HC Deb 13 January 1997 vol 288 c98W
Mr. Allason

To ask the Secretary of State for the Environment from what date the shadow unitary local authorities scheduled to come into effect in April 1998 are permitted to enter into PFI contracts. [10439]

Sir Paul Beresford

Where an authority gaining unitary status is an existing county or district council, it will be a continuing authority and there is no need for a shadow council; the role of the authority acquiring new functions is expanded to encompass the shadow role. In these cases, whether the authority can enter a PFI contract before it assumes full unitary powers depends on whether the contract pertains to one of its existing or one of its new functions. If it concerns one of the new functions, the authority can enter into a contract only if it will facilitate the preparation for the discharge of its new functions.

There are only two authorities which will be new authorities with a shadow council elected in 1997 and with assumption of full unitary status on 1 April 1998. A shadow authority may enter into contracts only pursuant to those functions which include powers to facilitate the preparation for the discharge of its new functions.