Permanent Council Decision No. 1226
There shall cease to be an office of Director General of the National Lottery.
In consequence of subsection (1) above, in the National Lottery etc. Act 1993 (in this Act referred to as “the 1993 Act”) section 3 and Schedule 2 (which relate to the Director General of the National Lottery) shall cease to have effect.
After section 3 of the 1993 Act there shall be inserted—
On the day on which this subsection comes into force under section 27(3) below, the functions conferred or imposed on the Director General of the National Lottery by or under the 1993 Act (including any functions so conferred or imposed by virtue of this Act) shall, by virtue of this subsection, be transferred to the National Lottery Commission.
Schedule 1 to this Act (which makes provision supplemental to, or consequential on, this section) shall have effect.
After section 10 of the 1993 Act (revocation of licences) there shall be inserted—
In section 11 of the 1993 Act (directions to the Director General in respect of his functions under sections 5 to 10) for “sections 5 to 10” there shall be substituted “ sections 5 to 10A ”.
In section 21 of the 1993 Act, in subsection (2) (Secretary of State to pay into the National Lottery Distribution Fund all the sums paid to him by virtue of section 5(6)) after “section 5(6)” there shall be inserted “ or 10A ”.
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Subsection (1) above has effect in relation to any contravention, after the coming into force of that subsection, of a condition in a licence under section 5 or 6 of the 1993 Act, whenever granted.
After section 10A of the 1993 Act (financial penalties for breach of conditions of licences) there shall be inserted—
Part II of Schedule 3 to the 1993 Act (which relates to procedure and appeals in connection with the revocation, under section 10, of licences under section 5 or 6) shall be amended as follows.
In paragraph 6(1) (which specifies what a notice of proposed revocation must state) the word “and” at the end of paragraph (c) shall be omitted and after that paragraph there shall be inserted—.
In paragraph 7(2)(a) (duration of suspension of licence) for “or the Secretary of State allows an appeal against the revocation” there shall be substituted “ or an appeal against the revocation is allowed ”.
whichever is the later.
Paragraph 10 (appeals to the Secretary of State) shall cease to have effect.
After paragraph 10 there shall be inserted—
Section 33 of the 1993 Act (accounts of Secretary of State and National Debt Commissioners) shall be amended as follows.
After subsection (3) there shall be inserted—
This section has effect in relation to accounts prepared under section 33(1) of the 1993 Act so far as they relate to periods beginning on or after 1st April 1999.
Section 22 of the 1993 Act (apportionment of money in Distribution Fund) shall be amended in accordance with subsections (2) to (6) below.
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In subsection (1) of section 44 of the 1993 Act (interpretation of Part II) after the definition of “the Distribution Fund” there shall be inserted—.
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the money held in the National Lottery Distribution Fund at the commencement of this section,
the money invested by the National Debt Commissioners under section 32 of the 1993 Act as at the commencement of this section, and
the proceeds (as defined in section 32(4) of the 1993 Act) of the money mentioned in paragraph (b) above,
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In section 23 of the 1993 Act (the distributing bodies) after subsection (5) there shall be inserted—
After section 43 of the 1993 Act there shall be inserted—
After Schedule 6 to the 1993 Act there shall be inserted the Schedule 6A set out in Schedule 2 to this Act.
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In section 44 of the 1993 Act (interpretation of Part II) after subsection (2) there shall be inserted—
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In section 25 of the 1993 Act (application of money by distributing bodies) after subsection (1) there shall be inserted—
In section 44 of the 1993 Act (interpretation of Part II) after subsection (3) (which is inserted by section 8 above) there shall be inserted—
In section 25 of the 1993 Act (application of money by distributing bodies) after subsection (2) there shall be inserted—
After section 25 of the 1993 Act there shall be inserted—
In section 26 of the 1993 Act (directions to distributing bodies) after subsection (3) there shall be inserted—
In subsection (4) of that section, after “Directions under subsection (3)” there shall be inserted “ or (3A) ”.
After subsection (4) of that section there shall be inserted—
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After section 25A of the 1993 Act there shall be inserted—
In section 44 of the 1993 Act (interpretation of Part II) the following definition shall be inserted at the appropriate place in subsection (1)—.
After Schedule 3 to the 1993 Act there shall be inserted the Schedule 3A set out in Schedule 3 to this Act.
After section 25B of the 1993 Act there shall be inserted—
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In section 38 of the 1993 Act (grants to charities etc by the National Lottery Charities Board) after subsection (2) there shall be inserted—
Paragraph 4 of Schedule 5 to the 1993 Act (remuneration and allowances etc of members of the Board) shall be amended in accordance with subsections (3) to (6) below.
