Local Government (Best Value) Bill, Northern Ireland Assembly

Local Government (Best Value) Bill

[AS INTRODUCED]

CONTENTS

Duty of Best Value

The duty of best value
Best value guidance, performance indicators and standards

Audit of best value performance improvement plans

Audit of plans
Audits under section 3: ancillary provisions
Response to audit

Exercise of functions by councils

Contracts: exclusion of non-commercial considerations

General

Power to disapply
Interpretation
Amendment and repeals
Commencement
Short title

B I L L

Make provision imposing on district councils requirements relating to economy, efficiency and effectiveness; and for connected purposes.

BE IT ENACTED by being passed by the Northern Ireland Assembly and assented to by Her Majesty as follows:

Duty of best value

The duty of best value

1.— (1) A council shall make arrangements for continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.

(2) For the purpose of deciding how to carry out its duty under subsection (1), a council shall consult persons appearing to the council to be representative of—

(a) persons liable to pay rates in respect of hereditaments in the district of the council;

(b) persons who use or are likely to use services provided by the council; and

(3) In carrying out its duty under subsection (1), a council shall—

(a) conduct best value reviews of its functions; and

(b) review all its functions within such period as the Department may specify.

(4) In carrying out that duty, a council shall also—

(a) prepare a best value performance improvement plan for each financial year;

(b) publish its plan before such date as the Department may specify.

(5) In carrying out its functions under this section, a council shall have regard to any guidance issued by the Department under section 2.

Best value guidance, performance indicators and standards

2.— (1) The Department may issue guidance to councils as to the carrying out of their functions under this Act.

(2) In particular such guidance may cover—

(a) the arrangements to be made by a council under section 1(1);

(b) the conduct of, and matters to be included in, a best value review of any functions of a council;

(d) the application of performance indicators and standards specified under subsection (3).

(3) The Department may specify—

(a) indicators ("performance indicators") by reference to which a council's performance in exercising functions can be measured;

(b) standards ("performance standards") to be met by councils in relation to performance indicators specified under paragraph (a).

(4) Different performance indicators or standards may be specified—

(a) for different functions;

(b) to apply at different times.

(5) Before specifying performance indicators or standards, the Department shall consult—

(a) persons appearing to it to represent councils; and

(b) such other persons (if any) as it thinks fit.

(6) In specifying performance indicators and standards, and in deciding whether to do so, the Department shall aim to promote improvement of the way in which functions of councils are exercised, having regard to a combination of economy, efficiency and effectiveness.

(7) The Department shall publish—

(a) any guidance issued by it under this section; and

(b) any performance indicators or standards specified by it under this section.

Audit of best value performance improvement plans

Audit of plans

3.— (1) A best value performance improvement plan published by a council for a financial year under section 1(4) shall be audited by a local government auditor.

(2) An audit of a best value performance improvement plan is an inspection for the purpose of establishing whether the plan was prepared and published in accordance with section 1(4) and any guidance under section 2.

(3) In relation to a council's best value performance improvement plan the auditor shall issue a report—

(a) certifying that he has audited the plan;

(b) stating whether he believes that it was prepared and published in accordance with section 1(4) and any guidance under section 2;

(d) if appropriate, recommending procedures to be followed by the council in relation to the plan;

(e) recommending whether the council or the Department should take any particular action in relation to the plan.

(4) Where, in the course of the audit of a council's best value performance improvement plan, it appears to the auditor that a council may not, in respect of any matter, have complied with—

(a) the requirements of this Act; or

(b) any guidance under section 2,

he may (as part of that audit) carry out an inspection of the council's compliance with those requirements or that guidance in respect of that matter.

(5) Where the auditor carries out an inspection under subsection (4), the report issued under this section shall also—

(a) mention any matter in respect of which the auditor believes that the council has failed to comply with—

(i) the requirements of this Act; or

(ii) any guidance under section 2; and

(b) recommend whether the council or the Department should take any particular action in relation to that matter.

