Local Government etc. (Scotland) Act 1994

83 Duties and powers relating to finance

(1) It shall be the duty of a new water and sewerage authority so to discharge their functions as to secure that, taking one year with another, their revenue is not less than sufficient to meet their total outgoings.

(2) The Secretary of State may, with the approval of the Treasury, by order direct that a new water and sewerage authority shall discharge their functions, during any period specified in the direction, with a view to securing that they achieve in respect of that period a rate of return on the value of their net assets (as for the time being defined for the purposes of this section by the Secretary of State) which is not less than such rate as the Secretary of State specifies in the direction as the rate of return which he considers it is reasonable for the authority in question to achieve; but a statutory instrument containing any order made under this subsection shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) After consultation with a new water and sewerage authority, the Secretary of State may, with the approval of the Treasury, determine that the authority shall (in addition to or in place of a duty imposed by virtue of subsection (2) above but without prejudice to the duty imposed by subsection (1) above) be subject to a specified duty of a financial nature; and different determinations may be so made in relation to different authorities and to different functions and activities of an authority.

(4) Where a duty specified in a determination under subsection (3) above is in place of a duty imposed by virtue of subsection (2) above, the determination shall be by order.

(5) A determination under subsection (3) above may—

(a) relate to a period beginning before the date on which it is made;

(b) contain incidental or supplemental provisions;

(c) be varied (by order where the determination was by order) by a subsequent determination under that subsection.

(6) An order made by virtue of subsection (4) above shall not be made unless a draft of the order has been laid before, and approved by resolution of, each House of Parliament.

(7) It shall be the duty of a new water and sewerage authority to secure that their charges make a proper contribution to their duties, as respect financial matters, under this Part of this Act, taking into account—

(a) the authority’s present circumstances and future prospects; and

(b) any duty imposed on them by virtue of subsection (2) or (3) above.