§ Mr. Robert B. JonesI beg to move amendment No. 100, in page 63, line 3, leave out
'which has the effect of'.The purpose of the amendment is to ensure that the prohibition on the pay-when-paid system operates without disrupting the principal payment mechanisms used in the construction industry, of which the most important is certification.The concern that Sir Michael Latham was asked to address was where the payment chain was becoming so extended that small construction companies at the bottom of the chain were having to wait months for their money. They were doing so because of the pay-when-paid system, whereby payments made by a main contractor would await payment to it by its client, and the subcontractors would, in turn, not pay the next contractor in the chain until they had received payment—and so on down the contractual hierarchy. At each stage, payment had to arrive with the payer before he considered payment to the payee—possibly up to 30 days later.
That was the abuse that Sir Michael Latham addressed. Effectively, it was about each contractor in the chain holding on to cash for as long as possible to receive the benefit of interest payments or to put the money to use elsewhere before making payments for work done. The intention of clause 113 is to prevent contractors from pursuing this practice. That is what the industry agreed to under the Latham process—specifically, clients, main contractors and subcontractors—and that is what the Government are now seeking to deliver.
The amendment accepted by the Committee significantly changes the effect of the clause. It seeks to prevent any linkage between a subcontract and a main contract, which could have an impact on payment. That represents a considerable moving of the goalposts and significantly undermines the agreed industry position.
The process of construction of a major project depends on a series of interlocking contracts. Ascertaining what payment becomes due is not as simple as the system to which we are all accustomed whereby payment is exchanged for goods received. Construction is a process. Sums due may be established by a number of mechanisms. For example, an architect or engineer may establish what work has been properly executed by the main contractor and his subcontractors and issue a certificate on the main contract, which triggers payment. That certification process not only serves to show what is due to the main contractor but will be the basis of valuation of the work done, and therefore the sums due to the subcontractors as well. This is the system that is regularly used in standard construction contracts.
100 There are other ways of establishing the need for payment. Sir Michael Latham recommended the milestone system, whereby payment is triggered when a professional adviser to a client reports that the work done by a contractor and his subcontractors passes an agreed milestone or benchmark.
I draw out two points from those examples: first, that the certification or assessment procedure is central to the workings of many construction contracts and, secondly, that the work assessed under the main contract comprises not only that done by the main contractor and his work force, but that done by the subcontractors. The assessment process on the main contract values the package as a whole.
The wording of clause 113 would disable the certification system. That would have very serious implications for construction contracts. It would invalidate one of the regularly used forms of subcontract—the JCT nominated form—that subcontractors have strongly advocated. I also want to make it completely clear that it is outside the industry consensus. It is not in keeping with what Latham recommended, and I am not even aware that it has ever been discussed by the industry. That is why I have proposed amendment No. 100 to restore clause 113 to its original purpose.
§ Mr. RaynsfordThis subject was debated at length in Committee. Some progress has been made and the Government are proposing a move that, in a number of respects, is retrograde.
The clause as originally drafted dealt with contracts or terms that purported to make payment dependent on third-party action. That wording was clearly unsatisfactory and was amended in Committee. The clause now refers to provisions that have the "effect of making payment" dependent on a third party.
That clearly is the purpose of the move to outlaw pay-when-paid clauses, which have been a huge problem to subcontractors and which have led to unacceptable practices. The move to get rid of pay-when-paid clauses was very much part of the Latham committee's recommendations.
I hear what the Minister says about certification. He will know that, in Committee, with that point precisely in mind, we moved an amendment to ensure that nothing would cut across the normal procedures for certification. The Minister assured us that that was not necessary, so the amendment was not incorporated in the Bill. Now he says that the provision in the Bill will be hugely damaging and will cut across certification procedures.
I am not convinced, but if the Minister is right he has a simple remedy to hand: to advise his colleagues in another place to accept the amendment that we tabled in Committee. That would make it clear that the outlawing of pay-when-paid provisions should not cut across certification procedures. The Minister, meanwhile, proposes severely to damage the effectiveness of the legislation when it comes to outlawing pay-when-paid provisions. That will be regarded with horror by most of the subcontractors, who will see the door being left open, once again, to unscrupulous contractors so to manipulate arrangements as to deny payments—on the tenuous basis of pay-when-paid clauses.
