House of Commons Wednesday 17 October 2012
Report Stage Proceedings
Enterprise and Regulatory Reform Bill , As Amended

‘( 1) The Employment Tribunals Act 1996 is amended as follows.

(2) In section 9 (pre-hearing reviews and preliminary matters), in subsection (2)
(deposit orders), in paragraph (a)—

(a) omit “, if he wishes to continue to participate in those proceedings,”;

(b) after “an amount not exceeding £1,000” insert “as a condition of—

(3) In section 13A (payments in respect of preparation time)—

(a) in subsection (3), after “shall also” insert “, subject to subsection (4),”;

(b) after subsection (3) insert—

(4) In section 42 (interpretation), in subsection (1), after the definition of
“employment tribunal procedure regulations” insert—

‘The Employment Rights Act 1996 is amended as follows:

(1) Omit “in good faith”—

(a) in section 43C (Disclosures qualifying for protection), in subsection (1),

(b) in section 43E (Disclosure to Minister of the Crown), in paragraph (b),
and

(c) in section 43F (Disclosure to prescribed person), in subsection (1)(a).

(2) Omit “makes the disclosure in good faith,

(a) in section 43G (Disclosure in other cases), in subsection (1), and

(b) in section 43H (Disclosure of exceptionally serious failure), in subsection
(1).’.

‘( 1) The Secretary of State shall make regulations requiring an employer, where a
worker has made a protected disclosure under section 43A of the Employment
Rights Act 1996, to take reasonable steps to ensure that the worker is not
subjected to any detriment by any act, or any deliberate failure to act, by a person
other than his employer done on the ground that worker has made the disclosure.

(2) Regulations under this section—

(a) are to be made by statutory instrument, and

(b) are not to be made unless a draft of the instrument has been laid before,
and approved by a resolution of, each House of Parliament.’.

‘(1) Prior to the commencement of this section, the Secretary of State shall carry out
an impact assessment into the effect of the introduction of proposed fees for the

employment tribunal system and the impact this will have on the effectiveness of
ACAS conciliation proceedings.’.

‘(e) preventing an employer or ex-employer of a prospective Claimant from
applying for costs against the prospective Claimant under the
Employment Tribunal Rules or other measures to provide an incentive to
employers or ex-employers to take part in the conciliation process.’.

‘(1) Evidence of pre-termination negotiations is inadmissible in any proceedings on a
complaint under section 111.

This is subject to subsections (2) to (4).

(1A) In subsection (1) “pre-termination negotiations” means any offer made or
discussions held, before the termination of the employment in question, with a
view to it being terminated on terms agreed between the employer and the
employee.’.

‘(b) the lower of—

(i) a specified amount, and

(ii) a specified number multiplied by a week’s pay of the individual
concerned.’.

‘(c) and where the employer employs in excess of 10 employees at the time
of the claim first being submitted to ACAS as per section 18A of this
Act,’.

‘(1A) The Secretary of State shall by regulations provide for an employer to pay a
penalty to the Secretary of State for each period of time (as specified in those
regulations) that passes during which an award of compensation under Part X of
the Employment Rights Act 1996 has not yet been paid by the employer.’.

“(2A) The disclosure of information relating to a private contractual matter to which the
person making the disclosure is party is not a qualifying disclosure unless the
worker making the disclosure reasonably believes it to be made in the public
interest.”.’.

‘(2A) In section 49 of the National Minimum Wage Act 1998 (restrictions on
contracting out)—

(a) in subsections (3) and (4), for “compromise” (in each place where it
occurs) substitute “settlement”;

(b) after subsection (8) insert—

‘( 1) In interpreting the purposes in section 1(1)(a) to (e), it is the duty of the UK Green
Investment Bank to assess whether the implementation of its investment strategy,
or similar document outlining or amending the proposed investment portfolio of
the UK Green Investment Bank will, as a whole, increase the likelihood of
achieving carbon budgets and greenhouse reduction targets as set out under the
Climate Change Act 2008.

(2) In subsection (1), whether or not an investment strategy will increase the
likelihood of achieving carbon budgets and greenhouse gas reduction targets shall
be assessed compared to a scenario where identified investments or investment
categories did not proceed.

(3) In undertaking the assessment required under subsection (1), it is the duty of the
UK Green Investment Bank to have regard to the advice and reports of the
Committee on Climate Change required under sections 34, 36 and 38 of the
Climate Change Act 2008.

(4) The Board must make a decision to adopt or amend its investment strategy or
similar document described in subsection (1), unless it is satisfied, as a result of
the assessment in subsection (1), that the proposed investment portfolio will, as a
whole, increase the likelihood of achieving carbon budgets and greenhouse gas
reduction targets under the Climate Change Act 2008.’.

‘The UK Green Investment Bank may not engage in activities that involve
facilitating or encouraging investment in nuclear power or the nuclear industry.’.

‘(3) In undertaking investments in accordance with the green purposes outlined in
subsection (1), the UK Green Investment Bank will identify opportunities in
which small and medium-sized enterprises can be awarded contracts.’.

(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.’.

