3Breach of directions: power to take control of assets

section 3 1 + (1)This section applies if the Secretary of State considers that—

section 3 1 a + (a)a steel undertaking, or a relevant person in relation to that undertaking, has failed or is failing to comply (wholly or in part) with a direction given under section 2, or

section 3 1 b + (b)there is a risk that—

section 3 1 b i + (i)the undertaking or person might so fail, or

section 3 1 b ii + (ii)the purposes for which the direction under that section was given will be frustrated (to any extent by any person).

section 3 2 + (2)The Secretary of State may do anything for the purpose of securing the continued and safe use of the specified assets that the steel undertaking, or any relevant person in relation to that undertaking, could do.

section 3 3 + (3)Anything done by virtue of subsection (2) is to be treated for all purposes as done by the steel undertaking (unless otherwise specified in writing by the Secretary of State).

section 3 4 + (4)The powers exercisable by the Secretary of State by virtue of subsection (2) include (for example)—

section 3 4 a + (a)entering, using force if necessary, the premises where the specified assets are situated (and the Secretary of State may for that purpose be accompanied by any person);

section 3 4 b + (b)preventing the disposal of, or other dealings in respect of, the specified assets;

section 3 4 c + (c)taking whatever steps the Secretary of State considers appropriate for the purposes of securing the continued and safe use of the specified assets;

section 3 4 d + (d)requiring any person on the premises, or any other person who has dealings with the specified assets or with the steel undertaking, to give whatever assistance the Secretary of State may reasonably require for the purposes of taking those steps.

section 3 5 + (5)The steps that may be taken under subsection (4)(c) include (for example)—

section 3 5 a + (a)entering into agreements, including contracts of employment;

section 3 5 b + (b)appointing officers of the steel undertaking;

section 3 5 c + (c)exercising any function of management;

section 3 5 d + (d)the making of loans or the giving of other financial assistance;

section 3 5 e + (e)the payment of salaries and other benefits to persons working for the steel undertaking.

section 3 6 + (6)Expenses incurred by the Secretary of State in, or in connection with, the exercise of powers under this section are recoverable as a debt due to the Crown from—

section 3 6 a + (a)the steel undertaking, or

section 3 6 b + (b)a group undertaking in relation to the steel undertaking.