HC Deb 31 October 1986 vol 103 cc599-600

Lords amendment: No. 392, after clause 173 insert the following new clause— .—(1) Subject to the provisions of this section, section 30, 53(1)(c), 78 and 111(2)(c) and (d) above shall apply as if Gibraltar were a member State. (2) References in those provisions to a national of a member State shall, in relation to Gibraltar, be construed as references to a British Dependent Territories citizen or a body incorporated in Gibraltar. (3) In the case of a collective investment scheme constituted in Gibraltar the reference in subsection (3)(a) of section 78 above to a relevant community instrument shall be taken as a reference to any Community instrument the object of which is the co-ordination or approximation of the laws, regulations or administrative provisions of member States relating to collective investment schemes of a kind which satisfy the requirements prescribed for the purposes of that section. (4) The Secretary of State may by regulations make such provision as appears to him to be necessary or expedient to secure—

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  1. (a) that he may give notice under subsection (2) of section 78 above on grounds relating to the law of Gibraltar; and
  2. (b) that this Act applies as if a scheme which is constituted in a member State other than the United Kingdom and recognised in Gibraltar under provisions which appear to the Secretary of State to give effect to the provisions of a relevant Community instrument were a scheme recognised under that section.".

Mr. Howard

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

The new clause makes provision for investment businesses in Gibraltar. It treats Gibraltar as if it were a member state of the EC in its own right. We believe that such a course is the only one that is consistent both with Gibraltar's position under the treaty of accession, since for financial services Gibraltar is effectively part of the EC, and with Gibraltar's constitution, under which it enacts its own legislation.

Mr. Gould

Simple curiosity leads me to ask whether any attempt was made to consult the Spanish authorities about this.

Mr. Cash

I wanted to ask that question, too.

Mr. Howard

The answer is no.

Question put and agreed to.

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