Explanatory note

This Order is concerned with the transfer of the obligations to repay the long-term borrowings of the former Merseyside Metropolitan County Council and of the Merseyside Residuary Body.

The rights and liabilities relating to such borrowings other than certain borrowings relating to the Mersey Tunnels are transferred on 1st April 1988 to the Wirral Metropolitan Borough Council (the designated council). Rights and liabilities relating to certain Tunnel borrowings are transferred to the Merseyside Passenger Transport Authority (article 3).

With one exception, the Order also transfers to the designated council the Residuary Body’s entitlement to Exchequer grant under the Local Government Grants (Social Need) Act 1969 (grants in support of the Urban Programme). The exception relates to the entitlement to Exchequer grant under the 1969 Act in respect of Liverpool Airport, which is to pass to the Passenger Transport Authority (article 4).

The Order provides for payments to the designated council by the other district councils within the metropolitan county and by the Fire and Civil Defence, Police, Passenger Transport and Waste Disposal Authorities for the purpose of enabling the designated council to discharge the transferred liabilities. It also provides for part of those liabilities to be discharged by the designated council itself (article 6 and Schedule 1). Payments of principal and interest are to be made over 38 years. The obligations to make these payments replace the deemed borrowing obligations imposed on these bodies by the Local Government Reorganisation (Repayment of Loans) (Merseyside) Order 1986 which is revoked (article 13).

The designated council is required to establish a metropolitan debt administration fund and is empowered to recover the administrative expenses which it incurs in performance of the duties imposed by the Order (article 7). The Order also makes consequential administrative arrangements (articles 8 to 11 and Schedule 2).

The designated council is empowered to borrow money to discharge that part of its liabilities which consists in the repayment of principal (article 12).