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Local Government Act (Northern Ireland) 2014

Type Act of the Northern Ireland Assembly

Publication 2014-05-12

Last updated 2024-06-25

State In force

Jurisdiction Northern Ireland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) The period specified in a notice under subsection (1) must not exceed six months or (if shorter) the remainder of the person's term of office.

(3) The effect of a notice under subsection (1) is to suspend or partially suspend the person concerned as mentioned in that subsection.

(4) A decision of the Commissioner under this section does not prevent the Commissioner from continuing with the investigation under section 55 which gave rise to the interim report concerned and producing a report under section 57, or a further interim report under section 58, in respect of any matters which are the subject of the investigation.

(5) The suspension or partial suspension of any person under this section must not extend beyond the day on which a notice under section 59 is given to the clerk of the council concerned with respect to that person.

(6) A copy of any notice under this section must be given to any person who is the subject of the notice.

(7) Where a person is no longer a councillor of the council concerned but is a councillor of another council—

(a) the notice under subsection (1) must be given to the clerk of that other council and a copy of that notice must be given to the clerk of the council concerned;

(b) the reference in subsection (5) to the clerk of the council concerned is to be construed in accordance with section 59.

(8) The Commissioner must take reasonable steps to inform any person who made any allegation which gave rise to the investigation under section 55 of the Commissioner's decision under this section.

(9) A person who is suspended (or partially suspended) by the Commissioner by notice as mentioned in subsection (1) may appeal to the High Court if the High Court gives the person leave to do so.

(10) An appeal under subsection (9) may be made—

(a) against the suspension (or partial suspension);

(b) against the length of the suspension (or partial suspension).

Recommendations

61

(1) The Commissioner, having adjudicated on any matter, may make recommendations to a council about any matters relating to—

(a) the exercise of the council's functions; or

(b) the failure to observe the code of conduct.

(2) The Commissioner—

(a) must send a copy of any recommendations under subsection (1) to the Department; and

(b) may send a copy of those recommendations to any other public body.

(3) A council to which recommendations are made under subsection (1) must—

(a) consider the recommendations; and

(b) within such period beginning with the day on which the recommendations are received as the Commissioner may specify, prepare a report for the Department giving details of what action the council has taken or is proposing to take as a result of the recommendations.

(4) A council's function of considering a report under subsection (3) may be discharged only by the council (and accordingly, is not to be a function to which section 7 applies).

(5) If the Department is not satisfied with the action the council has taken or proposes to take in relation to the recommendations, the Department may require the council to publish a statement giving details of the recommendations made by the Commissioner and of the council's reasons for not fully implementing the recommendations.

Disclosure and registration of councillors' interests, etc.

Disclosure and registration of councillors’ interests, etc.

62

(1) The clerk of each council must establish and maintain a register of interests of its councillors.

(2) Any participation by a councillor in any business which is prohibited by the code of conduct is not a failure to comply with the code of conduct if the councillor has acted in compliance with sections 28 to 31 of the Local Government Act (Northern Ireland) 1972.

(3) A council must ensure that copies of the register maintained under this section are available at an office of the council for inspection by members of the public at all reasonable hours.

(4) As soon as practicable after the establishment of a register under this section, the council must—

(a) publish in one or more newspapers circulating in its district a notice which—

(i) states that copies of the register are available at an office of the council for inspection by members of the public at all reasonable hours; and

(ii) specifies the address of that office; and

(b) inform the Commissioner and the Department that copies of the register are so available.

Miscellaneous

Extension of 1996 Order

63

(1) The provisions of the 2016 Act set out below have effect inrelation to this Part as follows, and as if the references to the Ombudsman in the 2016 Act were references to the Commissioner.

(2) In section30 (investigation procedure) of the 2016 Act, subsections (5) and (7)(a) apply in relation to an investigation under section 55 as they apply in relation to an investigation under the 2016 Act.

(3) Section31 (information, documents, evidence and facilities) of the 2016 Act, except for subsections (2)(a) and (4), applies in relation to an investigation under section 55—

(a) as it applies in relation to an investigation under the 2016 Act,

(b) as if the references to the listed authority being investigated were references to the person being investigated under this Part, and

(4) Section33 (obstruction and contempt) of the 2016 Act, except for subsection (3)—

(a) applies in relation to the functions of the Commissioner under this Part as it applies in relation to the functions of the Ombudsman under the 2016 Act, and

(b) applies in relation to an investigation under section 55 as it applies in relation to an investigation under the 2016 Act.

(5) In section46 (reports to the Assembly) of the 2016 Act, subsections (1) and (4) apply in relation to functions of the Commissioner under this Part as they apply in relation to functions of the Ombudsman under the 2016 Act.

(6) Section48 (privilege for certain publications) of the 2016 Act applies in relation to reports, investigations, adjudications or notices under this Part as it applies in relation to reports and investigations under the 2016 Act.

(7) Section 49 (disclosure of information) of the 2016 Act –

(a) applies in relation to information obtained by the Commissioner in accordance with this Part as it applies in relation to information obtained by the Ombudsman in accordance with the 2016 Act,

(b) applies as if the references to section 10 (alternative resolution of complaints) of the 2016 Act were references to section 55(2) of this Act,

(c) applies as if the reference in section 49(2)(e) to section 51 (consultation and co-operation with other ombudsmen) only applied in respect of the persons listed in section 51(4)(i) and (j) (local government auditor and Comptroller and Auditor General), and

(d) applies as if the references to section 54 and 55 (court proceedings) were omitted.

(8) In Schedule1 (The Northern Ireland Public Services Ombudsman) of the 2016 Act—

(a) paragraph 14 (delegation of functions) applies in relation to functions of the Commissioner under this Part as it applies in relation to functions of the Ombudsman under the 2016 Act,

(b) paragraph 16 (advisers) applies in relation to the functions of the Commissioner under this Part as it applies in relation to the functions of the Ombudsman under the 2016 Act,

(9) The following provisions of the 2016 Act apply in relation to anadjudication hearing under section 56A as they apply in relation to an investigation under the 2016 Act—

(a) section 30(7)(b) of the 2016 Act (legal representation),

(b) section 30(8) of the 2016 Act (payments to persons giving evidence),

(d) section 33 of the 2016 Act (obstruction and contempt) except for subsection (3).

Expenditure of Commissioner under this Act

64

(1) Before the commencement of each financial year the Commissioner must prepare an estimate of the amount of the expenses of the Commissioner under this Act.

(2) The Department must apportion the amount estimated in accordance with subsection (1) between all the councils in Northern Ireland in such manner as the Department, after consultation in accordance with subsection (3), considers appropriate.

(3) The Department must consult—

(a) councils; and

(b) such associations or bodies representative of councils as appear to the Department to be appropriate,

about the manner in which the amount mentioned in subsection (2) is to be apportioned.

(4) The Department may deduct from any grant payable under section 27A of the Local Government Finance Act (Northern Ireland) 2011 to a council for a financial year the amount apportioned to it under subsection (2).

Interpretation

65

(1) In this Part—

“the 2016 Act” means the Public Services Ombudsman Act (Northern Ireland) 2016;

“code of conduct” means the code of conduct under section 53;

“the Commissioner” means the Ombudsman (within the meaning of the 2016 Act) who is to be known, for the purposes of exercising functions under this Part, as the Northern Ireland Local Government Commissioner for Standards;

“councillor” includes a person treated as a non-voting member by section 17 or falling within section 28(4).

