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Local Government etc. (Scotland) Act 1994

1994 CHAPTER 39

ARRANGEMENT OF SECTIONS

Go to Preamble

  1. Part I

    Local Government Reorganisation

    1. Chapter 1

      Local Government Areas, Authorities and Elections

      1. 1. Local government areas in Scotland.

      2. 2. Constitution of councils.

      3. 3. Orkney, Shetland and Western Isles.

      4. 4. Convener and depute convener.

      5. 5. Elections and term of office of councillors.

      6. 6. Date of elections.

      7. 7. Establishment of new local authorities and supplementary provisions.

    2. Chapter 2

      Staff

      1. 8. Transfer of employees.

      2. 9. Effect of section 8 on contracts of employment.

      3. 10. Continuity of employment.

      4. 11. Remuneration of employees of local authorities.

      5. 12. Staff commission.

      6. 13. Compensation for loss of office or diminution of emoluments.

      7. 14. Employment by new authorities.

    3. Chapter 3

      Property

      1. 15. Transfer of property.

      2. 16. Property held on trust.

      3. 17. Educational endowments.

      4. 18. Residuary bodies.

      5. 19. Property commission.

    4. Chapter 4

      General

      1. 20. Joint committees and joint boards.

      2. 21. Application of section 211 of the 1973 Act to joint boards.

      3. 22. Community councils.

      4. 23. Duty to prepare decentralisation schemes.

    5. Chapter 5

      Finance

      1. Transitional provisions

        1. 24. Transitional provisions: finance.

        2. 25. Financing of new authorities prior to 1st April 1996.

      2. Valuation and rating

        1. 26. Valuation lists.

        2. 27. Valuation areas and authorities and appointment of assessors etc.

        3. 28. Valuation rolls.

        4. 29. Valuation appeal panels and committees.

        5. 30. Rating authorities.

    6. Chapter 6

      Functions

      1. Education

        1. 31. Education.

        2. 32. Co-operation between education authorities.

      2. Planning

        1. 33. Structure plans.

      3. Police

        1. 34. Reorganisation of police areas.

        2. 35. Amalgamation schemes.

      4. Fire services

        1. 36. Fire services.

      5. Rivers

        1. 37. River purification boards.

      6. Roads

        1. 38. Roads.

        2. 39. Roads authority for boundary bridges.

      7. Public transport

        1. 40. Establishment etc. of Strathclyde Passenger Transport Authority.

        2. 41. Amendment of section 13 of Transport Act 1968.

      8. Traffic

        1. 42. Power to secure management of traffic control system.

        2. 43. Guidance as to exercise of traffic powers.

        3. 44. Restriction on order-making powers of existing authorities.

      9. Social work

        1. 45. Chief social work officer.

    7. Chapter 7

      Miscellaneous

      1. 46. Licensing boards.

      2. 47. Proceedings in district courts: transitional provisions.

      3. 48. Amendment of District Courts (Scotland) Act 1975.

      4. 49. Justices of the peace.

      5. 50. Stipendiary magistrates.

      6. 51. Registration of births, deaths and marriages.

      7. 52. Tweed Fisheries Commissioners.

      8. 53. Records held by local authorities.

      9. 54. Use, acquisition and disposal of records.

      10. 55. Restriction on disposal of assets and entering into contracts by existing authorities.

      11. 56. Duty of existing authorities and assessors to provide information to new authorities.

      12. 57. Power and duty of existing local authorities to assist new authorities.

      13. 58. Further provision as to discharge of functions by authorities.

      14. 59. Local Acts and instruments.

      15. 60. Applications to sheriff in cases of difficulty.

      16. 61. Interpretation of Part I.

  2. Part II

    Water and Sewerage Reorganisation

    1. New water and sewerage authorities

      1. 62. New water and sewerage authorities.

      2. 63. Alteration of water areas and sewerage areas.

      3. 64. Maps of areas.

      4. 65. General duties of Secretary of State and of new authorities.

      5. 66. Codes of practice for new water and sewerage authorities.

    2. Protection of customers' interests etc.

      1. 67. Scottish Water and Sewerage Customers Council

      2. 68. Functions of Customers Council.

      3. 69. Power of Customers Council to require information.

      4. 70. Annual reports by, and information from, Customers Council.

      5. 71. Funding of Customers Council.

