Keenan and Riches’BUSINESS LAW

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Chapter 2Law making

Under the Human Rights Act 1998, certain courts may
make a ‘declaration of incompatibility’ if legislation is
incompatible with the European Convention on Human
Rights. The Human Rights Act will be considered in
more detail later in this chapter.

The making of an Act of Parliament
The procedure by which a legislative proposal is trans-
lated into an Act of Parliament is long and complicated.
Until all the stages in the process have been completed,
the embryonic Act is known as a Bill. There are different
types of Bill:

1 Public Billschange general law or affect the whole
of the country. It is assumed that the Bill extends to all
of the United Kingdom unless there is a specific pro-
vision to the contrary. For example, the Supply of Goods
and Services Act 1982 applies to England, Wales and
Northern Ireland but not to Scotland.

2 Private Billsdo not alter the law for the whole com-
munity but deal with matters of concern in a particular
locality or to a private company or even individuals.
Private Bills are mainly promoted by local authorities
seeking additional powers to those granted by general
legislation.
3 Government Billsare introduced by a minister with
the backing of the government and are almost certain to
become law. Some of the Bills are designed to imple-
ment the government’s political policies, but others may
be introduced to deal with an emergency which has
arisen or to amend or consolidate earlier legislation.

4 Private members’ Billsare introduced by an indi-
vidual MP or private peer (in the House of Lords) with-
out guaranteed government backing. They usually deal
with moral or legal questions rather than with purely party
political matters. A private member’s Bill is unlikely to
become law unless the government lends its support. Some
important law reform measures started life as a private
member’s Bill, including the Murder (Abolition of the
Death Penalty) Act 1965 and the Abortion Act 1967.

A Bill must pass through several stages receiving the
consent of the Commons and Lords before it is pre-
sented for the Royal Assent. A Bill may generally start
life in either the Commons or the Lords and then pass to
the other House, but in practice most public Bills start in
the Commons and then proceed to the Lords; certain
kinds of Bill, such as Money Bills, must originate in the

19

Commons. The procedure for a Bill which is introduced
in the Commons is illustrated in Fig 2.2.
All Bills go through both the House of Commons and
the House or Lords before receiving the Royal Assent.
Normally, the consent of both Houses is required but

Procedure Comment

House of Commons

First Reading The title of the Bill is formally
read out. It is then printed and
published.
Second The minister (or MP) in
Reading charge explains the purpose of
the Bill and a debate on its
general principles follows.
Provided the Bill survives any
vote, it passes to the
Committee stage.
Committee The Bill is discussed in detail by
Stage a Standing Committee (20 –50
MPs chosen according to party
strengths) or the whole House
sitting as a Committee. The Bill
is examined clause by clause and
any amendments are voted on.
Report Stage The Bill is formally reported to

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made in Committee are
considered.
Third Reading The Bill is debated again in
general terms. Only minor verbal
amendments can be made. If
there is a majority in favour, the
Bill proceeds to the other House.

House of The Bill passes through a similar
Lords procedure in the Lords. As a
non-elected body, it does not
have an absolute right of veto,
but it may delay the progress
of a Bill.

Royal Assent This is something of a formality
as the Queen’s approval is never
refused these days. The Bill is
now an Act of Parliament.

Figure 2.2The legislative process
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