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Lord Kingsland: My Lords, I thank the Minister for his reply. As regards Amendment No. 42, the Minister has made his position absolutely clear. When the moment comes to deal with it, the Opposition will move the amendment and test the opinion of the House. In the circumstances we shall withdraw Amendment No. 41.

As regards Amendment No. 40, it is essential that the Minster adds at the end of the expression "with the City Code" the words "as applied by the Takeover Panel" to make it absolutely clear that, in any particular set of circumstances, it is the interpretation of the code by the panel that is covered by the safe harbour. Any other approach would mean that, in future, nobody involved in a takeover bid would have any confidence in the guidance given by the Takeover Panel.

Therefore, if we are to support the amendment, what we are seeking is nothing less than an express undertaking by the Minister to your Lordships that in another place the expression,

18 May 2000 : Column 415

will be added after the expression, "with the City Code". If he is not prepared to give that undertaking, we shall oppose Amendment No. 40. I beg leave to withdraw Amendment No. 41.

[Amendment No. 41, as an amendment to Amendment No. 40, by leave, withdrawn.]

6.39 p.m.

On Question, Whether the said amendment (No. 40) shall be agreed to?

Their Lordships divided: Contents, 118; Not-Contents, 167.

Division No. 2


Acton, L.
Allenby of Megiddo, V.
Alli, L.
Amos, B.
Archer of Sandwell, L.
Ashton of Upholland, B.
Bach, L.
Bassam of Brighton, L.
Berkeley, L.
Billingham, B.
Blackstone, B.
Borrie, L.
Bragg, L.
Brett, L.
Brooke of Alverthorpe, L.
Brookman, L.
Burlison, L.
Burns, L.
Carter, L. [Teller]
Chandos, V.
Christopher, L.
Clarke of Hampstead, L.
Cocks of Hartcliffe, L.
Cohen of Pimlico, B.
Craig of Radley, L.
Crawley, B.
Dacre of Glanton, L.
Darcy de Knayth, B.
David, B.
Desai, L.
Diamond, L.
Donaldson of Lymington, L.
Donoughue, L.
Dubs, L.
Elder, L.
Evans of Temple Guiting, L.
Farrington of Ribbleton, B.
Faulkner of Worcester, L.
Filkin, L.
Gale, B.
Gibson of Market Rasen, B.
Gilbert, L.
Goudie, B.
Gould of Potternewton, B.
Grabiner, L.
Graham of Edmonton, L.
Grenfell, L.
Hardy of Wath, L.
Harris of Haringey, L.
Haskel, L. [Teller]
Hayman, B.
Hilton of Eggardon, B.
Hollis of Heigham, B.
Howells of St Davids, B.
Howie of Troon, L.
Hughes of Woodside, L.
Hunt of Chesterton, L.
Hunt of Kings Heath, L.
Irvine of Lairg, L. (Lord Chancellor)
Jay of Paddington, B. (Lord Privy Seal)
Jenkins of Putney, L.
Judd, L.
Kennedy of The Shaws, B.
King of West Bromwich, L.
Layard, L.
Lea of Crondall, L.
Lipsey, L.
Lockwood, B.
Lovell-Davis, L.
Macdonald of Tradeston, L.
McIntosh of Haringey, L.
McIntosh of Hudnall, B.
MacKenzie of Culkein, L.
Mallalieu, B.
Marsh, L.
Massey of Darwen, B.
Merlyn-Rees, L.
Milner of Leeds, L.
Molloy, L.
Morris of Castle Morris, L.
Morris of Manchester, L.
Murray of Epping Forest, L.
Nicol, B.
Paul, L.
Peston, L.
Pitkeathley, B.
Prys-Davies, L.
Ramsay of Cartvale, B.
Rendell of Babergh, B.
Renwick of Clifton, L.
Richard, L.
Rogers of Riverside, L.
Sawyer, L.
Serota, B.
Shepherd, L.
Simon, V.
Simon of Glaisdale, L.
Smith of Gilmorehill, B.
Stoddart of Swindon, L.
Strabolgi, L.
Symons of Vernham Dean, B.
Tenby, V.
Thornton, B.
Tomlinson, L.
Turner of Camden, B.
Uddin, B.
Walker of Doncaster, L.
Warner, L.
Warnock, B.
Warwick of Undercliffe, B.
Wedderburn of Charlton, L.
Whitaker, B.
Whitty, L.
Wilkins, B.
Williams of Elvel, L.
Williams of Mostyn, L.
Winston, L.
Young of Old Scone, B.


