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9 1946

HARBOURS ACT, 1946

PART VII.

Finance and Accounts.

Application of revenue.

119. —(1) The revenue of a harbour authority in any year shall be applied to the following purposes in the following order:

(a) the payment of working and establishment expenses (including expenses in respect of any pensions and gratuities payable by the harbour authority) and of expenses properly chargeable to revenue of management, maintenance, cleaning and repair,

(b) the payment, in respect of borrowed moneys and subject to the terms on which such moneys were borrowed, of interest, of repayments of principal and of contributions to sinking funds,

(c) such other purposes (including carrying forward to the next following year) in such order as the harbour authority, with the consent of the Minister, may decide.

(2) Notwithstanding subsection (1) of this section, where the Minister, on the application of a harbour authority, is satisfied that the purchase of any particular equipment is essential to the maintenance or working of the harbour of the harbour authority, the Minister may authorise the harbour authority to pay the cost, or part of the cost, of the equipment as if such cost, or the part thereof specified in the authorisation, as the case may be, were proper to be included among the working and establishment expenses of the harbour authority.

General power to borrow.

120. —(1) A harbour authority may from time to time, with the consent of the Minister, borrow money for expenditure on purposes in connection with their harbour (including expenditure on improvement or in discharge of existing obligations) either, as may be directed by the Minister, by the issue of stock or debenture stock, by way of mortgage or in any other manner.

(2) Save with the consent of the Minister for Finance, the Minister shall not consent to the borrowing by a harbour authority of any sum exceeding—

(a) in case the harbour authority is the Dublin Port and Docks Board, two hundred thousand pounds, and

(b) in any other case, fifty thousand pounds.

(3) An application made by a harbour authority to the Minister for his consent to their borrowing of money shall be in such form as the Minister directs and shall specify the amount of money to be borrowed, the purposes to which the money is to be applied, the manner in which the money is proposed to be borrowed and such other particulars as the Minister may require.

(4) For the purpose of deciding whether to grant or refuse to grant his consent to the borrowing of money by a harbour authority, the Minister may direct a local inquiry to be held into the purposes of or the need for or both the purposes of and the need for the borrowing.

(5) Where a harbour authority borrow money under this section, they shall carry out such directions as the Minister may give in respect of the following matters:

(a) the manner and the terms of the borrowing,

(b) the purposes to which the money borrowed is to be applied,

(c) the income, funds or property to be charged as security in respect of the borrowing,

(d) the form of the security to be created in respect of the borrowing,

(e) in case any mortgage is to be created in respect of the borrowing, the terms and conditions as to redemption of the mortgage,

(f) the period for repayment of the money borrowed and the provisions to be made for securing repayment within that period.

(6) The Minister shall not give a direction under subsection (5) of this section in relation to any borrowing from the local loans fund save with the concurrence of the Minister for Finance.

(7) A harbour authority shall not borrow save under and in accordance with this section or the next following section.

Temporary borrowing.

121. —(1) A harbour authority, with the consent of the Minister, may, for the purpose of providing temporarily for current expenses, borrow by way of temporary loan or overdraft.

(2) Payments, in respect of moneys borrowed under this section by a harbour authority, of interest and of repayment of principal shall be included among the working and establishment expenses of the harbour authority and shall be made in such manner and during such periods as may be approved of by the Minister.

(3) Without prejudice to subsection (2) of this section, moneys borrowed under this section by a harbour authority shall stand charged on the revenue, funds and property of the harbour authority pari passu with all mortgages, stock and other securities affecting such revenue, funds and property.

(4) References in this section to borrowing include references to reborrowing.

Borrowing from local loans fund.

122. —Money borrowed under this Part of this Act for expenditure on anything authorised by a harbour works order may be lent by means of an issue from the local loans fund as if such loan constituted a local loan within the meaning of the Local Loans Fund Acts, 1935 to 1940, and was authorised by an Act of the Oireachtas.

Investment by trustees in certain stocks and mortgages.

123. —Any stock issued or mortgage made by a harbour authority mentioned in Part I of the First Schedule to this Act (including any stock issued or mortgage made by such harbour authority before the passing of this Act) shall be deemed to be included amongst the securities in which trustees may invest trust funds under the powers of section 1 of the Trustee Act, 1893.