In sub-paragraph (1)(a) (which permits the payment of remuneration to the chairman of the Board and the chairman of any committee of the Board) for “the chairman of any committee of theirs” there shall be substituted “any other member of the Board”.
In sub-paragraph (2) (which permits provision to be made in respect of pensions for the chairman of the Board or the chairman of any committee of the Board) for “or chairman of a committee of the Charities Board,” there shall be substituted “, or in the case of any other member of the Charities Board,”.
In sub-paragraph (3) (which permits the payment of compensation for loss of office to the chairman of the Board or the chairman of any committee of the Board) for “or of a committee of the Charities Board” there shall be substituted “, or ceasing to be a member of the Charities Board,”.
Sub-paragraph (4) (approval of Treasury required) shall cease to have effect.
Paragraph 5 of that Schedule (staff of the Board) shall be amended in accordance with subsections (8) to (10) below.
Subject to any directions under section 26(3), the Charities Board may appoint such staff as they think fit, on such terms and conditions of service as they think fit.
In sub-paragraph (2) (provision may be made in relation to pensions etc with the Secretary of State’s approval)—
at the beginning there shall be inserted “Subject to any directions under section 26(3),”; and
the words “with the Secretary of State’s approval” shall cease to have effect.
Sub-paragraph (4) (consent of Treasury required) shall cease to have effect.
National Lottery Charities Board.
In the entry relating to the National Lottery Charities Board— for “and any chairman of a committee of that Board” there shall be substituted “and, if in receipt of remuneration, any other member of that Board”.
in Part III of Schedule 1 to the House of Commons Disqualification Act 1975 (other disqualifying offices), and
in Part III of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (other disqualifying offices),
Section 60 of the 1993 Act (orders and regulations) shall be amended as follows.
In subsection (2) (affirmative procedure for orders under specified provisions) for “section 28 or 30” there shall be substituted the following paragraphs—.
After subsection (2) there shall be inserted—
In subsection (3) (negative procedure for statutory instruments containing orders and regulations other than orders under specified provisions) for “an order under section 28, 30 or 65” there shall be substituted the following paragraphs—.
After subsection (3) there shall be inserted—
After subsection (5) there shall be inserted—
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There shall be a body corporate known as the National Endowment for Science, Technology and the Arts (in this Part of this Act referred to as “NESTA”).
Schedule 4 to this Act makes provision in relation to NESTA.
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The objects of NESTA are to support and promote talent, innovation and creativity in the fields of science, technology and the arts.
The objects of NESTA are to be achieved by the following means, namely—
helping talented individuals (or groups of such individuals) in the fields of science, technology and the arts to achieve their potential;
helping persons to turn inventions or ideas in the fields of science, technology and the arts into products or services—
which can be effectively exploited; and
the rights to which can be adequately protected; and
contributing to public knowledge and appreciation of science, technology and the arts.
At the request of NESTA, the Secretary of State may by order amend subsection (2) above so as to add to, remove or vary any of the means by which NESTA are to achieve their objects.
An order under this section shall be made by statutory instrument; but no such instrument shall be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.
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NESTA shall be under a general duty to achieve their objects by the means for the time being specified in section 17(2) above.
Subject to any directions under section 20 or 21 below, NESTA may do anything which appears to them to be necessary or expedient for the purpose of or in connection with achieving their objects, including in particular—
giving financial assistance to persons (whether by way of grant, loan or otherwise);
attaching conditions to any financial assistance given, including conditions requiring repayment, payment of interest or payment of other amounts;
acquiring and disposing of, or exploiting, land and other property;
taking charges or other forms of security over land and other property;
entering into contracts of whatever nature;
forming, or acquiring and disposing of interests in, bodies corporate;
acting with other persons, whether by way of partnership, joint venture or otherwise;
accepting gifts of assistance, money, land and other property; and
investing money not immediately required for the purpose of achieving their objects.
NESTA may not, without the approval of the Secretary of State—
borrow money; or
make or enter into arrangements which give rise to, or may give rise to, contingent liabilities of an unusual nature.
Directions under section 21 below may include provision for the purpose of determining whether arrangements are such as give rise to, or may give rise to, contingent liabilities of an unusual nature.
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For the purpose of providing NESTA with an endowment to enable them to achieve their objects, the Secretary of State may, before the end of the period of one year beginning with the day on which this Act is passed, make one or more payments to NESTA out of money held in the National Lottery Distribution Fund and allocated for expenditure on or connected with health, education or the environment.
