HL Deb 23 October 1985 vol 467 cc1157-8

50 Page 11. line 18, leave out 'or'.

51 Page 11. line 20, at end insert 'or' (c) where the company is a recognised bank or licensed institution within the meaning of the Banking Act 1970 or an institution to which sections 16 and 18 of that Act apply as if it were a licensed institution'.

Lord Lucas of Chilworth

My Lords, I beg to move that this House do agree with the Commons in their Amendments Nos. 50 and 51, and I wish to speak also to Amendments Nos. 398 and 518:

398 After Clause 203, insert the following new clause: ('Recognised banks etc. .—(1) The Secretary of State may, by order made with the concurrence of the Treasury and after consultation with the Bank of England, provide that such provisions of Part II of this Act and Parts XVIII to XXI of the 1985 Act as may be specified in the order shall apply in relation to—

  1. (a) recognised banks and licensed institutions within the meaning of the Banking Act 1970; and
  2. (b) Institutions to which sections 16 and 18 of that Act apply as if they were licensed institutions,
with such modifications as may be so specified. (2) An order under this section may make different provision for different cases and may contain such incidental, supplemental and transitional provisions as may appear to the Secretary of State necessary or expedient. (3) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.")

518 Schedule 7, page 193, leave out lines 28 to 30.

Amendment No. 398 empowers the Secretary of State, with the concurrence of the Treasury and after consultation with the Bank of England, to introduce by order a modified version of the administrator procedure to apply to recognised banks, licensed and other institutions covered by the Banking Act 1979. Pending the making of that order Amendments Nos. 50, 51 and 518 disapply the provisions of Part II Chapter 2 from recognised banks and licensed institutions. The decision in principle that the new procedure shall be available in respect of such institutions was taken at the beginning of last year. Unfortunately, however, the evolution of the new procedure following consultation with practitioners on its detailed provisions has meant that it has not been possible to devise appropriate modifications to make it suitable for application to Banking Act institutions in time for their inclusion in the Bill.

Clearly such modification is necessary in recognition of the Bank of England's statutory status in relation to the supervision of recognised banks and licensed institutions. The provisions of the winding-up code already recognise this statutory status. It is intended therefore that an order will be made under the new clause which will modify Part II Chapter 2 in a way which recognises the Bank of England's supervisory responsibilities. The provisions of the winding-up code will be the principal guide in devising the modified procedure, although I have to say that the detailed consultations with all the relevant departments has yet to take place. It is intended that the draft order will be ready by the time Part II Chapter 2 is brought into force. I beg to move.

Moved, That this House do agree with the Commons in their Amendments Nos. 5 ! and 52.—(Lord Lucas of Chilworth.)

Lord Bruce of Donington

My Lords, the noble Lord mentioned that at a later stage some orders would be brought out setting out the matters that had been arrived at and agreed in the process of consultation. I wonder whether the noble Lord can give the House more advanced information than that and if a general statement could be made as to the agreements arrived at as a result of the consultation prior to the order itself being issued. It would be for the greater advance of the business community as a whole if they were aware of the agreements included by his department and the various other bodies with whom he has been consulting.

Lord Lucas of Chilworth

My Lords, if I understand the noble Lord, Lord Bruce of Donington, aright, he is seeking assurance that the outcome of consultations will be made widely available—of course, to your Lordships' House as well as to other interested parties—before an order is made. I should be glad to give him that undertaking.

Lord Bruce of Donington

My Lords, I am obliged.

On Question, Motion agreed to.