Industry Act 1980

The National Enterprise Board and the Scottish and Welsh Development Agencies U.K.

1 Functions of the Board and Agencies. U.K.

(1) In section 2(2) of the M1 Industry Act 1975—

(a) in paragraph (b) the words “reorganisation or” and paragraphs (c) and (d) shall cease to have effect; and

(b) after paragraph (e) there shall be added—

“(f) promoting the private ownership of interest in industrial undertakings by the disposal of securities and other property held by the Board or any of their subsidiaries.”

[F1 (2) In section 2 of the M2 Scottish Development Agency Act 1975—

(a) in subsection (1), in paragraph (a), at the end there shall be added the words “, including in that connection the provision, maintenance or safeguarding of employment”;

(b) in subsection (2), after paragraph (i) there shall be added—

“(j) promoting the private ownership of interests in industrial undertakings by the disposal of securities and other property held by the Agency or of their subsidiaries.”; and

(c) subsection (1)(b), in subsection (2)(c) the word “reorganisation”, and subsection (2)(f) shall cease to have effect.]

(3) In section 1 of the M3 Welsh Development Agency Act 1975—

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

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

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

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

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

Textual Amendments

F1 Ss. 1(2), 4(2) repealed (1.4.1991) by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

Modifications etc. (not altering text)

C1 The text of ss. 1, 4, 5(1), 6, 8(2), 9, and Schedule 2 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals prior to 1.2.1991.

Marginal Citations

M1 1975 c. 68.

M2 1975 c. 69.

M3 1975 c. 70.

2 Transfer of property to Secretary of State. U.K.

(1) Without prejudice to any power otherwise conferred on them and notwithstanding anything in any other enactment, the National Enterprise Board, the Scottish Development Agency and the Welsh Development Agency may transfer securities or other property held by them, and may procure the transfer of securities or other property held by any of their subsidiaries, to the Secretary of State or to a nominee of his; and the power of the Secretary of State to give directions—

(a) to the National Enterprise Board under section 7 of the M4 Industry Act 1975,

(b) to the Scottish Development Agency under section 4 of the M5 Scottish Development Agency Act 1975, and

(c) to the Welsh Development Agency under section 1(9) of the Welsh Development Agency Act 1975,

shall extend to the giving of directions as to the making and terms of a transfer.

(2) Stamp duty shall not be chargeable on any instrument which is certified to the Commissioners of Inland Revenue by the Secretary of State as having been made or executed for the purpose of the transfer of property to him or a nominee of his from, or from any subsidiary of, the National Enterprise Board, the Scottish Development Agency or the Welsh Development Agency.

(3) There may be defrayed out of money provided by Parliament any expenditure incurred by the Secretary of State in respect of the acquisition of property by him or a nominee of his from, or from a subsidiary of, the National Enterprise Board, the Scottish Development Agency or the Welsh Development Agency; and any sums received by him on the disposal of property so acquired shall be paid into the Consolidated Fund.

(4) In this section “subsidiary” means a subsidiary as defined by [F2 section 736 of the Companies Act 1985] or [F3 Article 4 of the Companies (Northern Ireland) Order 1986].

Textual Amendments

F2 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F3 Words substituted by S.I. 1986/1035, art. 23, Sch. 1 Pt. II

Modifications etc. (not altering text)

C2 S. 2(1)–(3), in so far as relating to the Scottish Development Agency Act 1975 or to the Scottish Development Agency, repealed (1.4.1991) (E.W.S) by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

Marginal Citations

M4 1975 c. 68.

M5 1975 c. 69.

3 Finance for companies transferred to Secretary of State. U.K.

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

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

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

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

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

(3) The Secretary of State shall not determine a rate of interest in respect of a loan under subsection (2)(b) above which is lower than the lowest rate for the time being determined by the Treasury under section 5 of the M6 National Loans Act 1968 in respect of comparable loans out of the National Loans Fund.

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

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

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

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

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

(5) As soon as practicable after the holding of any general meeting of a company to which this section applies, the Secretary of State shall lay before each House of Parliament a copy of any accounts which, in accordance with any requirement of the [F4 Companies Act 1985], are laid before the company at that meeting, and of any documents which are annexed or attached to any such accounts.

