Industry Act 1975

3 Exercise by Board of powers to give selective financial assistance under Industry Act 1972. U.K.

(1) In any case where it appears to the Secretary of State that the powers conferred on him by section 7 or 8 of the M1 Industry Act 1972 (powers to give selective financial assistance) are exercisable and ought to be exercised, the Secretary of State, with the consent of the Treasury, may direct the Board to exercise them; and the Board shall not require the consent of the Treasury to the exercise of any such powers in pursuance of such a direction.

(2) It shall be the Board’s duty to give effect to any such direction.

(3) The Secretary of State shall consult the Board before giving any such direction.

(4) A direction may specify—

(a) the purpose for which and manner in which the Board are to exercise the powers.

(b) the amount of assistance that they are to give, and

(c) terms and conditions on which the assistance is to be given.

(5) Nothing in a subsequent direction shall relieve the Board of a contractual liability to which they are subject in consequence of an earlier direction.

(6) As soon as practicable after the Secretary of State has given a direction under this section he shall lay before each House of Parliament a statement specifying—

(a) the amount of assistance that the Board are to give in pursuance of the direction;

(b) how and to whom they are to give it; and

(c) where it is to be given under section 7 of the M2 Industry Act 1972, the assisted area in which the undertaking for which it is provided is or will be situated.

(7) The Board’s report for any accounting year shall specify any direction that has been given under this section during that year and give the information concerning it that is required to be specified in a statement under subsection (6) above.

(8) In any case where the Board are exercising the Secretary of State’s powers in pursuance of a direction under this section, sections 7(4) and 8(3)(a) of the M3 Industry Act 1972 (each of which requires the consent of a company to the acquisition of its shares or stock) shall be construed, notwithstanding the fact that the direction has been given, as requiring the Secretary of State (and not the Board) to obtain the consent.

(9) If the Board acquire property in pursuance of any such direction, the Secretary of State shall reimburse them the consideration given for the acquisition and the costs and expenses of and incidental to it.

(10) If they make a grant in pursuance of any such direction, he shall pay them a sum equal to the amount of the grant.

(11) If they make a loan in pursuance of any such direction, he shall make them a loan of the same amount and, subject to subsection (12) below, on such terms as he considers appropriate.

(12) The terms of a loan under subsection (11) above shall only require the Board to repay the loan when the debtor repays them the loan which they made him.

(13) If the Board give assistance in pursuance of any such direction by way of any form of insurance or guarantee, the Secretary of State shall assume a correlative liability towards them.

(14) Any reference in subsection (6) or (8) of section 8 of the Industry Act 1972 to sums paid or liabilities assumed by the Secretary of State under that section shall include a reference to sums paid or liabilities assumed by the Board in exercising, by virtue of this section, the powers conferred on the Secretary of State by that section.

(15) The sums to be deducted from the aggregate of the amounts mentioned in paragraphs (a) and (b) of section 8(6) of the Industry Act 1972 shall include, in any case where by virtue of this section the Board exercise the powers conferred on the Secretary of State by that section, any sum received by the Secretary of State from the Board by way of repayment of loans to them under subsection (11) above, or repayment of principal sums paid to meet a liability towards the Board assumed by the Secretary of State under subsection (13) above.

(16) The Secretary of State may pay any administrative expenses of the Board under this section.

(17) It is hereby declared that nothing in this section affects—

(a) the power conferred on the Secretary of State by subsection (7) of section 8 of the M4 Industry Act 1972 (power to increase the limit on financial assistance under that section), or

(b) the duty imposed on him by subsection (8) of that section (duty to obtain a resolution of the House of Commons for assistance in excess of £5 million),

or confers or imposes any corresponding power or duty on the Board.

(18) For the avoidance of doubt it is hereby declared, without prejudice to the generality of section 1(6) above, that powers exercised by the Board under this section are not exercised on behalf of the Crown or of any Government department.

Modifications etc. (not altering text)

C1 S. 3 restricted by Industry Act 1980 (c. 33, SIF 64), s. 8(1)

Marginal Citations

M1 1972 c. 63.

M2 1972 c. 63.

M3 1972 c. 63

M4 1972 c. 63.