HC Deb 26 October 1989 vol 158 cc1155-6

'. In section 53 of the Building Societies Act 1986 (confidentiality of information obtained by the Building Societies Commission), in subsection (7)(b) (functions of Secretary of State for purposes of which disclosure may be made) after sub-paragraph (ii) insert—

", or (iii) Part II, III or VII of the Companies Act 1989;",'.—[Mr. Redwood.]

Brought up, and read the First time.

Mr. Deputy Speaker

With this it will be convenient to discuss Government new clause 47—Amendments of the Banking Act 1987—and Government amendments Nos. 81 and 82.

Mr. Redwood

I beg to move, That the clause be read a Second time.

These amendments are consequential on other provisions in parts II, III and VII of the Bill. They amend the Building Societies Act 1986, the Banking Act 1987 and clause 84 of the Bill, to provide gateways for the disclosure of restricted information for the purpose of enabling or assisting the Secretary of State's functions under parts II, III and VII of the Bill.

Mr. Cousins

Some dimensions of the new clause commend themselves to me, because I believe that it is important to have gateways through which information about activity in the building society world can be made available to the Government in pursuit of their necessary regulatory activities.

Those of us who have dealt with constituency and other problems arising from the demutualisation of Abbey National are very well aware of the need for much better information to be available to the public authorities to carry out their duties. The Minister has been perfectly fair but a little mysterious about how he proposes to use the powers that he is taking under the new clause. A little elucidation on that point would not come amiss in view of public disquiet about Abbey National and the way in which that affair was conducted.

Mr. Redwood

The idea is to provide gateways for information such as that passed to inspectors appointed under sections 94 or 177 of the Financial Services Act 1986, as well as inspectors appointed under part XIV of the Companies Act 1985. These are the normal types of investigations launched when there is reason to suspect fraud or malfeasance or other such problems.

Question put and agreed to.

Clause read a Second time, and added to the Bill.

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