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Subsidy Control Bill - Sitting 10

16 November 2021

Proposing MP
Aberdeen North
Type
Public Bill Committee

At a Glance

Issue Summary

The amendment proposes including devolved administrations as interested parties regarding subsidy decisions to ensure transparency and accountability in the subsidy control regime. The statement discusses the implications of the Subsidy Control Bill regarding who can intervene in subsidy decisions across different parts of the UK. Kirsty Blackman is questioning the scope of interested parties who can challenge subsidy decisions under the Subsidy Control Bill, focusing on whether devolved administrations like Scotland's can challenge subsidies that indirectly affect multiple businesses within their jurisdiction. The statement discusses amendments related to extending the time limit for challenging a subsidy decision when a public authority has failed to comply with its transparency duties. The statement discusses extending the period for interested parties to submit applications for review of subsidies under the Subsidy Control Bill. Kirsty Blackman discusses amendment 31 in clause 71, proposing to extend the period for challenging subsidy decisions from one month to six months. The statement discusses the transparency of recovery orders under the Subsidy Control Bill. The statement discusses the transparency and reporting of recovery orders made by the Competition Appeal Tribunal (CAT) under the Subsidy Control Bill. The statement discusses Clause 76 of the Subsidy Control Bill and proposes an amendment to ensure restrictions imposed on information are the minimum necessary. The statement discusses the Subsidy Control Bill's clause 76 and its provisions for pre-action information requests to public authorities. Kirsty Blackman inquires about the applicability of Clause 77 to subsidies below the de minimis threshold.

Action Requested

Kirsty Blackman requests that the Minister consider her proposed amendment to include Scottish Ministers, Welsh Ministers, and Northern Ireland's Department for Economy within the definition of 'interested party' to support their constituents. She suggests pressing the amendment if it is not addressed, emphasizing its importance for devolved administrations.

Key Facts

  • Amendment 23 aims to include devolved administrations as interested parties.
  • The Bill currently defines an 'interested party' as someone affected by a subsidy or the Secretary of State.
  • Kirsty Blackman argues that devolved institutions should be able to raise concerns even if they are not directly affected.
  • The Bill aims to prevent 'subsidy races'.
  • An interested party is defined as a person whose interests may be affected by the giving of the subsidy or the making of the subsidy scheme.
  • Amendment 23 seeks to include those with indirect interests on behalf of their constituents in being able to refer subsidy decisions.
  • The clause allows interested parties to challenge subsidy decisions at the Competition Appeal Tribunal (CAT).
  • An 'interested party' is defined as any person whose interests may be affected by the decision.
  • Devolved Administrations have responsibilities that could make them interested parties under the definition provided in the Bill.
  • Amendment 74 proposes inserting a clause excepting subsection (1A).
  • Amendment 75 introduces a new section allowing six months for challenges if public authorities fail their duties under section 33(1).
  • The Government believes the current one-month time limit provides sufficient challenge period and does not support extending it.
  • Amendment would extend submission period for review of subsidies from 'one month' to 'three months'.
  • Public authorities have six months or a year to publish subsidies on the database.
  • Pre-action information request allows public authority up to 28 days to respond, extending limitation period in practice to two or three months.
  • Amendment 31 in clause 71 proposes to change 'one month' to 'six months'.
  • The amendment aims to allow the Competition Appeal Tribunal (CAT) more time to refer cases.
  • Blackman states that other amendments and comments have been made regarding this issue, indicating a broader consideration of challenge periods.
  • The amendment would require the CMA’s annual report to include details of all recovery orders made in that year.
  • Recovery orders will be made public by their nature, according to the Minister's statement.
  • Recovery orders are made by the CAT when public authorities breach subsidy control principles.
  • The hearing about Newcastle United’s takeover was viewed by 35,000 people.
  • More viewers watched the hearing than attend average games of most Premier League teams.
  • The Competition Appeal Tribunal publishes recovery order details on its website.
  • Clause 76 imposes a duty on public authorities to provide information about subsidies or schemes.
  • Interested parties can request information for deciding whether to apply for a review of a subsidy or scheme.
  • Public authorities must respond within 28 days and may impose restrictions to protect sensitive information.
  • Clause 76 puts a duty on public authorities to provide certain information upon request about their decision to give a subsidy or make a subsidy scheme.
  • Public authorities must respond within 28 calendar days but can impose proportionate restrictions for sensitive, confidential, or legally privileged information.
  • The Minister believes that the risk of misuse is small and existing judicial review routes are sufficient without creating a special route of appeal.
  • Clause 77 confers public authorities the right to recover a subsidy used for an unintended purpose.
  • Public authorities determine if a subsidy complies with the Bill's principles and references the intended use of the subsidy.
  • The clause aims to avoid uncertainty by providing a legal basis for recovering misused subsidies.
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