The Police Act 1997 (Provisions in relation to the NCIS Service Authority) Order 1998

• (3) For the purpose of this Part a credit arrangement comes into being—

• (a) where paragraph (1)(a) above applies, at the time the Authority become the lessees;

• (b) where paragraph (1)(b) above applies, at the time the contract or, as the case may be, the later or latest of the contracts constituting the arrangement is entered into; and

• (c) where paragraph (1)(c) above applies, at the time the Authority enter into the transaction concerned or such other time as may be specified in the regulations concerned.

• (4) Where a contract constitutes, or two or more contracts taken together constitute, a credit arrangement, no account shall be taken under this article of any later contract which has the effect of varying the effect of the contract or, as the case may be, of the two or more contracts taken together.

• (5) A contract is not a credit arrangement to the extent that it is a contract under which the Authority borrows money; and a lease or contract of the Authority which is of the same description as a lease or contract of an authority which is excluded from section 48 of the 1989 Act by regulations made by the Secretary of State under that Act is not a credit arrangement for the purposes of this article.

• (6) It is immaterial for the purposes of this article whether the consideration given or received by the Authority under any contract is given to or received from the person by whom the land, goods, services or other benefit are in fact provided to the Authority; and for the purposes of this article, and any of the following provisions of this Part relating to credit arrangements, in any case where the consideration under a contract consists, in whole or in part,—

• (a) of an undertaking to do or to refrain from doing something at a future time (whether specified or not), or

• (b) of a right to do or to refrain from doing something at such a future time,

that consideration shall be regarded as neither given nor received until the undertaking is performed or, as the case may be, the right is exercised.

• (7) Where the consideration under a contract consists, in whole or in part, of an option, the estimate required to be made under paragraph (1)(b) above shall be made—

• (a) on the assumption that the option will be exercised or, if the option could be exercised in different ways, on the assumption that it will be exercised in each of those ways, and

• (b) on the assumption that the option will not be exercised, and if, on any of those assumptions, the contract would on those estimates constitute, alone or together with one or more other contracts, a credit arrangement, it shall be regarded as doing so regardless of whether the option is or is not in fact exercised; and in this paragraph “option” includes any right which is exercisable or not at the discretion of a party to the contract.

• (8) If an existing contract is varied and the variation does not in law itself constitute a contract, it shall be regarded as such for ,the purposes of this article and, accordingly, subject to paragraph (4) above, the existing contract and the variation shall be regarded as two contracts to be taken together.

• (9) A lease of any property is excluded from paragraph (1)(a) above if the Authority becomes the lessee by virtue of article 5 of the Police Act 1997 (Commencement No. 5 and Transitional Provisions) Order 1998¹⁶.

Initial and subsequent cost of credit arrangements

G11

• (1) Subject to paragraph (3) below, for the purposes of this Part the initial cost of a credit arrangement is the amount which, at the time the arrangement comes into being, the Authority estimates will be the aggregate of—

• (a) any consideration which falls to be given by the Authority under the arrangement in the financial year in which it comes into being; and

• (b) the value of the consideration falling to be given by the Authority under the arrangement in any subsequent financial year, determined in accordance with paragraph (2) below.

• (2) For each subsequent financial year referred to in paragraph (1)(b) above, the value of the consideration falling to be given in that year shall be determined by the formula—

$$x(1+r100)n$ where— “x” is the amount of the consideration which the Authority estimates will be given by it under the arrangement in that financial year; “r” is the percentage rate of discount prescribed for the financial year in which the arrangement came into being by regulations made by the Secretary of State for the purposes of section 49(2) of the 1989 Act; and “n” is the financial year in which the consideration falls to be given expressed as a year subsequent to the financial year in which the arrangement came into being (so that the first of the subsequent financial years is 1, the next financial year is 2, and so on).$

• (3) Paragraph (2) above does not apply to a credit arrangement of the Authority which is of the same description as a credit arrangement of an authority excluded from subsection (2) of section 49 of the 1989 Act by regulations made by the Secretary of State and, in relation to a credit arrangement which is so excluded, for the purposes of the application of this Part, the provision made in those regulations for the method of calculating the initial cost and the cost of the arrangement at any time shall apply.

• (4) Subject to paragraph (3) above and articles G13 below, the cost of a credit arrangement at any time after it has come into being shall be determined in accordance with paragraphs (1) and (2) above (in like manner as the determination of the initial cost) but on the basis of an estimate made at the time in question and leaving out of account any consideration which has been given by the Authority under the arrangement before that time.

• (5) In the application of this article to a credit arrangement which consists, in whole or in part, of a contract, the consideration under which falls within paragraph (7) of article G10 above,

• (a) if the credit arrangement exists only on the basis of one of the assumptions in that paragraph, the Authority shall make that assumption for the purposes of this article; and

• (b) if the credit arrangement would exist on the basis of any two or more of those assumptions, the Authority shall for the purposes of this article make whichever of those assumptions seems to it most likely.

Limits on powers to enter into credit arrangements

G12

• (1) The Authority may not enter into a credit arrangement for any purposeunless, if it incurred expenditure for that purpose, it would be expenditure for capital purposes, and any reference in the following provisions of this Part to “capital purposes”, in relation to a credit arrangement, shall be construed accordingly.

• (2) The Authority may not enter into a credit arrangement unless, at the time the arrangement comes into being, there is available to the Authority an amount of credit cover equal to the initial cost of the arrangement.

• (3) For the purposes of this article, each of the following amounts constitutes, in relation to a credit arrangement, an amount of credit cover available to the Authority,

• (a) an amount for the time being authorised by a credit approval issued to the Authority;

• (b) an amount of the usable part of capital receipts which, in accordance with a determination under article G21(2) below referring to the arrangement, is applied by the Authority as provision to meet credit liabilities; and

• (c) an amount which, in accordance with a determination of the Authority referring to the arrangement, is set aside from a revenue account by the Authority as provision to meet credit liabilities (being an amount over and above what they are required so to set aside by virtue of any other provision of this Part).

• (4) The Authority may not enter into a credit arrangement at any time if to do so would at that time cause the total referred to in article G6(1) above to exceed the aggregate credit limit for the time being applicable to the Authority by virtue of article G23 below.

• (5) A determination under paragraph (3)(c) above may not be made later than 30th September in the financial year following that in which falls the time when there comes into being the credit arrangement for which the credit cover is made available.

Variation of credit arrangements

G13

• (1) This article (other than paragraph (10) below) applies where the terms of a credit arrangement entered into by the Authority are varied (whether by the making of a new contract or otherwise) in such a way that, if the effect of the variation had been part of the arrangement at the time it came into being, the initial cost would have been greater than it was.

