The Industry Act 1980 (Increase of Limit) Order 1987

Made19th March 1987

Coming into force20th March 1987

Whereas, a draft of this Order was laid before the House of Commons under section 5(5) of the Industry Act 19801 for approval by resolution of that House.

Now, therefore, the Secretary of State, with the consent of the Treasury, in exercise of his powers under section 5(3) of the Industry Act 19802 hereby makes the following Order:—

Citation and commencement1

This Order may be cited as the Industry Act 1980 (Increase of Limit) Order 1987 and shall come into force on the day after the day on which it is made.

Increase of financial limit2

The financial limit for the purposes of section 3 of the Industry Act 1980 (which relates to companies of which control has been transferred to the Secretary of State by the National Enterprise Board) specified in section 5(3) of the Industry Act 1980 is hereby increased from £4,400 million to £5,250 million.

Giles ShawMinister of State,Department of Trade and Industry12th March 1987

We consent to the making of this Order

Peter LloydMark Lennox-BoydTwo of the Lords Commissioners of Her Majesty’s Treasury19th March 1987

(This note is not part of the Order)

Section 5(3) of the Industry Act 1980, as substituted by section 1(3) of the Industry Act 1981, lays down a financial limit for the purposes of section 3 of the Act of £4,400 million but provides that the Secretary of State may by Order made with the consent of the Treasury increase such limit to an amount not exceeding £5,250 million.

The financial limit applies to the aggregate of:—

a

expenditure in relation to the acquisition by the Secretary of State of any shares in companies in which controlling interests have been transferred to him by the National Enterprise Board (but excluding an amount equal to so much of the capital debt of the National Enterprise Board as related to securities of a company when control of it was transferred to the Secretary of State),

b

the general external borrowing (otherwise than outstanding interest) of such companies in which the Secretary of State has not ceased to hold a controlling interest, and their subsidiaries, and

c

sums issued to meet guarantees by the Secretary of State of the obligations of such companies to the extent that those sums have not been repaid.

This Order increases the financial limit from £4,400 million to £5,250 million.