3.The Local Government Act 1988 requires local authorities to seek tenders for work within the scope of the “defined activities” set out in section 2(2) of the Act. This opens up the relevant activities to competition. Section 2(10) of the Act enables the Scottish Ministers to make orders modifying the application of the competition provisions in Part I of the Act in their application to local authorities. Orders made under this section may have effect until 31 December 2001.
4.Section 1 deletes the reference to 31 December 2001 in section 2(10). The consequence of this section will be to allow orders made under section 2(10) to have effect after this date.