• (2) If, in the case of a credit arrangement falling within paragraph (5) of article G11 above,

• (a) the option in question is exercised in a way different from that which was assumed for the purposes of that article, or

• (b) it was assumed for the purposes of that article that the option in question would not be exercised but it is in fact exercised,

the exercise of the option shall be regarded for the purposes of this article as a variation of the terms of the credit arrangement; and if, in such a case, it was assumed for the purposes of article G11 above that the option would be exercised (or would be exercised in a particular way) and it subsequently appears to the Authority that it will not in fact be exercised, the option shall be assumed to have been abandoned and that abandonment shall be regarded for the purposes of this article as a variation of the terms of the credit arrangement.

• (3) The Authority may not at any time agree to such a variation as is mentioned in paragraph (1) above if to do so would mean that, immediately after the variation, the total referred to in article G6(1) above would exceed the aggregate credit limit for the time being applicable to the Authority by virtue of article G23 below.

• (4) Where a credit arrangement is varied as mentioned in paragraph (1) above, the Authority shall secure that there is available to it an amount of credit cover equal to whichever is the less of—

• (a) the difference between the total amount of consideration paid and payable under the arrangement disregarding the variation and the total amount of the consideration paid and payable under the arrangement as varied; and

• (b) the difference between the adjusted cost of the arrangement and the credit cover already made available in connection with the arrangement in accordance with article G12 above; and paragraphs (3) and (5) of article G12 above apply for the purposes of this article as they apply for the purposes of that article, except that, in paragraph (5), the reference to the time when the arrangement comes into being shall be construed as a reference to the time when it is varied.

• (5) Subject to paragraph (7) below, the adjusted cost of the arrangement referred to in paragraph (4)(b) above is the aggregate of—

• (a) the consideration which, in the financial year in which the arrangement is varied and in any earlier financial year, has been or falls to be given by the Authority; and

• (b) the amount which, at the time of the variation, the Authority estimates will be the cost of the arrangement, as varied, in each subsequent financial year determined as follows.

• (6) Subject to paragraph (7) below, for any subsequent financial year the cost of the arrangement as varied shall be determined by the formula in article G11(2) above but, for this purpose,

• “x” is the amount of the consideration which the Authority estimates will be given by it in that financial year under the arrangement as varied;

• “r” is the percentage rate of discount for the financial year in which the arrangement is varied, as prescribed for the purposes of article G11 above;

• “n” is the financial year in which the consideration falls to be given, expressed as a year subsequent to the financial year in which the arrangement is varied (so that the first of the subsequent financial years is 1, the next is 2, and so on).

• (7) Paragraph (5) and (6) above do not apply in relation to a credit arrangement as to which the method of calculating the initial cost and the cost at any time is provided for by virtue of article G11(3) above; and any adjusted cost or cost which would otherwise fall to be determined in accordance with those paragraphs shall be determined in accordance with the provisions applied by virtue of article G11(3) above.

• (8) Where a credit arrangement is varied as mentioned in paragraph (1) above, the cost of the arrangement at any time after the variation shall be determined in accordance with paragraphs (5) and (6) above (in like manner as the determination of the adjusted cost) but on the basis of an estimate made at the time in question and leaving out of account any consideration which has been given by the Authority under the arrangement before that time.

• (9) If, at any time after the terms of a credit arrangement have been varied as mentioned in paragraph (1) above, the terms of the arrangement are again varied, the preceding provisions of this article shall have effect with any necessary modifications and, in particular, as if,

• (a) the reference in paragraph (1) above to the time the arrangement came into being were a reference to the time at which the arrangement was varied (or, as the case may be, last varied) as mentioned in that paragraph;

• (b) the reference in that paragraph to the initial cost were a reference to the adjusted cost of the arrangement as so varied (or last varied); and

• (c) the reference in sub-paragraph (b) of paragraph (4) above to the credit cover already made available in accordance with article G12 above included a reference to any additional credit cover made available under that paragraph at the time of an earlier variation.

• (10) If at any time the terms of a credit arrangement are varied otherwise than as mentioned in paragraph (1) above, then, so far as the variation affects the consideration falling to be paid by the Authority in any year, account shall be taken of the variation in determining the cost of the arrangement at any subsequent time (under paragraph (8) above or paragraph (3) or paragraph (4) of article G11 above) but for other purposes the variation shall be disregarded.

Basic credit approvals

G14

• (1) Subject to paragraph (5) below, before the beginning of each financial year, the Secretary of State shall issue to the Authority, in the form of a notice in writing, a credit approval with respect to the Authority’s credit arrangements and expenditure for capital purposes during that year.

• (2) A credit approval issued under this article (in this Part referred to as a “basic credit approval”) may be nil but, subject to that, shall be expressed as an amount of money.

• (3) A basic credit approval shall have effect only for the financial year in respect of which it is issued and may be limited by excluding from the purposes for which the approval may be used capital purposes of a description specified in the approval.

• (4) Where by regulations made under section 53 of the 1989 Act the Secretary of State requires a basic credit approval to specify, directly or by reference to tables or other documents specified in the regulations, a period (referred to as the “amortisation period”) during which a local authority is required to set aside, from a revenue account, as provision to meet credit liabilities, amounts determined in accordance with the requirement then the like requirement shall apply to the Authority in relation to basic credit approvals issued under this article.

• (5) In relation to the financial year beginning 1st April 1998 the Secretary of State shall issue a basic credit approval in respect of that year before 7th April 1998.

Supplementary credit approvals

G15

• (1) Any Minister of the Crown may at any time issue to the Authority, in the form of a notice in writing, a credit approval (in this Part referred to as a “supplementary credit approval”).

• (2) A supplementary credit approval shall be expressed as an amount of money and shall be limited to credit arrangements and expenditure for capital purposes of a description specified in the approval (but, if the Minister concerned considers appropriate, all capital purposes may be so specified).

• (3) A supplementary credit approval shall have effect for such period as is specified in the approval; and where such an approval is issued not more than six months after the end of a financial year, it may specify a period which begins or begins and ends at any time during that financial year.

• (4) Subject to paragraph (5) below, paragraph (4) of article G14 applies in relation to a supplementary credit approval as it applies in relation to a basic credit approval.

• (5) In the case of a supplementary credit approval issued in respect of expenditure which is treated by the Authority as expenditure for capital purposes by virtue only of directions under article G2(6) above, the approval must specify an amortisation period and the maximum amortisation period which may be specified shall be seven years.

