PART 2LOCAL GOVERNMENT REORGANISATION

CHAPTER 2CONTROL OF DISPOSALS AND CONTRACTS OF EXISTING COUNCILSF1AND THEIR FINANCES

Annotations:
Amendments (Textual)

10Control of disposals and contracts of existing councilsF2and their finances

1

The Department may direct that, with effect from a specified date, an existing council shall not, without the written consent of F3its successor council ora specified statutory transition committee—

a

dispose of any land if the consideration for the disposal exceeds a specified sum;

b

enter into any capital contract—

i

under which the consideration payable by the council exceeds a specified sum; or

ii

which includes a term allowing the consideration payable by the council to be varied;

c

enter into any non-capital contract under which the consideration payable by the council exceeds a specified sum, where—

i

the period of the contract extends beyond a specified date; or

ii

under the terms of the contract, that period may be extended beyond that date.

F4d

borrow any sum exceeding a specified sum (or any sums exceeding in total any specified sum);

e

reduce any financial reserve of a specified description below a specified limit.

2

In subsection (1)—

  • “capital contract” means a contract as regards which the consideration payable by the council is capital expenditure;

  • “capital expenditure” means expenditure which falls to be capitalised in accordance with proper practices (within the meaning of Article 6(3) of the Local Government (Northern Ireland) Order 2005 (NI 18));

  • “non-capital contract” means a contract which is not a capital contract.

3

A direction under subsection (1)(b) or (c) may provide that the consent of F5a successor council ora specified statutory transition committee is not required in relation to a contract of a specified description.

4

A direction—

a

shall be in writing;

b

may make different provision in relation to different matters for which consent is required;

c

may be varied or revoked by a subsequent direction.

5

In this Chapter—

  • “direction” means a direction under this section;

  • “specified”, in relation to a direction, means specified in the direction;

  • “statutory transition committee” means a committee established under section 15.

6

References in this Chapter to disposing of land include references to—

a

dealing with land in any way mentioned in section 45(3) of the Interpretation Act (Northern Ireland) 1954 (c. 33);

b

entering into a contract to dispose of land;

c

granting an option to acquire land.