ANNEX
REGIONAL DEVELOPMENT AGENCIES BILL
Memorandum by the Department of the Environment,
Transport and the Regions
This Memorandum identifies those provisions
of the Regional Development Agencies Bill which give powers to
make delegated legislation.
Outline and Scope of the Bill
The Bill makes provision for establishing regional
development agencies (the agencies) in the nine regions of England;
and for the transfer of property, staff and functions from the
Urban Regeneration Agency and the Development Commission to the
agencies, and other public bodies.
Proposals for Subordinate Legislation
The Bill makes provision for the following subordinate
legislation.
Clause 11 of the Bill concerns the borrowing
of money by the agencies. The total borrowing of the agencies
is limited to £200 million or such greater amount as may
be set by the Secretary of State with the approval of the Treasury.
Under subsection (6) (b) of clause 11, such greater amount must
be specified in an order made by statutory instrument subject
to the affirmative resolution procedure in the House of Commons.
The purpose of these provisions is to provide
flexibility to deal with circumstances where Ministers and the
Treasury consider that it is reasonable for the aggregate borrowing
of the agencies to exceed £200 million. There is, therefore,
an inherent safeguard for public borrowing, but provision, subject
to the approval of the House of Commons, to deal with new or exceptional
circumstances.
Clause 19 of the Bill concerns the vesting
and acquisition of land by regional development agencies. It
is modelled on a similar provision in the Leasehold Reform, Housing
and Urban Development Act 1993 in relation to English Partnerships.
Clause 19 (1) and (9) provide that the Secretary
of State may, by order made by statutory instrument subject to
the affirmative resolution procedure in both Houses of Parliament,
vest in the agencies land vested in local authorities and other
public bodies. In the case of land vested in statutory undertakers,
the power is exercisable by the Secretary of State and the appropriate
Minister.
Clause 19 (4) (b) and (11) provide that where
such statutory undertakers are not, or are not deemed to be, statutory
undertakers for the purposes of Part IX of the Town and Country
Planning Act 1990, they shall be construed in accordance with
an order made by the Secretary of State by statutory instrument
subject to the negative resolution procedure in both Houses. Under
clause 19 (10) and (11), the Secretary of State is also empowered,
by an order subject to the negative resolution procedure in both
Houses, to specify a public authority, public body or public undertaking,
as a statutory undertaker for the purpose of clause 19.
The purpose of clause 19 is to ensure that it
is open to a regional development agency, subject to the procedures
outlined above, to acquire land for its purposes which is already
in public ownership and which the Secretary of State considers
would be more appropriately transferred to the agency. It is envisaged
that the power would be used, for example, in cases where the
agency was assembling for regeneration or redevelopment purposes
a site in multiple ownership. While in general one would expect
most of this to be done through agreement with the owners concerned,
this might not always be possible.
Clause 19 (7) and (8) provide that compensation
for land acquired under clause 19 will be payable under the Land
Compensation Act 1961 (with the exception of compensation under
Part IV of that Act) subject to detailed modifications to the
Land Compensation Act 1961 and the Compulsory Purchase (Vesting
Declarations) Act 1981 set out in Schedule 4.
Clause 25 deals with changes to the
areas of the regions. Clause 1 (3) ensures that, where the
boundaries of the regions follow local government areas, those
boundaries will automatically change along with any alteration
to the local government boundary. The purpose of clause 25 is
to enable the Secretary of State to make alterations to the regions
which are independent of changes to local government boundaries.
It empowers the Secretary of State, by order subject to the negative
resolution procedure in both Houses, to make alterations in the
extent of the regions described in Schedule 1. The negative resolution
power is considered appropriate for this purpose because the Secretary
of State's power is circumscribed by clause 25 (2), which prevents
any change in the number of regions, and thus prevents the Secretary
of State from acting contrary to the intentions of Parliament
in creating 9 RDAs. The Secretary of State is required to ensure
that interested members of the public know of the order and are
given the opportunity to make representations. He is required
to consult every agency affected by the order and every local
authority whose area or part of it is included in the order. He
may establish a public inquiry into the order. An order may make
supplementary or transitional provision in relation to the alteration
of the region.
Clause 35 gives the Secretary of State
powers in relation to the Rural Development Commission
(the Commission). Subsections (1) to (3) enable the Secretary
of State, by order made by statutory instrument, to make provision
(including supplementary, incidental, consequential or transitional
provision) for: transferring any function of the Commission to
another body; conferring on another body a function similar to
all or part of one of the Commission's functions; terminating
any of the Commission's functions; extinguishing any financial
liability of the Commission to the Secretary of State; winding
up the Commission's affairs; or dissolution of the Commission.
Clause 35 (4) provides that an order under clause 35 (1) may include
provisions relating to the transfer to another public body of
any of the Commission's property, rights and liabilities, and
provision changing the name of a public body which acquires functions
from the Commission. Clause 35 (8) provides that any sums arising
out of a transfer made under an order made under clause 35 will
be paid into the Consolidated Fund. Clause 35 (6) provides that
an order may amend, repeal or modify any enactment. Clause 35
(7) provides that any order made under clause 35 will be subject
to the affirmative resolution procedure in both Houses of Parliament.
It is intended that the regional development
agencies will take over the regional regeneration functions currently
carried out in England by the Commission. These will form part
of their general purposes under clause 4 and the associated property,
rights and liabilities of the Commission will be transferred to
RDAs under clause 34. Clause 35 provides the Secretary of State
with powers to deal with the remainder of the Commission.