Criteria for issuing credit approvals

G16

• (1) In determining the amount of a basic credit approval or a supplementary credit approval to be issued by the Authority, the Secretary of State or other Minister may have regard, subject to the following provisions of this article, to such factors as appear to him to be appropriate.

• (2) Without prejudice to the generality of paragraph (1) above, the Secretary of State or other Minister may, in particular, have regard—

• (a) to the amount of any grants or contribution which it appears to him that the Authority has received and is likely to receive from any person in respect of expenditure incurred by the Authority or to be incurred by it before the expiry of the period for which the credit approval is to have effect; and

• (b) subject to paragraph (3) below, to the amount of capital receipts which it appears to him that the Authority has received, might reasonably be expected to have received or to receive or is likely to receive before the expiry of the period for which the credit approval is to have effect.

• (3) In determining the amount of credit approval, the Secretary of State or other Minister shall not take account of capital receipts—

• (a) to the extent that the Authority is required to set aside the receipts as provision for credit liabilities; or

• (b) to the extent that they are applied or paid as mentioned in paragraphs (6) and (7) of article G20 below.

• (4) In determining the amount of the basic credit approval or of a supplementary credit approval to be issued to the Authority in any financial year, the Secretary of State or other Minister shall not take account of the extent to which it appears to him that the Authority is or is likely to be in a position to finance expenditure for capital purposes from a revenue account.

Use of credit approvals by the Authority

G17

Where the Authority has received a basic credit approval or a supplementary credit approval, then, if it so determines the approval may be treated wholly or partly—

• (a) as authority not to charge to a revenue account an amount of expenditure which is defrayed during the period for which the approval has effect and which is for capital purposes to which the approval applies; or

• (b) as authority, within the period for which the approval has effect, to enter into or agree to a variation of a credit arrangement for purposes to which the approval applies.

Effect of certain capital grants on credit approvals

G18

• (1) In this article “specified capital grants” means grants, contributions and subsidies—

• (a) which are paid to the Authority in aid of its expenditure for capital purposes;

• (b) which are payments of the same type as payments specified for the purposes of section 57 of the 1989 Act by regulations made by the Secretary of State under that Act, in which case such payments shall be specified, to the same extent, for the purposes of this article.

• (2) If at any time the Authority receives a specified capital grant, such, if any, of the Authority’s credit approvals as are relevant to that grant shall, in accordance with the following provisions of this article, be reduced or, as the case may be, extinguished by deducting therefrom an amount equal to the grant.

• (3) For the purpose of this article, a credit approval is relevant to a specified capital grant i f —

• (a) the approval has effect at the time the grant is received or at any time thereafter; and

• (b) the purposes for which the approval may be used are or include the purposes towards expenditure on which the grant is made.

• (4) Subject to paragraph (5) below, where, by virtue of paragraph (2) above, a deduction is required in respect of a specified capital grant,—

• (a) the deduction shall be applied to the credit approvals which are relevant to the grant in the order in which those approvals were received;

• (b) subject to sub-paragraph (d) below, the reduction or extinguishment of any such approval shall be regarded as taking place when the grant is received;

• (c) if the amount of the deduction exceeds the total of the credit approvals which are relevant to the grant and were received before the grant, the excess shall be applied in reduction (or extinguishment) of credit approvals which are so relevant and are received later; and

• (d) any such reduction or extinguishment of a later credit approval as is referred to in sub-paragraph (c) above shall be regarded as taking place when the approval is received.

• (5) In any case where before the time when a specified capital grant is received by the Authority, the Authority has made a determination under article G17 above with respect to a credit approval which is relevant to that grant the credit approval shall not, to that extent, be taken into account under paragraphs (2) and (4) above; but, subject to that, the making of determination under article G17 above with respect to a credit approval shall not affect the operation of those paragraphs in relation to it.

Capital receipts

G19

• (1) For the purposes of this Part, the capital receipts of the Authority are, subject to the following provisions of this article those sums received by the Authority in respect of—

• (a) the disposal of any interest in an asset if, at the time of disposal, expenditure on the acquisition of the asset would be expenditure for capital purposes;

• (b) the disposal of any investment other than an investment which, at the time of disposal, is an approved investment;

• (c) the repayment of, or a payment in respect of, any grants or other financial assistance of such a description that, if the expenditure on the grant or assistance had been incurred at the time of the repayment or payment, it would have constituted expenditure for capital purposes; or

• (d) the repayment of the principal of an advance (not being an approved investment) made by the Authority for such a purpose that, if the advance had been made at the time of the repayment, expenditure incurred on it would have constituted expenditure for capital purposes;

and those sums become capital receipts at the time they are in fact received.

• (2) When an asset or investment falling within sub-paragraph (a) or sub-paragraph (b) of paragraph (1) above is disposed of and the whole or part of the purchase price is not received by the Authority at the time of the disposal, then, subject to paragraph (4) below, any interest payable to the Authority in respect of the whole or any part of the price shall not be regarded as a capital receipt.

• (3) Subject to paragraph (4) below, in the case of a disposal of an asset which consists of the grant, assignment or surrender of a leasehold interest in any land or the lease of any other asset, only the following are capital receipts,

• (a) any premium paid on the grant or assignment;

• (b) any consideration received in respect of the surrender;

• (c) any sum paid by way of rent more than three months before the beginning of the rental period to which it relates;

• (d) any sum paid by way of rent in respect of a rental period which exceeds one year; and

• (e) so much of any other sum paid by way of rent as, in accordance with directions given by the Secretary of State, falls to be treated as a capital receipt.

• (4) Where the Secretary of State has provided, by regulations made under section 58 of the 1989 Act, that the whole or such part as may be determined under the regulations of a sum received by a local authority and which apart from that section, would not be a capital receipt shall be such a receipt and the whole or such part as may be so determined of a sum which, apart from that section, would be a capital receipt shall not be such a receipt, then, for the purposes of the application of this Part, any such sum received by the Authority shall, or as the case may be, shall not be treated as a capital receipt; and references in those Regulations to local government enactments shall be interpreted as references to the equivalent provisions of, or as applied by, this Order.

The reserved part of capital receipts

G20

• (1) At the time when the Authority receives a capital receipt, a part of that receipt (in this Part referred to as “the reserved part”) shall be set aside by the Authority as provision to meet credit liabilities.

• (2) Subject to the following provisions of this article, the reserved part of a capital receipt shall be 50 per cent.

• (3) Where the Secretary of State by regulations under section 59 of the 1989 Act alters the percentage which is for the time being the reserved part of any capital receipt of an authority or provides that the amount which is the reserved part of any capital receipt of an authority shall be determined in accordance with the regulations for the purposes of that section then for the purposes of the application of this article the reserved part of a capital receipt shall be as provided by those regulations or determined in accordance with those regulations; and references in those regulations to local government enactments shall be interpreted as references to the equivalent provisions of, or as applied by, this Order.

