Session 2014 - 15
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Other Bills before Parliament


 
 

Public Bill Committee:                               

195

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  111,  page  89,  line  26,  after “participate” insert “or vote”

 

Matthew Hancock

 

Jo Swinson

 

Clause  112,  page  90,  line  14,  after “participate” insert “and vote”

 

Matthew Hancock

 

Jo Swinson

 

Clause  113,  page  91,  line  28,  after “participate” insert “and vote”

 

Matthew Hancock

 

Jo Swinson

 

Page  92,  line  29,  leave out Clause 114

 

Member’s explanatory statement

 

This amendment indicates the Government’s intention to oppose the question that clause 114 stand

 

part. Clause 114 is being replaced by NC8.

 

Matthew Hancock

 

Jo Swinson

 

Clause  122,  page  96,  line  17,  leave out “approved the” and insert “decided whether

 

to approve the proposed voluntary”

 

Member’s explanatory statement

 

Clause 122 as drafted introduced a time limit for the challenge of the approval by creditors of an

 

individual voluntary arrangement (“IVA”). A decision may, in fact, be challenged whether or not

 

the IVA was approved, and the amendment changes clause 122 to reflect this.

 

Matthew Hancock

 

Jo Swinson

 

Clause  136,  page  119,  line  3,  leave out from “lies” to end of line 5 and insert “to an

 

employment tribunal.”


 
 

Public Bill Committee:                               

196

 

, continued

 
 

Member’s explanatory statement

 

This amendment changes the venue of appeal against a penalty for the non-payment of an

 

Employment Tribunal award or an ACAS conciliated settlement from the county court in England

 

and Wales, or the sheriff in Scotland, to an employment tribunal.

 

Matthew Hancock

 

Jo Swinson

 

Clause  136,  page  119,  line  14,  leave out “the county court or sheriff” and insert “an

 

employment tribunal”

 

Member’s explanatory statement

 

This amendment is consequential on amendment 28.

 

Matthew Hancock

 

Jo Swinson

 

Clause  139,  page  127,  line  11,  at end insert—

 

“( )    

Subsection (3) is to be disregarded for the purposes of determining any question

 

whether a contract is a contract of employment or other worker’s contract.”

 

Member’s explanatory statement

 

This amendment means that when mutuality of obligation is considered for the purpose of

 

determining the employment status of an individual working under a zero hours contract, the

 

prohibition on exclusivity terms in zero hour contracts introduced by clause 139 should be

 

ignored.

 

Matthew Hancock

 

Jo Swinson

 

Clause  145,  page  131,  line  21,  leave out “or 114”

 

Member’s explanatory statement

 

This amendment removes a reference to clause 114 from a provision in the Bill about making

 

regulations and is consequential on amendment 187.

 

Matthew Hancock

 

Jo Swinson

 

Clause  147,  page  132,  line  14,  leave out “114 and”

 

Member’s explanatory statement

 

This amendment removes a reference to clause 114 from a provision in the Bill about territorial

 

extent and is consequential on amendment 187.


 
 

Public Bill Committee:                               

197

 

, continued

 
 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  132,  line  21,  leave out “and 5 (provision of credit information)”

 

and insert “to (Sections 4 to 5: interpretation) (regulations about financial information on

 

small and medium sized businesses)”

 

Member’s explanatory statement

 

This amendment commences the power to make regulations under the new clause inserted by

 

amendment NC1 on Royal Assent (so it is treated in the same way as the power to make regulations

 

under clause 4).

 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  132,  line  22,  at end insert—

 

“( )    

in Part 5, section (Funding for free of charge early years provision);”

 

Member’s explanatory statement

 

This amendment provides that NC7 will come into force on Royal Assent.

 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  132,  line  40,  leave out sub-paragraph (iii)

 

Member’s explanatory statement

 

This amendment removes the provision that would bring clause 30 into force two months after

 

Royal Assent. Instead, it will be brought into force by commencement regulations (so that it can

 

come into force at the same time as regulations made under amendments 22 and 23).

 

Matthew Hancock

 

Jo Swinson

 

Clause  148,  page  133,  line  12,  leave out “and 79” and insert “to (Shadow directors:

 

provision for Northern Ireland)”

 

Member’s explanatory statement

 

This amendment provides that the new clause inserted by amendment NC6 will come into force 2

 

months after Royal Assent.

