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Session 1999-2000
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Amendments to the Transport Bill

Transport Bill -
Amendments to be debated in the House of Lords

Here you can browse the Amendments to the Transport Bill to be moved on Report in the House of Lords.

  
Clause 5
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 4, line 8, leave out from beginning to second ("the") in line 11 and insert ("a not for profit company, formed and registered as a company limited by guarantee under the Companies Act 1985 or") 
  
Clause 41
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 26, line 38, leave out from ("provisions") to end of line 4 on page 28 and insert ("for the transfer of--
    (a)  any of the CAA's property, rights or liabilities or of all or part of its undertaking; or
    (b)  the property, rights or liabilities of a company (the transferor) which is wholly owned by the CAA or all or part of the transferor's undertaking;
to a not for profit company.")
 
  
After Clause 42
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Insert the following new Clause-- 
     ("  .--(1)  Any property, rights or liabilities shall only be transferred under a transfer scheme to a not for profit company.
 
    (2)  The transfer of property, rights or liabilities under a transfer scheme may be by such means, including sale or lease, and on such terms as the Secretary of State, with the approval of the Treasury, may determine.
 
    (3)  A transfer scheme shall not come into force unless a draft of the scheme has been laid before and approved by resolution of each House of Parliament.
 
    (4)  A not for profit company to which any property, rights or liabilities have been transferred under a transfer scheme shall not--
    (a)  issue any shares or share rights; or
    (b)  pay any dividend or profits to its members.
    (5)  For purposes of this Part, "not for profit company" means a company--
    (a)  which has been formed and registered as a company limited by guarantee under the Companies Act 1985 or the Companies (Northern Ireland) Order 1986; and
    (b)  the membership of which, in the opinion of the Secretary of State includes those who are representative of providers, employees and users of aviation, air travel, air navigation and related services.")
Transfer to be to not for profit company.
     Insert the following new Clause-- 
     ("  .--(1)  A transfer scheme made by the CAA or the Secretary of State shall not come into force unless it has been approved by a resolution of each House of Parliament passed on a motion moved by or on behalf of the Secretary of State.
 
    (2)  No such motion shall be moved by or on behalf of the Secretary of State unless at least seven days before the date on which the motion is to be debated by either House of Parliament he has caused a report to be laid before both Houses which--
    (a)  sets out the progress which has been made in respect of any project for the development of facilities connected with national air traffic services which was commissioned by the transfer or before the date on which this Act received Royal Assent; and
    (b)  confirms that the Treasury have given their consent to the proposed transfer.")
Parliamentary approval of transfer schemes.
  
Clause 43
 
  
BY THE LORD BRABAZON OF TARA
THE LORD DIXON-SMITH
 
     Page 29, line 8, at end insert--
 
    ("(  )  No direction to make a transfer scheme shall be given under subsection (1) before the first Session of the next Parliament after that in which this Act is passed.")
 
  
Clause 44
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 29, line 10, leave out from ("unless") to end of line 11 and insert ("a draft of the scheme has been laid before, and approved by resolution of, each House of Parliament in accordance with section (Transfer to be to not for profit company)") 
     Page 29, line 12, after ("that") insert ("and to section (Parliamentary approval of transfer schemes)") 
     Page 29, line 13, leave out from ("force") to end of line 16 
     Page 29, line 20, at beginning insert ("The Secretary of State may modify a scheme before it is laid in draft before Parliament and") 
     Page 29, line 22, leave out ("to approve and modify") 
  
BY THE LORD BRABAZON OF TARA
THE LORD DIXON-SMITH
 
     Page 29, line 28, at end insert--
 
    ("(  )  No approval of a transfer scheme shall be made under subsection (2) before the first Session of the next Parliament after that in which this Act is passed.")
 
  
Clause 45
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 29, line 37, at beginning insert ("Subject to section (Parliamentary approval of transfer schemes),") 
     Page 29, line 37, after ("section") insert ("shall not come into force unless a draft of the scheme has been laid before and approved by resolution of each House of Parliament in accordance with section (Transfer to be to not for profit company) but, subject to that requirement,") 
  
BY THE LORD BRABAZON OF TARA
THE LORD DIXON-SMITH
 
     Page 29, line 41, at end insert--
 
    ("(  )  No transfer scheme shall be made under subsection (2) before the first Session of the next Parliament after that in which this Act is passed.")
 