(6) The auditor shall, by such date as the Department may specify, send a copy of a report issued under this section to—

(a) the council concerned; and

(b) the Department.

Audits under section 3: ancillary provisions

4.— (1) An auditor has a right of access at all reasonable times—

(a) to any premises of the council concerned; and

(b) to any document relating to the council which appears to him to be necessary for the purposes of the audit.

(2) A council shall provide an auditor with every facility and all information which he may reasonably require for the purposes of the audit.

(3) In particular a council shall ensure that—

(a) any employee of the council holding or accountable for any such document as is mentioned in subsection (1)(b) gives the auditor such information and explanation as the auditor thinks necessary; and

(b) if so required by the auditor, the employee attends before the auditor in person to give the information or explanation or to produce the document.

(4) An auditor shall have regard to any code of practice which—

(a) prescribes the way in which auditors are to carry out their functions under section 3; and

(b) is approved by the Department for the purposes of this Act.

(5) A council shall in respect of each audit pay to the Department such sum as the Department thinks reasonable.

(6) In this section—

"audit" means an audit under section 3;

"auditor" means a local government auditor carrying out such an audit.

Response to audit

5.— (1) A council shall publish any report received in accordance with section 3(6)(a).

(2) The following subsections apply where a council receives a report which contains a recommendation under subsection (3)(c), (d) or (e) or subsection (5)(b) of section 3.

(3) The council shall prepare a statement of—

(a) any action which it proposes to take as a result of the report; and

(b) its proposed timetable.

(4) The council shall incorporate the statement in its next best value performance improvement plan.

(5) The council shall send a copy of the statement to the Department before the end of—

(a) the period of 6 weeks from the day on which the council receives the report; or

(b) such other period as the Department may specify.

Exercise of functions by councils

Contracts: exclusion of non-commercial considerations

6.— (1) The Department may by order provide, in relation to councils, for a specified matter to cease to be a non-commercial matter for the purposes of Article 19 of the Local Government (Miscellaneous Provisions) (Northern Ireland) Order 1992 (NI 6) (council contracts: exclusion of non-commercial considerations).

(2) An order under this section may—

(a) provide for a matter to cease to be a non-commercial matter for specified purposes or to a specified extent;

(b) apply in relation to specified councils, functions or contracts;

(d) include supplementary, incidental, consequential and transitional provisions

(3) In exercising a function regulated by Article 19 of the Local Government (Miscellaneous Provisions) (Northern Ireland) Order 1992 (NI 6) with reference to a matter which is the subject of an order under this section a council shall have regard to any guidance issued by the Department.

(4) No order shall be made under this section unless a draft of the order has been laid before, and approved by resolution of, the Assembly.

General

Power to disapply

7.— (1) The Department may by order provide that a council specified, or of a description specified, in the order is not to be subject, in relation to such functions as may be specified, to a duty—

(a) which is specified in the order; and

(b) to which the council would otherwise be subject under this Act.

(2) An order under this section—

(a) may include supplementary, incidental, consequential and transitional provisions;

(b) shall not be made unless a draft of the order has been laid before, and approved by resolution of, the Assembly.

Interpretation

8.— (1) In this Act—

"the Department" means the Department of the Environment;

"the principal Act" means the Local Government Act (Northern Ireland) 1972 (c.9).

(2) Expressions used in this Act and in the principal Act have the same meaning in this Act as in that Act.

Amendment and repeals

9.— (1) In section 74(1) of the principal Act (appointment of local government auditors to audit certain accounts) after "accounts" there shall be inserted "and other matters".

(2) Part II of, and Schedule 1 to, the Local Government (Miscellaneous Provisions) (Northern Ireland) Order 1992 (NI 6) (competition) are hereby repealed.

(3) In Schedule 5 to the Waste and Contaminated Land (Northern Ireland) Order 1997 (NI 19) paragraph 6 is hereby repealed.

Commencement

10. This Act shall come into operation on 1st April 2002.

Short title

11. This Act may be cited as the Local Government (Best Value) Act (Northern Ireland) 2001.