The Tyne and Wear Residuary Body (Winding Up) Order 1988

PART II TRANSFER OF PROPERTY, FUNCTIONS, RIGHTS AND LIABILITIES

Transfer of property, etc.

2.—(1) On the transfer date —

(a) any immovable property of the Residuary Body which is the subject of an agreement for its disposal or option for its purchase, and any interest of the Residuary Body in any mortgage, shall vest in South Tyneside; and

(b) all other property of the Residuary Body (whether movable or immovable) shall vest in the local council.

(2) All rights and liabilities of the Residuary Body acquired or incurred, and all records relating exclusively to property transferred by paragraph (1) shall vest in the council to which it is so transferred.

(3) In each financial year commencing with the financial year beginning 1st April 1988 South Tyneside shall pay to each of the other local councils the appropriate proportion of an amount equal to South Tyneside`s net revenue receipts from any property or interest vested by paragraph (1)(a), and net capital receipts from the repayment of principal in respect of any interest so vested or the disposal of any such interest or of any property so vested.

(4) In the preceding paragraph, “net revenue receipts” means revenue receipts in the year in question after deducting the aggregate amount of expenditure incurred by South Tyneside in that year in connection with property vested by paragraph (1)(a); and “net capital receipts” means capital receipts in the year in question after deducting any amount by which net revenue receipts are a negative amount.

(5) The balance of the net capital and revenue receipts shall be retained by South Tyneside.

Transfer of monies

3.—(1) Immediately before the transfer date, the Residuary Body shall set aside from their revenue balances the sum of #1 million (“the special fund”).

(2) On the transfer date the Residuary Body shall transfer to South Tyneside from the special fund the sum of #800,000 which South Tyneside shall credit to a fund established by them under paragraph 16 of Schedule 13 to the Local Government Act 1972(1) which shall be applied only for making (otherwise than by virtue of article 2(1) of the Local Government Reorganisation (Designated Councils) (Pensions) Order 1986(2)) payments in respect of contractual rights saved by section 53 of the 1985 Act or payments under —

(a) Part VI of the Employment Protection (Consolidation) Act 1978(3),

(b) section 1 of, or an order under section 2 of, the Pensions (Increase) Act 1971(4),

(c) an order under section 59 of the Social Security Pensions Act 1975(5),

(d) the Local Government Reorganisation (Compensation) Regulations 1986(6),

(e) the Local Government Reorganisation (Reduction of Redundancy Payment Cases) Scheme 1986(7).

(3) On the transfer date all monies held by the Residuary Body and all sums standing to the credit of that Body on any account (other than the special fund) shall vest in South Tyneside.

(4) On or before 31st March 1989 South Tyneside shall pay to each of the other local councils the appropriate capital and appropriate revenue sums as defined in paragraph (5).

(5) In paragraph (4) —

“appropriate capital sum” means a sum equal to the appropriate proportion of the aggregate amount of capital money held by the Residuary Body or standing to its credit on any account immediately before the transfer date;

“appropriate revenue sum” means a sum equal to the appropriate proportion of the aggregate of all other sums which immediately before the transfer date are held by, or stand to the credit of, the Residuary Body on any account other than the special fund.

(6) The amounts reflecting the difference between the amounts vested by paragraph (3) and the amounts which fall to be paid to other local councils by paragraph (4) shall be retained by South Tyneside as their share of the vested amounts.

(7) In this article “capital money” means monies described in article 2(2)(a) of the Local Government Reorganisation (Capital Money) (Metropolitan Counties) Order 1986(8).

Compensation and superannuation matters

4.—(1) All the functions of the Residuary Body mentioned in paragraph (2) so far as they relate to any contract of employment with the abolished council or a contract of employment with the Residuary Body terminating on or before the transfer date and all rights and liabilities of that Body which arise from any such contract shall on the transfer date become functions of, or vest in, South Tyneside.

(2) The functions referred to in paragraph (1) are —

(a) functions in relation to the payment of compensation for loss of employment or loss or diminution of emoluments; and

(b) functions conferred by regulation 3(1) of the Local Government Superannuation (Miscellaneous Provisions) Regulations 1986(9).

(3) All the functions of the Residuary Body under the Pensions (Increase) Act 1971 or paragraph 3(2) of Schedule 13 to the 1985 Act shall on the transfer date become functions of South Tyneside.

(4) Regulation 3(3) of the Regulations mentioned in paragraph (2)(b) above shall apply to the exercise by South Tyneside of any discretionary function transferred by paragraph (1) as if references to the appropriate residuary body were references to that council.

(5) Regulation 12 (apportionment of certain costs) of the Local Government Reorganisation (Compensation) Regulations 1986 shall not apply to any costs which are defrayed by virtue of any provision of this Order.

