Commercial Rent (Coronavirus) Bill — House of Commons, 2022-01-12
Topic: Housing
Seema Malhotra-Saluja (Labour, Centre-left): On the basis of the Minister’s comments, particularly those relating to ongoing review, and other comments relating to the amendments, I beg to ask leave to withdraw new clause 1 Clause, by leave, withdrawn. Clause 2 "Rent" and "business tenancy" Amendments made: 1, page 2, line 19, leave out sub-paragraph (ii) and insert— (ii) which is a fixed amount or an amount that varies or may vary according to the relevant costs (or a combination of the two)," This amendment clarifies that the expression "service charge" includes any amount payable under the terms of a tenancy for something mentioned in clause 2(2)(c)(i), whether it is a fixed amount or a variable amount (or a combination of a fixed part and a variable part). Amendment 2, page 2, line 22, leave out from "costs"" to "in" and insert "includes costs incurred by the landlord in connection with insuring against loss of rent or" This amendment clarifies that the costs of insurance against loss of rent are within the expression "service charge", in addition to insurance costs relating to the demised premises and any common parts. Clause 10 Requirements for making a reference to arbitration Amendment made: 3, page 8, line 12, at end insert "(as well as to companies)." This is a drafting amendment to make clear that clause 10(6) (which applies provisions of the clause to LLPs) operates in addition to the rest of the clause Clause 19 Arbitration fees and expenses Amendments made: 4, page 12, leave out lines 14 to 18 and insert "(subject to subsection (5A)) also make an award requiring the other party to reimburse the applicant for half the arbitration fees paid under subsection (4) ‘(5A) The general rule in subsection (5) does not apply if the arbitrator considers it more appropriate in the circumstances of the case to award a different proportion (which may be zero).’" This amendment clarifies that the rule in the current clause 19(5)(a) (that the party paying the arbitration fees is to be reimbursed half of the amount) is the general rule, although the arbitrator is able to determine a different proportion, including zero, where appropriate. Amendment 5, page 12, line 19, leave out "Otherwise" and insert "Except as provided by subsection (5) and section 20(6)," This corrects a small error in clause 19(6). The word "Otherwise" at the start of clause 19(6) currently refers back to clause 19(5), but it also needs to take account of the provisions of clause 20(6) which makes provision corresponding to clause 19(5) for oral hearing fees. Amendment 6, page 12, line 19, at end insert — "(6A) Legal or other costs incurred in connection with arbitration (including arbitration fees) are not recoverable by virtue of any term of the business tenancy concerned." The amendment clarifies that arbitration costs are not recoverable under a tenancy term enabling recovery of enforcement costs relating to a breach of covenant under the tenancy. The parties’ rights and obligations in relation to arbitration costs are governed by clauses 19 and 20. Clause 20 Oral hearings Amendment made: 7, page 12, leave out lines 36 to 40 and insert "(subject to subsection (6A)) also make an award requiring the other party to reimburse the applicant for half the hearing fees ‘(6A) The general rule in subsection (6) does not apply if the arbitrator considers it more appropriate in all the circumstances to award a different proportion (which may be zero).’" This amendment clarifies that the rule in the current clause 20(6)(a) (that the party paying the oral hearing fees is to be reimbursed half of the amount) is the general rule, although the arbitrator is able to determine a different proportion, including zero, where appropriate. Clause 24 Temporary restriction on initiating certain insolvency arrangements Amendment made: 8, page 14, line 37, at end insert "(as well as to companies)." This is a drafting amendment to make clear that clause 24(4) (which applies provisions of the clause to LLPs) operates in addition to the rest of the clause. Clause 28 Power to make corresponding provision in Northern Ireland Amendment made: 18, page 15, line 33, leave out clause 28 The responsible Northern Ireland minister has informed Her Majesty’s Government that the powers to be conferred by clause 28 are no longer needed. This amendment would omit the clause, which would otherwise require the approval of a Legislative Consent Motion in the Northern Ireland Assembly. Clause 30 Extent, Commencement and Short Title Amendments made: 19, page 16, leave out lines 14 and 15 The reference in clause 30(2) to clause 28 is no longer correct if clause 28 is left out of the Bill. The rest of clause 30(2) (which provides that Part 4 of the Bill extends to the whole of the UK) is reproduced in Amendment 20, so the whole of clause 30(2) can be omitted. Amendment 20, page 16, leave out lines 18 and 19 and insert— "(a) in section 24— (i) subsections (1), (2)(c) and (3), and (ii) subsection (4) so far as relating to a compromise or arrangement under section 899 or 901F of the Companies Act 2006, (b) Part 1 so far as relating to the provisions mentioned in paragraph (a), and (c) this Part." This amendment and Amendment 21 secure that clause 24(4) extends to Northern Ireland in relation to company compromises and arrangements, but not company voluntary arrangements. This is for consistency with the extent of the legislation covering those matters. Amendment 21, page 16, leave out line 21 and insert— "(a) in section 24— (i) subsection (2)(a), and (ii) subsection (4) so far as relating to a company voluntary arrangement,".—(Paul Scully.) See the explanatory statement for Amendment 20. Third Reading Queen’s consent signified.