Memorandum by the Welsh Office
ACT 1988 (COMPETITION)
2) REGULATIONS 1997 (S.I. 1997/2649)
1. This memorandum is submitted to the Joint Committee on
Statutory Instruments in response to the letter of 3 December
1997 to the Welsh Office from the Commons Clerk of the Committee.
2. The Committee asked for the submission of a memorandum
on the following points:
"The `specified proportion' of the functional work
regulated by the various Regulations being amended and which is
subject to the restriction in section 6 of the Local Government
Act 1988 is defined in the substituted definitions in regulations
3(2)(c), 4(2)(c), 6(2)(c), 7(2)(c) and 8(2)(c) as an amount equal
to the amount produced by the formula set out in those definitions.
(a) whether the formulae are capable of producing
a negative or nil amount;
(b) if so, whether the effect is to disapply section
3. With regard to (a), it is confirmed that the formulae
are capable of producing a negative or nil amount.
4. With regard to (b), the intention is not to disapply section
6. This is for the reasons set out in the Department's memorandum
to the Committee dated 11 August 1997 concerning the Local Government
Act 1988 (Competition) (Wales) Regulations 1997 (S.I. 1997/1699).
The present Regulations were laid before Parliament on 21 November
1997. Subsequently, the Department became aware of the Committee's
conclusions concerning the earlier Regulations (S.I. 1997/1699)
which were contained in its 11th Report published on 25 November
1997. The Department is still of the view that the fact that the
formulae are capable of producing a negative or nil amount does
not necessarily mean that section 6 of the 1988 Act is disapplied.
However, in view of the conclusions of the Committee expressed
in that Report, the Department is considering how it may be possible,
under existing powers, appropriately to amend the formulae so
as to meet the Committee's concerns.