Citation, commencement and interpretation

1.-(1) This Order may be cited as the Local Government Act 1988 (Defined Activities) (Exemption) (England) Order 1994 and shall come into force on 31st March 1994.

(2) In this Order-

"the Act" means the Local Government Act 1988;

"housing action trust" means a housing action trust established by order coming into force on 30th June 1993(2);

"local authority" means a district council in England, a London borough council or the Common Council of the City of London in its capacity as a local authority.

Exemption

2.-(1) Work falling within any of the activities mentioned in section 2(2) of the Act(3) shall not be treated as a defined activity so long as each of the conditions mentioned in paragraph (2) is fulfilled.

(2) The conditions are-

(a)that the work is carried out by a local authority for a housing action trust, pursuant to a works contract;

(b)that the work is carried out in connection with property which has vested in the housing action trust and which was, immediately before so vesting, in the ownership of the local authority;

(c)that, immediately before the property so vested, work of the same description was carried out in connection with the property by the local authority as functional work;

(d)that, before the property so vested, the local authority had complied fully with the requirements of sections 6 and 7 of the Act in respect of that functional work;

(e)without prejudice to sub-paragraph (f), that either-

(i)the period during which the work was to be carried out, required by section 7(3)(c) of the Act to be stated in the detailed specification of the work, has not expired, or

(ii)if the period expires within three months after the property vested in the housing action trust, not more than three months have elapsed since the property so vested; and

(f)that not more than 12 months have elapsed since the property so vested.

Explanatory Note

(This note is not part of the Order)

Under Part I of the Local Government Act 1988 (competition), work falling within certain defined activities may be carried out by local authorities only if particular conditions are fulfilled.

This Order provides for the case where the property of a district council in England, a London borough council or the Common Council of the City of London is transferred to a housing action trust established on 30th June 1993 under Part III of the Housing Act 1988. The Order provides that work which the authority have been carrying out in connection with such property as functional work (as defined in section 3 of the Local Government Act 1988) and which they carry out for the housing action trust under a works contract will not be treated as falling within a defined activity so long as the conditions in article 2 are fulfilled.