Part IV E+W+S Finance

General financial provisionsE+W+S

58 Advances and grants to development corporations F1....E+W

(1)For the purpose of enabling a development corporation—

(a)to meet expenditure properly chargeable to capital account (including the provision of working capital), or

(b)to make good to revenue account sums applied in meeting liabilities so chargeable,

the Secretary of State may (subject to section 60 below) make to the corporation advances repayable over such periods [F2, carrying interest at such rates and on such other terms] as may be approved by the Treasury.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(3)It shall be a condition of the making of advances to a development corporation under subsection (1) above that the proposals for development submitted to the Secretary of State under section 7 above shall be approved by the Secretary of State with the Treasury’s concurrence as being likely to secure for the corporation a return which is reasonable, having regard to all the circumstances, when compared with the cost of carrying out those proposals.

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

F4(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F658A Grants to development corporations F7....E+W

(1)For the purpose of enabling a development corporation—

(a)to meet expenditure properly chargeable to capital account and incurred or to be incurred in providing, or in making contributions towards the cost to others of providing, any of the facilities specified in subsection (2) below, or

(b)to make good to revenue account sums applied in meeting liabilities so chargeable and arising out of the provision of any of those facilities,

the Secretary of State may, out of money provided by Parliament, make grants to the corporation of such amount as may be approved by the Treasury.

(2)The facilities referred to in subsection (1) above are the following—

(a)roads, paths, bridges and car parks;

(b)public open spaces, recreation grounds, playgrounds and landscaping;

(c)meeting halls and assembly rooms;

(d) any other facilities similar to those specified in paragraph ( a ), ( b ) or ( c ) above.

(3)For the purpose of enabling a development corporation to meet expenditure properly chargeable to revenue account the Secretary of State may, out of money provided by Parliament, make grants to the corporation of such amount as may be approved by the Treasury.

F8(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

59 Other borrowing powers of development corporations F10...E+W

(1)A development corporation F11... may borrow temporarily, by way of overdraft or otherwise, either—

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

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

such sums as the development corporation [F12may require for meeting its obligations or performing its functions].

(2)With the consent of the Secretary of State and the Treasury’s approval, a development corporation F13... 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 [F14it may require for enabling it] 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.

60 Limit on borrowing by development corporations F15...E+W+S

[F16(1)The aggregate of the amounts outstanding in respect of the principal of the following sums—]

(a)the sums advanced to development corporations before the commencement of this Act under section 12(1) of the M1New Towns Act 1946 in its application to England and Wales or under section 42(1) of the M2New Towns Act 1965, and, after the commencement of this Act, under section 58(1) above, (which corresponds to those subsections),

(b)the sums advanced to development corporations before the commencement of the M3New Towns (Scotland) Act 1968 under that section 12(1) in its application to Scotland (to which section 37(1) of that Act of 1968 corresponds) and, after the commencement of that Act of 1968, under that section 37(1); [F17and]

F18(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)the sums borrowed [F19by development corporations] before the commencement of this Act under section 42A of that Act of 1965 and, after the commencement of this Act, under section 59 above (which corresponds to that section), or under section 37A of that Act of 1968,

[F16shall not at any time exceed the limit imposed by or under subsection [F20(2) and (3)] below.]

[F21(2)The said limit, except during the period specified in subsection (4) below, is £4,600 million or such greater sum not exceeding £5,250 million as the Secretary of State may by order specify.

(3)No order shall be made under subsection (2) above unless a draft of the order has been laid before, and approved by resolution of, the House of Commons.

F22(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

61 Provisions supplemental to s. 58.E+W

(1)The Treasury may issue to the Secretary of State out of the National Loans Fund such sums as are necessary to enable him to make advances [F23to a development corporation under section 58(1) above]

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F24

(2)Any sums received by the Secretary of State by way of repayment of or interest on advances under section 58(1)F25... shall be paid into the National Loans Fund.

(3)The Secretary of State shall lay before each House of Parliament a statement of any sums payable to him by way of repayment of or interest on any such advances and not duly received by him.

62 Treasury guarantees.E+W

(1)The Treasury may guarantee in such manner and on such conditions as they may think fit— [F26the repayment of the principal of, the payment of interest on and the discharge of any other financial obligation in connection with] any sums which a development corporation [F27borrows] 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.

(3)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—

(a)beginning with that in which the sum is issued, and

(b)ending with that in which all liability in respect of the principal of the sum, and in respect of interest on it, is finally discharged,

lay before each House of Parliament a statement relating to that sum.

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

(5)If any sums are issued in fulfilment of a guarantee given under this section in respect of money borrowed by a development corporation[F28, the corporation] shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct—

(a)payments, of such amounts as the Treasury may so direct, in or towards repayment of the sums so issued; and

(b)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.

(6)Any sums received under subsection (5) above by the Treasury shall be paid into the Consolidated Fund.