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Banking Bill

I am aware that the Delegated Powers Committee has stated that it believes these powers, if permitted, should be limited by stronger time-limiting provisions. I understand that Amendment 174GA would implement that approach. Under my amendment, however, as I have said, the Government have provided that the power to introduce new regulations will lapse after two years if not used. That is to avoid the market uncertainty that might be caused if the potential to make a new insolvency regulation at short notice existed, unused, over a longer period. Noble Lords will appreciate, however, that, if new regulations are made under the affirmative procedure, it will be necessary to keep the enabling powers in the Act to keep the regulations in operation and to allow any necessary further amendments to be made. The Government intend that any new regulations would be permanent, and I emphasise that we would consult widely to ensure an effective long-term solution, although the regulations could, if necessary, be subject to further modification in time, subject to the affirmative procedure. The limitation that the Delegated Powers Committee has recommended, which would involve both the enabling power and any regulations made under it being guillotined after two years, would breed serious market uncertainty about the insolvency regime that the market would operate under in the near future. Furthermore, there is no guarantee that in the early part of 2011 parliamentary conditions would be such as to allow the Bill to go through Parliament. Therefore, the two-year deadline would mean that, in order to have a Bill ready for an available parliamentary slot, the Government would have to draw one up in parallel with drafting the regulations under the enabling power. There would be no time to test the new regulations out and to learn lessons from how the new insolvency regime was operating before making the new Bill. I realise that the Delegated Powers Committee’s concerns are significant. The noble Baroness, Lady Noakes, and the noble Lords, Lord Newby and Lord Northbrook, have spoken with strength of conviction on this point. Therefore, I can commit to considering this again and returning to the issue. I hope, on that basis, that the noble Baroness will not press her amendment.