Dormant Bank and Building Society Accounts Bill [Lords] – in a Public Bill Committee at 3:45 pm on 15 October 2008.

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Banks making transfers under section 2: information in directors’ reports

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

Photo of William McCrea William McCrea Shadow Spokesperson (Environment, Food and Rural Affairs)

With this it will be convenient to discuss new clause 1—Building societies making transfers under section 2: information in directors’ reports—

‘(1) Where—

(a) the directors of a building society are required by section 75 of the Buildings Societies Act 1986 (c. 53) (Directors’ report) to prepare a report for a particular year, and

(b) in that year the building society made transfers in relation to which section 2 applied, the report must identify each of the charities concerned and specify the amount transferred to each of them.

(2) The requirements of subsection (1) are to be treated for the purposes of the Building Societies Act 1986 as requirements of that Act.’.

Photo of Mark Hoban Mark Hoban Shadow Minister (Treasury)

New clause 1 stands in my name. Having further considered the new clause and the explanatory notes to the Bill, I feel that the new clause is sadly redundant, although it was very well drafted. What I do not understand—the Minister may be able to help me out—is why the provisions referring to building societies are not in the Bill, whereas those relating to banks are.

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

The situation is as the hon. Member for Fareham suggests. We believe that the new clause is unnecessary. The explanatory note on clause 15 states that the Treasury intends to amend the regulations—made under the Building Societies Act 1986—that deal with building society accounts and reports, so that they include the same requirement to report on participation in the smaller institution scheme. The answer to the hon. Gentleman’s question is that where a regulation-making power, under which the relevant provisions can be made, already exists, it is normal practice for that power to be used, rather than making a new power with primary legislation. That is why we are explaining what we are doing using that power, and that is why that detail is in the explanatory note rather than in the legislation.

Question put and agreed to.

Clause 15 ordered to stand part of the Bill.

Clause 16 ordered to stand part of the Bill.

Schedule 2 agreed to.