Statutory Instrument 1999 No. 441 (S. 25)

The Scotland Act 1998 (Transitory and Transitional Provisions) (Finance) Order 1999

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© Crown Copyright 1999

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    (2) If any question arises before the principal appointed day[4] as to whether or to what extent a function of the Secretary of State is a relevant function for the purposes of this Order that question shall be determined by the Secretary of State, and his determination shall be final and conclusive.

    (3) In this Order, any reference to a numbered section or schedule shall, unless the context otherwise requires, be read as a reference to the section or schedule bearing that number in the 1998 Act.

Receipts of the Secretary of State etc.
     3.  - (1) The provisions of this article shall cease to apply on the principal appointed day.

    (2) A provision of any enactment which requires or authorises the payment of any sum into the Consolidated Fund shall have effect in relation to any relevant function as if it required or authorised that sum to be paid into the Fund instead.

    (3) Paragraph (2) above is subject to any other provision made by or under this Order, or any other subordinate legislation under section 129(1) (transitory and transitional provision), for the disposal of or accounting for such sums.

Receipts of the Lord Advocate
     4.  - (1) The provisions of this article shall cease to apply when section 44(1)(c) (Lord Advocate and Solicitor General for Scotland to be members of Scottish Executive) comes into force[5].

    (2) A provision of any enactment which requires or authorises the payment of any sum into the Consolidated Fund by the Lord Advocate shall have effect in relation to him as if it required or authorised the sum to be paid into the Fund instead.

    (3) Paragraph (2) above is subject to any other provision made by or under this Order, or any other subordinate legislation under section 129(1), for the disposal of or accounting for such sums.

Receipts of the Scottish Executive
     5.  - (1) The provisions of this article shall cease to apply when section 64(3) (receipts of Scottish Administration to be paid into Fund) comes into force[6].

    (2) Sums received by any member of the Scottish Executive or junior Scottish Minister shall be paid into the Fund.

    (3) Paragraph (2) above is subject to any other provision made by or under this Order or any other subordinate legislation under section 129(1), for the disposal of or accounting for such sums.

Modification of section 21(7)
     6. Until the coming into force of any provision made by or under an Act of the Scottish Parliament for the disposal of or accounting for sums received by the Parliamentary corporation, section 21(7) (receipts of the Parliamentary corporation) shall have effect as if the reference to an Act of the Scottish Parliament included a reference to subordinate legislation under section 129(1).

Modification of section 64(4)
     7. Until the coming into force of any provision made by or under an Act of the Scottish Parliament for the disposal of or accounting for sums received by the office-holders in the Scottish Administration, section 64(4) (receipts of the Scottish Administration) shall have effect as if the reference to an Act of the Scottish Parliament included a reference to subordinate legislation under section 129(1).

Receipts to be surrendered to the Consolidated Fund
     8.  - (1) The provisions of this article shall cease to apply when an order under section 64(5) (designation of receipts) comes into force or on 1st April 2000, whichever is the earlier.

    (2) Receipts of any description specified in paragraph (3) below, so far as they are payable into the Fund (or would be but for any provision made by or under this Order or any other subordinate legislation under section 129(1)), shall be designated receipts for the purposes of this article.

    (3) The specified descriptions of receipts are-

(a) fines, forfeitures and fixed penalties;

(b) dividends on public dividend capital, other than any public dividend capital of a National Health Service trust established under section 12A of the National Health Service (Scotland) Act 1978[7];

(c) interest, other than interest on any loan made to a National health Service trust mentioned in sub-paragraph (b) above; and

(d) sums received from the European Social Fund in respect of training expenditure incurred by Scottish Enterprise and Highlands and Islands Enterprise, bodies established by section 1 of the Enterprise and New Towns (Scotland) Act 1990[8].

    (4) In the period ending immediately before the principal appointed day, the Secretary of State shall make payments into the Consolidated Fund, at such times and by such methods as the Treasury may from time to time determine, of sums equal to the total amount then outstanding in respect of designated receipts.

    (5) From the principal appointed day, the Scottish Ministers shall make payments to the Secretary of State, at such times and by such methods as the Treasury may from time to time determine, of sums equal to the total amount then outstanding in respect of designated receipts.

    (6) Amounts required for the payment of sums under this article shall be charged on the Fund.

Sums payable out of the Fund
     9.  - (1) The provisions of this article shall cease to apply when section 65 (payments out of the Fund) comes into force[9].

    (2) A sum may only be paid out of the Fund if-

(a) it has been charged on the Fund by virtue of any enactment (including this Order);

(b) it is payable out of the Fund without further approval by virtue of this Order; or

(c) it is paid out for or in connection with any of the purposes mentioned in paragraph (3) below and forms part of sums appropriated for any such purpose out of sums forming part of the Fund by an Order in Council under section 129(1).