‘(7) Subject to the approval by the European Commission of the State aid notification
concerning the establishment of the UK Green Investment Bank, the Secretary of
State shall provide the European Commission with State aid notification
concerning the intention to allow the Bank to borrow, including borrowing from
the capital markets.

(8) The duty in subsection (7) must be fulfilled no later than 31 December 2013.

(9) It is the duty of HM Treasury and the Secretary of State to either—

(a) permit the UK Green Investment Bank to begin borrowing from the
capital markets by April 2015, or

(b) to present to Parliament a report within one month of the passage of this
Act giving a clear, certain, alternative date for the UK Green Investment
Bank to begin borrowing, based on Office for Budget Responsibility
forecasts for the public finances and advice from the Green Investment
Bank on its need for borrowing powers,

both subject to the European Commission approving the State aid notification
concerning borrowing.’.

‘(00) Subject to approval by the European Commission of the State aid notification
concerning the establishment of the UK Green Investment Bank, it is the duty of
the Secretary of State to provide the European Commission with State aid
notification concerning the intention to allow the Bank to borrow, including
borrowing from the capital markets.

(00) The duty in the above subsection must be fulfilled no later than 31 December
2013.

(00) In the event the European Commission approves the State aid notification
concerning borrowing, it is the duty of the Treasury and of the Secretary of State
to permit the Green Investment Bank to begin borrowing from the capital markets
no later than 30 June 2015, or, if State aid approval has not been received by that
date, no later than one month from the date of approval.’.

(a) Chapters 4 and 4A of Part 10 of that Act, and

(b) Parts 15 and 16 of that Act (in respect of a financial year).’.

‘(5) The Secretary of State will be required to receive independent expert review of
the performance of the UK Green Investment Bank.

(6) The Secretary of State will be required to receive such a review no less than every
five years.

(7) An interim review no less frequently than every two and half years.

(8) The independent expert review in subsection (5) must, in particular, include or
contain information relating to—

(a) an assessment of the UK Green Investment Bank’s environmental
performance in fulfilling the green purposes as set out in section 1.

(b) an analysis of the main trends and factors likely to affect the future
development, performance and investments of the UK Green Investment
bank,

(c) macroeconomic analysis, including assessments of demand in the UK
economy and international factors likely to affect green investment and
skills within the relevant industries,

(d) assessment of the competitveness of the UK Green Investment Bank in
securing competitive advantage for the UK in green and low carbon
economies relative to other countries, and

(e) recommendations to improve the UK Green Investment Bank’s impact in
fulfilling its green purposes in section 1.

(9) Prior to the commencement of a review in relation to subsection (5), the Secretary
of State must request the views of—

(a) The Secretary of State for Energy and Climate Change,

(b) The Secretary of State for Environment, Food and Rural Affairs,

(c) The Committee on Climate Change,

(d) Ministers from the devolved administrations,

(e) investors and interested parties, and

(f) members of the public,

and provide a copy of the results of the consultations to the person or persons
undertaking the independent review.

(10) The Secretary of State, in the capacity of shareholder, must provide such
information as he considers reasonable to enable the person or body undertaking
the review to fulfill the requirements of this subsection.

(11) A review made in relation to subsection (5) must be published and laid before
both Houses of Parliament.’.

‘(1A) A representative of the company’s employees must be consulted in the
preparation of any such revision.’.

‘(b) and annually thereafter.’.

‘ “quoted company” has the same meaning as in Part 15 of this Act;’.

(a) holding, agreeing to hold or having held office as director of a company,
or

(b) holding, agreeing to hold or having held, during a period when the person
is or was such a director—

(i) any other office or employment in connection with the
management of the affairs of the company, or

(ii) any office (as director or otherwise) or employment in
connection with the management of the affairs of any subsidiary
undertaking of the company,’.

‘(12) In that Schedule, in the first column, after “quoted company”, insert—

‘(7) The Secretary of State must have regard to any feasibility study commissioned on
the licensing of orphan works in advance of the regulations being laid before
Parliament.’.

‘(00) section [Civil liability for breach of health and safety duties] extends only
to England and Wales and Scotland except that it also extends to
Northern Ireland so far as Parts 1 and 4 of the Health and Safety at Work
etc. Act 1974 extend there,’.

‘(00) section [Osborne estate];’.

‘(00) section [Power to provide for equal pay audits];’.

‘(d) Sections [Local authorities: powers relating to deemed consent] and
[Restriction of advertisements relating to property letting].’.

‘The Secretary of State for Business, Innovation and Skills shall produce a report
each year following commencement of this Act to demonstrate how the
Government has applied the “one in, one out” regulatory principle to European
regulations on business in that year.’.

(a) the power or duty is exercisable by the Scottish Ministers, or

(b) the power or duty is exercisable by any other person within devolved
competence (within the meaning of the Scotland Act 1998).’.

‘( 1) Section 58 of the Enterprise Act 2002 is amended as follows.

