HC Deb 14 February 1979 vol 962 cc1158-9
Mr. Maxwell-Hyslop

I beg to ask leave to move the Adjournment of the House, under Standing Order No. 9, for the purpose of discussing a specific and important matter that should have urgent consideration, namely, the discovery that Statutory Instruments Nos. 539 and 540 of 1977, which purport to set a date upon which the assets of firms nationalised by the Aircraft and Shipbuilding Industries Act 1977 vest respectively in British Aerospace and British Shipbuilders, are invalid, and such purported vesting therefore a nullity in law. I took to your office at 9 a.m. today, Mr. Speaker, a notice that I wished to raise this matter today under Standing Order No. 9. For a completely different reason, I had cause to check the dates when these two orders were made. I then glanced at the text and noted that the section of the Act which allegedly empowered the Secretary of State to make such orders was section 56(1) of the Aircraft and Shipbuilding Industries Act. This rang no bell with me as conferring any such power, so I checked the text of the Act.

Sure enough, section 56 is not an empowering section at all but an interpretation section. In its relevant paragraph it merely defines the meaning of the two phrases "aircraft industry vesting date" and "shipbuilding industry vesting date" respectively. It attaches a specific legal import to these two phrases in the event that the Secretary of State should make an appropriate order by statutory instrument. But it specifically does not endow him with the power to make any such order by statutory instrument. It refers to the purposes of section 19(1) of this Act". But section 19(1) of the Act does not empower the Secretary of State to make such an order either, nor does any other section or schedule of the Act.

Without statutory empowerment to make such an order, statutory instruments Nos. 539 and 540 of 1977 are ultra vires and therefore invalid.

Subsections (7) and (8) of section 1 of the Aircraft and Shipbuilding Industries Act 1977 do indeed empower the Secretary of State to make certain orders by statutory instrument subject to annulment in pursuance of resolution by either House of Parliament. But the exercise of this power is confined to alterations in the name of either corporation and does not include the fixing of a vesting date.

That this matter is specific must be clear. It is important because it means that both corporations are in unlawful possession of the assets purportedly taken into public ownership on the purported vesting dates, and cannot lawfully make use of those assets or enter into contracts which assume ownership of them. It should have urgent consideration so that the House can consider what action ought to he taken to mitigate the results of the Secretary of State's ultra vires action in making these two orders without statutory power so to do.

Mr, Speaker

The hon. Member for Tiverton (Mr. Maxwell-Hyslop) gave me notice before 12 o'clock this morning that he would seek leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he believes should have urgent consideration, namely, the discovery that Statutory Instruments Nos. 539 and 540 of 1977, which purport to set a date upon which the assets of firms nationalised by the Aircraft and Shipbuilding Industries Act 1977 vest respectively in British Aerospace and British Shipbuilders, are invalid, and such purported vesting therefore a nullity in law. I listened with very great care to the hon. Gentleman, and I followed, as best I could, the arguments which he presented to the House. I have given careful consideration to the hon. Gentleman's representations, but I have to rule that his submission does not fall within the provisions of the Standing Order, and, therefore, I cannot submit his application to the House.