Legalize / United Kingdom / Public General Act

British Telecommunications Act 1981

Type Public General Act

Publication 1981-07-27

Last updated 2009-10-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Part I — New Corporation for the Provision of Telecommunication and Data Processing Services

The Corporation

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Powers and duties of the Corporation

Powers of the Corporation

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General duty of the Corporation

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Redistribution of property, rights and liabilities among wholly owned subsidiaries

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Control of wholly owned subsidiaries

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(1) As regards any wholly owned subsidiary of the Corporation, the Corporation shall so exercise the rights conferred on it by the holding of its interest therein as to secure that no person is elected chairman of the board of directors of the subsidiary except after consultation with the Secretary of State as to his suitability for election.

(2) As regards any wholly owned subsidiary of the Corporation, the Corporation shall secure that, notwithstanding anything in the subsidiary's memorandum or articles of association, the subsidiary does not—

(a) engage in any activity which the Corporation itself has no power to engage in or has power to engage in only with the consent of the Secretary of State;

(b) issue any of its shares, stock or debentures to a person other than—

(i) the Corporation or another wholly owned subsidiary of the Corporation; or

(ii) a person who is to hold them as a nominee of the Corporation or of a wholly owned subsidiary of the Corporation; or

(c) transfer any interest of the subsidiary in another wholly owned subsidiary of the Corporation to a person not within paragraph (b)(i) or (ii),

except with the consent of, or in accordance with the terms of any general authority given by, the Secretary of State.

(3) As regards any wholly owned subsidiary of the Corporation, the Corporation shall not transfer any of its interest therein to a person other than—

(a) another wholly owned subsidiary of the Corporation; or

(b) a person who is to hold it as a nominee of the Corporation or of a wholly owned subsidiary of the Corporation,

except with the consent of, or in accordance with the terms of any general authority given by, the Secretary of State.

(4) As regards any wholly owned subsidiary of the Corporation, the Corporation shall secure that the subsidiary seeks consultation with any organisation appearing to the subsidiary to be appropriate with a view to the conclusion between it and that organisation of such agreements as appear to the parties to be desirable with respect to the establishment and maintenance of machinery for—

(a) the settlement of terms and conditions of employment of persons employed by the subsidiary;

(b) the promotion and encouragement of measures affecting efficiency in the carrying on by the subsidiary of its activities, including, in particular, the promotion and encouragement of the training of persons employed by the subsidiary; and

(c) the promotion and encouragement of measures affecting the safety, health and welfare of persons employed by the subsidiary.

Powers of the Secretary of State over the Corporation

General control and supervision by the Secretary of State

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Activities requiring consultation with the Secretary of State

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Activities requiring approval of the Secretary of State

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(1) Neither the Corporation nor any of its wholly owned subsidiaries shall, except with the approval of the Secretary of State, construct, manufacture, produce or purchase, otherwise than for the relevant purpose, things of any kind to a substantial extent.

(2) The Secretary of State

(a) may give approval for the purposes of subsection (1) subject to such conditions (if any) as he may think fit; and

(b) notwithstanding the giving of approval, may at any time, after consultation with the Corporation, direct it to discontinue or, as the case may be, to exercise its control over any of its wholly owned subsidiaries so as to require the subsidiary to discontinue, any activity that the Corporation or, as the case may be, the subsidiary is carrying on with approval.

(3) The Secretary of State shall publish, in such manner as he thinks fit, particulars of any approval given by him under subsection (1).

(4) In carrying on any activities to which subsection (1) applies, the Corporation shall act as if it were a company engaged in a commercial enterprise, and it shall so exercise its control over each of its wholly owned subsidiaries that carries on any such activities as to ensure that the subsidiary so acts.

(5) In this section " the relevant purpose" has the same meaning as in section 7.

Users’ Councils

Users' Councils

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Transfers of property, rights and liabilities

Transfer to the Corporation of certain property, rights and liabilities of the Post Office

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(1) Before the appointed day the Post Office shall take steps to separate from the remainder of its undertaking the part thereof concerned with the provision of telecommunication and data processing services (that is to say, the part thereof which is under the management and control of the deputy chairman who has special responsibility for telecommunication and data processing services).

(2) Subject to the following provisions of this section, on the appointed day there shall be transferred from the Post Office to, and by virtue of this Act vested in, the Corporation all the property, rights and liabilities which, immediately before that day, were comprised in the part of the Post Office’s undertaking mentioned in subsection (1).

(3) At any time before the appointed day the Post Office and the Corporation may agree in writing that subsection (2) shall not have effect in relation to any property, rights and liabilities specified in the agreement.

(4) At any time before the expiration of twelve months beginning with the appointed day the Post Office and the Corporation may agree in writing that, as from such date, not earlier than the appointed day, as may be specified in or determined by or under the agreement and in such circumstances (if any) as may be so specified—

(a) there shall be transferred from the Post Office to, and vested in, the Corporation any property, rights and liabilities specified in the agreement; or

(b) there shall be transferred from the Corporation to, and vested in, the Post Office any property, rights and liabilities so specified.

(5) No agreement under subsection (3) or (4) shall have effect in relation to rights and liabilities under a contract of employment unless the employee concerned is a party to the agreement.

(6) Subject to subsection (7), in the case of any agreement under subsection (4) the property, rights and liabilities in question shall on the date of the coming into force of the agreement be transferred, and by virtue of the agreement vest, in accordance with the agreement.

(7) Schedule 2 shall apply to any transfer under subsection (2) or (6) subject, in the case of a transfer under subsection (6), to any reference in that Schedule to a vesting by virtue of this Act being construed as a reference to a vesting by virtue of the agreement in question; and those subsections shall have effect subject to the provisions of that Schedule.

(8) Any reference in this Act to a transfer by this Act includes a reference to a transfer under subsection (6).

Statutory rights and liabilities as to telegraphs

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Exclusive privilege of the Corporation with respect to telecommunication

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(1) Subject to the following provisions of this Part, as from the appointed day, the Corporation shall have throughout the British Islands the exclusive privilege of running telecommunication systems, that is to say systems for the conveyance, through the agency of electric, magnetic, electro-magnetic, electrochemical or electro-mechanical energy, of—

(a) speech, music and other sounds;

(b) visual images;

(c) signals serving for the impartation (whether as between persons and persons, things and things or persons and things) of any matter otherwise than in the form of sound or visual images ; and

(d) signals serving for the actuation or control of machinery or apparatus.

(2) In the case of an infringement, in relation to a system not extending beyond the British Islands, of the privilege conferred by subsection (1), the person running the system (or, if different people run different parts of it, each of them) shall be guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine,

and, in the case of an infringement, in relation to a system extending beyond those Islands, of that privilege, the person running the portion of the system within those Islands (or. if different people run different parts of it, each of them) shall be guilty of an offence and similarly liable.

(3) In any proceedings in respect of an offence under this section consisting in the running of a system in the case of which, at the time of the commission of the offence, different parts were run by different persons, it shall be a defence for the defendant to prove that a part of the system had been included without his knowledge and that, had it not been, the running of the system would not have constituted an infringement of die privilege conferred by subsection (1).

(4) References in this Act to services which, by virtue of the provisions of this Part, the Corporation has the exclusive privilege of providing are references to services the provision of which by a person other than the Corporation would necessarily infringe the privilege conferred by subsection (1); and for this purpose licences granted under section 15(1) otherwise than to all persons shall be disregarded.