      6. 72. References to Monopolies and Mergers Commission.

    3. Environmental protection

      1. 73. Duty of new authorities as respects Natural Heritage Area or area of special interest.

    4. Charges

      1. 74. Charges for services provided.

      2. 75. Maximum charges for services provided with help of new authority.

      3. 76. Charges schemes.

      4. 77. Publication of summary of charges scheme.

      5. 78. Liability of occupiers etc. for charges.

      6. 79. Collection of charges by local authority.

      7. 80. Power to demand and recover charges not to affect duty to maintain domestic water supply etc.

      8. 81. Reduced charges.

      9. 82. Arrears of charges: restrictions on voting.

    5. Finances of new authorities

      1. 83. Duties and powers relating to finance.

      2. 84. Financing and borrowing.

      3. 85. Guarantees.

      4. 86. Directions as to payment and investment.

      5. 87. Accounts.

      6. 88. Audit of accounts.

    6. Subsidiary powers of new authorities

      1. 89. Subsidiary powers of new authorities.

    7. Dissolution of Central Scotland Water Development Board

      1. 90. Dissolution of Central Scotland Water Development Board.

    8. Transfer of property, rights and liabilities to new authorities

      1. 91. Transfer of property, rights and liabilities to new authorities.

      2. 92. Transfer schemes: general.

      3. 93. Preparations for transfer of functions etc. to new authorities.

      4. 94. Power to require provision of information and assistance as respects transfer schemes.

      5. 95. Supplementary provision as to transfer schemes.

      6. 96. Transfer schemes: exemption from stamp duty and stamp duty reserve tax.

    9. Transfer etc. of staff

      1. 97. Staff: application of Chapter 2 of Part I etc.

    10. Land transactions

      1. 98. Acquisition of land by agreement.

      2. 99. Compulsory acquisition of land.

      3. 100. Disposal of land.

    11. Amendment of Sewerage (Scotland) Act 1968

      1. 101. Authorisation of construction of certain private sewers etc.

      2. 102. Emptying of septic tanks.

      3. 103. Register as respects trade effluents.

      4. 104. Disapplication of restrictions on disclosure of information.

    12. Further amendment of Water (Scotland) Act 1980

      1. 105. Restriction on references to Secretary of State of questions regarding water supply.

      2. 106. Removal of restriction on supply of water to premises outwith water authority’s limits of supply.

      3. 107. Supply of water for use outwith Scotland.

      4. 108. Further provision as regards removal of restrictions on supply of water outwith limits of supply.

      5. 109. Right of objection to proposed laying of mains.

      6. 110. Vesting of certain supply pipes.

      7. 111. Duty of water authority to keep map showing water mains etc.

      8. 112. Simplification of provisions as respects opting for water supply by meter.

      9. 113. Actings of Secretary of State on default of water authority.

      10. 114. Publication and provision of information as respects quality of private supplies of water.

      11. 115. Regulations as to certain procedures.

    13. Miscellaneous provisions as respects new authorities

      1. 116. Power of Secretary of State to give directions to new authorities.

      2. 117. Directions in the interests of national security.

      3. 118. Provision of information, etc.

      4. 119. Records held by new authorities.

      5. 120. Duty of new authorities to collaborate.

      6. 121. Power of new authorities to promote or oppose private legislation.

      7. 122. Supply of goods and services to new authorities by local authorities.

      8. 123. Power to require local authorities and assessors to supply information to new authorities.

    14. Other miscellaneous provisions

      1. 124. Cancellation of obligation to contribute towards certain expenses incurred as respects sewerage, or disposal of sewage, in rural localities.

    15. General

      1. 125. Interpretation of Part II.

      2. 126. Orders under Part II.

  3. Part III

    The Principal Reporter and the Scottish Children’s Reporter Administration

    1. The Principal Reporter

      1. 127. The Principal Reporter.

    2. The Scottish Children’s Reporter Administration

      1. 128. The Scottish Children’s Reporter Administration.

      2. 129. Appeal against dismissal of Principal Reporter and other officers.

    3. Additional functions of the Principal Reporter

      1. 130. Annual report of Principal Reporter.

      2. 131. Delegation of Principal Reporter’s functions.

    4. Functions of the Administration

      1. 132. Duty of Administration to provide accommodation etc. for children’s hearings.