• (4) Where the Secretary of State by regulation provides that capital receipts of a description specified in the regulations shall be treated for the purposes of section 59 of the 1989 Act as reduced by an amount determined in accordance with the regulations then for the purposes of this article capital receipts of the specified description of the Authority shall be treated as reduced by such amount as they would be if they were captial receipts of an authority determined in accordance with the regulations; and references in those regulations to local government enactments shall be interpreted as references to the equivalent provisions of, or as applied by, this Order.

• (5) Without prejudice to subsection (3) above, in any case where—

• (a) the consent of the Secretary of State is required for a disposal of a dwelling-house or any other property, and

• (b) the Secretary of State gives a direction under this sub-paragraph with respect to a capital receipt in respect of that disposal,

subsection (2) above shall have effect in relation to that capital receipt as if it provided that the reserved part of the receipt were a percentage thereof specified in the direction or, according as the direction provides, an amount determined in accordance with the direction.

• (6) Paragraph (1) above does not apply to a capital receipt received by the Authority as trustee of a trust fund which is held for charitable purposes.

• (7) Where the Authority receives a capital receipt in respect of an asset, investment, grant or other financial assistance which was originally acquired or made by the Authority wholly or partly out of moneys provided by Parliament on terms which require, or enable a Minister of the Crown to require, the payment of any sum to such a Minister on or by reference to the disposal of the asset or investment or the repayment of the grant or assistance, the amount of the capital receipt shall be treated for the purposes of the preceding provisions of this article as reduced by the sum which appears to the Authority to be so payable.

The usable balance of capital receipts

G21

• (1) This article applies to the balance of any capital receipts received by the Authority after deducting—

• (a) the reserved part of each such receipt; and

• (b) any sum which, by virtue of paragraph (7) of article G20 above falls to be deducted in determining the amount of any receipt for the purposes of the preceding provisions of that paragraph;

but nothing in this article applies to a capital receipt which falls within article G20(6) above.

• (2) The balance referred to in paragraph (1) above (in this Part referred to as “the usable part” of the Authority’s capital receipts) shall be applied by the Authority, accordingly as it determines, in one of the following ways, or partly in one way and partly in the other,—

• (a) to meet expenditure incurred for capital purposes; or

• (b) as provision to meet credit liabilities;

and, subject to paragraph (3) below, may be so applied in the financial year in which the receipts are received or in any later financial year.

• (3) A determination by the Authority under paragraph (2) above as to the manner in which the usable part of its capital receipts are to be applied may not be made later than 30th September in the financial year following that in which, in accordance with the determination, the receipts are to be applied.

• (4) For the purposes of this Part, to the extent that the usable part of the Authority’s capital receipts are applied as mentioned in paragraph (2)(a) above, it shall be taken to be so applied at the time when the expenditure in question is defrayed.

• (5) For the purposes of this Part, to the extent that the usable part of the Authority’s capital receipts are applied as mentioned in paragraph (2)(b) above, it shall be taken to be so applied—

• (a) if it is used as an amount of credit cover as mentioned in article G12(3)(b) above, when the credit arrangement in question is entered into or varied; and

• (b) in any other case, on the last day of the financial year in which (pursuant to the Authority’s determination) it is so applied.

Capital receipts not wholly in money paid to the Authority

G22

• (1) This paragraph applies where—

• (a) the whole or part of the consideration received by the Authority for a disposal falling within article G19(1) above either is not in money or consists of money which, at the request or with the agreement of the Authority concerned, is paid otherwise than to the Authority; or

• (b) the right of the Authority to receive such a repayment or payment as is referred to in article G19(1) above is assigned or waived for a consideration which, in whole or in part, is not in money or which, at the request or with the agreement of the Authority, is paid otherwise than to the Authority; or

• (c) on a disposal falling within article G19(3) above, if it had been in money paid to the Authority, it would have been a capital receipt.

• (2) Where this article applies in relation to any consideration, there shall be determined the amount which would have been the capital receipt if the consideration had been wholly in money paid to the Authority; and subject to paragraph (3) below, the amount so determined is in this article referred to as “the notional capital receipt”.

• (3) From the amount which, apart from this paragraph, would be the notional capital receipt in relation to a disposal, repayment or payment there shall be deducted any amount of money that was paid or is payable to the Authority in respect of that disposal, repayment or payment and in respect of which article G20 above actually applies or will actually apply when the payment is received.

• (4) Where consideration to which this article applies is received in respect of a disposal, repayment or payment, the Authority shall set aside, at the time of the disposal or the assignment or waiver of the repayment or payment, and as provision to meet credit liabilities, an amount which, except in so far as directions given by the Secretary of State otherwise provide, shall be equal to that which, under article G20 above, would be the reserved part of the notional capital receipt.

• (5) The amount falling to be set aside by the Authority under paragraph (4) above shall be so set aside—

• (a) from the usable part of the Authority’s capital receipts; or

• (b) from a revenue account of the Authority.

• (6) Where the Secretary of State provides by regulations made under section 61 of the 1989 Act that—

• (a) consideration which is not in money, which is received by a local authority and which is of a description specified in the regulations, or

• (b) consideration which is in money, which is paid otherwise than to a local authority and which is of a description specified in the regulations,

shall be treated for the purposes of subsections (2), (4) and (5) of that section as consideration to which that section applies, then consideration which is not in money which is received by the Authority and is of the description specified in the regulations and consideration which is not in money which is paid otherwise than to the Authority and is of the description specified in the regulations shall be treated for the purposes of paragraphs (2), (4) and (5) above as consideration to which this article applies and, in relation to any such consideration, paragraph (4) above shall apply with such modifications as are specified in the regulations, and references in those regulations to local government enactments shall be interpreted as references to the equivalent provision of, or as applied by, this Order.

Aggregate credit limit

G23

• (1) There shall be an aggregate credit limit for the Authority which, subject to paragraph (2) below, at any time shall be the total at that time of—

• (a) the Authority’s temporary revenue borrowing limit;

• (b) the Authority’s temporary capital borrowing limit;

• (c) the Authority’s credit ceiling, as determined under Schedule 3 to this Order; and

• (d) the excess of the Authority’s approved investments and cash over its usable capital receipts;

but the reference in sub-paragraph (d) above to approved investments and cash does not include investments or cash held for the purposes of such a trust fund as is referred to in sub-paragraph (h) of paragraph (2) of article G4 above.

