Local Government (Financial Provisions) Act, 1978

Power of limitation with regard to local authority finance.

10.—(1) The Minister may, with the consent of the Minister for Finance, by a direction given to a local authority in writing require the authority, in relation to a local financial year specified in the direction, to limit in such manner as is specified in the direction all or any one or more of the amounts required by section 9 (1) of the Act of 1955 to be shown in the authority's estimate of expenses for the local financial year so specified.

(2) The Minister may, with the consent of the Minister for Finance, by a direction given in writing to a local authority which is a rating authority, and so given before the adoption by the authority of an estimate of expenses relating to the local financial year specified in the direction, require that as regards that local financial year—

(a) the aggregate of the rates in the pound required by section 10 (4) (c) of the Act of 1955 to be determined by the authority shall be limited by reference to an amount or in such other manner as may be so specified,

(b) any rate in the pound which is so required to be determined shall not exceed a limit specified in the direction in relation thereto by reference to an amount or to such other matter as may be so specified.

(3) In case the Minister gives a direction under this section the following provisions shall apply:

(a) it shall be the duty of the local authority concerned to comply with the direction,

(b) in case the direction is a direction referred to in subsection (2) of this section,

(i) the direction may authorise the authority, for the purpose of complying with the direction, to amend the demand of the commissioners of a town in relation to the local financial year specified in the direction and made under section 26 (1) of the Local Government Act, 1946 .

(ii) it shall be the duty of the local authority concerned to adopt an estimate of expenses which will ensure that the rate or each of the rates, as may be appropriate, in the pound which is or are to be determined in accordance with section 10 (4) (c) of the Act of 1955 shall not exceed the limit specified in the direction, or in case more than one limit is so specified, the relevant limit so specified,

(c) in case the direction is a direction referred to in subsection (1) of this section and, notwithstanding paragraph (a) of this subsection, the requirement of that paragraph is not complied with by the authority, the adoption by the authority of an estimate of expenses for the local financial year so specified shall not be thereby invalidated but such estimate shall be construed as if for any amount therein contained which is not in accordance with the requirements of the direction there were substituted the maximum amount permissible having regard to the limit specified in the direction or in case more than one limit is so specified, the relevant limit so specified,

(d) in case the direction is a direction referred to in the said subsection (2) and, notwithstanding the said paragraph (a), the requirement of that paragraph is not complied with by the authority, the determination of the rate or rates in the pound to which the direction relates shall not be thereby invalidated but such determination shall have effect as if for the amount of such rate, or of the aggregate of such rates, or of each of such rates, as the case may require, there were substituted therefor an amount equal to the maximum amount permissible having regard to the limit specified in the direction, or in case more than one limit is so specified, the relevant limit so specified,

(e) it shall be the duty of the manager—

(i) before the adoption by the authority of an estimate of expenses relating to the local financial year specified in the direction, to prepare for the authority a statement indicating the effect of the direction in relation to such estimate,

(ii) in case the direction is not complied with, as soon as may be to certify in writing to the Minister the extent by which any limit specified in the direction is exceeded, and

(iii) where the provisions of paragraph (d) of this subsection apply, as soon as may be to amend the relevant estimate of expenses adopted by the authority so as to make it consistent with the direction (which amendment the manager is hereby authorised to make).

(4) This section shall be deemed to have come into force on the 1st day of November, 1977.