 

New clauses

 

Matthew Hancock

 

Jo Swinson

 

NC1

 

To move the following Clause—

 

“Small and medium sized businesses: information to finance platforms

 

(1)    

Where—

 

(a)    

a small or medium sized business has applied to a designated

 

bank for a loan or other credit facility, and

 

(b)    

the application has been unsuccessful,


 
 

Public Bill Committee:                               

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, continued

 
 

    

the Treasury may by regulations impose a duty on the bank to provide

 

specified information about the business to designated finance platforms.

 

(2)    

The regulations—

 

(a)    

must provide that the duty only applies where the business to

 

which the information relates agrees to its information being

 

provided to the designated finance platforms;

 

(b)    

may require a bank—

 

(i)    

to seek the agreement of a business for the purposes of

 

paragraph (a);

 

(ii)    

to ask the business for any of the specified information

 

that the bank does not already have;

 

(iii)    

to provide the information to the finance platforms

 

within a specified time period.

 

(3)    

The regulations may make further provision about the duty in subsection

 

(1), which may in particular include provision about—

 

(a)    

the types of loans and credit facilities that trigger the duty,

 

(b)    

the circumstances in which an application is to be considered

 

unsuccessful, and

 

(c)    

the finance platforms to which information must be provided.

 

(4)    

Where a finance platform has received information by virtue of

 

subsection (1), the Treasury may by regulations—

 

(a)    

impose a duty on the finance platform to provide specified

 

information to all finance providers requesting access to the

 

information, and

 

(b)    

impose a duty on the finance platform to provide specified

 

information about a particular business to a finance provider

 

where—

 

(i)    

the finance provider has requested information about the

 

business, and

 

(ii)    

the business has agreed to its information being provided

 

to the finance provider.

 

(5)    

Information specified for the purposes of subsection (4)(a) must be in

 

such a form that no individual business, and no person associated with the

 

business, can be identified.

 

(6)    

The regulations may provide that the duty in subsection (4)(a) or (b) does

 

not apply unless—

 

(a)    

the finance provider or business agrees to the finance platform’s

 

terms and conditions;

 

(b)    

the finance provider complies with specified requirements about

 

the use and disclosure of the information.

 

(7)    

The regulations may make further provision about the duties in

 

subsection (4)(a) and (b), including in particular provision—

 

(a)    

requiring the finance platform to provide the information within

 

a specified time period;

 

(b)    

setting out how a request by a finance provider must be made to

 

a finance platform;

 

(c)    

setting out how a business may indicate agreement for the

 

purposes of subsection (4)(b)(ii);


 
 

Public Bill Committee:                               

199

 

, continued

 
 

(d)    

about the time period for which information must be kept by the

 

finance platform;

 

(e)    

about the removal of information from the finance platform.

 

(8)    

The regulations may make provision—

 

(a)    

prohibiting finance platforms from charging fees to small and

 

medium sized businesses, or

 

(b)    

permitting finance platforms to charge fees to small and medium

 

sized businesses.

 

(9)    

The regulations must make provision for the designation of banks and

 

finance platforms by the Treasury, and the regulations may in particular

 

provide for—

 

(a)    

conditions that must be met for a bank or finance platform to be

 

designated;

 

(b)    

considerations that the Treasury may take into account before

 

deciding whether to designate a bank or finance platform;

 

(c)    

the Treasury to consider the advice of another person before

 

making a designation;

 

(d)    

the procedure for designating a bank or finance platform;

 

(e)    

how the list of designated banks and finance platforms must be

 

published;

 

(f)    

the revocation of a designation.

 

(10)    

In this section “specified” means specified or described in the

 

regulations.”

 

Member’s explanatory statement

 

This new clause enables the Treasury to make regulations requiring certain banks to pass

 

information about small and medium sized businesses which make unsuccessful applications for

 

credit to online platforms, and requiring those platforms to share the information with finance

 

providers. The provision of information would be subject to the agreement of the business.

 


 

Matthew Hancock

 

Jo Swinson

 

NC2

 

To move the following Clause—

 

“Sections 4 to 5: interpretation

 

(1)    

For the purposes of sections 4 to 5, a business is a small or medium sized

 

business if—

 

(a)    

it has an annual turnover of less than £25 million,

 

(b)    

it carries out commercial activities,

 

(c)    

it does not carry out regulated activities as its principal activity,

 

and

 

(d)    

it is not owned or controlled by a public authority.

 

    

Regulations under those sections may make further provision for the

 

purposes of determining which businesses they apply to (including

 

provision about the calculation of turnover and the determination of

 

control).