  
Clause 47
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 31, line 10, leave out paragraphs (a) to (c) 
  
Clause 48
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 32, line 3, leave out paragraph (a) 
  
Clause 49
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Leave out Clause 49 
  
Clause 50
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Leave out Clause 50 
  
Clause 51
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Leave out Clause 51 
  
Before Clause 52
 
  
BY THE LORD BRETT
THE LORD LEA OF CRONDALL
THE LORD BROOKE OF ALVERTHORPE
THE LORD HOYLE
 
     Insert the following new Clause-- 
     ("  .--(1)  This section applies if any property, rights or liabilities are transferred under a transfer scheme to a transferee which at the time of the transfer is--
    (a)  a company which is wholly owned by the Crown;
    (b)  a company which is wholly owned by the CAA;
    (c)  a company which is a wholly owned subsidiary of a company falling within paragraph (a) or (b).
    (2)  The Secretary of State may by order designate such a transferee for the purposes of this section.
 
    (3)  The Secretary of State must ensure that, in relation to members' resolutions of the designated company, the proportion of votes exercised by the Crown shareholder, as a proportion of the total votes available to all shareholders, shall be in direct proportion to the proportion of shares in issue held by the Crown shareholder.
 
    (4)  The Secretary of State must ensure that the Crown shareholder must appoint a number of Directors to the Board of the designated Company, so that the proportion of its appointees on the Board is equal to the proportion of shares in issue held by the Crown shareholder.
 
    (5)  The Secretary of State must ensure that at least 5% of the designated company's issued ordinary share capital shall be held by an Employee Share Trust on behalf of employees.
 
    (6)  The Secretary of State must ensure that a representative of the Employee Share Trust is appointed to the Board of Directors of the designated company.")
Voting rights of Crown shareholder, employee participation, etc.
  
Clause 52
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 34, line 37, leave out subsections (1) to (3) and insert--
 
    ("(1)  The Secretary of State, with the approval of the Treasury, may make loans of such amounts as he thinks fit to a not for profit company to which any property, rights or liabilities are transferred under a transfer scheme.")
 
  
Clause 53
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 35, line 27, leave out subsections (1) to (3) and insert--
 
    ("(1)  The Secretary of State or the Treasury may guarantee the discharge of any financial obligation of a not for profit company to which any property, rights or liabilities are transferred under a transfer scheme.")
 
     Page 35, line 42, leave out subsection (6) 
  
Clause 54
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 36, line 21, leave out subsections (1) to (3) and insert--
 
    ("(1)  The Secretary of State, with the approval of the Treasury, may make grants towards the expenditure of a not for profit company to which any property, rights or liabilities are transferred under a transfer scheme.")
 
  
Clause 55
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Leave out Clause 55 
  
Clause 56
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Leave out Clause 56 
  
Clause 62
 
  
BY THE BARONESS THOMAS OF WALLISWOOD
THE LORD SMITH OF CLIFTON
 
     Page 42, line 23, leave out ("49, 50 or") 
     Page 42, line 28, leave out ("49 or") 
  
