These are technical amendments to ensure that compensation provisions are in place for the new transfer powers that we have taken under Government amendments Nos. 92 to 97 and new clauses 10 to 13. The amendments ensure that compensation orders and third party compensation orders can be made for supplemental and reverse share and property transferswhich I spoke about last Thursday and earlier todayas is the case where onward transfer powers are exercised. The amendments are necessary to ensure that consistent compensation provisions are in place throughout the Bill. I request, therefore, that hon. Members support the amendments, which I stress are technical and for consistency purposes.
Amendments made: No. 103, in clause 48, page 22, line 15, at end insert
(ba) the Bank of England makes a bridge bank reverse share transfer instrument under section [Bridge bank: reverse share transfer],.
No. 104, in clause 48, page 22, line 17, leave out or and insert
(ca) the Bank of England makes a reverse property transfer instrument under section [Reverse property transfer],.
No. 105, in clause 48, page 22, line 18, at end insert
(da) the Treasury make a reverse property transfer order under section [Temporary public ownership: reverse property transfer],.[Ian Pearson.]
The amendments are largely a drafting matter. There is no a particular dispute about the policy element. Amendment No. 146 relates to clause 48 and attempts to elaborate further what should be contained within a third-party compensation order. It aims to be helpful and provide some clarity to the existing wording. Amendment No. 147 is a rather short amendment to clause 52(5), which reads:
There is nothing to prevent the application of the valuation principles in an order from resulting in no compensation being payable to a transferor.
Presumably the same point applies to third parties, which is why the amendment would add the phrase or to third parties. Both amendments add something to the Bill, particularly amendment No. 147, which provides helpful clarification.
I believe that the purpose of amendment No. 146 is to ensure that rights arising from provision made for compensation by way of a third-party compensation order are in addition to those rights conferred on a third party under a bank resolution scheme order. The amendment is inappropriate as the Treasury does not have the power to make provision for bank resolution funds for onward transfers.
In addition, in relation to any rights arising by way of a bank resolution fund that has been put in place in respect of the initial transfer of property to the bridge bank or bank in temporary public ownership, any provision for compensation for interferences in third-party rights arising under an onward transfer compensation scheme order will relate to separate and unrelated interferences in property rights.
Amendment No. 147 proposes that clause 52(5) should also make reference to third parties. However, as subsection (5) is applied to third parties by clause 54(3), the courts would construe that clause to refer to third parties. The amendment is simply not needed, so I ask the hon. Gentleman to consider withdrawing it.
I will take the Minister at his word on amendment No. 146 but I am not sure that I quite understand his argument on amendment No. 147. If he is saying that the courts will interpret subsection (5) as applying to third parties, notwithstanding the fact that the clause specifically mentions the transferor but does not say or to third parties, the amendment seems helpful. I do not see why he does not accept it. It seems that subsection (5) will apply to third parties, and if it does I see no reason why it should not say so, given that it specifies transferors.
I am loth to divide the Committee on this point, because it does not seem to be anything other than a technical one, and I am surprised that the Minister has not accepted it. However, I am in a generous mood. Perhaps I will allow him to ponder whether he might reconsider later and accept my amendment.
I am happy to ponder, and I appreciate the hon. Gentlemans generosity. It is our view at the moment that the amendment is otiose
and superfluous, but we will reflect on it.