Transport Act 1962

18 Financial duty of Boards. U.K.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(2) Each Board shall charge to revenue in every year all charges which are proper to be made to revenue, including, in particular, proper provision for the depreciation or renewal of assets and proper allocations to general reserve, and the reference in subsection (1) of this section and other references in this Act to charges properly chargeable to revenue shall be construed accordingly.

(3) Without prejudice to the Board’s powers to establish specific reserves, each Board shall establish and maintain a general reserve.

(4) The management by each Board of their general reserve, the sums to be carried from time to time to the credit thereof, and the application of the moneys comprised therein shall be as the Board may determine:

Provided that—

(a) no part of the moneys comprised in the general reserve shall be applied otherwise than for the purposes of the Board; and

(b) the Minister may, with the approval of the Treasury, give to the Board directions as to any matter relating to the establishment or management of the general reserve or the carrying of sums to the credit thereof, or the application thereof.

(5) Each of the Boards may, with the consent of the Minister given with the approval of the Treasury, make charges to capital account representing interest on expenditure of a capital nature (including expenditure of a capital nature incurred by the Commission before the vesting date), being interest for any period which ends on or before the end of the accounting period in which the project or scheme to which the expenditure relates is in the opinion of the Minister completed.

[F2 (5A) In the application of subsections (4) and (5) to the British Waterways Board—

(a) references to the Minister are to be read as references to the Scottish Ministers, and

(b) references to the approval of the Treasury are omitted.]

(6) This section shall have effect subject to the following provisions of this Part of this Act relating to the Railways Board and the British Waterways Board.

Textual Amendments

F1 Ss. 13(5)–(8), 18(1) repealed by Transport Act 1968 (c. 73), Sch. 18 Pt. I

F2 S. 18(5A) inserted (2.7.2012) by The British Waterways Board (Transfer of Functions) Order 2012 (S.I. 2012/1659), art. 1(2), Sch. 2 para. 10 (with arts. 4-6)

Modifications etc. (not altering text)

C1 Ss. 18-21, 24 extended by Transport Act (c. 73), s. 27(1)

C2 S. 18(4) proviso (a) excluded by Transport Act 1968 (c. 73), s. 41(4)