For the purpose of increasing the amount of NESTA’s endowment, the Secretary of State may, at any time after the end of the period of one year beginning with the day on which this Act is passed, make an order permitting him to pay to NESTA, out of money held in the National Lottery Distribution Fund and allocated for such one or more of the descriptions for the time being mentioned in section 22(3) of the 1993 Act as may be specified in the order, such sum or, as the case may be, such sums (whether or not of equal amounts) as may be so specified.
Before making an order under this section, the Secretary of State shall consult each of the bodies for the time being mentioned in section 23 of the 1993 Act.
Where an order is made under this section, the Secretary of State may make the payment or payments permitted by the order.
NESTA may not spend their endowment, or any part of their endowment, without the approval of the Secretary of State.
In subsections (2) and (5) above, “endowment” means the aggregate of any amounts paid to NESTA under subsection (1) or (4) above.
In section 22 of the 1993 Act (apportionment of money in Distribution Fund) after subsection (3) there shall be inserted—
An order under this section shall be made by statutory instrument; but no such instrument shall be made unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.
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NESTA shall be under a duty to seek gifts of assistance, money, land and other property, but in seeking or accepting any such gifts NESTA shall comply with any directions given to them by the Secretary of State.
Except to the extent that directions under section 21 below otherwise provide, NESTA shall pay— to the National Debt Commissioners for investment by them in accordance with any instructions given to them by NESTA.
their endowment, and
any other money held by them which is not immediately required by them for the purpose of achieving their objects,
In giving instructions to the National Debt Commissioners under subsection (2) above, NESTA shall comply with any directions under section 21 below.
The expenses of the National Debt Commissioners in making any investment under subsection (2) above shall be met by NESTA.
In this section “endowment” has the meaning given by section 19(6) above.
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NESTA shall comply with any directions given to them by the Secretary of State—
in connection with the management, control or investment of their endowment or any other money held by them;
in connection with the management, control, use or exploitation of any property in which they have an interest;
in connection with the control of their administrative costs (including staff costs); or
otherwise in connection with their financial affairs.
If NESTA fail to comply with any direction given to them under this section, the Secretary of State may, after taking into account any representations made by NESTA, require NESTA to pay to him such amount as the Secretary of State thinks appropriate having regard to the extent or degree of that failure.
The amount, or the aggregate of any amounts, which NESTA are required to pay under this section shall not exceed the amount of their endowment.
Any amount which NESTA are required to pay under this section shall be recoverable by the Secretary of State as a debt due to him from NESTA.
The Secretary of State shall pay into the National Lottery Distribution Fund any amount received by him under this section; and any amount so paid shall be treated for the purposes of the 1993 Act as so paid under section 21(2) of that Act.
The Secretary of State shall consult NESTA before giving any directions to them under this section.
In this section “endowment” has the meaning given by section 19(6) above.
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As soon as possible after the end of each financial year, NESTA shall make a report to the Secretary of State on the activities of NESTA during that year.
The report shall set out any directions given to NESTA under section 20 or 21 above that had effect during the financial year to which the report relates.
NESTA shall from time to time draw up a forward plan.
As soon as possible after drawing up a forward plan, NESTA—
shall send a copy of the plan to the Secretary of State; and
shall publish and publicise the plan.
The Secretary of State shall lay a copy of every report and forward plan received by him under this section before Parliament.
In this section “forward plan” means a plan for a future period which sets out the strategy which NESTA propose to follow during that period for the purpose of achieving their objects.
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NESTA shall—
keep proper accounts and proper records in relation to the accounts, and
prepare a statement of accounts in respect of each financial year.
The statement shall comply with any directions that may be given by the Secretary of State as to the information to be contained in such a statement, the manner in which such information is to be presented or the methods and principles according to which such a statement is to be prepared.
Copies of the statement shall be sent to the Secretary of State and the Comptroller and Auditor General within such period after the end of the financial year to which the statement relates as the Secretary of State may direct.
The Comptroller and Auditor General shall examine, certify and report on the statement and shall lay copies of the statement and of his report before Parliament.
The Secretary of State shall not give a direction under this section without the Treasury’s approval.
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In section 507(1) of the Income and Corporation Taxes Act 1988 (certain bodies entitled to such exemption from tax as falls to be allowed under section 505 of that Act in case of charity the whole income of which is applied to charitable purposes) after paragraph (e) there shall be inserted—
In section 271(7) of the Taxation of Chargeable Gains Act 1992 (certain bodies exempt from tax in respect of chargeable gains) after “the Trustees of the National Heritage Memorial Fund,” there shall be inserted “the National Endowment for Science, Technology and the Arts,”.
