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Clause 120

Banking Bill – in a Public Bill Committee at 2:30 pm on 13th November 2008.

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Scottish partnerships

Question proposed, That the clause stand part of the Bill.

Photo of Stewart Hosie Stewart Hosie Shadow Chief Whip (Commons), Shadow Spokesperson (Treasury)

Obviously the clause will give the Secretary of State powers to include Scottish partnerships as institutions that might fail and therefore be required to be covered by the special regime and so on. However, I am sure that he knows, because I am sure that the Accountant in Bankruptcy has already advised the Government, that if a partnership fails it is dealt with by sequestration rather than liquidation. That does not appear to be anywhere in the Bill. Notwithstanding the table of modifications or comments on other pieces of legislation, which was in a previous clause, the clause does not appear to take cognisance of the sequestration rules and law that apply in Scotland in relation to partnerships. So can I have confirmation that that will be changed, or can the Minister simply confirm that this new insolvency procedure will apply with the necessary modifications as per the previous table which describes the bits of legislation and how they will now be interpreted?

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

Following a helpful brief conversation that I had with the hon. Gentleman earlier, I have done a limited amount of checking. We are aware of the points that he makes. It is our intention that regulations made under clause 120 will reflect the legal terms and practices that are used in Scotland. We are aware of the situation and will endeavour to ensure that the legislation is fit for purpose.

Question put and agreed to.

Clause 120 ordered to stand part of the Bill.

Clause 121 ordered to stand part of the Bill.