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

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

• “company” means a company within the meaning of the [F4 Companies Act 1985] or the [F5 Companies (Northern Ireland) Order 1986],

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

• “shares” includes stock,

• “subsidiary” means a subsidiary as defined by [F4 section 736 of the said Act of 1985] or [F5 Article 4 of the said Order of 1986],

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

Textual Amendments

F4 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F5 Words substituted by S.I. 1986/1035, art. 23, Sch. 1 Pt. II

Marginal Citations

M6 1968 c. 13.

4 Public dividend capital. U.K.

(1) In paragraph 5 of Schedule 2 to the M7 Industry Act 1975, after sub-paragraph (3) there shall be inserted—

“(3A) The Board may with the agreement of the Secretary of State, and shall if the Secretary of State with the approval of the Treasury requires them to do so, make payments to the Secretary of State in reduction of the public dividend capital of the Board; and any sums received by the Secretary of State in pursuance of this sub-paragraph shall be paid into the Consolidated Fund.”

[F6 (2) In paragraph 1 of Schedule 2 to the M8 Scottish Development Agency Act 1975, after sub-paragraph (3) there shall be inserted—

“(3A) The Agency may with the agreement of the Secretary of State, and shall if the Secretary of State with the approval of the Treasury requires them to do so, make payments to the Secretary of State in reduction of the public dividend capital of the Agency; and any sums received by the Secretary of State in pursuance of this sub-paragraph shall be paid into the Consolidated Fund.”]

(3) In paragraph 1 of Schedule 3 to the M9 Welsh Development Agency Act 1975, after sub-paragraph (3) there shall be inserted—

“(3A) The Agency may with the agreement of the Secretary of State, and shall if the Secretary of State with the approval of the Treasury requires them to do so, make payments to the Secretary of State in reduction of the public dividend capital of the Agency; and any sums received by the Secretary of State in pursuance of this sub-paragraph shall be paid into the Consolidated Fund.”

Textual Amendments

F6 Ss. 1(2), 4(2) repealed (1.4.1991) by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

Modifications etc. (not altering text)

C3 The text of ss. 1, 4, 5(1), 6, 8(2), 9, and Schedule 2 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals prior to 1.2.1991.

Marginal Citations

M7 1975 c. 68.

M8 1975 c. 69.

M9 1975 c. 70.

5 Financial limits. U.K.

(1) In. . . F7 , section 13(3) of the Scottish Development Agency Act 1975 and section 18(3) of the Welsh Development Agency Act 1975 (which set limits on the amounts outstanding in respect of certain borrowings and other liabilities of. . . F7 the Scottish and Welsh Development Agencies and their subsidiaries, but enable the Secretary of State to raise the limits) the words from “but” to the end shall cease to have effect.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

[F9 (3) The financial limit for the purposes of section 3 of this Act is £4,400 million, but the Secretary of State may by order made with the consent of the Treasury provide for the limit specified in this subsection to be increased or further increased to an amount not exceeding £5,250 million.]

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

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

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

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

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

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

(7) The sums paid by the Secretary of State under this Act in respect of the acquisition from the National Enterprise Board of shares in any company shall be treated for the purposes of subsection (6) above as reduced by an amount equal to so much of the debt of the Board assumed under paragraph 6(1) of Schedule 2 to the M10 Industry Act 1975 on their acquisition of securities of the company as was, immediately before section 3 of this Act applied to the company, treated by virtue of paragraph 5(2) of that Schedule as part of the Board’s public dividend capital.

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

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

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

Textual Amendments

F7 Words repealed by Industry Act 1981 (c. 6, SIF 64), Sch.

F8 S. 5(2) repealed by Industry Act 1981 (c. 6, SIF 64), s. 7(3), Sch.

F9 S. 5(3) substituted for s. 5(3)(4) by Industry Act 1981 (c. 6, SIF 64), s. 1(3)

Modifications etc. (not altering text)

C4 S. 5(1) repealed (1.4.1991) (E.W.S) in so far as relating to the Scottish Development Agency Act 1975 or to the Scottish Development Agency, by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

C5 The text of ss. 1, 4, 5(1), 6, 8(2), 9, and Schedule 2 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals prior to 1.2.1991.

