HC Deb 17 June 2002 vol 387 cc98-101

9A (1) The Agricultural Marketing (Northern Ireland) Order 1982 is amended as follows.

(2) For article 23 (action following report by Commission) there is substituted—

"23 Action following report by Competition Commission

(1) Paragraph (5) applies in any of the following cases.

(2) The first case is where section 132(2) of the Enterprise Act 2002 (duty to remedy adverse effects following market investigation reference) applies and whatever is to be remedied, mitigated or prevented relates to any provision of a scheme or any act or omission of a hoard administering a scheme.

(3) The second case is where section 141(2) of the Enterprise Act 2002 (duty to remedy adverse effects in public interest cases) applies and whatever is to be remedied, mitigated or prevented relates to any provision of a scheme or any act or omission of a board administering a scheme.

(4) The third case is where—

  1. (a) a report of the Competition Commission under section 11 of the Competition Act 1980 (c. 21) (references of public bodies etc.), as laid before Parliament, contains conclusions to the effect that—
    1. (i) certain matters indicated in the report operate against the public interest, and
    2. (ii) those matters consist of or include any provision of a scheme or any act or omission of a board administering a scheme, and
  1. (b) none of the conclusions is to be disregarded by virtue of section 11C(3) of that Act (requirement for two-thirds majority).

(5) The Department shall have the like power to make orders under Article 22 as if a report of a committee of investigation had contained the conclusion that the provision of the scheme in question, or the act or omission in question, is contrary to the interests of consumers of the regulated product.

(6) An order made by virtue of this Article in a case falling within paragraph (2) or (3) shall be treated, for the purposes of sections 156(1) and 160(3) of the Enterprise Act 2002 (duties to register and keep under review enforcement orders etc.), as if it were made under the relevant power in Part 4 of that Act to make an enforcement order (within the meaning of that Part)."

(3) In article 42 (action following report by Commission)—

(a) for paragraph (1) there is substituted—

"(1) Paragraph (1D) applies in any of the following cases.

(1A) The first case is where section 132(2) of the Enterprise Act 2002 (duty to remedy adverse effects following market investigation reference) applies and whatever is to be remedied, mitigated or prevented relates to any provision of a scheme or any act or omission of a board administering a scheme.

(1B) The second case is where section 141(2) of the Enterprise Act 2002 (duty to remedy adverse effects in public interest cases) applies and whatever is to be remedied, mitigated or prevented relates to any provision of a scheme or any act or omission of a board administering a scheme.

(1C) The third case is where—

  1. (a) a report of the Competition Commission under section 11 of the Competition Act 1980 (c. 21) (references of public bodies etc.), as laid before Parliament, contains conclusions to the effect that—
    1. (i) certain matters indicated in the report operate against the public interest, and
    2. (ii) those matters consist of or include any provision of a scheme or any act or omission of a board administering a scheme, and
  1. (b) none of the conclusions is to be disregarded by virtue of section 11C(3) of that Act (requirement for two-thirds majority).

(1D) The Department, if it thinks fit so to do—

  1. (a) may by order make such amendments in the scheme as it considers necessary or expedient for the purpose of rectifying the matter;
  2. (b) may by order revoke the scheme;
  3. (c) in the event of the matter being one which it is within the power of the board to rectify, may by order direct the board to take such steps to rectify the matter as may be specified in the order, and thereupon it shall be the duty of the hoard forthwith to comply with the order.";
  4. (b) in paragraph (2) for "paragraph (1)" there is substituted "paragraph (1D)";
  5. (c) in paragraph (3) for "paragraph (1)(b)(iii)" there substituted "paragraph (1D)(c)";
  6. (d) in paragraph (5)—
    1. (i) for "paragraph (1)(i) or (iii)" there is substituted "paragraph (1D)(a) or (c)";
    2. (ii) for "paragraph (1)(ii)" there is substituted "paragraph (1D)(b)";
  1. (e) after paragraph (5) there is inserted—

"(5A) Any order made under this Article in a case falling within paragraph (1A) or (1B) shall be treated, for the purposes of sections 156(1) and 160(3) of the Enterprise Act 2002 (duties to register and keep under review enforcement orders etc.), as if it were made under the relevant power in Part 4 of that Act to make an enforcement order (within the meaning of that Part)."'.

No. 389, in page 315, line 3, at end insert—

'(2A) In section 13 (licence modification references to Commission), subsections (9) and (9A) shall cease to have effect.

(2B) After section 13 there is inserted—

"13A References under section 13: time limits

(1) Every reference under section 13 above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.

(2) A report of the Commission on a reference under section 13 above shall not have effect (and no action shall be taken in relation to it under section 15 below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Director under subsection (3) below.

(3) The Director may, if he has received representations on the subject from the Commission and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.

(4) No more than one extension is possible under subsection (3) above in relation to the same reference.

(5) The Director shall, in the case of an extension made by him under subsection (3) above—

  1. (a) publish that extension in such manner as he considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it; and
  2. (b) in the case of a licence granted to a particular person, send to that person a copy of what has been published by him under paragraph (a) above.

13B References under section 13: powers of investigation

(1) The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (2) and (3) below, for the purposes of references under section 13 above as they apply for the purposes of references under that Part—

  1. (a) section 106 (attendance of witnesses and production of documents etc.);
  2. (b) section 107 (enforcement of powers under section 106: general);
  3. (c) section 108 (penalties);
  4. (d) section 109 (penalties: main procedural requirements);
  5. (e) section 110 (payments and interest by instalments);
  6. (f) section 111 (appeals in relation to penalties);
  7. (g) section 112 (recovery of penalties); and
  8. (h) section 113 (statement of policy).

(2) Section 107 shall, in its application by virtue of subsection (1) above, have effect as if—

  1. (a) subsection (2) were omitted; and
  2. (b) in subsection (9) the words from "or section" to "section 64(3))" were omitted.

(3) Section 108(5)(b)(ii) shall, in its application by virtue of subsection (1) above, have effect as if for the words from "the latest" to the end there were substituted "the day on which the report of the Commission on the reference concerned is published."

(2C) In section 14 (reports on licence modification references)—

  1. (a) after subsection (1) there is inserted—

"(1A) For the purposes of section 15 below, a conclusion contained in a report of the Commission is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted in connection with the reference concerned in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.

(1B) If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 13 above as the conclusions of the Commission, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing.";

  1. (b) for subsection (3) there is substituted—

"(3) For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the Commission on a reference under section 13 above.

(3A) In making any report on a reference under section 13 above the Commission must have regard to the following considerations before disclosing any information.

(3B) The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the Commission thinks is contrary to the public interest.

(3C) The second consideration is the need to exclude from disclosure (so far as practicable)—

  1. (a) commercial information whose disclosure the Commission thinks might significantly harm the legitimate business interests of the undertaking to which it relates, or
  2. (b) information relating to the private affairs of an individual whose disclosure the Commission thinks might significantly harm the individual's interests.

(3D) The third consideration is the extent to which the disclosure of the information mentioned in subsection (3C)(a) or (b) is necessary for the purposes of the report."'.

No. 390, in page 316, line 42, leave out from beginning to end of line 2 on page 317.

No. 391, in page 317, line 9, at end insert—