Session 2014 - 15
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801

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Thursday 6 November 2014

 

Consideration of Bill


 

Small Business, Enterprise and Employment Bill, As Amended


 

Debbie Abrahams

 

NC1

 

To move the following Clause

 

         

“Payment practices: retention of monies

 

(1)    

The Secretary of State may by regulations impose requirements on certain

 

companies to publish information about their policies, practices and performance

 

in holding, safeguarding and releasing sums withheld by, or in behalf of, a payer

 

from monies which would otherwise be due under a contract, the effect of which

 

would provide the payer with security for the current and future performance by

 

the payee of any or all of the payee’s obligations under the contract (“retention

 

monies”).

 

(2)    

The regulations under subsection (2) may prescribe—

 

(a)    

the companies or type of companies to which the regulations apply;

 

(b)    

the information required to be published;

 

(c)    

the intervals at which, and format and manner in which, publication must

 

take place; and

 

(d)    

the type of description of contractual provision to which the regulations

 

apply.

 

(3)    

The restrictions on regulations in subsection (3) of section 3 of this Act shall

 

apply to regulations made under subsection (1) of this section.

 

(4)    

The Secretary of State shall arrange a review of the operation of the type of

 

contractual provisions mentioned in subsection (1) after a period of 18 months

 

following the coming into force of the first regulations made under subsection (1).

 

He shall lay a copy of the report of the review before each House of Parliament.

 

(5)    

The review provided for under subsection (3) may make recommendations for

 

requirements and obligations to be imposed upon certain types or descriptions of

 

companies in relation to the practice of retaining monies as described in

 

subsection (1). After public consultation, the Secretary of State may by

 

regulations impose such requirements and obligations on prescribed companies

 

as were recommended by the review, in whole or in part and with such

 

amendments as the Secretary of State believes to be required in order to—

 

(a)    

ensure that the practice of withholding retention monies does not give

 

rise to unfair treatment of payees;


 
 

Notices of Amendments:                               

802

 

, continued

 
 

(b)    

provide assurance that retention monies are held securely; and

 

(c)    

ensure that the position of a payee company from whom retention monies

 

are being withheld is protected when a payer company becomes

 

insolvent.”

 


 
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Revised 7 November 2014