(This note is not part of the Order)
Section 4 of the Local Government Act 1988 (the Act) precludes an authority mentioned in section 1 of the Act (a defined authority) from entering into a works contract (defined in section 3(2) and (3)) in respect of work falling within an activity listed in section 2(2) of the Act (a defined activity) unless they have subjected the work to a competition procedure.
Under section 6 of the Act a defined authority may not carry out certain functional work (defined in section 3(4)) falling within a defined activity without subjecting the work to competition.
This Order specifies circumstances in which, in relation to Welsh local authorities (other than community councils) and any combined fire authority, work will not be treated as falling within a defined activity for the purposes of the Act.
The general effect of the exemption is to relieve local authorities in Wales (other than community councils), and combined fire authorities, from the requirements imposed by sections 4 and 6 of the Act for 3 years beginning with 1st April 1994. This is qualified to the extent that if there has been any notice given by the Secretary of State under section 13(2) of the Act his consent must be obtained before the local authority concerned can enter into a works contract, or carry out functional work, in respect of the work in question. If any direction has been given by the Secretary of State under section 14(2) of the Act, the local authority concerned will only be exempt from the requirements imposed by sections 4 and 6 of the Act in respect of the work in question if a further direction under section 14(3)(a) or (c) of the Act has been given which has removed any prohibition imposed by the original direction in respect of that work.
The exemption relieves local authorities from the work involved in compliance with the statutory competition procedures at a time when they will be involved with work in connection with the reorganisation of local government in Wales and the consequent transfer of functions from outgoing to incoming councils.