(2) Any reference in this Part to a councillor being partially suspended from being a councillor includes a reference to a person being prevented from exercising particular functions or having particular responsibilities as a councillor.

(3) Where a councillor is suspended otherwise than partially the councillor is also suspended from being a member of any committee, joint committee, or sub-committee of the council.

(4) A councillor who is disqualified under this Part from being a councillor is also disqualified from being a member of any committee, joint committee, or sub-committee of the council.

(5) Where a councillor who is suspended otherwise than partially or is disqualified under this Part is also a member of any other public body (whether as an external representative of the council or otherwise), the councillor is also suspended or disqualified from being a member of that body and any committee or sub-committee of that body.

(6) Any reference in this Part to a councillor being partially suspended from being a councillor includes a reference to the councillor being partially suspended from being a member of any other public body of which the councillor is a member (whether as an external representative of the council or otherwise) and the reference in subsection (2) to particular functions or particular responsibilities as a councillor includes particular functions or particular responsibilities as a member of that body.

PART 10 — COMMUNITY PLANNING

General

Community planning

66

(1) A council must—

(a) initiate; and

(b) having done so, maintain, facilitate and participate in,

community planning for its district.

(2) Community planning for a district is a process by which the council and its community planning partners—

(a) identify long-term objectives for improving—

(i) the social well-being of the district;

(ii) the economic well-being of the district; and

(iii) the environmental well-being of the district;

(b) identify long-term objectives in relation to the district for contributing to the achievement of sustainable development in Northern Ireland; and

(c) identify actions to be performed and functions to be exercised by the council and its community planning partners (including actions and functions related to the planning, provision and improvement of public services) for the purpose of meeting the objectives identified under paragraphs (a) and (b).

(3) In subsection (2)(a)—

(a) the reference to improving the social well-being of the district includes promoting equality of opportunity in accordance with section 75 of the Northern Ireland Act 1998 and, without prejudice to this, having regard to the desirability of promoting good relations; and

(b) the reference to improving the economic well-being of the district includes tackling poverty, social exclusion and patterns of deprivation;

and expressions used in this subsection and in section 28E of that Act (Executive Committee's strategy relating to poverty, social exclusion etc.) have the same meaning as in that section.

(4) Every community planning partner of a council—

(a) must participate in community planning for the district to the extent that such planning is connected with the partner's functions; and

(b) must assist the council in the discharge of its duties under subsection (1).

(5) For the purposes of this section, a reference to an action to be performed or a function to be exercised by a council or one of its community planning partners is a reference to an action or function which is within the powers of the council or partner.

(6) In the discharge of its duties under subsection (1) a council must where appropriate have regard to its plan strategy and its local policies plan under sections 8 and 9 of the Planning Act (Northern Ireland) 2011.

Community planning partners

67

(1) The Department may by order specify the bodies or persons who are to be the community planning partners of a council.

(2) The Department must not make an order containing provisions under subsection (1) unless a draft of the order has been laid before, and approved by resolution of, the Assembly.

(3) The Department must not make an order under subsection (1) unless it has consulted—

(a) the bodies and persons specified in the order as community planning partners of a council;

(b) district councils; and

(4) Subsections (2) and (3) do not apply to an order under subsection (1) which is made solely in consequence of a change of name of a body or in consequence of a body ceasing to exist; but such an order is subject to negative resolution.

Community plan

Production of community plan

68

(1) Once community planning for a district has reached the stage described in subsection (2), the council must produce a document (a “community plan”) containing the information described in subsection (3).

(2) The stage referred to in subsection (1) is reached when the council is of the opinion that the degree of consensus amongst the community planning partners and the council—

(a) as to community plan objectives for the district is such that it is appropriate to set such objectives in the community plan; and

(b) as to the actions to be performed and functions to be exercised for the purpose of achieving those objectives is such that it is appropriate to describe them in the community plan.

(3) The information to be contained in the community plan is—

(a) a description of the community plan objectives which the council considers it appropriate to set having regard to the consensus referred to in subsection (2)(a); and

(b) a description of the actions to be performed and functions to be exercised for the purpose of achieving those objectives which the council considers it appropriate to include in the plan having regard to the consensus referred to in subsection (2)(b).

(4) The community plan—

(a) must be produced as soon as is reasonably practicable after community planning for the district has reached the stage described in subsection (2); and

(b) once produced, must be published as soon as is reasonably practicable by the council.

Duty to review community plan

69

(1) A review must be completed in accordance with section 70—

(a) before the fourth anniversary of the date on which the community plan was published under section 68(4); and

(b) subsequently, before the fourth anniversary of the date on which the last such review was completed.

(2) For the purposes of this section and section 70, a community plan review is completed on—

(a) the date on which an amended community plan is published under section 70(6); or

(b) if a review does not result in any amendment to a community plan, the date on which the council decided that it was not required under section 70(4) to amend the plan.

Review of community plan

70

(1) This section sets out the process by which a community plan must be reviewed.

(2) A council and, subject to subsection (3), its community planning partners must—

(a) taking into account any statement published under section 71(3) since the community plan was produced or (as the case may be) its last review was completed, consider the extent to which—

(i) the community plan objectives contained in the plan have been met; and

(ii) if an objective has not been met, progress has been made towards meeting the objective;

(b) in the light of the consideration under paragraph (a) and any other factors which the council or a partner thinks appropriate, consider—

(i) whether the community plan objectives should be modified;

(ii) whether new objectives should be set;

(iii) whether the plan's description of the actions to be taken and functions to be exercised for the purpose of achieving a community plan objective should be modified (whether in the light of a modification of an objective or for any other reason);

(iv) where the council or partner considers that a new objective should be set, which actions should be taken and which functions exercised for the purpose of achieving the objective.

(3) A community planning partner's duty under subsection (2) extends only to matters connected with its functions.

(4) If the requirement in subsection (5) is met a council must, following the consideration required by subsection (2), amend the community plan for its district by doing all or any of the following—

(a) modifying the community plan objectives;

(b) setting new objectives;

(c) modifying the actions to be taken and functions to be exercised for the purpose of achieving a community plan objective;

(d) describing the actions to be taken and functions to be exercised for the purpose of achieving a new objective.

(5) The requirement is that, in relation to a proposed amendment, the council is of the opinion that the degree of consensus amongst the community planning partners and the council in relation to the amendment is such that it is appropriate to make the amendment.

(6) The council must, as soon as is reasonably practicable after becoming subject to the duty under subsection (4), publish an amended community plan.

Monitoring

71

(1) A council and its community planning partners must ensure that arrangements are made for monitoring—

(a) progress made towards meeting the community plan objectives for the district contained in the current community plan; and

(b) the effectiveness of actions taken and functions exercised for the purpose of meeting those objectives.

(2) A community planning partner's duty under subsection (1) extends only to matters connected with its functions.

(3) A council must at least once every two years publish a statement which describes—

(a) progress made and outcomes achieved in meeting the community plan objectives for its district; and

(b) actions taken and functions exercised for the purpose of meeting those objectives.

(4) It is the duty of each community planning partner of a council to provide such information as the council may reasonably require in order to enable it to comply with its duty under subsection (3).

(5) The first statement under subsection (3) must be produced within two years of the date on which a community plan is published under section 68(4).

Implementation

72

(1) This section applies to a council or one of its community planning partners if the current community plan for the district describes—

(a) an action to be performed by the council or partner for the purpose of achieving a community plan objective; or

(b) a function to be exercised by the council or partner for the purpose of achieving a community plan objective.

(2) The council or community planning partner must take all reasonable steps to perform the action or exercise the function in accordance with the community plan.

