Key Facts

• Amendment 55 proposes extending post-award referral powers to Scottish Ministers.
• The amendment also includes Welsh Ministers and Northern Ireland's Department for the Economy.
• Clause 60 currently gives exclusive power to the Secretary of State to refer subsidies or schemes to the Competition and Markets Authority after award.
• Amendment 57 would provide the Secretary of State with 20 working days after a subsidy is granted or a scheme is implemented.
• Amendment 56 addresses potential negative effects on competition or investment between the UK and territories outside the UK.
• Clause 60 allows post-award referrals if there's a risk of negative effects on competition or investment within the UK.
• Amendment 56 would allow referrals based on potential impact on international competition and investment.
• Current law requires subsidies to be entered in the database within six months, with tax measures having one year.
• Clause 61 addresses the reporting period for post-award referrals.
• New clause 3 provides CMA with power to investigate after a subsidy is given or scheme made if there may have been non-compliance.
• The CMA must direct public authorities to provide relevant assessments and evidence within 20 working days of a subsidy being awarded.
• New clause 3 proposes extending the CMA’s powers with regard to post-award referrals.
• The reporting period for the subsidy or scheme must be published within 30 working days by the CMA.
• Clause 61 sets out the process for the subsidy advice unit’s report following a post-award referral.
• Amendment 4 modifies paragraph (b) in clause 62.
• The amendment aims for consistency with the content of the pre-award report required under clause 59.
• Government amendment 5 is discussed alongside.
• Amendment 4 removes provision for optional advice on changes required to mitigate distortive effects of a subsidy or scheme in post-award referrals.
• Clause 62 specifies content requirements for reports by the Subsidy Advice Unit on subsidies referred by the Secretary of State after being given or made.
• The Bill currently carves nuclear energy subsidies out of the referral provisions, but the Government now supports including them under subsidy control principles.
• £3.5 billion-worth of covid-19 contracts were awarded to firms with links to the Conservative party.
• The clause exempts subsidies under schemes from review, post-award referrals and voluntary referrals.
• Clause 63 has been ordered to stand part of the Bill.
• Amendments 59 and 60 aim to remove exemptions for streamlined subsidy schemes and minimal financial assistance.
• The government amendment 5 acknowledges that nuclear energy subsidies should not be exempt from due scrutiny.
• Professor Rickard's testimony emphasizes the importance of transparency in ensuring consistency and accountability.
• Clause 64 provides exemptions from some or all provisions on the referral of subsidies and schemes to the SAU.
• Streamlined subsidy schemes will be subject to additional scrutiny through other means, developed by engagement with experts and public authorities, and laid before Parliament.
• Subsidies below £315,000 are exempted from the subsidy control requirements as they are unlikely to cause serious distortions of competition.
• Clause 64 provides exemptions from provisions of chapter 1 of part 4.
• Subsection (3) confers a reserve power on the Secretary of State for urgent and exceptional circumstances.
• The amendment has been debated and agreed upon by the Committee.