• (2) On an application made by the Authority, the Secretary of State may direct that, for any period specified in the direction, the amount which, apart from the direction, would be the Authority’s aggregate credit limit at any time during that period shall be increased by an amount specified in the direction with respect to that period; and any increase specified in a direction under this paragraph may be expressed to have effect subject to compliance with such terms and conditions as may be so specified.

• (3) Subject to paragraph (4) below, the Authority’s temporary revenue borrowing limit at any time is whichever is the less of—

• (a) the total sums which at that time remain to be received by the Authority and which, as income, fall or will fall to be credited to a revenue account of the Authority for the current financial year; and

• (b) the aggregate of—

• (i) the total sums which, up to and including that time (whether in the current or a previous financial year), the Authority has disbursed in respect of expenditure which falls to be charged to a revenue account of the Authority for the current financial year; and

• (ii) any relevant arrears in respect of which provision has been or is to be charged to such a revenue account or which have been or are to be written off and charged to such a revenue account;

and for the purposes of sub-paragraph (b) (ii) above “relevant arrears” are amounts in respect) b of income which remain to be received by the Authority and which, as income, fall to be credited to a revenue account of the Authority for the financial year beginning two years before the beginning of the current financial year.

• (4) At any time in a financial year the amount which, apart from this paragraph, would be an Authority’s temporary revenue borrowing limit shall be increased by the addition of any amount in respect of the immediately preceding financial year, being whichever is the less of—

• (a) the excess (if any) of the total sums which, up to and including that time, the Authority have disbursed in respect of expenditure falling to be charged to a revenue account of the Authority for that preceding year over the total sums which, up to and including that time, the Authority have received in respect of income falling to be credited to such a revenue account; and

• (b) the total sums which at that time remain to be received by the Authority and which, as income, fall or will fall to be credited to a revenue account of the Authority for that preceding year.

• (5) The Authority’s temporary capital borrowing limit at any time is so much of the expenditure defrayed by the Authority for capital purposes in the eighteeen months ending at that time as is due to be, but at that time has not been, re-imbursed by any other person, excluding expenditure which is to be re-imbursed or met out of grants from a Community institution; and for the purpose it is immaterial whether the re-imbursement is due as a result of an obligation arising by statute, contract or otherwise or is to take the form of a grant or other obligation voluntarily undertaken.

• (6) If at any time the Authority’s usable capital receipts exceed its approved investments and cash referred to in subparagraph (d) of paragraph (1) above, the amount taken into account under that sub-paragraph shall be a negative amount.

• (7) Where an amount taken into account under sub-paragraph (c) or sub-paragraph (d) of paragraph (1) above is a negative amount, it shall be a deduction in determining the total referred to in the sub-paragraph.

• (8) Any reference in this article to the Authority’s usable capital receipts at any time is a reference to the usable part of the Authority’s capital receipts so far as they have not been applied before that time.

Duty to set certain amounts aside as provision to meet credit liabilities

G24

• (1) Without prejudice to any other provision of this Part under which the Authority is required or authorised to set aside any amount as provision to meet credit liabilities, in each financial year the Authority shall, by virtue of this article, set aside, from such revenue account or accounts as the Authority thinks fit, as provision to meet credit liabilities, an amount determined by the Authority, being not less than the minimum revenue provision for that year referred to in Part II of Schedule 3 to this Order.

• (2) Where the Authority receives any sum by way of grant from a Community insitution towards the Authority’s expenditure on capital purposes, it shall at the time the sum is received, set aside an amount equal to that sum as provision to meet credit liabilities.

• (3) A determination under paragraph (1) above shall be made not later than 30th September in the financial year following that to which the determination relates.

Use of amounts set aside to meet credit liabilities

G25

• (1) Amounts for the time being set aside by the Authority (whether voluntarily or pursuant to a requirement under this Part) as provision to meet credit liabilities may, subject to paragraph (2) below, be applied only for one or more of the following purposes—

• (a) to meet any liability of the Authority in respect of money borrowed by the Authority, other than a liability in respect of interest;

• (b) to meet any liability of the Authority in respect of credit arrangements, other than those excluded under paragraph 2(2) of Schedule 3 to this Order; and

• (c) where a credit approval has been used as authority not to charge particular expenditure to a revenue account, to meet that expenditure.

• (2) Subject to the following provisions of this article if, on the date which is the relevant date for any financial year, the Authority’s credit ceiling as determined under Part I of Schedule 3 is a negative amount, any such amount as is referred to in paragraph (1) above in that financial year may be applied by the Authority for the same purposes as the purposes it may be applied by an authority by virtue of regulations made by the Secretary of State under section 64 of the 1989 Act, so long as any conditions specified in those regulations are complied with.

• (3) The aggregate of the amounts which may be applied by the Authority in accordance with paragraph (2) above in any financial year shall not exceed the amount by which the Authority’s credit ceiling on the relevant date is less than nil.

• (4) References in paragraphs (2) and (3) above to the relevant date shall be construed as follows—

• (a) for the financial year beginning on 1st April 1998, the relevant date is that date; and

• (b) for any subsequent financial year, the relevant date is the last day of the preceding financial year.

Information

G26

• (1) The Secretary of State may serve on the Authority a notice requiring the Authority to supply to him such information as is specified in the notice and is required by him—

• (a) for the purpose of deciding whether to exercise his powers, and how to perform his functions, under this Part; or

• (b) for the purpose of ascertaining whether the Authority have acted, or are likely to act, in accordance with this Part; or

• (c) for the purpose of assisting the formulation of government economic policies;

but no information shall be required for the purpose specified in paragraph (c) above unless it relates to, or to plans or proposals about, the finances and expenditure of the Authority or of any company in which the Authority has an interest.

• (2) If the information specified in a notice under this article is in the possession or under the control of the Authority, the Authority shall supply the information required in such form and manner, and at such time, as is specified in the notice and, if the notice so requires, the information shall be certified (according as is specified in the notice) in one or both of the following ways,

• (a) by the chief finance officer of the Authority, within the meaning of article F3 above, or by such other person as may be specified in the notice; and

• (b) under arrangements made by the Audit Commission for Local Authorities in England and Wales.

• (3) If the Authority fails to comply with paragraph (2) above, the Secretary of State may decide—

• (a) whether to exercise his powers, and how to perform his functions, under this Part, or

• (b) whether the Authority have acted, or are likely to act, in accordance with this Part,

on the basis of such assumptions and estimates as he thinks fit.

• (4) In deciding—

• (a) whether to exercise his powers, and how to perform his functions, under this Part, or

• (b) whether the Authority has acted, or is likely to act, in accordance with this Part,

the Secretary of State may also take into account any other information available to him, whatever its source and whether or not obtained under a provision contained in or made under this or any other enactment.

