House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

821

House of Commons

Notices of Amendments

given on

Thursday 13 November 2014

For other Amendment(s) see the following page(s) of Supplement to Votes:

801-02, 803-05, 809-11 and 813-15

Consideration of Bill

Small Business, Enterprise and Employment Bill, As Amended

Mr Jonathan Djanogly

25

Schedule  3,  page  160,  line  12,  at end insert—

“(5A)
For the purposes of Part 21A and Schedule 3, “proper purpose” shall mean a

purpose reasonably required by—

(a)
a national security agency for safeguarding national security or personal

safety; or

(b)
HM Revenue and Customs for the conduct of tax investigations.”

Jonathan Djanogly

Mr David Nuttall

26

Schedule  3,  page  160,  line  12,  at end insert—

“(5A)
For the purposes of Part 21A, “proper purpose” shall mean a purpose reasonably

required by—

(a)
a national security agency for safeguarding national security or personal

safety; and

(b)
HM Revenue and Customs for the conduct of tax investigations.”

Secretary Vince Cable

NC5

To move the following Clause—


“Independent Complaints Commissioner: reporting duty

(1)
Section 87 of the Financial Services Act 2012 (investigation of complaints

against regulators) is amended as follows.

(2)
After subsection (9) insert—

“(9A)
The complaints scheme must provide—

Notices of Amendments: 13 November 2014
822

Small Business, Enterprise and Employment Bill, continued

(a)
for the investigator to prepare an annual report on its

investigations under the scheme, to publish it and send a copy of

it to each regulator and to the Treasury;

(b)
for each regulator to respond to any recommendations or

criticisms relating to it in the report, to publish the response and

send a copy of it to the investigator and the Treasury;

(c)
for the Treasury to lay the annual report and any response before

Parliament.

(9B)
The complaints scheme may make provision about the period to which

each annual report must relate (“the reporting period”) and the contents

of the report and must in particular provide for it to include—

(a)
information concerning any general trends emerging from the

investigations undertaken during the reporting period;

(b)
any recommendations which the investigator considers

appropriate as to the steps a regulator should take in response to

such trends;

(c)
a review of the effectiveness during the reporting period of the

procedures (both formal and informal) of each regulator for

handling and resolving complaints which have been investigated

by the investigator during the reporting period;

(d)
an assessment of the extent to which those procedures were

accessible and fair, including where appropriate an assessment in

relation to different categories of complainant;

(e)
any recommendations about how those procedures, or the way in

which they are operated, could be improved.”

Member’s explanatory statement

This amendment requires the scheme established by the financial services regulators for the

investigation of complaints to provide for the investigator to produce an annual report on its

investigations. The report must describe any general trends emerging from such investigations,

and assess the accessibility and fairness of the regulators’ handling of the complaints investigated.

Secretary Vince Cable

NC6

To move the following Clause—


“Power to grant exemptions from Pubs Code

(1)
The Secretary of State may by regulations provide that the Pubs Code does not,

or specified provisions of the Pubs Code do not, apply in relation to—

(a)
the dealings of pub-owning businesses—

(i)
with tied pub tenants of a specified description, or

(ii)
in relation to tied pubs of a specified description;

(b)
the dealings of a specified pub-owning business or pub-owning

businesses of a specified description—

(i)
with their tied pub tenants or tied pub tenants of a specified

description, or

(ii)
in relation to their tied pubs or tied pubs of a specified

description.

(2)
Regulations under subsection (1) may, in particular, specify a description of pub-

owning businesses or tied pub tenants by reference to—

(a)
the nature of the tenancy or licence, or

Notices of Amendments: 13 November 2014
823

Small Business, Enterprise and Employment Bill, continued

(b)
the nature of any other contractual agreement entered (or to be entered)

into by the tied pub tenant with the pub-owning business, or a person

nominated by that business, in connection with the tenancy or licence.

(3)
The regulations may provide for circumstances in which a tied pub of a specified

description is to be disregarded for the purposes of section 64(2) and (3)

(determining whether a business is a large pub-owning business).

(4)
In this section “specified” means specified in regulations.”

Member’s explanatory statement

This amendment gives the Secretary of State a power to make regulations exempting from the Pubs

Code dealings with a particular type of tenant, or in relation to particular types of pub premises.

The regulations may set out circumstances in which a particular tied pub is not counted for the

purpose of calculating whether a company is a “large pub-owning business”.

Secretary Vince Cable

27

Clause  20,  page  20,  line  19,  at end insert—

“( )
The Secretary of State must lay each thing published under subsection (1) or (3)

before Parliament.”

