New Towns Act 1981

39 Power of development corporation to transfer undertakings. E+W

(1) Subject to the provisions of this section, a development corporation may, by an agreement made with any local authority or any statutory undertakers and approved by the Secretary of State with the concurrence of the Treasury—

(a) transfer to that local authority any part of the undertaking of the corporation, or

(b) transfer to those statutory undertakers any part of the undertaking of the corporation which consists of a statutory undertaking,

upon such terms as may be prescribed by the agreement.

The foregoing provision is without prejudice to the powers of development corporations under this Act to dispose of any of their property, including any trade or business carried on by them.

(2) Before approving an agreement under this section the Secretary of State shall consult with the council of every county and of every district in which the whole or any part of the area of the new town is situated, except, in the case of an agreement made with such a council, the council with whom it is made.

[F1 (2A) Subsection (2) above shall have effect in relation to Wales as if for “and of every district” there were substituted or county borough.]

(3) Before approving an agreement under this section for the transfer of a statutory undertaking, the Secretary of State shall publish in the London Gazette, and in one or more newspapers circulating in the area in which the new town is situated, a notice stating that the agreement has been submitted for approval, and describing the general effect of the agreement.

(4) If within 28 days from the publication of the notice in the London Gazette in accordance with subsection (3) above any objection to the agreement is made by any statutory undertakers—

(a) who are carrying on, or are authorised to carry on, a statutory undertaking of a character similar to the statutory undertaking proposed to be transferred by the agreement, and

(b) who do so within the area in which the new town is situated or any adjacent area,

subsection (1) above shall apply in relation to the agreement as if for the reference to the Secretary of State there were substituted a reference to the Secretary of State and the appropriate Minister.

(5) If the Secretary of State is satisfied that it is expedient, having regard to any agreement made or proposed to be made under this section, that the liability of the development corporation in respect of advances made to them under the following provisions of this Act should be reduced, he may, [F2 with the Treasury’s consent, by order], reduce that liability to such extent as may be specified in the order.

[F3 (5A) No order shall be made under subsection (5) above unless a draft of the order has been laid before, and approved by resolution of, the House of Commons].

(6) The payment of any sums payable by a local authority for the purposes of an agreement under this section shall be a purpose for which that authority may borrow money.

[F4 (7) This section shall have effect as if references to satutory undertakers included references to the operator of any telecommunications code system and as if for this purpose—

(a) references to a statutory undertaking were references to the running of such a system; and

(b) references to the appropriate Minister were references to the Secretary of State for Trade and Industry.]

Textual Amendments

F1 S. 39(2A) inserted (1.4.1996) by 1994 c. 19, s. 66(6), Sch. 16 para. 63(6) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2)); S.I. 1996/396, art. 4, Sch. 2

F2 Words substituted by New Towns and Urban Development Corporations Act 1985 (c. 5, SIF 123:3, 4), s. 14(1), Sch. 3 para. 6(a)

F3 S. 39(5A) inserted by New Towns and Urban Development Corporations Act 1985 (c. 5, SIF 123:3, 4), s. 14(1), Sch. 3 para. 6(b)

F4 S. 39(7) inserted by Telecommunications Act 1984 (c. 12, SIF 96), Sch. 4 para. 79(7), Sch. 5 para. 45

Modifications etc. (not altering text)

C1 S. 39 extended by Water Act 1989 (c. 15, SIF 130), s. 190(1), Sch. 25 para. 1(5) (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58)