Section 77: The Office for Nuclear Regulation
378.This section establishes the ONR as a body corporate. Therefore, it will have a legal identity in its own right, independent of its members.
379.The section introduces Schedule 7 to the Act which covers a broad range of matters relating to the ONR, its constitution and how its staff and members are to be appointed and remunerated.
380.Schedule 7 also permits the ONR to authorise its staff, members, inspectors and committees to do, on its behalf, anything required to be done by the ONR (paragraph 18). The exercise of regulatory functions in particular cases can only be delegated to members of the ONR’s staff (paragraph 18(3)) or inspectors appointed by the ONR under section 19 of the Health and Safety at Work etc. Act 1974. So, it will be possible to delegate such functions to executive members of the ONR (those listed under paragraph 3) and other members of suitably qualified staff of the ONR but not to non-executive members of the ONR (those listed under paragraph 4). Regulatory function is defined in section 112.
381.Committees of the ONR may include people who are not members of or members of staff of the ONR (see paragraph 16(2) of Schedule 7). However, such committees will not be able to perform regulatory functions in particular cases on behalf of the ONR but may, for example, carry out functions such as developing policies.
382.The ONR will not be a Crown body. ONR’s staff and members will not be civil servants (see paragraphs 1, 5 and 14 of Schedule 7) but they will be treated as Crown servants for the purposes of the Official Secrets Act 1989 (see paragraphs 6 and 14(3) of Schedule 7). Civil servants who are seconded to the ONR will continue to be civil servants during the period of secondment.
383.The ONR will consist of a predominantly non-executive “Board” numbering no more than 11 members including a non-executive chair, the Chief Nuclear Inspector and the Chief Executive Officer (the latter two being employees of the ONR), as well as further executive members (i.e. members who are employees of the ONR) and non-executive members (i.e. members who are not members of the ONR’s staff). The ONR’s staff includes both employees of the ONR and persons who have been seconded to it. The overall number of non-executive members (at least 5 but no more than 7) should always exceed the number of executive members (up to 4 in total) (see paragraphs 2, 3 and 4 of Schedule 7). In order to facilitate a close working relationship with the Health and Safety Executive, there is provision for the Health and Safety Executive to appoint one of its non-executive members to the ONR Board (see paragraph 4(4)) and for the ONR to appoint one of its non-executive members to the Health and Safety Executive’s Board (see paragraph 15 (4) of Schedule 12).
384.Executive members will be appointed by the ONR and non-executive members, other than the Health and Safety Executive member, will be appointed by the Secretary of State (see paragraph 4 of Schedule 7).
385.Under paragraph 21 of Schedule 7, the ONR will be required to keep financial records, and submit accounts in respect of each financial year to the Secretary of State as well as to the Comptroller and Auditor General (who will need to audit the accounts and report on them to Parliament). “Financial year” is defined in paragraph 28 of Schedule 7 as a period of 12 months ending on 31st March.
386.The ONR will also be required to prepare a long-term strategy for the carrying out of its functions and must act in accordance with this strategy (see paragraph 22 of Schedule 7). The ONR will be required to consult when preparing its strategy, and the strategy will require Secretary of State approval before being laid before Parliament. The strategy may be reviewed at any time, but must be reviewed at least every 5 years.
387.The ONR will also be required, under paragraph 23 of Schedule 7, to prepare an annual plan about its activities for each forthcoming financial year, which is to be approved by the Secretary of State, published and laid before Parliament. Additionally, the ONR will need to prepare, in respect of each financial year, a report to the Secretary of State on the performance of its functions during that year (see paragraph 24 of Schedule 7).
388.The annual plan and associated report and the strategy (including revisions to it) must be laid before Parliament by the Secretary of State and published by the ONR (see paragraph 25 of Schedule 7), although information may be redacted from the documents in the interests of national security.
389.The ONR may appoint employees and set the terms and conditions of that employment, including remuneration. ONR may also take on secondees to serve as members of ONR staff, for example, staff seconded from the Health and Safety Executive (see paragraph 12 of Schedule 7).
390.Schedule 7 also covers a number of other financial matters. The Secretary of State may pay grants to the ONR with consent from the Treasury (see paragraph 26), and the ONR is empowered to borrow money – up to £35 million (with the possibility of that amount being extended up to £80 million by order made by the Secretary of State). This ability to borrow money gives ONR the option, for example, to make up interim shortfalls in cash flow from month to month when invoicing industry for ONR’s nuclear site licensing costs quarterly.
391.The ONR is also given a power in paragraph 20 of Schedule 7 to indemnify “ONR officers” in certain circumstances against all or any part of any personal liability that they might incur in the execution, or purported execution, of their functions. The ONR may only indemnify such officers if it is satisfied that the officer honestly believed they were acting within their “relevant powers” and the act or omission giving rise to the liability is one that the ONR officer was required or entitled to do by virtue of being an ONR officer. “ONR officer” is defined in paragraph 20(4) of Schedule 7 as those appointed by the ONR as inspectors under the Act and under specified fire safety legislation, as well as under the Employers’ Liability (Compulsory Insurance) Act 1969.
392.The power provided in paragraph 20 of Schedule 7 is without prejudice to any other power the ONR may have to indemnify its staff, its members or persons appointed by it. It also does not apply where the ONR is otherwise required to indemnify its officers (see paragraph 20(3) of Schedule 7).
