Session 2012 - 13
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Other Bills before Parliament

Enterprise and Regulatory Reform Bill


Enterprise and Regulatory Reform Bill
Part 1 — UK Green Investment Bank

1

 

A

Bill

To

Make provision about the UK Green Investment Bank; to make provision

about employment law; to establish and make provision about the

Competition and Markets Authority and to abolish the Competition

Commission and the Office of Fair Trading; to amend the Competition Act

1998 and the Enterprise Act 2002; to make provision for the reduction of

legislative burdens; to make provision about copyright and rights in

performances; to make provision about payments to company directors; and

for connected purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Part 1

UK Green Investment Bank

1       

The green purposes

(1)   

The green purposes are—

(a)   

the reduction of greenhouse gas emissions;

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(b)   

the advancement of efficiency in the use of natural resources;

(c)   

the protection or enhancement of the natural environment;

(d)   

the protection or enhancement of biodiversity;

(e)   

the promotion of environmental sustainability.

(2)   

In subsection (1), “greenhouse gas” has the meaning given by section 92(1) of

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the Climate Change Act 2008.

2       

Designation of the UK Green Investment Bank

(1)   

If the following two conditions are met, the Secretary of State may by order

designate the UK Green Investment Bank for the purposes of sections 3 to 6.

 

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Enterprise and Regulatory Reform Bill
Part 1 — UK Green Investment Bank

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(2)   

The first condition is that the Secretary of State is satisfied that the Bank’s

objects in its articles of association are such that, acting consistently with them,

it would engage only in activities that involve, or are incidental or conducive

to, making, facilitating or encouraging investments that it considers likely to

contribute to the achievement of one or more of the green purposes in the

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United Kingdom.

(3)   

The second condition is that the Secretary of State has laid before Parliament a

copy of an undertaking (the “operational independence undertaking”)

provided by the Secretary of State to the Bank for the purpose of facilitating the

Bank’s ability to act as its directors consider appropriate in the light of the

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objects in its articles of association.

(4)   

An order may not be made under this section unless at the date on which it is

made the UK Green Investment Bank is wholly owned by the Crown.

(5)   

An order under this section may not be amended or revoked.

(6)   

An order under this section is to be made by statutory instrument subject to

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annulment in pursuance of a resolution of either House of Parliament.

(7)   

References in this Part to the UK Green Investment Bank are to the public

company limited by shares incorporated on 15 May 2012 with the company

number SC424067 and with the name UK Green Investment Bank plc.

3       

Alteration of the objects of the UK Green Investment Bank

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(1)   

Where an order has been made under section 2, the UK Green Investment Bank

may not make any alteration to its objects in its articles of association unless—

(a)   

the alteration is made to give effect to an order of a court or other

authority having power to alter the Bank’s articles of association, or

(b)   

the making of the alteration has been approved by the Secretary of State

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by order under this section.

(2)   

The Secretary of State may not make an order under this section approving the

making of an alteration unless the condition in subsection (3) is met.

(3)   

The condition is that the Secretary of State is satisfied that, if the alteration were

made, the objects of the Bank in its articles of association would remain such

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that, acting consistently with them, it would engage only in activities that

involve, or are incidental or conducive to, making, facilitating or encouraging

investments that it considers likely to contribute to the achievement of one or

more of the green purposes in the United Kingdom.

(4)   

An order under this section—

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(a)   

is to be made by statutory instrument, and

(b)   

is not to be made unless a draft of the instrument has been laid before,

and approved by a resolution of, each House of Parliament.

4       

The UK Green Investment Bank: financial assistance

(1)   

Where an order has been made under section 2, the Secretary of State may, with the

40

consent of the Treasury, give the UK Green Investment Bank financial assistance at

any time when the Crown’s shareholding in it is more than half of its issued share

capital.

 
 

Enterprise and Regulatory Reform Bill
Part 1 — UK Green Investment Bank

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(2)   

The financial assistance may be given in any form that the Secretary of State,

with the consent of the Treasury, considers appropriate.

(3)   

It may in particular be given by way of—

(a)   

grants,

(b)   

loans,

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(c)   

guarantees,

(d)   

the purchase of share capital of the Bank, or

(e)   

the transfer of assets or rights to the Bank.

