Memorandum by the Scottish Office
1999 (S.I. 1999/365)
1. The Committee considered the above instrument
on 16 March 1999 and requested a Memorandum on the following points:
1. Regulation 18(2) of the 1997 Regulations
as substituted by regulation 15(4) introduces a new Schedule 4
which (as shown by its heading and contents) is restricted to
"services". Explain in the light of this
(a) why substituted regulation 18(2) of the
1997 Regulations (the latter as introduced by regulation 15(5)
refer to "goods and services" and not merely "services",
(b) whether (if regulations 18(2) and 18(2A)
should refer only to "services") regulation 18(1) of
the 1997 Regulations should have been amended to the same effect.
2. Regulation 25(3) defines "residual
fund-holding practice" for the purposes of regulation 25.
Explain why this definition has been included, since the defined
term does not appear elsewhere in regulation 25.
2. With regard to the points (a) and (b) in paragraph
1 above the Department consider that the substituted regulation
18(2) and new regulation 18(2A) of the 1997 Regulations correctly
refer to "goods and services". Even although the new
Schedule 4, as introduced by regulation 15(4), does not specify
any "goods" the services specified encompass goods which
require to be purchased to provide the services in question. The
Department consider therefore that the new Schedule 4 should have
been headed "Goods and Services which may be Purchased by
a Residual Fundholding Practice". This omission will be corrected
on the first occasion when the Regulations are amended.
3. With regard to the point raised in paragraph 2
the term "residual fundholding practice" is defined
in regulation 2 of the 1999 Regulations and should not have been
defined again in regulation 25(3). Regulation 25(3) should therefore
be treated as pro non scripto and will be removed when
the Regulations are amended.
19th March 1999