    (3) Those purposes are-

(a) meeting expenditure for or in connection with any relevant function;

(b) meeting expenditure of the Secretary of State in preparation for the Scottish Parliament;

(c) meeting expenditure of the Lord Advocate;

(d) meeting expenditure of any member of the Scottish Executive or junior Scottish Minister;

(e) meeting expenditure payable out of the Fund under any enactment.

    (4) A sum paid out of the Fund under this article shall not be applied for any purpose other than that for which it was charged or (as the case may be) paid out.

Modification of section 65
     10. Until 1st April 2000, section 65(1)(c) (payments out of the Fund) shall have effect as if the reference to rules made by or under an Act of the Scottish Parliament were a reference to article 11 of this Order.

Appropriation of sums and contingencies
     11.  - (1) Subject to paragraph (2) of this article, a sum may be paid out of the Fund under section 65(1)(c) only if, and to the extent that, it forms part of sums appropriated for any purpose falling within section 65(2) out of sums forming part of the Fund by an Order in Council under section 129(1).

    (2) Notwithstanding that a sum does not form part of sums appropriated as mentioned in paragraph (1) above, or is in excess of such sums, it may be paid out of the Fund in the transitional financial year if and to the extent that the Scottish Ministers so authorise in accordance with the following paragraphs of this article.

    (3) The Scottish Ministers may authorise the payment of any sum out of the Fund under paragraph (2) above only if-

(a) the sum is necessarily required in the public interest to meet urgent expenditure for any purpose falling within section 65(2); and

(b) it is not reasonably practicable, having regard to the urgency of the expenditure, to seek appropriation of the sum from the Fund by an Order in Council under section 129(1),

but the Scottish Ministers shall not authorise any such payment if it would result in an excess of sums paid out of the Fund over sums paid into the Fund.

    (4) Where the Scottish Ministers authorise the payment of any sum out of the Fund under paragraph (2) above they shall forthwith lay a report before the Parliament setting out the circumstances of the authorisation and the reasons for which the granting of the authorisation is considered necessary.

    (5) The aggregate amount which the Scottish Ministers may authorise to be paid out of the Fund under paragraph (2) above in the transitional financial year shall not exceed £50 million.

Appropriations in aid
     12.  - (1) Where an Order in Council under section 129(1) provides for any sums to be appropriated in aid of sums appropriated by that Order from the Fund for any purpose, and where the Treasury so direct under paragraph (2) below, then those sums may be applied for the purposes for which they are so appropriated in aid instead of being paid into the Fund, and in so far as those sums are not so applied they shall be paid into the Fund.

    (2) Where any fee, penalty, proceeds of sale, or other money of the nature of an extra receipt is, by virtue of any enactment (including this Order), payable into the Fund, the Treasury may by a minute to be laid before Parliament direct that the whole or any specified part thereof shall be applied as an appropriation in aid of sums appropriated from the Fund for the purpose mentioned in the minute.

Transfer of appropriations and appropriations in aid
     13.  - (1) Paragraph (2) of this article applies where any function of the Secretary of State has, by virtue of any provision made by or under the 1998 Act, become exercisable instead by the Scottish Ministers or by the Parliamentary corporation and there is then in force an Order in Council under section 129(1) appropriating sums forming part of the Fund for the purpose of meeting expenditure of the Secretary of State in connection with that function, or appropriating sums in aid of sums so appropriated.

    (2) The Order in Council shall have effect in relation to any such function from the date when it becomes exercisable by the Scottish Ministers or, as the case may be, the Parliamentary corporation, as if the sums, so far as not then applied by the Secretary of State, were appropriated or appropriated in aid for the purpose of meeting expenditure of the Scottish Ministers or, as the case may be, the Parliamentary corporation in connection with that function.

General modification of enactments relating to Consolidated Fund etc.
     14.  - (1) The provisions of this article shall cease to apply when section 119 (modification of references to Consolidated Fund etc.) comes into force[10].

    (2) In this article "Scottish functions" means-

(a) relevant functions;

(b) functions of the Lord Advocate; and

(c) functions of any public body, public office or holder of such an office which will become, by virtue of the 1998 Act, a Scottish public authority with mixed functions or no reserved functions.

    (3) A provision of any enactment which requires or authorises the payment of any sum out of the Consolidated Fund or money provided by Parliament shall not apply in relation to any Scottish functions.

    (4) A provision of any enactment which-

(a) charges any sum on the Consolidated Fund;

(b) requires the payment of any sum out of the Consolidated Fund without further appropriation; or

(c) requires or authorises the payment of any sum into the Consolidated Fund,

shall have effect in relation to any Scottish functions, and any function relating to the payment of the judicial salaries mentioned in paragraph (5) below, as if it provided instead for the sum to be charged on the Fund or required it to be paid out of the Fund without further approval or required or authorised it to be paid into the Fund (as the case may be).

