The Local Government Act 1988 (Competition) (Personnel Services) (Wales) Regulations 1997

In these Regulations—

• “the Act” means the Local Government Act 1988;

• “the cost” means the estimated total annual cost including overheads provided that those overheads are not treated by a defined authority as forming part of the cost of—

  1. a

     another defined activity; or

  2. b

     work to which Part III of the Local Government, Planning and Land Act 1980 (direct labour organisations)5 applies;

• “the specified proportion” means an amount equal to the product of the formula—

  $\left(\mathrm{T}-\left(\mathrm{A}+\mathrm{B}\right)\right)-\left(\mathrm{C}+\mathrm{E}+\mathrm{F}+\mathrm{G}+\mathrm{I}\right)$

  where

  T

  an amount equal to the cost to a defined authority of the specified work;

  A

  an amount equal to the cost of specified work which is being carried out by a person other than a defined authority in connection with work falling within any other defined activity or in connection with work to which Part III of the Local Government, Planning and Land Act 1980 applies where that work is being carried out by another person on behalf of a defined authority;

  B

  an amount equal to any amount included in T in respect of goods or services which are provided by a person other than a defined authority;

  C

  an amount equal to—

  1. a

     85% of (T−(A+B)) or £400,000, whichever is greater, in relation to specified work carried out by a combined fire authority; or

  2. b

     60% of (T−(A+B)) or £300,000, whichever is greater, in relation to specified work carried out by any other defined authority to which these Regulations apply.

  E

  an amount equal to the cost of any specified work being carried out following a competitive tendering process in respect of that work conducted in accordance with the provisions of the Act;

  F

  an amount equal to the cost of any specified work being carried out by a person other than a defined authority following a competitive tendering process where—

  1. a

     no defined authority submitted a bid to carry out that work; and

  2. b

     that work has previously been carried out by the defined authority conducting that process or by its predecessor;

  G

  an amount equal to the cost of specified work carried out by a defined authority which is funded from a school’s delegated budget provided under a scheme prepared in accordance with section 103 of the Education Act 19966;

  I

  an amount equal to the cost of specified work falling within paragraph 15(1)(g) of Schedule 1 to the Act where that work is carried out by a defined authority and is wholly funded by—

  1. a

     a grant paid to the authority pursuant to section 484 of the Education Act 1996 or the Grants for Welsh Language Regulations 19807 which is paid on to a governing body of a school with a delegated budget provided under a scheme prepared in accordance with section 103 of the Education Act 1996; or

  2. b

     a matching contribution by the authority to such a grant which is paid on to such a governing body,

• Provided that—

  1. a

     any amount taken into account in applying any element in the formula (other than T) shall not also be taken into account in applying any other element in the formula; and

  2. b

     any such amount shall not be taken into account in applying any element in the formula used for calculating the specified proportion of any other defined activity;

• “specified work”, in relation to a defined authority, means work of any description falling within the defined activity mentioned in section 2(2)(n) of the Act (personnel services)8 other than work carried out under a works contract in relation to which that authority were a bidding authority to which section 4 of the Act (works contract: restrictions) applies.

Section 6 of the Act (functional work: restrictions) shall apply to the specified proportion of any specified work if it is proposed to be carried out on or after 1st October 1999 by a defined authority.