The Deregulation (Restrictive Trade Practices Act 1976) (Amendment) (Variation of Exempt Agreements) Order 1996

Variation of agreements approved under section 29 of the Restrictive Trade Practices Act 1976

2.—(1) Section 29 of the Restrictive Trade Practices Act 1976 (which provides for certain agreements important to the national economy to be exempt from registration under the Act if approved by the Secretary of State) shall be amended as follows.

(2) After subsection (5) there shall be inserted—

“(5A) If an agreement approved by an order under this section is subsequently varied—

(a) the approval shall be treated as extending to the agreement as varied, but

(b) the order shall cease to have effect unless the Secretary of State receives particulars of the variation before the end of the period of 21 days from the day of the variation.

(5B) The particulars to be given for the purposes of subsection (5A)(b) above shall—

(a) in so far as the variation is made by an instrument in writing, be given by producing the original or a true copy of the instrument, and

(b) in so far as the variation is not so made, be given by producing a memorandum in writing signed by a party to the agreement.

(5C) Where the Secretary of State receives under subsection (5A)(b) above particulars of a variation of an agreement approved by an order under this section, he shall consider whether the agreement should cease to be approved for the purposes of this section as a result of the variation and give notice of his decision to each of the parties to the agreement within 28 days of receipt of the particulars.

(5D) Where the Secretary of State has decided under subsection (5C) above that an agreement should cease to be approved for the purposes of this section and has given notice under that subsection of his decision, he may by order revoke the order under this section approving the agreement, but only after the end of the period of 28 days beginning with the date of the notice.

(5E) If, when the Secretary of State receives particulars of a variation under subsection (5A)(b) above, he is already engaged in a consideration under subsection (5C) above of the agreement concerned—

(a) he shall discontinue his existing consideration, and

(b) that subsection, in its application by virtue of his receipt of the further particulars, shall have effect to require him to consider the combined effect of the variation which was the subject of that consideration and the variation to which those particulars relate.

(5F) If, when the Secretary of State receives particulars of a variation under subsection (5A)(b) above, he has given to the parties to the agreement concerned notice under subsection (5C) above of his decision that the agreement should cease to be approved for the purposes of this section, but has not yet revoked the order under this section approving it—

(a) the power conferred by subsection (5D) shall not become, or shall cease to be, exercisable by virtue of that notice, and

(b) subsection (5C) above, in its application by virtue of his receipt of the further particulars, shall have effect to require him to consider the combined effect of the variation which was the subject of that notice and the variation to which those particulars relate.

(5G) If the Secretary of State’s decision under subsection (5C) above is one in relation to which subsection (5E) or (5F) above applies, subsection (5D) above shall have effect as if the time limit imposed on the exercise of the power conferred by that subsection were the limit specified in subsection (5H) or, as the case may be, (5I) below.

(5H) Where none of the variations to which the Secretary of State’s decision relates has previously been the subject of a decision by virtue of which subsection (5D) above applied, the time limit is—

(a) the end of the period of 56 days beginning with the first date on which he received under subsection (5A)(b) above particulars of a variation to which his decision relates, or

(b) if earlier, the end of the period of 28 days beginning with the date of notice of his decision.

(5I) Where any variation to which the Secretary of State’s decision relates has previously been the subject of a decision by virtue of which subsection (5D) above applied, the time limit is that which applied on that occasion.”

(3) After subsection (6) there shall be inserted—

“(6A) In the case of an order under subsection (5D) above, references in subsection (6) above to the agreement to which the order relates shall be construed as references to the variation in consequence of which the order is made.

(6B) Where the Secretary of State gives notice under subsection (5C) above that he has decided that the agreement should not cease to be approved for the purposes of this section, he shall—

(a) lay before each House of Parliament a copy of the notice and of the variation to which the notice relates; and

(b) make available for public inspection a copy of the variation.”

(4) In subsection (7) (which disapplies publication requirements in relation to variations which the Secretary of State considers insignificant)—

(a) for “Subsection (6)” there shall be substituted “Subsection (6B)”; and

(b) paragraphs (a) and (b) are hereby repealed.