HC Deb 11 November 1997 vol 300 c815

Lords amendment: No. 14, after clause 8, to insert the following new clause— Contracting out of functions in connection with certified contracts— .—(1) An authorisation given by virtue of an order under section 70 of the Deregulation and Contracting Out Act 1994 (authorisation by local authority of exercise by another person of functions of authority for period not exceeding ten years) may specify that it is to be for a period exceeding ten years if it is given in connection with a certified contract. (2) But an authorisation given in connection with a certified contract may not by virtue of subsection (1) specify that it is to be for a period exceeding the shorter of—

  1. (a) the period for which the contract is to operate, and
  2. (b) forty years.
(3) For the purposes of this section an authorisation is given in connection with a certified contract if
  1. (a) the authority by which it is given is a local authority for the purposes of this Act,
  2. (b) the authority and the authorised person are parties to the contract, and
  3. (c) the authorisation is given to enable the authorised person to perform or better perform his obligations under the contract."

10.30 pm
Mr. Raynsford

I beg to move, That this House doth agree with the Lords in the said amendment.

Mr. Deputy Speaker

With this, it will be convenient to take Lords amendments Nos. 16 to 18.

Mr. Raynsford

I beg to move that this House doth agree with the Lords in the said amendment.

The effect of amendment No. 14 is that where a local authority is to enter into a certified contract, it may authorise the contractor to exercise any function that it is permitted to contract out by an order under part II of the Deregulation and Contracting Out Act 1994 for the period for which the contract is to operate, subject to a maximum of 40 years. The 1994 Act at present limits authorisations to 10 years, which would limit the scope for partnerships.

Amendments Nos. 16 and 17 are consequential. The effect is that the new clause will be treated in the same way as clauses 2 to 8. It will come into force at the same time as those clauses, on a day to be appointed by the Secretary of State, and it will apply to any contract entered into after 12 June 1997.

Amendment No. 18, which slightly modifies the title of the Bill, is required to reflect the subject matter of the new clause.

Lords amendment agreed to.

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