Protection of lenders.

124. —(1) Whenever a body of persons, who are not lawfully constituted as, but are acting as or purporting to be, a harbour authority, borrow money in purported exercise of the powers in that behalf of the harbour authority from a lender who lends the money in good faith and without notice that the body of persons are not lawfully constituted as the harbour authority, the following provisions shall have effect in favour of the lender or any person claiming through or under him as against the harbour authority:

(a) the body of persons shall be deemed, for the purposes of the transaction consisting of the borrowing and lending, to have been lawfully constituted as the harbour authority, and accordingly the harbour authority shall be liable for the repayment of the money so borrowed and lent and the payment of interest thereon in accordance with the terms on which the money was so borrowed and lent to the same extent (if any) as the harbour authority would have been so liable if the body of persons had in fact been lawfully constituted as the harbour authority;

(b) every mortgage or other security given by the body of persons and purporting to be given by the harbour authority to the lender for securing the repayment of the money and the payment of the interest thereon shall, in the hands of the lender or any person claiming through or under him, be valid and enforceable against the harbour authority to the same extent (if any) as it would have been so valid and enforceable if the body of persons had in fact been lawfully constituted as the harbour authority;

(c) no part of the transaction consisting of the borrowing and lending shall be invalid or capable of being questioned on the ground that the body of persons was not lawfully constituted as the harbour authority.

(2) Whenever a harbour authority borrow or are deemed by subsection (1) of this section to borrow money under or in purported exercise of their powers in that behalf from a lender who lends the money in good faith, the following provisions shall have effect in favour of the lender or any person claiming through or under him as against the harbour authority:

(a) neither the borrowing and lending nor any mortgage or other security given or purported to be given by the harbour authority to the lender for securing the repayments of the money and the payment of the interest thereon shall be invalidated or questioned on account of any illegality or irregularity in the constitution of the harbour authority or the appointment, election or nomination of any of the members thereof;

(b) the lender shall not be concerned to inquire whether the purpose for which the money is borrowed by the harbour authority is or is not a purpose for which the harbour authority are authorised by law to borrow money or whether the money does or does not exceed in amount any limit on borrowing by the harbour authority, and the lender shall not be prejudiced or affected by the fact (if it exists) that such purpose is, in whole or in part, not so authorised or that the money exceeds in amount any such limit;

(c) the lender shall not be concerned to inquire whether any meeting of the harbour authority was or was not properly convened or constituted, or whether any particular notice to the members of the harbour authority was or was not duly given, or whether the proceedings at any meeting of the harbour authority were or were not legal and regular;

(d) where the harbour authority could not lawfully borrow the money without the sanction or the consent of the Minister, and such sanction or consent (as the case may be) was given or purported to be given by the Minister, the lender shall not be concerned to inquire whether any statutory condition precedent to the giving of the sanction or consent was or was not duly complied with, and the lender shall not be prejudiced or affected by the fact (if it exists) that any such condition precedent was not complied with by the person (whether the Minister, the harbour authority or any other person) charged with the duty of complying therewith;

(e) the lender shall not be concerned to see to the application of the money by the harbour authority or be prejudiced or affected by any misapplication of the money or any part thereof by the harbour authority or any of their officers.

Establishment and abolition of funds.

125. —(1) A harbour authority may, with the consent of the Minister, and shall, if so required by the Minister, establish a fund for any specified purpose connected with their harbour.

(2) A harbour authority may, with the consent of the Minister, and shall, if so required by the Minister, abolish any fund (other than a sinking fund) established, whether before or after the passing of this Act, for any purpose connected with their harbour and shall thereupon apply any moneys standing to the credit of the fund in such manner as the Minister may direct.

(3) The sums to be paid into any fund established under this section, the times at which such sums shall be paid, the sources from which such sums shall be obtained, and the purposes for and manner in which moneys in the fund shall be appropriated and applied shall be such as may from time to time be directed or approved by the Minister.

(4) A harbour authority may, and if so required by the Minister, shall, invest the moneys in any fund established under this section and the income arising from such investment shall form part of the fund.

