House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Notices of Amendments: 29 November 2013
35

Water Bill, continued

Dan Rogerson

40


Clause  37,  page  74,  line  46,  leave out from ‘exercised’ to end of line 47 and

insert—

‘(i)
in relation to a relevant undertaker whose area is wholly or

mainly in England,

(ii)
in relation to a water supply licensee using the supply system of

such an undertaker (see section 17B), or

(iii)
in relation to a sewerage licensee using the sewerage system of

such an undertaker (see section 17BA);’.

Dan Rogerson

41


Clause  37,  page  74,  line  49,  leave out from ‘exercised’ to end of line 50 and

insert—

‘(i)
in relation to a relevant undertaker whose area is wholly or

mainly in Wales, or

(ii)
in relation to a water supply licensee using the supply system of

such an undertaker (see section 17B);’.

Dan Rogerson

42


Clause  41,  page  77,  line  37,  at end insert—

‘( )
The Water Resources Act 1991 is amended as follows.’.

Dan Rogerson

43


Clause  41,  page  77,  line  38,  leave out ‘of the Water Resources Act 1991’.

Dan Rogerson

44


Clause  41,  page  77,  line  41,  at end insert—

‘( )
Section 61A (recovery of compensation from new licence-holder) is repealed.’.

Dan Rogerson

1


Page  89,  line  3,  leave out Clause 47.

Notices of Amendments: 29 November 2013
36

Water Bill, continued

Dan Rogerson

2


Clause  56,  page  91,  line  22,  at end insert—

‘(za)
section (Disclosure of information: preparatory purposes);’.

New Clauses

The Flood Reinsurance Scheme

Dan Rogerson

NC1


To move the following Clause:—

‘(1)
For the purposes of this Part, the Flood Reinsurance Scheme is a scheme which—

(a)
is established for the purpose mentioned in subsection (2), and

(b)
is designated for the purposes of this Part by regulations made by the

Secretary of State.

(2)
The purpose referred to in subsection (1)(a) is the purpose of providing

reinsurance to relevant insurers in respect of such risks relating to flooding as are

identified by the scheme, in such a way as to—

(a)
promote the availability and affordability of flood insurance for

household premises while minimising the costs of doing so, and

(b)
manage, over the period of operation of the scheme, the transition to risk-

reflective pricing of flood insurance for household premises.

(3)
Subsection (5) applies where the terms of the FR Scheme governing the

availability of reinsurance under the FR Scheme for an insurance policy include

a requirement as mentioned in subsection (4).

(4)
The requirement is that the part of the premium for the policy which is

attributable to risks relating to flooding does not exceed a specified amount (“the

eligibility threshold”).

(5)
The Secretary of State may by regulations make provision as to the level of the

eligibility threshold, and may make different provision for different purposes.

(6)
Regulations under subsection (5) may, in particular, make different provision for

different insurance policies by reference to the value of the household premises

to which a policy relates.

(7)
In this Part, the Flood Reinsurance Scheme is called “the FR Scheme”.’.

Scheme administrator

Dan Rogerson

NC2


To move the following Clause:—

‘(1)
The FR Scheme is to be administered by a body designated by regulations made

by the Secretary of State.

Notices of Amendments: 29 November 2013
37

Water Bill, continued

(2)
The Secretary of State may under subsection (1) designate a company registered

under the Companies Act 2006 or a body of another kind.

(3)
In this Part, the body designated under subsection (1) is called “the FR Scheme

administrator”.’.

Scheme funding

Dan Rogerson

NC3


To move the following Clause:—

‘(1)
The Secretary of State may, with the consent of the Treasury, make regulations

requiring relevant insurers to pay to the FR Scheme administrator—

(a)
a levy, the amount and timing of which is to be determined in accordance

with the regulations;

(b)
such further amounts, by way of levy or contribution, as may be

requested by the FR Scheme administrator from time to time in

accordance with the FR Scheme.

(2)
Regulations under subsection (1) may make provision as to—

(a)
the circumstances in which a request under subsection (1)(b) may be

made;

(b)
the amounts that may be requested under subsection (1)(b).

(3)
The Secretary of State may by regulations make provision for amounts payable

under subsection (1) to be recoverable summarily (or in Scotland recoverable) as

a civil debt.

(4)
The Secretary of State may by regulations make provision as to the application of

any amounts paid under subsection (1).

(5)
The Secretary of State may by regulations provide that, where such conditions as

are specified in the regulations as regards the reserves of the FR Scheme are

satisfied, the FR Scheme administrator must pay to the Secretary of State an

amount of the reserves to be determined in accordance with the regulations.

