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Part IV Miscellaneous and General

Establishment and functions of Education Assets Board

197 Education Assets Board

(1) There shall be established a body corporate to be known as the Education Assets Board.

(2) The Board shall consist of a chairman and not less than two nor more than ten other members appointed by the Secretary of State.

(3) In appointing the members of the Board the Secretary of State shall have regard to the desirability of including persons who appear to him to have experience of, and to have shown capacity in, property management, local government or education.

(4) The principal functions of the Board are those conferred or imposed on them under sections 198 to 201 of and Schedule 10 to this Act; and the Board may also undertake such other activities as they consider it necessary or expedient to undertake for the purposes of or in connection with carrying out any of their functions.

(5) The Secretary of State may make grants to the Board of such amounts and subject to such conditions as he may determine.

(6) In exercising their functions under this Act the Board shall comply with any directions given to them by the Secretary of State.

(7) Any local education authority shall give the Board such information as the Board may require for the purposes of the exercise of any of their functions under this Act.

(8) The Board shall not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown; and the Board’s property shall not be regarded as property of, or property held on behalf of, the Crown.

(9) Schedule 8 to this Act has effect with respect to the Board.

198 Transfers under Parts I and II

(1) This section applies to any transfer under section 74, 126 or 130 of this Act, and each of those sections is subject to Schedule 10 to this Act.

(2) That Schedule has effect for the purpose of—

(a) dividing and apportioning property, rights and liabilities which fall to be transferred under any transfer to which this section applies where that property has been used or held, or the rights or liabilities have been acquired or incurred, for the purposes of more than one school or other educational institution;

(b) excluding from transfer in certain circumstances property, rights and liabilities which would otherwise fall to be transferred under any such transfer;

(c) providing for identifying and defining the property, rights and liabilities which fall to be so transferred; and

(d) making supplementary and consequential provisions in relation to transfers to which this section applies.

(3) In carrying out the functions conferred or imposed on them by that Schedule, it shall be the duty of the Education Assets Board to secure that each transfer to which this section applies is, so far as practicable, fully effective on the date on which it takes effect under this Act.

(4) Where in accordance with that Schedule anything falls to be or may be done by the Board for the purposes of or in connection with any such transfer—

(a) it may not be done by the transferee; and

(b) in doing it the Board shall be regarded as acting on behalf and in the name of the transferee;

and in a case where the transferee is a body corporate established under this Act paragraph (b) above applies both in relation to things done before and in relation to things done after that body is established under this Act.

(5) Not later than the end of the period of six months beginning with the transfer date applicable in relation to any transfer to a higher education corporation under section 126 of this Act, the Board shall provide the Polytechnics and Colleges Funding Council with a written statement giving such particulars of all property, rights and liabilities transferred to that corporation as are then available to the Board.

(6) If in any case within subsection (5) above full particulars of all property, rights and liabilities transferred to the corporation concerned are not given in the statement required under that subsection, the Board shall provide that Council with a further written statement giving any such particulars omitted from the earlier statement as soon as it is possible for them to do so.

199 Loan liabilities excepted from transfer under Part II

(1) The amount of any liability of a local education authority in respect of the principal of any loan which is an excepted liability in relation to an institution to which this section applies shall be treated on and after the operative date as having been borrowed from that authority by the default on such terms as to repayment and the payment of interest as may be agreed between the Education Assets Board and the authority or determined by the Secretary of State under this section.

(2) This section applies to any institution conducted by a higher education corporation and any institution designated under section 129 of this Act; and in relation to any such institution—

(a) a liability is an excepted liability for the purposes of this section if it would have been transferred under section 126(3) but for subsection (5)(b) of that section or (as the case may be) under section 130(2) of this Act but for subsection (4)(a) of that section; and

(b) references, in relation to an excepted liability, to the default transferee and the operative date are references respectively to the body or persons to whom and the date on which that liability would have been so transferred.

(3) It shall be the duty of the authority and the Board, whether before or after the operative date, so far as practicable to arrive at such written agreements as may be necessary for determining the amount of any excepted liability and the terms to apply in relation to the liability imposed on the default transferee under this section by reference to that liability.

