HL Deb 23 October 1968 vol 296 cc1526-9

[No. 90]

After Clause 129, insert the following new clause:

Duty to act in certain cases as body engaged in commercial enterprise

".—(1) This section applies to the following authorities, namely, the Boards, the new authorities, and the Executive for any designated area within the meaning of section 9(1) of this Act.

(2) Every authority to whom this section applies who engage, either directly or through a subsidiary, in any activities authorise by any of the provisions specified in subsection (3) of this section shall in carrying on those activities act as if they were a company engaged in a commercial enterprise or, as the case may be, shall exercise their control over that subsidiary so as to ensure that the subsidiary in carrying on those activities acts as a company so engaged.

(3) The provisions referred to in subsection (2) of this section are—

  1. (a) the following provisions of the Act of 1962, namely, section 6 (which relates to the provision of hotels) and subsections (2) to (4) of section 11 (which relate to certain development or acquisition of land);
  2. (b) the following provisions of this Act, namely, sections 2(1)(g)(ii) and (m), 10(1)(viii), (xx)(b) and (xxii), 25(e) and (f), 26(1)(e)(ii), (f) and (k), 49(1) to (4), 50(1) (so far as it relates to the provision of facilities at additional premises), and 50(3), (4) and (5)."

The Commons agreed to this Amendment but proposed the following Amendments thereto:

[Nos. 91–95]

The Commons have made the following consequential Amendment to the Bill:—

Page 262, line 7, after "Sections", insert "Duty to act in certain cases as body engaged in commercial enterprise)".

4.42 p.m.

LORD HUGHES

My Lords, I beg to move that this House doth agree with the Commons in their Amendments Nos. 91 to 94, to the Lords Amendment No. 90, and to the Commons consequential Amendment No. 95. I think it would be convenient if these were taken together. Noble Lords will recall that on the Report stage I introduced a new clause which provided that in certain circumstances the nationalised transport authorities and Passenger Transport Executives must act as if engaged in a commercial enterprise. The new clause was welcomed by noble Lords opposite and accepted by the House. The new clause was also welcomed in another place, but the Government felt it necessary to move the four Amendments to it which stand on the Marshalled List.

The effect of the Amendments made by the Commons to the new clause was; to apply the obligation to act "commercially" to the power of P.T.E.S to repair vehicles and supply fuel and vehicle accessories at car parks which they may provide; to apply the duty to subsection (2) of Clause 48, which, as amended at Commons Consideration stage, includes the similar power of the Boards and new authorities, and the Waterways Board's power to sell goods at places where those using their waterways may want to buy them; to apply the duty to the Railways Board's power to operate hotels, contained in Clause 50(2) (which was deleted from the Bill in Lords Committee). A consequential Amendment is the deletion from the new clause of the reference to Section 6 of the 1962 Act, which is repealed by the reinstated Clause 50(2).

The effect of the consequential Amendment No. 95 would be to include the new clause among the provisions listed in Part I of Schedule 17 of the Bill which are to extend to Northern Ireland. This is clearly desirable because some of the powers on which the new clause bites could be exercised in Northern Ireland (for instance, the travel agency powers of the Scottish Group and Bus Company, or the powers of the Boards and new authorities to acquire and develop land other than for the purposes of their business) and the "commercial obligation" must apply to the exercise of the powers in Northern Ireland no less than to their exercise in Great Britain. Noble Lords will, I hope, appreciate that the broad effect of these Government Amendments is to apply the formal obligation to act commercially more widely. They thus re-emphasise the Government's declared intention that new ancillary activities of the Boards, the new authorities and P.T.E.S, when carried out in direct competition with the private sector, shall be conducted fairly and in a businesslike manner.

Moved, That this House doth agree with the Commons in their Amendments Nos. 91 to 94 to the Lords Amendment No. 90; and in their consequential Amendment No. 95.—(Lords Hughes.)

LORD NUGENT OF GUILDFORD

My Lords, may I say just a final word of welcome to this clause? It is a substantial concession by the Government and it goes a long way to making Clause 48 less unacceptable. The four Amendments which have been approved in another place do, as the noble Lord, Lord Hughes, has told us, extend more widely the qualification to act commercially and to that extent they also are acceptable. Again, I should like to thank the noble Lord and his colleagues for the constructive and helpful work that they have done on this particular point, and to say that we shall not disagree with the Commons in their Amendments.

On Question, Motion agreed to.