Statutory Instruments
1998 No. 1805

LOCAL GOVERNMENT, ENGLAND AND WALES
The Local Government (Direct Labour Organisations) (Competition) (Insolvency) (Amendment) (England) Regulations 1998

Made
22nd July 1998

Laid before Parliament
30th July 1998

Coming into force
20th August 1998

The Secretary of State, in exercise of the powers conferred on him by section 9(3) of the Local Government, Planning and Land Act 1980(1), and of all other powers enabling him in that behalf, hereby makes the following Regulations:

Citation and commencement

1.  These Regulations may be cited as the Local Government (Direct Labour Organisations) (Competition) (Insolvency) (Amendment) (England) Regulations 1998 and shall come into force on 20th August 1998.

Amendment of Local Government (Direct Labour Organisations) (Competition) Regulations 1989

2.—(1) The Local Government (Direct Labour Organisations) (Competition) Regulations 1989(2) shall be amended in accordance with the following paragraphs of this regulation.

(2) In regulation 8 (functional work), for “regulations 9, 9A and 9B” substitute “regulations 9, 9A, 9B and 9C”.

(3) After regulation 9B (exempted functional work - schools), insert—

“Exempted functional work (England): insolvency of contractor

9C.—(1) Regulation 8 shall not apply to work comprising a job which was, but is no longer, being undertaken by a contractor for a local authority or development body in England if—

(a)the contractor has stopped undertaking it by reason of falling within paragraph (2), and

(b)the local authority or development body will be undertaking the job for no more than 12 months from the day on which the contractor stopped undertaking it.

(2) The contractor is—

(a)a company—

(i)in relation to which a voluntary arrangement proposed for the purpose of Part I of the 1986 Act is approved under that Part;

(ii)in respect of which an administration order under Part II of the 1986 Act is made;

(iii)in respect of whose property an administrative receiver within the meaning of section 251 of the 1986 Act is appointed;

(iv)in respect of whose property a receiver or manager within the meaning of section 251 of the 1986 Act is appointed;

(v)which passes a resolution for voluntary winding up, within the meaning of section 84(2) of the 1986 Act;

(vi)in relation to which a winding-up order is made under section 125 of the 1986 Act;

(vii)in relation to which a voluntary arrangement proposed for the purpose of Part II of the 1989 Order is approved under that Part;

(viii)in respect of which an administration order under Part III of the 1989 Order is made;

(ix)in respect of whose property an administrative receiver within the meaning of article 5(1) of the 1989 Order is appointed;

(x)in respect of whose property a receiver or manager within the meaning of article 12 of the 1989 Order is appointed;

(xi)which passes a resolution for voluntary winding up, within the meaning of article 5(1) of the 1989 Order; or

(xii)in relation to which a winding-up order is made under article 105 of the 1989 Order;

(b)a partnership—

(i)in respect of which an administration order is made by virtue of article 6 of the 1994 Order;

(ii)in relation to which a winding-up order is made by virtue of article 7, 8, 9 or 10 of the 1994 Order;

(iii)which has granted a trust deed within the meaning of section 5(4A) of the 1985 Act(3);

(iv)where an award of sequestration is made with respect to the estate belonging to or held for or jointly by the members of that partnership, under section 12 of the 1985 Act;

(v)in respect of which an administration order is made by virtue of article 6 of the 1995 Order; or

(vi)in relation to which a winding-up order is made by virtue of article 7, 8, 9 or 10 of the 1995 Order;

(c)an individual—

(i)in relation to whom an interim order is made under section 252 of the 1986 Act;

(ii)in relation to whom a voluntary arrangement proposed for the purpose of Part VIII of the 1986 Act is approved under that Part;

(iii)in relation to whom a bankruptcy order is made under section 264 of the 1986 Act;

(iv)who has granted a trust deed within the meaning of section 5(4A) of the 1985 Act;

(v)in relation to whose estate an award of sequestration is made under section 12 of the 1985 Act;

(vi)in relation to whom an interim order is made under article 226 of the 1989 Order;

(vii)in relation to whom a voluntary arrangement proposed for the purpose of Part VIII of the 1989 Order is approved under that Part; or

(viii)in relation to whom a bankruptcy order is made under article 238 of the 1989 Order; or

(d)a body corporate, an unincorporated company, a partnership or an individual in relation to which or to whom in any country or territory outside the United Kingdom an order, act or procedure corresponding to any order, act or procedure referred to in sub-paragraph (a), (b) or (c) above is made or carried out.

(3) In this regulation—

“the 1985 Act” means the Bankruptcy (Scotland) Act 1985(4);

“the 1986 Act” means the Insolvency Act 1986(5);

“the 1989 Order” means the Insolvency (Northern Ireland) Order 1989(6);

“the 1994 Order” means the Insolvent Partnerships Order 1994(7);

“the 1995 Order” means the Insolvent Partnerships Order (Northern Ireland) 1995(8).”

Signed by authority of the Secretary of State

Hilary Armstrong
Minister of State,
Department of the Environment, Transport and the Regions
22nd July 1998

Explanatory Note

(This note is not part of the Regulations)
Regulation 2 of these Regulations amends the Local Government (Direct Labour Organisations) (Competition) Regulations 1989 so that local authorities and development bodies in England are exempt from the competitive tendering requirements of Part III of the Local Government, Planning and Land Act 1980 in respect of certain functional work (as defined in that Act) which was being carried out by a contractor in relation to whom any of a number of specified procedures under insolvency legislation has been initiated.


(1)
1980 c. 65.

(2)
S.I. 1989/1588, amended by S.I. 1994/1439, S.I. 1997/561 and S.I. 1997/2756.

(3)
Section 5(4A) was inserted by section 3(4) of the Bankruptcy (Scotland) Act 1993 (c. 6).

(4)
1985 c. 66.

(5)
1986 c. 45.

(6)
S.I. 1989/2405 (N.I. 19).

(7)
S.I. 1994/2421.

(8)
S.R. 1995 No. 225.