Community involvement

73

(1) A council and its community planning partners must seek the participation of and encourage the persons mentioned in subsection (2) to express their views, and take those views into account, in connection with—

(a) community planning;

(b) the production of a community plan for the district; and

(2) The persons are—

(a) persons resident in the district;

(b) persons who are not resident in the district but who receive services provided by the council or one of its community planning partners;

(d) representatives of persons carrying on businesses in the district;

(e) other persons who, in the opinion of the council, are interested in the improvement of the district's social, economic or environmental well-being.

(3) For the purposes of this section “relevant voluntary bodies” means voluntary bodies whose activities directly or indirectly benefit the whole or any part of the district.

(4) A registered housing association which provides housing in the district is a relevant voluntary body for the purposes of this section.

(5) In this section—

“registered housing association” has the same meaning as in Part 2 of the Housing (Northern Ireland) Order 1992;

“voluntary body” means any association carrying on or proposing to carry on any activities otherwise than for the purpose of gain by the association or by individual members of the association.

Miscellaneous

Guidance

74

(1) The Department may issue guidance about—

(a) any aspect of community planning;

(b) the production and review of community plans;

(2) Before issuing guidance under this section the Department must consult councils and—

(a) such associations or bodies representative of councils;

(b) such associations or bodies representative of officers of councils; and

as appear to the Department to be appropriate.

(3) A council and its community planning partners must have regard to any guidance issued under this section.

Duties of departments in relation to community planning

75

So far as it is reasonably practicable to do so, every Northern Ireland department must—

(a) in exercising any function which might affect community planning, promote and encourage community planning;

(b) have regard to any implications of a community plan for the exercise of that department's functions.

Establishment of bodies corporate

76

(1) The Department may—

(a) on the application of a council and at least one of its community planning partners; and

(b) after considering a report on the matters specified in subsection (2) made to the Department by the council and at least one of the council's community planning partners,

by order establish a body corporate having the constitution and functions specified in the order.

(2) The matters referred to in subsection (1)(b) are—

(a) what consultations were conducted on the question whether to apply for an order;

(b) the views on that question of the council and the council's community planning partners;

(d) what functions should be specified in the order; and

(e) such other matters as may be prescribed.

(3) An order made under subsection (1) may include provisions about—

(a) the membership of the body established under it;

(b) the proceedings of the body;

(d) the appointment and employment by the body of staff;

(e) the supply by councils and other persons of services for the body;

(f) the audit of the accounts of the body;

(g) the dissolution of the body; and

(h) such other matters as the Department thinks fit.

(4) A function may be specified under subsection (1) and accordingly fall to be discharged by the body in relation to which it is specified notwithstanding that under any statutory provision the function falls to be discharged also by another body or person.

(5) Subsection (4) has effect notwithstanding—

(a) the absence of any statutory provision or rule of law providing for the discharge of that function otherwise than by the other body or person having that function; or

(b) any statutory provision or rule of law preventing the discharge of that function in that way.

(6) In subsection (5) “statutory provision” does not include this section.

(7) Section 19 of the Interpretation Act (Northern Ireland) 1954 applies to a body established under subsection (1).

Amendments of the Planning Act (Northern Ireland) 2011

77

(1) The Planning Act (Northern Ireland) 2011 is amended as follows.

(2) In section 8 (plan strategy), in subsection (5) (matters which a council must take account of in preparing a plan strategy) after paragraph (a) there shall be inserted—

(aa) the council's current community plan;

(3) In section 9 (local policies plan), in subsection (6) (matters which a council must take account of in preparing a local policies plan) after paragraph (a) there shall be inserted—

(aa) the council's current community plan;

(4) In section 250 (interpretation), in subsection (1) after the definition of “clerk of the council” there shall be inserted—

“current community plan” has the same meaning as in Part 10 (community planning) of the Local Government Act (Northern Ireland) 2014;

(5) The amendments made by this section do not apply in relation to a council until the council has published a community plan under section 68(4).

Interpretation

78

(1) For the purposes of this Part—

“community planning” must be construed in accordance with section 66;

“community planning partner” means a person falling within section 67;

“current community plan” means the community plan for a district published under section 68(4) or, where the plan has been amended following a review under section 70, the plan most recently published under section 70(6).

(2) Any reference in this Part to an action being performed or a function being exercised for the purposes of achieving a community plan objective is a reference to an action being performed or a function being exercised as described in section 66(2)(c).

(3) Where this Part refers to a thing being connected with a community planning partner's functions, the functions in question do not include the partner's functions under this Part.

(4) A document referred to in this Act as a “community plan” (or by an expression including that term) may instead be referred to by whatever alternative name is agreed between a council and its community planning partners.

PART 11 — GENERAL POWERS OF COUNCILS

Council’s general power of competence

79

(1) A council has power to do anything that individuals generally may do.

(2) Subsection (1) applies to things that an individual may do even though they are in nature, extent or otherwise—

(a) unlike anything the council may do apart from subsection (1); or

(b) unlike anything that other public bodies may do.

(3) In this section “individual” means an individual with full capacity.

(4) Where subsection (1) confers power on the council to do something, it confers power (subject to sections 80 and 81) to do it in any way whatever, including—

(a) power to do it for a charge, or without charge; and

(b) power to do it for, or otherwise than for, the benefit of the council, its district or persons resident or present in its district.

(5) The generality of the power conferred by subsection (1) (“the general power”) is not limited by the existence of any other power of the council which (to any extent) overlaps the general power.

(6) Any such other power is not limited by the existence of the general power (but see section 82(2)).

Boundaries of the general power

80

(1) If exercise of a pre-commencement power of a council is subject to restrictions, those restrictions apply also to exercise of the general power so far as it is overlapped by the pre-commencement power.

(2) The general power does not enable a council to do—

(a) anything which the council is unable to do by virtue of a pre-commencement limitation; or

(b) anything which the council is unable to do by virtue of a post-commencement limitation which is expressed to apply—

(i) to the general power;

(ii) to all of the council's powers; or

(iii) to all of the council's powers but with exceptions that do not include the general power.

(3) The general power does not confer power to—

(a) make or alter arrangements of a kind which may be made under Part 4;

(b) make or alter arrangements of a kind which are made, or may be made, by or under Part 5 or Part 6;

(c) make or alter any contracting-out arrangements, or other arrangements within neither of paragraphs (a) and (b), that authorise a person to exercise a function of a council.

(4) In this section—

“post-commencement limitation” means a prohibition, restriction or other limitation expressly imposed by a statutory provision which comes into operation after the commencement of section 79;

“pre-commencement limitation” means a prohibition, restriction or other limitation expressly imposed by a statutory provision (including a provision of or made under this Act) which comes into operation on or before the commencement of section 79;

“pre-commencement power” means power conferred by a statutory provision which comes into operation before the commencement of section 79.

Limits on charging in exercise of general power

81

(1) Subsection (2) applies where—

(a) a council provides a service to a person otherwise than for a commercial purpose; and

(b) its providing the service to the person is done, or could be done, in exercise of the general power.

(2) The general power confers power to charge the person for providing the service to the person only if—

(a) the service is not one that a statutory provision requires the council to provide to the person;

(b) the person has agreed to its being provided; and

(3) The general power is subject to a duty to secure that, taking one financial year with another, the income from charges allowed by subsection (2) does not exceed the costs of provision.

(4) The duty under subsection (3) applies separately in relation to each kind of service.

