Application of section 6 – housing management

4.—(1) Subject to regulation 8 below, section 6 of the Act shall apply to the specified proportion of any specified work falling within housing management if it is proposed to be carried out by a defined authority on or after 1st April 1999.

(2) Subject to regulation 8 below, where a defined authority proposes to carry out any specified work falling within housing management in the financial year beginning on 1st April 1998, section 6 of the Act shall apply in that financial year to the specified proportion of that work.

(3) In paragraph (1) above, the specified proportion is an amount equal to 95% of the cost to the defined authority of the work.

(4) In paragraph (2) above, the specified proportion is an amount equal to 30% of the product of the following formula:–

where–

T

=

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

A

=

5% of T; and

B

=

for the period ending on 1st April 1999, or five years after work was awarded, whichever is the shorter, an amount equal to the cost of specified work which is being carried out following voluntary competitive tendering.