HC Deb 16 July 1973 vol 860 cc209-10

Lords Amendment: No. 90, in page 117, line 27, leave out subsections (1) to (3) and insert: (1) Subject to and in accordance with Schedule (Priority of debts in cases of personal and company insolvency) to this Act, the debts specified in subsection (2) of this section shall be included among those accorded priority under the relevant enactments specified in that Schedule (being enactments relating to personal insolvency, companies' winding-up and the remedies of debenture holders and charges); and in subsection (2) below "the relevant event"has the meaning indicated by that Schedule.

(2) The debts referred to in subsection (1) above are—

  1. (a) any sum owed on account of Class 1 contributions (primary or secondary) or Class 2 contributions payable in either case in the period of 12 months immediately preceding the date of the relevant event;
  2. (b) any sum owed on account of an earner's contributions to an occupational pension scheme, or of primary reserve scheme contributions, being in either case contributions deducted from earnings paid in the period of 4 months immediately preceding the date of the relevant event, or otherwise due in respect of earnings paid or payable in that period;
  3. (c) subject to subsection (4) below, any sum owed on account of an employer's contributions to a recognised occupational pension scheme in respect of recognised pensionable employment, and payable in the period of 12 months immediately preceding the date of the relevant event (the reference to an employer being construed in accordance with regulations made under section 49(5) of this Act);
  4. (d) any sum owed on account of secondary reserve scheme contributions payable in the period of 12 months immediately preceding the date of the relevant event; and
  5. (e) subject to subsection (5) below, any sum owed on account of a reserve scheme premium payable at any time before, or in consequence of, the occurrence of the relevant event.
(3) Any priority accorded by the enactments relating to personal insolvency which are specified in Schedule (Priority of debts in cases of personal and company insolvency) to this Act to debts consisting of income tax assessed and unpaid shall be accorded, to the same extent and subject to the same limitations, to debts consisting of Class 4 contributions assessed and unpaid, so far as owed to the Inland Revenue and not to the Secretary of State or the Northern Ireland Ministry.

Mr. Dean

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

Mr. Speaker

We shall take at the same time Lords Amendment No. 167, after Schedule 21, in page 208, line 42. at end insert new Schedule "C"—Priority of Debts in Cases of Personal and Company Insolvency.

Mr. Dean

The main effect of these amendments is to simplify the structure of the provisions of the Bill relating to the priority in bankruptcy, and so on, of contributions held in the basic scheme, the reserve scheme and recognised occupational schemes, and premiums owed under the reserve scheme.

Lords amendment agreed to.

Subsequent Lords amendments agreed to, one with special entry.

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