House of Commons Amendments

Session 2014 - 15
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Other Bills before Parliament

835

House of Commons

Notices of Amendments

given up to and including

Friday 14 November 2014

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Consideration of Bill

Small Business, Enterprise and Employment Bill, As Amended

new clauseS

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—

(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

Notices of Amendments: 14 November 2014
836

Small Business, Enterprise and Employment Bill, continued

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

(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”.

Notices of Amendments: 14 November 2014
837

Small Business, Enterprise and Employment Bill, continued

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;

(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.”

Notices of Amendments: 14 November 2014
838

Small Business, Enterprise and Employment Bill, continued

Greg Mulholland

Mr Adrian Bailey

Mr Brian Binley

Caroline Lucas

Peter Aldous

Tim Farron

Grahame M. Morris

Philip Davies

Mike Crockart

Paul Murphy

Mr John Leech

Martin Horwood

Mr Clive Betts

Andrew Bridgen

Mr David Ward

Paul Flynn

Andrew Percy

Dr Julian Huppert

Mrs Mary Glindon

Sir Nick Harvey

Fiona O’Donnell

Mr Mark Williams

Mark Hunter

Mr Stewart Jackson

Mr Adrian Sanders

John Pugh

Mr Mike Hancock

Mr David Nuttall

John Hemming

Charlotte Leslie

Mr Frank Field

Barbara Keeley

Mr David Anderson

Neil Carmichael

Sir Alan Meale

Jason McCartney

Paul Burstow

Mr Michael Thornton

Ian Swales

John Healey

Jackie Doyle-Price

Mike Gapes

Mr Dennis Skinner

Roger Williams

Sir Peter Bottomley

Annette Brooke

Mr Jeremy Browne

Mr Brian H. Donohoe

Jenny Willott

Hugh Bayley

Sir Edward Leigh

Rebecca Harris

Ann McKechin

Karl McCartney

Mr Andrew Smith

Mr Elfyn Llwyd

NC2

To move the following Clause—


“Pubs code: market rent only option for large pub-owning businesses

(1)
The Pubs Code shall include a Market Rent Only Option to be provided by large

pub-owning businesses in respect of their tenants and leaseholders.

(2)
A Market Rent Only Option means the right of the tenant, or leaseholder, of a pub

owned by a large pub-owning business, to be offered such tenancy or lease in

exchange for an independently assessed market rent paid to the pub-owning

business and, for the avoidance of doubt, not thereafter being bound by “a tie”,

meaning an agreement meeting, in whole or in part, Condition D as defined in

section 63(5) of this Act (obligation to buy from the landlord, or from a person

nominated by the landlord, some or all of the alcohol to be sold at the premises).

(3)
For the purposes of this section, the definition of Condition D in subsection (2) is

to be interpreted to include an obligation to buy or contract for goods and services

other than alcohol.

(4)
For the purposes of this section, the definition of a “large pub-owning business”

is a business which, for a period of at least six months in the previous financial

year, was the landlord of—

(a)
500 or more pubs (of any description); and

(b)
one or more tenanted or leased pub.

(5)
The Pubs Code may include provisions to permit a brewery which qualifies as a

large pub-owning business to continue to require that specified brands produced

by that brewery (required products) are sold within its tenanted or leased pubs—

provided that such tenants and leaseholders are free to purchase such required

products from any supplier.

(6)
The Pubs Code shall contain provisions requiring that the offer of a Market Rent

Only Option to a tenant—

(a)
at the point of lease, tenancy contract or other agreement renewal, or at

rent review or five years from the date of the previous rent review;

Notices of Amendments: 14 November 2014
839

Small Business, Enterprise and Employment Bill, continued

(b)
when the large pub-owning business gives notice of, or imposes,

(whichever is the earlier) a significant increase in the price at which it

supplies products, goods or services (falling under subsections (2) or (3))

to the tenant;

(c)
when a large pub-owning business implements, or gives notice of, a

transfer of title;

(d)
when a large pub-owning business goes into administration; or

(e)
upon an event outside of the tenant’s control, and unpredicted at the time

of the previous rent review, that impacts significantly on the tenant’s

ability to trade.

(7)
The terms of an offer under subsection (5) shall include provision for a 21 day

period of negotiation, commencing from the tenant giving notice of an intention

to pursue a Market Rent Only Option, in which the large pub-owning business

and the tenant may seek to negotiate a mutually agreeable Market Rent Only

settlement.

(8)
Following the negotiation period under subsection (7) there shall follow a 90 day

period of assessment. In this period—

(a)
an independent assessor shall be appointed with the agreement of both

parties by joint private instruction and on the basis of an equal

apportionment of costs; and

(b)
under arrangements and criteria that the Adjudicator shall establish, such

an assessor shall be—

(i)
independent of both parties; and

(ii)
competent by virtue of qualification and/or experience.