General classes of acts not infringing the telecommunication privilege

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(1) The privilege conferred by subsection (1) of section 12 is not infringed by—

(a) the running of a system in the case of which the only agency involved in the conveyance of things thereby conveyed is light and the things thereby conveyed are so conveyed as to be capable of being received or perceived by the eye and without more;

(b) the running by a person of a system in the case of which all the apparatus comprised therein is situate either—

(i) on a single set of premises occupied by him; or

(ii) in a vehicle, vessel, aircraft or hovercraft or in two or more vehicles, vessels, aircraft or hovercraft mechanically coupled together ; or

(i) all the apparatus comprised therein is under his control; and

(ii) everything conveyed by it that falls within paragraphs (a) to (d) of the said subsection (1) is conveyed solely for domestic purposes of his.

(2) In the case of a business carried on by a person, the said privilege is not infringed by the running, for the purposes of that business, of a system with respect to which the conditions specified in subsection (3) are satisfied and—

(a) in a case in which all the apparatus therein comprised is situate in the British Islands, no person except him or the Corporation is concerned in the control of the apparatus;

(b) in any other case, no person except him or the Corporation is concerned in the control of so much of the apparatus as is so situate.

(3) The said conditions are—

(a) that nothing falling within paragraphs (a) to (d) of subsection (1) of section 12 is conveyed by the system by way of rendering a service to another;

(b) that, in so far as sounds or visual images are conveyed by the system, they are not conveyed for the purpose of their being heard or seen by persons other than the person carrying on the business or any servants of his engaged in the conduct thereof;

(c) that in so far as such signals as are mentioned in paragraph (c) of that subsection are conveyed by the system, they are not conveyed for the purpose of imparting matter otherwise than to the person carrying on the business, any servants of his engaged in the conduct thereof or things used in the course of the business and controlled by him; and

(d) that, in so far as such signals as are mentioned in paragraph (d) of that subsection are conveyed by the system, they are not conveyed for the purpose of actuating or controlling machinery or apparatus used otherwise than in the course of the business.

(4) In the case of a system in the case of which all the apparatus therein comprised consists of apparatus supplied by the Corporation to a person, the said privilege is not infringed by the running of the system by that person ; and in the case of a system in the case of which part of the apparatus comprised therein consists of apparatus supplied by the Corporation to a person, the said privilege is not infringed by the running by that person of so much of the system as comprises apparatus so supplied.

(5) In this section—

" business " includes a trade, profession or employment and includes any activity carried on by a body of persons, whether corporate or unincorporated;

" supplied " means supplied in pursuance of a scheme made under section 21 or let on hire ;

" vessel" means a vessel of any description used in navigation.

Acts relating to broadcasting not infringing the telecommunication privilege

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(1) The privilege conferred by subsection (1) of section 12 is not infringed by a broadcasting authority by reason only of the transmission by it, by wireless telegraphy, of sounds or visual images from a transmitting station for general reception direct from that station, nor is it infringed by the reception of sounds or visual images transmitted, by wireless telegraphy, from a transmitting station for general reception direct from that station or through the medium of a relay service licensed under the Wireless Telegraphy Act 1949.

(2) In this section " broadcasting authority " means a person licensed under the Wireless Telegraphy Act 1949 to broadcast programmes for general reception and "wireless telegraphy has the same meaning as in that Act.

Saving for things done under a licence

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(1) A licence may be granted—

(a) by the Secretary of State after consultation with the Corporation; or

(b) with the consent of. or in accordance with the terms of a general authority given by, the Secretary of State, by the Corporation,

either unconditionally or subject to any conditions specified in the licence, and either irrevocably or subject to revocation as therein specified, for the running of any such telecommunication system as is specified in the licence; and anything done under, and in accordance with, a licence granted under this subsection shall not constitute an infringement of the privilege conferred by section 12(1).

(2) The Secretary of State may, after consultation with the Corporation, give to it directions requiring it to grant licences under subsection (1) for such purposes and subject to such terms and conditions as may be specified in the directions.

(3) A licence granted under subsection (1) shall, unless previously revoked in accordance with any term in that behalf contained in the licence, continue in force for such period as may be specified therein.

(4) A licence granted under subsection (1) may be granted either to all persons, to persons of a class or to a particular person, and may include (without prejudice to the power to impose conditions conferred by that subsection) conditions requiring the rendering of a payment on the grant of the licence or periodic payments during the currency of the licence or both—

(a) in the case of a licence granted by the Secretary of State, to the Secretary of State or the Corporation or both; or

(b) in the case of a licence granted by the Corporation, to the Corporation.

(5) A payment required by virtue of this section to be rendered to any person may be recovered by that person in any court of competent jurisdiction and, except in Scotland, may be so recovered as if it were a simple contract debt.

(6) A licence granted under subsection (1) otherwise than to a specified person shall be published in such manner as appears to the grantor to be appropriate for bringing it to the attention of the persons for whose benefit it will enure, and a licence expressed to be so granted must be in writing.

(7) A person shall not be concerned to inquire whether the grant by the Corporation of a licence under subsection (1) was, or was not, effected with the consent of, or in accordance with the terms of a general authority given by, the Secretary of State; and the validity of a licence granted by the Corporation under that subsection shall not be impugned on the grounds that it was granted neither with the consent of, nor in accordance with the terms of a general authority given by, him.

(8) For the purposes of a licence granted under subsection (1), the definition of a class of persons may be framed by reference to any circumstances whatever.

(9) Any sums received by the Secretary of State under this section shall be paid into the Consolidated Fund.

Approval of apparatus used for telecommunication

Approval of apparatus which is to be connected to a telecommunication system run by the Corporation

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(1) Standards to which subscriber's apparatus of a description specified therein must conform if it is, or is to be, connected (either directly or indirectly) to a telecommunication system run by the Corporation, being a system so specified or of a description so specified, may be approved—

(a) after consultation with the Corporation, by the Secretary of State; or

(b) after such consultation as aforesaid, by a person or body appointed for the purpose by the Secretary of State;

and an approval under this subsection may specify conditions which must be complied with in relation to any apparatus or its connection or use if it is to be regarded as conforming to the standard to which the approval relates.

(2) Where, in the case of any subscriber's apparatus, a standard is not for the time being approved under subsection (1) in relation to any telecommunication system run by the Corporation, the apparatus must be approved—

(a) after consultation with the Corporation, by the Secretary of State;

(b) after such consultation as aforesaid, by a person or body appointed for the purpose by the Secretary of State; or

(c) with the consent of, or in accordance with a general authorisation given by, the Secretary of State, by the Corporation,

if it is, or is to be, connected (either directly or indirectly) to that system; and an approval under this subsection may be subject to compliance with any conditions as to the apparatus or its connection or use specified in the approval.

(3) Any power conferred by subsection (1) or (2) to issue an approval includes power, exercisable in the like manner and subject to the like conditions or limitations, to vary or withdraw any approval issued in the exercise of that power.

(4) If it appears to the Secretary of State that the Corporation is showing undue preference to, or is exercising undue discrimination against, any person or persons of any class or description as respects—

(a) the connection to any telecommunication system run by the Corporation of subscriber's apparatus which is approved for the purposes of this section; or

(b) the charges or other terms and conditions applicable to the connection to any such system of any such apparatus,

he may, after consultation with the Corporation, give it such directions as appear to him to be requisite to secure that it ceases to do so.

(5) Notice of an approval or the variation or withdrawal of an approval under subsection (1) shall be published in such manner as appears to the Secretary of State to be appropriate.

(6) For the purposes of a standard approved under subsection (1), the definition of a description of subscriber's apparatus may be framed by reference to any circumstances whatever.

(7) In this section and section 21 " subscriber's apparatus " means apparatus owned by or supplied to a person other than the Corporation; and references to subscriber's apparatus which, in relation to any telecommunication system run by the Corporation, is approved for the purposes of this section are references to such apparatus which either—

(a) conforms to a standard approved under subsection (1); or

(b) is itself approved under subsection (2),

in relation to that system.

