BUSINESS ECoNoMICS

Business Economics

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Business Economics

Question 1- Explain the distinction between an Act of parliament and statutory intrument

Statutory Instruments, also known as SIs, are a form of legislation which allow the provisions of an Act of Parliament to be subsequently brought into force or altered without Parliament having to pass a new Act. They are also referred to as secondary, delegated or subordinate legislation.

Acts of Parliament confer powers on Ministers to make more detailed orders, rules or regulations by means of statutory instruments. An Act will often contain a broad framework and statutory instruments are used to provide the necessary detail that would be too complex to include in the Act itself. Statutory instruments can also be used to amend, update or enforce existing primary legislation. This article explains the citation of United Kingdom legislation, including the systems used for legislation passed by devolved parliaments and assemblies, for secondary legislation, and for prerogative instruments. This subject is relatively complex both due to the different sources of legislation in the United Kingdom, and because of the different histories of the constituent countries of the United Kingdom. Statutory instruments (SIs) are a type of delegated legislation. Approximately 3000 SIs are issued each year, making up the bulk of delegated legislation. About two-thirds of SIs are not actively considered before Parliament and simply become law on a specified date in the future. SIs are normally drafted by the legal office of the relevant government department. Consultations often take place with interested bodies and parties. The Delegated Powers Scrutiny Committee (established in 1992) keeps under constant review the extent to which legislative powers are delegated by Parliament to government ministers, and examines all Bills with delegating powers which allow SIs to be made before they begin their passage through the House. There is an informal understanding in the Lords that, when the Delegated Powers Committee has approved provisions in a Bill for delegated powers, the form of those powers should not normally be the subject of debate during the Bill's subsequent passage. The House of Commons has no equivalent committee.

Established in 2003, the Lords Merits Committee considers every negative and affirmative SI (or draft SI) laid before Parliamento - about 1200 per year - with a view to determining whether the special attention of the House should be drawn to it on any of the following grounds that it:

is politically or legally important or gives rise to issues of public policy likely to be of interest to the House

may be inappropriate in view of the changed circumstances since the passage of the parent Act

may inappropriately implement EU legislation

may imperfectly achieve its policy objectives

The Merits Committee reports every week, normally considering SIs written 12-15 days of being laid before the House. Like the Delegated Powers and Regulatory Reform Committee, the Merits Committee's role is to advise the House of Lords, and it is for the House to decide whether or not to act on the Committee's conclusions.

Part of the work ...