Powers to make supplemental provision

82

(1) If the Department thinks that a statutory provision (whenever passed or made) prevents or restricts councils from exercising the general power, the Department may by order amend, repeal, revoke or disapply that provision.

(2) If the Department thinks that the general power is overlapped (to any extent) by another power it shall seek to remove or reduce that overlap, taking into account the views of the bodies exercising the overlapping powers.

(3) For the purposes of subsection (2) the Department may by order amend, repeal, revoke or disapply any statutory provision (whenever passed or made).

(4) The Department may by order make provision preventing councils from doing, in exercise of the general power, anything which is specified, or is of a description specified, in the order.

(5) The Department may by order provide for the exercise of the general power by councils to be subject to conditions, whether generally or in relation to doing anything specified, or of a description specified, in the order.

(6) Before the Department makes an order under this section it must consult—

(a) such associations or bodies representative of councils;

(b) such associations or bodies representative of officers of councils; and

as appear to the Department to be appropriate.

(7) If, following consultation under subsection (6), the Department proposes to make an order under this section it must lay before the Assembly a document explaining the proposals and, in particular—

(a) setting them out in the form of a draft order; and

(b) giving details of consultation under subsection (6).

(8) Where a document relating to proposals is laid before the Assembly under subsection (7), no draft of an order under this section to give effect to the proposals (with or without modification) is to be laid before the Assembly until after the expiry of the statutory period beginning with the day on which the document was laid.

(9) In preparing a draft order under this section the Department must consider any representations made during the period mentioned in subsection (8).

(10) A draft order laid before the Assembly in accordance with section 127(3) must be accompanied by a statement of the Department giving details of—

(a) any representations considered in accordance with subsection (9); and

(b) any changes made to the proposals contained in the document laid before the Assembly under subsection (7).

Limits on power conferred by section 82(1)

83

(1) The Department may not make provision under section 82(1) unless the Department considers that the conditions in subsection (2), where relevant, are satisfied in relation to that provision.

(2) Those conditions are that—

(a) the effect of the provision is proportionate to the policy objective intended to be secured by the provision;

(b) the provision, taken as a whole, strikes a fair balance between the public interest and the interests of any person adversely affected by it;

(d) the provision does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise;

(e) the provision is not of constitutional significance.

(3) An order under section 82(1) may not make provision for the delegation or transfer of any function of legislating.

(4) For the purposes of subsection (3) a “function of legislating” is a function of legislating by order, rules, regulations or other subordinate instrument.

PART 12 — PERFORMANCE IMPROVEMENT

General duty

Improvement: general duty

84

(1) A council must make arrangements to secure continuous improvement in the exercise of its functions.

(2) In discharging its duty under subsection (1), a council must have regard in particular to the need to improve the exercise of its functions in terms of—

(a) strategic effectiveness;

(b) service quality;

(d) fairness;

(e) sustainability;

(f) efficiency; and

(g) innovation.

Improvement objectives

85

(1) For each financial year, a council must set itself objectives for improving the exercise of its functions during that year (“improvement objectives”).

(2) A council must make arrangements to secure achievement of its improvement objectives.

(3) An improvement objective must be framed so as to improve the exercise of the function or functions to which it relates in terms of at least one of the following—

(a) strategic effectiveness;

(b) service quality;

(d) fairness;

(e) sustainability;

(f) efficiency; and

(g) innovation.

Improvement: supplementary

86

(1) A council improves the exercise of its functions in terms of—

(a) strategic effectiveness, if it exercises its functions in a way which is reasonably likely to lead to the achievement of, or assist in achieving, any of its strategic objectives;

(b) service quality, if there is an improvement in the quality of services;

(d) fairness, if—

(i) disadvantages faced by particular groups in accessing, or taking full advantage of, services are reduced; or

(ii) social well-being is improved as a result of the provision of services or the way in which functions are otherwise exercised;

(e) sustainability, if services are provided or functions are otherwise exercised in a way which contributes to the achievement of sustainable development in Northern Ireland;

(f) efficiency, if there is an improvement in the efficiency with which resources are used in the provision of services or in the way in which functions are otherwise exercised; and

(g) innovation, if the way in which services are provided or functions are otherwise exercised is altered in a manner which is reasonably likely to lead to any outcome described in paragraphs (a) to (f).

(2) For the purposes of subsection (1)(a), a council's strategic objectives are the objectives contained in its current community plan.

(3) For the purposes of this section references to services are to—

(a) services provided by the council in the exercise of its functions;

(b) services provided by any other person under arrangements made by the council in the exercise of its functions.

(4) In subsection (2) “current community plan” has the meaning given by section 78(1).

(5) The Department may by order—

(a) amend or omit any paragraph of subsection (1);

(b) add additional paragraphs to that subsection;

(d) make such other amendments of this Part as appear to the Department to be necessary or expedient in connection with provision made under this subsection.

Consultation on improvement duties

87

In deciding how to discharge its duty under sections 84 and 85, a council must consult persons appearing to the council to be representative of—

(a) persons liable to pay rates in respect of hereditaments in the district;

(b) persons who use or are likely to use services provided by the council;

Appropriate arrangements under sections 84(1) and 85(2)

88

(1) In making arrangements under section 84(1) or section 85(2) a council must take into consideration what are regarded, whether by reference to any generally recognised published code or otherwise, as appropriate arrangements for the purposes of that section (or purposes which include those purposes).

(2) But if there is any conflict in any respect between a council's duty under subsection (1) and its duty under section 111(3) to have regard to any guidance issued under that section, a council must have regard only to its duty under section 111(3).

Performance indicators and performance standards

89

(1) The Department may by order specify—

(a) factors (“performance indicators”) by reference to which a council's performance in exercising functions can be measured;

(b) standards (“performance standards”) to be met by councils in relation to performance indicators specified under paragraph (a).

(2) Before specifying performance indicators or standards the Department must consult councils and—

(a) such associations or bodies representative of councils;

(b) such associations or bodies representative of officers of councils; and

as appear to the Department to be appropriate.

(3) In deciding whether to specify performance indicators and standards, and in deciding them, the Department must aim to promote improvement of the exercise of the functions of councils generally and in particular in terms of at least one of the following—

(a) strategic effectiveness;

(b) service quality;

(d) fairness;

(e) sustainability;

(f) efficiency; and

(g) innovation.

(4) For the meanings of paragraphs (a) to (g) of subsection (3), see section 86.

(5) A council must make arrangements to exercise its functions so that any applicable performance standard specified under subsection (1)(b) is met.

Improvement planning and information

Collection of information relating to performance

90

(1) A council must make arrangements for—

(a) the collection of information which will allow it to assess whether it has met during a financial year those improvement objectives set under section 85(1) which are applicable to that year;

(b) the collection of information which will allow it to—

(i) measure its performance during a financial year by reference to those performance indicators specified under section 89(1)(a) which are applicable to the council for that year;

(ii) assess whether it has met during a financial year those performance standards specified under section 89(1)(b) which are applicable to the council for that year;

(i) measure its performance during a financial year by reference to those self-imposed performance indicators which are applicable to that year;

(ii) assess whether it has met during a financial year those self-imposed performance standards which are applicable to that year.

(2) For the purposes of this section and sections 91 and 92—

(a) a self-imposed performance indicator is a factor by reference to which a council has decided to measure its performance in exercising its functions; and

(b) a self-imposed performance standard is a standard which a council has decided to meet in relation to a self-imposed performance indicator.