(4) Notwithstanding any terms agreed or determined as mentioned in subsection (1) above, any liability in respect of any sum treated by virtue of that subsection as having been borrowed from a local education authority may at any time be discharged by a single payment of a sum equal to the aggregate of—

(a) the amount of the principal of the loan outstanding at the time of the payment; and

(b) the amount of any interest accrued before that time.

(5) The Board shall notify the Secretary of State if it appears to them that it is unlikely the case of any matter on which agreement is required to be reached under subsection (3) above that such an agreement will be reached.

(6) Where the Secretary of State has received a notification from the Board under subsection (5) above he may, whether before or after the operative date, give a direction determining the matter, and may include in the direction any provision which might have been included in an agreement under subsection (3) above.

(7) The Secretary of State shall consult the authority before giving a direction under this section.

(8) The Board shall give the Secretary of State such assistance and advice as he may require for the purpose of determining any matter under this section.

(9) The Board shall deliver any agreement made under subsection (3) above to the default transferee.

(10) Any such agreement shall be treated as made between the authority and the default transferee.

200 Grant-maintained schools: school property

(1) The Secretary of State shall consult the Education Assets Board before making any determination to which this section applies; and it shall be the duty of the Board to give the Secretary of State such assistance and advice as he may require for the purpose of making any such determination.

(2) This section applies to—

(a) a determination for the purposes of section 95 of this Act of the appropriate consideration for any transfer of school property of a grant-maintained school conducted or formerly conducted by a governing body in liquidation;

(b) a determination for the purposes of section 98 of this Act of an amount representing the appropriate share of a local education authority in the value of the school premises of a grant-maintained school conducted or formerly conducted by such a body;

(c) a determination for the purposes of section 101(2) of this Act of the amount of any sum to be paid by such an authority by way of consideration for any premises required under that section to be transferred by the governing body of a grant-maintained school to the authority;

(d) a determination for the purposes of section 101(3) of this Act of the amount of any payment required under that section to be made to such an authority by a governing body of such a school; and

(e) a determination for the purposes of paragraph 8 of Schedule 1 to the [1946 c. 50.] Education Act 1946 of the amount required to be paid under that paragraph to such an authority from money paid in respect of the acquisition of premises from the trustees of a grant-maintained school.

(3) Expressions used in this section to which a meaning is given for the purposes of Chapter IV of Part I of this Act have the same meaning in this section.

201 Wrongful disposals

(1) This section applies where a local education authority have made any disposal to which section 137 of this Act applies in contravention of that section (referred to below in this section as a wrongful disposal).

(2) Where a wrongful disposal consists in entering into a contract to dispose of any land or to grant or dispose of any interest in land, the Education Assets Board may by a notice in writing served on the other party to the contract repudiate the contract at any time before the conveyance or grant of the land or interest in land to which it relates is completed or executed.

(3) Where a wrongful disposal consists in granting an option to acquire any land or any interest in land, the Education Assets Board may by a notice in writing served on the option holder repudiate the option at any time before it is exercised.

(4) A repudiation under subsection (2) or (3) above shall have effect as if made by the local education authority concerned.

(5) Where a wrongful disposal consists in granting or disposing of any interest in land (whether or not in pursuance of any earlier disposal of a description falling within subsection (2) or (3) above)—

(a) the Education Assets Board may be authorised by the Secretary of State to purchase compulsorily the interest in land which was the subject of the disposal; and

(b) whether or not the Education Assets Board is so authorised, any sums which, apart from this provision, would fall to be included by reference to that disposal in the capital receipts of the local education authority concerned for the purposes of Part VIII of the [1980 c. 65.] Local Government, Planning and Land Act 1980 shall not be so included.

(6) The [1981 c. 67.] Acquisition of Land Act 1981 shall apply in relation to the compulsory purchase of land under subsection (5) above as if references in sections 12 and 13 of that Act to every owner of the land included references to the local education authority concerned.

(7) On completion of a compulsory purchase under that subsection of any interest in land, the Education Assets Board shall convey that interest to the appropriate transferee.