(8) For the purposes of this Part, any apparatus a function of which is—

(a) to emit sounds or signals with a view to their being conveyed by a telecommunication system; or

(b) to receive sounds or signals which have been so conveyed,

shall be treated as connected to a telecommunication system at any time if, at that time, sounds or signals emitted by it are being conveyed by that system or, as the case may be, it is receiving sounds or signals which have been so conveyed; and references to apparatus which is to be, or is capable of being, connected to a telecommunication system shall be construed accordingly.

Information etc. to be marked on or to accompany apparatus

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(1) Where it appears to the Secretary of State expedient that apparatus which is capable of being connected (either directly or indirectly) to a telecommunication system should be marked with or accompanied by any information or instruction relating to the apparatus or its connection or use, the Secretary of State may by order impose requirements for securing that the apparatus is so marked or accompanied, and regulate or prohibit the supply of such apparatus with respect to which the requirements are not complied with ; and the requirements may extend to the form and manner in which the information or instruction is to be given.

(2) Where an order under this section is in force with respect to apparatus of any description, any person who, in the course of any trade or business, supplies or offers to supply apparatus of that description in contravention of the order shall, subject to section 19, be guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum ;

(b) on conviction on indictment, to a fine.

(3) An order under this section may make different provision for different circumstances and may, in the case of apparatus supplied in circumstances where the information or instruction required by the order would not be conveyed until after delivery, require the whole or part thereof to be also displayed near the apparatus.

(4) Orders under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) For the purposes of this section a person exposing apparatus for supply or having apparatus in his possession for supply shall be deemed to offer to supply it.

(6) In this section and section 18 "supply" shall be construed in accordance with section 9 of the Consumer Safety Act 1978 and, in the case of the Corporation, shall be construed as including supply in pursuance of a scheme made under section 21.

Information etc. to be given in advertisements

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(1) Where it appears to the Secretary of State expedient that any description of advertisements of apparatus which is capable of being connected (either directly or indirectly) to a telecommunication system should contain or refer to any information relating to the apparatus or its connection or use, the Secretary of State may by order impose requirements as to the inclusion of that information, or an indication of the means by which it may be obtained, in such description of advertisements of the apparatus as may be specified in the order.

(2) Where an advertisement of any apparatus to be supplied in the course of any trade or business fails to comply with any requirement imposed under this section, any person who publishes the advertisement shall, subject to section 19, be guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

(3) An order under this section may specify the form and manner in which any information or indication required by the order is to be included in advertisements of any description and may make different provision for different circumstances.

(4) Orders under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) In this section "advertisement" includes a catalogue, a circular and a price list.

Offences due to default of third person

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(1) Where the commission by any person of an offence under section 17 or 18 is due to the act or default of some other person, that other person shall be guilty of the offence ; and a person may be charged with and convicted of the offence by virtue of this subsection whether or not proceedings are taken against the first-mentioned person.

(2) In any proceedings for an offence under section 17 or 18 it shall, subject to subsection (3), be a defence for the person charged to prove that he took all reasonable steps and exercised all due diligence to avoid committing the offence.

(3) Where the defence provided by subsection (2) involves an allegation that the commission of the offence was due to the act or default of another person, the person charged shall not, without leave of the court, be entitled to rely on that defence unless, within a period ending seven clear days before the hearing, he has served on the prosecutor a notice in writing giving such information identifying or assisting in the identification of that other person as was then in his possession.

(4) In any proceedings for an offence under section 18 it shall be a defence for the person charged to prove that he is a person whose business it is to publish or arrange for the publication of advertisements and that he received the advertisement for publication in the ordinary course of business and did not know and had no reason to suspect that its publication would amount to an offence under that section.

Enforcement provisions

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(1) A relevant authority shall have power to purchase apparatus, and to authorise any of their officers to purchase apparatus on their behalf, for the purpose of ascertaining whether sections 17 and 18 and orders made under those sections (in this section referred to as " the relevant provisions") are being complied with.

(2) Every local weights and measures authority in Great Britain shall have power to enforce the relevant provisions within their area; but nothing in this subsection shall be construed as authorising a local weights and measures authority in Scotland to institute proceedings for an offence.

(3) In this section " relevant authority " means—

(a) in relation to Great Britain, the Secretary of State or a local weights and measures authority on whom a power to enforce the relevant provisions is conferred by subsection (2);

(b) in relation to Northern Ireland, the Department of Commerce for Northern Ireland ; and

Charges and other terms and conditions applicable to services

Schemes for determining charges and other terms and conditions applicable to services

21

Deemed contracts in certain cases

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Limitation of liability

Exclusion of certain liabilities in tort in relation to telecommunications

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Finance

General duty of the Corporation as to finance

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Reserves of the Corporation and its wholly owned subsidiaries

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(1) The Secretary of State may from time to time, after consultation with the Corporation and with the approval of the Treasury, give to the Corporation directions —

(a) requiring it to allocate to reserve generally, or to reserve for a particular purpose, or to cause any of its wholly owned subsidiaries so to allocate, either a specified amount or such amount as the Corporation considers adequate;

(b) requiring it to re-allocate for a specified purpose, or to cause any of its wholly owned subsidiaries so to re-allocate, the whole or any part of any amount previously allocated by the Corporation or subsidiary, as the case may be, to reserve for some other purpose ; or

(c) with respect to the application by the Corporation or any of its wholly owned subsidiaries of amounts allocated to reserve.

(2) Directions under subsection (1) requiring the allocation of any amount to reserve may provide for it to be so allocated either at a specified time or during the course of a specified period.

Borrowing powers of the Corporation and its wholly owned subsidiaries

26

(1) The Corporation may borrow temporarily, by way of overdraft or otherwise.—

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

(b) with the consent of the Secretary of State and the approval of the Treasury, in sterling or a currency other than sterling from a person other than the Secretary of State,

such sums as may be required for meeting the obligations and discharging the functions of the Corporation or any of its wholly owned subsidiaries.

(2) The Corporation may borrow, otherwise than by way of temporary loan.—

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

(b) with the consent of the Secretary of State and the approval of the Treasury, in sterling or a currency other than sterling from a person other than the Secretary of State,

such sums as may be required by the Corporation or any of its wholly owned subsidiaries for all or any of the purposes mentioned in subsection (3).

(3) The said purposes are—

(a) provision of money for meeting any expenses incurred by the Corporation or any of its subsidiaries in connection with any works the cost of which is chargeable to capital account;

(b) provision of working capital required by it or any such subsidiary;

(c) subscription for, or acquisition of, securities of an incorporated company or other body corporate, promotion of the formation of an incorporated company or participation in the promotion of such a company or acquisition of an undertaking or part of an undertaking ;

(d) repayment of any money borrowed by it or any such subsidiary and repayment of any sums issued by the Treasury in fulfilment of a guarantee under section 29;

(e) any other purpose for which capital moneys are properly applicable.

(4) The Corporation may borrow from any of its wholly owned subsidiaries without any consent, approval or other authority.

(5) References in this section and section 27 to borrowing by the Corporation do not include references to receiving any money in its capacity as the provider of any services or the supplier of any apparatus, or using money received in that capacity.

(6) It shall be the duty of the Corporation to secure that none of its wholly owned subsidiaries borrows otherwise than from the Corporation or from another of its wholly owned subsidiaries except with the consent of the Secretary of State and the approval of the Treasury.

