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Clause 112

Banking Bill – in a Public Bill Committee at 2:15 pm on 13th November 2008.

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Rules

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

I beg to move amendment No. 160, in clause 112, page 59, line 1, leave out subsection (2) and insert—

‘(2) After subsection (1) insert—

“(1A) Rules may also be made for the purpose of giving effect to Part 2 of the Banking Act 2008 (bank insolvency orders); and rules for that purpose shall be made—

(a) in relation to England and Wales, by the Lord Chancellor with the concurrence of—

(i) the Treasury, and

(ii) in the case of rules that affect court procedure, the Lord Chief Justice, or

(b) in relation to Scotland, by the Treasury.”’.

Photo of Roger Gale Roger Gale Conservative, North Thanet

With this it will be convenient to discuss Government amendments Nos. 161, 162, 175 and 176.

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

The amendments concern the secondary legislation that will set out rules for the bank insolvency procedure, the BIP, and the bank administration procedure, the BAP. Government amendments Nos. 160 to 162 mean that the general BIP rules for England and Wales—those that do not affect court procedure—will be made with the concurrence of the Treasury, rather then the Secretary of State for Business, Enterprise and Regulatory Reform. Rules that affect court procedure will be drawn up with the concurrence of the Lord Chief Justice, as usual. The Treasury, rather than the Secretary of State, will make the rules for Scotland. Government amendments Nos. 175 and 176 make the same provision for the BAP.

We have done this because the Treasury rather than the Secretary of State for BERR takes policy responsibility for banks. The BIP and BAP have been designed with specific objectives, which have been set out by the Treasury. It is right that the Treasury should take responsibility for agreeing the rules to make the procedures function in pursuit of those objectives. It is likely that the rules for the BIP and BAP will draw on existing insolvency rules. Throughout, the Government’s approach has been to ensure that we follow existing insolvency provisions as closely as possible, as I have previously outlined to the hon. Member for Gosport. In considering the rules for the BIP or BAP, the Treasury will draw on the expertise of BERR, the Insolvency Service and others in the practitioner community.

Photo of Peter Viggers Peter Viggers Conservative, Gosport

It is recognised that it will be necessary to have insolvency rules to supplement and change the Insolvency Rules 1986, which themselves are a gloss on the Insolvency Act 1986. This is obviously important. Will the Minister tell us when we can see these new insolvency rules, because a firm and early timetable would be reassuring for practitioners?

Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

I do not have a specific time scale in mind. My understanding is that we have done a lot of work on these rules and they are almost ready. That should give the hon. Gentleman some reassurance.

Amendment agreed to.

Amendments made: No. 161, in clause 112, page 59, line 2, at end insert—

‘(2A) In subsection (2)—

(a) after “subsection (1),” insert “(1A)”;

(b) in paragraph (b), after “Secretary of State” insert “or the Treasury”.’.

No. 162, in clause 112, page 59, line 11, at end insert—

‘(5) In subsection (5), after “the Secretary of State” insert “or the Treasury”.

(6) In paragraph 27 of Schedule 8 to the Insolvency Act 1986 (provisions capable of inclusion in company insolvency rules), after “Secretary of State” insert “or the Treasury”.’.—[Ian Pearson.]

Clause 112, as amended, ordered to stand part of the Bill.

Clauses 113 and 114 ordered to stand part of the Bill.