Member’s explanatory statement

This amendment requires the business impact target, the interim target, the determination of

qualifying regulatory provisions and the methodology for assessing the target to be laid before

Parliament (in addition to the requirement for these things to be published which is currently

required by the clauses).

Secretary Vince Cable

28

Clause  25,  page  25,  line  10,  after “lay” insert “the thing as amended and”

Member’s explanatory statement

This amendment requires any changes made by the Secretary of State to the business impact target,

the interim target, the determination of qualifying regulatory provisions and the methodology for

assessing the target, to be laid before Parliament.

Secretary Vince Cable

29

Clause  40,  page  37,  line  29,  at end insert—

“(5A)
The Pubs Code may require large pub-owning businesses to ensure that any rent

assessment or assessment of money payable in lieu of rent which they provide to

their tied pub tenants has been certified by a person of a description specified in

the Pubs Code as having been conducted in accordance with the provisions of any

documents specified for the purposes of subsection (5)(d).”

Member’s explanatory statement

This amendment, and amendments 30 and 31, provides that the Pubs Code may require pub-

owning businesses with 500 or more tied pubs to have rent assessments signed-off as defined in the

Code. The intention is that the Code will specify a RICS qualified valuer and RICS guidance. This

includes assessments of money payable in lieu of rent, such as where a tied agreement charges the

tenant via a percentage of turnover rather than through a rent.

Secretary Vince Cable

30

Clause  40,  page  37,  line  37,  leave out “subsection” and insert “subsections”

Member’s explanatory statement

See amendment 29.

Notices of Amendments: 13 November 2014
824

Small Business, Enterprise and Employment Bill, continued

Secretary Vince Cable

31

Clause  40,  page  37,  line  38,  at end insert “and (5A).

(7)
In specifying a description of person under subsection (5A) (or subsection (6)(c)

so far as it relates to subsection (5A)) the Secretary of State must secure that the

person—

(a)
is independent from the large pub-owning business concerned;

(b)
has appropriate qualifications;

(c)
is a member of an appropriate professional body.”

Member’s explanatory statement

See amendment 29.

Secretary Vince Cable

32

Clause  40,  page  37,  line  38,  at end insert—

“(8)
The Pubs Code may require large pub-owning businesses to—

(a)
appoint one of their employees to monitor their compliance with the Pubs

Code;

(b)
prepare an annual report on their compliance with the Pubs Code.”

Member’s explanatory statement

This amendment means that only those businesses with more than 500 tied pubs may be required

by the Pubs Code to have a Code Compliance Officer and to produce an annual compliance report.

Secretary Vince Cable

33

Clause  40,  page  37,  line  38,  at end insert—

“(9)
Subsections (5A), (6) and (8) do not restrict the recommendations that may be

made by the Adjudicator under section 51 in relation to a pub-owning business

that is not a large pub-owning business.”

Member’s explanatory statement

This amendment allows the Pubs Code Adjudicator to make recommendations to businesses with

fewer than 500 tied pubs about actions that such a business should take, even where the equivalent

requirements of the Pubs Code may apply only to large pub-owning businesses.

Secretary Vince Cable

34

Clause  42,  page  38,  line  21,  after “assessment” insert “or assessment of money

payable by the tenant in lieu of rent”

Member’s explanatory statement

This amendment, and amendment 35, ensures that references to rent assessments also include

assessments of money payable in lieu of rent, such as where a tied agreement charges the tenant

via a percentage of turnover rather than through a rent

Secretary Vince Cable

35

Clause  42,  page  38,  line  24,  after “rent” insert “or money payable in lieu of rent”

Member’s explanatory statement

See amendment 34.

Notices of Amendments: 13 November 2014
825

Small Business, Enterprise and Employment Bill, continued

Secretary Vince Cable

36

Clause  43,  page  39,  line  5,  after “business” insert “concerned”

Member’s explanatory statement

This amendment is related to amendment 42.

Secretary Vince Cable

37

Clause  43,  page  39,  line  6,  leave out subsection (2)

Member’s explanatory statement

This amendment is related to amendment 42.

Secretary Vince Cable

38

Clause  63,  page  47,  line  10,  at end insert “or licence”

Member’s explanatory statement

This amendment, and amendments 39 and 47 to 53, ensure that tied agreements are subject to the

Pubs Code whether the pub premises are occupied under a tenancy or a licence to occupy.

