New Towns Act 1981 (c. 64)

Part I E+W New Towns and Their Development Corporations

Development corporations E+W

5 Restrictions on powers of development corporations. E+W

(1) A development corporation does not have power to borrow money except in accordance with sections 58 to 60 below.

(2) The Secretary of State may give directions to any development corporation—

(a) for restricting the exercise by them of any of their powers under this Act, or

(b) for requiring them to exercise those powers in any manner specified in the directions.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(3) Before giving any directions to a development corporation under subsection (2) above, the Secretary of State shall—

(a) consult with the chairman of the corporation, or,

(b) if the chairman is not available, consult with the deputy chairman,

unless he is satisfied that, on account of urgency, such consultation is impracticable.

(4) A transaction between—

(a) a person, and

(b) a development corporation acting in purported exercise of their powers under this Act,

shall not be void by reason only that it was carried out in contravention of a direction given by the Secretary of State under subsection (2) above, and such person shall not be concerned to see or enquire whether a direction under that subsection has been given or complied with.

(5) Nothing in this Act shall be construed as authorising a development corporation to carry on—

(a) any undertaking for the supply of water, electricity or gas [F2 or for the provision of sewerage services], or

(b) any railway, light railway, tramway or trolley vehicle undertaking,

except under the authority of an enactment not contained in this Act specifically authorising them to do so or, in the case of a trolley vehicle undertaking, under the authority of such an enactment or of an order under section 32 below.

Textual Amendments

F1 Words repealed by New Towns and Urban Development Corporations Act 1985 (c. 5, SIF 123:3, 4), s. 14(2), Sch. 4

F2 Words inserted by Water Act 1989 (c. 15, SIF 130), s. 190(1), Sch. 25 para. 64(1) (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)

Modifications etc. (not altering text)

C1 S. 5(2)(3) functions made exercisable (E.) (24.7.2018) by The New Towns Act 1981 (Local Authority Oversight) Regulations 2018 (S.I. 2018/891), regs. 1, 3(1) (with reg. 3(2))