(6)
Regulations under subsection (5) may—

(a)
define “reserves”;

(b)
make provision about determining the amount of the reserves of the FR

Scheme.

(7)
Before making regulations under subsection (5), the Secretary of State must

consult the Prudential Regulation Authority.’.

Notices of Amendments: 29 November 2013
38

Water Bill, continued

Scheme administration

Dan Rogerson

NC4


To move the following Clause:—

‘(1)
The Secretary of State may by regulations make provision in connection with the

administration of the FR Scheme.

(2)
Regulations under subsection (1) may require the FR Scheme administrator to

have regard to the following in discharging its functions—

(a)
the need to ensure economy, efficiency and effectiveness in the discharge

of those functions,

(b)
the need to act in the public interest,

(c)
the need to ensure propriety and regularity in the operation of the FR

Scheme, and

(d)
the need to manage, over the period of operation of the FR Scheme, the

transition to risk-reflective pricing of flood insurance for household

premises.

(3)
Regulations under subsection (1) may require the FR Scheme administrator to

produce and publish, in accordance with the regulations, a plan for achieving the

transition mentioned in subsection (2)(d).

(4)
Regulations under subsection (1) may—

(a)
limit, to any extent, the power of the FR Scheme administrator to borrow

money or otherwise incur debt;

(b)
make provision about the reserves of the FR Scheme, including

limitations on draw downs and transfers;

(c)
require the FR Scheme administrator to take steps to limit the overall net

losses that may be incurred by the FR Scheme in any year to an amount

specified in or determined in accordance with the regulations;

(d)
provide for the form and contents of the FR Scheme’s accounts;

(e)
provide for a copy of the audited FR Scheme’s accounts and a copy of the

auditor’s report on those accounts to be laid before Parliament;

(f)
provide for the Comptroller and Auditor General to examine—

(i)
the economy, efficiency and effectiveness with which the FR

Scheme administrator has used resources in discharging its

functions, or

(ii)
the propriety and regularity in the operation of the FR Scheme,


and for a report on any such examination to be laid before Parliament;

(g)
provide that for the purposes of an examination under paragraph (f)—

(i)
the Comptroller and Auditor General is to have a right of access

at all reasonable times to any of the documents relating to the FR

Scheme, and

(ii)
a person who holds or has control of any of those documents is

to give the Comptroller and Auditor General any assistance,

information or explanation which the Comptroller and Auditor

General requires in relation to any of those documents.

(5)
Regulations under subsection (1) may—

(a)
require the FR Scheme administrator to designate an individual of a

description specified in the regulations as the responsible officer of the

FR Scheme;

(b)
provide for the responsible officer to have such responsibilities in respect

of—

Notices of Amendments: 29 November 2013
39

Water Bill, continued

(i)
the FR Scheme’s finances,

(ii)
the FR Scheme’s accounts,

(iii)
accountability to Parliament for the economy, efficiency and

effectiveness with which the FR Scheme uses resources in

discharging its functions;

(iv)
accountability to Parliament for propriety and regularity in the

operation of the FR Scheme, and

(v)
examinations and reports under subsection (4)(f),


as are specified in the regulations.

(6)
Regulations under subsection (1) may make provision about the disclosure of

information required for the purposes of the FR Scheme and may, in particular—

(a)
as regards information which is held for council tax purposes by the

Valuation Office of Her Majesty’s Revenue and Customs, make

provision—

(i)
for the supply of such information to the FR Scheme

administrator, to relevant insurers and to such other persons as

may be specified in the regulations;

(ii)
for any such supply to be subject to such conditions as may be

specified in the regulations;

(iii)
making it an offence for a person to fail to comply with any such

condition, subject to any defence specified in the regulations;

(b)
require relevant insurers to supply to the FR Scheme administrator such

information as it may request in relation to insurance policies issued by

them.

(7)
Regulations under subsection (1) may provide for the supply by the FR Scheme

administrator of information held by it in connection with the FR Scheme to—

(a)
the Environment Agency,

(b)
the Scottish Environment Protection Agency,

(c)
the Natural Resources Body for Wales,

(d)
the Department of Agriculture and Rural Development in Northern

Ireland, or

(e)
such other body as may be specified in the regulations.

(8)
Regulations under subsection (1) may provide for the supply by the FR Scheme

administrator of information held by it in connection with the FR Scheme to the

Secretary of State for purposes relating to government accounting.

(9)
Subsections (2) to (8) are not exhaustive of what may be done under subsection

(1).