      2. 133. Ancillary powers of Administration.

      3. 134. Directions by the Secretary of State.

    5. Finance of the Administration

      1. 135. Government grants to the Administration.

    6. Reports, accounts etc. of the Administration

      1. 136. Reports, accounts etc. of the Administration.

    7. General and supplemental

      1. 137. Staff: application of Chapter 2 of Part I.

      2. 138. Property etc.: application of Chapter 3 of Part I.

  4. Part IV

    Miscellaneous

    1. Social work

      1. 139. Report by local authority for purpose of investigation preliminary to children’s hearing.

    2. Voluntary organisations

      1. 140. Power of local authorities to provide assistance to voluntary organisations.

    3. Byelaws

      1. 141. Byelaws under section 121 of Civic Government (Scotland) Act 1982.

    4. Polling districts

      1. 142. Organisation of polling districts.

    5. Education

      1. 143. Self-governing schools: certain proposals under Education (Scotland) Act 1980.

      2. 144. Denominational schools: proposals under section 22D of Education (Scotland) Act 1980.

      3. 145. Provision of school transport and other facilities.

    6. Roads

      1. 146. Definition of “road”.

      2. 147. Provisions consequential on making of special road order.

      3. 148. Toll orders.

      4. 149. Road works register.

      5. 150. Traffic signs.

    7. Valuation and rating

      1. 151. Exclusion from valuation roll of shootings, deer forests, fishings and fish counters.

      2. 152. Amendment of definition of “lands and heritages”.

      3. 153. Power of Secretary of State to prescribe amount of non-domestic rate.

      4. 154. Rating of unoccupied lands and heritages.

      5. 155. Rating of lands and heritages partly unoccupied for a short time.

      6. 156. Remission of rates on account of hardship.

      7. 157. Certain orders relating to valuation not to be treated as hybrid.

      8. 158. Grants in respect of certain rate rebates.

      9. 159. Rating of enterprise zone.

      10. 160. Further provision as to valuation by formula.

      11. 161. Power of Secretary of State to combine and divide lands and heritages.

      12. 162. Abolition of Scottish Valuation Advisory Council.

    8. Amendment of Transport Act 1968

      1. 163. Guarantees by Strathclyde Passenger Transport Authority.

    9. Finance

      1. 164. Calculation of limits on spending.

      2. 165. Powers of authorities to borrow and lend money.

      3. 166. Grants in relation to ethnic minorities.

      4. 167. Special grants.

      5. 168. Direct Labour Organisation/Direct Services Organisation Accounts.

      6. 169. Statements of support services costs.

    10. Resources

      1. 170. Effective use of resources.

    11. Economic development

      1. 171. Functions to include promotion of economic development.

    12. Tourism

      1. 172. Duty of Secretary of State to establish area tourist boards.

      2. 173. Power of Secretary of State to amend and revoke schemes.

      3. 174. Power of local authority to submit amending schemes to Secretary of State.

      4. 175. Provision of assistance to boards by old authorities.

      5. 176. Powers to carry on tourism-related activities.

  5. Part V

    General and Supplementary

    1. General

      1. 177. Parliamentary disqualification.

      2. 178. Financial provisions.

      3. 179. Savings.

    2. Supplementary

      1. 180. Minor and consequential amendments and repeals.

      2. 181. Consequential and supplementary provisions.

      3. 182. Further transitional provisions.

      4. 183. Interpretation and amendment of statutory references.

      5. 184. Short title, commencement and extent.

  6. Schedules:

    1. Schedule 1

      New local government areas.

      1. Part I

        New areas.

      2. Part II

        Provisions as to boundaries.

    2. Schedule 2

      Establishment of new local authorities.

    3. Schedule 3

      Residuary bodies.

    4. Schedule 4

      Amendments of the 1972 Act.

    5. Schedule 5

      Strathclyde Passenger Transport Authority.

      1. Part I

        The Authority.

      2. Part II

        Matters which may be dealt with by order under section 40.

    6. Schedule 6

      Entry relating to new Scottish local authority to be inserted in Schedule 1 to the Tweed Fisheries Act 1969.

    7. Schedule 7

      Constitution and proceedings etc. of a new water and sewerage authority.

    8. Schedule 8

      Water and sewerage areas.

