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An Act to make provision with respect to certain matters connected with new towns; to amend paragraph 8(1) of Schedule 31 to the Local Government, Planning and Land Act 1980; and for connected purposes.
[11th March 1985.]
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
C1Act: transfer of functions (W.) (1.7.1999) by S.I. 1999/672, art. 2, Sch. 1
(1)Sections 36 and 37 of the M1New Towns Act 1981 (which define the Commission’s basic function of holding and turning to account new town property transferred to it and its other powers) shall be amended as provided in subsections (2) to (4) below.
(2)For section 36(1)
and (2) there shall be substituted the following subsections—
“(1)The purposes for which the Commission exists are—
(a)to take over and, with a view to its eventual disposal, to hold, manage and turn to account the property of development corporations transferred to the Commission under this Act, and
(b)as soon as it considers it expedient to do so, to dispose of property so transferred and any other property held by it,
due regard being had to the considerations specified in subsection (2) below.
(2)Those considerations, in relation to any new town, are—
(a)the convenience and welfare of persons residing, working or carrying on business there, and
(b)until disposal, the maintenance and enhancement of the value of the land held and the return obtained from it.”
(3)In section 36(3), for the words “the purpose" there shall be substituted the words “any of the purposes" and—
(a)in paragraph (b), the words from “with the approval" to “Treasury" shall be omitted and for the words from “water" onwards there shall be substituted the following—
“(i)roads;
(ii)water supplies;
(iii)gas or electricity services; or
(iv)sewerage or sewage disposal services;”; and
(b)paragraph (d) shall be omitted.
(4)For section 37(3) there shall be substituted the following subsection—
“(3)The Commission shall not by virtue of section 36 above—
(a)acquire land or any interest or rights in or over land,
(b)make contributions towards the cost of providing amenities, supplies or services,
(c)make loans or advances or give guarantees,
(d)develop land otherwise than in accordance with proposals submitted to and approved by the Secretary of State, or
(e)dispose of any property by way of gift or for a consideration which is less than the best reasonably obtainable,
except under the general or special authority of the Secretary of State.”
In Schedule 9 to the M1New Towns Act 1981, after paragraph 6, there shall be added the following paragraph—
“7(1)If at any time it appears to the Secretary of State that the purposes for which the Commission exists under this Act have been substantially achieved, he may, by order, on such day as he may appoint—
(a)terminate the exercise by the Commission of its functions except for the purpose of winding-up its affairs;
(b)vest in himself, any other Minister of the Crown or any accountable public authority any property, rights, liabilities or obligations of the Commissions;
(c)extinguish any liability of the Commission in respect of money lent or advanced at any time by the Secretary of State to any development corporation or to the Commission;
(d)dissolve the Commission
(2)Different days may be appointed for different purposes of this paragraph.
(3)Any order under this paragraph may include such incidental, supplemental, consequential or transitional provisions as the Secretary of State thinks fit, including amendments of and repeals in this Act so far as it relates to the Commission.
(4)Any sums arising out of the vesting of property or out of property vested in a Minister of the Crown by an order under this paragraph shall be paid into the Consolidated Fund and any sums required to meet any liabilities assumed or incurred by a Minister of the Crown or to defray any expenditure of his in connection with the management of property so vested in him shall be paid out of money provided by Parliament.
(5)No order containing provision for the purpose specified in sub-paragraph (1)(c) above shall be made without the consent of the Treasury; but if such provision is made the assets of the National Loans Fund shall be reduced by the aggregate amount by which the liabilities of the Commission are thereby reduced.
(6)No order under this paragraph containing provision for the purpose specified in sub-paragraph (1)(a) or (c) above shall be made unless a draft of it has been laid before Parliament and approved by resolution of each House.
(7)In this paragraph “accountable public authority" means any statutory corporation a majority of the members of which are appointed by a Minister of the Crown.”
(1)In section 44 of the M1New Towns Act 1981 (contents of schemes for the transfer of dwellings and associated property, etc., to district councils)—
(a)in subsection (7), paragraphs (b) and (d) and the word “and" at the end of paragraph (c) shall be omitted; and
(b)after subsection (7) there shall be inserted the following subsections—
“(7A)A transfer scheme may—
(a)confer on the new town corporation a right, subject to subsection (7B) below, to nominate tenants of Housing Act dwellings of the district council (whether transferred or not and including any which are the subject of management arrangements) and specify the number or proportion of dwellings in respect of which the right is so conferred and the period of which it is to be exercisable;
(b)contain information about the effect of thescheme on existing staff of the parties concerned and state proposals for staffing arrangements following the transfer and the protection of existing staff.
(7B)The corporation’s right of nominating tenants shall be exercisable during the following period or periods—
(a)where the corporation are a development corporation, a period beginning with the date on which their interest in the transferred dwellings vests in the district council and ending with the date which is the transfer date for the purposes of Schedule 10 to this Act,
(b)where the corporation are the Commission and the dwellings in question were transferred from the development corporation to the district council, a period of 5 years beginning with that transfer date,
(c)where the corporation are the Commission and the dwellings in question were transferred from them to the district council, the period of 5 years beginning with the date on which the Commission’s interest in the transferred dwellings vests in the district council,
or, in a case falling within paragraph (b) or (c) above, during such shorter period as may be agreed.”