The Government announced on 27 March 1998 that
the remaining functions of the Commission will from April 1999
transfer to a new body formed of the Commission and the Countryside
Commission.
Clause 37 gives the Secretary of State
powers in relation to the Urban Regeneration Agency (known
as English Partnerships (EP)). Subsections (1) to (3) enable the
Secretary of State, by order made by statutory instrument, to
make provision (including supplementary, incidental, consequential
or transitional provision): in relation to the functions of EP
as he thinks fit for the purpose of changing it into a body whose
only purpose is to hold, manage and dispose of property; for changing
EP's name; for terminating any of EP's functions; for extinguishing
any financial liability of EP to the Secretary of State; for winding
up EP's affairs; or for its dissolution; for transferring to another
public body any of EP's property rights and liabilities. Clause
37 (4) provides that an order under clause 37 (1) may include
provisions establishing a new body corporate, or enabling an existing
statutory body corporate, to take over responsibility for EP's
property, rights or liabilities. Clause 37 (8) provides that sums
arising out of a transfer made under an order made under clause
37 will be paid into the Consolidated Fund. Clause 37 (6) provides
that an order may amend, repeal or modify any enactment. Clause
37 (7) provides that any order made under clause 37 will be subject
to the affirmative resolution procedure in both Houses of Parliament.
It is intended that the regional development
agencies will take over the regional regeneration functions of
EP. These will form part of their general purposes under clause
4 and the associated property, rights and liabilities of EP will
be transferred to RDAs under clause 36. Clause 37 provides the
Secretary of State with powers to deal with the remainder of EP.
The Government announced in its White Paper, Building Partnerships
for Prosperity, that the Commission for New Towns and the
national capability of EP would be merged by 1 April 2000, that
the new body would work towards ensuring a smooth transition to
the point at which further functions would be transferred to the
RDAs and that the role and function of the new national body would
need to be reviewed in due course.
Schedule 3 makes provision for a Minister
of the Crown to make a scheme transferring certain property, rights
and liabilities, consequential to a delegation of functions under
clause 6 of the Bill (delegation of functions by Ministers). Paragraphs
2 and 4 of Schedule 3 provide that a scheme under Schedule
3 may include provision in relation to existing rights and liabilities
and provision creating new rights and liabilities. The scheme
can also make supplemental, consequential or transitional provisions.
It is envisaged that the power in Schedule 3 to make schemes will
be used, for example, to transfer to the agencies the present
role of Government Offices for the Regions in administering, on
behalf of Ministers, the Single Regeneration Budget Challenge
Fund.
Paragraph 11 of Schedule 3 empowers the
Minister who made the scheme, having consulted any agency affected,
by order subject to the negative resolution procedure in both
Houses, to modify a scheme made under the Schedule, except that
such modifications may not relate to the transfer of rights and
liabilities under a contract of employment. Those modifications
which may be made under paragraph 11 would, by virtue of paragraph
11(1), have retrospective effect. This provision will provide
flexibility, subject to the restriction that it cannot be used
retrospectively to affect the rights of employees and the safeguard
of the negative resolution procedure in both Houses of Parliament.
Schedule 8 and Schedule 9 contain
powers to make schemes in relation to the Commission and EP respectively.
The powers are very similar to those in Schedule 3. In both Schedules
8 and 9, paragraph 10 provides a power to amend schemes
under the Schedules in the same manner as is provided for by paragraph
11 of Schedule 3.
Schedule 6 contains various supplementary
provisions associated with the vesting and acquisition of land
under clauses 19 to 22. It is based on provisions in the Leasehold
Reform, Housing and Urban Development Act 1993, which sets the
legislative framework for English Partnerships, whose regional
regeneration functions the agencies are to take over.
Paragraph 3 of Schedule 6 provides that
consecrated land vested in or acquired by an agency may be used
in any manner in accordance with planning permission notwithstanding
obligations or restrictions imposed by ecclesiastical law. Paragraph
3 (3) provides that the use of the land must comply with requirements
prescribed in regulations made by the Secretary of State. Under
paragraph 3 (4), the Secretary of State must set out in
such regulations provisions which are as close as possible to
the conventional legislative restrictions on the use and disposal
of consecrated land. Paragraphs 3 (7) and 3 (8) prescribe
the approach to be taken in any regulations in relation to the
removal of human remains or the disposal of monuments. Paragraph
3 (14) provides that Regulations made under this paragraph
are to be subject to the negative resolution procedure.
Paragraph 12 of Schedule 6 provides for
the Secretary of State and the appropriate Minister, in the light
of representations either by a statutory undertaker or by an agency,
by order which by virtue of paragraph 13 (2) is subject to special
parliamentary procedure, to extend or modify the powers and duties
of statutory undertakers. This would be done to secure the provision
of services which would not otherwise be provided in the area
of a regional development agency, or to facilitate any adjustment
necessitated by the vesting or acquisition of land held or used
by the statutory undertakers. Paragraph 13 makes provision
for publicity to be given to the proposal, and for objections
to be made.
Paragraph 14 of Schedule 6 deals with
circumstances in which an obligation on a statutory undertaking
has been rendered impracticable by the transfer to an agency of
land previously vested in it. The Secretary of State is empowered,
under paragraph 14 (1), by order to direct that the statutory
undertaker shall be relieved of the obligation. Paragraph 14
(4) provides that if an objection were made to such an order,
it would be subject to special parliamentary procedure.
April 1998
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