(8) In subsection (7) above, “the appropriate transferee” means—

(a) where the interest disposed of, or the land in which the interest was granted, was—

(i) used or held by the local education authority concerned for the purposes of an institution falling within section 121(2) of this Act; or

(ii) obtained by that authority for the purpose of being so used or held;

the higher education corporation established under this Act to conduct that institution; and

(b) where the interest disposed of, or the land in which the interest was granted, was—

(i) so used or held for the purposes of an institution falling within section 129(3) of this Act; or

(ii) obtained by the authority concerned for the purpose of being so used or held;

the appropriate transferee within the meaning of section 130(2) of this Act in relation to that institution.

(9) Where the Education Assets Board acquire any interest in land by a compulsory purchase under subsection (5) above the Board shall be entitled to recover from the local education authority concerned an amount equal to the aggregate of—

(a) the amount of compensation agreed or awarded in respect of that purchase, together with any interest payable by the Board in respect of that compensation in accordance with section 11 of the [1965 c. 56.] Compulsory Purchase Act 1965; and

(b) the amount of the costs and expenses incurred by the Board in connection with the making of the compulsory purchase order.

Academic tenure

202 The University Commissioners

(1) There shall be a body of Commissioners known as the University Commissioners (in this section and sections 203 to 207 of this Act referred to as “the Commissioners”) who shall exercise, in accordance with subsection (2) below, in relation to qualifying institutions, the functions assigned to them by those sections.

(2) In exercising those functions, the Commissioners shall have regard to the need—

(a) to ensure that academic staff have freedom within the law to question and test received wisdom, and to put forward new ideas and controversial or unpopular opinions, without placing themselves in jeopardy of losing their jobs or privileges they may have at their institutions;

(b) to enable qualifying institutions to provide education, promote learning and engage in research efficiently and economically; and

(c) to apply the principles of justice and fairness.

(3) The following are qualifying institutions for the purposes of this section and sections 203 to 206 of this Act, namely—

(a) any university or other institution to which, during the period of three years beginning 1st August 1987, grants in aid are or have been made by the Universities Funding Council, or by the Secretary of State acting on the advice of the University Grants Committee;

(b) any constituent college, school or hall or other institution of a university falling within paragraph (a) above; and

(c) any institution not falling within paragraph (a) above which is authorised by charter to grant degrees and to which, during the period of three years beginning 1st August 1987, grants are or have been made by the Secretary of State.

(4) Schedule 11 to this Act shall have effect with respect to the Commissioners.

203 Duty of Commissioners

(1) The Commissioners shall exercise the powers conferred by section 204 of this Act with a view to securing that the statutes of each qualifying institution include—

(a) provision enabling an appropriate body, or any delegate of such a body, to dismiss any member of the academic staff by reason of redundancy;

(b) provision enabling an appropriate officer, or any delegate of such an officer, acting in accordance with procedures determined by the Commissioners, to dismiss any member of the academic staff for good cause;

(c) provision establishing disciplinary procedures determined by the Commissioners for dealing with any complaints made against any member of the academic staff relating to his appointment or employment;

(d) provision establishing procedures determined by the Commissioners for hearing and determining appeals by any members of the academic staff who are dismissed or under notice of dismissal (whether or not in pursuance of such provision as is mentioned in paragraph (a) or (b) above) or who are otherwise disciplined; and

(e) provision establishing procedures determined by the Commissioners for affording to any member of the academic staff opportunities for seeking redress for any grievances relating to his appointment or employment.

(2) No provision such as is mentioned in subsection (1)(a) or (b) above which is included in the statutes of a qualifying institution by virtue of section 204 of this Act shall enable any member of the academic staff to be dismissed unless the reason for his dismissal may in the circumstances (including the size and administrative resources of the institution) reasonably be treated as a sufficient reason for dismissing him.

(3) Where any such provision as is mentioned in subsection (1) above is included in the statutes of a qualifying institution (whether by virtue of section 204 of this Act or otherwise) and—

(a) there is no requirement for any instrument which would have the effect of modifying the provision to be approved by Her Majesty in Council or to be laid before both Houses of Parliament; and

(b) but for this subsection, there would be no requirement for such an instrument to be approved by the Privy Council;

the Commissioners shall exercise the powers conferred by that section with a view to securing that no instrument which would have the effect of modifying the provision shall have that effect unless it has been approved by the Privy Council.