Marginal Citations

M10 1975 c. 68.

6 Restrictions on powers to acquire shares U.K.

(1) In section 10(1)(b) of the Industry Act 1975 (which restricts the acquisition of share capital by the Board and their subsidiaries where the value of the consideration, together with that for share capital previously acquired, would exceed £10,000.000) for the words “previously acquired, would exceed £10,000,000” there shall be substituted the words “already held by the Board or any of their subsidiaries, would exceed £5,000,000”.

[F10 (2) In section 14(1)(b) of the M11 Scottish Development Agency Act 1975 (which makes similar provision in relation to the Scottish Development Agency, but with a limit of £2,000,000) for the words “previously acquired, would exceed £2,000,000” there shall be substituted the words “already held by the Agency or any of their subsidiaries, would exceed £1,000,000”.]

(3) In section 20(1)(b) of the M12 Welsh Development Agency Act 1975 (which makes similar provision in relation to the Welsh Development Agency, with a limit of £2,000,000) for the words “previously acquired, would exceed £2 million” there shall be substituted the words “already held by the Agency or any of their subsidiaries, would exceed £1,000,000”.

(4) Section 10(3) of the M13 Industry Act 1975, section 14(3) of the Scottish Development Agency Act 1975 and section 20(3) of the Welsh Development Agency Act 1975 (savings for powers to form bodies corporate) shall cease to have effect.

Textual Amendments

F10 S. 6(2) repealed (1.4.1991) (E.W.S.) by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

Modifications etc. (not altering text)

C6 The text of ss. 1, 4, 5(1), 6, 8(2), 9, and Schedule 2 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals prior to 1.2.1991.

C7 S. 6(4) repealed (1.4.1991) (E.W.S.) in so far as relating to the Scottish Development Agency Act 1975 or to the Scottish Development Agency, by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

Marginal Citations

M11 1975 c. 69.

M12 1975 c. 70.

M13 1975 c. 68.

7 Members and chief executive of the Board. U.K.

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

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

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

(2) In Part Ill of Schedule 1 to the M14 House of Commons Disqualification Act 1975 and in Part Ill of Schedule 1 to the M15 Northern Ireland Assembly Disqualification Act 1975 there shall be inserted, at the appropriate place in alphabetical order— “ Chief executive of the National Enterprise Board. ”.

Modifications etc. (not altering text)

C8 The text of ss. 7, 19, 21(1) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals prior to 1.2.1991.

Marginal Citations

M14 1975 c. 24.

M15 1975 c. 25.

8 Selective financial assistance under the Industry Act 1972. U.K.

(1) The Secretary of State shall not after the commencement of this Act give any direction under section 3 of the Industry Act 1975 (exercise by the National Enterprise Board of powers to give selective financial assistance under the M16 Industry Act 1972) other than a direction varying or revoking an earlier direction.

(2) Section 5 of the Scottish Development Agency Act 1975 and section 12 of the Welsh Development Agency Act 1975 (which make corresponding provision in relation to the Scottish and Welsh Development Agencies) shall cease to have effect.

Modifications etc. (not altering text)

C9 The text of ss. 1, 4, 5(1), 6, 8(2), 9, and Schedule 2 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals prior to 1.2.1991.

C10 S. 8(2) repealed (1.4.1991) (E.W.S.) in so far as relating to the Scottish Development Agency Act 1975 or to the Scottish Development Agency, by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

Marginal Citations

M16 1972 c. 63.

9 Overseas aid. U.K.

Section 4 of the M17 Industry Act, 1975, section 18 of the M18 Scottish Development Agency Act 1975 and section 3 of the M19 Welsh Development Agency Act 1975 shall cease to have effect.

Modifications etc. (not altering text)

C11 The text of ss. 1, 4, 5(1), 6, 8(2), 9, and Schedule 2 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals prior to 1.2.1991.

C12 S. 9 repealed (1.4.1991) (E.W.S.) in so far as relating to the Scottish Development Agency Act 1975 or to the Scottish Development Agency by Enterprise and New Towns (Scotland) Act 1990 (c. 35, SIF 64), s. 38(2), Sch. 5 Pt. I

Marginal Citations

M17 1975 c. 68.

M18 1975 c. 69.

M19 1975 c. 70.