Yesterday Environment Minister Tony Baldry met with both the local authority associations and trade organisations and asked them to comment on a draft guidance note.
Mr Baldry said: 'I have today had very useful meetings with representatives of the local authority associations and the main industry bodies to discuss a number of issues arising from CCT and TUPE.
Following these meetings I have asked for comments on a draft guidance note, which we intend to issue as quickly as possible, to help clarify these issues.
'We are very keen to do all possible to ensure that CCT continues to work smoothly, and to this end we issued regulations and guidance to local authorities earlier this year.
Since then individual local authorities and tenderers have sought our views on various other aspects of CCT and TUPE.
'Local residents have benefited enormously from Compulsory Competitive Tendering. Standards of service have improved, and there have been financial savings averaging 7percent, and in some cases up to 20percent.
We intend that local residents, local authorities and industry continue to benefit from this.'
The local authority associations and industry representatives have been asked to respond by the 18 October 1993.
The Compulsory Competitive Tendering (CCT) legislation requires that, before local authorities carry out certain work or provide certain services using their in-house workforce they must first invite competitive tenders.
The activities in question are: construction work and building maintenance; highway construction and maintenance; refuse collection and street cleaning; grounds maintenance; building cleaning; schools and other cleaning; vehicle maintenance; management of leisure facilities.
CCT is being extended to a range of local authority professional functions, including legal and finance work, engineering and architecture.
The Transfer of Undertakings (Protection of Employment) Regulations 1981 implement the EC Acquired Rights Directive 1977.
The Directive and TUPE regulations provide that where a 'relevant transfer of an undertaking' occurs, the new employer takes over responsibility for the employment contracts of the employees currently engaged in the undertaking, who would transfer on their previous terms and conditions. The contracting out of work following market testing may be subject to the TUPE Regulations, but only where the contract involves the transfer of an undertaking.
The Chancellor of the Duchy of Lancaster issued guidance on 11 March 1993 on the relevant factors in assessing whether a contract may involve a transfer of an undertaking.
The Department's circular 10/93 issued on 14 June 1993, gave further guidance on the TUPE regulations in relation to the conduct of CCT.