After Clause 64
 
  
BY THE LORD BRETT
THE LORD LEA OF CRONDALL
THE LORD BROOKE OF ALVERTHORPE
THE LORD HOYLE
 
     Insert the following new Clause-- 
     ("  .--(1)  In this section--
    NATS employer" includes NATS, any designated company which succeeds to the business of NATS and any employer other than a designated company which succeeds to or acquires any part of the business of NATS;
    protected beneficiary" includes--
          (a)  any person who, on the transfer date, is employed by NATS and is an active member of the Scheme;
          (b)  any person who is employed by NATS on the transfer date, but is then too young to join the Scheme, and who subsequently joins;
          (c)  any person who is not an active member of the Scheme on the transfer date but who is subsequently entitled to rejoin as a NATS employee without a break in their continuity of employment;
          (d)  any person who is not an active member of the Scheme on the transfer date, but who is entitled to accrued pension rights under the Scheme at that date; and
          (e)  any person who is prospectively or contingently entitled to benefit under the Scheme on the death of a person covered under (a) to (d) above;
    relevant scheme" means the Scheme or any other scheme of a NATS employer that covers protected beneficiaries, and that provides benefits in respect of the protected beneficiaries which are at least equivalent in value to those applicable to the protected beneficiaries as at the transfer date;
    Scheme" means the Civil Aviation Authority Pension Scheme;
    transfer date" means the date of the transfer of NATS to the public-private partnership.
    (2)  NATS (or, if appropriate, the designated company) shall, subject to the consent of the Pension Schemes Office of the Inland Revenue, participate in the Scheme as a non-associated employer.
 
    (3)  If NATS (or the designated company) does participate in the Scheme as a non-associated employer, a proportion of the total assets of the Scheme shall be segregated for the benefit of the protected beneficiaries and the share of assets so segregated shall be equal in proportion to the proportion that the Scheme liabilities in respect of the protected beneficiaries bears to the Scheme's liabilities as a whole.
 
    (4)  If NATS (or the designated company) is unable to participate in the Scheme, that NATS employer shall instead make available a relevant scheme for the benefit of the protected beneficiaries.
 
    (5)  If the shares or business of NATS (or the designated company), or any part of that business, is transferred to a NATS employer other than NATS or a designated company, that NATS employer shall become a non-associated employer in the Scheme and if that is not possible that NATS employer shall instead make available a relevant scheme for the benefit of the protected beneficiaries.
 
    (6)  For the purposes of subsections (4) and (5), if a NATS employer is to make available a relevant scheme other than the Scheme, a share of the assets of the Scheme (or of the previous relevant scheme if not the Scheme) shall be transferred to the receiving relevant scheme, calculated on the basis described in subsection (3).
 
    (7)  If a protected beneficiary transfers to the employment of another employer that also participates in the Scheme but which is not a NATS employer, that beneficiary shall remain a protected beneficiary for the purposes of the benefits to be provided to and in respect of him under the relevant scheme and if that beneficiary subsequently transfers back to the employment of a NATS employer he shall still remain a protected beneficiary.
 
    (8)  For so long as a NATS employer remains as a participating employer of the Scheme in respect of protected beneficiaries, one trustee of the Scheme shall be a member representative selected from amongst the protected beneficiaries, and one trustee of the Scheme shall be an employer representative of the NATS employer.
 
    (9)  The NATS employer shall contribute to the relevant scheme at no less than the rate recommended by that scheme's actuary as being sufficient to secure the accrued rights from time to time of the protected beneficiaries in full by the purchase of annuities and the NATS employer shall not be entitled unilaterally to suspend or terminate its contributions to the relevant scheme except upon its insolvency.
 
    (10)  On the full winding-up of a relevant scheme, or on a partial winding-up which involves protected beneficiaries, any shortfall in the assets required to buy out the accrued rights at that time of the protected beneficiaries shall be met in full by the relevant NATS employer and shall be treated as a debt on the employer.
 
    (11)  If, on the full or partial winding-up of a relevant scheme as described in subsection (10), the trustees wish, rather than securing benefits by the purchase of annuities, to pay a bulk transfer to another scheme, that other scheme shall be a relevant scheme and the transfer value payable in respect of the protected beneficiaries shall be sufficient to secure a buy out of their accrued rights if the receiving scheme were to be wound up immediately following the transfer.
 
    (12)  The NATS employer shall provide future benefits in the relevant scheme which, in respect of the protected beneficiaries, are at last equivalent in value to those available under the Scheme at the transfer date.
 
    (13)  No amendment may be made to a relevant scheme which would result in a reduction of the accrued or future rights of protected beneficiaries, nor in an increase in the contributions payable by protected beneficiaries who are active members.")
Pension entitlement of present and former employees of NATS.
 
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Prepared 23 October 2000