HC Deb 16 November 1933 vol 281 cc1158-9

"(1) Where a holding company on an application for a licence signifies to the licensing authority its desire that the provisions of this section should have effect as respects a subsidiary company specified in the application, then, in relation to the application and to any licence granted thereon to the holding company and to the use of the authorised vehicles, this Part of this Act shall have effect—

  1. (a) as if goods vehicles belonging to, or in the possession of, the subsidiary company were vehicles belonging to, or in the possession of, the holding company:
  2. (b) as if, where a goods vehicle is used in circumstances in which, but for this provision, the subsidiary company would be deemed to be the user thereof, the holding company were the user thereof:
  3. (c) as if a trade or business carried on by the subsidiary company were a trade or business carried on by the holding company:
  4. (d) as if a person employed by the subsidiary company as a driver or statutory attendant of an authorised vehicle were a person employed by the holding company:
  5. (e) as if the subsidiary company were an applicant for the licence.

(2) The provisions of this section shall cease to have effect as respects any subsidiary company—

  1. (a) if the holding company gives notice to the licensing authority that it desires that this section should, as from any date, cease to apply to that company, as from that date;
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  2. (b) as from the date on which that company ceases to be a subsidiary company of the holding company.

(3) In this section the expression 'holding company' means a company which is the beneficial owner of not less than ninety per cent, of the issued share capital of another company, and the expression 'subsidiary company,' in relation to a holding company, means a company not less than ninety per cent, of the issued share capital of which is in the beneficial ownership of the holding company.

Where a subsidiary company (as hereinbefore defined) is the beneficial owner of any shares of another company, those shares shall be treated for the purposes of the foregoing definitions as if they were in the beneficial ownership of the holding company."

Mr. STANLEY

I beg to move, "That this House doth agree with the Lords in the said Amendment."

Hon. Members will remember that we had considerable discussion both in Committee and on Report with regard to the position of subsidiary companies, and it was pointed out that some of the new rationalised amalgamations might be badly prejudiced by the provisions of this Bill. Cases were instanced where a group of companies had pooled the whole of their transport in one company, and it was pointed out that they would be prevented from running under a "C" licence, whereas their competitors who were not rationalised would be able to do it. I promised then I would look into the matter and meet the point if I could do it in a way which would give no loophole for evasion by other people. I think if hon. Members study this Clause they will see that it meets the point. The definition of "subsidiary company" is the definition which was adopted in the Finance Act, 1930, and it provides that the holding company must be the beneficial owner of not less than 90 per cent. of the issued share capital of the subsidiary company. I think hon. Members will agree that that provision is quite enough to prevent this Clause from being used as a means of evading the obligations in the Bill. On the other hand, it will meet certain cases which have been brought to my notice which otherwise would be prejudiced.

Question, "That this House doth agree with the Lords in the said Amendment," put, and agreed to.

Subsequent Lords Amendments to page 15, line 18, agreed to.