    9. Schedule 9

      Constitution and proceedings etc. of the Scottish Water and Sewerage Customers Council.

    10. Schedule 10

      Recovery by diligence of charges payable to a collecting authority by virtue of section 79.

    11. Schedule 11

      Water and sewerage transfer schemes.

    12. Schedule 12

      Status, constitution and proceedings of the Scottish Children’s Reporter Administration.

    13. Schedule 13

      Minor and consequential amendments.

    14. Schedule 14

      Repeals.

An Act to make provision with respect to local government and the functions of local authorities; to make amendments in relation to local government finance, local authority accounts and the records of local authorities; to establish a Strathclyde Passenger Transport Authority for the purposes of the Transport Act 1968; to provide for the establishment of new water and sewerage authorities; to provide for the establishment of a council to represent the interests of customers and potential customers of those new authorities; to provide for the vesting in those new authorities of the property, rights and liabilities of the Central Scotland Water Development Board and of such property, rights and liabilities of regional and islands councils as those councils have as water authorities, as providers of sewerage and in relation to dealing with the contents of sewers; to provide for the dissolution of that Board; to cancel certain obligations to contribute towards expenses which have been incurred by local authorities in making provision for sewerage or disposal of sewage in rural localities; to create an office of Principal Reporter and transfer to him the functions of reporters to children’s hearings; to establish a body to facilitate the performance by the Principal Reporter of his functions; to amend the Social Work (Scotland) Act 1968 in relation to children’s hearings; to amend the procedure for making byelaws under section 121 of the Civic Government (Scotland) Act 1982; to transfer to local authorities responsibility for fixing and reviewing polling districts and polling places in Parliamentary elections; to amend section 21 of the Self-Governing Schools etc. (Scotland) Act 1989; to amend the law relating to roads and the placing of traffic signs on roads; to make amendments in relation to valuation and rating; to abolish the Scottish Valuation Advisory Council; to empower the Strathclyde Passenger Transport Authority to guarantee certain obligations; to empower local authorities to make grants to ethnic minorities; to confer on local authorities the function of promoting economic development; to provide for the establishment of area tourist boards; to make amendments in relation to lieutenancies; all as respects Scotland; and for connected purposes.

[3rd November 1994]

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:—

Part I Local Government Reorganisation

Chapter 1 Local Government Areas, Authorities and Elections

1 Local government areas in Scotland

(1) Scotland shall, in accordance with the provisions of this Part of this Act, have local government areas for the administration of local government on and after 1st April 1996.

(2) Scotland shall be divided into the local government areas named in column 1 of Part I of Schedule 1 to this Act, and those areas shall comprise the areas described in column 2 of Part I.

(3) On 1st April 1996—

(a) all local government areas existing immediately before that date which are regions or districts; and

(b) all regional and district councils,

shall cease to exist.

(4) Part II of Schedule 1 (provisions as to boundaries) shall have effect.

2 Constitution of councils

(1) For every local government area there shall be a council consisting of a convener and councillors.

(2) Subject to any provision of this Act, the council for each local government area shall on and after 1st April 1996 have all the functions exercised immediately before that date in relation to their area by any existing regional, islands or district council.

(3) The council for each local government area shall be a body corporate by the name “The Council” with the addition of the name of the particular area, and shall have a common seal.

3 Orkney, Shetland and Western Isles

(1) The islands councils of Orkney, Shetland and the Western Isles shall continue to exist as bodies corporate but, on and after 1st April 1996—

(a) they shall be known as “Orkney Islands Council”, “Shetland Islands Council” and “Western Isles Council”; and

(b) their areas shall be known as “Orkney Islands”, “Shetland Islands” and “Western Isles”,

respectively.

(2) The islands councils consisting of the councillors elected for the islands areas of Orkney, Shetland and the Western Isles at the ordinary election held in 1994 shall continue as councils until the second ordinary election of councillors for the new councils held under section 5 of this Act.

4 Convener and depute convener

(1) The council of each local government area shall elect a convener from among the councillors.

(2) A council may elect a member of the council to be depute convener.

(3) Subject to the provisions of this section and of Schedule 2 to this Act, the standing orders of a council may make provision for—

(a) the duration of the term of office (which may not extend beyond the next ordinary election of the council); and

(b) the procedure for early removal from office,

of the convener and depute convener.

