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4119

 

House of Commons

 
 

Wednesday 14 March 2012

 

Committee of the whole House

 

Water Industry (Financial Assistance) Bill


 

Mary Creagh

 

Gavin Shuker

 

Huw Irranca-Davies

 

1

 

Clause  1,  page  2,  line  2,  at end insert—

 

‘(5A)    

 

(a)    

In exercising the power under subsection (3) the Secretary of State may

 

make an order containing a scheme for the provision of financial

 

assistance to customers whom the Secretary of State considers are

 

disproportionately adversely affected by the water charges with a view to

 

reducing the impact of those water charges.

 

(b)    

The scheme shall—

 

(i)    

specify the customers whose charges are covered by the scheme,

 

(ii)    

set out the basis of the adjustment of the charges, and

 

(iii)    

specify the duration of the adjustment.

 

(c)    

An order shall not be made under this section unless a draft of the

 

statutory instrument containing it has been laid before, and approved by

 

a resolution of, each House of Parliament.’.

 


 

Simon Hughes

 

4

 

Clause  2,  page  3,  line  3,  at end insert—

 

‘(5A)    

Financial assistance may only be given under subsection (1) if the financing of

 

the infrastructure is being secured by a group company which has adopted the

 

equator principles.’.

 

Simon Hughes

 

5

 

Clause  2,  page  3,  line  3,  at end insert—

 

‘(5A)    

Financial assistance must not be given to any company which has a debt to equity

 

ratio of more than 65%.’.

 

Simon Hughes

 

6

 

Clause  2,  page  3,  line  3,  at end insert—


 
 

Committee of the whole House: 14 March 2012              

4120

 

Water Industry (Financial Assistance) Bill, continued

 
 

‘(5A)    

The Secretary of State may suspend any financial assistance given under

 

subsection (1) if either of the following conditions are met—

 

(a)    

the group of companies responsible for the infrastructure or the English

 

undertaker by which the infrastructure is used or is intended to be used is

 

deemed to be making excessive dividend payments, or

 

(b)    

if the group of companies responsible for the infrastructure or the English

 

undertaker by which the infrastructure is used or is intended to be used is

 

liable to pay interest to its shareholders at an interest rate which is greater

 

than the interest rate which may be expected to be obtained through the

 

financial markets.’.

 

Simon Hughes

 

7

 

Clause  2,  page  3,  line  3,  at end insert—

 

‘(5A)    

The Secretary of State must not grant any financial assistance under subsection

 

(1) if he is not satisfied that the company responsible for the infrastructure or the

 

English undertaker by which the infrastructure is used or is intended to be used is

 

a fit and proper person.’.

 

Simon Hughes

 

8

 

Clause  2,  page  3,  line  3,  at end insert—

 

‘(5A)    

The Secretary of State may only grant financial assistance under subsection (1) if

 

he is satisfied that the company responsible for the infrastructure or the English

 

undertaker by which the infrastructure is used or is intended to be used is meeting

 

all of their tax obligations.’.

 

Simon Hughes

 

9

 

Clause  2,  page  3,  line  3,  at end insert—

 

‘(5A)    

The Secretary of State must not grant any financial assistance if the English

 

undertaker which uses or intends to use the infrastructure operates any

 

subsidiaries in tax havens as defined by the OECD tax haven criteria.’.

 

Simon Hughes

 

10

 

Clause  2,  page  3,  line  3,  at end insert—

 

‘(5A)    

The Secretary of State may only grant financial assistance after a business plan

 

for the proposed infrastructure has been approved by Ofwat and the National

 

Audit Office.

 

(5B)    

The business plan must demonstrate that the company carrying out the

 

infrastructure has adequate capital resources to complete the infrastrucure

 

project.’.

 

Mary Creagh

 

Gavin Shuker

 

Huw Irranca-Davies

 

2

 

Clause  2,  page  3,  line  5,  at end insert—

 

‘(6A)    

No financial assistance may be given under subsection (6) unless the Secretary of

 

State has laid a draft of a statutory instrument setting out the terms and conditions

 

including the duration of such assistance before, and such draft has been approved

 

by a resolution of, each House of Parliament.’.


 
 

Committee of the whole House: 14 March 2012              

4121

 

Water Industry (Financial Assistance) Bill, continued

 
 

Mary Creagh

 

Gavin Shuker

 

Huw Irranca-Davies

 

3

 

Clause  2,  page  3,  line  5,  at end insert—

 

‘(6B)    

Before making regulations or an order under this section, the Secretary of State

 

must lay a report before Parliament on her proposals to make apprenticeship

 

programmes including at a Level 5 and Level 6 standard part of any major works,

 

as well as an estimate of the number of jobs created and benefit to the local

 

economy.’.

 


 

New Clause

 

Water company social tariffs

 

Mary Creagh

 

Gavin Shuker

 

Huw Irranca-Davies

 

NC1

 

To move the following Clause:—

 

‘(1)    

The Secretary of State shall provide in regulations for the introduction of

 

minimum standards for water company social tariffs, by 1 April 2013.

 

(2)    

Regulations made under subsection (1) above shall be made by statutory

 

instrument and may not be made unless a draft has been laid before, and approved

 

by resolution of, each House of Parliament.

 

(3)    

Ofwat shall publish 12 months after the passing of this Act and every year

 

thereafter a league table of water companies reporting the performance of the

 

provision of social tariffs and the number of households spending more than 3 per

 

cent. and more than 5 per cent. of their disposable income on water bills.’.

 

 

Order of the House [6 March 2012]

 

That the following provisions shall apply to the Water Industry (Financial Assistance)

 

Bill:

 

Committal

 

1.    

The Bill shall be committed to a Committee of the whole House.

 

Proceedings in Committee, on consideration and on Third Reading

 

2.    

Proceedings in Committee, any proceedings on consideration and

 

proceedings on Third Reading shall be completed at one day’s sitting.

 

3.    

On that day, proceedings in Committee and any proceedings on consideration

 

shall (so far as not previously concluded) be brought to a conclusion one hour

 

before the moment of interruption.

 

4.    

On that day, proceedings on Third Reading shall (so far as not previously

 

concluded) be brought to a conclusion at the moment of interruption.

 

5.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings in Committee of the whole House, any proceedings on

 

consideration or proceedings on Third Reading.


 
 

Committee of the whole House: 14 March 2012              

4122

 

Water Industry (Financial Assistance) Bill, continued

 
 

Other proceedings

 

6.    

Any other proceedings on the Bill (including any proceedings on

 

consideration of Lords Amendments or on any further messages from the

 

Lords) may be programmed.

 


 
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Revised 14 March 2012