Banking Bill — Committee (4th Day)

Part of the debate – in the House of Lords at 5:00 pm on 20th January 2009.

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Photo of Viscount Eccles Viscount Eccles Conservative 5:00 pm, 20th January 2009

I would be more comforted if I were certain that trustees would not think that the partial transfer procedure was likely to have overridden their power to act as efficiently as they would have liked to have acted on behalf of the members of the scheme. That is another reason why I sincerely hope that more thought will be given to Clause 71. Whereas much of the Bill could be shortened, there is a case for spelling out in more detail the provisions with regard to pension schemes. Meanwhile, I beg leave to withdraw the amendment.

Amendment 116A withdrawn.

Amendment 117

Moved by Lord Myners

117: Clause 71, page 36, line 30, at end insert—

"(7) In subsection (6)(b) the reference to a group company of the bank is a reference to anything that is or was a group undertaking in relation to the bank within the meaning given by section 1161(5) of the Companies Act 2006."

Amendment 117 agreed.

Amendment 118

Moved by Lord James of Blackheath

118: Clause 71, leave out Clause 71 and insert the following new Clause—

"Pensions

Whereas a bank once taken under control by the Treasury will thereby have its solvency restored, nothing in that subsequent restoration of solvency shall preclude the former pension scheme attached to that bank from applying for inclusion in the Pension Protection Fund on the grounds that its parent was insolvent prior to being taken under Treasury control."