Statutory Corporations (Financial Provisions) Act 1974

SCHEDULES

Sections 1 & 2.

SCHEDULE 1 Matters referred to in Section 1

Specified bodies	Specified amount
	£
1. Area Boards within the meaning of the [1947 c. 54.] Electricity Act 1947	92,292,000
2. The North of Scotland Hydro-Electric Board	5,681,019
3. The South of Scotland Electricity Board	4,698,421
4. The British Gas Corporation	33,381,000
5. The Post Office	9,721,000

Section 4.

SCHEDULE 2 Amendments relating to Borrowing Powers

Bodies corporate	Act	Amendment
1. (1) The British Railways Board. (2) The British Transport Docks Board. (3) The British Waterways Board. (4) The National Bus Company. (5) The Scottish Transport Group. (6) The National Freight Corporation.	The Transport Act 1962 (10 & 11 Eliz. 2. c. 46).	In section 19(2), after the word " Minister" there shall be inserted the words " or, with the consent of the Secretary of State and the approval of the Treasury, may borrow (otherwise than by way of temporary loan) in a currency other than sterling from any person, or in sterling from the Commission of the European Communities or from the European Investment Bank ".
		In section 21(1) the words " subsection (1) of" shall be omitted.
2. (1) The Electricity Council. (2) The North of Scotland Hydro-Electric Board. (3) The South of Scotland Electricity Board.	The Hydro-Electric Development (Scotland) Act 1943 (6 & 7 Geo. 6. c. 32).	In section 12(1), after the word " temporarily " there shall be inserted the words " and (without prejudice to the generality of this subsection) to borrow money in sterling from the Commission of the European Communities or from the European Investment Bank ".
	The Electricity Act 1947 (10 & 11 Geo. 6. c. 54).	In section 47(7) the word " temporary ", in the first and third places where it occurs, shall be omitted.
	The Electricity Act 1957 (5 & 6 Eliz. 2. c. 48).	In section 15, after subsection (3) there shall be inserted the following subsection:— “(3A) The Electricity Council, with the consent of the Secretary of State and the approval of the Treasury, may borrow money in sterling from the Commission of the European Communities or from the European Investment Bank for all or any of the purposes mentioned in subsection (2) of this section ", and in subsection (5), after paragraph (c) there shall be inserted the following paragraph:— “(cc) the principal of any money borrowed by the Electricity Council under subsection (3A) of this section, and””.
		In section 17(1), at the end of paragraph (b) there shall be inserted the words “or (c) any money borrowed by the Electricity Council under section 15(3 A) of this Act ”.
	The Gas and Electricity Act 1968 (1968 c 39).	In section 2, in subsection (1), the words " by the issue of stock, bonds or other securities under this section " shall be omitted, and for the word " and ", where it occurs after the words " Electricity Act 1957 ", there shall be substituted the words " or for the purposes of the repayment of the principal of sums borrowed by them under this section or of "; in subsection (2), for the words " securities issued ", in the first place where they occur, there shall be substituted the words " sums borrowed ", and after the words " for the purpose of" there shall be inserted the words " repaying the principal of any sums borrowed by them under this section or for the purpose of "; and in subsection (3), after the words " included references to" there shall be inserted the words " sums borrowed or ".
		In section 3, in subsection (1), the words " by the issue of stock, bonds or other securities under this section " shall be omitted, and for the word " and ", where it occurs after the words " Hydro-Electric Development (Scotland) Act 1943 ", there shall be substituted the words " or for the purposes of the repayment of the principal of sums borrowed by them under this section or of "; and in subsection (2), for the words " securities issued", in the first place where they occur, there shall be substituted the words " sums borrowed ", and after the words " for the purpose of " there shall be inserted the words " repaying the principal of any sums borrowed by them under this section or for the purpose of ".
3. The British Gas Corporation.	The Gas Act 1972 (1972 c. 60).	In section 17(3), in paragraph (b), after the word " Treasury " there shall be inserted the words " in sterling from the Commission of the European Communities or the European Investment Bank, or ".
4. The Post Office.	The Post Office Act 1969 (1969 c. 48).	In section 35(2), for the words " from the Minister (otherwise than by way of temporary loan) " there shall be substituted the words " (otherwise than by way of temporary loan) from the Minister, or, with the consent of the Minister and the approval of the Treasury, from the Commission of the European Communities or the European Investment Bank ".
5. The British Airports Authority.	The Airports Authority Act 1965 (1965 c. 16).	In section 5(2), after the word " Minister " there shall be inserted the words " or, with the consent of the Secretary of State and the approval of the Treasury, may borrow in sterling from the Commission of the European Communities or from the European Investment Bank ".
6. (1) The British Overseas Airways Corporation. (2) The British European Airways Corporation.	The Air Corporations Act 1967 (1967 c. 33).	In section 7(2) (as substituted by paragraph 19 of Schedule 10 to the Civil Aviation Act 1971), after the word " Board " there shall be inserted the words " or, subject to those limits and with the consent of the Secretary of State and the approval of the Treasury, may borrow in sterling from the Com­mission of the European Communities or from the European Investment Bank ".
		In section 10(1), in paragraph (a) the word "tem­porary" shall be omitted; paragraph (b) shall be omitted; and in paragraph (c), for the words " any such loan as is mentioned in the last preceding paragraph " there shall be substituted the words " a loan raised by the corporation ".
7. (1) The Civil Aviation Authority. (2) The British Airways Board.	The Civil Aviation Act 1971 (1971 c. 75).	In section 8(2), for the words " from the Secretary of State otherwise than by way of temporary loan " there shall be substituted the words " otherwise than by way of temporary loan from the Secretary of State, or with the consent of the Secretary of State from the Commission of the European Communities or the European Investment Bank ".
		In section 41(2), after the word " stock " there shall be inserted the words " or borrow in sterling from the Commission of the European Communities or from the European Investment Bank ".
		In section 48(2), the words " and section 7(3) of that Act ", the word " respectively " and the words " and section 41(3) of this Act " shall be omitted.
8. The British Steel Corporation.	The Iron and Steel Act 1967 (1967 c. 17).	In section 19(2), for the words " from the Minister (otherwise than by way of temporary loan) " there shall be substituted the words " (otherwise than byway of temporary loan) from the Secretary of State, or with his consent and the approval of the Treasury from the Commission of the European Communities or the European Investment Bank ".
9. The Covent Garden Market Authority.	The Covent Garden Market Act 1961 (9 & 10 Eliz. 2. c. 49).	In section 38, in subsection (2), the words " may borrow by the issue of stock or debentures " shall be omitted, and at the end of that subsection there shall be inserted the words " may borrow from any person by the issue of stock or debentures, or may borrow from any person any sum in a currency other than sterling, or may borrow any sum in sterling from the Commission of the European Communities or the European Investment Bank ".
	The Covent Garden Market Act 1966 (1966 c. i).	In section 34, at the end of subsection (1) there shall be inserted the words " or the repayment of the principal of, and the payment of interest on, any money borrowed by the Authority (otherwise than by the issue of stock or debentures) under subsection (1) or subsection (2) of section 38 of the Act of 1961 ".
10. The Maplin Development Authority.	The Maplin Development Act 1973 (1973 c. 64).	In section 14(3)(b), after the word " from " there shall be inserted the words " the Commission of the European Communities or ".