101 This is a very serious clause. I hope that the Minister will think again. If he does not, I trust that hon. Members will vote against the Government amendment.
§ 8 pm
§ Mr. ThurnhamI am disappointed with the Government amendment. I felt that the Committee was right to change the original shape of the clause, which included the words "purporting to make payment". That was changed to
which has the effect of making payment".Now, the Government want to remove the wordswhich has the effect of".There seems to be a great deal of heat over five words, but they go to the heart of the Bill. We are discussing where the balance of risk should lie; whether with the small subcontractors, who have to pay for wages and materials irrespective of whether they receive payment from contractors above them in the chain, or whether with the larger contractors.I am sorry that the Government seem to have moved in favour of the larger contractors. The smaller ones are the weaker partners to the contract, so if the balance is to be tipped one way or the other, it should be towards the smaller subcontractors. The Minister has had the right balance in mind throughout the Bill's proceedings; that is what has made it such an excellent Bill. I am sorry that he has been unable to maintain the balance at this point.
The constructors' liaison group has put out a parliamentary briefing headed "Just Five Words", because it feels so strongly about the issue. The Minister says that the Committee amendment undermines the agreed industry position, but I find that difficult to follow. Sir Michael Latham's report, "Constructing the Team", states in recommendation 8.10:
Clauses with the effect of introducing pay-when-paid conditions should be specifically declared unfair and invalid".That is exactly the point. It is why I feel so strongly that the words "the effect of should be retained.Since the publication of "Constructing the Team", the Government have continually stressed the necessity of prohibiting the pernicious pay-when-paid tactics adopted by many main contractors. The whole process of reforming payment procedures depends on a satisfactory resolution of such tactics.
Ministers have consistently supported the line that pay-when-paid tactics must be ended. That was restated by the Minister in the Committee debates. It is therefore strange to find that the Government amendment would weaken the pay-when-paid prohibition. In the DTI publication, "Your Business Matters", the Government's policy on the banning of pay-when-paid clauses in construction contracts is once again restated, and it is clearly a cornerstone of Government policy. Such clauses transfer the risk of funding requirements for construction operations to the lowest level of construction contracts—the subcontractors. They are exposed to the greatest financial risk, through late or non-payment or insolvency. Incidentally, the insolvency waiver has already been agreed. They also make the greatest contribution to the funding capital required by a project.
The effect is that smaller companies prop up the larger companies higher up the contractual chain. Clients are required to pay the costs of such bottom-up funding 102 through increased tender prices. It is by amending these processes that the savings sought in "Constructing the Team" will be achieved.
The amendment seeks to delete the five words
which have the effect of',but that leaves the redrafted clause restrictive and limited to payment provisions only. It also makes it a simple matter for a determined main contractor to bypass the provisions. The Government amendment weakens the Bill and allows back-door tactics to defeat the objective of the clause; it also allows pay-when-paid provisions to be introduced through procedural links to head contracts.The Government amendment amounts to the pay-when-paid system under another guise. It would allow the creation of a payment dependence at one level on an event or procedure occurring at another level in the contractual chain. As such, it interferes with privity of contract and creates an unnecessary linkage, to the disadvantage of those lower in the contractual chain.
Each construction contract needs to have a stand-alone payment procedure which is in no way linked with or dependent on activities occurring, or not occurring, in contracts above them. Any form of linkage to events in other contracts is a back-door pay-when-paid system. What has been allowed in the case of insolvency goes far enough, I believe, in terms of transferring risk.
What are the Government's views on how the clause as drafted affects certification? The purpose of a certificate at main contract level is to indicate the amount due under that contract. When payment is due is a matter for the adequate mechanism, and these issues should not become linked or confused. Clause 113 does not inhibit or contradict the process of third-party certification in main or nominated contracts.
