Explanatory note

Section 4 of the Local Government Act 1988 precludes an authority mentioned in section 1 of the Act (a defined authority) from entering into a works contract on or after 1st April 1989 under which they are to carry out work falling within an activity listed in section 2(2) of the Act (a defined activity) unless they have competed for the contract. Section 5 of the Act imposes a similar prohibition in respect of works contracts entered into before 1st April 1989 under which work is to be carried out on or after that date.

Section 6(3) of the Act empowers the Secretary of State to require that, after a date to be specified in regulations, a defined authority must not carry out functional work falling within a defined activity without subjecting the work to competition. Dates are specified for this purpose in the Local Government Act 1988 (Defined Activities) (Competition) (Scotland) Regulations 1988 (S.I. 1988/1413).

“Works contract” and “functional work” are defined in section 3 of the Act.

This Order specifies four situations in which, in Scotland, work will not be treated as falling within a defined activity for the purposes of the Act.

The first exemption applies where the estimated gross cost to a particular authority of carrying out the activity in the preceding financial year does not exceed £100,000 (article 3). The second applies where work is carried out by an employee of the defined authority who is required to live in particular accommodation for the better performance of his duties (article 4). The third relates to the repair and maintenance of fire service vehicles (article 5). The fourth applies where work is carried out pursuant to an agreement between the defined authority and the Training Commission or the Secretary of State under the Employment and Training Act 1973 (article 6).