§ 37 Clause 7, page 10, line 32, leave out from "relate" to "the" in line 34.
§ The Commons disagreed to this Amendment for the following Reason:
§ 38 Because it prevents the Secretary of State from ensuring that effective corporate planning is achieved.
§ Lord MELCHETTMy Lords, I beg to move that this House doth not insist on their Amendment No. 37, to which the Commons have disagreed for the Reason numbered 38. This clause puts on a statutory basis the arrangements for forward planning in nationalised industries which have in practice obtained for some time. The clause as the Government originally drafted it sought to ensure that 1194 the Corporations periodically draw up a plan, agree it with the Secretary of State, and in the general conduct of this operation act on lines settled from time to time with the Secretary of State. The effect of this Amendment is that, once a corporate plan had been drawn up, the Corporation could disregard it; or could, in between actual plans, proceed on a strategy not approved by the Secretary of State and even possibly, unacceptable to him.
The Government are strongly against allowing the Corporation such an option. If corporate planning is to be effective and to provide the kind of benefits which we hope will grow from it, there must be some means of ensuring that the plan is followed, or that, if strategy changed in some important respect between annual plans the Corporation continues to satisfy the Secretary of State as to the general lines of that strategy. This Amendment in practical terms makes this impossible and for those reasons I hope that noble Lords will not insist on their Amendment.
§ Moved, That this House doth not insist on the said Amendment, to which the Commons have disagreed for the Reason numbered 38.—(Lord Melchett.)
§ On Question, Motion agreed to.