Payment certificates issued under the industry standard contract are not linked to domestic subcontract payment conditions regarding the amount or timing of payments, and payment procedures are unlinked between contracts. The certification process in relation to payments is concerned with establishing the amount that is due. It operates on main contracts and only a small number of subcontracts. Establishing when payments are due has to be satisfied through the adequate mechanism. Nothing in the current draft of clause 113 affects the ability of the certifying process to work under existing contracts.
It is not acceptable to dilute such a key provision. Certification relates to one commercial transaction, and the procedure should not apply down the contractual chain. At subcontract level, a totally different commercial transaction exists. The standard form of contract used by the industry confirms that normal practice is not to have any such linkages between contracts; and payment procedures at different contracting levels operate on totally separate payment cycles.
The existing payment procedures at domestic subcontract level preserve the privity of contract arrangements, and clause 113 reinforces that. The Government amendment would interfere with the process and would offer the potential to interfere with established practice. The Government should therefore withdraw the amendment. If they persist with it and it is agreed to, I hope that the measure will be given a thorough examination in the other place.
§ Mr. Robert B. JonesThere is no question but that we want pay-when-paid clauses banned, and we have already 103 tilted the balance in favour of smaller companies—that is precisely where the shoe pinches, as my hon. Friend says. It was no part of Sir Michael Latham's proposals, or of the Government's, to outlaw certification. That would be absurd.
§ Mr. JonesI know that my hon. Friend the Member for Teignbridge (Mr. Nicholls) has been particularly concerned about how the scheme payment procedures might work out in practice. They are what would be required to operate if a contractual payment mechanism was inadequate. Details are a matter for consultation once the Bill has received Royal Assent, but my hon. Friend has my complete assurance that we will not allow scheme procedures to be vulnerable to the sort of abuse that he has described.
§ Mr. NichollsIf the certification procedure were used as a way of avoiding what the Government intend, would the adjudicator be able to disapply the clause?
§ Mr. JonesThe adjudicator would have to judge whether there was any relevant link between the two. If the certification procedure allowed money not to be paid because work had not been done, and the main contractor then blamed the subcontractor, the latter would be able to go to the adjudicator if he did not think that that was fair.
§ Question put, That the amendment be made:—
§ The House divided: Ayes 274, Noes 246.
107| Division No. 176] | [8.09 pm |
