Statutory Instrument 1993 No. 2875

The Public Airport Companies (Capital Finance) (Fourth Amendment) Order 1993

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© Crown Copyright 1993

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1993 No. 2875

LOCAL GOVERNMENT, ENGLAND AND WALES

The Public Airport Companies (Capital Finance) (Fourth Amendment) Order 1993

The Secretary of State for Transport, in exercise of the powers conferred on him by section 39(5), (6) and (7) of the Local Government and Housing Act 1989^[1] and of all other powers enabling him in that behalf, hereby makes the following Order:-

    1.    This Order may be cited as the Public Airport Companies (Capital Finance) (Fourth Amendment) Order 1993 and shall come into force on 17th December 1993.

    2.—(1)  The Public Airport Companies (Capital Finance) Order 1990^[2] shall be amended as follows.

    (2)  In paragraph (2) of article 1 after the definition of "current assets" there shall be inserted the following definitions:
""equity share capital" means, in relation to a public airport company or any subsidiary of such a company, its issued share capital excluding any part of that capital which, neither as respects dividends nor as respects capital, carries any right to participate beyond a specified amount in a distribution;
"local authority" has the same meaning as in section 67 of the Act;
"principal council" has the same meaning as in section 12 of the Airports Act 1986;".



    (3)  In paragraph (2) of article 1, in the definition of "the relevant date", the word "and" at the end shall be omitted and after that definition there shall be inserted the following definitions:
""relevant person" means any person other than-
(a) a local authority,

(b) a company which, in accordance with Part V of the Act, is under the control of, or is for the time being subject to the influence of, a local authority, or

(c) a trust to which, by virtue of an order made under section 72 of the Act, the provisions of section 69 of the Act are applicable and which is for the time being subject to the influence of a local authority;


  "share" includes stock; and".



    (4)  In paragraph (4) of article 2 the words from "and the issued share capital" onwards shall be omitted.

    (5)  For paragraph (5) of article 2 there shall be substituted the following paragraph:
"  (5)  In this article "liabilities" in relation to a public airport company or any subsidiary of such a company-
(a) subject to sub-paragraph (b) below includes the issued share capital of that company or subsidiary (including any premium obtained by the company or subsidiary upon the issue of such shares) and such liability shall be treated as a liability owed to the person who holds such issued shares,

(b) does not include any liability owed-
(i) to the controlling authority,

(ii) to a constituent council of the controlling authority,

(iii) to or by that public airport company by or to any subsidiary of that company,

(iv) to a principal council which, on or after 17th December 1993, transfers all of its share in the equity share capital of that public airport company to a relevant person provided that liability was owed before that transfer, or

(v) to a relevant person by reason of that person holding any share in the equity share capital of that company or subsidiary issued to a relevant person on or after 17th December 1993 or transferred to a relevant person by the controlling authority or a constituent council of that authority on or after that date, and

(c) does not include any provision for-
(i) pensions and similar obligations, or

(ii) taxation.".



    (6)  In the Schedule there shall be deleted the entry-
"East Midlands International Airport plc            Derbyshire County Council".

Signed by authority of the Secretary of State for Transport

Caithness

Minister of State Department of Transport

23rd November 1993

This Order further amends the Public Airport Companies (Capital Finance) Order 1990. That Order set out the effects of the capital financing transactions of public airport companies and their subsidiaries for the local authority which is the "controlling authority".

The principal changes are to exclude from those liabilities which fall to be calculated for the purpose of determining any increase or decrease in the liabilities of a controlling authority as between one year and the next (for which credit cover is required or an entitlement to additional credit allowance is created)-
    (1)  liabilities owed to a principal council which on or after 17th December 1993 transfers all of its share in the equity share capital of a public airport company to a person which is not a local authority or a company or trust under the control or subject to the influence of a local authority, and

    (2)  liabilities owed to such a person by reason of his holding a share in the equity share capital of a public airport company or of a subsidiary of such a company issued to such a person on or after 17th December 1993 or transferred to such a person from the controlling authority or a constituent council of that authority on or after that date (article 2(5)).

East Midlands International Airport plc is deleted from the Schedule (article 2(6)).

[1] 1989 c. 42. back

[2] S.I. 1990/719, amended by S.I. 1991/423, 1992/196 and 1992/3056. back