LOCAL GOVERNMENT ACT 1988 (COMPETITION) (ENGLAND) (NO. 2) REGULATIONS (S.I. 1997/2732)
Memorandum by the Department
of the Environment,
Transport and the Regions
1. The Committee has requested
a memorandum on the following point:
The "specified proportion"
of the functional work regulated by the various Regulations being
amended and which is subject to the restriction in section 6 of
the Local Government Act 1988 is defined in the substituted definitions
in regulations 3(2)(c), 4(2)(b), 6(2)(b), 7(2)(b) and 8(2)(b)
as an amount equal to the amount produced by the formula set out
in those definitions.
(a) whether the formulae
are capable of producing a negative or nil amount;
(b) if so, whether the effect
is to disapply section 6.
2. With regard to (a), it
is confirmed that the formulae are capable of producing a negative
or nil amount.
3. With regard to (b), the
intention is not to disapply section 6. This is for the reasons
set out in the Welsh Office's Memorandum to the Committee dated
11th August 1997 concerning the Local Government Act 1988 (Competition)
(Wales) Regulations 1997 (S.I 1997/1699). The present Regulations
were laid before Parliament on 21st November 1997. Subsequently,
the Department saw the Committee's conclusions on the earlier
Welsh Regulations which were contained in its 11th report published
on 25th November 1997.
4. The Department, like the
Welsh Office, is still of the view that the fact that the formulae
are capable of producing a negative or nil amount does not necessarily
mean that section 6 of the 1988 Act is disapplied. In addition,
it is Ministers' intention to introduce legislation at the earliest
opportunity to replace the CCT regime and repeal the relevant
Part of the 1988 Act. However, in view of the Committee's earlier
conclusions, the Department is considering whether it may be possible,
under existing powers, appropriately to amend the formulae so
as to meet the Committee's concerns.
5th January 1998