(4) Any reference in this section to academic staff includes a reference to persons whose terms of appointment or contracts of employment are, in the opinion of the Commissioners, so similar to those of academic staff as to justify their being treated as academic staff for the purposes of this section.

(5) For the purposes of this section the dismissal of a member of staff shall be taken to be a dismissal by reason of redundancy if it is attributable wholly or mainly to—

(a) the fact that the institution has ceased, or intends to cease, to carry on the activity for the purposes of which he was appointed or employed by the institution, or has ceased, or intends to cease, to carry on that activity in the place in which he carried out his work; or

(b) the fact that the requirements of that activity for members of staff to carry out work of a particular kind, or for members of staff to carry out work of a particular kind in that place, have ceased or diminished or are expected to cease or diminish.

(6) For the purposes of this section “good cause”, in relation to a member of the academic staff of a qualifying institution, means a reason which is related to his conduct or to his capability or qualifications for performing work of the kind which he was appointed or employed to do; and in this subsection—

(a) “capability”, in relation to such a member, means capability assessed by reference to skill, aptitude, health or any other physical or mental quality; and

(b) “qualifications”, in relation to such a member, means any degree, diploma or other academic, technical or professional qualification relevant to the office or position held by him.

(7) In this section—

  • “appropriate”, in relation to a body or officer of a qualifying institution, means appearing to the Commissioners to be appropriate having regard to the nature and circumstances of the institution;

  • “dismiss” and “dismissal”—

    (a)

    include remove or, as the case may be, removal from office; and

    (b)

    in relation to employment under a contract, shall be construed in accordance with section 55 of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978.

(8) In this section and sections 204 to 206 of this Act “statutes”, in relation to an institution, includes any regulations, ordinances or other instruments which, in the opinion of the Commissioners, serve as statutes for the purposes of that institution and are designated as such by the Commissioners.

204 Powers of Commissioners

(1) For the purpose of performing the duty imposed on them by section 203 of this Act, the Commissioners may make such modifications of the statutes of any qualifying institution as they consider necessary or expedient.

(2) Modifications made for the purpose of securing that the statutes of a qualifying institution comply with the requirements of section 203(1)(a) of this Act shall not apply in relation to a person unless—

(a) his appointment is made, or his contract of employment is entered into, on or after 20th November 1987; or

(b) he is promoted on or after that date.

(3) For the purposes of this section a person shall be taken to be promoted on or after 20th November 1987 if (and only if) immediately before that date he is paid on a scale which provides for a maximum rate of remuneration (his former pay scale) and on or after that date the terms of his appointment, or of his contract of employment, are varied (whether with effect before or after that date) so that—

(a) his rate of remuneration is increased to a rate which exceeds the highest point on his former pay scale at the date on which the increase takes effect; or

(b) he is paid on another scale on which the highest point at the date the variation takes effect exceeds the highest point on his former pay scale at that date; or

(c) he is paid on a basis which does not provide for a maximum rate of remuneration.

(4) For the purposes of subsection (3) above references, in relation to a pay scale, to the highest point on the scale at any date are references to the maximum rate of remuneration payable at that date in accordance with the scale whether on a regular or a discretionary basis.

(5) For the purposes of this section a person holding an office or position of any description shall not be taken to be promoted by reason only of any general variation of the terms of appointment or of contracts of employment of persons holding offices or positions of that description.

(6) Modifications such as are mentioned in subsection (2) above shall not apply in relation to a person who held an office or position at the institution in question immediately before 20th November 1987 by reason only of the fact that—

(a) he is appointed to, or employed in, a different office or position at the institution instead of his former office or position if the terms of his appointment or of his contract of employment which relate to remuneration are the same as those of his former appointment or contract of employment;

(b) he is appointed to, or employed in, an additional office or position at the institution which carries no remuneration; or

(c) he is promoted or is appointed to, or employed in, a different office or position at the institution if he is so promoted, appointed or employed only on a temporary basis for a particular purpose with an expectation that the promotion will cease to have effect, or that he will resume his former office or position, when that purpose is accomplished.