(4) The election of the convener shall be the first business transacted at the first meeting of the council held after an ordinary election of councillors and at that meeting, until the convener is elected, the returning officer or, failing him, such councillor as may be selected by the meeting shall preside.

(5) A person holding the office of convener or depute convener shall be eligible for re-election but shall cease to hold office upon ceasing to be a councillor.

(6) On a casual vacancy occurring in the office of convener, an election to fill the vacancy shall be held as soon as practicable by the council at a meeting of the council the notice of which specifies the filling of the vacancy as an item of business, and the depute convener or, failing him, a councillor selected by the meeting shall preside.

(7) The convener of each of the councils of the cities of Aberdeen, Dundee, Edinburgh and Glasgow shall, with effect from 1st April 1996, be known by the title of “Lord Provost”, and the convener of each other council shall be known by such title as that council may decide:

Provided that no such other council may, without the consent of the Secretary of State, decide that their convener shall be known by the title of “Lord Provost”.

(8) A council may pay the convener and depute convener, for the purpose of enabling each of them to meet the expenses of his office, such allowance as the council think reasonable.

5 Elections and term of office of councillors

(1) Councillors for each local government area shall be elected by the local government electors for that area in accordance with this Part of this Act and the Representation of the [1983 c. 2.] People Act 1983.

(2) Notwithstanding the provisions of section 43 of that Act of 1983 (day of ordinary local elections in Scotland), the first ordinary election of councillors for each council other than the councils of Orkney Islands, Shetland Islands and Western Isles shall take place on 6th April 1995.

(3) The second ordinary election of councillors shall take place in 1999, and ordinary elections shall take place every third year thereafter.

(4) Councillors shall retire on the day of the ordinary election next following the date on which they were elected.

(5) Each local government area shall be divided into electoral wards, and each such ward shall return one councillor.

(6) There shall be a separate election for each electoral ward.

6 Date of elections

For subsection (1) of section 43 of the Representation of the [1983 c. 2.] People Act 1983 (day of ordinary local elections in Scotland) substitute—

“(1) In every year in which ordinary elections of councillors for local government areas in Scotland are held, the day of election is—

(a) the first Thursday in May; or

(b) such other day as may be fixed by the Secretary of State by order made by statutory instrument not later than 1st February in the year preceding the year or, in the case of an order affecting more than one year, the first year in which the order is to take effect.

(1A) An order made under subsection (1)(b) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.”.

7 Establishment of new local authorities and supplementary provisions

(1) Schedule 2 to this Act shall have effect with respect to the establishment of the new local authorities, the suspension of elections of existing authorities and related matters.

(2) This Part of this Act shall have effect, in relation to such establishment, subject to the provisions of that Schedule.

(3) Schedule 2 shall not apply in relation to the councils of Orkney Islands, Shetland Islands and Western Isles.

Chapter 2 Staff

8 Transfer of employees

(1) Subject to the provisions of this section, the Secretary of State may by order make provision with respect to—

(a) the transfer of employees from an existing local authority to a new authority with effect from 1st April 1996; and

(b) any matters arising out of or related to such transfer.

(2) An order under this section may, without prejudice to the generality of subsection (1)(a) above—

(a) make provision as to the new authority to which groups of employees, or particular employees, are to be transferred;

(b) prescribe a general rule or rules by which the transfer of employees, or of specified groups of employees, can be determined.

(3) Each regional and district council shall, in accordance with the provisions of an order made under this section, prepare a scheme in relation to the transfer under or by virtue of this Act of their employees.

(4) No scheme under subsection (3) above shall be made without the consent of the new authority or authorities, or of the new water and sewerage authority or authorities (within the meaning of Part II of this Act), to whom the employees concerned are to be transferred or, failing such consent, without the consent of the Secretary of State.

(5) The Secretary of State shall by order under this section provide for the transfer of all fire and police personnel employed by an existing local authority for the purposes of a fire brigade or police force to the new authority which will, after 1st April 1996, have responsibility as respects that brigade or force.

(6) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(7) In this section—

9 Effect of section 8 on contracts of employment

(1) This section applies to any person transferred from an existing local authority to a new authority under or by virtue of an order under section 8 of this Act.