Use of performance information

91

(1) A council must use the information it collects under section 90 to compare its performance in exercising the functions to which the information relates with—

(a) its performance in exercising those or similar functions during previous financial years; and

(b) so far as is reasonably practicable, the performance of other councils in exercising those or similar functions during the financial year to which the information relates and during previous financial years.

(2) A council must—

(a) use the information it collects under section 90 to assess whether it could improve its performance in exercising its functions; and

(b) in the light of that assessment, decide what steps it will take with a view to improving its performance in exercising its functions.

(3) In discharging its duty under this section and section 90 a council must have regard to any guidance issued by the Department.

Improvement planning and publication of improvement information

92

(1) A council must make arrangements in accordance with this section for the publication of the information described below.

(2) The council must make arrangements for the publication of—

(a) the council's assessment of its performance during a financial year—

(i) in discharging its duty under section 84;

(ii) in meeting the improvement objectives it has set itself under section 85 which are applicable to that year;

(iii) by reference to performance indicators specified under section 89(1)(a) and self-imposed performance indicators which are applicable to that year;

(iv) in meeting performance standards specified under section 89(1)(b) and self-imposed performance standards which are applicable to that year;

(b) the council's assessment of its performance in exercising its functions during a financial year as compared with—

(i) its performance in previous financial years; and

(ii) so far as is reasonably practicable, the performance during that and previous financial years of other councils;

(c) details of the information collected under section 90 in respect of a financial year and what the council has done to discharge its duties under section 91 in relation to that year.

(3) Those arrangements must be framed so that the information is published before—

(a) 30th September in the financial year following that to which the information relates; or

(b) such other date as the Department may specify by order.

(4) The council must make arrangements for the publication of a description of the council's plans for discharging its duties under sections 84(1), 85(2) and 89(5) in a financial year together with, if the council thinks fit, its plans for subsequent years (an “improvement plan”).

(5) Those arrangements must be framed so that the information is published—

(a) as soon as is reasonably practicable after the start of the financial year to which the plan must relate; or

(b) as soon as is reasonably practicable after such other date as the Department may specify by order.

(6) Without prejudice to the generality of section 111, guidance issued under that section may address—

(a) the manner in which assessments of performance are to be carried out;

(b) the making of an improvement plan including the procedure to be followed.

Improvement audits and assessments

Improvement information and planning

93

In respect of each financial year, the local government auditor must carry out an audit for the purpose of determining—

(a) whether a council has during that year discharged its duties under section 92; and

(b) the extent to which the council has during that year acted in accordance with any guidance issued by the Department about the council's duties under that section.

Improvement assessments

94

(1) In respect of each financial year, the local government auditor must carry out an assessment for the purpose of determining whether a council is likely during that year to comply with the requirements of this Part.

(2) In conjunction with an assessment under subsection (1), the local government auditor may carry out an assessment for the purpose of determining whether the council is likely to comply with the requirements of this Part in subsequent financial years.

Audit and assessment reports

95

(1) Each financial year, the Department, after consultation with the local government auditor, must determine which councils are to be councils in respect of which subsection (2) applies in that financial year.

(2) Each financial year, the local government auditor must issue a report or reports in respect of each council to which this subsection applies in that financial year—

(a) certifying that the local government auditor has carried out an audit under section 93 in respect of the previous financial year;

(b) stating whether as a result of the audit the local government auditor believes—

(i) that the council has discharged its duties under section 92; and

(ii) that the council has acted in accordance with any guidance issued by the Department about the council's duties under that section;

(c) certifying that the local government auditor has carried out an assessment under section 94 in respect of the financial year;

(d) stating whether as a result of the assessment the local government auditor believes that the council is likely to comply with the requirements of this Part during the financial year;

(e) if the local government auditor thinks it appropriate in the light of an audit or assessment, recommending action that the council should take in order to comply with the requirements of this Part or act in accordance with guidance issued by the Department about the council's duties under section 92 (whether in respect of that or a subsequent financial year);

(f) if the local government auditor thinks it appropriate in the light of an audit or assessment, recommending that the Department should give a direction under section 100 and, if so, the type of direction;

(g) stating whether, in the light of an audit or assessment, the local government auditor is minded to carry out a special inspection under section 98.

(3) The local government auditor must send a copy of any report issued under this section to the council concerned and the Department.

(4) Copies of a report must be sent in accordance with subsection (3)—

(a) by 30th November in the financial year during which the audit was carried out or to which the assessment relates; or

(b) by such other date as the Department may specify by order.

(5) But the Department may by direction set a date for the sending of a report in relation to a specified council which differs from the date which would otherwise apply under subsection (4) if—

(a) the local government auditor has requested that the Department give such a direction; and

(b) in the opinion of the Department, the circumstances are exceptional.

(6) In subsection (5) “specified” means specified in a direction under that subsection.

Response to section 95 reports

96

(1) The following subsections apply where any report received by a council under section 95(3)—

(a) contains a recommendation under section 95(2)(e) or (f); or

(b) states under section 95(2)(g) that the local government auditor is minded to carry out a special inspection.

(2) The council must prepare a statement of—

(a) any action which it proposes to take as a result of the report; and

(b) its proposed timetable for taking that action.

(3) A statement required by subsection (2) must be prepared—

(a) before the end of the period of 6 weeks starting with the day on which the council receives the report; or

(b) if the report specifies a shorter period starting with that day, before the end of that period.

(4) The council must incorporate the statement in its improvement plan for the next financial year.

(5) If the report recommends that the Department give a direction under section 100, the council must send a copy of the statement to the Department—

(a) before the end of the period of 6 weeks starting with the day on which the council receives the report; or

(b) if the report specifies a shorter period starting with that day, before the end of that period.

Annual improvement reports

97

(1) In relation to each council, the local government auditor must produce a report (an “annual improvement report”) for each financial year which summarises or reproduces the reports described in subsection (2), unless no such reports have been issued in respect of that council during that financial year.

(2) The reports are—

(a) each report issued in respect of the council during that financial year under section 95;

(b) any report of a special inspection of the council issued under section 99 during that financial year.

(3) The local government auditor—

(a) must publish each council's annual improvement report;

(b) must consider, in the light of a council's annual improvement report, whether to—

(i) make a recommendation to the Department to give a direction to the council under section 100;

(ii) exercise any of the local government auditor's functions in relation to the council;

(c) must make any such recommendation as is mentioned in paragraph (b)(i) as the local government auditor considers ought to be made.

Special inspections

98

(1) The local government auditor may carry out an inspection of a council's compliance with the requirements of this Part if the local government auditor is of the opinion that the council may fail to comply with the requirements of this Part.

(2) But the local government auditor must, before deciding whether to carry out an inspection—

(a) consult the Department; and

(b) in a case where the local government auditor has stated in a report under section 95(2)(g) that the local government auditor is minded to carry out a special inspection, consider any statement made by the council in response in accordance with section 96(2).

(3) An inspection under subsection (1) may relate to some or all of a council's functions.

(4) The Department may direct the local government auditor to carry out an inspection of compliance with the requirements of this Part by a council and the local government auditor must comply with the direction.

(5) A direction under subsection (4) may relate to some or all of a council's functions.

(6) Before giving a direction under subsection (4), the Department must consult the local government auditor.

(7) The local government auditor must notify a council if—

(a) the local government auditor decides to carry out an inspection of the council under subsection (1); or

(b) the Department has directed the local government auditor to carry out an inspection of the council under subsection (4).

(8) The notification must specify the functions to which the inspection relates.

(9) In carrying out an inspection, and, in the case of an inspection under subsection (1), deciding whether to do so, the local government auditor must have regard to any guidance issued by the Department.