(7) Modifications made for the purpose of securing that the statutes of a qualifying institution comply with the requirements of section 203(1)(b) of this Act shall not apply in relation to anything done or omitted to be done before the date on which the instrument making the modifications is approved under subsection (9) below.

(8) Subject to subsections (2) to (7) above, the Commissioners' powers under this section include power to make such incidental, supplementary and transitional provision as they consider necessary or expedient.

(9) No instrument made in the exercise of the Commissioners' powers under this section shall have effect unless it has been approved by Her Majesty in Council.

205 Procedure for exercise of Commissioners' powers

(1) This section applies where the Commissioners propose to exercise the powers conferred on them by section 204 of this Act in relation to a qualifying institution.

(2) The Commissioners shall send a copy of the proposed modifications to each of the following persons, namely—

(a) the body appearing to the Commissioners to have responsibility for the management and administration of the institution’s revenue and property and the conduct of its affairs;

(b) such bodies representing qualifying institutions as appear to them to be concerned;

(c) such organisations representing staff of such institutions as appear to them to be concerned;

(d) the Universities Funding Council; and

(e) such other persons appearing to the Commissioners to be concerned as they consider it would be appropriate to consult;

and shall afford those persons a reasonable opportunity of making representations as to the issues arising.

(3) After taking into account any representations made by those persons, the Commissioners shall submit the modifications, with or without revisions, to Her Majesty in Council.

(4) Her Majesty in Council may remit for reconsideration by the Commissioners any modifications submitted under subsection (3) above; and any remission under this subsection shall be accompanied by a declaration of the reasons for it.

(5) The Commissioners shall reconsider and revise any modifications remitted under subsection (4) above; and subsections (2) to (4) above shall apply in relation to any modifications so revised as they apply in relation to modifications originally proposed.

(6) Until the coming into force of section 131 of this Act subsection (2)(d) above shall have effect as if for the reference to the Universities Funding Council there were substituted a reference to the University Grants Committee.

206 Exclusion of visitor’s jurisdiction

(1) The visitor of a qualifying institution shall not have jurisdiction in respect of any dispute relating to a member of the academic staff which concerns his appointment or employment or the termination of his appointment or employment.

(2) Subsection (1) above does not apply in relation to any dispute which is referred to the visitor of a qualifying institution before—

(a) the relevant date; or

(b) the date on which this section comes into force;

whichever is the later.

(3) Subsection (1) above shall not be taken to prevent any person who is the visitor of a qualifying institution—

(a) from hearing or determining appeals; or

(b) from hearing or redressing grievances;

in accordance with procedures established in pursuance of section 203(1)(d) and (e) of this Act.

(4) In this section—

(a) “the relevant date”, in relation to a qualifying institution, means the date on which the statutes of the institution include such provision as is mentioned in section 203(1)(d) and (e) of this Act; and

(b) the reference to a member of the academic staff includes a reference to a person who is treated as such a member for the purposes of that section.

207 Power to make incidental, etc., provisions by Order in Council

(1) Her Majesty may at any time by Order in Council make such incidental, consequential or supplementary provision as appears to Her necessary or expedient—

(a) for the general purposes or any particular purposes of any exercise of the Commissioners' powers under section 204 of this Act;

(b) in consequence of any exercise of those powers or for the purpose of giving full effect to any such exercise; or

(c) in consequence of the provisions of section 206 of this Act.

(2) An Order in Council under this section may in particular amend, repeal or revoke (with or without savings) any provision of—

(a) an Act passed or a charter granted; or

(b) an instrument under an Act or charter made,

before the passing of this Act.

208 Corresponding provision for Northern Ireland

An Order in Council under paragraph 1(1)(b) of Schedule 1 to the [1974 c. 28.] Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which contains a statement that it is only made for purposes corresponding to the purposes of sections 202 to 207 of, and Schedule 11 to, this Act—

(a) shall not be subject to sub-paragraphs (4) and (5) of paragraph 1 of that Schedule (affirmative resolution of both Houses of Parliament); but

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Grants

209 Grants in respect of mandatory awards

(1) For each financial year beginning after the day on which this subsection comes into force the Secretary of State shall pay to each local education authority a grant equal to the aggregate amount paid in that year by the authority under section 1(1) of the [1962 c. 12.] Education Act 1962 (awards for persons attending first degree courses and comparable courses).