(5) Moneys invested pursuant to subsection (4) of this section by a harbour authority shall be invested in such securities (other than real or heritable securities) for the time being authorised by law for the investment of trust funds as the harbour authority think proper, but the harbour authority shall not, save with the consent of the Minister, invest any such moneys in stocks, funds, shares or securities created by the harbour authority themselves.

Regulations in relation to mortgages.

126. —(1) The Minister may make regulations in relation to mortgages made under this Act by a harbour authority.

(2) Regulations made under this section in relation to mortgages made by a harbour authority may, in particular, make provision in respect of all or any of the following matters:—

(a) the form of mortgages,

(b) the registers to be kept in relation to mortgages,

(c) the transfer of mortgages and the form of such transfers,

(d) the repayment of moneys borrowed on the security of mortgages,

(e) the appointment and powers of receivers.

(3) Notwithstanding any other provision of this Act, if any provisions contained in sections 75 to 88 of the Commissioners Clauses Act, 1847, applied immediately before the passing of this Act in relation to any mortgages then in force of a harbour authority, those provisions, subject to any variations which may have been made in them by the enactment by virtue of which they so applied, shall continue to apply after the passing of this Act in relation to those mortgages of that harbour authority.

Regulations in relation to stock.

127. —(1) The Minister may make regulations in relation to stock issued under this Act by a harbour authority.

(2) Regulations made under this section in relation to stock issued by a harbour authority may, in particular, make provision in respect of all or any of the following matters:—

(a) the manner in which stock is to be created, issued, charged, transferred, transmitted, dealt with and redeemed,

(b) the discharge of loans raised by the issue of stock,

(c) the accounts to be kept in relation to stock,

(d) in case of consolidation of debt, the extension or variation of the times within which loans are to be discharged,

(e) consent in the case of limited owners,

(f) the application of moneys raised by the issue of stock,

(g) dividends,

(h) appointment of registrars for the purposes of stock,

(i) returns to be made to the Minister,

(j) failure to claim dividends or stock,

(k) fees to be chargeable by a harbour authority in respect of stock,

(l) the application in respect of stock, with or without modification, of any enactments.

Prohibition on issue of irredeemable stock.

128. —A harbour authority shall not issue irredeemable stock.

Provisions in respect of trusts.

129. —A harbour authority shall not be bound to see to the execution of any trust whatsoever to which any mortgage, stock or other security made or issued by them is or may be subject and accordingly—

(a) the receipt of the person in whose name such mortgage, stock or other security stands in the books of the harbour authority shall be sufficient discharge to the harbour authority for any moneys paid by them in respect thereof notwithstanding that any such trust exists and whether the harbour authority have or have not notice thereof, and

(b) the harbour authority shall not be bound to see to the application of any money paid by them in respect of such receipt.

Continuation of funds.

130. —All sinking, depreciation, reserve, insurance or other funds whatsoever existing in respect of a harbour authority immediately before the passing of this Act shall, after such passing and subject to the provisions of this Part of this Act, be continued and contributed to in like manner and be governed by the like provisions and obligations as before such passing, but all returns requiring to be made in relation to such funds shall be made to the Minister.

Accounts.

131. —(1) The Minister may by order make regulations in relation to the accounts to be kept by a harbour authority.

(2) Regulations made under this section in relation to the accounts to be kept by a harbour authority may, in particular, make provision in respect of all or any of the following matters:—

(a) the form, number, description and contents of the accounts,

(b) the manner in which the accounts are to be kept,

(c) the period which the accounts are to cover,

(d) the date to which the accounts are to be made up,

(e) the division or allocation as between one account and another or otherwise of items appearing in the accounts,

(f) the publication of the accounts.

(3) A harbour authority shall, within two months after the date in each year to which, by the regulations under this section for the time being in force, their accounts are required to be made up, furnish to the Minister two copies of an abstract in the prescribed form of such accounts.

(4) A copy of the accounts of a harbour authority as audited under this Act shall be kept open by the harbour authority at their principal office at all reasonable times for inspection by interested persons on payment of a sum not exceeding one shilling for each inspection.