(7) A person lending money to the Corporation shall not be concerned to inquire whether the borrowing of the money is legal or regular or whether the money raised was properly applied and shall not be prejudiced by any illegality or irregularity or by the misapplication or non-application of any of the money.

(8) This section shall come into operation on the appointed day.

Limitation of indebtedness

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(1) The Corporation shall not have power to borrow money except in accordance with section 26.

(2) The aggregate amount outstanding, otherwise than by way of interest, in respect of—

(a) money borrowed by the Corporation or any of its wholly owned subsidiaries, other than money borrowed on excluded loans; and

(b) sums issued by the Treasury in fulfilment of guarantees under section 29,

shall not at any time exceed £5,000 million or such greater sum, not exceeding £6,500 million, as the Secretary of State may from time to time by order specify.

(3) A loan is an excluded loan for the purposes of subsection (2) if it consists of money borrowed—

(a) by the Corporation from one of its wholly owned subsidiaries ; or

(b) by one of its wholly owned subsidiaries from another such subsidiary or from the Corporation.

(4) An order under subsection (2) shall be made by statutory instrument, and no such order shall be made unless a draft thereof has been approved by a resolution of the Commons House of Parliament.

Loans by the Secretary of State to the Corporation

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

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

Treasury guarantees

29

Accounts of the Secretary of State with reference to the Corporation's indebtedness to him

30

The Secretary of State shall, as respects each financial year, prepare in such form and manner as the Treasury may direct, an account of—

(a) sums received by him under subsection (2) of section 28 ;

(b) sums issued to him under subsection (3) of that section ;

(c) sums received by him as mentioned in paragraph 9(5) of Schedule 4 (interest on, or repayment of, the Corporation's assumed debt); and

(d) the disposal by him of those sums respectively,

and send it to the Comptroller and Auditor General not later than the end of November following the year; and the Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it, together with his report, before each House of Parliament.

The Corporation’s accounts, and audit thereof

The Corporation's accounts and audit thereof

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Pensions

Duty of the Corporation to provide pensions

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Power of the Secretary of State to make orders about pensions

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

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

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

Pensions of employees and former employees of Cable and Wireless Limited and certain other persons

34

Rating

Rating in England and Wales

35

Rating in Scotland

36

(1) In paragraph 5 of Schedule 1 to the Local Government (Scotland) Act 1975 (lands and heritages to which section 6(1) of that Act applies and occupied by the Post Office by certain property used for the purposes of telecommunication services) for the words “the Post Office” there shall be substituted the words “ British Telecommunications ”.

(2) This section applies to Scotland only.

Rating in Northern Ireland

37

Land

Compulsory purchase of land in England and Wales

38

(1) The Secretary of State may authorise the Corporation to purchase compulsorily any land in England and Wales which is required by it for, or in connection with, the exercise of its powers or as to which it can reasonably be foreseen that it will be so required; and the Acquisition of Land (Authorisation Procedure) Act 1946 shall apply to the compulsory purchase of land in England and Wales by the Corporation as if the Corporation were a local authority within the meaning of that Act and as if this Act had been in force immediately before the commencement of that Act.

(2) The power of purchasing land compulsorily in this section shall include power to acquire, by the creation of a new right, an easement or other right over land, other than land which would, for the purposes of the said Act of 1946, form part of a common, open space or fuel or field garden allotment.

Compulsory purchase of land in Scotland

39

(1) The Secretary of State may authorise the Corporation to purchase compulsorily any land in Scotland which is required for, or in connection with, the exercise of its powers or as to which it can be reasonably foreseen that it will be so required; and the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 shall apply to the compulsory purchase of land in Scotland by the Corporation as if the Corporation were a local authority within the meaning of that Act and as if this Act had been in force immediately before the commencement of that Act.

(2) The power of purchasing land compulsorily in this section shall include power to acquire, by the creation of a new right, a servitude or other right over land, other than land which would, for the purposes of the said Act of 1947, form part of a common or open space.

Compulsory purchase of land in Northern Ireland

40

(1) Where the Corporation proposes to acquire, otherwise than by agreement, any land in Northern Ireland required by it for, or in connection with, the exercise of its powers or as to which it can reasonably be foreseen that it will be so required, it may apply to the Secretary of State for an order vesting that land in it, and the Secretary of State shall have power to make such an order.

(2) For the purposes of the acquisition of land by means of a vesting order under this section, Schedule 6 to the Local Government Act (Northern Ireland) 1972 and Schedule 8 to the Health and Personal Social Services (Northern Ireland) Order 1972 (as amended by any enactment of Northern Ireland legislation passed or made before the passing of this Act) are hereby incorporated in this Act subject to the modifications specified in subsection (3).

(3) The said modifications are as follows—

(a) for any reference in the said Schedule 6 to a council there shall be substituted a reference to the Corporation ;

(b) for any reference in either Schedule to the Ministry there shall be substituted a reference to the Secretary of State;

(c) for any reference in either Schedule to the Act or Order in question there shall be substituted a reference to this Act;

(d) in paragraph 6(2) of the said Schedule 6, for the words from " the fund " onwards there shall be substituted the words " funds of British Telecommunications (in this Schedule referred to as ' the compensation fund') and shall be discharged by payments made by British Telecommunications " ; and

(e) in paragraph 12(2) of that Schedule for the words " the clerk of the council" there shall be substituted the words " such person as may be designated for the purposes of this Schedule by British Telecommunications ".

(4) The Acquisition of Land (Assessment of Compensation) Act 1919 shall, in its application to any land vested in the Authority by an order made under this section, have effect as amended by the Lands Tribunal and Compensation Act (Northern Ireland) 1964.

(5) In this section " land " has the meaning assigned to it by section 45(1)(a) of the Interpretation Act (Northern Ireland) 1954.

Entry, for exploratory purposes, on land in England and Wales

41

(1) A person duly authorised in writing by the Corporation may, at any reasonable time, enter upon and survey any land in England and Wales other than land covered by buildings or used as a garden or pleasure ground, for the purpose of ascertaining whether the land would be suitable for use for the purposes of its business.

(2) Sections 280(9) and 281(1) to (3) and (6) of the Town and Country Planning Act 1971 (which contain supplementary provisions relating to the powers of entry conferred by section 280(1) to (8) thereof) shall have effect in relation to the power conferred by this section as they have effect in relation to the powers conferred by the said section 280, subject however to the following modifications, namely—

(a) that section 280(9) (which relates to power to search and bore for the purpose of ascertaining the nature of the subsoil or the presence of minerals therein) shall so have effect as if the words "or the presence of minerals therein " were omitted ; and

(b) that section 281(1) (which requires twenty-four hours' notice to be given of an intended entry upon occupied land) shall so have effect as if for the words " twenty-four hours " there were substituted the words " twenty-eight days ".

(3) Where, in an exercise of the power conferred by this section, any damage is caused to land or to chattels, any person interested in the land or chattels may recover from the Corporation compensation in respect of the damage ; and where, in consequence of an exercise of that power, any person is disturbed in his enjoyment of any land or chattels, he may recover from the Corporation compensation in respect of the disturbance.

(4) Section 179 of the said Act of 1971 (which provides for the determination of disputes as to compensation under Part VIII of that Act) shall apply to any question of disputed compensation under this section.

(5) This section shall come into operation on the appointed day.

Entry, for exploratory purposes, on land in Scotland

42

(1) A person duly authorised in writing by the Corporation may, at any reasonable time, enter upon and survey any land in Scotland, other than land covered by buildings or used as a garden or pleasure ground, for the purpose of ascertaining whether the land would be suitable for use for the purposes of its business.

