EXPLANATORY NOTE

(This note is not part of the Order)

This order establishes the Greater Manchester Combined Authority.

Part 6 of the Local Democracy, Economic Development and Construction Act 2009 (“the 2009 Act”) provides for the establishment of combined authorities for the areas of two or more local authorities in England. Combined authorities are bodies corporate which may be given power to exercise functions relating to transport and to economic development and regeneration in their area.

The Secretary of State may only establish a combined authority for an area where a scheme for such an authority has been published under section 109 of the 2009 Act. This order has been made following the publication of such a scheme on 29th March 2010 by the 10 metropolitan district councils (the constituent councils) whose areas together make up the combined area of the new authority. The scheme is available at www.agma.gov.uk.

Part 2 of the Order establishes the new authority, to be known as the Greater Manchester Combined Authority (“the GMCA”) on 1st April 2011, and makes provision for its constitution and funding.

Article 4 of and Schedule 1 to the Order make provision for the constitution of the GMCA. This is supplemental to the provision that is made by Part I of Schedule 12 to the Local Government Act 1972 (see paragraph (6A) of that Schedule, as amended by the 2009 Act).

Article 5 makes provision for the funding, by the constituent councils, of those costs of the GMCA that relate to the exercise of its economic development and regeneration functions.

Part 3 is about the transport aspects of the combined authority. Article 6 dissolves the Greater Manchester Integrated Transport Area (formerly the Greater Manchester Passenger Transport Area) and abolishes the Greater Manchester Integrated Transport Authority (formerly the Greater Manchester Passenger Transport Authority) and transfers its functions and property, rights and liabilities to the Combined Authority. Article 7 makes general adaptations to primary and subordinate legislation, so as that references to an integrated transport authority or area are to be treated as extending to the Combined Authority and its area, and introduces Schedule 2 which makes specific amendments to section 9 of the Transport Act 1968.

Article 8 delegates certain transport functions (in particular those relating to the placing of traffic light signals) of the constituent councils to the Combined Authority and provision is made for defraying the cost of discharging those functions. It is further provided that the delegated functions are not exercisable by the constituent councils either concurrently or in place of the GMCA and are to be treated as functions of the GMCA for the purposes of section 101 of the Local Government Act 1972. Article 9 makes the Greater Manchester Passenger Transport Executive an executive body of the Combined Authority and changes its name to “Transport for Greater Manchester”. Section 101 of the Local Government Act 1972 is modified in its application to the Combined Authority so as to enable it (and a joint committee of local authorities of which the Combined Authority is a constituent authority) to arrange for the discharge of functions by Transport for Greater Manchester. Section 101 of that Act and section 19 of the Local Government Act 2000 (and regulations made under it) are also applied with modifications so as to enable the GMCA to sub-delegate to Transport for Greater Manchester any other functions delegated to the GMCA by the constituent councils.

Part 4 confers additional functions on the GMCA. Article 10 confers functions of the constituent councils relating to economic development and regeneration. These are set out in Schedule 3 to the Order and are to be exercised concurrently with the constituent councils. Articles 11 to 14 make some general, incidental provisions relating to the GMCA to enable it to carry out its functions more effectively.

Part 5 makes supplementary provision. Article 15 transfers the Commission for the New Economy and Manchester Investment and Development Agency Service Limited, companies owned by the constituent councils, to the GMCA. Article 16 provides for the constituent councils to transfer other property, rights and liabilities via a scheme to be made under this Order. Article 17 ensures continuity when functions, property, rights or liabilities are transferred by the Order or a scheme made under it.

A full regulatory impact assessment has not been prepared as this instrument will have no impact on the costs of business and the voluntary sector.