Joint Committee on Statutory Instruments Twentieth Report



APPENDIX 2

Memorandum by the Department of the Environment, Transport and the Regions

LOCAL AUTHORITIES (CAPITAL FINANCE, APPROVED INVESTMENTS AND CONTRACTS) (AMENDMENT) REGULATIONS 2000 (S.I. 2000/1033)

  1. The Committee has asked for a Memorandum on the following point:

    "Given that the Regional Development Agencies Act 1998 provides for development agencies throughout England, explain how, in regulation 2, the amendment in terms of "any order, scheme or other instrument made under" that Act has effect only in relation to "the constituent bodies specified in the Greater London Authority Act 1999" (see the Explanatory Note)."

  2. The amendment made by regulation 2 is to regulation 24 of the Local Authorities (Capital Finance) Regulations 1997 (S.I. 1997/319). The amendment has the effect of excluding from section 48 of the Local Government and Housing Act 1989 ("the 1989 Act") a lease where a local authority becomes the lessee by virtue of an order, scheme, etc. under the Greater London Authority Act 1999 ("the 1999 Act") or the Regional Development Agencies Act 1998 ("the 1998 Act").

  3. Section 48 of the 1989 Act applies only to local authorities as defined in section 39 of that Act. The definition in section 39 includes a functional body under the 1999 Act (see the amendment in section 111(2) of the 1999 Act). The term "functional body" includes the London Development Agency (section 424(1) of the 1999 Act).

  4. The London Development Agency will be one of 9 regional development agencies when it is established on 3rd July 2000 on commencement of the Regional Development Agencies Act 1998 for the London region. But none of the other agencies is a "local authority" within section 39 of the 1989 Act.

  5. Accordingly, the only case in which a local authority (as defined in section 39 of the 1989 Act) will become a lessee by virtue of an order, scheme etc. under the 1998 Act is that of the London Development Agency. That position is reflected in the Explanatory Note.

15th May 2000


 
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