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Banking Bill

Amendment 174H in the name of my noble friend Lord Myners provides for an amendment to the Banking (Special Provisions) Act 2008. The proposed amendment clarifies the provisions of that Act with respect to the ability to make provision, by order, to give information-gathering powers to the independent valuer. The Northern Rock valuer has recently written to the Treasury requesting powers to allow him to obtain information from third parties, where such information is necessary for him to be able to determine the amount of any compensation due to former shareholders. As much of the information the valuer might request could be considered confidential by third parties, those third parties may be unwilling to provide that information in the absence of legislative powers to require such information from them. Given the independent valuer’s experience to date in this regard, the Government now believe it is appropriate to grant him additional powers to obtain information relevant to his valuation work. An amendment is needed because the Banking (Special Provisions) Act 2008 does not—unlike this Bill—give the Treasury express powers to provide for the independent valuer to have information powers of this kind. The Treasury of course would provide for this under an order under the affirmative procedure. That will ensure that an appropriate level of compensation, if any, can be determined in a timely fashion. Without these additional powers, there is a risk that it may not be possible for the independent valuer to arrive at an accurate valuation of Northern Rock. The same situation would be likely to arise with the independent valuer to be appointed in respect of Bradford & Bingley. I hope, therefore, the Committee will agree that this amendment is essential to ensuring the necessary legislative basis for the provision of powers to the independent valuers of banks resolved under the Banking (Special Provisions) Act. These powers are necessary to the conduct of their work, thus ensuring a swift response to former shareholders and that any compensation due is determined without unnecessary delay. I beg to move.