ARRANGEMENT OF CLAUSES.

Clause

1. Powers of county and large borough or urban district councils to trade or hold land.

2. Sanction of council to any proposed undertaking.

3.

4.

Borrowing powers.

Board of Trade to sanction undertakings without the area of the council.

5. Combination of councils for purposes of Act.

6. Disposal of undertaking.

7. Powers of smaller borough or district and parish councils.

8. Profits from land and undertakings to go to the common fund. Common fund not to be used in lieu of rates.

9. Accounts and application of common fund.

A

BILL

то

Extend the Powers of Local Authorities in matters A.D. 1926. of Finance and Municipal Trading.

E it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the 5 same, as follows:

borough or

1.-(1) Save as in this Act provided, it shall be Powers of lawful for the council of every county and of every county and borough and urban district, having a population according large to the last published census for the time being of twenty urban 10 thousand or over, including the city of London, and district every metropolitan borough (herein referred to as the councils to council), to establish or purchase or carry on any busi- trade or ness or undertaking within their area having for its hold land. purpose either the acquisition of gain or the promotion 15 of commerce, art, science, recreation, charity, or any other object which might law fully be established or carried on by a company, limited or unlimited, or association duly incorporated and duly acting under the provisions of the Companies (Consolidation) Act, 1908.

20

(2) Save as in this Act provided, a council may purchase or hold land within their area in such quantities and for such purposes as they think fit.

2. No council shall establish or purchase any land, business or undertaking which they would not, save for 25 this Act, have been otherwise entitled to establish or purchase, unless it has been decided so to do by a resolution of a majority of the members of the council in

Sanction of council to any proposed

under

taking.

A.D. 1926. attendance at a meeting of the council, of which due notice has been given in the manner provided in section four of the Borough Funds Act, 1872, for the purposes of that Act.

Borrowing powers.

Board of
Trade to

sanction
under-

takings

3. A council may, for the purpose of defraying any 5 costs, charges, or expenses incurred or to be incurred by them in the establishment, purchase, or carrying on of any land, business, or undertaking under this Act, from time to time borrow, in the case of a county council, as for the purposes of the Local Government Act, 1888, 10 and, in the case of a council of a county borough, borough, or urban district, as for the purposes of the Public Health Act, 1875. Provided that the sanction of the Board of Trade shall be substituted for the sanction of the Local Government Board in those Acts, and when the total 15 debt of any council, after deducting the amount of any sinking fund, exceeds, or if the proposed loan is borrowed, will exceed the amount of one quarter of the annual rateable value of the rateable property in the area of the council, ascertained according to the standard or basis 20 for the rates of the council, the amount shall not be borrowed, except in pursuance of a Provisional Order made by the Board of Trade and confirmed by Parliament.

4. The Board of Trade may, by Provisional Order, authorise any council, under such conditions as the 25 Board of Trade may prescribe, to establish or purchase or carry on any business or undertaking, or to purchase without the or hold land outside the area of any such council when, in the opinion of the Board of Trade, it is necessary or desirable in the interests of any business or under- 30 taking carried on, or to be carried on, by a council within their area that they should establish or purchase and carry on a business or undertaking or purchase or hold land without their area.

area of the council.

Combina

tion of

5. Any two or more councils may, under such 35 conditions as may be mutually agreed upon, jointly councils for establish, purchase, or carry on a business or undertaking or purchase or hold land under this Act.

purposes

of Act.

Disposal of undertaking.

6. A council shall not, without the sanction of the Board of Trade, sell or lease for a longer period than 40 seven years, any land, business, or undertaking established or purchased or carried on under this Act.

smaller

7. It shall be lawful for any borough or district A.D. 1926. council, not having powers under section one of this Act, or for any parish council, with the sanction of the Powers of Board of Trade and under such conditions as the Board borough or 5 of Trade may direct, to exercise such of the powers of a district and council under this Act as the Board of Trade may parish prescribe.

councils.

go to the

8. (1) Every council exercising powers under this Profits from Act shall establish a special fund (herein called the land and 10 common fund), and the rents and profits of all lands undertakings to held by the council, and the profits of all businesses or undertakings carried on by the council under this or any commer other Act, after making such deductions from the total fund. receipts of the council from such land, businesses, or 15 undertakings for the purpose of paying interest on loans or meeting other due liabilities of the council, or making due provision for depreciation or renewal, or making such other deductions as the Board of Trade may for such purposes deem fit, shall be paid into the common 20 fund.

be used in

(2) No payment shall be made out of the common Common fund for the purpose of avoiding or reducing rates, nor fund not to shall the common fund be considered to be part of any lieu of rates. fund of any council to which recourse may be had by 25 the council for the purpose of meeting the legal liabilities of the council other than those incurred under this Act.

9. Notwithstanding any provision to the contrary, Accounts the accounts of any council exercising powers under this and applicaAct with regard to and concerning any land, business, tion of com30 or undertaking held or carried on under this Act, shall mon fund. be made up in such manner as the Board of Trade may prescribe, and the Board of Trade shall, through its auditors for this purpose appointed, decide all questions arising as to what sums may properly be placed in the 35 common fund under section eight, subsection (1), of this Act, and as to what sums may be properly taken out of the common fund under section eight, subsection (2), of this Act, and the Board of Trade shall generally have with regard to all lands and undertakings held or carried 40 on under this Act all the powers as to supervising and auditing the accounts of local authorities and reporting thereon to Parliament which they have for the purpose of electric light undertakings under the Electric Lighting