English Industrial Estates Corporation Act 1981

Financial provisions

4 Power for the Corporation to borrow

(1) The Corporation may, in accordance with directions under section 2(4) above given with the approval of the Treasury, borrow in any currency from the Commission of the European Communities or from the European Investment Bank, but subject to subsection (2) below.

(2) The aggregate amount outstanding in respect of the principal of sums borrowed under this section and section 13 of the [1980 c. 33.] Industry Act 1980 shall not exceed £30 million or such greater sum not exceeding £50 million as the Secretary of State may with the approval of the Treasury by order specify.

(3) The power to make orders under this section 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.

5 Treasury guarantees

(1) The Treasury may guarantee, in such manner and on such conditions as they think fit, the repayment of the principal of, and the payment of interest on, any sums borrowed under section 13 of the [1980 c. 33.] Industry Act 1980 or section 4 above.

(2) Immediately after a guarantee is given under this section, the Treasury shall lay a statement of the guarantee before each House of Parliament; and where any sum is issued for fulfilling a guarantee so given the Treasury shall, as soon as possible after the end of each financial year (beginning with that in which the sum is issued and ending with that in which all liability in respect of the principal of the sum and in respect of interest thereon is finally discharged) lay before each House of Parliament a statement relating to that sum.

(3) Any sums required by the Treasury for fulfilling a guarantee under this section shall be charged on and issued out of the Consolidated Fund.

(4) If any sums are issued in fulfilment of a guarantee given under this section, the Corporation shall make to the Treasury, at such times and in such manner as the Treasury may from time to time direct, payments of such amounts as the Treasury may so direct in or towards repayment of the sums so issued and payments of interest at such rate as the Treasury may so direct on what is outstanding for the time being in respect of sums so issued.

(5) Any sums received under subsection (4) above by the Treasury shall be paid into the Consolidated Fund.

6 Receipts and expenditure

(1) All receipts of the Corporation other than—

(a) receipts determined by the Corporation in accordance with any directions under section 2(4) above to be required to be retained for meeting expenses properly payable out of income, and

(b) receipts consisting of sums borrowed under section 13 of the Industry Act 1980 or section 4 above,

shall be paid over to the Secretary of State.

(2) The expenses of the Corporation incurred in the exercise of its functions under this Act, other than section 3 above, shall, except in so far as they are met out of the receipts of the Corporation, be defrayed by the Secretary of State.

7 Accounts and reports of the Corporation

(1) The Corporation shall keep proper accounts and proper records in relation to the accounts, and shall prepare in respect of each financial year a statement of accounts in such form as the Secretary of State, with the consent of the Treasury, may direct, being a form conforming with the best commercial standards.

(2) The accounts of the Corporation shall be audited by auditors to be appointed annually by the Secretary of State.

(3) No person shall be qualified to be appointed under subsection (2) above unless he is a member of one or more of the following bodies: —

(a) the Institute of Chartered Accountants in England and Wales;

(b) the Institute of Chartered Accountants of Scotland;

(c) the Association of Certified Accountants ;

(d) the Institute of Chartered Accountants in Ireland ;

(e) any other body of accountants established, in the United Kingdom and for the time being recognised by the Secretary of State for the purposes of section 161(1)(a) of the [1948 c. 38.] Companies Act 1948.

(4) So soon as the accounts of the Corporation for any financial year have been audited, the Corporation shall send to the Secretary of State a report on the discharge of its functions during that year and that report shall include a copy of the statement of accounts for that year together with a copy of any report made by the auditors on the accounts.

(5) In this section (as in section 5 above) " financial year " means the period of twelve months ending with 31st March.