HC Deb 04 June 1986 vol 98 cc1022-49

Question again proposed, That the amendment be made.

Mr. Townend

Therefore, I am very grateful to my hon. Friend for dealing with those points.

Mr. William Cash (Stafford)

My hon. Friend the Member for Bridlington (Mr. Townend) referred to the Abbey National building society. I want to raise with my hon. Friend the Economic Secretary to the Treasury a point on the 20 per cent. conversion issue. As it has been maintained that this will be a realistic option for building societies, will my hon. Friend say what evidence might be required before it would seem reasonable to learn about that requirement of 20 per cent., short of a building society risking loss of confidence by attempting the leap and then failing?

Mr. Ian Stewart

If my hon. Friend will consult the Official Report of today's proceedings he will find that I touched on that matter earlier when I was asked a similar question.

As for the substance of this group of amendments, I am happy to respond to the hon. Member for Thurrock (Dr. McDonald). I do not believe that the anxieties of the society whose letter she quoted will be borne out in practice. She said that it was concerned that these provisions might place unreasonable pressure on small societies. I do not think that that will be the case. Small societies are protected by the disproportionate merger procedures, so they would be less vulnerable to approaches of the kind that that society mentioned. If those two provisions are taken together, building societies will not be exposed in that damaging way.

I am grateful to my hon. Friend the Member for Bridlington (Mr. Townend) for what he had to say. I do not believe that the previous provisions would have sounded anything so dramatic as the death knell of smaller societies, but I came to the conclusion, after further consideration of this matter, that the proposed remedy was out of scale to the problem. Clearly there was a problem, but I was not convinced that it was necessary to erect such an elaborate procedure to deal with it. The notification process that I have now put forward is a practical and sensible option in the circumstances. I think that the hon. Member for Thurrock can be assured that, coupled with the disproportionate merger provisions, it should not have an adverse effect on the society that she mentioned.

Amendment agreed to.

  1. Clause 85
      2. c1023
    1. MERGERS: COMPENSATION FOR LOSS OF OFFICE AND BONUSES TO MEMBERS 19 words
  2. Clause 86
      3. c1023
    1. TRANSFER OF BUSINESS TO COMMERCIAL COMPANY 15 words
  3. Clause 87
      4. c1023
    1. CANCELLATION OF REGISTRATION 15 words
  4. Clause 89
      5. c1023
    1. RESTRICTION OF USE OF CERTAIN NAMES AND DESCRIPTIONS 147 words
  5. Clause 90
      6. c1023
    1. POWER TO REQUIRE BUILDING SOCIETY TO CHANGE MISLEADING NAME 21 words
  6. Clause 93
      7. c1023
    1. OFFENCES: LIABILITY OF OFFICERS AND DEFENCE OF DUE DILIGENCE 33 words
  7. Clause 98
      8. cc1023-4
    1. INTERPRETATION 303 words
  8. Clause 99
      9. c1024
    1. AMENDMENTS, REPEALS AND TRANSITIONAL AND SAVING PROVISIONS 41 words
  9. Clause 102
      10. cc1024-33
    1. PROVISION OF CONVEYANCING SERVICES BY BUILDING SOCIETIES AND OTHER RECOGNISED INSTITUTIONS 26 words
      1. `SCHEMES FOR INVESTIGATION OF COMPLAINTS
          2. cc1024-5
        1. PART I MATTERS TO BE PROVIDED FOR IN SCHEMES 251 words
          2. cc1025-6
        2. PART II REQUIREMENTS FOR RECOGNISED SCHEMES: MATTERS OF COMPLAINT 680 words
          3. cc1026-8
        3. PART III MINIMUM REQUIREMENT FOR RECOGNISED SCHEMES: OTHER PROVISIONS 1,329 words
        cc1028-30
      2. `SCHEMES FOR INVESTIGATION OF COMPLAINTS: RECOGNITION, ACCESSION, ETC. 1,616 words
      3. 'SETTLEMENT OF DISPUTES
          4. cc1030-1
        1. Part I 433 words
          2. cc1031-2
        2. PART II ARBITRATION 546 words
      4. `TRANSFERS OF BUSINESS: SUPPLEMENTARY PROVISIONS
          5. c1032
        1. PART I ISSUE OF STATEMENT TO MEMBERS 366 words
          2. cc1032-3
        2. PART II CONFIRMATION BY COMMISSION: PROCEDURE 295 words
  10. Schedule 1
      11. c1033
    1. THE BUILDING SOCIETIES COMMISSION 94 words
  11. Schedule 2
      12. cc1033-6
    1. ESTABLISHMENT, INCORPORATION AND CONSTITUTION OF SOCIETIES 1,684 words
  12. Schedule 3
      13. c1036
    1. AUTHORISATION: SUPPLEMENTARY PROVISIONS 409 words
  13. Schedule 4
      14. c1037
    1. ADVANCES: SUPPLEMENTARY PROVISIONS 156 words
  14. Schedule 5
      15. c1037
    1. THE BUILDING SOCIETIES INVESTOR PROTECTION BOARD 16 words
  15. Schedule 6
      16. c1037
    1. INSOLVENCY PAYMENTS: TRUSTS AND JOINT HOLDINGS 28 words
  16. Schedule 7
      17. c1037
    1. INVESTORS: SPECIAL PROVISIONS 160 words
  17. Schedule 8
      18. cc1037-9
    1. POWERS TO PROVIDE SERVICES 82 words
      1. 'PART 1A
          2. cc1038-9
        1. GENERAL RESTRICTION ON SERVICES ABROAD 739 words
  18. Schedule 10
      19. cc1039-41
    1. REQUISITE PARTICULARS OF INCOME OF RELATED BUSINESSES 15 words
      1. `PART I
          2. c1039
        1. REQUISITE PARTICULARS WHERE NO ADOPTION OF PART 11'. 86 words
      2. 'PART II
          3. cc1039-40
        1. REQUISITE PARTICULARS ON ADOPTION OF THIS PART 728 words
      3. PART III
          4. cc1040-1
        1. SUPPLEMENTARY 385 words
  19. Schedule 11
      20. c1041
    1. AUDITORS: APPOINTMENT, TENURE, QUALIFICATIONS 165 words
  20. Schedule 12
      21. cc1041-2
    1. WINDING UP: SUPPLEMENTARY PROVISIONS 291 words
  21. Schedule 13
      22. cc1042-3
    1. MERGERS: SUPPLEMENTARY PROVISIONS 249 words
      1. 'PART II
          2. cc1042-3
        1. NOTIFICATION OF PROPOSALS FOR MERGER 660 words
    2. Schedule 14
        3. cc1043-6
      1. AMENDMENTS OF ACTS 12 words
        1. `PART I
            2. cc1043-5
          1. UNITED KINGDOM 876 words
        2. 'PART II
            3. cc1045-6
          1. NORTHERN IRELAND 607 words
    3. Schedule 15
        4. cc1046-7
      1. REPEALS 314 words
        1. 'PART II
            2. c1047
          1. REVOCATION EXTENDING TO GREAT BRITAIN 253 words
    4. Schedule 16
        5. cc1047-9
      1. TRANSITIONAL AND SAVING PROVISIONS 894 words
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