Transport (London) Act 1969

7 Financial duty of Executive

(1) In respect of each accounting period of the Executive, the Executive shall charge to revenue account, and secure that any subsidiary of theirs so charges, all charges which are proper to be made to revenue account, including, in particular, proper provision for the depreciation or renewal of assets.

(2) Without prejudice to the power of the Executive to establish specific reserves, they shall establish and maintain a general reserve, and the Council may give to the Executive directions as to any matter relating to the establishment or management of that general reserve, or the carrying of sums to the credit thereof, or the application thereof; but no part of the moneys comprised in that general reserve shall be applied otherwise than for purposes of the Executive or a subsidiary of theirs.

(3) The Executive shall so perform their functions as to ensure so far as practicable—

(a) that at the end of each such period as may from time to time be agreed for the purpose of this paragraph between the Executive and the Council the aggregate of the net balance of the consolidated revenue account of the Executive and any subsidiaries of theirs and the net balance of the general reserve of the Executive is such (not being a deficit) as may be approved by the Council with respect to that period, and

(b) that, if at the end of any accounting period of the Executive the said aggregate shows a deficit, the amount properly available to meet charges to revenue account of the Executive and their subsidiaries in the next following accounting period of the Executive exceeds those charges by at least the amount of that deficit.

(4) The Executive may, with the consent of (the Council, make charges to capital account representing interest on expenditure of a capital nature (including expenditure of a capital nature incurred by the London Board before the vesting date), being interest for any period which ends on or before the end of the accounting period of the Executive in which the project or scheme to which the expenditure relates is in the opinion of the Council completed.

(5) The Executive shall from time to time, at such times, in such form and manner, and as respects such periods, as the Minister may after consultation with the Council require, submit to the Minister a statement approved by the Council of the Executive's proposals for expenditure on capital account by the Executive and any subsidiaries of theirs ; and—

(a) the Minister from time to time by notice in writing to the Executive may impose a limit on such expenditure by the Executive and their subsidiaries ; and

(b) the Executive shall secure that any such expenditure is restricted within that limit.

(6) The Council, in exercising or performing their functions under this Act, shall have regard—

(a) to the duty imposed on the Executive by subsection (3) of this section ; and

(b) to the provisions of subsection (5) of this section; and

(c) to any limit on capital expenditure by the Executive and their subsidiaries imposed by the Minister under the said subsection (5);

and where the requirements of paragraph (b) of the said subsection (3) fall to be complied with by the Executive, the Council shall take such action in the exercise and performance of their functions under this Act as appears to the Council to be necessary and appropriate in order to enable the Executive to comply with those requirements.

(7) For the purposes of subsections (1) and (3) of this section, the provisions of section 51(5) of the Act of 1968 shall be disregarded.