(10) For the purposes of this Part, an inspection under this section is referred to as a special inspection.

(11) In this section a reference to a council's functions includes a reference to arrangements made to facilitate or support the exercise of its functions.

Reports of special inspections

99

(1) Where the local government auditor has carried out a special inspection the local government auditor must issue a report.

(2) A report—

(a) must mention any matter in respect of which the local government auditor believes as a result of the inspection that the council is failing or may fail to comply with the requirements of this Part; and

(b) may, if it mentions a matter under paragraph (a), recommend that the Department give a direction under section 100.

(3) The local government auditor—

(a) must send a copy of a report to the council concerned and the Department;

(b) if a report makes a recommendation under subsection (2)(b), must as soon as reasonably practicable arrange for the recommendation to be published; and

(4) If a report states that the local government auditor believes as a result of an inspection that a council is failing to comply with the requirements of this Part, the next improvement plan prepared by the council must record—

(a) that fact; and

(b) any action taken, or to be taken, by the council as a result of the report.

Powers of direction, etc.

100

(1) This section applies in relation to a council if the Department is satisfied that the council is failing, or is likely to fail, to comply with any of the requirements of this Part.

(2) Where this section applies in relation to a council, the Department may direct it to do all or any of the following—

(a) prepare or amend an improvement plan or to follow specified procedures in relation to such a plan;

(b) carry out a review of its exercise of specified functions;

(d) set specified improvement objectives for itself under section 85.

(3) Where this section applies in relation to a council any Northern Ireland department may direct the council to take any action which that department considers necessary or expedient to secure the council's compliance with the requirements of this Part.

(4) Where this section applies in relation to a council any Northern Ireland department may direct—

(a) that a specified function of the council must be exercised by that department for a period specified in the direction or for so long as that department considers appropriate; and

(b) that the council must comply with any instructions of that department in relation to the exercise of that function and must provide such assistance as that department may require for the purpose of exercising the function.

(5) Any Northern Ireland department may by regulations make provision which—

(a) relates to a statutory provision which confers a function on that department in respect of a function of a council; and

(b) that department considers necessary or expedient for the purposes of cases in which it makes a direction under subsection (4)(a).

(6) Regulations under subsection (5) may, in relation to the cases mentioned in subsection (4)(b)—

(a) disapply or modify a statutory provision of the kind mentioned in subsection (5)(a);

(b) have an effect similar to the effect of a statutory provision of that kind.

(7) Subject to subsection (9), a Northern Ireland department must, before giving a direction under this section, give the council concerned an opportunity to make representations about—

(a) the report (if any) as a result of which the direction is proposed; and

(b) the direction proposed.

(8) Subject to subsection (9), a Northern Ireland department must, before giving a direction under this section following a recommendation in a report under section 95(2)(f), have regard to any statement under section 96(2) which the council concerned sends the Department before the expiry of the period of one month beginning with the day on which the council received the report.

(9) A Northern Ireland department may give a direction without complying with subsection (7) or (8) if it considers the direction sufficiently urgent.

(10) Where a department gives a direction without complying with subsection (7) or (8) it shall inform—

(a) the council concerned; and

(b) such persons appearing to that department to represent councils as it considers appropriate,

of the direction and of the reason why it was given without complying with subsection (7) or (8).

Supplementary

Power to modify statutory provisions and confer new powers

101

(1) If the Department thinks that a statutory provision prevents or obstructs compliance by councils with their duty under section 84, the Department may by order make provision modifying or excluding the application of the provision in relation to councils.

(2) The Department may by order make provision conferring on councils any power which the Department considers necessary or expedient to permit or facilitate compliance with the duty under section 84.

(3) In exercising a power conferred under subsection (2) a council must have regard to any guidance issued by the Department.

(4) An order under this section may—

(a) impose conditions on the exercise of any power conferred by the order (including conditions about consultation or approval);

(b) amend a statutory provision;

Application of certain local government audit provisions

102

—In Part 2 of the Local Government (Northern Ireland) Order 2005 (local government audit)—

(a) in Article 5 (code of audit practice) and Article 7 (auditor's right to documents and information), references to that Part include references to this Part;

(b) in Article 7(7), references to the audit of the accounts of any body include references to an audit under section 93, an assessment under section 94 and a special inspection in respect of a council; and

(c) in Article 8 (audit fees), the reference to every body whose accounts are audited includes a reference to every council which is subject to such an audit, assessment or inspection.

PART 13 — PARTNERSHIP PANEL

Partnership Panel

103

(1) The Department must establish and maintain a body to be known as the Partnership Panel for Northern Ireland (“the Panel”).

(2) The Panel may—

(a) give advice to any Northern Ireland department about matters affecting the exercise of any of its functions;

(b) make representations to any Northern Ireland department about any matters affecting, or of concern to, those involved in local government; and

(3) The Panel is to consist of—

(a) councillors;

(b) Ministers; and

(c) a maximum of 5 representatives of such representative body or association of the district councils as appears to the Department to be appropriate,

but this subsection is subject to subsections (4) to (6).

(4) Each council may nominate a councillor to serve as a member of the Panel.

(5) The First Minister and deputy First Minister acting jointly may nominate Ministers to attend particular meetings of the Panel.

(6) Any Minister may attend any meeting of the Panel without having been nominated under subsection (5) to do so.

(7) In this section “Ministers” includes junior Ministers and subject to that any expression used in this section and in the Northern Ireland Act 1998 has the same meaning in this section as in that Act.

PART 14 — SUPERVISION OF COUNCILS BY NORTHERN IRELAND DEPARTMENTS

Power of any Northern Ireland department to direct council to make reports etc.

104

(1) Any Northern Ireland department may direct a council to—

(a) make to that department such reports and returns; and

(b) give to that department such information with respect to the exercise of the council's functions,

as may be specified in the direction.

(2) A council must comply with any direction under this section.

Inquiries and investigations

105

(1) Any Northern Ireland department may cause such local and other inquiries to be held and such investigations to be made as that department thinks expedient for the purposes of this Act or in connection with the administration of any statutory provision relating to the functions of any council or any committee or sub-committee of a council.

(2) The provisions of Schedule A1 to the Interpretation Act (Northern Ireland) 1954 have effect in relation to any local or other inquiry or any investigation which a Northern Ireland department causes to be held or made under this section as they apply in relation to a local or other inquiry or investigation which a Northern Ireland department causes to be held or made under an enactment passed or made as mentioned in section 23 of that Act.

Power of any Northern Ireland department to intervene in case of default by council

106

(1) This section applies where a Northern Ireland department (“the relevant department”), after causing a local or other inquiry to be held or an investigation to be made, is satisfied that a council has failed to discharge any of its functions.

(2) The relevant department may make an order—

(a) declaring the council to be in default; and

(b) directing the council for the purpose of remedying the default, to take such action, within such period, as is specified in the order.

(3) If an order under subsection (2) is not complied with, the relevant department may by order empower an officer of the relevant department to exercise, or procure the exercise of, the function in question.

(4) Any costs incurred by the relevant department or its officer under an order made under subsection (3) must, in the first instance, be defrayed as expenses of the relevant department, but—

(a) the amount of those costs as certified by the relevant department must, on demand, be paid to it by the council; and

(b) any sum demanded under paragraph (a) is a debt recoverable summarily by the relevant department from the council.

International obligations

107

(1) If any Northern Ireland department considers that any action proposed to be taken by a council would be incompatible with any international obligations, that department may direct that the proposed action must not be taken.

