HL Deb 11 November 1976 vol 377 cc814-5

[Nos. 11 to 13]

Clause 4, page 7, line 33, leave out ("(a) an amount calculated") and insert ("an amount determined")

Clause 4, page 7, line 34, leave out from ("the") to third ("the") in line 35 and insert ("length of the period between the end of the first-mentioned period and")

Clause 4, page 7, line 37, leave out from ("with") to end of line 46 and insert— ("(4) The amount of the penalty in sub-section (3) above is—

  1. (a) £20 where the period is a period of not more than one month;
  2. (b) £50 where the period is a period of more than one month but not more than three months;
  3. (c) £100 where the period is a period of more than three months but not more than six months;
  4. (d) £200 where the period is a period of more than six months but not more than twelve months; and
  5. (e) £450 where the period is a period of more than twelve months.")

Lord WINTERBOTTOM

My Lords, with the permission of the House, I should like to move Amendments 11 to 13 en bloc. The Amendment was introduced to meet the criticism of the heaviness, particularly for small companies, of the civil penalties in Clause 4; the Government have revised them. The amounts for which companies would be liable if they are only a few weeks or months late in filing accounts have been substantially reduced. The maximum penalty of £450 has been retained but this will apply to companies only when they have failed to deliver accounts to the Registrar more than 12 months after the end of the period allowed. If a company has failed to deliver accounts for a further 12 months after the period allowed, it is a very serious matter and one which rightly attracts a heavy penalty. As well as reducing the level of the penalties, fixed steps have been substituted for the daily calculation. This will make the penalties applicable in an individual case easier to calculate and simplify the administration of the penalties by reducing the scope for argument about the amount payable. I beg to move.

Moved, That this House doth agree with the Commons in the said Amendments.—(Lord Winterbottom.)

Lord LYELL

My Lords, we believe that these are an improvement on the scheme in the Bill as printed, and we very much concur with what the noble Lord, Lord Winterbottom, has said in respect to what we might call minor breaches, although I am sure that noble Lords will agree that a breach of the law is a breach of the law. Very often matters of this nature can arise in any small commercial undertaking, or there may be a question of gathering in information or delays in the postal services or other such matters. We believe that these are admirable proposals and are very welcome.