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Lord Macdonald of Tradeston moved Amendment No. 6:


On Question, amendment agreed to.

Clause 14, as amended, agreed to.

Clause 15 [Position where Commission gives direction]:

Lord Macdonald of Tradeston moved Amendments Nos. 7 to 9:


    Page 10, line 41, leave out ("may") and insert ("must").


    Page 11, line 1, leave out ("may") and insert ("must").


    Page 11, line 26, leave out from ("Commission") to end of line 27 and insert ("must--


(a) publish a notice in such manner as the Commission thinks appropriate for bringing the matters to which it relates to the attention of persons likely to be affected by the modifications, and
(b) serve a copy of the notice on the licence holder, a copy on the Secretary of State and a copy on the CAA.
(7) The notice under subsection (6) must--
(a) state that the modifications have been made,
(b) set them out, and
(c) set out the reasons for making them.").

On Questions, amendments agreed to.

Clause 15, as amended, agreed to.

27 Jun 2000 : Column CWH8

Lord Macdonald of Tradeston moved Amendment No. 10:


    After Clause 15, insert the following new clause--


COMMISSION'S DUTY AS TO MODIFICATIONS UNDER SECTION 15
(" .--(1) The Competition Commission must exercise its functions under section 15(2) and (3) in the manner it thinks best calculated--
(a) to further the interests of operators and owners of aircraft, owners and managers of aerodromes, persons travelling in aircraft and persons with rights in property carried in them;
(b) to promote efficiency and economy on the part of licence holders;
(c) to secure that licence holders will not find it unduly difficult to finance activities authorised by their licences;
(d) to take account of any international obligations of the United Kingdom notified to the CAA by the Secretary of State (whatever the time or purpose of the notification) and notified to the Commission by the CAA;
(e) to take account of any guidance on environmental objectives given to the CAA by the Secretary of State after the coming into force of this section and notified to the Commission by the CAA;
(f) to impose on licence holders the minimum restrictions which are consistent with the exercise of the Commission's functions (including the above paragraphs).
(2) These interests are the only ones to be considered under subsection (1)(a)--
(a) interests regarding safety;
(b) interests regarding the range, availability, continuity, cost and quality of air traffic services.
(3) The reference in subsection (1)(a) to furthering interests includes a reference to furthering them (where the Commission thinks it appropriate) by promoting competition in the provision of air traffic services.
(4) If in a particular case there is a conflict in the application of the provisions of subsections (1) to (3), in relation to that case the Commission must exercise its functions under section 15(2) and (3) in the manner it thinks is reasonable having regard to the provisions of subsections (1) to (3) as a whole.").

On Question, amendment agreed to.

Lord Macdonald of Tradeston moved Amendment No. 11:


    After Clause 15, insert the following new clause--


SECTIONS 14 AND 15: GENERAL
(" .--(1) The provisions listed in subsection (2) apply in relation to the exercise by the Commission of its functions under section 14 or 15 as if--
(a) references in section 82(1) and (2) of the 1973 Act to a report of the Commission under that Act were references to a notice under section 14(4) or 15(4) or (6) above;
(b) references in section 85 of the 1973 Act to an investigation on a reference made to the Commission under that Act were references to an investigation by the Commission for the purposes of exercising its functions under section 14 or 15 above;
(c) the reference in section 93B of the 1973 Act to the Commission's functions under Part IV, V, VI or VIII of that Act were a reference to its functions under section 14 or 15 above.

27 Jun 2000 : Column CWH9


(2) The provisions are--
(a) sections 82(1) and (2) of the 1973 Act (exclusion of certain matters and absolute privilege);
(b) section 85 of the 1973 Act (witnesses and documents);
(c) section 93B of the 1973 Act (false or misleading information);
(d) section 24 of the Competition Act 1980 (modification of provisions about Commission's general functions);
(e) Part II of Schedule 7 to the Competition Act 1998 (Commission's general functions).
(3) The 1973 Act is the Fair Trading Act 1973.").

