British Telecommunications Act 1981 Part I New Corporation for the Provision of Telecommunication and Data Processing Services The Corporation The Corporation. 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers and duties of the Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Powers of the Secretary of State over the Corporation General control and supervision by the Secretary of State. 6 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Users’ Councils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Transfers of property, rights and liabilities Transfers of property, rights and liabilities 10 1 Before the appointed day the Post Office shall take steps to separate from the remainder of its undertaking the part thereof concerned with the provision of telecommunication and data processing services (that is to say, the part thereof which is under the management and control of the deputy chairman who has special responsibility for telecommunication and data processing services). 2 Subject to the following provisions of this section, on the appointed day there shall be transferred from the Post Office to, and by virtue of this Act vested in, the Corporation all the property, rights and liabilities which, immediately before that day, were comprised in the part of the Post Office’s undertaking mentioned in subsection (1). 3 At any time before the appointed day the Post Office and the Corporation may agree in writing that subsection (2) shall not have effect in relation to any property, rights and liabilities specified in the agreement. 4 At any time before the expiration of twelve months beginning with the appointed day the Post Office and the Corporation may agree in writing that, as from such date, not earlier than the appointed day, as may be specified in or determined by or under the agreement and in such circumstances (if any) as may be so specified— a there shall be transferred from the Post Office to, and vested in, the Corporation any property, rights and liabilities specified in the agreement; or b there shall be transferred from the Corporation to, and vested in, the Post Office any property, rights and liabilities so specified. 5 No agreement under subsection (3) or (4) shall have effect in relation to rights and liabilities under a contract of employment unless the employee concerned is a party to the agreement. 6 Subject to subsection (7), in the case of any agreement under subsection (4) the property, rights and liabilities in question shall on the date of the coming into force of the agreement be transferred, and by virtue of the agreement vest, in accordance with the agreement. 7 Schedule 2 shall apply to any transfer under subsection (2) or (6) subject, in the case of a transfer under subsection (6), to any reference in that Schedule to a vesting by virtue of this Act being construed as a reference to a vesting by virtue of the agreement in question; and those subsections shall have effect subject to the provisions of that Schedule. 8 Any reference in this Act to a transfer by this Act includes a reference to a transfer under subsection (6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Charges and other terms and conditions applicable to services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Limitation of liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Finance General duty of the Corporation as to finance. 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 The Corporation’s accounts, and audit thereof The Corporation’s accounts and audit thereof. 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Power of the Secretary of State to make orders about pensions. 33 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Rating in Scotland. 36 1 In paragraph 5 of Schedule 1 to the Local Government (Scotland) Act 1975 (lands and heritages to which section 6(1) of that Act applies and occupied by the Post Office by certain property used for the purposes of telecommunication services) for the words “the Post Office” there shall be substituted the words “ British Telecommunications ” . 2 This section applies to Scotland only. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 PART II The Post Office Powers and duties of the Post Office 58 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Powers of the Secretary of State over the Post Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Post Office Users’ Councils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Exclusive privilege of the Post Office with respect to the conveyance etc. of letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Limitation of liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Interpretation and extent of Part II. 78 1 This Part shall be construed as one with Part III of the 1969 Act. 2 This Part, except sections 59 and 63 to 70, shall extend to the Isle of Man and the Channel Islands. PART III Miscellaneous and General Powers of Treasury to dispose etc. of the shares of Cable and Wireless Limited. 79 1 The Treasury after consultation with the Secretary of State may at any time dispose of their interest in all or any of the shares of Cable and Wireless Limited in consideration of such sums as the Treasury may fix; and after any such disposal section 1(1) of the Imperial Telegraphs Act 1938 and section 3(5) of the Cable and Wireless Act 1946 (which require the payment into the Exchequer of dividends paid on the said shares) shall not apply to dividends so paid in respect of the shares to which the disposal relates. 2 The Treasury after consultation with the Secretary of State or the Secretary of State with the consent of the Treasury may at any time— a acquire an interest in any shares or stock of Cable and Wireless Limited or any of its subsidiaries or in any rights to subscribe for any such shares; and b dispose of an interest so acquired in consideration of such sum as the Treasury or the Secretary of State may fix. 3 Any sums required by the Treasury or the Secretary of State for making an acquisition under subsection (2) shall be paid out of moneys provided by Parliament; and any sums received by the Treasury or the Secretary of State in consideration of a disposal made under subsection (1) or (2), or by way of dividend or otherwise in right of any interest acquired by them or him under subsection (2), shall be paid into the Consolidated Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Stamp duty. 81 1 Stamp duty shall not be chargeable on any instrument which is certified to the Commissioners of Inland Revenue by the Corporation, the Post Office or any wholly owned subsidiary of either of those bodies as having been made or executed in pursuance of section 10 or Schedule 2; but no such instrument shall be deemed to be duly stamped unless it is stamped with the duty to which it would but for this subsection be liable or it has, in accordance with the provisions of section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax provisions. 