§ `(1) The Secretary of State may, by order made with the concurrence of the Treasury and after consultation with the Bank of England, provide that such provisions of Part II of this Act and Parts XVIII to XXI of the 1985 Act as may be specified in the order shall apply in relation to—
- (a) recognised banks and licensed institutions within the meaning of the Banking Act 1979; and
- (b) institutions to which sections 16 and 18 of that Act apply as if they were licensed institutions, with such modifications as may be so specified.
§ (2) An order under this section may make different provision for different cases and may contain such incidental, supplemental and transitional provisions as may appear to the Secretary of State necessary or expedient.
§ (3) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.'.—[Mr. Fletcher.]
§ Brought up, and read the First time.552
Mr. Deputy Speaker
With this it will be convenient to take Government amendments Nos. 18, 19 and 228.
§ Mr. Fletcher
New clause 19 will empower the Secretary of State, with the concurrence of the Treasury and after consultation with the Bank of England, to introduce by order a modified version of the administrative procedure to apply to recognised banks, licensed and other institutions covered by the Banking Act 1979. Pending the making of that order, amendments Nos. 18, 19 and 228 disapply the provisions of part II, chapter III, from recognised banks and licensed institutions.
The evolution of the new procedure, following consultations with practitioners on the detailed provisions, has meant that it has not been possible to devise appropriate modifications to make it suitable for application to Banking Act institutions in time for their inclusion in the Bill. Clearly, such modification is necessary in recognition of the Bank of England's statutory status in relation to the supervision of recognised banks and licensed institutions.
The provisions of the winding-up code already recognise this statutory status. It is intended that an order will be made under new clause 19, which will modify part II, chapter III, in a way which recognises the Bank of England's supervisory responsibilities. The provisions of the winding-up code will be the principal guide in devising the modified procedure, but detailed consultations with relevant Departments will take place.
§ Mr. Gould
I congratulate the Minister on speaking for several minutes about the Bank of England's supervisory functions, about recognised banks and about banks failing, and for getting right to the heart of the very area which has been occupied by Johnson Matthey Bankers. Can he assure us that the provisions were not tabled in response to that situation?
§ Mr. Fletcher
I am not surprised at the hon. Gentleman's remarks, but I can give him the assurance that he seeks.
§ Question put and agreed to.
§ Clause read a Second time, and added to the Bill.