Section 4.

SCHEDULE 3 Further Amendments Relating to Borrowing Powers (New Towns)

PART I England and Wales

1 In sections 4(1) and 37(1) of the [1965 c. 59.] New Towns Act 1965 (which provide that development corporations and the Commission for the New Towns shall not have power to borrow money except by way of Government advances), for the words " by way of advance from the Minister under" there shall be substituted the words " in accordance with sections 42 to 43 of ".

2 After section 42 of that Act there shall be inserted the following section:—

“42A Other borrowing powers of development corporations and Commission.

(1) A development corporation or the Commission may borrow temporarily, by way of overdraft or otherwise, either—

(a) in sterling from the Secretary of State, or

(b) with the consent of the Secretary of State and the approval of the Treasury, or in accordance with any general authority given by the Secretary of State with the approval of the Treasury, in any currency from any other person,

such sums as the development corporation or the Commission (as the case may be) may require for meeting their obligations or performing their functions.

(2) With the consent of the Secretary of State and the approval of the Treasury, a development corporation or the Commission may borrow, otherwise than by way of temporary loan,—

(a) in any currency from the Commission of the European Communities or from the European Investment Bank, or

(b) in any currency other than sterling from any person, other than the Secretary of State and the bodies mentioned in the preceding paragraph,

such sums as they may require for enabling them to meet expenditure properly chargeable to capital account (including the provision of working capital), or to make good to revenue account sums applied in meeting liabilities so chargeable.”