(2) Sections 265(8) and 266(1) to (3) and (6) of the Town and Country Planning (Scotland) Act 1972 (supplementary provisions as to powers of entry) shall have effect in relation to the power conferred by this section as they have effect in relation to the powers conferred by the said section 265, subject however to the following modifications, namely—

(a) that section 266(1) (twenty-four hours' notice to be given of an intended entry upon occupied land) shall so have effect as if for the words " twenty-four hours " there were substituted the words " twenty-eight days "; and

(b) that section 265(8) (power to search and bore for minerals etc.) shall so have effect as if the words " or the presence of minerals therein " were omitted.

(3) Where, in an exercise of the power conferred by this section, any damage is caused to land or to corporeal moveables, any person interested in the land or corporeal moveables may recover from the Corporation compensation in respect of the damage ; and where, in consequence of an exercise of that power, any person is disturbed in his enjoyment of any land or corporeal moveables, he may recover from the Corporation compensation in respect of the disturbance.

(4) Any question arising under this section as to the effect of damage or as to the amount of compensation shall, in the case of dispute, be determined by arbitration, and the reference in such an arbitration shall be to a single arbiter to be appointed by agreement between the parties or, in default of an agreement, by the Secretary of State.

(5) This section shall come into operation on the appointed day.

Entry, for exploratory purposes, on land in Northern Ireland

43

(1) A person duly authorised in writing by the Corporation may, at any reasonable time, enter upon and survey any land in Northern Ireland, other than land covered by buildings or used as a garden or pleasure ground, for the purpose of ascertaining whether the land would be suitable for use for the purposes of its business.

(2) Section 40(2) to (5) and (8) of the Land Development Values (Compensation) Act (Northern Ireland) 1965 (which contain supplementary provisions relating to the power of entry conferred by subsection (1) of that section) shall have effect in relation to the power conferred by this section as they have effect in relation to the power conferred by the said subsection (1), subject however to the following modifications, namely—

(a) that section 40(2) (which relates to power to search and bore for the purpose of ascertaining the nature of the subsoil or the presence of minerals therein) shall so have effect as if the words " or the presence of minerals therein " were omitted; and

(b) that section 40(3)(b) (which requires three days' notice to be given of an intended entry upon occupied land) shall so have effect as if for the word " three " there were substituted the word " twenty-eight ".

(3) Where, in an exercise of the power conferred by this section any damage is caused to land or to chattels, any person interested in the land or chattels may recover from the Corporation compensation in respect of the damage; and where, in consequence of an exercise of that power, any person is disturbed in his enjoyment of any land or chattels, he may recover from the Corporation compensation in respect of the disturbance.

(4) Section 31 of the said Act of 1965 (which provides for the determination of disputes as to compensation under Part III of that Act) shall apply to any question of disputed compensation under this section.

(5) This section shall come into operation on the appointed day.

Acquisition of land by agreement

44

(1) For the purpose of the acquisition by the Corporation by agreement of land in England and Wales, the provisions of Part I of the Compulsory Purchase Act 1965 (so far as applicable) other than sections 4 to 8, section 27 and section 31 shall apply.

(2) For the purpose of the acquisition by the Corporation by agreement of land in Scotland, section 109(2) of the Town and Country Planning (Scotland) Act 1972 (incorporation of Lands Clauses Acts) shall, with any necessary modifications, apply for the purposes of this Act as it applies for the purposes of that Act

(3) For the purpose of the acquisition by the Corporation by agreement of land in Northern Ireland, the Lands Clauses Acts shall be incorporated with this Act except for sections 127 to 133 (sale of superfluous land) and sections 150 and 151 (access to the special Act) of the Lands Clauses Consolidation Act 1845.

Miscellaneous provisions relating to land

45

(1) The Chancellor and Council of the Duchy of Lancaster may, if they think fit, agree with the Corporation for the sale, and absolutely make sale, for such sum of money as appears to them to be sufficient consideration for the same, of any land belonging to Her Majesty in right of the Duchy of Lancaster which the Corporation seeks to acquire in exercise of the power conferred on it by virtue of section 2(3)(e).

(2) A person dealing with the Corporation in respect of land shall not be bound or entitled to inquire whether the consent of the Treasury to any previous dealing with the land was requisite or whether, if it was, it was given.

(3) Land vested in the Corporation by virtue of this Part shall be deemed for all purposes to have been acquired by it for the purposes of its undertaking.

Offences

Prohibition of affixing placards, notices etc. on the Corporation's property

46

A person who without due authority affixes or attempts to affix any placard, advertisement, notice, list, document, board or thing in or on any office, telegraph post or other property belonging to or used by the Corporation shall be guilty of an offence and liable on summary conviction to a fine not exceeding £50.

Assaults etc. on employees of the Corporation

47

(1) A person who—

(a) assaults or intentionally obstructs an employee of the Corporation in the execution of his duty; or

(b) whilst in any office of the Corporation or premises belonging to or used with any such office, intentionally obstructs the course of business of the Corporation,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding £200.

(2) Any person employed by the Corporation may require any person guilty of an offence under subsection (1) to leave such office or premises and, if the person so required refuses or fails to comply with the requirement, he shall be liable on summary conviction to a further fine not exceeding £200 and may be removed by any employee of the Corporation, and any constable shall on demand remove or assist in removing any such person.

Fraudulent use of public telecommunication system

48

(1) A person who dishonestly uses a public telecommunication system with intent to avoid payment (including any such system provided, under licence, otherwise than by the Corporation) shall be guilty of an offence and liable—

(a) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both ; and

(b) on conviction on indictment, to a fine or to imprisonment for a term not exceeding two years or to both.

(2) This section shall come into operation on the appointed day.

Improper use of public telecommunication system

49

(1) A person who—

(a) sends, by means of a public telecommunication system (including any such system provided, under a licence, otherwise than by the Corporation), a message or other matter that is grossly offensive or of an indecent, obscene or menacing character ; or

(b) sends by those means, for the purpose of causing annoyance, inconvenience or needless anxiety to another, a message that he knows to be false or persistently makes use for that purpose of a public telecommunication system,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding £200.

(2) This section shall come into operation on the appointed day.

Obligation of secrecy

50

(1) Information obtained by a person in the course of the provision for another, by virtue of this Part, of data processing services or services connected therewith shall not, without the consent of that other, be disclosed by the first-mentioned person except for the purpose of performing his duties in relation to those services or in such cases as may be required by law.

(2) A person who discloses information in contravention of subsection (1) shall be guilty of an offence and liable—

(a) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both ;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

Offences by bodies corporate etc.

51

(1) Where a body corporate is guilty of an offence under this Part and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(2) Where the affairs of a body corporate are managed by its members, subsection (1) shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Summary proceedings

52

Proceedings for any offence under this Part punishable on summary conviction may be commenced at any time within twelve months next after the commission of the offence.

Miscellaneous

Documentary evidence as to sums due for services

53

Reimbursement by the Corporation of certain contributions to international organisations

54

Power of local authorities to contribute towards new offices or facilities

55

Records

56

Interpretation and extent of Part I

57

PART II — The Post Office

Powers and duties of the Post Office

Powers of the Post Office

58

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

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

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

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

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

General duty of the Post Office

59

Redistribution of property, rights and liabilities among wholly owned subsidiaries

60

Control of wholly owned subsidiaries

61

Powers of the Secretary of State over the Post Office

General control and supervision by the Secretary of State

62

Activities requiring consultation with the Secretary of State

63

Activities requiring approval of the Secretary of State

64

Post Office Users’ Councils

Power to provide that certain services shall no longer be referable to Post Office Users' Councils

65

Exclusive privilege of the Post Office with respect to the conveyance etc. of letters

66

General classes of acts not infringing the postal privilege

67

Savings for things done under a licence

68

Suspension of the postal privilege

69

Limitation of liability

The Post Office to be subject to limited liability in respect of certain inland packets

70

Finance

General duty of the Post Office as to finance

71

Reserves of the Post Office and its wholly owned subsidiaries

72

Borrowing powers of the Post Office and its wholly owned subsidiaries

73

Limitation of indebtedness

74

The Post Office's accounts and audit thereof

75

Pensions

Power of the Secretary of State to make orders about pensions

76

Miscellaneous

Delivery boxes

77

Interpretation and extent of Part II

78

(1) This Part shall be construed as one with Part III of the 1969 Act.

