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Banking Bill — Committee (4th Day)

Part of the debate – in the House of Lords at 6:30 pm on 20th January 2009.

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Photo of Lord Newby Lord Newby Spokesperson for the Treasury 6:30 pm, 20th January 2009

There are more or less acceptable bits of subsection (8). If you are bringing a bank into the regime at the beginning of August and feel that you have to use some of the powers in Clause 75, you would do it under an order and, as paragraph (b) of subsection (8) states, you have 28 days after Parliament returns to get the order approved. That does not seem draconian or untoward; it seems sensible. In reality, the likelihood of Parliament being recalled purely to approve an order under this clause is not practical politics.

However, paragraphs (c) and (d) seem odd. If, as paragraph (c) states, the fact that an order has lapsed does not invalidate anything that you have done, by definition virtually everything that you are going to need to do will have to happen very quickly, so you will have done it. Therefore, paragraph (c) is very strange. I take the point about paragraph (d). What is to stop the Government reintroducing an order? Again, in practical politics, it is highly unlikely, but the provision states that if an order lapses it can be reintroduced. If the Government do not put it to a vote, any action taken under it cannot be invalidated and you could keep going round that roundabout time after time.