HL Deb 10 November 1999 vol 606 cc1364-5

(" .—(1) In its application to Northern Ireland, this Act has effect with the modifications specified in subsections (2) and (3).

(2) In section 6(2), for "section 14 of the Companies Act 1985" there is substituted "Article 25 of the Companies (Northern Ireland) Order 1986".

(3) In section 7, for subsection (3) there is substituted—

"(3) In Articles 4(a) and 15 of the Limitation (Northern Ireland) Order 1989, the references to an action founded on a simple contract and an action upon an instrument under seal shall respectively include references to an action brought in reliance on section 1 relating to a simple contract and an action brought in reliance on that section relating to a contract under seal.".

(4) In the Law Reform (Husband and Wife) (Northern Ireland) Act 1964, the following provisions are hereby repealed—

  1. (a) section 5, and
  2. (b) in section 6, in subsection (1)(a), the words "in the case of section 4" and "in the case of section 5 the contracting party" and, in subsection (3), the words "or section 5".")

The Lord Chancellor

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 4. In moving this amendment, I desire to speak also to Amendment No. 5.

In 1998 the Law Reform Advisory Committee for Northern Ireland issued a report which recommended for Northern Ireland reforms similar to those which are contained in the Bill. The recommendations were based on a consultation process which had attracted almost unanimous support. As contract law in Northern Ireland has traditionally run in parallel with contract law in England and Wales, it was originally our intention to implement the Law Reform Advisory Committee's recommendations by extending this Bill directly to Northern Ireland. It was then thought that, as contract law will fall within the Northern Ireland Executive and Assembly's transferred area of competence, the reforms should be a matter for decision by them. Regretfully, however, as your Lordships know, the Assembly is not yet fully in place, and the Government have decided that the people and businesses of Northern Ireland should have immediate access to this valuable piece of law reform.

Amendment No. 5 directly extends the provisions of the Bill to Northern Ireland, subject to the consequential amendments in the new clause which is inserted by Amendment No. 4. Subsections (1), (2) and (3) of the new clause make minor consequential amendments to Clauses 6 and 7 of the Bill, so that references to legislation will apply to the equivalent statutory provisions in Northern Ireland. Subsection (4) of the new clause repeals Section 5 of the Law Reform (Husband and Wife) (Northern Ireland) Act 1964, which has no direct equivalent in England and Wales. This section modifies the rule of privity of contract in respect of contracts which expressly confer a right on a spouse or child of the contracting parties. Since this Bill makes comprehensive provision for third party beneficiaries under a contract, there will no longer be any need for Section 5 of the 1964 Act. I commend the amendments to the House.

Moved, That the House do agree with the Commons in their Amendment No. 4.—(The Lord Chancellor.)

On Question, Motion agreed to.