§ 5 Clause 2, page 2, line 25, leave out from beginning to "or" and insert "the tenancy begins before 1st September 1995".
§ 6 Page 2, line 26, leave out "granted after that commencement" and insert "beginning on or after that date".
§ 7 Clause 4, page 3, line 12, leave out "granted after the commencement of this Act" and insert "beginning on or after 1st September 1995".
§ 8 Page 3, line 14, leave out "entered into after that commencement" and insert "beginning on or after that date".
§
9 Page 3, line 15, at end insert:
( ) is granted by a written contract of tenancy entered into before 1st September 1995 and indicating (in whatever terms) that the 1986 Act is to apply in relation to the tenancy,".
Earl HoweMy Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 5 to 9 en bloc. With the leave of the House, I should also like to speak to Amendments Nos. 13, 28 and 29.
This group of amendments also concerns the beginning of the tenancy and addresses the specific point identified by the noble Lord, Lord Gallacher. We recognise that if farm business tenancies are to come into operation this autumn, people need to be able to plan ahead. The amendments to Clause 2 will make it clear that the date on which a tenancy begins will normally determine whether it is a farm business tenancy or 1986 Act tenancies. No farm business tenancies can begin before 1st September 1995. From that date the only new 1986 Act tenancies will be those permitted by Clause 4.
The first two amendments to Clause 4 bring this clause into line with Clause 2. The third amendment is important. It will enable a 1986 Act tenancy to begin on or after 1st September provided it was granted by a written contract 1350 of tenancy, entered into before that date, which indicated that the 1986 Act is to apply to the tenancy. This provision is necessary to prevent the Bill having a retrospective effect on contracts entered into before 1st September where the parties intended the 1986 Act to apply.
§ Moved, That the House do agree with the Commons in their Amendment Nos. 5 to 9 en bloc.—(Earl Howe.)
§ Lord CarterMy Lords, I imagine that it will be rare in the run-up to 1st September for anyone to set up a new tenancy under the 1986 Act. Will this provision apply to a succession tenancy which comes into effect before 1st September or will that follow automatically as a result of the 1986 Act?
Earl HoweMy Lords, the noble Lord is right that any tenancies which come into effect prior to 1st September will legally have to be 1986 Act tenancies because the Bill comes into force only on 1st September. This provision addresses the possibility that parties may wish a 1986 Act tenancy to apply after 1st September and the contract is entered into prior to 1st September.
§ Lord CarterMy Lords, we need to be clear about the point. As I understand it, the parties will not be able to use the 1986 Act after 1st September. However, can the Minister confirm that it is only if the parties want to do so after 1st September, having made the decision before that date, that that would be the case? Is that correct?
Earl HoweMy Lords, that is indeed the case, other than those specific exceptions allowed for in the Bill.
§ On Question, Motion agreed to.