Industry Act 1980

The National Enterprise Board and the Scottish and Welsh Development Agencies

Functions of the Board and Agencies

1

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In section 1 of the Welsh Development Agency Act 1975—

• (a) in subsection (2), in paragraph (a), at the end there shall be added the words “,and in that connection to provide, maintain or safeguard employment”;

• (b) in subsection (3), after paragraph (i) there shall be added—

(j) to promote the private ownership of interests in industrial undertakings by the disposal of securities and other property held by the Agency or any of their subsidiaries

;

• (c) subsection (2)(c), in subsection (3)(d) the word “reorganisation”, and subsection (3)(e) shall cease to have effect; and

• (d) in subsection (11) the words from “in connection” to “above” shall cease to have effect.

Transfer of property to Secretary of State

2

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Finance for companies transferred to Secretary of State

3

• (1) This section applies to a company if the National Enterprise Board has at any time transferred to the Secretary of State a controlling interest in the company and the Secretary of State has not since that time ceased to hold such an interest in it.

• (2) Subject to subsection (3) below and section 5 of this Act, the Secretary of State may with the approval of the Treasury—

• (a) acquire securities of a company to which this section applies,

• (b) make loans to such a company on such conditions and at such rates of interest as he may with that approval determine, and

• (c) guarantee obligations (arising out of loans or otherwise) incurred by such a company.

• (3) The Secretary of State shall not determine a rate of interest in respect of a loan under subsection (2)(b) above which is lower than the lowest rate for the time being determined by the Treasury under section 5 of the National Loans Act 1968 in respect of comparable loans out of the National Loans Fund.

• (4) Not later than six months after the end of any financial year in which this section has applied to one or more companies the Secretary of State shall prepare and lay before each House of Parliament a report on the exercise during that year of his powers under subsection (2) above; and the report shall specify in relation to each company which at the end of that year is a company to which this section applies—

• (a) particulars of the securities of the company held by the Secretary of State at the end of that year,

• (b) the amount then outstanding, otherwise than by way of interest, in respect of any loans to the company made under paragraph (b) of subsection (2) above,

• (c) particulars of guarantees then subsisting which were given under paragraph (c) of that subsection in respect of obligations incurred by the company, and

• (d) any sums paid to meet guarantees so given, to the extent that they have not by then been repaid.

• (5) As soon as practicable after a company to which this section applies—

• (a) if it is a private company, has sent to members copies of accounts in accordance with section 423 of the Companies Act 2006, or

• (b) if it is a public company, has laid accounts before the company in general meeting in accordance with section 437 of that Act,

the Secretary of State shall lay before each House of Parliament a copy of those accounts and of any documents annexed or attached to them.

• (6) Any expenditure incurred by the Secretary of State under subsection (2) above may be defrayed out of money provided by Parliament; and any sums received by him by virtue of this section (including sums received on the disposal of securities acquired by virtue of this section) shall be paid into the Consolidated Fund.

• (7) In this section and in section 5 of this Act—

• “company” means a company as defined in section 1(1) of the Companies Act 2006,

• “controlling interest” means, in relation to a company, shares carrying in the aggregate more than half the voting rights exercisable at general meetings of the company,

• “shares” includes stock,

• “subsidiary” means a subsidiary as defined by section 1159 of the Companies Act 2006,

and references to the transfer of securities to or the holding or acquisition of securities by the Secretary of State include references to the transfer of securities to or the holding or acquisition of securities by any nominee of his.

Public dividend capital

4

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial limits

5

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) Subject to subsection (7) below, the aggregate of—

• (a) any sums paid by the Secretary of State under this Act in respect of the acquisition of shares in any company which before or immediately after the acquisition was a company to which section 3 of this Act applied,

• (b) the amounts outstanding, otherwise than by way of interest, in respect of the general external borrowing of companies to which that section applies, and

• (c) any sums paid by the Secretary of State to meet guarantees given under subsection (2)(c) of that section, to the extent that they have not been repaid,

shall not exceed the amount which is for the time being the financial limit for the purposes of that section.