(4)   

The financial assistance may be provided subject to such terms and conditions

as the Secretary of State, with the consent of the Treasury, considers

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appropriate (including, in the case of a grant or a loan, conditions requiring

repayment or, in the case of a guarantee, conditions requiring reimbursement

of any sums paid under it).

(5)   

The Treasury may arrange for money to be paid out of the National Loans Fund in

order to enable loans to be made to the Bank under this section.

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(6)   

Nothing in this section affects the exercise of any power of the Treasury or the

Secretary of State to give financial assistance to the Bank otherwise than under

this section at a time when the Crown’s shareholding in the Bank is not more

than half of its issued share capital.

5       

The UK Green Investment Bank: accounts and reports

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Where an order has been made under section 2, the UK Green Investment Bank

is to be treated for the purposes of the application to it of Parts 15 and 16 of the

Companies Act 2006, in respect of a financial year, as being a quoted company

within the meaning of section 385(2) of that Act.

6       

The UK Green Investment Bank: documents to be laid before Parliament

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(1)   

Subsection (2) applies if—

(a)   

after an order has been made under section 2, copies of the UK Green

Investment Bank’s annual accounts and reports are, in accordance with

section 437 of the Companies Act 2006, laid before it in general meeting,

and

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(b)   

as at the date of the meeting, the Crown holds shares in the Bank.

(2)   

The Secretary of State must, as soon as practicable after the meeting, lay a copy

of the annual accounts and reports before Parliament.

(3)   

Subsection (4) applies if—

(a)   

after an order has been made under section 2, the Secretary of State—

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(i)   

makes a material alteration to the terms of the operational

independence undertaking referred to in subsection (3) of

section 2, or

(ii)   

revokes that undertaking, and

(b)   

as at the date of the alteration or revocation, the Crown’s shareholding

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in the UK Green Investment Bank is more than half of its issued share

capital.

(4)   

The Secretary of State must, as soon as practicable after the date referred to in

subsection (3)(b)—

 
 

Enterprise and Regulatory Reform Bill
Part 2 — Employment

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(a)   

in the case of an alteration, lay a copy of the revised undertaking before

Parliament;

(b)   

in the case of revocation of the undertaking, lay before Parliament a

statement reporting the revocation.

Part 2

5

Employment

Conciliation

7       

Conciliation before institution of proceedings

(1)   

After section 18 of the Employment Tribunals Act 1996 (conciliation) insert—

“18A    

Requirement to contact ACAS before instituting proceedings

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(1)   

Before a person (“the prospective claimant”) presents an application to

institute relevant proceedings relating to any matter, the prospective

claimant must send to ACAS prescribed information, in the prescribed

manner, about that matter.

   

This is subject to subsection (7).

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(2)   

On receiving the prescribed information in the prescribed manner,

ACAS shall send a copy of it to a conciliation officer.

(3)   

The conciliation officer shall, during the prescribed period, endeavour

to promote a settlement between the persons who would be parties to

the proceedings.

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(4)   

If—

(a)   

during the prescribed period the conciliation officer concludes

that a settlement is not possible, or

(b)   

the prescribed period expires without a settlement having been

reached,

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the conciliation officer shall issue a certificate to that effect, in the

prescribed manner, to the prospective claimant.

(5)   

The conciliation officer may continue to endeavour to promote a

settlement after the expiry of the prescribed period.

(6)   

In subsections (3) to (5) “settlement” means a settlement that avoids

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proceedings being instituted.

(7)   

A person may institute relevant proceedings without complying with

the requirement in subsection (1) in prescribed cases.

   

The cases that may be prescribed include (in particular)—

(a)   

cases where the requirement is complied with by another

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person instituting relevant proceedings relating to the same

matter;

(b)   

cases where proceedings that are not relevant proceedings are

instituted by means of the same form as proceedings that are;

(c)   

cases where section 18B applies because ACAS has been

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contacted by a person against whom relevant proceedings are

being instituted.

 
 

Enterprise and Regulatory Reform Bill
Part 2 — Employment

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(8)   

A person who is subject to the requirement in subsection (1) may not

present an application to institute relevant proceedings without a

certificate under subsection (4).