82 1 For the purposes of the Taxation of Chargeable Gains Act 1992 any asset transferred by this Act from the Post Office to the Corporation, or from the Corporation to the Post Office, shall be deemed to be for a consideration such that no gain or loss accrues to the transferor on its transfer; and Schedule 2 to that Act shall have effect in relation to any asset so transferred as if the acquisition or provision of it by the transferor, or the acquisition or provision of it by the Crown which is treated as the acquisition or provision of it by the transferor, had been the acquisition or provision of it by the transferee. 2 For the purposes of the Corporation Tax Acts— a the part of the Post Office’s trade transferred by this Act to the Corporation (“the transferred trade”) and the part thereof retained by the Post Office (“ the retained trade ”) shall be treated as having been, at all times since the commencement of the Post Office’s trade, separate trades carried on by the Corporation and the Post Office respectively; and b the trade carried on by each of those bodies after the appointed day shall be treated as the same trade as that which, by virtue of paragraph (a), it is treated as having carried on before that day. 3 The aggregate of the amounts for which the Corporation and the Post Office are entitled to relief under section 177(1) of the Income and Corporation Taxes Act 1970, as for losses sustained by them before the appointed day in carrying on the transferred trade and the retained trade, shall not exceed the amount which, if subsection (2) had not been enacted and the Post Office had continued to carry on both trades, would have been available to it for carrying forward against trading income from the trades in succeeding accounting periods. 4 Where, in the discharge of any liability which is transferred to the Corporation by this Act, the Corporation makes payments to the trustees of a retirement benefits scheme with a view to the provision of relevant benefits for persons who are employees of the Post Office, the Tax Acts shall have effect in relation to those payments— a as if those persons were employees of the Corporation; and b where the scheme is an exempt approved scheme, as if paragraph (a) of the proviso to section 21(3) of the Finance Act 1970 were omitted; and in this subsection expressions which are also used in Chapter II of Part II of the said Act of 1970 have the same meanings as in that Chapter. 5 Any transfer by this Act of an interest in land from the Post Office to the Corporation, or from the Corporation to the Post Office, shall be deemed to be a disposal to which subsection (1) of section 20 of the Development Land Tax Act 1976 (groups of companies) applies. 6 For the purposes of section 21 of the Finance Act 1972 (value added tax: group registration) the Corporation, the Post Office and any bodies corporate resident in the United Kingdom or the Isle of Man which are subsidiaries of either of those bodies shall be eligible to be treated as members of a group until the expiration of the period of three years beginning with the appointed day; and where, by virtue of this subsection, two or more bodies are so treated, the Commissioners of Customs and Excise shall, as soon as practicable after the expiration of that period, by notice to those bodies, terminate that treatment from such date as may be specified in the notice. 7 Subsections (2) and (3) shall have effect in relation to accounting periods of the Corporation and of the Post Office ending on or after the appointed day. Financial provisions. 83 1 There shall be paid out of moneys provided by Parliament— a any administrative expenses of the Secretary of State under this Act; and b any increase attributable to the provisions of this Act in the sums which under any other enactment are paid out of moneys so provided. 2 There shall be paid out of the Consolidated Fund or the National Loans Fund any increase attributable to the provisions of this Act in the sums which under any other enactment are paid out of that Fund. Power of managers of certain welfare funds to preserve their scope. 84 1 A fund to which this section applies is one (whether described by the addition thereto of the attribute “welfare”, “benevolent” or “mutual aid” or by the addition thereto of any other attribute) the objects of which consist in or include the provision for— a persons who are, or have been, employees of the Post Office, or for such persons of any class or description; or b for the relatives and dependants of any persons who are or have been so employed, or of such persons of any class or description, of benefits in case of need, sickness or distress, and a society or organisation to which this section applies is one (however described) the objects of which are similar; and in this section— “ managers ” in relation to a fund, society or organisation, means the trustees, committee or other persons entrusted with its management; “ relevant body ” means the Corporation or any of its subsidiaries or any subsidiary of the Post Office. 2 The provisions of the trust deed, rules, regulations or other instrument constituting or regulating a fund, society or organisation to which this section applies may, by resolution of the managers of the fund, society or organisation, be altered— a so as to permit persons who are employees (past or present) of a relevant body, or persons who are members of a class of persons of that description, to become members of, or subscribers to, the fund, society or organisation; b so as, in the case of persons of the said description or persons who are members of a class of persons of that description, to entitle them and persons claiming in right of them (subject to such, if any, terms and conditions as may be specified in the resolution) to receive benefits from the fund, society or organisation if, and to the extent that, they would be entitled to receive benefits therefrom if employment by a relevant body were employment by the Post Office; but so that no alteration be made that alters the character of the fund, society or organisation. 