(2) Payments of grants under subsection (1) above shall be made at such times as the Secretary of State may, with the consent of the Treasury, determine.

210 Grants for the education of travellers and displaced persons

(1) The Secretary of State may by regulations provide for the payment to local education authorities of grants in respect of expenditure incurred or to be incurred by them in making provision the purpose (or main purpose) of which is to promote and facilitate the education of persons to whom this subsection applies.

(2) Subsection (1) above applies to a person if—

(a) by reason of his way of life or, in the case of a child, his parent’s way of life he either has no fixed abode or leaves his main abode to live elsewhere for significant periods in each year;

(b) he fell within paragraph (a) above within a prescribed period immediately preceding the making of the provision in question; or

(c) he is for the time being resident in a camp or other accommodation or establishment provided for refugees or for displaced or similar persons.

(3) Regulations under subsection (1) above may—

(a) prescribe classes or descriptions of expenditure in respect of which grants are payable under the regulations;

(b) provide for the determination of the amount of any grant so payable;

(c) provide for the payment of any such grant to be dependent on the fulfilment of such conditions as may be determined by or in accordance with the regulations; and

(d) provide for requiring local education authorities to whom payments have been made under the regulations to comply with such requirements as may be so determined.

211 Grants in respect of special provision for immigrants

The power conferred by section 11 of the [1966 c. 42.] Local Government Act 1966 shall apply in relation to the payment of grants by the Secretary of State to—

(a) the governing body of a grant-maintained school;

(b) any person who in pursuance of undertakings under an agreement under section 105 of this Act maintains and carries on or provides for the carrying on of an independent school known either as a city technology college or as a city college for the technology of the arts; or

(c) the governing body of an institution within the PCFC funding sector;

who, in his opinion, make special provision in consequence of the presence within the locality of the school or the institution of substantial numbers of such immigrants as are described in section 11 of that Act as it applies in relation to the payment of grants to a local authority who in his opinion are required to make such provision in exercise of any of their functions in consequence of the presence within their area of substantial numbers of such immigrants.

212 Grants relating to aided or special agreement schools

(1) The Secretary of State may pay grants to the governing body of any aided school or special agreement school in respect of any preliminary expenditure incurred by them for the purposes of any scheme for the transfer of the school to a new site or the enlargement or alteration of the school premises.

(2) Where any persons propose or are considering whether to propose—

(a) that a school established by them, or by persons whom they represent, should be maintained by a local education authority as an aided school; or

(b) that a school which may be so established should be so maintained;

the Secretary of State may pay grants to them in respect of any preliminary expenditure incurred by them for the purposes of any scheme for the provision of a site for the school or of any buildings which would be school buildings.

(3) Grants under subsection (1) or (2) above may be paid in respect of any such scheme as is mentioned in that subsection whether or not—

(a) the details of any such scheme had been formulated at the time the expenditure was incurred;

(b) where such details were not formulated at that time, they are subsequently formulated;

(c) the governing body or persons in question had determined to proceed with any such scheme at that time; or

(d) where the governing body or persons had not determined so to proceed at that time, they subsequently determine to proceed with any such scheme.

(4) Expenditure in respect of which such grants are payable includes, in particular, costs incurred in connection with—

(a) the preparation of plans and specifications for any proposed construction, enlargement or alteration of buildings which are or would be school buildings; and

(b) estimating the sums which would be expended if any such works were carried out;

but does not include any sums expended in carrying out any such works.

(5) A grant under subsection (1) or (2) above shall not exceed 85 per cent. of the expenditure in respect of which it is paid.

(6) Where—

(a) a grant is paid under subsection (1) above in the case of any school; or

(b) a grant is paid under subsection (2) above in the case of any school which becomes, or is established as, a voluntary school;

the grant shall for the purposes of section 14 of the 1944 Act or section 98 of this Act be treated as expenditure incurred by the Secretary of State (otherwise than in connection with repairs) in respect of the school premises.