§ [No. 7.]
§ Clause 3, page 4, line 29, after "on" insert "or acquire and carry on"
§ 7.23 p.m.
§ The LORD CHANCELLORMy Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 7. It might be for the convenience of the House to consider at the same time Amendment No. 10. The Amendment extends the power in Clause 3(1)(g) to carry on any undertaking or business by providing that the Board may also acquire an undertaking or business. Amendment No. 10 is consequential to No. 7.
These Amendments clarify the position regarding the Board's power to acquire a business. A doubt exists as to whether the power to acquire land or other property in Clause 3(1)(a) extends to the acquisition of the non-tangible assets of a business including its good will. Extending the Board's power under Clause 3(1)(g) to acquire as well as to carry on a business makes it quite clear that the Board does have this power.
In Committee and on Report in another place the Government resisted Opposition attempts to remove or reduce the power 1374 of the Board to carry on a business or alternatively to restrict it to new town areas only, on the grounds that it is necessary for the Board to have power to set up and carry on any business where, in the terms of its general functions, it is in the interest of the economic or social development of the area. It would make nonsense of that power if there was doubt on the power of the Board to acquire non-tangible assets. I should emphasise that the Board will exercise this power only where it is unable to interest private businessmen in an enterprise the Board considers is in the interests of the area. A further safeguard against the misuse of the power to acquire and carry on a business is contained in Clause 3(5)(c), which specifically provides that the approval of the Secretary of State is required in each case that the Board wishes to exercise the power.
§ Moved, That this House doth agree with the Commons in the said Amendment.—(The Lord Chancellor.)
§ Baroness ELLESMy Lords, like Amendment Nos. 1 and 2, we do not find this Amendment particularly satisfactory for the reason I gave when speaking to the earlier ones. The Consultation Document which was circulated to the people of Wales and to all interested parties did not include the power of the Board to acquire businesses. It is a particularly relevant power, because in the area we are considering there are are a great many small businesses, many of which are not succeeding. The people struggling to run these small businesses with the very difficult fiscal and economic handicaps which are being put on them by the Government will suffer even more if a Board with considerable wealth and power can acquire a small business and run it.
It was significant that the noble and learned Lord should refer to a business which perhaps could not interest a private businessman. This will almost undoubtedly mean that they are prepared to take over a business which has no possibility of being run viably and will merely be a way of spending more of the Board's money instead of using the money available to the Board for the benefit of the people themselves. We do not think this Amendment is in the interests of the people of Mid-Wales, and in our view it is very much to the reverse. This