3rd Report, 2013 (Session 4): Legislative Consent Memorandum on the Enterprise and Regulatory Reform Bill (LCM(S4)14.3)

SP Paper 276 (Web Only)

EET/S4/13/R3

3rd Report, 2013 (Session 4)

Legislative Consent Memorandum on the Enterprise and Regulatory Reform Bill (LCM(S4)14.3)

Remit and membership

Remit:

The remit of the Committee is to consider and report on the Scottish economy, enterprise, energy, tourism and renewables and all other matters within the responsibility of the Cabinet Secretary for Finance, Employment and Sustainable Growth apart from those covered by the remit of the Local Government and Regeneration Committee and matters relating to the Cities Strategy falling within the responsibility of the Cabinet Secretary for Health, Wellbeing and Cities Strategy.

Membership:

Marco Biagi
Chic Brodie
Murdo Fraser (Convener)
Rhoda Grant
Alison Johnstone
Mike MacKenzie
Margaret McDougall
Dennis Robertson (Deputy Convener)
David Torrance

Committee Clerking Team:

Clerk to the Committee
Jane Williams

Senior Assistant Clerk
Katy Orr

Assistant Clerk
Diane Barr

Committee Assistant
Vikki Little

Legislative Consent Memorandum on the Enterprise and Regulatory Reform Bill (LCM(S4)14.3)

The Committee reports to the Parliament as follows—

BACKGROUND

1. The UK Enterprise and Regulatory Reform Bill (“the Bill”) was introduced to the House of Commons on 23 May 2012.

2. The Bill will make provision on various issues including: the UK Green Investment Bank (GIB); employment law; establishment of the Competition and Markets Authority and abolition of the Competition Commission and the Office of Fair Trading; amendment of the Competition Act 1998 and the Enterprise Act 2002; the reduction of legislative burdens; copyright and rights in performances; to make provision about payments to company directors; and for connected purposes.

LEGISLATIVE CONSENT MEMORANDUM

3. The Minister for Energy, Enterprise and Tourism lodged a Legislative Consent Memorandum1 (LCM) on the Bill on 28 February 2013. The LCM includes a draft legislative consent motion, to be lodged by the Minister for Energy, Enterprise and Tourism:

“That the Parliament agrees that the relevant provisions of the amendment to the UK Enterprise and Regulatory Reform Bill, tabled in the House of Lords on 25 February 2013, relating to the power to add to supplies protected under the Insolvency Act 1986, so far as these matters fall within the legislative competence of the Scottish Parliament, should be considered by the UK Parliament.”

4. The provisions which relate to this LCM were tabled as an amendment to the Bill in the House of Lords on 25 February 2013. The amendment relates to the continuity of supply and service of IT services to insolvent companies.

5. The amendment will give the Secretary of State the power to make an Order that amends sections 233 and 372 of the Insolvency Act 1986 to extend the list of suppliers to which the sections apply to include the supply of goods and services relating to electronic means. In effect, this means that suppliers of goods and services relating to electronic means can seek a personal guarantee from an insolvency practitioner before continuing to supply an insolvent business and prevent such suppliers from demanding that pre-insolvency arrears are cleared as a condition of continuing supply, which can hamper the operation of a business in insolvency.

6. This amendment requires a LCM as although the Westminster Parliament has powers to make changes to insolvency proceedings, the reservation does not extend to receiverships, which fall within the legislative competence of the Scottish Parliament. Therefore, the legislative consent of the Scottish Parliament is required to allow the provision which the changes to section 233 will make for receiverships to extend to Scotland

7. A previous LCM was passed for the Green Investment Bank provisions of the Bill on 18 September 2012 and a supplementary LCM was passed for the midata provisions of the Bill on 19 February 2013.

Committee Consideration

8. The Parliamentary Bureau referred the LCM to the Economy, Energy and Tourism Committee on 5 March 2013. The Committee considered the LCM at its meeting on 6 March 2013 and raised no significant concerns.

Recommendation

9. The Committee recommends that the Parliament approve the motion on the Enterprise and Regulatory Reform Bill.

ANNEXE A: EXTRACT FROM THE MINUTES OF THE ECONOMY, ENERGY AND TOURISM COMITTEE

8th Meeting, 2013 (Session 4), Wednesday 6 March 2013

5. Enterprise and Regulatory Reform Bill (UK Parliament legislation): The Committee considered the legislative consent memorandum lodged by the Minister for Energy, Enterprise and Tourism (LCM(S4)14.3) and agreed to recommend that Parliament approve the motion on Enterprise and Regulatory Reform Bill.

6. Enterprise and Regulatory Reform Bill (UK Parliament legislation) (in private): The Committee agreed its report.


Footnotes:

1 http://www.scottish.parliament.uk/LegislativeConsentMemoranda/UKGovernmentAmendmentBillLCM.pdf

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