COMMONS AMENDMENTS (Hansard, 28 June 1978)

§ The LORD CHANCELLOR

My Lords, I beg to move that this House doth agree with the Commons in their Amendments Nos. 5 and 6 en bloc. It may be 318 convenient if we also consider at the same time Amendments Nos. 11 and 12. Amendments Nos. 5 and 6 are merely paving Amendments for Amendment No. 11 and, in turn, Amendment No. 12 is consequential. Thus, the Amendment of importance is No. 11. This deals, first, with the immunities to be enjoyed by separate State entities which could claim immunity, but have submitted to jurisdiction; and, secondly, with the special position of central banks. The Amendments replace by precise and comprehensive provisions references which are at present found in different places in Clauses 13 and 14 of the Bill and which were open to some doubts. They confer complete immunity from the processes of seizure or restraint on all property of central banks.

The new subsection (2A) provides that, when a separate entity, not being a central bank or other monetary authority, submits to the jurisdiction in respect of proceedings where it would be entitled to immunity by virtue of Clause 14(2), subsections (1) to (4) of Clause 13 apply to it so that it is subject to the same rules as a State would be in respect of immunity from execution and from injunctions and other compulsory processes.

The new subsection (2B) brings all the present provisions about central banks together in one place, and, in addition, confers immunity from injunctions and similar orders on such banks. It ensures that a central bank or other monetary authority shall have the same immunity with regard to execution, or in respect of relief by way of injunction or order for specific performance or for the recovery of land or other property as a State will have, irrespective of whether the central bank is a separate entity or is acting in the exercise of sovereign authority.