The Local Government Act 1988 (Competition) (Financial Services) (Wales) Regulations 1997

In these Regulations—

• “the Act” means the Local Government Act 1988;

• “the cost” means the estimated total annual cost including overheads provided that those overheads are not treated by a defined authority as forming part of the cost of—

  1. (a)

     another defined activity; or

  2. (b)

     work to which Part III of the Local Government, Planning and Land Act 1980 (direct labour organisations)^f1 applies;

• “determination work” means work in connection with the determination of payments in pursuance of any functions conferred on a defined authority by or under the Social Security Contributions and Benefits Act 1992^f2 or the Social Security Administration Act 1992^f3;

• “the specified proportion” means an amount equal to the product of the following formula—

  $$\left(\mathrm{T}-\left(\mathrm{A}+\mathrm{B}\right)\right)-\left(\mathrm{C}+\mathrm{D}+\mathrm{E}+\mathrm{F}+\mathrm{G}+\mathrm{H}\right)$$

  where

  T

• an amount equal to the total of the cost to a defined authority of the specified work and of determination work;

A

• an amount equal to the cost of specified work which is being carried out by a person other than a defined authority in connection with work falling within any other defined activity or in connection with work to which Part III of the Local Government, Planning and Land Act 1980 applies where that work is being carried out by another person on behalf of a defined authority;

B

• an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;

C

• an amount equal to 50% of (T−(A+B)) or £300,000, whichever is greater;

D

• for the period ending on 31st March 1999 or five years after work was awarded, whichever is shorter, an amount equal to the cost of specified work which is being carried out following voluntary competitive tendering;

E

• an amount equal to the cost of any specified work being carried out following a competitive tendering process in respect of that work conducted in accordance with the provisions of the Act;

F

• an amount equal to the cost of any specified work being carried out by a person other than a defined authority following a competitive tendering process where—

  1. (a)

     no defined authority submitted a bid to carry out that work; and

  2. (b)

     that work had previously been carried out by the defined authority conducting that process or by its predecessor;

G

• an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s delegated budget provided under a scheme prepared in accordance with section 103 of the Education Act 1996^f4; and

H

• until 1st April 1999, an amount equal to the cost of specified work which is being carried out by a defined authority in connection with functional work falling within the defined activity mentioned in section 2(2)(h) of the Act (housing management)^f5 where that functional work is not subject to section 6 of the Act (functional work: restrictions),

• Provided that—

  1. (a)

     any amount taken into account in applying any element in the formula (other than T) shall not also be taken into account in applying any other element in the formula; and

  2. (b)

     any such amount shall not be taken into account in applying any element in the formula used for calculating the specified proportion of any other defined activity;

• “specified work”, in relation to a defined authority, means work of any description falling within the defined activity mentioned in section 2(2)(l) of the Act (financial services)^f6 other than work carried out under a works contract in relation to which that authority were a bidding authority to which section 4 of the Act (works contracts: restrictions) applies; and

• “voluntary competitive tendering” means the awarding of work before 1st April 1994 following a competitive process in the course of which at least three persons other than defined authorities were invited to tender for that work.

Section 6 of the Act shall apply to the specified proportion of any specified work if it is proposed to be carried out on or after 1st January 1999 by a defined authority.

(This note is not part of the Regulations)