HC Deb 28 June 1994 vol 245 cc711-3

Lords amendment: No. 37, in page 117, line 29, at end insert— ("Terms on which orders to be exercised .—(1) The owner of the interest against whom the compulsory rights order (in this paragraph referred to as "the owner") has been made shall be entitled to—

  1. (a) payment on the basis of either—
    1. (i) the open market value of the rights granted as would have been fair and reasonable if the agreement had been made between a willing grantor and a willing grantee, or
    2. (ii) the compensation for the losses caused to him assessed in accordance with sections 17 to 23 of this Act,
    whichever is the higher, and
  2. (b) secure such terms, guarantees and other security from the person entitled to occupy the land in respect of which the compulsory rights order is conferred (in this paragraph referred to as "the operator") as are necessary to protect the owner from any loss, damage, claims or other costs related to the exercise of the compulsory rights order.
(2) For the purposes of sub-paragraph (a)(i) of this paragraph, the assessment of the open market value shall take into account—
  1. (a) the basis on which the operator has entered into agreements with the owners of other interests to permit the working of the same coal deposit, and
  2. (b) the basis on which the owners of other interests have entered into agreements with the operator or other mining companies for the extraction of coal on comparable sites.
 (3) For the purposes of sub-paragraph (a)(i) of this paragraph, the fact that the operator is in or to be in, a special position by reason of his having secured the licence under Part II of this Act to the exclusion of others shall be ignored.")

Mr. Eggar

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

Mr. Deputy Speaker

With this we may consider the following: Government amendment (a) in lieu of the Lords amendment, in page 126, line 16, after 'section', insert—

  1. '(a) at the beginning there shall be inserted the words 'Subject to subsection (3A) of this section,"; and
  2. (b)".
Government amendment (b) in lieu of the Lords amendment, in page 126, line 17, at end insert— '(5) After that subsection there shall be inserted the following subsections— (3A) Where—
  1. (a) any compensation is payable for any year by virtue of this section in respect of any holding, and
  2. (b) the amount of that compensation falls to be calculated in accordance with section 18 of this Act by reference to the market value of rights which, if the compulsory rights order were not in force, could not be conferred for that year or any part of it except by or with the consent of one or more persons who are included in the persons directly concerned but do not fall within subsection (3) of this section,
the entitlement to that compensation shall be apportioned, according to the extent to which those rights could not be conferred for that year or part of a year without their participation or consent, between those persons and any person falling within that subsection. (3B) Subject to subsection (3C) of this section, the persons entitled under subsection (3A) of this section to a share of any compensation shall include persons whose participation in or consent to the conferring of any right would be required if the right were conferred at some time after the beginning of the year or part of a year in question; and any apportionment under subsection (3A) of this section shall take account of the length of the period for which any person is, during that year or part of a year, a person without whose participation or consent any right could not be conferred. (3C) No person shall be entitled under subsection (3A) of this section to any share of any compensation in respect of any such easement or right as might give rise to an entitlement to compensation under section 31 of this Act. (6) Subsection (4) of that section shall cease to have effect. (7) Sub-paragraphs (5) and (6) above shall not apply in relation to any compulsory rights order confirmed before the restructuring date.