§ Mr. Hutton
To ask the Secretary of State for the Environment what plans he has to publicise the effects of the changes being made to the Transfer of Undertakings (Protection of Employment) Regulations 1981 on compulsory competitive tendering.
§ Mr. Robin Squire
The Trade Union Reform and Employment Rights Bill currently before Parliament amends the Transfer of Undertakings Regulations to bring them into line with the EC acquired rights directive, by removing the distinction between commercial and non-commercial undertakings. It is not the case that the amendment has the effect of extending the regulations to the public sector. My Department's view remains that the regulations will not normally apply where local authority services are contracted out, that is, where a private company contracts to provide a service in consideration of a fee. Such a transaction does not normally, in our opinion, involve the transfer of an undertaking within the meaning of the regulations.