(2)In section 47(1) of that Act (statutory vesting of property, etc. and date thereof), in paragraph (a), for the words “1st April" there shall be substituted the words “1st January, 1st April, 1st July or 1st October".
(3)In section 57 of that Act (definitions), after the definition of “dwelling of a new town", there shall be inserted the following—
“ “Housing Act dwelling", with reference to a district council, means a dwelling provided (or treated by section 47(6) above as provided) by the council under Part V of the M2Housing Act 1957;".]
F1Ss. 3, 4, Sch. 2 para. 2, Sch. 3 para. 7 repealed (prosp.) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 194(4), 195(2), Sch. 12 Pt. II
M11981 c. 64.
M21957 c. 56.
After section 51 of the M1New Towns Act 1981 there shall be inserted the following section—
(1)The Secretary of State may, with the Treasury’s consent, make, out of money provided by Parliament, grants to any district council which has done accepted remedial work on dwellings or land—
(a)which were or was transferred to the council before 1st April 1981 under a 1976 Act transfer scheme, or
(b)with respect to which obligations were assumed by the council before that date under management arrangements included in such a scheme,
towards the cost of doing the work and providing alternative accommodation or meeting other incidental expenditure.
(2)In making a grant to a council under this section the Secretary of State may impose such conditions as he thinks fit, including—
(a)conditions for the repayment of grant, and
(b)conditions for the payment to him of any portion of any sums received by the council in respect of the defects which gave rise to the work.
(3)Any sums received by the Secretary of State under subsection (2) above shall be paid by him into the Consolidated Fund.
(4)In this section—
“accepted remedial work" means work for the purpose of remedying defects in transferred dwellings which, before it is done, is accepted by the Secretary of State as eligible for financial assistance out of public funds; and
“a 1976 Act transfer scheme" means a transfer scheme under the provisions of the New Towns (Amendment) Act 1976 re-enacted in section 42 above and the other provisions of this Part; and references to transferred dwellings, transferred land and management arrangements shall be construed accordingly.”]
F1Ss. 3, 4, Sch. 2 para. 2, Sch. 3 para. 7 repealed (prosp.) by Local Government and Housing Act 1989 (c. 42, SIF 81:1), s. 194(4), 195(2), Sch. 12 Pt. II
M11981 c. 64.
(1)Except to the extent of the saving in subsection (2) below—
(a)the obligation imposed on the Secretary of State by section 54(4) of the M1New Towns Act 1981 (duty to make staff compensation regulations) shall be treated as having ceased to have effect on 7th November 1984, and
(b)the staff compensation regulations (which were made under section 24 of the M2Superannuation Act 1972 in pursuance of the obligation referred to in paragraph (a) above) shall be deemed to have been revoked for all purposes on that date.
(2)Nothing in subsection (1) above shall affect the staff compensation regulations or the Secretary of State’s obligation to keep them in being as regards persons who are affected by transfer schemes approved before the date specified in subsection (1) above; and the Secretary of State may after that date amend the regulations under the said section 24 in their application to such persons
(3)In this section—
“the staff compensation regulations" means the M3New Towns Transfer Schemes (Compensation) Regulations 1977;
“transfer scheme" means a scheme made under section 42 of the New Towns Act 1981 or under section 1 of the New Towns (Amendment) Act 1976.
After section 58 of the M1New Towns Act 1981 there shall be inserted the following section—
(1)For the purpose of enabling a development corporation—
(a)to meet expenditure properly chargeable to capital account and incurred or to be incurred in providing, or in making contributions towards the cost to others of providing, any of the facilities specified in subsection (2) below, or
(b)to make good to revenue account sums applied in meeting liabilities so chargeable and arising out of the provision of any of those facilities,
the Secretary of State may, out of money provided by Parliament, make grants to the corporation of such amount as may be approved by the Treasury.
The facilities referred to in subsection (1) above are the following—
(a)roads, paths, bridges and car parks;
(b)public open spaces, recreation grounds, playgrounds and landscaping;
(c)meeting halls and assembly rooms;
(d)any other facilities similar to those specified in paragraph (a), (b) or (c) above.
(3)For the purpose of enabling a development corporation to meet expenditure properly chargeable to revenue account the Secretary of State may, out of money provided by Parliament, make grants to the corporation of such amount as may be approved by the Treasury.
(4)For the purpose of enabling the Commission—
(a)to meet expenditure, or liabilities in respect of expenditure, properly chargeable to capital account and incurred or to be incurred in providing, or in making contributions towards the cost to others of providing, any of the facilities specified in subsection (2) above, or
(b)to make good to revenue account sums applied in meeting liabilities so chargeable and arising out of the provision of any of those facilities,
the Secretary of State may, out of money provided by Parliament, make grants to the Commission of such amount as may be approved by the Treasury.
