HL Deb 24 October 1940 vol 117 cc572-4

Order of the Day for the Second Reading read.

THE LORD CHANCELLOR (VISCOUNT SIMON)

My Lords, this is a small Bill introduced to remove a doubt which has arisen about Regulation 6 of the Defence (Finance) Regulations, 1939, which were made on September 3 of that year. It was a Regulation requiring Treasury consent to the issue of securities in the United Kingdom. Ordinary mortgages were not mentioned, and it was not originally intended to cover ordinary mortgages at all. Later it was decided to bring mortgages under control and the Regulations were amended in November, 1939, for that purpose. It was provided that as from the 23rd day of November, 1939, references to securities should be treated as including mortgages. Certain ingenious people have, however, doubted whether mortgages have not all along been covered by the earlier Regulations, and as it is highly desirable to remove all doubt on the subject, as otherwise parties to mortgages between these two dates will not be certain where they stand, this Bill is introduced. It is not possible by Defence Regulation to clear the matter up because Defence Rgulations do not have retrospective effect. Consequently this Bill is needed, and it is so drawn as to make it quite clear that ordinary mortgages are not covered by that Regulation if they were entered into before November 23 last year.

Subsection (2) of Clause 1 of the Bill, the only operative clause, clears up another point which has been regarded as in doubt and declares that No security issued before the twenty-third day of November, nineteen hundred and thirty-nine, shall be invalid by reason that the consent of the Treasury was not given to it. Up to that date the restriction imposed by the Regulation is enforced by the liability to a penalty. As from November 23, this position is already established and made clear by the language of the Regulations. In brief, therefore, the Regulation was amended in the respects I have mentioned from November 23 onwards, but it is necessary to legislate to secure that the proper application of the original Regulation before that date should be clear and beyond dispute. I beg to move that the Bill be read a second time.

Moved, That the Bill be now read 2ª—(The Lord Chancellor.)

On Question, Bill read 2ª: Committee negatived.

Then, Standing Order No. XXXIX having been suspended, Bill read 3ª, and passed, and sent to the Commons.