(2) If any Northern Ireland department considers that any action capable of being taken by a council is required for the purpose of giving effect to any international obligations, that department may direct that the action shall be taken.

(3) A direction under this section must give the reasons for making the direction and may make provision having retrospective effect.

(4) In this section “international obligations” has the same meaning as in the Northern Ireland Act 1998.

PART 15 — AMENDMENTS OF THE 2005 ORDER

The local government auditor

108

(1) For Article 4 of the 2005 Order (local government auditors) there shall be substituted the following Article—

(4) (1) The Department may, with the consent of the Comptroller and Auditor General for Northern Ireland, designate a member of the staff of the Northern Ireland Audit Office as the local government auditor. (2) The local government auditor may make arrangements with the Comptroller and Auditor General for Northern Ireland for members of the staff of the Northern Ireland Audit Office to assist in the performance of the local government auditor's functions. (3) The Department may, with the consent of the Comptroller and Auditor General for Northern Ireland, designate a member of the staff of the Northern Ireland Audit Office to be known as the deputy local government auditor. (4) The deputy local government auditor has all the powers of the local government auditor but must exercise them subject to the direction and control of the local government auditor. (5) The local government auditor must in respect of each financial year— (a) prepare a report on the exercise of the local government auditor's functions in that year; and (b) send a copy of the report to each council and to the Department. (6) Any sums payable by the local government auditor in consequence of any liability for breach of duty (whether arising under a contract or otherwise) incurred in the performance of the local government auditor's functions are charged on and issued out of the Consolidated Fund.

(2) In Schedule 1 to the Audit (Northern Ireland) Order 1987 (The Northern Ireland Audit Office: supplementary provisions), in paragraph 2(1)(b) for the words from “Article 4” to the end substitute “ the discharge of the functions of the local government auditor ”.

(3) In this Part “the 2005 Order” means the Local Government (Northern Ireland) Order 2005.

Power to repeal provisions relating to surcharge, etc.

109

The Department may by order repeal—

(a) Articles 19 (declaration that item of account is unlawful) and 20 (recovery of amount not accounted for, etc.) of the 2005 Order;

(b) the words “or surcharge” in section 10(3) of the New Towns Act (Northern Ireland) 1965,

and amend Articles 18(1) and 23(2) of the 2005 Order in consequence.

Minor and consequential amendments

110

(1) In section 44 of the Interpretation Act (Northern Ireland) 1954 (definitions for local government purposes), in the definition of “local government auditor” for “a person” substitute “ the person ”.

(2) In section 10 of the New Towns Act (Northern Ireland) 1965 (accounts of new town commissions, and audit)—

(a) in subsection (3) for “a local government auditor designated by the Ministry for that purpose” and “the auditor” substitute “ the local government auditor ”;

(b) in subsection (4) for “a local government auditor” substitute “ the local government auditor when ”.

(3) In Schedule 3 to the Local Government Act (Northern Ireland) 1972 (Staff Commission), in paragraph 12 for “a local” substitute “ the local ”.

(4) Schedule 7 (which contains minor and consequential amendments of the 2005 Order) has effect.

PART 16 — MISCELLANEOUS

Guidance

111

(1) The Department may issue guidance to councils for the purposes of this Act.

(2) Before issuing any guidance under this section the Department must consult councils and—

(a) such associations or bodies representative of councils;

(b) such associations or bodies representative of officers of councils; and

as appear to the Department to be appropriate.

(3) A council must have regard to any guidance issued under this section.

Rates

Transitional rate relief in consequence of changes in local government districts

112

(1) Article 33A of the Rates (Northern Ireland) Order 1977 (transitional rate relief) is amended as follows.

(2) In paragraph (1), for the words “this Article” there shall be substituted the words “ paragraph (2) ”.

(3) In paragraph (2), for the word “Article” there shall be substituted the word “ paragraph ”.

(4) After paragraph (2) there shall be inserted the following paragraphs—

(2A) Where paragraph (2B) applies, the Department may, by order subject to negative resolution,— (a) provide for such provisions of this Order as may be specified in the order not to apply or apply subject to modifications specified in the order; and (b) provide for so much of the amount of the sum chargeable in respect of rates due in respect of any hereditament as relates to a district rate to be such as is determined in accordance with rules specified in the order. (2B) This paragraph applies if it appears to the Department necessary or expedient to make provision under paragraph (2A) in connection with changes to local government districts (including changes before the commencement of section 112(4) of the Local Government Act (Northern Ireland) 2014). (2C) The Department must within two years of the making of an order under paragraph (2A) lay before the Assembly a report on the operation of any transitional rate relief scheme under that paragraph including— (a) the Department's assessment of the likely or actual percentage increase in district rates payable by ratepayers in each affected district as a consequence of the termination of the scheme; and (b) consideration of possible further mitigating measures.

Commencement of the Local Government (Boundaries) Order (Northern Ireland) 2012

113

In Article 1 of the Local Government (Boundaries) Order (Northern Ireland) 2012 (SR 2012 No 421) (citation and commencement), in paragraph (4) (commencement for the purposes of making and levying rates), for the words from the beginning to “come into effect on” there shall be substituted the words “ This Order does not apply for the purposes of making and levying of rates, as provided in Part II of the Rates (Northern Ireland) Order 1977, in relation to a year beginning before ”.

Transferred functions grant

114

(1) In the Local Government Finance Act (Northern Ireland) 2011, after section 27 (rates support grant) there shall be inserted the following section—

(27A) (1) The Department shall for any prescribed financial year make a grant under this section to councils. (2) In this section “transferred functions grant” means the grant payable under this section for any financial year. (3) The transferred functions grant is payable only to a council which is a new council within the meaning of Part 2 of the Local Government (Miscellaneous Provisions) Act (Northern Ireland) 2010. (4) The amount of the transferred functions grant payable to a council for any financial year is the amount equal to the difference between— (a) the amount of the product of the district rate for that year (within the meaning of the Rates (Northern Ireland) Order 1977) so far as it relates to the rateable net annual values of the hereditaments in the district of that council; and (b) the amount which would have been the amount of that product if the total of the rateable net annual values of the hereditaments in the district of that council had been increased by a prescribed amount. (5) Subsection (4) is subject to section 28 (reductions in grants) and to section 63(4) of the Local Government Act (Northern Ireland) 2014. (6) Payments in respect of transferred functions grant shall be made to a council at such times as the Department may determine.

(2) In section 28 of that Act (reductions in grants), in subsections (2)(a) and (6)(b) and in the heading for “or 27” there shall be substituted “ , 27 or 27A ”.

Contracts and disposals

Exclusion of non-commercial considerations

115

In Article 19 of the Local Government (Miscellaneous Provisions) (Northern Ireland) Order 1992 (council contracts: exclusion of non-commercial considerations), after paragraph (6) there shall be added the following paragraphs—

(7) The Department may by order provide, in relation to councils, for a specified matter to cease to be a non-commercial matter for the purposes of this Article. (8) An order under paragraph (7) may— (a) provide for a matter to cease to be a non-commercial matter for specified purposes or to a specified extent; (b) apply in relation to specified councils, functions or contracts; (c) amend a statutory provision; (d) include supplementary, incidental, consequential and transitional provisions. (9) No order shall be made under paragraph (7) unless a draft of the order has been laid before, and approved by resolution of, the Assembly.

Control of disposals and contracts of existing councils and their finances

116

(1) Chapter 2 of Part 2 of the Local Government (Miscellaneous Provisions) Act (Northern Ireland) 2010 (control of disposals and contracts of existing councils) is amended as follows.