Interpretation of Part G

G27

• (1) In this Part—

• (a) “approved investments” means investments approved for the purposes of Part IV of the 1989 Act by regulations made by the Secretary of State;

• (b) “local government enactment” means an enactment listed in Schedule 6 to the Police Act 1997 and regulations made under those enactments; and

• (c) “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975¹⁷.

• (2) For the purposes of this Part, the Authority—

• (a) incurs a liability in respect of a payment at the time when it becomes unconditionally liable to make the payment; and

• (b) discharges a liability in respect of a payment at the time when it makes the actual payment, whether or not it has at that time become unconditionally liable to do so.

• (3) In relation to a credit arrangement,—

• (a) any reference in this Part to consideration given or to be given by the Authority under the arrangement does not include a reference to any consideration which is given before the time and arrangement comes into being (as defined in article G10(3) above); and

• (b) any reference in this Part to a liability of the Authority under the arrangement does not include a reference to a liability which is met by the making of a payment before that time.

• (4) In relation to the Authority, references in this Part to proper practices are references to those accounting practices—

• (a) which the Authority is required to follow by virtue of any enactment; or

• (b) which, whether by reference to any generally recognised published code or otherwise, are regarded as proper accounting practices to be followed in the keeping of the accounts of the Authority;

but, in the event of any conflict in any respect between the practices falling within sub-paragraph (a) above and those falling within sub-paragraph (b) above, only those falling within sub-paragraph (a) above are to be regarded as proper practices.

• (5) For the avoidance of doubt, any reference in this Part to borrowing by the Authority does not include a reference to the temporary use by the Authority of money forming part of a particular fund of the Authority for a purpose other than that of the fund.

PART H — ACCOUNTS AND AUDIT

H

Subject to article J13 below, Part III of the Local Government Finance Act 1982¹⁸ shall apply to the accounts of the Authority as if the Authority were a body listed in section 12(2) of that Act and, for the purposes of the application of that Part—

• (a) references to any body whose accounts are required to be audited in accordance with that Part shall be construed as references to the Authority;

• (b) references to section 100B of the Local Government Act 1972 shall be construed as references to article C2 of this Order;

• (c) references to Part VA of that Act shall be construed as references to Part C of this Order;

• (d) references to sections 114 and 115 of the Local Government Finance Act 1988 shall be construed as references to articles F3 and F4 respectively of this Order;

• (e) section 28F shall apply to a report or document which relates to the Service Authority for the National Criminal Intelligence Service as it applies to a report or document which relates to the Service Authority for the National Crime Squad.

PART I — LAND

Acquisition of land by agreement by the Authority

I1

• (1) For the purposes of any of its functions the Authority may acquire by agreement any land.

• (2) The Authority may acquire by agreement any land for any purpose for which it is authorised by this Order or any other enactment to acquire land, notwithstanding that the land is not immediately required for that purpose; and, until it is required for the purpose for which it was acquired, any land acquired under this paragraph may be used for the purpose of any of the Authority’s functions.

• (3) References in the foregoing provisions of this article to acquisition by agreement are references to acquisition for money or money’s worth, as purchaser or lessee.

Disposal of land by the Authority

I2

• (1) Subject to the following provisions of this article, the Authority may dispose of land held by it in any manner it wishes.

• (2) Except with the consent of the Secretary of State, the Authority shall not dispose of land under this article, otherwise than by way of a short tenancy, for a consideration less than the best that can reasonably be obtained.

• (3) For the purposes of this article a disposal of land is a disposal by way of a short tenancy if it consists—

• (a) of the grant of a term not exceeding seven years, or

• (b) of the assignment of a term which at the date of the assignment has not more than seven years to run.

Consents to land transactions by the Authority and protection of purchasers

I3

• (1) Where the consent of the Secretary of State is required under article 12 above, that consent may be given—

• (a) in relation to any particular transaction or transactions or in relation to a particular class of transactions; and

• (b) either unconditionally or subject to such conditions as the Secretary of State may specify (either generally, or in relation to any particular transaction or transactions or class of transactions).

• (2) Where under the foregoing provisions of this Part or under any other enactment the Authority purport to acquire, appropriate or dispose of land, then—

• (a) in favour of any person claiming under the Authority, the acquisition, appropriation or disposal so purporting to be made shall not be invalid by reason that any consent of the Secretary of State which is required thereto has not been given or that any requirement as to advertisement or consideration of objections has not been complied with, and

• (b) a person dealing with the Authority or a person claiming under the Authority shall not be concerned to see or enquire whether any such consent has been given or whether any such requirement has been complied with.

• (3) A decision of the Secretary of State under this article shall be final.

Savings

I4

• (1) Nothing in the foregoing provisions of this Part shall authorise the disposal of any land by the Authority in breach of any trust, covenant or agreement which is binding upon it.

• (2) Nothing in the foregoing provisions of this Part shall affect the operation of section 36 of the Charities Act 1993¹⁹ (restrictions on dispositions of charity land) and, in particular none of those provisions shall be treated as giving any such authority for a transaction as is referred to in section 36(9)(a) of that Act (certain statutorily authorised transactions not to require the sanction of the Charity Commissioners).

Registration of land holdings

I5

• (1) The Secretary of State may compile and maintain a register, in such form as he may think fit, of land which satisfies the conditions specified in paragraph (2) below.

• (2) The conditions mentioned in paragraph (1) above are—

• (a) that a freehold or leasehold interest in the land is owned by the Authority;

• (b) that in the opinion of the Secretary of State the land is not being used or not being sufficiently used for the purposes of the performance of the Authority’s functions or of carrying on its undertaking.

• (3) The Secretary of State may enter on the register any such land satisfying the conditions specified in paragraph (2) above as he may think fit.

Public access to information

I6

• (1) The Secretary of State shall send to the Authority—

• (a) a copy of the register maintained under article 15; and

• (b) such amendments to it as he may from time to time consider appropriate.

• (2) It shall be the duty of the Authority when amendments to the register are sent under paragraph (1)(b) above to incorporate the amendments in its copy of the register.

• (3) A copy of a register sent to the Authority under this article shall be available at the Authority’s principal office for inspection by any member of the public at all reasonable hours.

• (4) If any member of the public requires the Authority to supply him with a copy of any information contained in such a copy of a register, the Authority shall supply him with a copy of that information on payment of such reasonable charge for making it as the Authority may determine.

Information about entries

I7

• (1) Where land is entered on a register under article I5(3) above, the Secretary of State shall as soon as is reasonably practicable after entering the land send a copy of the information included in the register in relation to the land to the Authority.