(2) After subsection (2) insert—

‘(6) After section 188A (as inserted by subsection (5) above) insert—

‘(0none) After section 190 of the 2002 Act insert—

‘( 1) A director of a company must ensure—

(a) that provision is made for consumers to be reimbursed where they have
made payments, in full or in part, in respect of goods or services that the
company is unable to deliver, and

(b) that a statement of the nature of this provision is made available to
consumers and prospective consumers.

(2) A person who fails to carry out his duty under subsection (1) is guilty of an
offence under section 993 of the Companies Act 2006.’.

‘( 1) Class 3 of Schedule 3 to the Town and Country Planning (Control of
Advertisements) (England) Regulations 2007, (Classes of advertisements for
which deemed consent is granted) is amended as follows.

(2) In item 3A, after “sale”, leave out “or letting”.

(3) In item 3A(2), after both uses of “sold”, leave out “or let”.

(4) In item 3A(2), after “sale”, leave out “or letting”.

(5) In item 3A(8), after “sale”, leave out “or letting”.’.

‘( 1) Local authorities in England which enjoy day-to-day responsibility for housing
policy within their local authority area may make by-laws regulating for all or
part of the authority the display of external advertisements concerning property
lettings.

(2) If a housing authority has not specifically provided for the display of external
notices advertising a property to let then such a notice is not permitted.’.

‘( 1) It shall be an offence to display an external notice prohibited by subsection (2) of
section (Town and country planning: responsibilities of housing authorities).

(2) A person guilty of an offence under subsection (1) is liable, on summary
conviction, to a fine not exceeding level 4 on the standard scale.

(3) A person guilty of a second or subsequent offence under subsection (1) is liable,
on summary conviction, to a fine not exceeding level 5 on the standard for each
seperate such offence.’.

‘( 1) Sections (Town and country planning: Amendment of the Town and Country
Planning (Control of Advertisements) (England) Regulations 2007, Town and
country planning: responsibilities of housing authorities, and Town and country
planning: offences) come into force two months after the day on which this Act
is passed.

(2) Sections (Town and country planning: Amendment of the Town and Country
Planning (Control of Advertisements) (England) Regulations 2007, Town and
country planning: responsibilities of housing authorities, and Town and country
planning: offences) extend to England only.’.

‘The Secretary of State for Business, Innovation and Skills shall conduct a review
of how his Department can encourage local investment in local businesses, and
lay a copy of the report before the House of Commons before 1 December 2012.’.

‘( 1) Part 2 Regulation 7 of the Town and Country Planning (Control of
Advertisements) (England) Regulations 2007 is amended as follows.

(2) In item (1) delete “Secretary of State” and insert “local authority”.

(3) In item (1) delete “upon a proposal made to her by the local planning authority”.

(4) In item (1) delete “she” and insert “the local authority”.

(5) In item (2) delete “ Secretary of State” and insert “local authority”.

(6) In item (2b) delete “her” and insert “the local authority’s”.

(7) In item (3) delete “Secretary of State” and insert “local authority”.

(8) In item (4) delete “Secretary of State” and insert “local authority”.

(9) In item (5) delete “ Secretary of State” and insert “local authority”.

(10) In item (5b) delete “the local planning authority and to any other” and insert
“any”.

(11) In item (5) delete part (c).

(12) In item (5b) delete “her” and insert “the local authority”.

(13) In item (5c(i)) delete “she” and insert “the local authority”.

(14) In item (5c(i)) delete “her” and insert “the local authority’s”.

(15) In item (6) delete from “Where” to end and insert “Where the local authority
makes a direction it shall send a copy of its reasons to every person who has made
a paragraph (3) representation.”.

(16) In item (7) delete “unless the Secretary of State otherwise directs”.

‘( 1) Local authorities in England which enjoy day-to-day responsibility for housing
policy within their local authority area may make by-laws restricting for all or
part of the authority the display of external advertisements concerning property
lettings.

(2) It shall be an offence to display an external advertisement concerning property
letting in areas or cases where the Local Planning Authority has, under subsection
(1), passed a by-law prohibiting external advertisements concerning property
letting.

(3) A person found guilty of an offence under subsection (2) is liable, on summary
conviction, to a fine not exceeding level 4 on the standard scale.

(4) A person found guilty of a second or subsequent offence under subsection (2) is
liable, on summary conviction, to a fine not exceeding level 5 on the standard
scale for each such offence.’.

‘( 1) The Secretary of State must—

(a) carry out a review of the effectiveness of all existing legislation relating
to health and safety at work, and

(b) prepare and publish a report setting out the conclusions of the review.

(2) The review and report must quantify, in particular—

(a) the effectiveness of the legislation in terms of reducing deaths, injuries
and sickness in the workplace,

(b) the human cost, and full societal costs of work-related injuries, deaths
and ill-health in terms of pain and suffering, injuries, sickness and years
of life lost, and

(c) the full societal costs of the impact of the legislation including those costs
resulting from welfare and healthcare spending, and resulting from the
number of days lost in the workplace due to ill-health.

(3) Subordinate legislation under section 14A of the Interpretation Act 1978 in
respect of any provision relating to health and safety at work may not be made
until after the report has been published.’.

‘After section 413 of the Companies Act 2006 (Information about directors’
benefits: advances, credit and guarantees) insert—