    (5) The judicial salaries are the salaries or remuneration of the judges of the Court of Session, Sheriffs Principal, Sheriffs, members of the Lands Tribunal for Scotland and the Chairman of the Scottish Land Court.

    (6) Paragraphs (3) and (4) of this article do not apply to the words from the beginning of section 2(3) of the European Communities Act 1972[11] (general implementation of Treaties) to "such Community obligation".

    (7) A provision of any enactment which authorises any sums to be applied as money provided by Parliament instead of being paid into the Consolidated Fund shall have effect in relation to any Scottish functions as if instead it authorised those sums to be applied as if they had been paid out of the Fund in accordance with article 9(2)(c) of this Order.

    (8) Paragraph (9) of this article applies to any sums which, for the purpose or as a result of the exercise on or after 1st April 1999 of the power conferred on the Secretary of State by section 84(2)(a) of the Local Government etc. (Scotland) Act 1994[12] (power to lend to new water and sewerage authorities), would be required (apart from that paragraph)-

(a) to be issued by the Treasury out of the National Loans Fund; or

(b) to be paid into that Fund.

    (9) Those sums shall instead-

(a) be paid out of the Fund without further approval; or

(b) be paid into that Fund,

(as the case may be).

    (10) References in any enactment to a body or authority whose revenue consists wholly or mainly of money provided by Parliament shall be read as including a body or authority whose revenue consists wholly or mainly of money paid out of the Fund.

    (11) References in any enactment to an office the remuneration in respect of which is paid out of money provided by Parliament shall be read as including an office the remuneration in respect of which is paid out of the Fund.

Credits for the payment of sums out of the Fund
     15.  - (1) The provisions of this article shall cease to apply on 1st April 2000.

    (2) No payment shall be made out of the Fund except in accordance with credits granted on the Fund by the Comptroller and Auditor General.

    (3) Subject to paragraph (4), the Comptroller and Auditor General shall grant credits for the payment of sums out of the Fund from time to time at the request of the Secretary of State.

    (4) He shall not grant any such credit for the payment of any sum unless that sum may be paid out of the Fund under article 9 of this Order or under section 65 as modified by this Order.

    (5) Any person to whom sums are paid out of the Fund shall keep such sums until required for the purposes for which they are paid out only with the Paymaster General or with one or other of the banks determined by the Treasury under section 18 of the Exchequer and Audit Departments Act 1866 Act[13].

Accounts of the Fund
     16.  - (1) An account of payments into and out of the Fund in the transitional financial year shall be prepared, in such form and manner as the Treasury may direct-

(a) by the Secretary of State, in relation to such payments made in the period ending immediately before the principal appointed day; and

(b) by the Scottish Ministers, in relation to such payments made in the remaining period of the transitional financial year.

    (2) An account prepared under this article shall be sent to the Comptroller and Auditor General not later than the end of November in the year 2000.

    (3) The Comptroller and Auditor General shall examine, certify and report on the account and-

(a) in the case of an account prepared by the Secretary of State, shall lay copies of it and of his report on it before each House of Parliament; and

(b) in the case of an account prepared by the Scottish Ministers, shall lay copies of it and of his report on it before the Parliament.

[2] This is the date when, in terms of article 2(2) of, and Schedule 2 to, the Scotland Act 1998 (Commencement) Order 1998 (S.I. 1998/3178), section 64(1) of the 1998 Act, which establishes the Scottish Consolidated Fund, comes into force.back

[3] These are provisions which relate to provisions of the 1998 Act which come into force on dates after 1st April 1999. In terms of article 2 of the Scotland Act 1998 (Commencement) Order 1998, sections 21(7), 44 (other than subsection (1)(c)) and 69 come into force on 6th May 1999, sections 53, 64(4), 65 and 121 come into force on 1st July 1999 and section 120 comes into force on 1st April 2000.back

[4] Article 3 of the Scotland Act 1998 (Commencement) Order 1998 specifies 1st July 1999 as the principal appointed day for the purposes of the 1998 Act.back

[5] In terms of article 2(2) of and Schedule 4 to the Scotland Act 1998 (Commencement) Order 1998, section 44(1)(c) comes into force on 20th May 1999.back

[6] In terms of article 2(1) of the Scotland Act 1998 (Commencement) Order 1998, section 64(3) comes into force on 1st July 1999.back

[7] 1978 c.29; section 12A was inserted by section 31 of the National Health Service and Community Care Act 1990 (c.19).back

[8] 1990 c.35.back

[9] In terms of article 2(1) of the Scotland Act 1998 (Commencement) Order 1998, section 65 comes into force on 1st July 1999.back

[10] In terms of article 2(1) of the Scotland Act 1998 (Commencement) Order 1998, section 119 comes into force on 1st July 1999.back

[11] 1972 c.68.back

[12] 1994 c.39.back

[13] 1866 c.39 (29 & 30 Vict.).back