Regional Development Agencies Bill - continued        House of Commons

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  PART I
  REGIONAL DEVELOPMENT AGENCIES
 
Development agencies
Establishment.     1. - (1) For the purposes of this Act, England shall be divided into the regions specified in Schedule 1 and for each such region there shall be a development agency.
 
      (2) A development agency established by this section shall be a body corporate to be known by the name of the region for which it is established with the addition of the words "Development Agency".
 
      (3) Any reference in Schedule 1 to a local government or administrative area is to that area as it is for the time being.
 
Constitution.     2. - (1) A regional development agency shall consist of not less than 8 nor more than 15 members appointed by the Secretary of State.
 
      (2) In appointing a person to be a member of a regional development agency the Secretary of State shall have regard to the desirability of appointing a person who has experience of, and has shown capacity in, some matter relevant to the functions of the agency.
 
      (3) Before appointing a person to be a member of a regional development agency, the Secretary of State shall consult-
 
 
    (a) such persons as appear to him to represent local authorities whose areas fall to any extent within the agency's area,
 
    (b) such persons as appear to him to represent employers in the agency's area,
 
    (c) such persons as appear to him to represent employees in the agency's area, and
 
    (d) such other persons as he considers appropriate.
      (4) The Secretary of State-
 
 
    (a) shall designate one of the members of a regional development agency as the chairman of the agency, and
 
    (b) may designate another of them as the deputy chairman of the agency.
      (5) Schedule 2 (which makes further provision about the constitution of regional development agencies) shall have effect.
 
Status.     3. A regional development agency shall not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown and its property shall not be regarded as the property of, or property held on behalf of, the Crown.
 
 
Activities
Purposes.     4. - (1) A regional development agency shall have the following purposes-
 
 
    (a) to further the economic development and the regeneration of its area,
 
    (b) to promote business efficiency, investment and competitiveness in its area,
 
    (c) to promote employment in its area,
 
    (d) to enhance the development and application of skills relevant to employment in its area, and
 
    (e) to contribute to the achievement of sustainable development in the United Kingdom where it is relevant to its area to do so.
      (2) A regional development agency's purposes apply as much in relation to the rural parts of its area as in relation to the non-rural parts of its area.
 
Powers.     5. - (1) Subject to the following provisions of this Part, a regional development agency may do anything which it considers expedient for its purposes, or for purposes incidental thereto.
 
      (2) A regional development agency may only-
 
 
    (a) give financial assistance,
 
    (b) dispose of land for less than the best consideration which can reasonably be obtained, or
 
    (c) form, or acquire an interest in, a body corporate,
  if the Secretary of State consents.
 
      (3) A regional development agency may only provide housing by acquiring existing housing accommodation and making it available on a temporary basis for purposes incidental to its purposes.
 
Delegation of functions by Ministers.     6. - (1) A Minister of the Crown may, to such extent and subject to such conditions as he thinks fit, delegate any eligible function of his to a regional development agency.
 
      (2) A function is eligible for the purposes of subsection (1) if-
 
 
    (a) it does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges, and
 
    (b) the Secretary of State considers that it can appropriately be exercised by the regional development agency concerned.
      (3) No delegation under subsection (1) may be made without the agreement of the regional development agency concerned, unless a corresponding delegation is made at the same time to all the other regional development agencies.
 
      (4) No variation of a delegation under subsection (1) may be made without the agreement of the regional development agency concerned, unless-
 
 
    (a) the delegation did not require the agency's agreement, and
 
    (b) a corresponding variation of every corresponding delegation to another regional development agency is made at the same time.
      (5) A delegation under subsection (1) may be revoked at any time.
 
      (6) Schedule 3 (which makes provision for transfer schemes in connection with the delegation of a function, or the revocation of the delegation of a function, under this section) shall have effect.
 