(2) The contract of employment between such a person (the “employee”) and his present employer shall not be terminated by the abolition of that employer but shall have effect from 1st April 1996 (the “transfer date”) as if originally made between the employee and such new authority (his “new employer”) as may be specified in relation to him in an order made under section 8 of this Act.

(3) Without prejudice to subsection (2) above—

(a) all the present employer’s rights, powers, duties and liabilities under or in connection with a contract to which that subsection applies shall by virtue of this section be transferred on the transfer date to the new employer; and

(b) anything done before the transfer date by or in relation to the present employer in respect of that contract or the employee shall be deemed after that date to have been done by or in relation to the new employer.

(4) Subsections (2) and (3) above are without prejudice to any right of an employee to terminate his contract of employment if a substantial change is made to his detriment in his terms and conditions of employment, but no such right shall arise by reason only of the change of employer effected by section 8 of this Act.

(5) In this section—

10 Continuity of employment

(1) This section applies to a person who at any time after the passing of this Act ceases to be employed by an existing local authority (his “former employer”) if—

(a) the termination of his employment is attributable, directly or indirectly, to any provision made by or under this Act;

(b) he is subsequently employed by another person (his “new employer”); and

(c) by virtue of section 84 of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 (renewal or re-engagement) that subsequent employment precludes his receiving any redundancy payment under Part VI of that Act.

(2) Where this section applies to a person, Schedule 13 to the said Act of 1978 (computation of a period of employment for the purposes of that Act) shall have effect in relation to that person as if it included the following provisions, that is to say—

(a) the period of employment of that person with his former employer shall count as a period of employment with his new employer; and

(b) the change of employer shall not break the continuity of the period of employment.

(3) Where this section applies to a person, the period of his employment with his former employer shall count as a period of employment with his new employer for the purposes of any provision of his contract of employment with his new employer which depends on his length of service with that employer.

(4) In this section “existing local authority” includes a joint committee and a joint board but does not, subject to any other provision of this Act, include an islands authority.

11 Remuneration of employees of local authorities

(1) For the purposes of this section the Secretary of State may, after consulting such associations of local authorities as appear to him to be appropriate—

(a) designate such existing body as he considers appropriate; or

(b) by order made by statutory instrument establish a new body,

(in this section referred to, in either case, as “the advisory body”) to consider any increase made or proposed to be made by an authority in the remuneration of any of their employees.

(2) An order under subsection (1)(b) above—

(a) may make provision as to the constitution and membership of the body established;

(b) may include provision as to the employment of staff and the remuneration and superannuation of the members and staff of the body; and

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

(3) For the purpose of enabling them to carry out their functions under this section, the advisory body shall consult and seek information from authorities and, if requested to do so by the advisory body, the Secretary of State may give a direction to any such authority requiring them to furnish to the advisory body such information as may be specified in the direction relating to the remuneration and other terms and conditions of employment of such employees of the authority as may be so specified.

(4) If it appears to the advisory body that an authority have fixed or propose to fix for any employee or class of employee of theirs a rate of remuneration which, having regard to any recommended levels of remuneration formulated on a national basis by representatives of local authorities and employees of local authorities, is greater than that which the advisory body consider appropriate for that employee or class of employees, they shall notify the authority concerned and recommend to them the rate of remuneration which should be paid to the employee or class of employees concerned.

(5) If it appears to the advisory body that an authority to whom they have made a recommendation under subsection (4) above are not complying with that recommendation, then, after giving notice in writing to the authority concerned of their intention to do so, they may refer the matter to the Secretary of State; and on such a reference the Secretary of State, after consultation with such associations of local authorities and of employees of local authorities as he considers appropriate in relation to the employee or class of employees concerned, may give a direction to that authority requiring them, with effect from such date as may be specified in the direction (not being earlier than the date on which notice was given to them by the advisory body), to pay such employee or class of employees of theirs as was the subject of the recommendation and as may be so specified remuneration at the rate recommended by the advisory body under subsection (4) above and specified in the direction.

(6) An authority to whom a direction is given under subsection (3) or subsection (5) above shall comply with the direction.