| AYES | |
| Ainsworth, Peter (East Surrey) | Brown, M (Brigg & Cl'thorpes) |
| Aitken, Rt Hon Jonathan | Browning, Mrs Angela |
| Alexander, Richard | Bruce, Ian (South Dorset) |
| Alison, Rt Hon Michael (Selby) | Budgen, Nicholas |
| Allason, Rupert (Torbay) | Burns, Simon |
| Amess, David | Burt, Alistair |
| Arnold, Jacques (Gravesham) | Butler, Peter |
| Atkins, Rt Hon Robert | Butterfill, John |
| Atkinson, Peter (Hexham) | Carlisle, John (Luton North) |
| Baker, Rt Hon Kenneth (Mole V) | Carlisle, Sir Kenneth (Lincoln) |
| Baker, Nicholas (North Dorset) | Carrington, Matthew |
| Baldry, Tony | Carttiss, Michael |
| Banks, Matthew (Southport) | Cash, William |
| Banks, Robert (Harrogate) | Channon, Rt Hon Paul |
| Bates, Michael | Chapman, Sir Sydney |
| Batiste, Spencer | Churchill, Mr |
| Bellingham, Henry | Clappison, James |
| Bendall, Vivian | Clark, Dr Michael (Rochford) |
| Beresford, Sir Paul | Clifton-Brown, Geoffrey |
| Biffen, Rt Hon John | Coe, Sebastian |
| Body, Sir Richard | Colvin, Michael |
| Bonsor, Sir Nicholas | Congdon, David |
| Booth, Hartley | Conway, Derek |
| Boswell, Tim | Coombs, Anthony (Wyre For'st) |
| Bottomley, Peter (Eltham) | Coombs, Simon (Swindon) |
| Bottomley, Rt Hon Virginia | Cope, Rt Hon Sir John |
| Bowden, Sir Andrew | Cormack, Sir Patrick |
| Bowis, John | Couchman, James |
| Boyson, Rt Hon Sir Rhodes | Cran, James |
| Brandreth, Gyles | Currie, Mrs Edwina (S D'by'ire) |
| Brazier, Julian | Curry, David (Skipton & Ripon) |
| Bright, Sir Graham | Davies, Quentin (Stamford) |
| Brooke, Rt Hon Peter | Day, Stephen |
| Deva, Nirj Joseph | Knight, Dame Jill (Bir'm E'st'n) |
| Devlin, Tim | Kynoch, George (Kincardine) |
| Dorrell, Rt Hon Stephen | Laft, Mrs Jacqui |
| Douglas-Hamilton, Lord James | Lang, Rt Hon Ian |
| Dover, Den | Lawrence, Sir Ivan |
| Duncan, Alan | Legg, Barry |
| Duncan Smith, Iain | Leigh, Edward |
| Dunn, Bob | Lennox-Boyd, Sir Mark |
| Dykes, Hugh | Lester, Sir James (Broxtowe) |
| Eggar, Rt Hon Tim | Lidington, David |
| Elletson, Harold | Lilley, Rt Hon Peter |
| Evans, David (Welwyn Hatfield) | Lloyd, Rt Hon Sir Peter (Fareham) |
| Evans, Jonathan (Brecon) | Lord, Michael |
| Evans, Nigel (Ribble Valley) | Luff, Peter |
| Evans, Roger (Monmouth) | Lyell, Rt Hon Sir Nicholas |
| Evennett, David | MacGregor, Rt Hon John |
| Faber, David | MacKay, Andrew |
| Fabricant, Michael | Maclean, Rt Hon David |
| Fenner, Dame Peggy | McNair-Wilson, Sir Patrick |
| Field, Barry (Isle of Wight) | Madel, Sir David |
| Fishburn, Dudley | Maitland, Lady Olga |
| Forth, Eric | Malone, Gerald |
| Fowler, Rt Hon Sir Norman | Mans, Keith |
| Fox, Dr Liam (Woodspring) | Marland, Paul |
| Freeman, Rt Hon Roger | Marlow, Tony |
| French, Douglas | Marshall, John (Hendon S) |
| Gale, Roger | Martin, David (Portsmouth S) |
| Gallie, Phil | Mates, Michael |
| Gardiner, Sir George | Mawhinney, Rt Hon Dr Brian |
| Garnier, Edward | Merchant, Piers |
| Gill, Christopher | Mills, Iain |