(10)
In this section, “the FR Scheme’s accounts” means the accounts for a financial

year of the FR Scheme prepared by the FR Scheme administrator in respect of the

FR Scheme.’.

Replacement of the scheme or administrator

Dan Rogerson

NC5


To move the following Clause:—

‘(1)
Where regulations under section (The Flood Reinsurance Scheme) replace the FR

Scheme by revoking a designation and making a new designation, the regulations

Notices of Amendments: 29 November 2013
40

Water Bill, continued

may make such provision as the Secretary of State thinks fit in connection with

the replacement of the old FR scheme with the new FR scheme.

(2)
Where regulations under section (Scheme administrator) replace the FR Scheme

administrator by revoking a designation and making a new designation, the

regulations may make provision for the transfer of property, rights and liabilities

relating to the FR Scheme from the old administrator to the new administrator.’.

Disclosure of information: preparatory purposes

Dan Rogerson

NC6


To move the following Clause:—

‘(1)
The Secretary of State may by regulations make provision about the disclosure of

HMRC council tax information in connection with such scheme as may be

established and designated in accordance with section (The Flood Reinsurance

Scheme).

(2)
In this section “HMRC council tax information” means information which is held

for council tax purposes by the Valuation Office of Her Majesty’s Revenue and

Customs.

(3)
Regulations under subsection (1) may, in particular, make provision—

(a)
for the supply of HMRC council tax information to such persons, or

descriptions of persons, as may be specified in the regulations;

(b)
for any such supply to be subject to such conditions as may be specified

in the regulations,

(c)
making it an offence for a person to fail to comply with any such

condition, subject to any defence specified in the regulations;

(d)
about the destruction, in such circumstances as may be specified in the

regulations, of records of any HMRC council tax information obtained

by virtue of the regulations.’.

Flood insurance obligations

Dan Rogerson

NC7


To move the following Clause:—

‘(1)
The Secretary of State may by regulations require a relevant insurer to issue in a

prescribed period insurance policies that provide cover against a prescribed

description of risk for a prescribed number of registered premises.

(2)
The regulations may prescribe different numbers of registered premises for

different descriptions of risk.

(3)
The descriptions of risks that may be prescribed are those relating to the effects

of flooding.

(4)
The regulations may provide for a prescribed number relating to a relevant insurer

to be determined by reference to factors that include in particular—

Notices of Amendments: 29 November 2013
41

Water Bill, continued

(a)
a target number (see section (Flood insurance obligations: target

number));

(b)
the relevant insurer’s share of insurance business of a prescribed

description.

(5)
The regulations may—

(a)
make provision about determining the size of a relevant insurer’s share

of insurance business of a prescribed description;

(b)
provide for a relevant insurer to be exempt from the obligation described

in subsection (1) in prescribed circumstances, whether wholly or so far as

regards a particular description of risk, including circumstances relating

to the amount of insurance business done by the relevant insurer;

(c)
make provision about the circumstances in which a relevant insurer

ceases to be subject to the obligation described in subsection (1), whether

wholly or so far as regards a particular description of risk;

(d)
make provision about the cases in which issuing an insurance policy is

not to count towards discharging an obligation imposed on a relevant

insurer by the regulations, including cases in which an insurance policy

is not to count because of the content of its terms;

(e)
make provision for allowing an insurance policy issued by another

insurer to count towards the discharge of an obligation to issue a number

of insurance policies imposed on a relevant insurer by the regulations;

(f)
make provision about determining the number of registered premises for

which a relevant insurer has issued insurance policies, including

provision for varying, by reference to the risk band applicable to the

particular registered premises, the extent to which insuring those

premises counts in determining that number.

(6)
Provision under subsection (5)(a) may require an insurer, in determining the

insurer’s share of insurance business of a prescribed description, to use

information about that insurance business held by—

(a)
the Secretary of State,

(b)
a person acting on behalf of the Secretary of State, or

(c)
the FCA.

(7)
Subsection (5)(e) is not to be taken as requiring a change in the person who is the

insurer in relation to an insurance policy.

(8)
Regulations under this section may include provision in respect of cases where an

insurer has not provided such information as is required by regulations under

section (Flood insurance obligations: information) including—

(a)
provision for determining whether the insurer is a relevant insurer,

(b)
provision for determining whether an exemption applies, and

(c)
provision for determining what share of insurance business of a

prescribed description the insurer is to be treated as having.

(9)
Before making regulations under this section, the Secretary of State must consult

such persons as the Secretary of State considers appropriate.

(10)
In this section “prescribed” means specified in or determined in accordance with

regulations under this section.’.



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