Explanatory note

For the purpose of calculating the difference as between one financial year and another of the relevant liabilities of a Passenger Transport Executive (“PTE”) (which determines the credit cover required by the relevant Passenger Transport Authority (“PTA”)) current liabilities which the PTA determine not to set against the current assets of the PTE are included in the calculation as if they were not current liabilities. Also for that purpose current liabilities appearing as such in the balance sheet of the PTE which in the preceding year were not current liabilities are included in the calculation as if they were not current liabilities (article 2(1) and (2)).

Provisions made by a PTE for future pensions obligations and for taxation are excluded from the category of “liabilities” in articles 2 and 5 of the 1990 Order. (article 2(3)).

The date in a financial year before which a determination may be made by a PTA to treat a supplementary credit approval as reduced for the preceding financial year is changed from 31st May to 30th September (article 2(4)).

In those cases where short term borrowing, which was made before 31st March 1991 for meeting prescribed expenditure under Part VIII of the Local Government, Planning and Land Act 1980, is repaid with monies from long-term borrowing made in the current financial year, any consequential increase in relevant liabilities of the borrowing PTE as compared with the previous financial year will cease to that extent to require the PTA to secure the availability of credit cover (article 2(5)).