The Local Government Act 1988 (Competition) (Wales) (No. 2) Regulations 1997

Amendments to the legal services regulations

7.—(1) The legal services regulations are amended in accordance with paragraph (2) below.

(2) In regulation 2 (interpretation)—

(a) after the definition of “the Act” insert—

““the 1980 Act” means the Local Government Planning and Land Act 1980;”

(b) substitute the following for the definition of “the cost”—

““the cost” means the estimated total annual cost including overheads provided that that estimated cost (including overheads) is not treated by a defined authority as forming part of the cost of—

(a)

another defined activity; or

(b)

work to which Part III (direct labour organisations) of the 1980 Act applies”;

(c) substitute the following for the definition of “the specified proportion”—

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

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 1980 Act 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 55 per cent of (T − (A + B)) or £300,000 whichever is the greater;

D

=

”

(i)

for work awarded before 1st April 1994, an amount equal to the cost of specified work which is being carried out following voluntary competitive tendering;

(ii)

for work awarded after 12th December 1997, an amount equal to 125 per cent of the cost of specified work which is being carried out following voluntary competitive tendering;

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—

(a)

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

(b)

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

G

=

an amount equal to 55 per cent of the cost of 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 (local education authority required to have scheme for purposes of Chapter V) of the Education Act 1996;

provided that—

(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

(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,”

(c) after the definition of “specified work” insert—

“and

“voluntary competitive tendering” means the award (whether or not to the defined authority conducting the process) of work following a competitive process in the course of which at least three persons who are not defined authorities were invited to tender for that work.”.