3 If a resolution of the managers of a fund, society or organisation to which this section applies so provides— a any reference in the trust deed, rules, regulations or other instrument constituting or regulating the fund, society or organisation to the Post Office (not being a reference in a context referring, in whatever terms, to persons employed by the Post Office or persons so employed of a specified description) shall be construed as referring (or, if the context so requires, as including a reference) to a relevant body; and b any reference in that instrument, in whatever terms, to persons so employed or persons so employed of a specified description shall be construed as referring (or, if the context so requires, as including a reference) to persons employed by a relevant body or, as the case may be, to persons so employed of a corresponding description. 4 For the purposes of a resolution deriving validity from this section, the definition of a class of persons may be framed by reference to any circumstances whatever. General interpretation. 85 1 In this Act— “ the 1953 Act ” means the Post Office Act 1953; “ the 1969 Act ” means the Post Office Act 1969; “ the appointed day ” has the meaning given by section 1(2); “ the Corporation ” means British Telecommunications; ... “ pension ” includes allowance and gratuity; ... “ statutory provision ”, except in relation to Northern Ireland or the Isle of Man, has the same meaning as in section 57(1) of the Harbours Act 1964, in relation to Northern Ireland, has the same meaning as in section 1(f) of the Interpretation Act (Northern Ireland) 1954 and, in relation to the Isle of Man, means an Act of Tynwald. 2 Any reference in this Act to a subsidiary or wholly-owned subsidiary shall be construed in accordance with section 1159 of the Companies Act 2006 . 3 This section shall extend to the Isle of Man and the Channel Islands. Application to Northern Ireland. 86 1 In the application of this Act to Northern Ireland any reference— a to an enactment comprised in Northern Ireland legislation (except a reference to Schedule 6 to the Local Government Act (Northern Ireland) 1972 or Schedule 8 to the Health and Personal Social Services (Northern Ireland) Order 1972); or b to an enactment which the Northern Ireland Assembly has power to amend, shall, except in Schedule 3, be construed as including a reference to any enactment comprised in Northern Ireland legislation passed or made after this Act and re-enacting the said enactment with or without modification. 2 Regulations made by the Secretary of State under the Civil Defence Act (Northern Ireland) 1950 may apply to the Corporation such of the provisions of the Civil Defence Act (Northern Ireland) 1939 (except section 7(4) thereof) relating to public utility undertakers as may be specified in the regulations and may specify the Secretary of State as the appropriate department in relation to the Corporation for the purpose of the application of any provisions so specified to the Corporation. 3 There shall be excluded from the workers in relation to whom the Road Haulage Wages Council (Northern Ireland) and any wages council established under the Wages Councils Act (Northern Ireland) 1945 may operate any person employed by the Corporation on road haulage work within the meaning of paragraph 1 of the Schedule to the Road Haulage Wages Council (Northern Ireland) (Variation) Order 1952. Consequential amendments. 87 1 The amendments contained in Schedule 3 shall have effect, being minor amendments or amendments consequential on the foregoing provisions of this Act. 2 This section and Schedule 3 shall extend to the Isle of Man, so far as regards any enactment mentioned in that Schedule that so extends, and shall extend to the Channel Islands so far as regards any enactment so mentioned that so extends. Transitional provisions. 88 1 The general transitional provisions contained in Schedule 4 ... shall have effect. 2 This section and Schedules 4 ... shall extend to the Isle of Man, and this section and Schedule 4 shall extend to the Channel Islands. Repeals and savings. 89 1 The enactments mentioned in part I of Schedule 6 (which includes some that are spent or no longer of practical utility) shall on the passing of this Act be repealed to the extent soecified in the third column of that Schedule ; and the enactments mentioned in Part II of that Schedule shall on the appointed day, be repealed to the extent specified in that column. 2 By reason of the repeal of this section by the Post Office Act 1961, there shall be inserted in Schedule 9 to the 1969 Act (general transitional provisions) at the end of paragraph 2 the following sub-paragraph— 4 With respect to instruments and documents executed or signed before the appointed day— a every instrument or document purporting to be executed or signed by or on behalf of the Postmaster General shall be deemed to be so executed or signed unless the contrary is shown ; and b a certificate signed before the appointed day by the Postmaster General that any instrument or document purporting to be executed or signed shall be conclusive evidence of that fact. 3 Notwithstanding the repeal by this section of the said Act of 1961, the Exchequer and Audit Departments Act 1866 and the Exchequer and Audit Departments Act 1921 shall continue to have effect with the amendments made by Schedule 1 to the said Act of 1961. 4 The repeal by this section of section 2 of the Post Office (Data Processing Service) Act 1967 and section 65 of the 1969 Act shall not affect the operation of those sections in relation to information obtained before the appointed day. 5 This section and Schedule 6 shall extend to the Isle of Man so far as regards any enactment mentioned in that Schedule that so extends (other than an enactment contained in the Telegraph Act 1863), and shall extend to the Channel Islands so far as regards any enactment so mentioned that so extends. Short title and extent. 90 1 This Act may be cited as the British Telecommunications Act 1981. 2 This Act extends to Northern Ireland.