(2) This Part, except sections 59 and 63 to 70, shall extend to the Isle of Man and the Channel Islands.

PART III — Miscellaneous and General

Powers of Treasury to dispose etc. of the shares of Cable and Wireless Limited

79

(1) The Treasury after consultation with the Secretary of State may at any time dispose of their interest in all or any of the shares of Cable and Wireless Limited in consideration of such sums as the Treasury may fix; and after any such disposal section 1(1) of the Imperial Telegraphs Act 1938 and section 3(5) of the Cable and Wireless Act 1946 (which require the payment into the Exchequer of dividends paid on the said shares) shall not apply to dividends so paid in respect of the shares to which the disposal relates.

(2) The Treasury after consultation with the Secretary of State or the Secretary of State with the consent of the Treasurymay at any time—

(a) acquire an interest in any shares or stock of Cable and Wireless Limited or any of its subsidiaries or in any rights to subscribe for any such shares; and

(b) dispose of an interest so acquired in consideration of such sum as the Treasury or the Secretary of State may fix.

(3) Any sums required by the Treasury or the Secretary of State for making an acquisition under subsection (2) shall be paid out of moneys provided by Parliament; and any sums received by the Treasury or the Secretary of State in consideration of a disposal made under subsection (1) or (2), or by way of dividend or otherwise in right of any interest acquired by them or him under subsection (2), shall be paid into the Consolidated Fund.

Amendment of the Telegraph Acts

80

Stamp duty

81

(1) Stamp duty shall not be chargeable on any instrument which is certified to the Commissioners of Inland Revenue by the Corporation, the Post Office or any wholly owned subsidiary of either of those bodies as having been made or executed in pursuance of section 10 or Schedule 2; but no such instrument shall be deemed to be duly stamped unless it is stamped with the duty to which it would but for this subsection be liable or it has, in accordance with the provisions of section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.

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

Tax provisions

82

(1) For the purposes of the Taxation of Chargeable Gains Act 1992 any asset transferred by this Act from the Post Office to the Corporation, or from the Corporation to the Post Office, shall be deemed to be for a consideration such that no gain or loss accrues to the transferor on its transfer; and Schedule 2 to that Act shall have effect in relation to any asset so transferred as if the acquisition or provision of it by the transferor, or the acquisition or provision of it by the Crown which is treated as the acquisition or provision of it by the transferor, had been the acquisition or provision of it by the transferee.

(2) For the purposes of the Corporation Tax Acts—

(a) the part of the Post Office’s trade transferred by this Act to the Corporation (“the transferred trade”) and the part thereof retained by the Post Office (“the retained trade”) shall be treated as having been, at all times since the commencement of the Post Office’s trade, separate trades carried on by the Corporation and the Post Office respectively; and

(b) the trade carried on by each of those bodies after the appointed day shall be treated as the same trade as that which, by virtue of paragraph (a), it is treated as having carried on before that day.

(3) The aggregate of the amounts for which the Corporation and the Post Office are entitled to relief under section 177(1) of the Income and Corporation Taxes Act 1970, as for losses sustained by them before the appointed day in carrying on the transferred trade and the retained trade, shall not exceed the amount which, if subsection (2) had not been enacted and the Post Office had continued to carry on both trades, would have been available to it for carrying forward against trading income from the trades in succeeding accounting periods.

(4) Where, in the discharge of any liability which is transferred to the Corporation by this Act, the Corporation makes payments to the trustees of a retirement benefits scheme with a view to the provision of relevant benefits for persons who are employees of the Post Office, the Tax Acts shall have effect in relation to those payments—

(a) as if those persons were employees of the Corporation; and

(b) where the scheme is an exempt approved scheme, as if paragraph (a) of the proviso to section 21(3) of the Finance Act 1970 were omitted;

and in this subsection expressions which are also used in Chapter II of Part II of the said Act of 1970 have the same meanings as in that Chapter.

(5) Any transfer by this Act of an interest in land from the Post Office to the Corporation, or from the Corporation to the Post Office, shall be deemed to be a disposal to which subsection (1) of section 20 of the Development Land Tax Act 1976 (groups of companies) applies.

(6) For the purposes of section 21 of the Finance Act 1972 (value added tax: group registration) the Corporation, the Post Office and any bodies corporate resident in the United Kingdom or the Isle of Man which are subsidiaries of either of those bodies shall be eligible to be treated as members of a group until the expiration of the period of three years beginning with the appointed day; and where, by virtue of this subsection, two or more bodies are so treated, the Commissioners of Customs and Excise shall, as soon as practicable after the expiration of that period, by notice to those bodies, terminate that treatment from such date as may be specified in the notice.

(7) Subsections (2) and (3) shall have effect in relation to accounting periods of the Corporation and of the Post Office ending on or after the appointed day.

Financial provisions

83

(1) There shall be paid out of moneys provided by Parliament—

(a) any administrative expenses of the Secretary of State under this Act; and

(b) any increase attributable to the provisions of this Act in the sums which under any other enactment are paid out of moneys so provided.

(2) There shall be paid out of the Consolidated Fund or the National Loans Fund any increase attributable to the provisions of this Act in the sums which under any other enactment are paid out of that Fund.

Power of managers of certain welfare funds to preserve their scope

84

(1) A fund to which this section applies is one (whether described by the addition thereto of the attribute “welfare”, “benevolent” or “mutual aid” or by the addition thereto of any other attribute) the objects of which consist in or include the provision for—

(a) persons who are, or have been, employees of the Post Office, or for such persons of any class or description; or

(b) for the relatives and dependants of any persons who are or have been so employed, or of such persons of any class or description,

of benefits in case of need, sickness or distress, and a society or organisation to which this section applies is one (however described) the objects of which are similar; and in this section—

“managers” in relation to a fund, society or organisation, means the trustees, committee or other persons entrusted with its management;

“relevant body” means the Corporation or any of its subsidiaries or any subsidiary of the Post Office.

(2) The provisions of the trust deed, rules, regulations or other instrument constituting or regulating a fund, society or organisation to which this section applies may, by resolution of the managers of the fund, society or organisation, be altered—

(a) so as to permit persons who are employees (past or present) of a relevant body, or persons who are members of a class of persons of that description, to become members of, or subscribers to, the fund, society or organisation;

(b) so as, in the case of persons of the said description or persons who are members of a class of persons of that description, to entitle them and persons claiming in right of them (subject to such, if any, terms and conditions as may be specified in the resolution) to receive benefits from the fund, society or organisation if, and to the extent that, they would be entitled to receive benefits therefrom if employment by a relevant body were employment by the Post Office;

but so that no alteration be made that alters the character of the fund, society or organisation.

(3) If a resolution of the managers of a fund, society or organisation to which this section applies so provides—

(a) any reference in the trust deed, rules, regulations or other instrument constituting or regulating the fund, society or organisation to the Post Office (not being a reference in a context referring, in whatever terms, to persons employed by the Post Office or persons so employed of a specified description) shall be construed as referring (or, if the context so requires, as including a reference) to a relevant body; and

(b) any reference in that instrument, in whatever terms, to persons so employed or persons so employed of a specified description shall be construed as referring (or, if the context so requires, as including a reference) to persons employed by a relevant body or, as the case may be, to persons so employed of a corresponding description.

