Clause 4
Banking Bill
4:30 pm
Roger Gale (North Thanet, Conservative)
I remind the Committee that with this we are discussing the following: Amendment No. 74, in clause 4, page 3, line 19, at end insert—
‘(6A) Objective 3A is to protect and safeguard the value of the enterprise.’.
Amendment No. 78, in clause 4, page 3, line 20, at end insert—
‘and to ensure that the expenditure of any public or private funds is done in an economically efficient manner.’.
Amendment No. 76, in clause 4, page 3, line 22, at end insert—
‘(8A) Objective 6 is to protect the interest of creditors.
(8B) Objective 7 is to avoid distorting competition amongst banks.’.
Amendment No. 79, in clause 4, page 3, line 24, at end add—
‘(10) In respect of Objective 7, competition law shall apply to a bank, whether it is wholly or partly owned or controlled by the Government, including a bank to which sections 9 and 12 apply.
(11) Where a bank is wholly or partly owned or controlled by the Government and where section 214 applies, the bank is prohibited from using its favourable position or Government support to its commercial advantage and thereby to prevent, restrict or distort competition in the market for financial services as a whole, or on a product by product basis.
(12) For the purposes of subsection (10) competition law includes the provisions of the Competition Act 1998 and the Enterprise Act 2002, and European Community law competition provisions.
(13) For the purposes of subsections (10) and (11) ownership or control shall be determined by reference to sections 26 and 29 of the Enterprise Act 2002 and by reference, where Community law applies, to the Council Regulation 130/2004 (the European Merger Regulations).’.
Clause stand part.