Clause 1 - Notices relating to share optionsacquired before 19th May 2000
Social Security Contributions
10:30 am
Mr Tony Colman (Putney, Labour)
I, too, welcome you to the Chair, Mr. Benton. I support amendments Nos. 6 to 9. My hon. Friend the Minister has met a range of advisers and specialists in share option schemes in the past three years, and I hope that he will take my advice in the way in which it is meant when I say that there should be an extension from 60 to 92 days. He has been very supportive of widening share ownership as part of the socialising of capitalism, with which I agree.
There are good practical reasons for extending the period from 60 days to 92 days. There is also a precedent: the raising of the time limit for approved share scheme returns from 30 days to 92 days. However, there are problems in terms of the time it would take for unlisted companies to have their shares valued, and the need for them to decide whether the shares are readily convertible assets. If the shares were not, there would of course be no basis on which to proceed in national insurance terms.
There is a further practical note. I have always admired the pragmatism of my hon. Friend the Minister in respect of these matters. The Bill was published on 20 December—just before the Christmas recess, when many companies are winding down. According to various advisers, most companies are not back in running order until mid-January, so only now are they being alerted to the nature of the Bill. For that reason, one might be critical of this three-week gap.