 
 

Public Bill Committee:                               

200

 

, continued

 
 

(2)    

In sections 4 to 5 and this section—

 

“designated bank” means a bank that has been designated by the Treasury

 

by virtue of section 4(7) or (Small and medium sized businesses:

 

information to finance platforms)(9);

 

“designated credit reference agency” means a credit reference agency that

 

has been designated by the Treasury by virtue of section 4(7);

 

“designated finance platform” means a finance platform that has been

 

designated by the Treasury by virtue of section (Small and medium sized

 

businesses: information to finance platforms)(9);

 

“finance platform” means a person that provides a service for the exchange

 

of information between finance providers and businesses that require

 

finance;

 

“finance provider” means a body corporate that lends money or provides

 

credit, or arranges or facilitates the provision of debt or equity finance, in

 

the course of a business (and regulations under sections 4 and (Small and

 

medium sized businesses: information to finance platforms) may make

 

further provision for the purpose of determining which finance providers

 

they apply to);

 

“public authority” has the same meaning as in the Freedom of Information

 

Act 2000 (see section 3 of that Act);

 

“regulated activities” has the same meaning as in the Financial Services and

 

Markets Act 2000 (see section 22 of that Act);

 

“subordinate legislation” has the same meaning as in the Interpretation Act

 

1978 (see section 21 of that Act).

 

(3)    

The Treasury may by regulations change the figure for the time being

 

specified in subsection (1)(a).

 

(4)    

Before making regulations under subsection (3) the Treasury must

 

consult such persons as they consider appropriate.

 

(5)    

Regulations under subsection (3) are subject to negative resolution

 

procedure.”

 

Member’s explanatory statement

 

This new clause defines terms used in clauses 4, 5, the new clause in amendment NC1 and this new

 

clause.

 


 

Matthew Hancock

 

Jo Swinson

 

NC3

 

To move the following Clause—

 

“Small and micro business regulations: further provision

 

(1)    

The small and micro business regulations may make provision—

 

(a)    

about the calculation of the headcount of staff, turnover and

 

balance sheet total of an undertaking, including provision about

 

the period (“assessment period”) in respect of which they are to

 

be calculated;

 

(b)    

for the headcount of staff, turnover and balance sheet total, or a

 

proportion of such, of any undertaking which satisfies such


 
 

Public Bill Committee:                               

201

 

, continued

 
 

conditions as may be prescribed in relation to another

 

undertaking (the “principal undertaking”) to be treated as part of

 

the principal undertaking’s headcount of staff, turnover and

 

balance sheet total.

 

(2)    

Conditions which may be prescribed under subsection (1)(b) include, in

 

particular, conditions relating to—

 

(a)    

the extent of ownership (whether direct or indirect) of one

 

undertaking by one or more other undertakings;

 

(b)    

the degree of control exercised (whether directly or indirectly)

 

by one or more undertakings over another.

 

(3)    

The small and micro business regulations may make provision about—

 

(a)    

the assessment period or periods in respect of which an

 

undertaking must meet the small business size conditions or the

 

micro business size conditions in order to be a small business or

 

(as the case may be) micro business;

 

(b)    

the circumstances in which an undertaking which has been

 

established for less than a complete assessment period is to be

 

regarded as meeting the small business size conditions or the

 

micro business size conditions.

 

(4)    

Provision made by virtue of subsection (3) may, in particular, provide

 

that—

 

(a)    

an undertaking is a small business or a micro business if it meets

 

the relevant size conditions in respect of each of its two most

 

recent assessment periods;

 

(b)    

where there has been only one complete assessment period since

 

an undertaking was established, the undertaking is a small

 

business or a micro business if it meets the relevant size

 

conditions in respect of that period;

 

(c)    

an undertaking which is a small business or a micro business

 

does not cease to be such unless it fails to meet the relevant size

 

conditions in respect of two consecutive assessment periods.

 

(5)    

The small and micro business regulations may make provision for one

 

undertaking (“undertaking A”) which satisfies such conditions as may be

 

prescribed in relation to another undertaking (“undertaking B”), to be

 

treated as being undertaking B (whether or not undertaking B is still in

 

existence) for such purposes as may be prescribed.

 

(6)    

Conditions which may be prescribed under subsection (5) include, in

 

particular, conditions relating to—

 

(a)    

the transfer of a business from undertaking B to undertaking A;

 

(b)    

the carrying on by undertaking A of a business on undertaking B

 

ceasing to carry on the activities, or most of the activities, of

 

which the business consists in consequence of arrangements

 

involving both undertakings;

 

(c)    

the existence of some other connection between undertaking A

 

and undertaking B.

 

(7)    

The purposes which may be prescribed under subsection (5) include, in

 

particular—

 

(a)    

determining the date on which undertaking A was established

 

(and so the number of assessment periods there have been since

 

it was established);


 
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