• (7) The sums paid by the Secretary of State under this Act in respect of the acquisition from the National Enterprise Board of shares in any company shall be treated for the purposes of subsection (6) above as reduced by an amount equal to so much of the debt of the Board assumed under paragraph 6(1) of Schedule 2 to the Industry Act 1975 on their acquisition of securities of the company as was, immediately before section 3 of this Act applied to the company, treated by virtue of paragraph 5(2) of that Schedule as part of the Board’s public dividend capital.

• (8) For the purposes of subsection (6)(b) above, the general external borrowing of a company is the aggregate of—

• (a) sums borrowed by the company otherwise than from any subsidiary of the company, and

• (b) sums borrowed by such a subsidiary otherwise than from the company or another such subsidiary.

Restrictions on powers to acquire shares

6

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Members and chief executive of the Board

7

• (1) In section I of the Industry Act 1975—

• (a) in subsection (2) (membership of the National Enterprise of the Board) for the word “sixteen” there shall be substituted the word “twelve”, and

• (b) subsection (8) (register of members’ financial interests) shall cease to have effect.

• (2) In Part Ill of Schedule 1 to the House of Commons Disqualification Act 1975 and in Part Ill of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 there shall be inserted, at the appropriate place in alphabetical order— “ Chief executive of the National Enterprise Board. ” .

Selective financial assistance under the Industry Act 1972

8

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overseas aid

9

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The English Industrial Estates Corporation

Functions and status of the Corporation

10

• (1) The English Industrial Estates Corporation may, in accordance with directions given under subsection (3) below,—

• (a) provide, facilitate the provision of, and manage sites and premises in England for occupation by industrial or commercial undertakings,

• (b) provide, and facilitate the provision of, means of access, services and other facilities required in connection with sites and premises in England occupied or to be occupied by such undertakings, and

• (c) dispose for any purpose of land and other property held by the Corporation.

• (2) Subject to directions given under subsection (3) below, the Corporation may do anything, whether in England or elsewhere, which is calculated to facilitate or is conducive or incidental to the discharge of their functions, and in particular, without prejudice to the generality of the preceding provisions of this subsection, may—

• (a) act alone or with other persons, either in partnership or otherwise,

• (b) acquire land, plant, machinery and equipment and other property,

• (c) form, or acquire interests in, bodies corporate, and

• (d) make loans and guarantee obligations (arising out of loans or otherwise) incurred by other persons.

• (3) The Secretary of State may give the Corporation general or specific directions and the Corporation shall comply with any such directions.

• (4) After the commencement of this Act_

• (a) the Corporation shall not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown, or as exempt from any tax, duty, rate, levy or other charge whatsoever, whether general or local, and

• (b) the property of the Corporation shall not be regarded as the property of, or property held on behalf of, the Crown.

• (5) Planning permission shall be deemed to have been granted under section 29 of the Town and Country Planning Act 1971 in respect of any development initiated by the Corporation before the end of March 1981.

• (6) In this section references to the provision of premises include references to the carrying out of any works, and the provision of any plant, machinery or equipment, on or for the purposes of any premises; and references to an industrial or commercial undertaking include references to any activity providing employment.

• (7) Subsections (1) to (3) of section 11 of the Local Employment Act 1972 (which are superseded by this section) shall cease to have effect.

Transfer of land to the Corporation

11

• (1) Any land which, immediately before the commencement of this Act, is vested in a Minister of the Crown subject to a lease to the English Industrial Estates Corporation shall by virtue of this Act vest in the Corporation, subject to all rights, liabilities and obligations relating to it (except those arising out of the lease).

• (2) The power to acquire land conferred on the Secretary of State by section 5 of the Local Employment Act 1972 (provision of sites and premises) shall include power to acquire land with a view to transferring it to the English Industrial Estates Corporation.

Members of the Corporation

12

In section 10(2) of the Local Employment Act 1972 (which provides that the English Industrial Estates Corporation shall consist of a chairman and four other members appointed by the Secretary of State) for the words from "four" to "and the members " there shall be substituted the words " such number of other members as the Secretary of State thinks fit; and the members shall be appointed by the Secretary of State and ".

Power for the Corporation to borrow

13

• (1) The English Industrial Estates Corporation may, in accordance with directions under section 10(3) of this Act given with the approval of the Treasury, borrow in any currency from the Commission of the European Communities or from the European Investment Bank, but subject to subsection (2) below.

