Explanatory note

As a result of local government reorganisation in Scotland as at 1st April 1996 by virtue of the Local Government etc. (Scotland) Act 1994 (“the 1994 Act”), this Order provides for the transfer of certain property and rights, obligations and liabilities related thereto from existing local authorities to new unitary councils, police, fire or valuation joint boards or the Scottish Children’s Reporter Administration, as the case may be.

Article 2 provides that all property (other than property specifically excluded from the scope of the Order or transferred by articles 8 to 12 of the Order) vested in an authority specified in column 1 of Schedule 2 to the Order shall transfer to and vest in the authority specified in the related entry in column 2 of that Schedule. This deals with the transfer of property where the area of the successor equates to or is larger than the area of the existing authority.

Article 3 makes provision in respect of the transfer of all such property vested in a disaggregating authority (within the meaning of article 1(2)) which is an authority which will transfer property to more than one successor unitary authority. Such property will, in accordance with article 3, transfer to the new unitary authorities (or to joint boards) in terms of agreements which may be reached by them, for that purpose. In terms of article 3(1)(b) in the absence of such agreement and on the application of a new authority the Local Government Property Commission (Scotland) established under section 19 of the 1994 Act (see S.I. 1995/2500) may determine the successor authority to whom such property shall transfer, on such terms and conditions as it may determine.

Article 3(2) provides for the transfer of relevant property at 1st April 1996 in the absence of agreement or a determination by the property commission. In that case, the property concerned will in general transfer to the unitary council in whose area the property is located before 1st April 1996 or in respect of incorporeal moveable property to the successor as nominated by the property commission. The property commission, in terms of article 3(3), where a matter has been referred to them for determination, may direct that rights of use shall be made available to nominated successor authorities and may direct the transfer of property after 1st April 1996 (but before 31st December 1997) to such other successor authority as the property commission may specify.

Article 4 imposes on each disaggregating authority a duty to provide a list of its relevant property to successor unitary councils and a list of such property it considers will transfer to a joint board or the Scottish Children’s Reporter Administration and as appropriate provide to joint boards and to the Administration a list of property relevant to that authority.

Article 5 requires the property commission in carrying out its duty under article 3 to have regard, subject to particular circumstances of a case before it, to the principles set out in article 5(2).

Article 6 provides for the property commission (where articles 3(1)(b) or 3(3) apply) to require the authority to whom the property is to be transferred to enter into an agreement allowing use of the property by another authority. The property commission is required to take into account the use of the property concerned and the functions for which it was used prior to 1st April 1996.

Article 7(1) provides that where requested, the property commission may require that an agreement be entered into for the later disposal of the property concerned on the basis of division of the proceeds of the sale among specified successor authorities or of the making of payments in lieu of such sale and division. The article also provides for the circumstances in which such a division should be imposed.

Articles 8 to 10 provide for transfer of property wholly used for the purposes of certain specific functions. Articles 8 and 9 provide for police or as the case may be fire property to be transferred to the joint board constituted for that purpose. Article 10 deals with transfer of property to new valuation joint boards established by the Valuation Joint Boards (Scotland) Order 1995 (other than in respect of the area of Strathclyde Region where article 3 will apply).

Article 11 provides for transfer of property which by virtue of Part III of the 1994 Act relates to functions to be carried out by the Scottish Children’s Reporter Administration. Paragraphs (1) and (2) deal with direct transfer to the Administration where property is used wholly for the purposes of those functions. Paragraph (3) applies articles 3, 5, 6 and 7 with modifications where property is only partly so used. Paragraphs (4) and (5) impose obligations on certain regional councils and on islands councils to provide their successors with lists of property relevant to those functions.

Article 12 provides for transfer of property held by an authority as part of its common good to transfer to the authority within whose area was situated the burgh of whose common good that property formed part on 15th May 1975.