Strategy.     7. - (1) A regional development agency shall-
 
 
    (a) formulate, and keep under review, a strategy in relation to its purposes, and
 
    (b) have regard to the strategy in exercising its functions.
      (2) The Secretary of State may give a regional development agency guidance and directions in relation to the exercise of its functions under subsection (1), in particular, with respect to-
 
 
    (a) the matters to be covered by the strategy,
 
    (b) the issues to be taken into account in formulating the strategy,
 
    (c) the strategy to be adopted in relation to any matter, and
 
    (d) the updating of the strategy.
      (3) The issues mentioned in subsection (2)(b) include issues relating to any one or more of the following-
 
 
    (a) the agency's area,
 
    (b) the area of any other regional development agency, and
 
    (c) any part of the United Kingdom outside England.
Regional consultation.     8. - (1) If the Secretary of State is of the opinion-
 
 
    (a) that there is a body which is representative of those in a regional development agency's area with an interest in its work, and
 
    (b) that the body is suitable to be given the role of regional chamber for the agency,
  he may by directions to the agency designate the body as the regional chamber for the agency.
 
      (2) The Secretary of State may by directions require a regional development agency for which there is a regional chamber under subsection (1)-
 
 
    (a) to have regard, in the exercise of its functions under section 7(1)(a), to any views expressed by the chamber, and
 
    (b) to consult the chamber in relation to the exercise of such of its functions as may be specified in the directions.
      (3) The Secretary of State may give a regional development agency for which there is no regional chamber under subsection (1) such guidance and directions as he thinks fit for the purpose of securing that it carries out appropriate consultation in relation to the exercise of its functions.
 
 
Financial arrangements
General financial duties.     9. - (1) The Secretary of State may-
 
 
    (a) after consultation with a regional development agency, and
 
    (b) with the approval of the Treasury,
  determine the financial duties of the agency; and different determinations may be made for different functions of the agency.
 
      (2) The Secretary of State shall give a regional development agency notice of every determination of its financial duties under this section, and such a determination may-
 
 
    (a) relate to a period beginning before, on, or after, the date on which it is made,
 
    (b) contain supplemental provisions, and
 
    (c) be varied by a subsequent determination.
      (3) The Secretary of State may, after consultation with the Treasury, give a direction to a regional development agency requiring it to pay to him an amount equal to the whole or such part as may be specified in the direction of any sum, or any sum of a description, so specified which is or has been received by the agency.
 
      (4) Where it appears to the Secretary of State that a regional development agency has a surplus, whether on capital or revenue account, he may, after consultation with the Treasury, direct the agency to pay to him such amount not exceeding the amount of that surplus as may be specified in the direction.
 
Government grants.     10. The Secretary of State may, with the approval of the Treasury, make to a regional development agency grants of such amounts, and on such terms, as he thinks fit.
 
Borrowing.     11. - (1) A regional development agency shall be entitled to borrow in accordance with the following provisions of this section, but not otherwise.
 
      (2) Subject to subsection (5), a regional development agency may, with the consent of the Secretary of State, borrow temporarily in sterling, by way of overdraft or otherwise, from persons other than the Secretary of State, such sums as it may require for meeting its obligations and carrying out its functions.
 
      (3) The Secretary of State shall not give consent for the purposes of subsection (2) without the approval of the Treasury.
 
      (4) Subject to subsection (5), a regional development agency may borrow from the Secretary of State, by way of temporary loan or otherwise, such sums in sterling as it may require for meeting its obligations and carrying out its functions.
 
      (5) A regional development agency may not borrow under this section if the effect would be-
 
 
    (a) to take the aggregate amount outstanding in respect of the principal of sums borrowed under this section by regional development agencies over the collective borrowing limit, or
 
    (b) to increase the amount by which the aggregate amount so outstanding exceeds that limit.
      (6) For the purposes of subsection (5), the collective borrowing limit is-
 
 
    (a) £200 million, or
 
    (b) such greater sum as the Secretary of State may, with the approval of the Treasury, specify by order made by statutory instrument.
      (7) An order under subsection (6)(b) shall not be made unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.
 
 
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Prepared 10 December 1997