Greater London Authority Bill - continued        House of Lords
PART III, FINANCIAL PROVISIONS - continued
Credit approvals - continued

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Amortisation.     101. - (1) Where regulations made by the Secretary of State so require, an aggregate credit approval or an additional credit approval shall specify, directly or by reference to tables or other documents specified in the approval, an amortisation period.
 
      (2) In this section "amortisation period" means a period during which a relevant authority is required to set aside, from a revenue account, as provision to meet credit liabilities, such amounts as may be appropriately determined.
 
      (3) If regulations under subsection (1) above so provide, an aggregate credit approval or an additional credit approval may specify-
 
 
    (a) different amortisation periods in relation to the use of the approval in respect of credit arrangements and expenditure for capital purposes of different descriptions; or
 
    (b) different amortisation periods in relation to different amounts specified in the approval.
      (4) Subsection (1) above does not apply in relation to a category B credit approval issued in respect of expenditure which is treated as expenditure for capital purposes of a relevant authority by virtue only of directions under section 40(6) of the Local Government and Housing Act 1989.
 
      (5) But the Secretary of State or other Minister issuing a category B credit approval may specify in the approval, directly or by reference to tables or other documents specified in the approval, an amortisation period in respect of such expenditure as is mentioned in subsection (4) above.
 
      (6) In subsection (2) above, "appropriately determined" means-
 
 
    (a) in its application for the purposes of subsection (1) above, determined in accordance with regulations under that subsection; and
 
    (b) in its application for the purposes of subsection (5) above, determined in accordance with the approval.
      (7) In this section-
 
 
    "category B credit approval" means an aggregate credit approval or an additional credit approval to the extent that the approval consists of a category B amount;
 
    "relevant authority", in the case of any credit approval, means an authority-
 
      (a) for which a category A or B amount is specified in the approval, or
 
      (b) to which a category C or D amount is allocated under the approval.
Criteria for issuing credit approvals.     102. - (1) In determining any amount to be specified in an aggregate credit approval or an additional credit approval, the Secretary of State or other Minister may have regard, subject to the following provisions of this section, to such factors as appear to him to be appropriate.
 
      (2) Without prejudice to the generality of subsection (1) above, the Secretary of State or other Minister may, in particular, have regard-
 
 
    (a) to the amount of any grants or contributions which it appears to him that a relevant authority has received and is likely to receive from any person in respect of expenditure incurred by the authority or to be incurred by the authority before the expiry of the period for which the credit approval is to have effect; and
 
    (b) subject to subsection (3) below, to the amount of capital receipts which it appears to him that any relevant authority has received, might reasonably be expected to have received or to receive or is likely to receive before the expiry of the period for which the credit approval is to have effect.
      (3) In determining any amount to be specified in an aggregate credit approval or an additional credit approval, the Secretary of State or other Minister shall not take account of capital receipts-
 
 
    (a) to the extent that a relevant authority is required to set aside the receipts as provision for credit liabilities;
 
    (b) to the extent that they are received as mentioned in subsection (7) of section 59 of the Local Government and Housing Act 1989; or
 
    (c) to the extent that their amount falls to be treated as reduced for any purpose under subsection (8) or (9) of that section.
      (4) In determining any amount to be specified in the aggregate credit approval or in an additional credit approval to be issued to the Mayor in any financial year, the Secretary of State or other Minister shall not take account of the extent to which it appears to him that any relevant authority is, or is likely to be, in a position to finance expenditure for capital purposes from a revenue account.
 
      (5) In this section "relevant authority", in the case of any credit approval, means-
 
 
    (a) as respects a category A or B amount, the authority for which the amount is to be specified, and
 
    (b) as respects a category C or D amount, any authority to which an allocation from that amount may be made by the Mayor in accordance with the approval.
Part IV of 1989 Act and credit approvals under this Chapter.     103. - (1) Where a category A or B amount is specified for an authority in an aggregate credit approval or an additional credit approval, so much of the approval as relates to that amount shall be treated for the purposes of Part IV of the Local Government and Housing Act 1989 (other than sections 53 to 55) as a credit approval issued to that authority under that Part.
 