• (2) The aggregate amount outstanding in respect of the principal of sums borrowed under this section shall not exceed £30 million or such greater sum not exceeding £50 million as the Secretary of State may with the approval of the Treasury by order specify.

• (3) The power to make orders under this section shall be exercisable by statutory instrument, and no such order shall be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

• (4) In section 11(8) of the Local Employment Act 1972 (receipts of Corporation, with certain exceptions, to be paid over to Secretary of State) after paragraph (a) there shall be inserted—

(aa) receipts consisting of sums borrowed under section 13 of the Industry Act 1980 ; and

.

Treasury guarantees

14

• (1) The Treasury may guarantee, in such manner and on such conditions as they think fit, the repayment of the principal of, and the payment of interest on, any sums borrowed under section 13 of this Act.

• (2) Immediately after a guarantee is given under this section, the Treasury shall lay a statement of the guarantee before each House of Parliament; and 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 (beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest thereon is finally discharged) lay before each House of Parliament a statement relating to that sum.

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

• (4) If any sums are issued in fulfilment of a guarantee given under this section, the Corporation shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments of such amounts as the Treasury may so direct in or towards repayment of the sums so issued and payments of interest at such rate as the Treasury may so direct on what is outstanding for the time being in respect of sums so issued.

• (5) Any sums received under subsection (4) above by the Treasury shall be paid into the Consolidated Fund.

Expenses of the Corporation

15

In subsection (9) of section 11 of the Local Employment Act 1972 (certain expenses of the English Industrial Estates Corporation incurred under that section to be defrayed by the Secretary of State) after the word " section" there shall be inserted the words " or under the Industry Act 1980 ".

Grants and other financial assistance for industry

Regional development grants

16

• (1) For the Table in section 1 of the Industry Act 1972 (which sets out the expenditure towards which, and the rates at which, grants may be made under that section) there shall be substituted—

Expenditure incurred in	Prescribed percentage
1. Providing a building as part of, or providing works on, qualifying premises in a development area .........	If the qualifying premises are in a special development area: 22 per cent.
1. Providing a building as part of, or providing works on, qualifying premises in a development area .........	If not: 15 per cent.
2. Providing new machinery or plant for use in qualifying premises in a development area	If the qualifying premises are in a special development area: 22 per cent.
2. Providing new machinery or plant for use in qualifying premises in a development area	If not: 15 per cent.

• (2) The Regional Development Grants (Variation of Prescribed Percentages) Order 1979 (which is superseded by subsection (1) above) is hereby revoked.

• (3) Subsections (1) and (2) above shall not have effect in relation to—

• (a) expenditure incurred in providing an asset, other than mining works, as part of, or on or for use in, qualifying premises if—

• (i) the asset is provided before 1st August 1980, or

• (ii) the expenditure was defrayed before 18th July 1979;

• (b) expenditure incurred in providing a building as part of, or providing works on, qualifying premises in a derelict land clearance area, if the construction of the building or the carrying out of the works was begun before 22nd March 1974 ;

• (c) expenditure incurred in providing mining works if—

• (i) the works were provided before 1st April 1977, or

• (ii) the expenditure was defrayed before 6th August 1976;

• (d) expenditure incurred in providing new machinery or plant for use in activities which are within Order XX of the Standard Industrial Classification (construction industry) if the machinery or plant was provided before 1st April 1977.

• (4) Where, apart from this subsection, the amount of a grant under Part I of the Industry Act 1972 towards expenditure falling within subsection (5) below would be less than 20 per cent, of the expenditure, the amount shall instead be 20 per cent, of the expenditure.

• (5) The expenditure falling within this subsection is expenditure incurred—

• (a) in providing an asset as part of, or on or for use in, qualifying premises in a relevant special development area in such circumstances that, by reason of Article 5(1) and (4)(d) or Article 5A(2) and (5)(b) of the Assisted Areas Order 1979, any grant under Part I of the Industry Act 1972 towards the expenditure is to be made at the rate appropriate to a development area which is not a special development area, or

• (b) in providing a building or works at any time as part of or on qualifying premises in a relevant development area in such circumstances that, by reason of Article 5(2) and (4)(d) of that order, no grant may be made under Part I of that Act towards any expenditure incurred in providing machinery or plant at that time for use in those premises.

• (6) In subsection (5) above—