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LOCAL GOVERNMENT (BEST VALUE) BILL

EXPLANATORY AND FINANCIAL MEMORANDUM

REVISED VERSION
INTRODUCTION

  1. This Explanatory and Financial Memorandum has been prepared by the Department of Environment to assist the reader of the Bill and to help inform debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.

  2. The Memorandum needs to be read in conjunction with the Bill. It is not, and is not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause does not seem to require any particular explanation or comment, none is given.

    3. BACKGROUND AND POLICY OBJECTIVES

  3. When the government came to power in May 1997, it gave a commitment to replace existing arrangements for the compulsory competitive tendering (CCT) of specified council services in Great Britain with a new regime of Best Value in the delivery of all services. In England and Wales, the Local Government Act 1999 repealed CCT (effective from January 2000) and provided the legislative framework for Best Value.

  4. In Northern Ireland the Department has worked in partnership with district councils to introduce Best Value on a voluntary basis. This proposed Bill therefore:

    5. CONSULTATION

  5. In December 1997, the Department issued a consultation paper outlining proposals to replace the existing system of CCT in NI with a new duty on councils to achieve Best Value in the delivery of all their services. The proposals contained in the paper were broadly consistent with government proposals for a new Best Value regime in GB and received wide acceptance from all district councils.

  6. The Department has worked in partnership with councils to introduce Best Value on a voluntary basis, in advance of legislation. A joint Department/Local Government Steering Group has monitored the process, assigning key tasks to a number of joint working groups. However, Best Value requires a statutory basis to promote its successful implementation and to ensure it is further developed in an effective and consistent manner. The draft Bill was issued for consultation, prior to its introduction to the Assembly.

    7. OPTIONS CONSIDERED

  7. In Northern Ireland, the experience of CCT highlighted the absence of real competition for councils in the delivery of those services. The general duty to achieve Best Value provides councils with an opportunity, and a challenge, to investigate more flexible and innovative ways to improve service performance in the future. All district councils in Northern Ireland have voluntarily endorsed the Department's proposals for the implementation of the new regime. The Bill was subject to extensive consultation and the attached clauses reflect comments received from all interested parties.

    8. OVERVIEW

  8. The Bill contains 7 clauses. The Bill also provides for the repeal of Part II and Schedule 1 to, the Local Government (Miscellaneous Provisions) (NI) Order 1992.

    9. COMMENTARY ON CLAUSES

    Clause 1: Best value

    Clause 1 describes the Best Value duty, and applies it to all district councils in Northern Ireland. In fulfilling their general duty of Best Value, councils are required to consult widely with local people. They are also required, in making arrangements for continuous improvement, to have regard to economy, efficiency and effectiveness. In so doing, councils may take account of any other key policy objectives and statutory functions pertaining to the delivery of services.

    Clause 2: Contracts, exclusion of non- commercial considerations

    Article 19 of the Local Government (Miscellaneous Provisions) (NI) Order 1992 specifies a list of non-commercial matters which should not be considered when awarding contracts. This clause provides the Department with powers, subject to a draft being laid before and approved by the Assembly, to make subordinate legislation amending this list in the interests of promoting other key policy issues. Councils would be required to have regard to any Departmental guidance resulting from the legislation.

    Clause 3: Power to modify statutory provisions and confer new powers.

    This clause enables the Department to pursue, on behalf of councils, the amendment or repeal of existing statutory provision in the interests of promoting the implementation of Best Value. The clause also enables the Department to make, by order, provision conferring on councils any power which the Department considers necessary or expedient to assist councils fulfil the general duty of Best Value. Under this power, the Department must consult widely with anyone affected by the proposed legislative change. Any potential order under this clause must be laid in draft, and receive approval from the Assembly. Councils would be required to have regard to any Departmental guidance resulting from the legislation.

    Clause 4: Interpretation

    This clause explains the meaning of words and expressions used in the Act.

    Clause 5: Repeals

    This clause lists the changes to primary legislation resulting from this Bill. These include the repeal of Part II of the Local Government (Miscellaneous Provisions) (NI) Order 1992, which compelled councils to subject many of their functions to a process of compulsory competitive tendering.

    Clauses 6 & 7: Commencement and Short title

    The proposed legislation will be known as the Local Government (Best Value) Act (NI) 2002 and come into force on 1st April 2002.

    EFFECTS ON EQUAL OPPORTUNITY

  9. The Bill will not unlawfully, unfairly, or unjustifiably discriminate, directly or indirectly, against specified sections of the community.

    10. EQUALITY IMPACT ASSESSMENT

  10. The Department has undertaken equality screening of the Best Value legislation. No potential inequalities were identified, and therefore an impact assessment was not undertaken.

    11. SUMMARY OF THE REGULATORY APPRAISAL

  11. The Bill would have no direct impact on employment and would not lead to additional costs or savings to businesses. While the powers within this Bill repeal the obligation of councils to subject certain functions to compulsory tendering, the principle of competitive service delivery is a pre-requisite of Best Value.

    12. LEGISLATIVE COMPETENCE

  12. The Minister of the Environment has made the following statement under section 9 of the Northern Ireland Act 1998:

"In my view the Local Government (Best Value) Bill would be within the legislative competence of the Northern Ireland Assembly."