| Gillan, Cheryl | Mitchell, Andrew (Gedling) |
| Goodlad, Rt Hon Alastair | Mitchell, Sir David (NW Hants) |
| Goodson-Wickes, Dr Charles | Moate, Sir Roger |
| Gorman, Mrs Teresa | Molyneaux, Rt Hon Sir James |
| Gorst, Sir John | Monro, Rt Hon Sir Hector |
| Grant, Sir A (SW Cambs) | Montgomery, Sir Fergus |
| Greenway, Harry (Ealing N) | Moss, Malcolm |
| Greenway, John (Ryedale) | Needham, Rt Hon Richard |
| Griffiths, Peter (Portsmouth, N) | Neubert, Sir Michael |
| Gummer, Rt Hon John Selwyn | Newton, Rt Hon Tony |
| Hamilton, Rt Hon Sir Archibald | Nicholls, Patrick |
| Hamilton, Neil (Tatton) | Nicholson, David (Taunton) |
| Hampson, Dr Keith | Norris, Steve |
| Hannam, Sir John | Oppenheim, Phillip |
| Hargreaves, Andrew | Ottaway, Richard |
| Haselhurst, Sir Alan | Page, Richard |
| Hawkins, Nick | Paice, James |
| Hawksley, Warren | Patnick, Sir Irvine |
| Hayes, Jerry | Pattie, Rt Hon Sir Geoffrey |
| Heald, Oliver | Pawsey, James |
| Heathcoat-Amory, Rt Hon David | Peacock, Mrs Elizabeth |
| Hendry, Charles | Pickles, Eric |
| Heseltine, Rt Hon Michael | Porter, Barry (Wirral S) |
| Higgins, Rt Hon Sir Terence | Porter, David (Waveney) |
| Hill, Sir James (Southampton Test) | Portillo, Rt Hon Michael |
| Hogg, Rt Hon Douglas (G'tham) | Powell, William (Corby) |
| Horam, John | Rathbone, Tim |
| Howard, Rt Hon Michael | Renton, Rt Hon Tim |
| Howell, Sir Ralph (N Norfolk) | Richards, Rod |
| Hughes, Robert G (Harrow W) | Riddick, Graham |
| Hunt, Rt Hon David (Wirral W) | Rifkind, Rt Hon Malcolm |
| Hunt, Sir John (Ravensbourne) | Robathan, Andrew |
| Hunter, Andrew | Roberts, Rt Hon Sir Wyn |
| Jack, Michael | Robertson, Raymond (Ab'd'n S) |
| Jackson, Robert (Wantage) | Robinson, Mark (Somerton) |
| Jenkin, Bernard | Roe, Mrs Marion (Broxbourne) |
| Jessel, Toby | Rowe, Andrew (Mid Kent) |
| Jones, Gwilym (Cardiff N) | Rumbold, Rt Hon Dame Angela |
| Jones, Robert B (W Hertfdshr) | Scott, Rt Hon Sir Nicholas |
| Kellett-Bowman, Dame Elaine | Shaw, David (Dover) |
| Key, Robert | Shaw, Sir Giles (Pudsey) |
| King, Fit Hon Tom | Shephard, Rt Hon Gillian |
| Kirkhope, Timothy | Shepherd, Sir Colin (Hereford) |
| Knight, Mrs Angela (Erewash) | Shepherd, Richard (Aldridge) |
| Knight, Rt Hon Greg (Derby N) | Shersby, Sir Michael |
| Sims, Sir Roger | Tredinnick, David |
| Skeet, Sir Trevor | Trend, Michael |
| Smith, Tim (Beaconsfield) | Trotter, Neville |
| Speed, Sir Keith | Twinn, Dr Ian |
| Spencer, Sir Derek | Vaughan, Sir Gerard |
| Spicer, Sir Michael (S Worcs) | Viggers, Peter |
| Spink, Dr Robert | Waldegrave, Rt Hon William |
| Spring, Richard | Walden, George |
| Sproat, Iain | Walker, Bill (N Tayside) |
| Squire, Robin (Hornchurch) | Waller, Gary |
| Stanley, Rt Hon Sir John | Ward, John |
| Steen, Anthony | Wardle, Charles (Bexhill) |
| Stephen, Michael | Waterson, Nigel |
| Stern, Michael | Watts, John |
| Stewart, Allan | Wells, Bowen |
| Streeter, Gary | Whitney, Ray |
| Sumberg, David | Whittingdale, John |
| Sweeney, Walter | Widdecombe, Ann |