      (2) Where an allocation from a category C or D amount specified in an aggregate credit approval or an additional credit approval is made by the Mayor-
 
 
    (a) to the Authority, or
 
    (b) to a functional body,
  the notice of the allocation (read with so much of the credit approval as relates to the allocation) shall be treated for the purposes of Part IV of the Local Government and Housing Act 1989 (other than sections 53 to 55) as a credit approval issued under that Part to the Authority or, as the case may be, to the functional body.
 
      (3) Section 56 of the Local Government and Housing Act 1989 (use of basic credit approvals and supplementary credit approvals) shall apply in relation to a credit approval treated by virtue of subsection (1) or (2) above as issued under Part IV of that Act as it applies in relation to a basic credit approval or a supplementary credit approval.
 
      (4) Any reference in this Chapter to the use of an aggregate credit approval or an additional credit approval is a reference to the use, under Part IV of the Local Government and Housing Act 1989 or any other enactment, of any credit approvals treated as issued under that Part by virtue of the application of subsection (1) or (2) above in relation to the aggregate credit approval or, as the case may be, the additional credit approval (and related expressions shall be construed accordingly).
 
 
Capital receipts and mutual grants
Power to redistribute capital receipts of functional bodies.     104. - (1) The Secretary of State may make regulations for and in connection with conferring on the Mayor power to direct any functional body to pay to the Authority such percentage as may be specified in the direction of so much of the usable part of the body's capital receipts as may be so specified.
 
      (2) The power conferred on the Mayor must be exercisable only for the purpose of enabling the amount paid under such a direction (the "relevant amount") to be applied towards meeting expenditure for capital purposes of another functional body or of the Authority ("the assisted body").
 
      (3) The provision that may be made by regulations under subsection (1) above includes provision-
 
 
    (a) with respect to the percentage or maximum percentage that may be specified in a direction;
 
    (b) with respect to the portion of the usable part of a functional body's capital receipts in respect of which a direction may be issued;
 
    (c) requiring a direction to be complied with before the expiration of a prescribed period;
 
    (d) requiring the Mayor, within such time or in such manner as may be prescribed, to notify the functional bodies of decisions taken with respect to the exercise of powers conferred by the regulations;
 
    (e) for and in connection with enabling the Mayor to permit the relevant amount to be applied towards meeting expenditure for capital purposes of the assisted body generally or to require it to be applied towards meeting only such expenditure of a particular description;
 
    (f) for and in connection with treating the whole or a prescribed part of the relevant amount as added to the usable part of the capital receipts of the assisted body, for the purposes of Part IV of the Local Government and Housing Act 1989;
 
    (g) for and in connection with requiring an assisted body to apply the relevant amount only for the purposes for which it was paid to the body.
      (4) In this section "prescribed" means prescribed by regulations.
 
Capital grants between Authority and functional bodies.     105. - (1) The Authority may pay grants towards meeting expenditure for capital purposes incurred or to be incurred by a functional body for the purposes of, or in connection with, the discharge of the functions of that body.
 
      (2) A functional body may, with the consent of the Mayor, pay a grant towards meeting expenditure for capital purposes incurred or to be incurred by another functional body, or by the Authority, for the purposes of, or in connection with, the discharge of the functions of the body to which the grant is made.
 
      (3) A grant under this section must not be made subject to any limitation in respect of the expenditure for capital purposes which it may be applied towards meeting.
 
      (4) A grant under this section must be applied by the recipient body solely towards meeting expenditure for capital purposes incurred or to be incurred by that body for the purposes of, or in connection with, the discharge of its functions.
 
Revenue grants between Authority and functional bodies.     106. - (1) The Authority may pay grants towards meeting expenditure, other than expenditure for capital purposes, incurred or to be incurred by a functional body for the purposes of, or in connection with, the discharge of the functions of that body.
 
      (2) A functional body may, with the consent of the Mayor, pay a grant towards meeting expenditure, other than expenditure for capital purposes, incurred or to be incurred by another functional body, or by the Authority, for the purposes of, or in connection with, the discharge of the functions of the body to which the grant is made.
 
      (3) A grant under this section must not be made subject to any limitation in respect of the expenditure which it may be applied towards meeting (other than that the expenditure must not be expenditure for capital purposes).
 
      (4) A grant under this section must be applied by the recipient body solely towards meeting expenditure incurred or to be incurred by that body for the purposes of, or in connection with, the discharge of its functions, other than expenditure for capital purposes.
 
 
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