• (2) Where land is entered on a register under article I5(3) above and the Secretary of State amends the information included in the register in relation to the land, he shall as soon as is reasonably practicable after amending the information send a copy of the amended information to the Authority, if it appears from the register that the Authority owns a freehold or leasehold interest in the land.

• (3) The fact that the Secretary of State must send anything to the Authority under article 16 above does not displace any duty of his to send anything to the Authority under paragraph (1) or (2) above.

• (4) Paragraph (5) below applies where a copy sent under paragraph (1) or (2) above has been received by the Authority.

• (5) If at any time the Authority becomes aware that any information in the only or latest copy received by it is or has become inaccurate, it shall as soon as is reasonably practicable after becoming so aware inform the Secretary of State that the information is inaccurate and give him (so far as it is able) the corrected information.

• (6) Paragraph (5) above does not apply if, when the Authority becomes so aware, the land concerned is no longer entered on a register under article I5(3) above.

Secretary of State’s power to require information

I8

The Secretary of State may direct the Authority to inform him whether it holds a freehold or leasehold interest in land which is specified, or is of a description specified, in the direction.

Disposal of land at direction of Secretary of State

I9

• (1) The Secretary of State may direct the Authority to take steps for the disposal of the interest held by it in any land which for the time being satisfies the conditions specified in article 15(2) above or any lesser interest in such land being, in either case, steps which it is necessary to take to dispose of the interest and which it is in its power to take.

• (2) A direction under this article may specify the steps to be taken for the disposal of an interest in land and the terms and conditions on which an offer to dispose of it is to be made.

• (3) A direction under this article may include provision that no disposal of an interest to which the direction relates shall, while the direction remains unrevoked, be made in favour of a person or body who—

• (a) is specified, or is of a description specified, in the direction, and

• (b) is at the date the disposal is proposed to be made associated with the body to whom the direction is given.

• (4) A direction under this article may be varied or revoked by a further direction.

• (5) The power to give directions conferred by this article is in addition to and not in derogation from any such power conferred by any other enactment.

• (6) In this article and article 110 below references to the disposal of an interest in land include references to the grant of an interest in land.

• (7) In paragraph (3) above references to a disposal of an interest include references to a contract to dispose of an interest, and references to making a disposal include references to entering into such a contract.

• (8) For the purposes of paragraph (3) above a person is associated with a body if (but only if)—

• (a) he is a member of the body or of a subsidiary of the body, or

• (b) he is a nominee of the body or of a subsidiary of the body.

• (9) For the purposes of paragraph (3) above a body is associated with another body if (but only if)—

• (a) the other body, or a subsidiary of the other body, is a member of it,

• (b) any of its members is also a member of the other body or a subsidiary of the other body, or

• (c) any of its members is a nominee of the other body or of a subsidiary of the other body.

• (10) In paragraphs (7) and (8) above “subsidiary” has the same meaning as in section 736(1) of the Companies Act 1985²⁰.

Directions to dispose of land-supplementary

I10

• (1) Before giving a direction to the Authority under article 19 above, the Secretary of State shall give it notice of his proposal to give the direction and of its proposed contents.

• (2) The Authority, on receipt of a notice under paragraph (1) above may make representations to the Secretary of State as to why the proposed direction should not be given or as to its proposed contents.

• (3) If the Authority does not make such representations within a period of 42 days from the date of the notice, or within such longer period as the Secretary of State may in any particular case allow, the Secretary of State may give the direction as proposed.

• (4) If the Authority has made representations under paragraph (2) above, the Secretary of State may not give a direction unless he is satisfied that the interest to which the direction would relate can be disposed of in the manner in which and on the terms and conditions on which he proposes that it shall be disposed of without serious detriment to the performance of the Authority’s functions or the carrying on of its undertaking.

• (5) The Secretary of State need not give notice under paragraph (1) above as regards a further direction revoking a previous direction given under article 19 above.

• (6) The Secretary of State need not give notice under paragraph (1) above as regards a further direction varying a previous direction given under article 19 above if—

• (a) the variation consists only of one which omits part of the land to which the previous direction relates, or

• (b) the variation is stated in the further direction to consist only of one which is made to take account of a representation of the Authority.

• (7) The contents of a direction under article 19 above may differ from its proposed contents contained in a notice given under paragraph (1) above if—

• (a) the difference consists only of a variation which omits part of the land referred to in the proposed contents, or

• (b) the difference is stated in the direction to consist only of a variation which is made to take account of a representation of the Authority;

and the words “as proposed” in paragraph (3) above shall have effect accordingly.

• (8) Where the Secretary of State by order substitutes a period specified in the order for the period of 42 days specified in subsection (3) of section 99 of the Local Government, Planning and Land Act 1980²¹ that substituted period shall also be substituted for the period of 42 days (or such other period as may have been earlier substituted) under paragraph (3) above.

Power of entry

I11

• (1) A person duly authorised in writing by the Secretary of State may at any reasonable time enter any land for the purpose of helping the Secretary of State to decide whether to give a direction under article 19 above in relation to the land.

• (2) A person may not enter land under this article unless at least 21 clear days' notice in writing of the intended entry has been given to every person who is an owner or occupier.

• (3) In this article “owner”, in relation to any land, means a person, other than a mortgagee not in possession, who is for the time being entitled to dispose of the fee simple of the land, whether in possession or in reversion, and includes also a person holding, or entitled to the rents and profits of, the land under a lease or agreement.

PART J — STAFF, OFFICERS AND MEMBERS

Prohibition of political publicity

J1

• (1) The Authority shall not publish any material which, in whole or in part, appears to be designed to affect public support for a political party.

• (2) In determining whether material falls within the prohibition regard shall be had to the content and style of the material, the time and other circumstances of publication and the likely effect on those to whom it is directed and, in particular, to the following matters—

• (a) whether the material refers to a political party or to persons identified with a political party or promotes or opposes a point of view on a question of political controversy which is identifiable as the view of one political party and not of another:

• (b) whether the material is part of a campaign, the effect which the campaign appears to be designed to achieve.

• (3) The Authority shall not give financial or other assistance to a person for the publication of material which the Authority is prohibited by this article from publishing itself.

Codes of recommended practice as regards publicity

J2

Where the Secretary of State issues a code of recommended practice as regards the content, style, distribution and costs of a local authority’s publicity, under section 4 of the Local Government Act 1986²², the Authority shall have regard to the provisions of any such code in coming to any decision on publicity.

Separate account of expenditure on publicity

J3

• (1) The Authority shall keep a separate account of its expenditure on publicity.

• (2) Any person interested may at any reasonable time and without payment inspect the account and make copies of it or any part of it.