On Question, amendment agreed to.

Clauses 16 to 27 agreed to.

Schedules 1 and 2 agreed to.

Clauses 28 to 30 agreed to.

Schedule 3 agreed to.

Clause 31 [Investigations]:

Lord Macdonald of Tradeston moved Amendments Nos. 12 and 13:


    Page 21, line 14, after ("contravention") insert ("of a section 8 duty or").


    Page 21, line 18, at end insert--


("(3) A section 8 duty is a duty imposed on a licence holder by section 8.").

On Question, amendments agreed to.

Clause 31, as amended, agreed to.

Clause 32 [Register]:

Lord Macdonald of Tradeston moved Amendments Nos. 14 and 15:


    Page 21, line 28, leave out ("direction or determination made or") and insert ("requirement or determination made or direction,").


    Page 21, line 29, at end insert--


("(ee) the terms of every notice given under section (Power to exclude services from effect of section 8);").

On Question, amendments agreed to.

Clause 32, as amended, agreed to.

Clause 33 agreed to.

Schedule 4 agreed to.

Clause 34 agreed to.

Schedule 5 agreed to.

Clauses 35 to 47 agreed to.

Clause 48 [Crown shareholding]:

Lord Macdonald of Tradeston moved Amendment No. 16:


    Page 32, line 27, at end insert--


("( ) Grounds on which the Secretary of State may be satisfied that a scheme is in place as mentioned in subsection (3) include the grounds that the arrangements for the disposal of the shares include provision obliging the person acquiring them to ensure the completion of the project.
( ) For the purposes of this section a project concerns the development of major facilities if (and only if) the Secretary of State thinks that the value of the project is above £200 million.").

The noble Lord said: This group of amendments makes a number of technical amendments to Part I Chapter II of the Bill, which contains provisions relating to transfer schemes and sale arrangements. Amendment No. 16 proposes the addition of two new

27 Jun 2000 : Column CWH10

subsections to Clause 48. Their aim is to clarify and strengthen the intention behind subsection (3), which was added to the Bill at Report stage in another place, with a view to reaffirming the Government's commitment to the two-centre strategy.

Amendments Nos. 17 to 24 are technical in nature. They provide clarification to the drafting of paragraph 25 of Schedule 6, which contains detailed provisions on transfer scheme arrangements, and make consequential changes to Schedule 7, which deals with taxation matters and transfers.

Amendments Nos. 25 and 26 provide a definition of the term "Northern Ireland Minister", which is used in Clauses 53 and 62. I beg to move.

Lord Brabazon of Tara: In my remarks on the first group of amendments I should have thanked the Minister for sending us all a letter and an explanation of some of these government amendments. I also sympathise with the Deputy Chairman for having to go through the whole of the Bill, clause by clause.

I have three quick questions. First, I believe that Amendment No. 16 is slightly more than just a technical amendment, as it includes three matters that I would like to know about. The Minister has said that this concerns a two-centre strategy. However, I wonder why the amendment includes the words,


    "the Secretary of State thinks".

Surely the value of a project is either over £200 million or less than £200 million. What do the thoughts of the Secretary of State have to do with it? Secondly, why has a figure of £200 million been chosen for this particular exercise? Thirdly, what happens if the developer fails to complete the project, having given the assurances that were made at the beginning?

Lord Macdonald of Tradeston: In relation to the semantics, we can assume that the word "thinks" is synonymous with the word "believes" in the context of the decision to be made.

The figure of £200 million as the cut-off figure was put into a second new subsection so that we could provide the missing definition of what constituted major facilities. It covers a project that, in the opinion of the Secretary of State, and according to our knowledge of the progress of a project, has a value in excess of £200 million. That figure was chosen because it is intended to capture the two major projects of Swanwick and the new Scottish Centre, but not others.

On Question, amendment agreed to.

Clause 48, as amended, agreed to.

Clauses 49 to 60 agreed to.


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