3 In section 43 of that Act, the word " and ", where it occurs at the end of paragraph (b), shall be omitted, and at the end of paragraph (c) there shall be inserted the words “and

(d) the aggregate amount for the time being outstanding in respect of the principal of sums borrowed (whether by development corporations or by the Commission) under section 42A of this Act or under section 37A of the [1968 c. 16.] New Towns (Scotland) Act 1968.”.

4 After section 44 of that Act there shall be inserted the following section:—

“44A Treasury guarantees.

(1) The Treasury may guarantee, in such manner and on such conditions as they may think fit, the repayment of the principal of, and the payment of interest on, any sums which a development corporation or the Commission borrow under this Act from a person other than the Secretary of State.

(2) Immediately after a guarantee is given under this section, the Treasury shall lay a statement of the guarantee before each House of Parliament; and where any sum is issued for fulfilling a guarantee so given the Treasury shall, as soon as possible after the end of each financial year, beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest thereon is finally discharged, lay before each House of Parliament a statement relating to that sum.

(3) Any sums required by the Treasury for fulfilling a guarantee under this section shall be charged on and issued out of the Consolidated Fund.

(4) If any sums are issued in fulfilment of a guarantee given under this section in respect of money borrowed by a development corporation or by the Commission, the development corporation or the Commission (as the case may be) shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments, of such amounts as the Treasury may so direct, in or towards repayment of the sums so issued and payments of interest on what is outstanding for the time being in respect of amounts so issued at such rate as the Treasury may so direct.

(5) Any sums received under subsection (4) of this section by the Treasury shall be paid into the Consolidated Fund.”

PART II Scotland

5 In section 4(1) of the New Towns (Scotland) Act 1968 (which provides that a development corporation shall not have power to borrow money except by way of advance from the Secretary of State), for the words "by way of advance from the Secretary of State under " there shall be substituted the words " in accordance with sections 37 and 37A of ".

6 After section 37 of that Act there shall be inserted the following section:—

“37A Other borrowing powers of development corporations.

(1) Subject to section 43 of the [1965 c. 59.] New Towns Act 1965, a development corporation may borrow temporarily, by way of overdraft or otherwise, either—

(a) in sterling from the Secretary of State, or

(b) with the consent of the Secretary of State and the approval of the Treasury, or in accordance with any general authority given by the Secretary of State with the approval of the Treasury, in any currency from any other person,

such sums as the development corporation may require for meeting their obligations or performing their functions.

(2) With the consent of the Secretary of State and the approval of the Treasury, a development corporation may, subject to section 43 of the New Towns Act 1965, borrow, otherwise than by way of temporary loan,—

(a) in any currency from the Commission of the European Communities or from the European Investment Bank, or

(b) in any currency other than sterling from any person, other than the Secretary of State and the bodies mentioned in the preceding paragraph,

such sums as they may require for enabling them to meet expenditure properly chargeable to capital account (including the provision of working capital), or to make good to revenue account sums applied in meeting liabilities so chargeable.”

7 After section 38 of that Act there shall be inserted the following section:—

“38A Treasury guarantees.

(1) The Treasury may guarantee, in such manner and on such conditions as they may think fit, the repayment of the principal of, and the payment of interest on, any sums which a development corporation borrow under this Act from a person other than the Secretary of State.

(2) Immediately after a guarantee is given under this section, the Treasury shall lay a statement of the guarantee before each House of Parliament; and where any sum is issued for fulfilling a guarantee so given the Treasury shall, as soon as possible after the end of each financial year, beginning with that in which the sum is issued, and ending with that in which all liability in respect of the principal of the sum and in respect of interest thereon is finally discharged, lay before each House of Parliament a statement relating to that sum.

(3) Any sums required by the Treasury for fulfilling a guarantee under this section shall be charged on and issued out of the Consolidated Fund.

(4) If any sums are issued in fulfilment of a guarantee given under this section in respect of money borrowed by a development corporation, the development corporation shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments, of such amounts as the Treasury may so direct, in or towards repayment of the sums so issued and payments of interest on what is outstanding for the time being in respect of amounts so issued at such rate as the Treasury may so direct.

(5) Any sums received under subsection (4) of this section by the Treasury shall be paid into the Consolidated Fund.”