better prepared Bill by the time we go into Committee."[241]

It remains to be seen how the Pension Sharing Bill will fare in its Committee stage, and to what extent our own Report will have contributed to the making of better legislation. The Select Committee on the Modernisation of the House of Commons, in particular, will want to review the results of the different approaches to improving the legislative process, of which a pre-legislative inquiry by the appropriate departmentally-related select committee is only one of a number of possible approaches.[242] There might be a case for a separate legislation committee for each major department to hold pre-legislative inquiries as well as debating Bills at the Standing Committee stage.

32. In conclusion, we endorse the written evidence from the Trades Union Congress, who welcomed the Government's approach to dealing with this legislation as part of the modernisation of the House of Commons:

"The publication of a draft bill combined with pre-legislative scrutiny by the Social Security Select Committee should permit technical difficulties to be ironed out at an early stage and, ultimately, lead to stronger final legislation. This should prove a particular advantage in an area such as pensions and divorce where 'the devil is in the detail'."[243]

33. Details of the specific issues raised in evidence to the Committee on the contents of the draft legislation are listed in the Annex to this Report.


221   Appendix 5 paragraph 9. Back

222   Appendix 11. Back

223   Appendix 12. Back

224   Appendix 5 page 161. Back

225   Q.616. Back

226   DSS press release 97/256, 25 November 1997. The Panel had been set up in June 1997. Back

227   Q.125. Back

228   Q.182. Back

229   Q.189. Back

230   Q.281. Back

231   Appendix 11. Back

232  Consultation Document Pension sharing on divorce: reforming pensions for a fairer future (DSS June 1998) Part 1:consultation Annex C; Q.500. Back

233   Q. 579. Back

234   Vote Office Demand Form for Sessional Printed Papers No.59, 11 June 1998. Back

235   HC Deb 8 June 1998 vol 313 col 467w. A copy of the Consultation Document was placed in the Library of the House of Commons. Back

236   The Consultation Document was made generally available to any user of the Internet at the Department's website at www.dss.gov.uk Back

237   Q.586. Back

238   Q.586. Back

239   Q.182; Appendix 7 (Law Society of Scotland) page 178, Appendix 13 (NAPF) paragraph 1.1. Back

240   Q.185, Q.228-9, Q.283-4, Q.290, Q.346, Q.399, Q.400,Q.438, Q.463, Q.466. Back

241   Q.586. Back

242   First Report of 1997-98 from the Select Committee on Modernisation of the House of Commons, The Legislative Process, HC 190 paragraph 21. Back

243   PS 34 TUC submission to DSS consultation available from Congress House price £2. Back


 
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