The National Endowment for Science, Technology and the Arts.
In section 129(1) of the Finance Act 1982 (exemption from stamp duty on grants, transfers to charities etc) after “the Trustees of the National Heritage Memorial Fund” there shall be inserted “or to the National Endowment for Science, Technology and the Arts”.
In section 90(7) of the Finance Act 1986 (exceptions from stamp duty reserve tax as regards agreements to transfer securities to certain bodies etc) after paragraph (d) there shall be inserted or
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In this Part of this Act—
“the principal section” means section 1 of this Act.
“the National Lottery Distribution Fund” has the same meaning as in the 1993 Act;
each successive period of twelve months ending with 31st March;
“NESTA” means the National Endowment for Science, Technology and the Arts.
Any reference in this Part of this Act to the arts includes a reference to—
architecture, design or crafts;
the film, audio-visual or broadcasting industries; and
the music industry.
Any reference in this Part of this Act to property includes a reference to intellectual property.
Any directions under this Part of this Act shall be given in writing and may be varied or revoked by subsequent directions.
The enactments mentioned in Schedule 5 to this Act are hereby repealed to the extent specified in the third column of that Schedule.
This Act may be cited as the National Lottery Act 1998.
In this Act “the 1993 Act” means the National Lottery etc. Act 1993.
The following provisions of this Act, namely— shall come into force on such day as the Secretary of State may appoint by order made by statutory instrument; and different days may be so appointed for different purposes.
section 1,
Schedule 1, and
Part I of Schedule 5 and section 26 so far as relating to that Part of that Schedule,
The following provisions of this Act, namely— shall come into force on the day on which this Act is passed.
this section,
sections 6 to 12 and 15 to 25,
Schedules 2 to 4, and
section 26 and Part II of Schedule 5, so far as relating to the repeals in section 22 of, and paragraphs 2, 3 and 6 of Schedule 5 to, the 1993 Act,
The remaining provisions of this Act shall come into force at the end of the period of two months beginning with the day on which this Act is passed.
The power conferred by subsection (3) above to make an order includes power to make incidental, consequential, supplemental or transitional provision or savings (including power to amend enactments).
This Act extends to Northern Ireland.
Section 1.
In this Part of this Schedule—
“the appointed day” means the day on which subsection (4) of the principal section comes into force under section 27(3) of this Act;
“the appointed day” means the day on which subsection (4) of the principal section comes into force under section 27(3) of this Act;
“the Commission” means the National Lottery Commission;
“the Commission” means the National Lottery Commission;
“the Director General” means the Director General of the National Lottery;
“the Director General” means the Director General of the National Lottery;
“instrument” includes orders, rules, regulations, schemes, licences, agreements and other documents;
“instrument” includes orders, rules, regulations, schemes, licences, agreements and other documents;
“the principal section” means section 1 of this Act.
On the appointed day, there shall by virtue of this paragraph be transferred to the Commission any property, rights or liabilities to which, immediately before that day, the Director General was entitled or subject in connection with any functions transferred to the Commission by the principal section.
This paragraph applies to any person who, immediately before the appointed day, is employed by virtue of paragraph 3 of Schedule 2 to the 1993 Act. Any contract of employment under which a person to whom this paragraph applies is so employed shall have effect as from the appointed day as if it had originally been made between him and the Commission. Without prejudice to sub-paragraph (2) above— Sub-paragraphs (2) and (3) above are without prejudice to any right of an employee to terminate his contract of employment if his working conditions are changed substantially to his detriment; but such a change shall not be taken to have occurred by reason only of the change in employer effected by sub-paragraph (2) above. In sub-paragraph (4) above, the reference to an employee’s working conditions includes a reference to any rights (whether accrued or contingent) under any pension or superannuation scheme of which he was a member by virtue of his employment immediately before the appointed day.
Any enactment or instrument passed or made before the appointed day shall have effect, so far as necessary for the purposes of, or in consequence of, the transfers effected by the principal section and paragraphs 2 and 3 above, as if any reference to the Director General were a reference to the Commission.
Nothing in any other provision of the principal section or this Schedule shall affect the validity of anything done by or in relation to the Director General before the coming into force of that provision. Anything (including legal proceedings) which immediately before the appointed day is in the process of being done by or in relation to the Director General may, if it relates to any of the functions, property, rights or liabilities transferred by the principal section or paragraph 2 or 3 above, be continued by or in relation to the Commission. Any approval, authorisation, consent, delegation, direction, licence or appointment given, granted or made or other thing whatever done by the Director General for the purposes of any of the functions transferred by the principal section shall, if in force immediately before the appointed day, continue in force and have effect as if similarly given, granted, made or done by the Commission.
