Explanatory note

Under Part I of the Local Government Act 1988 (Competition), work falling within certain defined activities may be carried out by defined authorities only if particular conditions are fulfilled.

Article 3 of the Order exempts from the requirements of Part I housing management work carried out by county and county borough councils in Wales so long as the number of houses provided by the council under Part II of the Housing Act 1985 (excluding hostels and also flats in relation to which to the right to buy has been exercised) is not more than 2500 on 1st April in the year immediately preceding a year beginning on 1st April. The exemption is with effect for the year beginning on 1st April 1998 and subsequent years.

Articles 4 and 5 exempt from the requirements of Part I housing management work carried out by a county or county borough council in Wales so long as it is carried out in relation to houses in respect of which such a council has delegated some or all of its housing management functions to a relevant organisation (defined in article 1(2) as a tenant management organisation within the meaning of section 27AB(8) of the Housing Act 1985); it is carried out by staff employed by the council who are under the direction of the committee or board of directors of the relevant organisation, and it is being carried out before 1st April 2003 in the case of some councils, (see Schedule 1, Part I to the Order); before 1st July 2003 in the case of Wrexham County Borough Council (see Schedule 1, Part II) and in the case of other councils (see Schedule 1, part III) before 1st April 2004.

The exemption for housing management work provided by S.I. 1988/1469 as amended by S.I. 1994/2296, (the conditions for which are concerned with the estimated gross cost of the defined activity for the financial year preceding the one in question) is revoked by article 6 and Schedule 2 in consequence of the new exemption based on housing stock level (article 3).