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[Amendment No. 137 not moved.]

Lord McKenzie of Luton moved Amendment No. 138:

Clause 22, page 13, line 2, at end insert—

“( ) if made by virtue of subsection (1)(a), shall specify the account in respect of which it is made; and”

On Question, amendment agreed to.

The Chairman of Committees: If Amendment No. 139 is agreed to, I shall not be able to call the following two amendments in the name of the noble Lord, Lord Skelmersdale, for reasons of pre-emption.

Lord McKenzie of Luton moved Amendment No. 139:

Clause 22, page 13, line 5, leave out from “32E” to end of line 17

On Question, amendment agreed to.

[Amendments Nos. 140 and 141 not moved.]

Lord McKenzie of Luton moved Amendments Nos. 142 to 144:

Clause 22, page 13, line 28, after “the” insert “deposit-taker or”

Clause 22, page 13, line 29, at end insert “; and

( ) if the order is made in respect of a joint account, the other account-holders.”

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Clause 22, page 13, line 31, after “the” insert “deposit-taker or”

On Question, amendments agreed to.

[Amendment No. 145 not moved.]

Lord McKenzie of Luton moved Amendment No. 146:

Clause 22, page 13, line 39, after “the” insert “deposit-taker or”

On Question, amendment agreed to.

[Amendment No. 147 not moved.]

Lord McKenzie of Luton moved Amendment No. 148:

Clause 22, page 14, line 9, after first “the” insert “deposit-taker or”

On Question, amendment agreed to.

[Amendment No. 149 not moved.]

Lord McKenzie of Luton moved Amendment No. 150:

Clause 22, page 14, line 10, after “directed;” insert—

“( ) if the interim order was made by virtue of section 32D(1)(a), shall specify the account specified in the interim order;”

On Question, amendment agreed to.

[Amendment No. 151 not moved.]

Lord McKenzie of Luton moved Amendments Nos. 152 to 154:

Clause 22, page 14, line 13, after “specified” insert—

“( ) ”

Clause 22, page 14, line 15, at end insert “; and

“( ) if the order is made in respect of a joint account, shall not exceed the amount that appears to the Commission to be fair in all the circumstances.

(3A) In determining the amount to be specified in an order made in respect of a joint account the Commission shall have particular regard—

(a) to the amount contributed to the account by each of the account-holders; and(b) to such other matters as may be prescribed.”

Clause 22, page 14, line 26, after “the” insert “deposit-taker or”

On Question, amendments agreed to.

[Amendment No. 155 not moved.]

Lord McKenzie of Luton moved Amendment No. 156:

Clause 22, page 14, line 27, at end insert “; and

( ) if the order is made in respect of a joint account, the other account-holders.”

On Question, amendment agreed to.

The Chairman of Committees: If Amendment No. 157 is agreed to, I shall not be able to call Amendment No. 158, which is in the name of the noble Lord, Lord Skelmersdale, for reasons of pre-emption.

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Lord McKenzie of Luton moved Amendment No. 157:

Clause 22, page 14, line 28, leave out from beginning to end of line 32 on page 15 and insert—

“32EA Orders under sections 32D and 32E: freezing of accounts etc.

(1) During the relevant period, an order under section 32D or 32E which specifies an account held with a deposit-taker shall operate as an instruction to the deposit-taker not to do anything that would reduce the amount standing to the credit of the account below the amount specified in the order (or, if already below that amount, that would further reduce it).

(2) During the relevant period, any other order under section 32D or 32E shall operate as an instruction to the third party at which it is directed not to do anything that would reduce the amount due to the liable person below the amount specified in the order (or, if already below that amount, that would further reduce it).

(3) Subsections (1) and (2) have effect subject to regulations made under section 32EC(1).

(4) In this section “the relevant period”, in relation to an order under section 32D, means the period during which the order is in force.

(5) In this section and section 32EB “the relevant period”, in relation to an order under section 32E, means the period which—

(a) begins with the service of the order on the deposit-taker or third party at which it is directed; and(b) (subject to subsection (6)) ends with the end of the period during which an appeal can be brought against the order by virtue of regulations under section 32G(6).

(6) If an appeal is brought by virtue of the regulations, the relevant period ends at the time at which—

(a) proceedings on the appeal (including any proceedings on a further appeal) have been concluded; and(b) any period during which a further appeal may ordinarily be brought has ended.

(7) References in this section and sections 32EB and 32G to the amount due to the liable person are to be read as references to the total of any amounts within section 32D(1)(b) that are due or accruing to the liable person from the third party in question.

32EB Orders under section 32E: deductions and payments

(1) Once the relevant period has ended, an order under section 32E which specifies an account held with a deposit-taker shall operate as an instruction to the deposit-taker—

(a) if the amount standing to the credit of the account is less than the remaining amount, to pay to the Commission the amount standing to the credit of the account; and(b) otherwise, to deduct from the account and pay to the Commission the remaining amount.