| Sykes, John | Wiggin, Sir Jerry |
| Tapsell, Sir Peter | Wilkinson, John |
| Taylor, Ian (Esher) | Willetts, David |
| Taylor, John M (Solihull) | Wilshire, David |
| Taylor, Sir Teddy (Southend, E) | Winterton, Mrs Ann (Congleton) |
| Temple-Morris, Peter | Wolfson, Mark |
| Thomason, Roy | Wood, Timothy |
| Thompson, Patrick (Norwich N) | Young, Rt Hon Sir George |
| Thornton, Sir Malcolm | |
| Townend, John (Bridlington) | Tellers for the Ayes: |
| Townsend, Cyril D (Bexl'yh'th) | Mr. Roger Knapman and |
| Tracey, Richard | Mr. Patrick McLoughlin. |
| NOES | |
| Abbott, Ms Diane | Clelland, David |
| Adams, Mrs Irene | Clwyd, Mrs Ann |
| Ainger, Nick | Coffey, Ann |
| Ainsworth, Robert (Cov'try NE) | Cohen, Harry |
| Allen, Graham | Connarty, Michael |
| Anderson, Donald (Swansea E) | Cook, Robin (Livingston) |
| Anderson, Ms Janet (Ros'dale) | Corston, Jean |
| Ashton, Joe | Cousins, Jim |
| Austin-Walker, John | Cummings, John |
| Banks, Tony (Newham NW) | Cunliffe, Lawrence |
| Barron, Kevin | Cunningham, Jim (Covy SE) |
| Battle, John | Dalyell, Tam |
| Bayley, Hugh | Darling, Alistair |
| Beckett, Rt Hon Margaret | Davidson, Ian |
| Beith, Rt Hon A J | Davies, Chris (L'Boro & S'worth) |
| Bell, Stuart | Davis, Terry (B'ham, H'dge H'I) |
| Bennett, Andrew F | Denham, John |
| Benton, Joe | Dewar, Donald |
| Bermingham, Gerald | Dixon, Don |
| Berry, Roger | Dobson, Frank |
| Betts, Clive | Donohoe, Brian H |
| Blunkett, David | Dowd, Jim |
| Boateng, Paul | Dunwoody, Mrs Gwyneth |
| Bradley, Keith | Eagle, Ms Angela |
| Bray, Dr Jeremy | Eastham, Ken |
| Brown, Gordon (Dunfermline E) | Etherington, Bill |
| Brown, N (N'c'tle upon Tyne E) | Evans, John (St Helens N) |
| Bruce, Malcolm (Gordon) | Fatchett, Derek |
| Byers, Stephen | Faulds, Andrew |
| Caborn, Richard | Fisher, Mark |
| Callaghan, Jim | Flynn, Paul |
| Campbell, Mrs Anne (C'bridge) | Foster, Rt Hon Derek |
| Campbell, Menzies (Fife NE) | Foster, Don (Bath) |
| Campbell, Ronnie (Blyth V) | Foulkes, George |
| Campbell-Savours, D N | Fraser, John |
| Canavan, Dennis | Fyfe, Maria |
| Cann, Jamie | Galloway, George |
| Chidgey, David | Gapes, Mike |
| Chisholm, Malcolm | Garrett, John |
| Church, Judith | Gerrard, Neil |
| Clapham, Michael | Gilbert, Rt Hon Dr John |
| Clark, Dr David (South Shields) | Godman, Dr Norman A |
| Clarke, Eric (Midlothian) | Godsiff, Roger |
| Clarke, Tom (Monklands W) | Golding, Mrs Llin |
| Gordon, Mildred | Miller, Andrew |
| Graham, Thomas | Mitchell, Austin (Gt Grimsby) |
| Griffiths, Win (Bridgend) | Moonie, Dr Lewis |
| Grocott, Bruce | Morgan, Rhodri |
| Gunnell, John | Morley, Elliot |
| Hall, Mike | Morris, Rt Hon Alfred (Wy'nshawe) |
| Hanson, David | Morris, Estelle (B'ham Yardley) |
| Harman, Ms Harriet | Morris, Rt Hon John (Aberavon) |
| Hattersley, Rt Hon Roy | Mowlam, Marjorie |
| Heppell, John | Mudie, George |
| Hill, Keith (Streatham) | Mullin, Chris |
| Hinchliffe, David | Murphy, Paul |
| Hodge, Margaret | Nicholson, Emma (Devon West) |