(4) For the purposes of a resolution deriving validity from this section, the definition of a class of persons may be framed by reference to any circumstances whatever.

General interpretation

85

(1) In this Act—

“the 1953 Act” means the Post Office Act 1953;

“the 1969 Act” means the Post Office Act 1969;

“the appointed day” has the meaning given by section 1(2);

“the Corporation” means British Telecommunications;

“pension” includes allowance and gratuity;

“statutory provision”, except in relation to Northern Ireland or the Isle of Man, has the same meaning as in section 57(1) of the Harbours Act 1964, in relation to Northern Ireland, has the same meaning as in section 1(f) of the Interpretation Act (Northern Ireland) 1954 and, in relation to the Isle of Man, means an Act of Tynwald.

(2) Any reference in this Act to a subsidiary or wholly-owned subsidiary shall be construed in accordance with section 1159 of the Companies Act 2006.

(3) This section shall extend to the Isle of Man and the Channel Islands.

Application to Northern Ireland

86

(1) In the application of this Act to Northern Ireland any reference—

(a) to an enactment comprised in Northern Ireland legislation (except a reference to Schedule 6 to the Local Government Act (Northern Ireland) 1972 or Schedule 8 to the Health and Personal Social Services (Northern Ireland) Order 1972); or

(b) to an enactment which the Northern Ireland Assembly has power to amend,

shall, except in Schedule 3, be construed as including a reference to any enactment comprised in Northern Ireland legislation passed or made after this Act and re-enacting the said enactment with or without modification.

(2) Regulations made by the Secretary of State under the Civil Defence Act (Northern Ireland) 1950 may apply to the Corporation such of the provisions of the Civil Defence Act (Northern Ireland) 1939 (except section 7(4) thereof) relating to public utility undertakers as may be specified in the regulations and may specify the Secretary of State as the appropriate department in relation to the Corporation for the purpose of the application of any provisions so specified to the Corporation.

(3) There shall be excluded from the workers in relation to whom the Road Haulage Wages Council (Northern Ireland) and any wages council established under the Wages Councils Act (Northern Ireland) 1945 may operate any person employed by the Corporation on road haulage work within the meaning of paragraph 1 of the Schedule to the Road Haulage Wages Council (Northern Ireland) (Variation) Order 1952.

Consequential amendments

87

(1) The amendments contained in Schedule 3 shall have effect, being minor amendments or amendments consequential on the foregoing provisions of this Act.

(2) This section and Schedule 3 shall extend to the Isle of Man, so far as regards any enactment mentioned in that Schedule that so extends, and shall extend to the Channel Islands so far as regards any enactment so mentioned that so extends.

Transitional provisions

88

(1) The general transitional provisions contained in Schedule 4... shall have effect.

(2) This section and Schedules 4 ... shall extend to the Isle of Man, and this section and Schedule 4 shall extend to the Channel Islands.

Repeals and savings

89

(1) The enactments mentioned in part I of Schedule 6 (which includes some that are spent or no longer of practical utility) shall on the passing of this Act be repealed to the extent soecified in the third column of that Schedule ; and the enactments mentioned in Part II of that Schedule shall on the appointed day, be repealed to the extent specified in that column.

(2) By reason of the repeal of this section by the Post Office Act 1961, there shall be inserted in Schedule 9 to the 1969 Act (general transitional provisions) at the end of paragraph 2 the following sub-paragraph—

(4) With respect to instruments and documents executed or signed before the appointed day— (a) every instrument or document purporting to be executed or signed by or on behalf of the Postmaster General shall be deemed to be so executed or signed unless the contrary is shown ; and (b) a certificate signed before the appointed day by the Postmaster General that any instrument or document purporting to be executed or signed shall be conclusive evidence of that fact.

(3) Notwithstanding the repeal by this section of the said Act of 1961, the Exchequer and Audit Departments Act 1866 and the Exchequer and Audit Departments Act 1921 shall continue to have effect with the amendments made by Schedule 1 to the said Act of 1961.

(4) The repeal by this section of section 2 of the Post Office (Data Processing Service) Act 1967 and section 65 of the 1969 Act shall not affect the operation of those sections in relation to information obtained before the appointed day.

(5) This section and Schedule 6 shall extend to the Isle of Man so far as regards any enactment mentioned in that Schedule that so extends (other than an enactment contained in the Telegraph Act 1863), and shall extend to the Channel Islands so far as regards any enactment so mentioned that so extends.

Short title and extent

90

(1) This Act may be cited as the British Telecommunications Act 1981.

(2) This Act extends to Northern Ireland.

SCHEDULE 1

Status

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Members

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

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5

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6

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7

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Proceedings

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

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Staff

11

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12

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13

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Fixing of seal and proof of instruments

14

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15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 2

Allocation of property, rights and liabilities

1

(1) The provisions of this paragraph and paragraph 2 shall have effect where a transfer to which this Schedule applies is a transfer of all property, rights and liabilities comprised in a specified part of the transferor’s undertaking, but shall not apply to any such rights or liabilities under a contract of employment.

(2) Any property, right or liability comprised partly in the part of the transferor’s undertaking which is transferred to the transferee and partly in the part of that undertaking which is retained by the transferor shall, where the nature of the property, right or liability permits, be divided or apportioned between the transferor and the transferee in such proportions as may be appropriate; and, where any estate or interest in land falls to be so divided—

(a) any rent payable under a lease in respect of that estate or interest; and

(b) any rent charged on that estate or interest,

shall be correspondingly apportioned or divided so that the one part is payable in respect of, or charged on, only one part of the estate or interest and the other part is payable in respect of, or charged on, only the other part of the estate or interest.

(3) Sub-paragraph (2) shall apply, with any necessary modifications, in relation to any feuduty payable in respect of an estate or interest in land in Scotland as it applies in relation to any rents charged on an estate or interest in land; and in the application of that sub-paragraph In the application of sub-paragraph (2) to Northern Ireland “lease” in paragraph (a) includes a fee farm grant whether or not that grant creates the relationship of landlord and tenant.

(4) Any property, right or liability comprised as mentioned in sub-paragraph (2) the nature of which does not permit its division or apportionment as so mentioned shall be transferred to the transferee or retained by the transferor according to—

(a) in the case of an estate or interest in land, whether on the transfer date the transferor or the transferee appears to be in greater need of the security afforded by that estate or interest or, where neither appears to be in greater need of that security, whether on that date the transferor or the transferee appears likely to make use of the land to the greater extent;

(b) in the case of any other property or any right or liability, whether on the transfer date the transferor or the transferee appears likely to make use of the property, or as the case may be to be affected by the right or liability, to the greater extent,

subject (in either case) to such arrangements for the protection of the other of them as may be agreed between them.

2

(1) It shall be the duty of the transferor and the transferee, whether before or after the transfer date, so far as practicable to arrive at such written agreements and to execute such other instruments as are necessary or expedient to identify or define the property, rights and liabilities transferred to the transferee or retained by the transferor and as will—

(a) afford to the transferor and the transferee as against one another such rights and safeguards as they may require for the proper discharge of their respective functions; and

(b) make as from such date, not being earlier than the transfer date, as may be specified in the agreement or instrument such clarification and modifications of the division of the transferor’s undertaking as will best serve the proper discharge of the respective functions of the transferor and the transferee.