(2) If an amount of arrears specified in the order remains unpaid after any payment required by subsection (1) has been made, the order shall operate until the relevant time as an instruction to the deposit-taker—

(a) to pay to the Commission any amount (not exceeding the remaining amount) standing to the credit of the account specified in the order; and(b) not to do anything else that would reduce the amount standing to the credit of the account.

(3) Once the relevant period has ended, any other order under section 32E shall operate as an instruction to the third party at which it is directed—

(a) if the amount due to the liable person is less than the remaining amount, to pay to the Commission the amount due to the liable person; and(b) otherwise, to deduct from the amount due to the liable person and pay to the Commission the remaining amount.

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(4) If an amount of arrears specified in the order remains unpaid after any payment required by subsection (3) has been made, the order shall operate until the relevant time as an instruction to the third party—

(a) to pay to the Commission any amount (not exceeding the remaining amount) due to the liable person; and(b) not to do anything else that would reduce any amount due to the liable person.

(5) This section has effect subject to regulations made under sections 32EC(1) and 32G(2)(c).

(6) In this section—

“the relevant time” means the earliest of the following—

(a) the time at which the remaining amount is paid;(b) the time at which the order lapses or is discharged; and(c) the time at which a prescribed event occurs or prescribed circumstances arise;

“the remaining amount”, in relation to any time, means the amount of arrears specified in the order under section 32E which remains unpaid at that time.

32EC Power to disapply sections 32EA(1) and (2) and 32EB(2)(b) and (4)(b)

(1) The Secretary of State may by regulations make provision as to circumstances in which things that would otherwise be in breach of sections 32EA(1) and (2) and 32EB(2)(b) and (4)(b) may be done.

(2) Regulations under subsection (1) may require the Commission’s consent to be obtained in prescribed circumstances.

(3) Regulations under subsection (1) which require the Commission’s consent to be obtained may provide for an application for that consent to be made—

(a) by the deposit-taker or third party at which the order under section 32D or 32E is directed;(b) by the liable person; and(c) if the order is made in respect of a joint account, by any of the other account-holders.

(4) If regulations under subsection (1) require the Commission’s consent to be obtained, the Secretary of State shall by regulations provide for a person of a prescribed description to have a right of appeal to a court against the withholding of that consent.

(5) Regulations under subsection (4) may include—

(a) provision with respect to the period within which a right of appeal under the regulations may be exercised;(b) provision with respect to the powers of the court to which the appeal under the regulations lies.”

On Question, amendment agreed to.

[Amendment No. 158 not moved.]

Lord McKenzie of Luton moved Amendments Nos. 159 to 164:

Clause 22, page 15, leave out lines 37 to 39

Clause 22, page 15, line 39, at end insert—

“( ) as to circumstances in which amounts standing to the credit of an account are to be disregarded for the purposes of sections 32D, 32EA and 32EB;”

Clause 22, page 15, leave out lines 42 to 44 and insert—

“(c) allowing a deposit-taker or third party at which an order under section 32E is directed to deduct from the amount standing to the credit of the account specified in the order, or due to the liable person, a prescribed amount towards its administrative costs before making any payment to the Commission required by section 32EB;”

7 Feb 2008 : Column GC662

Clause 22, page 15, line 45, after “person” insert “(and, in the case of an order made in respect of a joint account, to the other account-holders)”

Clause 22, page 16, line 1, after “a” insert “deposit-taker or”

Clause 22, page 16, leave out lines 16 to 20

On Question, amendments agreed to.

[Amendment No. 165 not moved.]

Lord McKenzie of Luton moved Amendment No. 166:

Clause 22, page 16, line 31, leave out “magistrates’ court (or, in Scotland, to the sheriff)” and insert “court”

On Question, amendment agreed to.

The Chairman of Committees: If Amendment No. 167 is agreed to, I shall not be able to call Amendment No. 168 for reasons of pre-emption.

Lord McKenzie of Luton moved Amendment No. 167:

Clause 22, page 16, leave out lines 33 to 37

On Question, amendment agreed to.

[Amendments Nos. 168 and 169 not moved.]

Lord McKenzie of Luton moved Amendments Nos. 170 to 171:

Clause 22, page 16, line 38, leave out “or (as the case may be) the sheriff”

Clause 22, page 16, line 42, leave out “subsections (6) and (7)” and insert “subsection (6)”

On Question, amendments agreed to.

The Chairman of Committees: If Amendment No. 172 is agreed to, I shall not be able to call Amendment No. 173 for reasons of pre-emption.

Lord McKenzie of Luton moved Amendment No. 172:

Clause 22, page 16, line 45, leave out from “of” to end of line 47 and insert “the court to which the appeal under the regulations lies”

On Question, amendment agreed to.

[Amendment No. 173 not moved.]

