I beg to move Amendment No. 137, in page 49, line 8, at end insert:

'(1A) There shall be included among the rights and remedies which become rights and remedies of the Secretary of State in accordance with subsection (1)(a) above any right to be paid in priority to other creditors of the employer in accordance with—

(a) section 33 of the Bankruptcy Act 1914;

(b) section 118 of the Bankruptcy (Scotland) Act 1913; and

(c) section 319 of the Companies Act 1948, and the Secretary of State shall be entitled to be so paid in priority to any other unsatisfied claim of the employee; and in computing for the purposes of any of those provisions any limit on the amount of sums to be so paid any sums paid to the Secretary of State shall be treated as if they had been paid to the employee'.

The purpose of the amendment is to provide that the Secretary of State shall take over and retain the preferential rights of employment in respect of sums paid from the redundancy fund under the provisions of Clause 56.