My Lords, I am very grateful to the noble Lord for his acceptance of the measure in that way. I am also grateful for the general welcome that it has received in your Lordships' House this evening.

I was asked two questions which I shall now try to deal with. First, my noble friend Lady Carnegy raised the question of how the bank would operate where cheques were presented and collectively they were more than the funds available to meet them. What happens is quite straightforward now south of the Border. The cheques in question would all be returned. In doing so, the bank would get in touch with the writer and say, "These cheques have been presented and they cannot be met because there is not enough money in your account". The bank would then ask how it was to be dealt with, whether cheques one and two but not three should be re-presented, or the other way around. In other words, there would be consultation, as my noble friend asked, in the best interests of the customer as to which of the cheques could be met. The remaining cheque or cheques which could not be met because there was still insufficient funds would remain a problem to be dealt with in the normal way by saying to the customer, "You have no funds to meet this cheque or cheques, therefore, you must consider what should be done".

That leads me to the second question which the noble Lord, Lord Mackay, raised. He asked what would happen if a cheque for £100 is presented and it can be met except for £10. The answer is that the cheque would be returned to the bank of the writer of the cheque. It would say to the customer, "Your cheque has been presented but you do not have £100 to meet it, only £90". There would then be the option of discussing with the customer whether he or she wished not to present it at all or whether a new cheque should be presented for £90, which would be met, leaving a debt to the business colleague of £10. That would be a matter for discussion between the customer and his or her bank. That raises the need for the measure. It is that sensible dialogue which is prevented by the strange anomaly in the law which we are trying to remove. With that assurance, I very much hope that your Lordships will agree that this measure is worth taking. I therefore ask noble Lords to give the Bill a Second Reading.

On Question, Bill read a second time, and committed to a Committee of the Whole House.