Block Grant

5.—(1) Any payment which by virtue of any provision of Part VI of the 1980 Act would but for this Order have fallen, by virtue of section 81 of the 1985 Act, to be made by or to the Residuary Body, shall be made by or to the local councils in the appropriate proportions.

(2) For the purposes of paragraph (1) —

(a) “the appropriate proportions” shall be construed in accordance with article 1(3)(a); and

(b) the population of an area shall be taken to be the number estimated by the Registrar General and certified by him to the Secretary of State by reference —

(i) in the case of any payment attributable to the financial year ended 31st March 1985, 30th June 1982; and

(ii) in the case of any payment attributable to the financial year ended 31st March 1986, 30th June 1983.

(3) Any information, notice or request under section 65, 66 or 67 of the 1980 Act(10) which but for this article would have fallen to be given or made by or to the Residuary Body shall be given or made by or to South Tyneside.

Transfer of rights and liabilities

6.—(1) On the transfer date all rights and liabilities of the Residuary Body which are not transferred by the preceding provisions of this Order shall vest in South Tyneside; but shall be held for the benefit of, or discharged on behalf of, all the local councils.

(2) Liabilities in respect of money borrowed by the Residuary Body (both as respects principal and interest) transferred by paragraph (1) shall be charged on the revenues of South Tyneside.

Consequential financial provisions

7.—(1) Any net capital receipts paid to a local council pursuant to article 2(3) and the balance of net capital receipts retained by South Tyneside pursuant to article 2(5) shall be treated for the purposes of Part VIII (capital expenditure) of the 1980 Act as a capital receipt of the council.

(2) Any sum paid to a local council as an appropriate capital sum under article 3(4) or retained by South Tyneside pursuant to article 3(6) and reflecting capital monies shall be treated for the purposes of the said Part VIII as a capital receipt of the council.

(3) Regulations under sections 72(3)(d) and 75 of the 1980 Act shall apply to amounts to be treated by virtue of this article as capital receipts of a local council for the purposes of Part VIII as they apply to other receipts of the council.

(4) Sums received by South Tyneside in respect of the disposal of assets vested in that council by article 2(1)(a) of this Order or in respect of the repayment of grants or advances of a capital nature the right to the repayment of which is vested in that council by this Order shall not be capital receipts for the purposes of Part VIII of the 1980 Act.

8.  Any net capital receipts or appropriate capital sum paid to a local council pursuant to article 2(3) or 3(4), and the balance of net capital receipts and the appropriate capital sum retained by South Tyneside pursuant to articles 2(5) and 3(6), shall be applied for any purpose for which capital money received by a local council on the disposal of land under Part VII of the Local Government Act 1972 may properly be applied.

Consequential administrative arrangements

9.—(1) On or before 31st December 1988 and 31st October in any later year, South Tyneside shall notify every other local council of its estimate of the amount to be paid to that council in the current financial year by way of net capital receipts under article 2(3) or an appropriate capital sum under article 3(4) and of the classes of disposals and repayments to which that amount relates.

(2) On making any payment of net capital receipts in pursuance of article 2(3) or of an appropriate capital sum in pursuance of article 3(4) South Tyneside shall notify the council of the classes of disposals and repayments to which the payment relates.

(3) For the purposes of paragraphs (1) and (2), disposals and repayments shall be classified in accordance with Schedule 1 to the Local Government (Prescribed Expenditure) (Consolidation and Amendment) Regulations 1987(11).

(4) When South Tyneside send a notification under paragraph (1) or (2) to another council they shall send a copy to the Secretary of State and in the case of a notification under paragraph (2) advise the Secretary of State of the amount paid to that council.

(5) South Tyneside shall —

(a) before the relevant date mentioned in paragraph (1) provide the Secretary of State with an estimate of the amount they anticipate they will retain in the current financial year by way of capital monies and of the classes of disposals and repayments to which that amount relates; and

(b) notify the Secretary of State when they retain any amount following a distribution of capital monies under paragraph (2) of the amount retained and the classes of disposals and repayments to which that amount relates.

(6) The Local Government Reorganisation (Capital Money) (Metropolitan Counties) Order 1986 shall cease to have effect in relation to the county on the transfer date.

(1)

1972 c. 70.

(2)

S.I. 1986/96.

(3)

1978 c. 44.

(4)

1971 c. 56.

(5)

1975 c. 60.

(6)

S.I. 1986/151.

(7)

Made under section 59(3) of the Local Government Act 1985.

(8)

S.I. 1986/2063.

(9)

S.I. 1986/380.

(10)

Section 65 was substituted by paragraph 4 of Schedule 4 to the Local Government Finance Act 1987 (c. 6).

(11)

S.I. 1987/2186.