New Clause 4 - Procedure when right to acquire ceasesto be exercisable
Social Security Contributions
12:30 pm
Mr Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)
The new clause is contrary to the spirit of the Bill. Our aim is to allow companies to obtain some certainty and, inevitably, a judgment must be made. It is a voluntary measure and employers will have to consider whether settling the NIC at the share price on 7 November 2000 is right for them. They will have to make a judgment on whether the benefits of early settlement outweigh the risk that the share price might fall or that options will not be exercised.
The Bill gives companies the chance to arrive at a once-and-for-all decision on what is in their best interests. It provides the certainty that they asked for in relation to their liability on gap options. If refunds were allowed, the certainty that companies have asked for would be undermined, and that would undermine the whole purpose of the Bill. The certainty that is provided by the Bill is valuable for companies and the Exchequer, and I hope that the hon. Gentleman will not press the motion to a vote.