(2) Any such agreement shall provide so far as it is expedient—

(a) for the granting of leases and for the creation of other liabilities and rights over land whether amounting in law to interests in land or not, and whether involving the surrender of any existing interest or the creation of a new interest or not;

(b) for the granting of indemnities in connection with the severance of leases and other matters; and

(3) If the transferor or the transferee represents to the Secretary of State, or if it appears to the Secretary of State without such a representation, that it is unlikely in the case of any matter on which agreement is required under sub-paragraph (1) that such agreement will be reached, the Secretary of State may, whether before or after the transfer date, give a direction determining that matter and may include in the direction any provision which might have been included in an agreement under sub-paragraph (1); and any property, rights or liabilities required by the direction to be transferred to the transferee shall be regarded as having been transferred by this Act to, and by virtue thereof vested in, the transferee accordingly.

Rights and liabilities under contracts of employment

3

(1) The provisions of this paragraph shall have effect where any rights and liabilities transferred under a transfer to which this Schedule applies are rights and liabilities under a contract of employment and the transfer is of all property, rights and liabilities comprised in a specified part of the transferor’s undertaking.

(2) The rights and liabilities under the contract of employment shall be transferred only if immediately before the transfer date the employee concerned was employed in the part of the transferor’s undertaking which is transferred.

Right to production of documents of title

4

Where on any transfer to which this Schedule applies the transferor is entitled to retain possession of any documents relating in part to the title to, or to the management of, any land or other property transferred to the transferee, the transferor shall be deemed to have given to the transferee an acknowledgement in writing of the right of the transferee to production of that document and to delivery of copies thereof; and—

(a) in England and Wales, section 64 of the Law of Property Act 1925; and

(b) in Northern Ireland, section 9 of the Conveyancing Act 1881,

shall have effect accordingly, and on the basis that the acknowledgement did not contain any such expression of contrary intention as is mentioned in that section.

Perfection of vesting of certain property or rights

5

Where in the case of any transfer to which this Schedule applies any property or rights which fall to be transferred to the transferee cannot be properly vested in the transferee by virtue of this Act because transfers thereof are governed otherwise than by the law of a part of the United Kingdom, the transferor shall take all practicable steps for the purpose of securing that the ownership of the property or, as the case may be, the right is effectively transferred.

Proof of title by certificate

6

In the case of any transfer to which this Schedule applies, a joint certificate by or on behalf of the transferor and the transferee that any property specified in the certificate, or any such interest in or right over any such property as may be so specified, or any right or liability so specified, is by virtue of this Act for the time being vested in such one of them as may be so specified, shall be conclusive evidence for all purposes of that fact; and if on the expiration of one month after a request from either of them for the preparation of such a joint certificate as respects any property, interest, right or liability, they have failed to agree on the terms of the certificate, they shall refer the matter to the Secretary of State and issue the certificate in such terms as he may direct.

Restrictions on dealing with certain land

7

If the Secretary of State is satisfied on the representation of the transferor or the transferee that, in consequence of a transfer to which this Schedule applies, different interests in land, whether the same or different land, are held by the transferor and by the transferee and that the circumstances are such that this paragraph should have effect, the Secretary of State may direct that this paragraph shall apply to such of that land as may be specified in the direction, and while that direction remains in force—

(a) neither the transferor nor the transferee shall dispose of any interest to which they may respectively be entitled in any of the specified land except with the consent of the Secretary of State;

(b) if in connection with any proposal to dispose of an interest of either the transferor or the transferee in any of the specified land it appears to the Secretary of State to be necessary or expedient for the protection of either of them, he may—

(i) require either the transferor or the transferee to dispose of any interest to which it may be entitled in any of the specified land to such person and in such manner as may be specified in the requirement;

(ii) require either the transferror or the transferee to acquire from the other any interest in any of the specified land to which that other is entitled; or

(iii) consent to the proposed disposal subject to compliance with such conditions as the Secretary of State may see fit to impose;

but a person other than the transferor and the transferee dealing with, or with a person claiming under, either the transferor or the transferee shall not be concerned to see or enquire whether this paragraph applies or has applied in relation to any land to which the dealing relates or as to whether the provisions of this paragraph have been complied with in connection with that or any other dealing with that land, and no transaction between persons other than the transferor and the transferee shall be invalid by reason of any failure to comply with those provisions.

Construction of agreements, statutory provisions and documents

8

Where in the case of any transfer to which this Schedule applies any rights or liabilities transferred are rights or liabilities under an agreement to which the transferor was a party immediately before the transfer date, whether in writing or not, and whether or not of such nature that rights and liabilities thereunder could be assigned by the transferor, that agreement shall have effect on and after the transfer date as if—

(a) the transferee had been the party to the agreement;

(b) for any reference (whether express or implied and, if express, however worded) to the transferor there were substituted, as respects anything falling to be done on or after the transfer date, a reference to the transferee;

(c) any reference (whether express or implied and, if express, however worded) to a person employed by, or engaged in the business of, the transferor and holding a specified office or serving in a specified capacity were, as respects anything falling to be done on or after the transfer date, a reference to such person as the transferee may appoint or, in default of appointment, to a person employed by, or engaged in the business of, the transferee who corresponds as nearly as may be to the first-mentioned person;

(d) any reference in general terms (however worded) to persons employed by, persons engaged in the business of, or agents of, the transferor were, as respects anything to be done on or after the transfer date, a reference to persons employed by, persons engaged in the business of, or agents of, the transferee;

(e) where the agreement refers to property, rights or liabilities which fall to be apportioned or divided between the transferor and the transferee, the agreement constituted two separate agreements separately enforceable by and against the transferor and the transferee as regards the part of the property, rights or liabilities retained by the transferor or, as the case may be, the part thereof vesting in the transferee, and not as regards the other part;

and sub-paragraph (e) shall apply in particular to the covenants, stipulations and conditions of any lease by or to the transferor.

9

Except as otherwise provided in any provision of this Act (whether expressly or by necessary implication) paragraph 8, except sub-paragraph (a) thereof, shall apply in relation to any statutory provision, any provision of any agreement to which the transferor was not a party, and any provision of any document other than an agreement, if and so far as the provision in question relates to any of the transferred rights and liabilities, as it applies in relation to an agreement to which the transferor was a party, and, in relation to any such statutory or other provision as aforesaid, references in sub-paragraphs (b), (c) and (d) of that paragraph to the transferor and to any persons employed by, persons engaged in the business of, or agents of, the transferor include references made by means of a general reference to a class of persons of which the transferor is one, without the transferor itself being specifically referred to.

10

Without prejudice to the generality of the provisions of paragraphs 8 and 9, the transferee under a transfer to which this Schedule applies and any other person shall, as from the transfer date, have the same rights, powers and remedies (and in particular the same rights and powers as to the taking or resisting of legal proceedings or the making or resisting of applications to any authority) for ascertaining, perfecting or enforcing any right or liability vested in the transferee by virtue of this Act as he would have had if that right or liability had at all times been a right or liability of the transferee, and any legal proceedings or applications to any authority pending on the transfer date by or against the transferor in so far as they relate to any property, right or liability vested in the transferee by virtue of this Act, or to any agreement or enactment relating to any such property, right or liability, shall be continued by or against the transferee to the exclusion of the transferor.

11

(1) References in paragraphs 8 to 10 to agreements to which the transferor was a party and to statutory provisions include in particular reference to agreements to which the transferor became a party by virtue of the 1969 Act or this Act and statutory provisions which apply to the transferor by virtue of either Act.

(2) The provisions of paragraphs 8 to 10 shall have effect for the interpretation of agreements, statutory provisions and other instruments subject to the context, and shall not apply where the context otherwise requires.

Third parties affected by vesting provisions

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