| Hoey, Kate | Oakes, Rt Hon Gordon |
| Hogg, Norman (Cumbernauld) | O'Brien, William (Normanton) |
| Home Robertson, John | O'Hara, Edward |
| Hood, Jimmy | Olner, Bill |
| Hoon, Geoffrey | O'Neill, Martin |
| Howarth, Alan (Strat'rd-on-A) | Orme, Rt Hon Stanley |
| Howarth, George (Knowsley North) | Parry, Robert |
| Howells, Dr Kim (Pontypridd) | Pearson, Ian |
| Hoyle, Doug | Pendry, Tom |
| Hughes, Kevin (Doncaster N) | Pickthall, Colin |
| Hughes, Robert (Aberdeen N) | Pike, Peter L |
| Hughes, Roy (Newport E) | Pope, Greg |
| Hughes, Simon (Southward) | Powell, Sir Ray (Ogmore) |
| Hutton, John | Prentice, Bridget (Lew'm E) |
| Illsley, Eric | Prentice, Gordon (Pendle) |
| Ingram, Adam | Prescott, Rt Hon John |
| Jackson, Glenda (H'stead) | Primarolo, Dawn |
| Jackson, Helen (Shef'ld, H) | Purchase, Ken |
| Jamieson, David | Quin, Ms Joyce |
| Janner, Greville | Randall, Stuart |
| Jenkins, Brian (SE Staff) | Raynsford, Nick |
| Jones, Ieuan Wyn (Ynys Môn) | Reid, Dr John |
| Jones, Lynne (B'ham S O) | Rendel, David |
| Jones, Martyn (Clwyd, SW) | Robertson, George (Hamilton) |
| Jones, Nigel (Cheltenham) | Robinson, Geoffrey (Co'try NW) |
| Jowell, Tessa | Roche, Mrs Barbara |
| Kaufman, Rt Hon Gerald | Rogers, Allan |
| Keen, Alan | Rooker, Jeff |
| Kennedy, Charles (Ross,C&S) | Ross, Ernie (Dundee W) |
| Kennedy, Jane (L'pool Br'dg'n) | Rowlands, Ted |
| Khabra, Piara S | Sedgemore, Brian |
| Kilfoyle, Peter | Sheldon, Rt Hon Robert |
| Kirkwood, Archy | Shore, Rt Hon Peter |
| Lewis, Terry | Short, Clare |
| Liddell, Mrs Helen | Skinner, Dennis |
| Litherland, Robert | Smith, Andrew (Oxford E) |
| Livingstone, Ken | Smith, Chris (Isl'ton S & F'sbury) |
| Llwyd, Elfyn | Smith, Llew (Blaenau Gwent) |
| Loyden, Eddie | Soley, Clive |
| Lynne, Ms Liz | Spearing, Nigel |
| McAllion, John | Spellar, John |
| McAvoy, Thomas | Squire, Rachel (Dunfermline W) |
| McCartney, Ian | Steinberg, Gerry |
| Macdonald, Calum | Stevenson, George |
| McKelvey, William | Stott, Roger |
| Mackinlay, Andrew | Strang, Dr. Gavin |
| McLeish, Henry | Sutcliffe, Gerry |
| McMaster, Gordon | Taylor, Mrs Ann (Dewsbury) |
| McNamara, Kevin | Taylor, Matthew (Truro) |
| MacShane, Denis | Thurnham, Peter |
| McWilliam, John | Timms, Stephen |
| Madden, Max | Tipping, Paddy |
| Maddock, Diana | Touhig, Don |
| Mahon, Alice | Trickett, Jon |
| Mandelson, Peter | Turner, Dennis |
| Marek, Dr John | Vaz, Keith |
| Marshall, David (Shettleston) | Walker, Rt Hon Sir Harold |
| Martin, Michael J (Springburn) | Walley, Joan |
| Meacher, Michael | Wareing, Robert N |
| Meale, Alan | Watson, Mike |
| Michael, Alun | Wicks, Malcolm |
| Michie, Bill (Sheffield Heeley) | Wigley, Dafydd |
| Milburn, Alan | Williams, Rt Hon Alan (Sw'n W) |
| Williams, Alan W (Carmarthen) | Young, David (Bolton SE) |
| Winnick, David | |
| Wise, Audrey | Tellers for the Noes: |
| Wray, Jimmy | Mr. Peter Hain and |
| Wright, Dr Tony | Mr. Jon Owen Jones. |
§ Question accordingly agreed to.