Baroness Finn (Con)

I thank the Minister for her response. On the point raised by the noble Lord, Lord Palmer, we are looking at amending Clause 13(2)(b), on the relevant costs awarded in subsection (1) by a court or tribunal. The costs that are reasonably incurred by the Minister exercising powers in Chapter 4 are not determined by a court or tribunal, and the amendment seeks to see whether the tribunal should also play a role under subsection (2)(b). As we conclude the discussion on this group, I return to the central questions that our amendments seek to address—how we ensure that efforts to tackle fraud in the public sector are not undermined by asymmetrical powers and make sure that the outcome from the processes set out in this part of the Bill benefit the taxpayer. We are all agreed that fraud against the public purse must be confronted robustly, but in doing so we must not create a framework in which public authorities are financially penalised for their co-operation, nor one in which the Cabinet Office is both investigator and beneficiary, retaining funds without transparent justification or sufficient oversight. As we have discussed, the PSFA cannot currently initiate proactive investigations and the burden falls heavily on public authorities to refer themselves, even when doing so may lead to reputational harm and financial loss. That is not a system that encourages good behaviour; it is one that risks disincentivising it. Our amendments raise two practical concerns: first, that funds recovered through fraud investigations should as a matter of principle be returned to the authority from which they were taken, unless there is a compelling and transparent reason not to do so. We are concerned that, while agreement between the Cabinet Office and the public authority is required in the Bill, the agency and ability of a public authority to make a legitimate argument for retention of recovered funds may be impeded following a fraud investigation. Secondly, we wish to ensure that any costs that the Minister seeks to recover in undertaking these functions must be subject to independent oversight and not left to ministerial discretion alone. I totally take the point that the Minister made about the cost and burden on the judicial system, but there is also the principle of fairness and independence. These are not abstract points. They go to the heart of whether this legislation creates a fair and credible system, one that public authorities can engage with in good faith and that the public can have confidence in. Our role in opposition is not only to make suggestions as to how the Government could improve their proposals but to ask questions of the Minister and to seek further clarification on the points the Government have considered. I urge the Government, therefore, to reflect on these proposals. They do not diminish the aims of the Bill but rather strengthen them by ensuring that the powers it creates are matched by the accountability and fairness that must always underpin public service. On that basis, I beg leave to withdraw.