(5)For the purpose of enabling the Commission to meet any housing expenditure the Secretary of State may, out of money provided by Parliament, make grants to the Commission of such amount as may be approved by the Treasury.”
(1)Section 60 of the M1New Towns Act 1981 (limit on borrowing, now standing at £5,000 million) shall be amended as follows.
(2)For the words before and after paragraphs (a) to (d) there shall be substituted respectively the following words, that is to say—
“(1)The aggregate of the amounts outstanding in respect of the principal of the following sums—”;
and—
“shall not at any time exceed the limit imposed by or under subsections (2) to (4) below.”
(3)After subsection (1) there shall be inserted the following subsections—
“(2)The said limit, except during the period specified in subsection (4) below, is £4,600 million or such greater sum not exceeding £5,250 million as the Secretary of State may by order specify.
(3)No order shall be made under subsection (2) above unless a draft of the order has been laid before, and approved by resolution of, the House of Commons.
(4)During the period beginning with the commencement of the New Towns and Urban Development Corporations Act 1985 and ending with 30th September 1986 the said limit is £5,250 million.”
(1)After section 62 of the New Towns Act 1981 there shall be inserted the following—
(1)The Secretary of State may, with the Treasury’s consent, by order extinguish to such extent as may be specified in the order any liabilities of a development corporation in respect of advances made by him to the corporation under section 58(1) or the corresponding provisions of the 1946 Act or the 1965 Act.
(2)The aggregate amount of liabilities extinguished by order under this section shall not exceed £1,750 million.
(3)Where liabilities are extinguished under this section the assets of the National Loans Fund shall be reduced by amounts corresponding to the liabilities so extinguished.
(4)No order shall be made under this section after 30th September 1986.
(5)No order shall be made under this section unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.
(6)In this section—
(a)“the 1946 Act" means the New Towns Act 1946 and the provision of it corresponding to section 58(1) is section 12(1); and
(b)“the 1965 Act" means the New Towns Act 1965 and the provision of it corresponding to section 58(1) is section 42(1).
(1)The Secretary of State may, with the Treasury’s consent, by order specify any new town development loan as a loan the repayment of which to the Secretary of State (and subsequently into the National Loans Fund) is to be suspended by virtue of this section for such period ("the period of suspension’) as is specified in the order.
(2)The power extends to new town development loans made to development corporations and to new town development loans made to the Commission.
(3)Where a loan is specified by an order under subsection (1) above—
(a)the terms of the loan shall have effect as if any payment by way of repayment of or interest on the loan which (apart from this section) would fall due at any time within the unexpired period for repayment of the loan fell due instead at the corresponding time within the period of the same duration beginning at the end of the period of suspension;
(b)no interest shall accrue in respect of the loan during the period of suspension; and
(c)the borrower shall assume during the period of suspension such obligations as the Secretary of State may impose by directions under the order as regards the achieving of financial objectives, the obtaining of his approval for proposed expenditure and the provision of information about the borrower’s present or future financial position.
(4)No order shall be made under subsection (1) above effecting a suspension of an outstanding loan of a development corporation if an order has been made under section 62A above extinguishing a liability of that development corporation.
(5)The aggregate amount of new town development loans suspended by order under subsection (1) above shall not exceed £950 million or such greater sum, not exceeding £1,300 million, as the Secretary of State may by order specify.
(6)No order shall be made under subsection (5) above unless a draft of it has been laid before, and approved by a resolution of, the House of Commons.
(7)No order shall be made under this section after 31st March 1996.
(8)In this section—
(a)“new town development loan" means—
(i)as regards a development corporation, any sum advanced by the Secretary of State to the corporation under section 58(1) above or the corresponding provisions of the 1946 Act or the 1965 Act;
(ii)as regards the Commission, any sum advanced by the Secretary of State to the Commission under section 58(5) above or the corresponding provisions of the 1959 Act or the 1965 Act or any new town development loan transferred from a development corporation to the Commission under Schedule 10 to this Act; and
(b)“the unexpired period for repayment of the loan", in relation to any loan specified by an order under this section, means the period beginning with the date specified in the order as the date of the beginning of the period of suspension and ending with the date which (apart from this section) would be the last date on which any payment by way of repayment of or interest on the loan would fall due under the terms of the loan.
(9)For the purposes of subsection (8)(a) above—
“the 1946 Act" means the New Towns Act 1946 and the provision of it corresponding to section 58(1) is section 12(1);
“the 1959 Act" means the New Towns Act 1959 and the provision of it corresponding to section 58(5) is section 3(1); and
“the 1965 Act" means the New Towns Act 1965 and the provisions of it corresponding to section 58(1) and section 58(5) are section 42(1) and section 42(4) respectively.”
(2)In section 77 of that Act (regulations and orders)—
(a)in subsection (3) (power to make orders under certain sections exercisable by statutory instrument etc.) for the words “and 60" in the first place where those words occur there shall be substituted the words “60, 62A and 62B"; and
(b)in subsection (4)(b) (statutory instruments under certain sections subject to negative procedure) for “or section 42" there shall be substituted “42 or 62B(1)".
New Towns and Urban Development Corporations Act 1985