§ 1. The provisions of Schedule 2 to the London Government Act 1963 (constitution and general functions of Greater London Council) relating to the capital expenditure of and loans made by that Council and to borrowing by that Council shall be amended as follows.
§ 2. In paragraph 25, for the words from the beginning to "persons" there shall be substituted the words "Prescribed expenditure by the Council".
§ 3. The following paragraphs shall be inserted after that paragraph:
- "25A. Subject to paragraph 25B below, in paragraph 25 above and paragraphs 26 to 28 below ' prescribed expenditure' has the meaning assigned to it for the purposes of Part VIII of the Local Government, Planning and Land Act 1980 by section 58(2) of that Act (by virtue of which any reference to prescribed expenditure in the said Part VIII is to be construed in accordance with Schedule 9 to the Act).
- 25B. In the application of the said Schedule 9 to the Council—
- (a) paragraph 1 shall have effect as if the following sub-paragraph were substituted for sub-paragraph (e):—
- '(e) the making of grants and advances of a capital nature other than grants and advances—
- (i) to local authorities;
- (ii) to persons other than local authorities who are mentioned in paragraph 27(2)(b) to (f) of Schedule 2 to the London Government Act 1963;
- (iii) to persons to whom the Greater London Council are authorised to lend an annual money Act'; and
- '3. The investment by the Greater London Council of a superannuation fund which they are required to keep by regulations under the Superannuation Act 1972 is not prescribed expenditure for the purposes of this Part of this Act.'.
§ 4. In paragraph 26(1) of that Schedule, for the words "on capital account" there shall be substituted the words "by way of prescribed expenditure, otherwise than by way of loan.".
§ 5. In sub-paragraph (1) of paragraph 28 of that Schedule the words "with the approval of the Treasury" shall cease to have effect.
§ 6. The following paragraph shall be substituted for sub-paragraph (5)(a) of that paragraph:—
- "(a) by way of prescribed expenditure, otherwise than by way of loan, for a purpose mentioned in that Act; or".
§ 7. The following paragraph shall be inserted after that paragraph:—
- "28A(1) The appropriate Minister may direct that—
- (a) a specified part of the amount of expenditure authorised by an annual money Act may be spent only on a specified project;
- (b) no part of that amount may be spent on a specified project.
- (a) is of opinion that the project is of national or regional importance, or
- (b) is of opinion that the project, though not itself of national or regional importance, is part of a project which is of such importance.
8. The following paragraph shall be substituted for paragraph 29 of that Schedule:—
29. The Council may borrow money for the purpose of prescribed expenditure if, but only if, the expenditure is authorised by an annual money Act.".'.—[Mr. Fox.]
§ Brought up, and read the First time.
§ Mr. Fox
I beg to move, That the schedule be read a Second time.
This new schedule about the capital expenditure of the Greater London Council is in substitution for the schedule set out in Government amendment No. 218 which has not been moved. The schedule, as originally drafted, would have meant that the investment of the Greater London Council's superannuation funds would be subject to control as prescribed expenditure. That was not 1365 intended and will not be the case with any other authority which invests its superannuation funds. The new version of the schedule ensures that the GLC will be treated on the same basis as all other authorities. It also incorporates several technical improvements to the drafting of the original version of the schedule.
§ Question put and agreed to.
§ Schedule read a second time, and added to the Bill.