Lord Addington moved Amendment No. 174:

Clause 22, page 17, line 12, at end insert—

“32I Power to freeze assets

The Commission shall have express power to freeze any and all capital and heritable assets owned wholly or jointly by any non-resident parent against full and final satisfaction of all or any outstanding areas of maintenance.””

The noble Lord said: I shall speak briefly to this amendment as its subject matter may be dealt with in government amendments to come. For the convenience of the Committee, I beg to move.

Lord McKenzie of Luton: In speaking to Amendment No. 174, I shall speak also to government Amendments Nos. 175 to 177, 215 and 217. I thank the noble Lord for moving Amendment

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No. 174, which seeks to give the commission the power to make an administrative freezing order in relation to any real property and capital as soon as a non-resident parent has missed a payment of child support maintenance. As part of this group I propose government amendments which enable the freezing of non-resident parents’ assets. I hope that my explanation of these amendments will cover the point raised.

In Committee in another place, the Government agreed to consider an amendment that would provide the commission with a power to apply, in appropriate circumstances, to the court for a freezing order. Following that consideration, the Government agree that this would be a useful addition to the commission’s enforcement tools. The government amendment would apply where there is evidence that a non-resident parent is about to dispose of assets or remove them from the commission’s jurisdiction with the intention of avoiding payment of child maintenance. It would enable the commission to apply to the court for an order freezing those assets. Indeed, we propose to go one stage further. The government amendment would also enable the commission to ask the court to satisfy the disposition which had already been made. The court will also be given the power to make consequential directions and orders as it sees fit to give effect to the order.

The number of cases in which the commission will have firm evidence of the non-resident parent’s intention to dispose of his assets is likely to be very small; nevertheless, the provisions will enable the commission to act quickly to secure maintenance where such evidence comes to light. It will act as a deterrent to non-resident parents who would otherwise be prepared to enter into transactions to prevent enforcement of their parental responsibilities.

I recognise the sentiment behind Amendment No. 174, but, as I said, it is the same as what I have just outlined. As drafted, the power to freeze assets as described would be a step too far. Not only would there be practical and operational difficulties for the commission, the commission would be given administrative powers comparable to those operated by the High Court but without appeal rights. The noble Lord’s amendment would give the commission the power to make an administrative order which would freeze all assets and it would apply equally to those assets owned wholly or jointly by a non-resident parent and could be applied as soon as a payment for child maintenance had been missed. The freezing order would remain in force until the outstanding arrears had been settled. That provision does not contain any safeguards in relation to the exercise of this power, nor is there a right of appeal, as I said.

In considering whether the proposal is proportionate, we need to bear in mind that the commission will have several additional enforcement options that are not currently available to the Child Support Agency. They include, as we have discussed, lump sum deduction orders, which will allow the commission to freeze and then seize assets from a number of different types of accounts. I believe that the collection and enforcement provisions will go a

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long way towards meeting the aims behind the noble Lord’s amendment. I invite him to withdraw his amendment and to support the government amendments.

Lord Addington: The words “sledgehammer” and “nut” come to mind. I think that our concern was justified and that we were right to raise it, and I thank the Government for including something which seems to have a slightly weightier blow behind it. Having said that, I beg leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 22, as amended, agreed to.

Lord McKenzie of Luton moved Amendment No. 175:

After Clause 22, insert the following new Clause—

“Orders preventing avoidance

After section 32H of the Child Support Act 1991 (inserted by section 22 of this Act) insert—

“32HA Orders preventing avoidance

(1) The Commission may apply to the court, on the grounds that a person—

(a) has failed to pay an amount of child support maintenance, and(b) with the intention of avoiding payment of child support maintenance, is about to make a disposition or to transfer out of the jurisdiction or otherwise deal with any property,for an order restraining or, in Scotland, interdicting the person from doing so.

(2) The Commission may apply to the court, on the grounds that a person—

(a) has failed to pay an amount of child support maintenance, and(b) with the intention of avoiding payment of child support maintenance, has at any time made a reviewable disposition,for an order setting aside or, in Scotland, reducing the disposition.

(3) If the court is satisfied of the grounds mentioned in subsection (1) or (2) it may make an order under that subsection.

(4) Where the court makes an order under subsection (1) or (2) it may make such consequential provision by order or directions as it thinks fit for giving effect to the order (including provision requiring the making of any payments or the disposal of any property).

(5) Any disposition is a reviewable disposition for the purposes of subsection (2), unless it was made for valuable or, in Scotland, adequate consideration (other than marriage) to a person who, at the time of the disposition, acted in relation to it in good faith and without notice of an intention to avoid payment of child support maintenance.

(6) Subsection (7) applies where an application is made under this section with respect to—

(a) a disposition or other dealing with property which is about to take place, or(b) a disposition which took place after the making of the application on which the maintenance calculation concerned was made.

(7) If the court is satisfied—

(a) in a case falling within subsection (1), that the disposition or other dealing would (apart from this section) have the consequence of making ineffective a step that has been or may be taken to recover the amount outstanding, or

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