(7) If at any time in the period of three months beginning on 1st April 1996 it appears to the advisory body that the remuneration paid at any time before that date to any employee or class of employees of an existing local authority was such that, if that authority had not ceased to exist, the advisory body would have made a recommendation to the authority under subsection (4) above or, having made such a recommendation before that date, would have referred the matter to the Secretary of State under subsection (5) above, they shall notify the Secretary of State and report to him the rate of remuneration which in their opinion should have been paid to the employee or class of employees concerned immediately before 1st April 1996 or such earlier date as may be specified in the report, being the date on which the employee or employees ceased to be employed by the local authority concerned.

(8) On receiving a report under subsection (7) above the Secretary of State may, after such consultation as is specified in subsection (5) above, by order made by statutory instrument provide that, for the purposes of the provisions of this Act, or of any regulations made under section 24 of the [1972 c. 11.] Superannuation Act 1972 (compensation for loss of office etc.), relating to transfer of officers and compensation for loss of office, the employee or class of employees to whom the report relates and who are specified in the order shall be deemed to have been receiving, immediately before 1st April 1996 or such earlier date as may be specified in the report, remuneration at the rate stated in the report and specified in the order.

(9) An order made under subsection (8) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(10) In this section—

(11) The Secretary of State may not give a direction under subsection (5) above nor make an order under subsection (8) above after 31st March 1997.

12 Staff commission

(1) The Secretary of State shall, after such consultation, whether before or after the passing of this Act, as he thinks fit, by order establish a staff commission for the purpose of carrying out such functions in relation to the staff and staffing of authorities as he may consider appropriate.

(2) Without prejudice to the generality of subsection (1) above, an order under this section may confer on the staff commission the functions of—

(a) considering and keeping under review the arrangements for the recruitment of staff by new authorities and for the transfer in consequence of this Act or of any instrument made under it of staff employed by existing local authorities which cease to exist by virtue of Chapter 1 of this Part of this Act;

(b) considering such staffing problems arising out of, in consequence of or in connection with any provision of or instrument made under this Act as may be referred to them by the Secretary of State or by any authority;

(c) advising the Secretary of State as to the steps necessary to safeguard the interests of such staff; and

(d) advising authorities, either by the commission or by persons nominated by them.

(3) An order under this section may make provision as to the constitution and membership of the commission, the appointment and removal from office by the Secretary of State of the chairman and members of the commission, the employment of staff and the remuneration and superannuation of the members and staff of the commission.

(4) The Secretary of State may give directions—

(a) to the staff commission as to—

(i) the carrying out by them of their functions; and

(ii) their procedure;

(b) to any authority with respect to the furnishing by them of information requested by the commission; and

(c) to any authority with respect to—

(i) the implementation by them of any advice given by, or by persons nominated by, the commission; and

(ii) the payment by them of any expenses incurred by the commission in doing anything requested by them.

(5) Any expenses incurred by the staff commission and not recovered by them from an authority shall be paid by the Secretary of State out of money provided by Parliament.

(6) The Secretary of State may by order provide for the winding up of the commission and the disposal of their assets.

(7) An order under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(8) In this section—

13 Compensation for loss of office or diminution of emoluments

(1) This section applies to any person who at any time after the passing of this Act is in the service of—

(a) an existing local authority;

(b) a new authority; or

(c) a residuary body,

and who suffers loss of employment or diminution of emoluments which is attributable to any provision made by, under or by virtue of this Act.

(2) Where the Secretary of State makes provision by regulations under section 24 of the [1972 c. 11.] Superannuation Act 1972 (compensation for loss of office etc.) in relation to compensation in respect of any such loss or diminution as is referred to in subsection (1) above, such compensation shall be paid only in accordance with those regulations; and accordingly none of the bodies mentioned in subsection (1) above shall pay any such compensation under any other statutory provision, by virtue of any provision in a contract, or otherwise.

(3) Subsection (2) above shall not preclude the making of any payment to which a person is entitled by virtue of contractual rights acquired by him on or before 9th December 1993.

(4) Regulations under the said section 24 shall not provide compensation for a person to whom this section applies in respect of any such loss or diminution as is mentioned in subsection (1) above so far as attributable to the termination (without prejudice to the provision of compensation where the said loss or diminution is attributable otherwise than to such termination) on or before 1st April 1996 of a contract made after 9th December 1993 which provides for the employment of that person for a fixed term extending beyond 1st April 1996.

(5) For the purpose of determining under subsections (5) or (6) of section 82 (general exclusions from right to redundancy payment) or section 84(3) (renewal of contract or re-engagement) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978—