The Local Government Reorganisation (Wales) (Capital Finance) Order 1995

• Citation: S.I. 1995/1041
• Sections: 8

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Local Government Reorganisation (Wales) (Capital Finance) Order 1995 and shall come into force on 4th May 1995.

(2) In this Order—

“the 1989 Act” means the Local Government and Housing Act 1989 ;

“the 1994 Act” means the Local Government (Wales) Act 1994;

“new authority” means a county or county borough council established under the 1994 Act; and

“the transitional period” means the period commencing on 4th May 1995 and ending on 31st March 1996.

Section 2 Application of Part IV of the 1989 Act

(1) Section 44(6) of the 1989 Act shall not apply to an agreement to borrow money entered into in contravention of section 51 of the 1994 Act.

(2) In relation to the transitional period, the other provisions of Part IV of, and Schedule 3 to, the 1989 Act shall apply to a new authority with the modifications specified in the Schedule to this Order.

Section 3 Application of the Local Authorities (Capital Finance) Regulations

(1) In relation to the transitional period, the Local Authorities (Capital Finance) Regulations 1990 shall apply to a new authority as if regulations 23, 24, 25 and 26 of, and Schedules 4 and 5 to, those Regulations were omitted.

(2) Part II of the Schedule to the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990 shall be amended by the insertion after “1. County councils.” of “1A. County borough councils.”.

Section 1

Section 43 shall have effect as if for the words “by means of a loan instrument” in subsection (2) there were substituted the words “from a local authority which shall cease to exist as a result of the Local Government (Wales) Act 1994, by means of a loan instrument the rights and obligations under which are not transferable”.

Section 2

Section 45 shall have effect as if:—

(a) in subsection (2), for the words “subsection (3)” there were substituted the words “subsections (2A) and (3)”; and

(b) after subsection (2) the following subsection were inserted—

(2A) In relation to the financial year commencing on 1st April 1995, the duty to determine the limits referred to in subsection (1) above shall be performed as soon as reasonably practicable after 4th May 1995.

Section 3

Section 46 shall have effect as if subsection (2) were omitted.

Section 4

Section 53 shall have effect as if:—

(a) in subsection (1), at the beginning there were inserted the words “Subject to subsection (1A) below,”; and

(b) after subsection (1) the following subsection were inserted—

(1A) A basic credit approval for the financial year commencing on 1st April 1995 shall be issued as soon as reasonably practicable after 4th May 1995.

Section 5

Schedule 3 shall have effect as if—

(a) paragraphs 1 to 9 were omitted;

(b) in paragraph 10(1), for the words “1st April 1990” there were substituted the words “4th May 1995”;

(c) after paragraph 10(1) the following sub-paragraph were inserted—

(1A) Subject to the provisions of paragraphs 11, 12, 13 and 14 below, a new authority’s credit ceiling on 4th May 1995 shall be nil.

(d) in paragraphs 11, 12, 13 and 14, for the words “1st April 1990” wherever they appear, there were substituted the words “4th May 1995”; and

(e) in paragraph 15—

(i) in sub-paragraph (1), after the word “sub-paragraphs”, there were inserted the word “(1A),”, and after the word “principal” there were inserted the words “(“the principal amount”)”; and

(ii) after sub-paragraph (1) the following sub-paragraph were inserted—

(1A) For the financial year commencing on 1st April 1995 the principal amount for a new authority shall be nil.