(5) Until regulations are made under this section, a harbour authority shall continue to keep the accounts and furnish the returns in relation to accounts which, immediately before the passing of this Act, they were obliged by law to keep or furnish, but subject to the modification that, as regards the furnishing of returns, such furnishing shall in every case be to the Minister.

Audit.

132. —(1) The accounts of a harbour authority shall be audited by an auditor appointed by the Minister.

(2) The following enactments, as amended or adapted by or under any subsequent enactment (including any enactment passed after the passing of this Act), shall apply in relation to the audit and auditor of the accounts of a harbour authority in the same manner as they apply in relation to the audit and auditor of the accounts of a local authority:—

(a) section 12 of the Local Government (Ireland) Act, 1871,

(b) subsection (2) of section 63 of the Local Government (Ireland) Act, 1898,

(c) sections 19, 20 and 21 of the Local Government (Ireland) Act, 1902,

(d) sections 69 , 70 , 71 and 86 of the Local Government Act, 1941 (No. 23 of 1941),

subject to the following modifications:

(i) the references in the said enactments, as so amended or adapted, to the Minister for Local Government and Public Health shall be construed as references to the Minister,

(ii) the Minister, in fixing under section 69 of the Local Government Act, 1941 , an audit fee in respect of an audit, may fix the fee at any time, whether before or after the completion of the audit, and the audit fee so fixed shall also be the audit fee in respect of subsequent audits unless and until it is replaced by a different audit fee so fixed,

(iii) any reference in section 70 or 71 of the Local Government Act, 1941 , to the prescribed period shall be construed as a reference to the like period as the expression for the time being refers to in the case of an audit of the accounts of a local authority.

(3) If the Minister directs that the accounts of a harbour authority for a period ending before the passing of this Act shall be audited under this section, such accounts shall be so audited.

(4) An appointment of an auditor made by a harbour authority before the passing of this Act shall terminate on such date as may be specified in that behalf by the Minister.

Assistance to harbour authorities by rating authorities.

133. —(1) A local authority may, with the consent of the Minister for Local Government and Public Health, resolve to assist a harbour authority in any one or more of the following ways:—

(a) by charging any rate or fund under their control for the purpose of guaranteeing any loan raised by the harbour authority,

(b) by contributing all or part of the interest or principal of any such loan,

(c) in the case of a harbour authority unable themselves to raise a loan, by borrowing the sum required by the harbour authority and advancing such sum to the harbour authority.

(2) A local authority which has passed a resolution under this section shall, within fourteen days thereafter, publish the resolution in such manner as the Minister for Local Government and Public Health directs.

(3) Not earlier than sixty days and not later than one hundred and eighty days after the passing of a resolution under this section, the local authority by whom the resolution was passed may confirm the resolution by a further resolution.

(4) Where a resolution under this section has been duly passed, published and confirmed, the Minister for Local Government and Public Health may make an order embodying the resolution and such other provisions as he may think necessary for giving effect to the resolution and every such order shall have the force of law in accordance with its terms.

(5) Where the amount required to be raised by a local authority for a local financial year ending on or after the 31st day of March, 1947, in order to defray the cost of assisting harbour authorities in that local financial year exceeds—

(a) in the case of the corporation of a county borough, a sum equal to a rate of one shilling in the pound on the total of the rateable valuations of the hereditaments and tenements rateable to the municipal rate in the county borough at the commencement of that local financial year,

(b) in the case of the corporation of a borough not being a county borough, the council of an urban district or the commissioners of a town, a sum equal to a rate of eightpence in the pound on the total of the rateable valuations of the hereditaments and tenements rateable to the poor rate (or, in the case of the borough of Dún Laoghaire, the municipal rate) in the area of the local authority at the commencement of that local financial year,

(c) in the case of the council of a county, a sum equal to a rate of fourpence in the pound on the total of the rateable valuations of the hereditaments and tenements rateable to the poor rate in the county at large at the commencement of that local financial year,

then, the Minister may, out of moneys to be provided by the Oireachtas, pay to the local authority a sum equal to one-half of such excess as a contribution towards such cost.