• (3) A person having custody of the account who intentionally obstructs a person in the exercise of the rights conferred by paragraph (2) commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

• (4) Where the Secretary of State by order provides that, sub-section (1) of section 5 of the Local Government Act 1986 does not apply to publicity or expenditure by a local authority of a prescribed description then paragraph (1) above shall not apply to expenditure of that description by the Authority.

Interpretation and application of articles J1 to 53

J4

• (1) References in articles J1 to 53 above to publicity or related expressions, shall be construed in accordance with the following provisions:

• “the Authority” includes any committee, of the Authority;

• “publicity”, “publish” and “publication” refer to any communication, in whatever form, addressed to the public at large or to a section of the public.

• (2) Articles J1 to 53 above apply to any such publicity expressly or impliedly authorised by any statutory provision, including article K1 below (subsidiary powers of the Authority).

• (3) Nothing in articles J1 to 53 above shall be construed as applying to anything done by the Authority in the discharge of its duties under Part C of this Order (access to meetings and documents of the Authority and its committees).

Disqualification and political restriction of certain officers and staff

J5

The terms of appointment or conditions of employment of every person holding a politically restricted post under the Authority (including persons appointed to such posts before the coming into force of this article) shall be deemed to incorporate such requirements for restricting his political activities as are prescribed for the purposes of subsection (5) of section 1(5) of the 1989 Act by regulations made by the Secretary of State.

Politically restricted posts

J6

• (1) The following persons are to be regarded for the purposes of this Part as holding politically restricted posts under the Authority—

• (a) the person designated under article 58 below as the head of the Authority’s paid service;

• (b) the statutory chief officer;

• (c) a non-statutory chief officer;

• (d) a deputy chief officer;

• (e) the monitoring officer designated under article J9 below; and

• (f) any person not falling within sub-paragraphs (a) to (e) above whose post is for the time being specified by the Authority in a list maintained in accordance with paragraph (2) below and any directions under article 57 below, or is within article C7 above (list of officers to whom powers are delegated).

• (2) It shall be the duty of the Authority to prepare and maintain a list of such of the following posts under the Authority, namely—

• (a) the full time posts the annual rate of remuneration in respect of which is or exceeds £19,500 or such higher amount as may have been specified in or determined under regulations made by the Secretary of State under section 2(2) of the 1989 Act;

• (b) the part time posts the annual rate of remuneration in respect of which would be or exceed that amount if they were full time posts in respect of which remuneration were paid at the same rate as for the part time post; and

• (c) posts not falling within sub-paragraph (a) or (b) above the duties of which appear to the Authority to fall within paragraph (3) below,

as are not posts for the time being exempted under article 57 below, posts for the time being listed under article C7 above or posts of a description specified by the Secretary of State for the purposes of this article.

• (3) The duties of a post under the Authority fall within this paragraph if they consist in or involve one or both of the following, that is to say—

• (a) giving advice on a regular basis to the Authority itself, to any committee or sub-committee of the Authority;

• (b) speaking on behalf of the Authority on a regular basis to journalists or broadcasters.

• (4) It shall be the duty of the Authority to deposit the first list prepared under paragraph (2) above with its proper officer before the expiry of the period of two months beginning with the coming into force of this Order; and it shall also be its duty, on subsequently making any modifications of that list, to deposit a revised list with that officer.

• (5) It shall be the duty of the Authority in performing its duties under this article to have regard to such general advice as may be given by virtue of paragraph (1)(b) of article 57 below by a person carrying out functions under that article.

• (6) In this article “the statutory chief officer” means the officer having responsibility for the purposes of article F1 above, for the administration of the Authority’s financial affairs.

• (7) In this article “non-statutory chief officer” means, subject to the following provisions of this article—

• (a) a person for whom the head of the Authority’s paid service is directly responsible;

• (b) a person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to the head of the Authority’s paid service; and

• (c) any person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to the Authority itself or any committee or sub-committee of the Authority.

• (8) In this article “deputy chief officer” means, subject to the following provisions of this article, a person who, as respects all or most of the duties of his post, is required to report directly or is directly accountable to one or more of the statutory or non-statutory chief officers.

• (9) A person whose duties are solely secretarial or clerical or are otherwise in the nature of support services shall not be regarded as a non-statutory chief officer or a deputy chief officer for the purposes of this Part.

Grant and supervision of exemptions from political restriction

J7

• (1) The person appointed by the Secretary of State to carry out the functions in relation to political restriction under section 3 of the 1989 Act shall—

• (a) carry out those functions in relation to paragraphs (2) to (7) below; and

• (b) give such general advice with respect to the determination of questions arising by virtue of article J6(2) above as that person considers appropriate after consulting such representatives of local government and such organisations appearing to him to represent employees in local government as he considers appropriate.

• (2) A person appointed under section 3 of the 1989 Act—

• (a) shall consider any application for exemption from political restriction which is made to him, in respect of any post under the Authority, by the holder for the time being of that post; and

• (b) may, on the application of any person or otherwise, give directions to the Authority requiring it to include a post in the list maintained by the Authority under article J6(2) above.

• (3) An application shall not be made by virtue of paragraph (2)(a) above in respect of a post under the Authority except where—

• (a) the Authority has specified or is proposing to specify the post in the list maintained by the Authority under article J6(2) above; and

• (b) in the case of a post falling within sub-paragraph (a) or (b) of that paragraph, the Authority has certified whether or not, in its opinion, the duties of the post fall within paragraph (3) of that article;

and it shall be the duty of the Authority to give a certificate for the purposes of sub-paragraph (b) above in relation to any post if it is requested to do so by the holder of that post.

• (4) If, on an application made by virtue of paragraph (2)(a) above in respect of any post under the Authority, the person to whom the application is made is satisfied that the duties of the post do not fall within article J6(3) above, that person shall direct—

• (a) that, for so long as the direction has effect in accordance with its terms, the post is not to be regarded as a politically restricted post; and

• (b) that, accordingly, the post is not to be specified in the list maintained by the Authority under article J6(2) above or, as the case may be, is to be removed from that list.

• (5) A person appointed under section 3 of the 1989 Act shall not give a direction under paragraph (2)(b) above in respect of any post under the Authority except where he is satisfied that the post—

• (a) is a post the duties of which fall within article J6(3) above; and

• (b) is neither included in any list maintained by the Authority in accordance with article C7 or article J6(2) above, nor of a description specified for the purposes of article J6(2)(a) above.

• (6) It shall be the duty of the Authority—

• (a) to give a person appointed under section 3 of the 1989 Act all such information as that person may reasonably require for the purpose of carrying out his functions under this article;