(2) At the end of the heading to Chapter 2 there shall be added the words “ AND THEIR FINANCES ”.

(3) In section 10 (control of disposals and contracts of existing councils)—

(a) at the end of the heading there shall be added the words “ and their finances ”;

(b) in subsection (1), after the words “consent of” there shall be added the words “ its successor council or ”;

(d) 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.

;

(d) in subsection (3), after the words “consent of” there shall be inserted the words “ a successor council or ”.

(4) In section 11 (directions: supplementary), in subsection (4)(b) after the words “council concerned and ” there shall be inserted the words “ its successor council or ”.

(5) In section 13 (referral to Department where consent refused or granted subject to conditions)—

(a) in subsection (1)—

(i) in paragraph (a), after the words “consent of” there shall be inserted the words “ a successor council or ”;

(ii) in paragraph (b), after the words “refused by” there shall be inserted the words “ the successor council or ”;

(b) in subsection (2), after the words “decision of” there shall be inserted the words “ the successor council or ”;

(d) in subsection (4)(a), after the words “made by the” there shall be inserted the words “ successor council or ”.

Payments for special purposes etc.

Payments for special purposes and public appeals

117

In the Local Government Finance Act (Northern Ireland) 2011 the following provisions cease to have effect—

(a) section 37 (payments for special purposes);

(b) section 38 (restrictions on power to make payments under section 37); and

Persons ceasing to hold office and unqualified person

Persons ceasing to hold office

118

(1) A person who ceases to hold any office under this Act is, unless the person is not qualified or is disqualified, eligible to hold that office again.

(2) In subsection (1) “office” includes a position of responsibility.

(3) Subsection (1) does not apply if the person is not qualified or is disqualified to be elected or to be a councillor.

Validity of acts done by unqualified person

119

(1) The validity of anything done by the holder of an office under this Act is not affected by that person not being qualified or being disqualified to be elected or to be a councillor.

(2) In subsection (1) “office” includes a position of responsibility.

Power to dissolve Local Government Staff Commission

Power to dissolve the Local Government Staff Commission for Northern Ireland

120

In section 40 of the Local Government Act (Northern Ireland) 1972 (Staff Commission), after subsection (8) there shall be added the following subsection—

(9) The Department may by order make provision for, and in connection with, the dissolution of the Staff Commission and such an order may— (a) provide for the transfer of the functions, assets and liabilities of the Staff Commission to any other body or person; and (b) contain such incidental, consequential, transitional or supplementary provisions (including the modification or repeal of any statutory provision (including a provision of this Act)) as appear to the Department to be necessary or expedient. (10) An order must not be made under subsection (9) unless a draft of the order has been laid before, and approved by resolution of, the Assembly.

Insurance

Insurance against accidents to councillors

121

(1) A council may insure against risks of a councillor meeting with a personal accident, whether fatal or not, while the councillor is engaged on the business of the council.

(2) Any sum received by the council under any such insurance must, after deduction of any expenses incurred in its recovery, be paid by the council to, or to the personal representatives of, the councillor in respect of an accident to whom that sum is received.

(3) The provisions of the Life Assurance Act 1774 as extended by the Life Insurance (Ireland) Act 1866 does not apply to any insurance under this section.

(4) In this section—

“council” includes a joint committee;

“councillor” includes a member of a committee or sub-committee of a council or a joint committee, whether the member is a member of the council or not;

“insurance” means a contract with any person whereby, in consideration of payments by the council by way of premium or otherwise, that person undertakes to pay to the council such sums as may be provided in the contract on the occurrence of a particular event.

Transfer schemes

Schemes for transfers of assets and liabilities

122

(1) The power conferred by subsection (4) is exercisable where it appears to any Northern Ireland department necessary or expedient as mentioned in section 124(1) or (2).

(2) Any Northern Ireland department may make one or more schemes for the transfer of designated assets or liabilities of that department or a local government body to a local government body.

(3) The power conferred by subsection (6) is exercisable by the Department for Social Development if it appears to that department necessary or expedient as mentioned in section 124(2).

(4) The Department for Social Development may make one or more schemes for the transfer of designated assets or liabilities of the Northern Ireland Housing Executive to a local government body.

(5) The Department of Culture, Arts and Leisure may make one or more schemes for the transfer of designated assets or liabilities of the Board of Trustees of the National Museums and Galleries of Northern Ireland relating to Armagh County Museum to the council for the district of Armagh, Banbridge and Craigavon.

(6) On the transfer date the designated assets or liabilities are transferred and vest in accordance with the scheme.

(7) Schedule 8 has effect.

(8) In this section “designated”, in relation to a scheme, means specified in or determined in accordance with the scheme.

(9) In this section and Schedule 8—

“scheme” means a scheme under this section;

“the transfer date”, in relation to a scheme, means the date specified by the scheme as the date on which it is to have effect.

(10) In this section and Schedule 8 “local government body”—

(a) in relation to a transfer from a local government body does not include a successor council; and

(b) in relation to a transfer to a local government body does not include an existing council.

Compensation for loss of office or diminution of emoluments

123

(1) This section applies to any person who at any time after the date on which this Act receives Royal Assent—

(a) is employed by a local government body; and

(b) suffers loss.

(2) In this section—

“local government body” includes the Local Government Staff Commission and a council whenever established;

“loss” means loss of employment or loss or diminution of emoluments which is attributable to any provision made by or under—this or any other Act mentioned in subsection (1) of section 124;any transfer of functions or any statutory provision falling within paragraph (a) or (b) of subsection (2) of that section.

(3) Compensation in respect of loss suffered by a person to whom this section applies is, subject to subsection (5), to be paid only in accordance with regulations made for the purposes of this section under Article 19 of the Superannuation (Northern Ireland) Order 1972; and accordingly no local government body is to pay any such compensation under any other statutory provision, by virtue of any provision in a contract or otherwise.

(4) Subsection (3) does not preclude the payment of compensation if it forms part of a severance arrangement which has been sanctioned by the Department. The Department must satisfy itself that the arrangement is reasonable.

(5) Subsection (3) does not preclude the making of any payment to which a person is entitled by virtue of contractual rights acquired by the person before 12th June 2012.

(6) Regulations under Article 19 of the Superannuation (Northern Ireland) Order 1972 must not provide compensation for a person to whom this section applies in respect of any loss so far as attributable to the termination on or before 1st April 2015 of a contract made after 12th June 2012 which provides for the employment of that person for a fixed term extending beyond the abolition date.

(7) For the purpose of determining under Article 173 or 176 of the Employment Rights (Northern Ireland) Order 1996—

(a) whether the provisions of a new contract offered to a person employed by a local government body differ from the corresponding provisions of the previous contract; and

(b) whether employment under the new contract is suitable in relation to that person,

there is to be treated as forming part of the remuneration payable under the new contract any compensation to which that person is or, if the person accepted the offer, would be entitled in accordance with this section.

(8) Except as provided in subsection (7), nothing in this section is to be construed as affecting any entitlement to a redundancy payment under Part 12 of the Employment Rights (Northern Ireland) Order 1996 or to any payment by virtue of any provision of the Superannuation (Northern Ireland) 1972 other than Article 19 of that Order.

Provisions for the purposes of this Act and other purposes

Supplementary and transitional provisions for the purposes of this Act and other purposes

124

(1) The Department may by regulations make such incidental, consequential, transitional or supplemental provision as appears to the Department to be necessary or expedient for the purposes of, or otherwise in connection with—

(a) this Act;

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