Secretary Vince Cable

39

Clause  63,  page  47,  line  11,  after “tenant” insert “or licensee”

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

40

Clause  63,  page  47,  line  11,  leave out from second “is” to end of line 13 and insert

“subject to a contractual obligation that some or all of the alcohol to be sold at the

premises is supplied by—

(a)
the landlord or a person who is a group undertaking in relation to the

landlord, or

(b)
a person nominated by the landlord or by a person who is a group

undertaking in relation to the landlord.”

Member’s explanatory statement

This amendment, and amendment 56, specifies that a tied agreement is one where the tenant is

subject to a contractual obligation that some or all of the alcohol to be sold at the premises must

be supplied by the pub-owning business or a person nominated by the business.

Secretary Vince Cable

41

Clause  64,  page  47,  line  18,  leave out “500” and insert “one”

Member’s explanatory statement

This amendment, and amendments 43 and 44, reverse amendments made at committee and bring

pub-owning businesses with fewer than 500 tied pubs back into the scope of the Pubs Code.

Secretary Vince Cable

42

Clause  64,  page  47,  line  19,  at end insert—

“(1A)
But regulations may specify circumstances in which a person who is a group

undertaking in relation to such a landlord—

(a)
is to be treated, or

(b)
may if the Adjudicator so determines be treated,

Notices of Amendments: 13 November 2014
826

Small Business, Enterprise and Employment Bill, continued


as a pub-owning business (as well as or instead of the landlord) for the purposes

of any provision of or made under this Part.”

Member’s explanatory statement

This amendment, together with amendments 36, 37, 45, 46 and 54, ensures that the definition of a

pub-owning business can be sufficiently flexible to encompass adequately any parent or subsidiary

companies.

Secretary Vince Cable

43

Clause  64,  page  47,  line  21,  leave out second “pub-owning” and insert “large pub-

owning”

Member’s explanatory statement

See amendment 41.

Secretary Vince Cable

44

Clause  64,  page  47,  line  24,  leave out second “pub-owning” and insert “large pub-

owning”

Member’s explanatory statement

See amendment 41

Secretary Vince Cable

45

Clause  64,  page  47,  leave out from “pubs” in line 27 to the end of line 30 and insert “of

which a pub-owning business (“B”) is the landlord, any tied pub the landlord of which is

a person who is a group undertaking in relation to B is treated as a tied pub of which B is

the landlord.”

Member’s explanatory statement

See amendment 42.

Secretary Vince Cable

46

Clause  64,  page  47,  line  37,  leave out subsection (6)

Member’s explanatory statement

See amendment 42.

Secretary Vince Cable

47

Clause  65,  page  47,  line  41,  after “tenant” insert “or licensee”

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

48

Clause  65,  page  48,  line  1,  at end insert “or licence to occupy”

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

49

Clause  65,  page  48,  line  5,  leave out “immediate landlord” and insert “—

(a)
in relation to a tied pub occupied under a tenancy, the immediate

landlord, or

(b)
in relation to a tied pub occupied under a licence, the licensor;

Notices of Amendments: 13 November 2014
827

Small Business, Enterprise and Employment Bill, continued

“licence” means a licence to occupy premises; and “licensee” is to be

construed accordingly;”

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

50

Clause  65,  page  48,  leave out lines 13 and 14

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

51

Clause  65,  page  48,  line  15,  after second “the” insert “tied pub”

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

52

Clause  65,  page  48,  line  16,  after second “the” insert “tied pub”

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

53

Clause  65,  page  48,  line  17,  after third “the” insert “tied pub”

Member’s explanatory statement

See amendment 38.

Secretary Vince Cable

54

Clause  66,  page  48,  line  25,  at end insert—

““group undertaking” has the meaning given by section 1161 of the

Companies Act 2006;”

Member’s explanatory statement

See amendment 42.

Secretary Vince Cable

55

Clause  66,  page  48,  line  26,  leave out from “rent assessment”” to the end of line 30

and insert “has such meaning as may be prescribed in regulations made by the Secretary

of State”

Member’s explanatory statement

This amendment gives the Secretary of State a power to define a parallel rent assessment in

regulations in order to ensure that there is flexibility in how the Pubs Code deals with parallel rent

assessments for different types of tied pub agreements.

Secretary Vince Cable

56

Clause  66,  page  48,  line  33,  leave out paragraph (a) and insert—

“(a)
that a product to be sold at the tied pub must be supplied by—

(i)
the landlord of the tied pub or a person who is a group

undertaking in relation to the landlord, or



© Parliamentary copyright	Revised 14 November 2014