HL Deb 22 July 1975 vol 363 cc158-61

3.3 p.m.

The LORD CHANCELLOR (LORD ELWYN-JONES)

My Lords, I beg to move that the House do now resolve itself into Committee on Recommitment on this Bill.

Moved, that the House do now resolve itself into Committee on Recommitment.—(The Lord Chancellor.)

On Question, Motion agreed to.

House in Committee accordingly.

[The Earl of LISTOWEL in the Chair.]

The CHAIRMAN of COMMITTEES (THE EARL OF LISTOWEL)

This Bill has been amended by the Joint Committee on Consolidation Bills. There are further Amendments to be considered in Committee on recommitment this afternoon and I will therefore go through the Bill in the usual way.

Clause 1 agreed to.

Clause 2 [General duty of the Corporation]:

The LORD CHANCELLOR moved Amendment No. 1: Page 2, line 35, leave out ("in pursuance of section 4(4) of this Act") and insert ("from time to time with the approval of the Secretary of State").

The noble and learned Lord said: Where the British Steel Corporation carry out any measure of reorganisation or work of development which involves a substantial outlay of capital, they are required to act in acordance with a general programme settled from time to time with the aproval of the Secretary of State. This duty, imposed by Section 4(2) of the Iron and Steel Act 1949 as revived by Section 7(1) of the Iron and Steel Act 1967, is reproduced in Clause 4(4) of the Bill. Section 4(3) of the 1949 Act as so revived further requires the Corporation to act, in accordance with a general programme settled as aforesaid

in discharging duties under Section 3(1)(d) of the 1967 Act with respect to the promotion of research and the doing of work to enable the results of research to be turned to account.

It is this latter provision, re-enacted in Clause 2(1)(d), which is now proposed to be amended. Under the existing statutory requirements the Corporation may carry out research work in accordance with a general programme approved by the Secretary of State which is not part of the general programme of reorganisation or development involving substantial capital expenditure so approved and the Amendment is required in order to make that clear, as I hope it does. I beg to move.

On Question, Amendment agreed to.

Clause 2, as amended, agreed to.

Clauses 3 to 15 agreed to.

Clause 16 [Borrowing powers of the Corporation and publicly-owned companies]:

The LORD CHANCELLOR moved Amendment No. 2: Page 14, line 18, leave out from the first ("the") to ("any") in line 19 and insert ("repayment of").

The noble and learned Lord said: This is a paving Amendment for Amendment No. 3. The opportunity is taken to improve the wording of Clause 16(2)(e) to substitute the words "the repayment of any money" for the words "the payment of any money" which now appear in Section 19(2)(e) of the Iron and Steel Act 1967. I beg to move.

On Question, Amendment agreed to.

Clause 16, as amended, agreed to.

Clause 17 agreed to.

Clause 18 [Commencing capital debt of the Corporation]:

On Question, Whether Clause 18 shall stand part of the Bill?

The LORD CHANCELLOR

Under Section 18(1) of the Iron and Steel Act 1967 as amended by Section 1 of the 1969 Act, the Corporation are treated as having assumed on 28th July 1967, which was the vesting date under the 1967 Act, a debt of £133,988,359.20 due to the Secretary of State. Since the Bill was introduced it has been drawn to the attention of the draftsman that this commencing capital debt was repaid in full by the Corporation on 29th July 1974. The provisions of Clause 18 concerning this debt, the rate of interest payable, the arrangements for repayment and other terms of the debt, and the disposal of sums received by way of interest or repayment of the debt, are therefore no longer required, and Clause 18 is now unnecessary.

On Question, Clause 18 disagreed to.

Clause 19 agreed to.

Clause 20 [Limit on borrowing by, and investment in, the Corporation]:

The LORD CHANCELLOR moved Amendment No. 3: Page 17, line 18, leave out ("the debt referred to in section 18(1) of this Act") and insert ("their commencing capital debt, being the debt of £133,988,359.20 which the Corporation were treated as having assumed on 28th July 1967")

The noble and learned Lord said: This Amendment is consequential on the omission of Clause 18, relating to the Corporation's commencing capital debt. Although that debt has now been paid off, it is necessary to retain in paragraph (a) of Clause 20 a reference to the moneys borrowed for the repayment of that debt, as under the enactments which this clause reproduces, these moneys are excluded from the limit on the total of the moneys which may be borrowed by, or invested in the Corporation. I beg to move.

On Question, Amendment agreed to.

Clause 20, as amended, agreed to.

Clause 21 [Accounts of the Secretary of State]:

The LORD CHANCELLOR

I beg to move Amendment No. 4, which is purely consequential upon leaving out Clause 18.

Amendment moved— Page 17, line 31, leave out ("18(2)").—(The Lord Chancellor.)

On Question, Amendment agreed to.

Clause 21, as amended, agreed to.

Remaining clauses and Schedules agreed to.

House resumed: Bill reported with the Amendments.

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