Commons Bill [HL]

My Lords, as we stated during the debate in Committee when we discussed this issue, an association may be wound up for a number of reasons and we must be able to provide for the transfer of its assets and liabilities in a range of circumstances. An association will undoubtedly have some assets—perhaps unspent fees or subscriptions from commoners, or property—and may have acquired rights of common that need to be dispersed. Of course, it may also have liabilities in the form of debts or outstanding obligations under agri-environment agreements. If an association is wound up, that must be done under the same procedure used to establish an association. Clause 37 describes that procedure, with its requirement for consultation and substantial support for the making of an order. In other words, interested parties in the association will have an opportunity to make representations about what should be done with the assets and liabilities of the association. There must be substantial support for the winding-up, just as there was for its establishment. An association will not be wound up without due regard to the interests of those involved in the association and the commons over which it has jurisdiction. In some cases, an association may be wound up to create a new association across a different grouping of commons or with completely different functions and representations of interest. The noble Duke recognised the possible need for such action in Committee. In such cases, it may well be entirely appropriate to transfer the assets of the old association across to the new one but, in other cases, it may not be appropriate to create a new association—if, for example, commoning activities ceased. In such a case, it is more likely that the property belonging to the association would be distributed among the participants of the association, in accordance with some generally agreed formula. Of course, that would happen only after the liabilities of the association had been settled. All the property of the association would not be transferred automatically to Natural England or some central government body. Similarly to liquidation for a company, those who had invested in the organisation would have a claim on any assets when it was wound up. The advantage of Clause 37, as we see it, is that it allows assets and liabilities to be transferred to a new association, if appropriate; to an existing commons association, if appropriate; or to any other person or body. We do not want to constrain that power, because it may be difficult to find an association willing to take on the assets, liabilities and responsibilities in question. There may be no neighbouring association established in the area and no prospect of an association being established in future. That is why we want maximum flexibility to transfer assets as best makes sense in all circumstances. That is why, although we absolutely appreciate the point behind the amendment, we cannot accept it and I invite the noble Duke to withdraw it.