HC Deb 27 March 1963 vol 674 cc1405-6
Mr. Green

I beg to move, in page 3, line 19, to leave out from "descriptions" to the end of line 23.

Mr. Speaker

It would be convenient, I think, to discuss with this Amendment the Amendment to Clause 25. in page 19, line 15. at end insert: (3) Regulations made under paragraph (b) of subsection (1) of section 3 may direct that all or any of the provisions of this Act which apply to a company in respect of or in consequence of the issue of an advertisement for deposits shall not apply to any company in respect of or in consequence of the issue of an advertisement (whether issued before or after the regulations come into force) of any class exempted by the regulations from section 2; and such regulations may include provision—

  1. (a) for requiring any company which, by virtue of the regulations, is exempt from the requirement to deliver accounts under this Act, to deliver a notice to that effect to the Registrar and to the Board of Trade; and
  2. (b) for applying subsection (4) of section 7 in relation to any such company which thereafter ceases to be so exempt.

Mr. Green

Yes, Mr. Speaker.

Clause 3 (I, b) provides for the exemption by regulations of those advertisements specified in the regulations from the general prohibition on the issue of advertisements contained in Clause 2. Clause 3 (2) gives the Board of Trade power to direct that certain provisions—the most important being those requiring the delivery of accounts—shall not apply in relation to the exempted advertisements; with the result that if a company issues such an advertisment it need not deliver accounts as a consequence of the issue of such advertisements.

It is, however, by no means certain on the present drafting of the Bill that the directions which may be given under Clause 3 (2) can be given in relation to advertisements issued before the regulations are made. The result may be that although the advertisements issued after the regulations were made may not attract delivery of accounts, those issued before may do so, notwithstanding the direction.

This is of particular importance when the Bill first becomes law, since there are a number of companies—for example, charitable companies—which are now issuing advertisements for deposits but which we do not want to be required to deliver accounts. Without these Amendments these companies might be required to deliver accounts as a consequence of their past advertisements, until they can terminate their liability to do so by giving necessary notices under Clause 7 (2) and by waiting at least three years. This would largely nullify the point of giving directions. The problem could also arise at any time when it was decided as a matter of policy that the issue of a particular kind of advertisement need no longer attract the accounting provisions of the Bill.

The main purpose of these Amendments is to make it clear that if a direction is given, advertisements falling within the exempted class, whether issued before or after the regulations are made, will not attract the provisions of the Bill requiring the delivery of the accounts. It is, therefore, essentially a drafting Amendment to make clear the intention which I. expressed in Committee.

Mr. Mitchison

This Amendment gives very wide powers to the Board of Trade. I understand the hon. Gentleman's reasons for it. I can only say to him that if I had rather more confidence either in the discretion or in the good intentions of the Board of Trade I should accept it with less reluctance than I do.

Amendment agreed to.