(9)   

Where a conciliation officer acts under this section in a case where the

prospective claimant has ceased to be employed by the employer and

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the proposed proceedings are proceedings under section 111 of the

Employment Rights Act 1996, the conciliation officer may in

particular—

(a)   

seek to promote the reinstatement or re-engagement of the

prospective claimant by the employer, or by a successor of the

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employer or by an associated employer, on terms appearing to

the conciliation officer to be equitable, or

(b)   

where the prospective claimant does not wish to be reinstated

or re-engaged, or where reinstatement or re-engagement is not

practicable, seek to promote agreement between them as to a

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sum by way of compensation to be paid by the employer to the

prospective claimant.

(10)   

In subsections (1) to (7) “prescribed” means prescribed in employment

tribunal procedure regulations.

(11)   

The Secretary of State may by employment tribunal procedure

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regulations make such further provision as appears to the Secretary of

State to be necessary or expedient with respect to the conciliation

process provided for by subsections (1) to (8).

(12)   

Employment tribunal procedure regulations may (in particular) make

provision—

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(a)   

authorising the Secretary of State to prescribe, or prescribe

requirements in relation to, any form which is required by such

regulations to be used for the purpose of sending information to

ACAS under subsection (1) or issuing a certificate under

subsection (4);

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(b)   

requiring ACAS to give a person any necessary assistance to

comply with the requirement in subsection (1);

(c)   

for the extension of the period prescribed for the purposes of

subsection (3);

(d)   

treating the requirement in subsection (1) as complied with, for

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the purposes of any provision extending the time limit for

instituting relevant proceedings, by a person who is relieved of

that requirement by virtue of subsection (7)(a).

18B     

Conciliation before institution of proceedings: other ACAS duties

(1)   

This section applies where—

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(a)   

a person contacts ACAS requesting the services of a conciliation

officer in relation to a matter that (if not settled) is likely to give

rise to relevant proceedings against that person, and

(b)   

ACAS has not received information from the prospective

claimant under section 18A(1).

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(2)   

This section also applies where—

(a)   

a person contacts ACAS requesting the services of a conciliation

officer in relation to a matter that (if not settled) is likely to give

rise to relevant proceedings by that person, and

 
 

Enterprise and Regulatory Reform Bill
Part 2 — Employment

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(b)   

the requirement in section 18A(1) would apply to that person

but for section 18A(7).

(3)   

Where this section applies a conciliation officer shall endeavour to

promote a settlement between the persons who would be parties to the

proceedings.

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(4)   

If at any time—

(a)   

the conciliation officer concludes that a settlement is not

possible, or

(b)   

a conciliation officer comes under the duty in section 18A(3) to

promote a settlement between the persons who would be

10

parties to the proceedings,

   

the duty in subsection (3) ceases to apply at that time.

(5)   

In subsections (3) and (4) “settlement” means a settlement that avoids

proceedings being instituted.

(6)   

Subsection (9) of section 18A applies for the purposes of this section as

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it applies for the purposes of that section.”

(2)   

Schedule 1 (conciliation: minor and consequential amendments) has effect.

8       

Extension of limitation periods to allow for conciliation

Schedule 2 (extension of limitation periods to allow for conciliation) has effect.

9       

Extended power to define “relevant proceedings” for conciliation purposes

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(1)   

Section 18 of the Employment Tribunals Act 1996 (conciliation) is amended as

follows.

(2)   

In subsection (8) (power of Secretary of State and Lord Chancellor to amend list

in subsection (1) of section 18), for paragraphs (a) and (b) substitute “amend the

definition of “relevant proceedings” in subsection (1) by adding to or removing

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from the list in that subsection particular types of employment tribunal

proceedings.”

(3)   

After subsection (8) insert—

“(9)   

An order under subsection (8) that adds employment tribunal

proceedings to the list in subsection (1) may amend an enactment so as

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to extend the time limit for instituting those proceedings in such a way

as appears necessary or expedient in order to facilitate the conciliation

process provided for by section 18A.

(10)   

An order under subsection (8) that removes employment tribunal

proceedings from the list in subsection (1) may—

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(a)   

repeal or revoke any provision of an enactment that, for the

purpose mentioned in subsection (9), extends the time limit for

instituting those proceedings;

(b)   

make further amendments which are consequential on that

repeal or revocation.”

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Revised 23 May 2012