(c)
if the business and tenant cannot agree on an appointee then a person

shall be appointed, on the application of either party, under arrangements

established by the Adjudicator;

(d)
the appointed assessor shall then assess the market rent for the property

operating as a pub with no “tie” as defined in subsection (2) and submit

to both parties the resulting sum for such a rent; and

(e)
at the time of the three month assessment period, the tenant shall have the

right to pay no more than the sum determined under paragraph (d) to the

pub-owning business and, if previously one party to a “tie” as defined in

subsection (2), shall no longer be bound by it.

(9)
The Pubs Code shall contain such measures as ensure that—

(a)
the Market Rent Only Option is conducted in accordance with timing

provisions and procedures, in accordance with RICS guidance, as

specified in the Pubs Code; and

(b)
large pub-owning businesses are prohibited from acting or discriminating

against any of their tenants who choose the Market Rent Only Option.

(10)
The Secretary of State shall confer on the Adjudicator functions and powers in

relation to the Market Rent Only Option, that include—

(a)
determining what constitutes a significant increase in price, as mentioned

in subsection (6)(b) in the event of a dispute between tenant and business;

(b)
adjudicating in disputes concerning the process or outcome of the market

rent assessment; including the power to set the market rent if the

Adjudicator deems the process or decision to have been flawed; and

(c)
receiving, investigating and adjudicating in relation to complaints made

under subsection (9)(b).

(11)
The Secretary of State shall make provisions for the implementation of the

following measures in this section by regulations amending the Pubs Code. Such

regulations shall be made under negative resolution procedure. The Secretary of

State may make provisions changing the types of agreement that fall under

Notices of Amendments: 14 November 2014
840

Small Business, Enterprise and Employment Bill, continued

subsection (2) by regulations. Such regulations shall be made under negative

resolution procedure.”

Toby Perkins

Mr Iain Wright

Ian Murray

Debbie Abrahams

Caroline Lucas

NC3

To move the following Clause—


“Prompt Payment Code, duties of the Secretary of State

(1)
The Secretary of State shall—

(a)
ensure that any business with payment terms of more than 60 days cannot

sign up to the Prompt Payment Code, and that any existing signatory with

payment terms of more than 60 days is removed from the list;

(b)
at the end of each financial year, the Secretary of State shall write to all

busineses in the FTSE 350 who are not signatories of the Prompt

Payment Code asking them to become so;

(c)
the Secretary of State shall publish a list of those businesses written to

prominently on the Government’s website.”

Toby Perkins

Mr Iain Wright

Ian Murray

Debbie Abrahams

Caroline Lucas

NC4

To move the following Clause—


“Late payment review

(1)
The Secretary of State shall—

(a)
conduct a review into how the Government can use the payment

publishing regime to ensure that small businesses who are paid late by a

larger supplier are automatically paid compensation, and into how the

onus of reporting late payment can be shifted away from the smallest

businesses who cannot afford to lose significant customers; and

(b)
report back to both Houses of Parliament on the conclusions of the

review.”

Notices of Amendments: 14 November 2014
841

Small Business, Enterprise and Employment Bill, continued

Caroline Lucas

NC7


To move the following Clause—


“Living Wage

The Secretaryof State shall within 3 months of Part II of this Act coming into

force—

(a)
bring forward proposals to mandate the payment of the Living Wage for

all those employed to deliver government and public sector contracts, and

(b)
consult on a strategy for increasing the National Minimum Wage to a

level equal to that of the Living Wage.”

Member’s explanatory statement

This amendment would require the Secretary of State to ensure all public sector contracts pay the

Living Wage as a minimum and to consult on a strategy to increase the National Minimum Wage

to a level equal to the level calulated for the Living Wage.

Debbie Abrahams

6

Clause  3,  page  4,  line  33,  at end insert—

“(g)
about the circumstances and process for amending payment terms of the

company.”

Member’s explanatory statement

This is for companies to include details of the circumstances and processs (including who will be

involved) by which payment terms would be amended, preventing unilateral and ad hoc changes.

Caroline Lucas

91


Clause  11,  page  12,  line  19,  at end insert—

“(5)
The Secretary of State may by order establish a Prohibited List of certain classes

of exports that cannot receive UKEF / ECGD support.

(6)
An order establishing , or thereafter amending a list for the purposes mentioned

in subsection (5) shall be subject to the affirmative resolution procedure.”

Member’s explanatory statement

This amendment would grant the Secretary of State the power to prohibit specifed types of exports

from receiving government support, thereby enabling UK export finance provision to reflect

government policies and priorities, such as preventing arms sales to certain regimes. The content

of, or changes to, any such list would need to be approved by Parliament.



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