Aberdare, L.
Addington, L.
Alderdice, L.
Ampthill, L.
Anelay of St. Johns, B.
Arran, E.
Astor of Hever, L.
Attlee, E.
Baker of Dorking, L.
Barber, L.
Barker, B.
Bell, L.
Belstead, L.
Blackwell, L.
Blaker, L.
Blatch, B.
Boardman, L.
Bowness, L.
Brabazon of Tara, L.
Bradshaw, L.
Bridgeman, V.
Brightman, L.
Brittan of Spennithorne, L.
Brougham and Vaux, L.
Burnham, L. [Teller]
Buscombe, B.
Byford, B.
Caithness, E.
Campbell of Croy, L.
Carnegy of Lour, B.
Carr of Hadley, L.
Cavendish of Furness, L.
Chadlington, L.
Chilver, L.
Clark of Kempston, L.
Colwyn, L.
Cope of Berkeley, L.
Courtown, E.
Cowdrey of Tonbridge, L.
Craigavon, V.
Cranborne, V.
Crathorne, L.
Crickhowell, L.
Cumberlege, B.
Deedes, L.
Denham, L.
Denton of Wakefield, B.
Dholakia, L.
Dixon-Smith, L.
Eccles of Moulton, B.
Eden of Winton, L.
Elles, B.
Elliott of Morpeth, L.
Elton, L.
Falkland, V.
Feldman, L.
Fookes, B.
Forsyth of Drumlean, L.
Freeman, L.
Geddes, L.
Glentoran, L.
Goschen, V.
Greaves, L.
Greenway, L.
Hambro, L.
Hamwee, B.
Hanham, B
Harris of Greenwich, L.
Haslam, L.
Hayhoe, L.
Henley, L. [Teller]
Higgins, L.
Hogg, B.
Holderness, L.
Holme of Cheltenham, L.
Hooper, B.
Howe, E.
Howell of Guildford, L.
Hunt of Wirral, L.
Inglewood, L.
Jacobs, L.
Jenkin of Roding, L.
Jopling, L.
Kelvedon, L.
Kingsland, L.
Kirkham, L.
Knight of Collingtree, B.
Laing of Dunphail, L.
Lamont of Lerwick, L.
Lane of Horsell, L.
Lester of Herne Hill, L.
Luke, L.
McColl of Dulwich, L.
Maddock, B.
Mancroft, L.
Mayhew of Twysden, L.
Miller of Chilthorne Domer, B.
Miller of Hendon, B.
Montagu of Beaulieu, L.
Montrose, D.
Mowbray and Stourton, L.
Murton of Lindisfarne, L.
Naseby, L.
Newby, L.
Newton of Braintree, L.
Norfolk, D.
Northbrook, L.
Northesk, E.
Northover, B.
Norton of Louth, L.
O'Cathain, B.
Oakeshott of Seagrove Bay, L.
Onslow, E.
Onslow of Woking, L.
Oppenheim-Barnes, B.
Oxfuird, V.
Park of Monmouth, B.
Parkinson, L.
Patten, L.
Pearson of Rannoch, L.
Peel, E.
Perry of Southwark, B.
Pilkington of Oxenford, L.
Platt of Writtle, B.
Plummer of St. Marylebone, L.
Rawlings, B.
Rawlinson of Ewell, L.
Reay, L.
Redesdale, L.
Rees, L.
Renfrew of Kaimsthorn, L.
Renton, L.
Roberts of Conwy, L.
Rodgers of Quarry Bank, L.
Rotherwick, L.
Roper, L.
Russell, E.
Ryder of Wensum, L.
Saatchi, L.
Scott of Needham Market, B.
Seccombe, B.
Selborne, E.
Selsdon, L.
Sharp of Guildford, B.
Sharples, B.
Shaw of Northstead, L.
Sheppard of Didgemere, L.
Shutt of Greetland, L
Skelmersdale, L.
Smith of Clifton, L.
Soulsby of Swaffham Prior, L.
Stevens of Ludgate, L.
Stewartby, L.
Stodart of Leaston, L.
Strathclyde, L.
Swinfen, L.
Taylor of Warwick, L.
Thomas of Gwydir, L.
Thomas of Walliswood, B.
Trefgarne, L.
Trumpington, B.
Wallace of Saltaire, L.
Watson of Richmond, L.
Wigoder, L.
Wilcox, B.
Willoughby de Broke, L.
Young, B.

Resolved in the negative, and amendment disagreed to accordingly.

18 May 2000 : Column 417

6.49 p.m.

[Amendment No. 42 not moved.]

Clause 118 [Power to impose penalties in cases of market abuse]:

Lord Bach moved Amendment No. 43:

    Page 61, line 12, leave out ("amount to market abuse") and insert ("fall within paragraph (a) or (b) of subsection (1)").

The noble Lord said: My Lords, in moving the amendment, I speak also to Amendments Nos. 44 and 140. These amendments make important improvements to the protections in the market abuse regime in Clause 118 aligning them with the protections introduced into the restitution provisions on Report. They also correct an omission from the defences introduced on Report from the offences of misleading statements and practices in Clause 390 ensuring that the protection they provide can apply in a wider range of circumstances. I am sure they will be welcomed by noble Lords.

Following amendments made in Committee, Clause 118 now applies protections against the imposition of penalties or the making of a public statement where a person has reasonable grounds for believing that his behaviour was not market abuse or takes reasonable precaution to avoid engaging in market abuse. These are in line with amendments put down by noble Lords opposite and were welcomed by the House.

On Report we introduced these same protections into the provisions concerning restitution for market abuse. At the same time we also applied the protections so far as concerns restitution to those who require or encourage another to engage in abuse as part of the improvements to those provisions with respect to requirers and encouragers.

Amendments Nos. 43 and 44, amending Clause 118, simply bring the same protections into play in the market abuse penalty regime for those who require or encourage others to engage in market abuse. I am sure this will be welcomed by noble Lords.

Amendment No. 140 to Clause 390 simply extends the protection for behaviour in compliance with control of information rules and price stabilisation

18 May 2000 : Column 418

rules to the full range of actions covered by Clause 390(1)(a); namely, the making of promises and forecasts as well as the making of statements. I beg to move.

On Question, amendment agreed to.

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