As respects any time on or after the appointed day, the duties imposed on the Director General in relation to— in respect of his last financial year, or any preceding financial year for which those duties have not been discharged, shall be discharged by the Commission. Any reference in this paragraph to the Director General’s last financial year is a reference to the financial year beginning with the 1st April last preceding the appointed day. The duties imposed on the Commission by sub-paragraph (1) above shall be discharged by them as if the Director General’s last financial year ended with the day preceding the appointed day (if it would not in fact do so). The property transferred to the Commission by virtue of paragraph 2 above shall include the records of the Director General. For the purposes of this paragraph, the amendments of section 14 of the 1993 Act made by paragraph 13 below shall be disregarded. In this paragraph “financial year” means the twelve months beginning with 1st April in any year and ending with the 31st March next following.
After Schedule 2 to the 1993 Act there shall be inserted—
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National Lottery Commission.
the entry relating to the Office of the Director General of the National Lottery shall be omitted.
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The National Lottery Commission;
in Part III of that Schedule (other disqualifying offices) the entry relating to the Director General of the National Lottery shall be omitted.
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the same entry as is set out in paragraph 10(a) above shall be inserted at the appropriate place in Part II of Schedule 1; and
in Part III of that Schedule, the entry relating to the Director General of the National Lottery shall be omitted.
The Tribunals and Inquiries Act 1992 shall be amended as follows. In section 7 (which restricts Ministers’ powers to remove members of tribunals listed in Schedule 1 to that Act) in subsection (2) (tribunals to which that section does not apply)— National Lottery 33AA. The National Lottery Commission in respect of their functions under sections 10 and 10A of, and Schedule 3 to, the National Lottery etc. Act 1993 (c. 39), and any member, employee or committee of that Commission authorised under paragraph 8 of Schedule 2A to that Act to exercise any of those functions.
In section 14 of the 1993 Act (annual report) in subsection (2)—
paragraph (a) (which relates to the first report of the Director General) shall be omitted; and
after that paragraph there shall be inserted—.
In section 20 of the 1993 Act (interpretation of Part I)—
“the Commission” means the National Lottery Commission;
the definition of “the Director General” shall be omitted.
Section 31 of the 1993 Act (payments from Distribution Fund in respect of expenses) shall be amended as follows. In subsection (2)— Subsection (3) (which relates to subsection (2)(a)) shall be omitted. At the end of the section there shall be added—
Section 7.
Section 12.
Section 16.
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of any trustee of NESTA, or
of any other person who has been authorised by NESTA (whether generally or specially) for that purpose.
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Section 26.
Chapter Short title Extent of repeal 1967 c. 13. The Parliamentary Commissioner Act 1967. In Schedule 2, the entry relating to the Office of the Director General of the National Lottery. 1975 c. 24. The House of Commons Disqualification Act 1975. In Schedule 1, in Part III, the entry relating to the Director General of the National Lottery. 1975 c. 25. The Northern Ireland Assembly Disqualification Act 1975. In Schedule 1, in Part III, the entry relating to the Director General of the National Lottery. 1992 c. 53. The Tribunals and Inquiries Act 1992. In section 7(2), the words “33A,”. In Schedule 1, paragraph 33A. 1993 c. 39. The National Lottery etc. Act 1993. Section 3. Section 14(2)(a). In section 20, the definition of “the Director General”. Section 31(2)(a) and (3). Schedule 2. 1998 c. 22. The National Lottery Act 1998. Section 2(4).
Chapter Short title Extent of repeal 1993 c. 39. The National Lottery etc. Act 1993. In section 22(3), the word “and” at the end of paragraph (d). In Schedule 3, in paragraph 6(1), the word “and” at the end of paragraph (c), and paragraph 10. In Schedule 5, paragraph 2(4) to (6); in paragraph 3, in sub-paragraph (1) the words “or a committee of theirs”, in sub-paragraph (2) the words “or a committee of theirs”, in sub-paragraph (3) the words “or a person appointed to a committee of theirs by the Secretary of State”, in sub-paragraph (4) the words “or a person appointed to a committee of theirs by the Secretary of State”, in sub-paragraph (5) the words “or a committee of theirs” and in sub-paragraph (6) the words “or a committee of theirs”; paragraph 4(4); in paragraph 5, in sub-paragraph (2), the words “with the Secretary of State’s approval”, and sub-paragraph (4); and paragraph 6(3).