Local Authority Trading Company: Difference between revisions

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A '''Local Authority Trading Company''' (LATC) is a company wholly owned by a Local Authority to operate certain waste services. This is an an alternative to the out sourcing of services to a private waste management company or the delivery of the services by an in house delivery team within the Authority.

==Teckal==

The '''LATC''' is often referred to as a '''Teckal''' company. The term ‘Teckal’ comes from a particular legal case and the test on whether a local authority owned company qualifies for the ‘Teckal’ exemption in the EU Procurement Regulations (''Teckal SrL v.Commune di Viano'', Case C-107/98 (1999) ECR I-8121)<ref>[https://www.rmt.org.uk/news/publications/teckal/ RMT Teckal], Nov 2015</ref> i.e. the Authority can pass the work to the company without having to put it out to competitive tender. In Scotland the same arrangement is known as an '''Arm’s Length External Organisation''' (ALEOs).

For any Local Authority to be able to introduce an LATC it must be within the 'Teckal ~~parameters~~' of which there are two tests<ref name="CIPFA">https://www.cipfa.org/policy-and-guidance/articles/teckal-the-basics-explained/ CIPFA</ref>.

==Teckal Parameters==

For any Local Authority to be able to introduce an LATC it must be within the '''Teckal Parameters''' of which there are two tests<ref name="CIPFA">https://www.cipfa.org/policy-and-guidance/articles/teckal-the-basics-explained/ CIPFA</ref>.

*the control test

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*The constitution must consider the level of autonomy of the board and the authority must have the power to exert control over the LATC.

*That the local authority holds all of the share capital in the company will usually (but not always) be indicative of control.

==References==

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 A '''Local Authority Trading Company''' (LATC) is a company wholly owned by a Local Authority to operate certain waste services. This is an an alternative to the out sourcing of services to a private waste management company or the delivery of the services by an in house delivery team within the Authority.
+==Teckal==
 The '''LATC''' is often referred to as a '''Teckal''' company. The term ‘Teckal’ comes from a particular legal case and the test on whether a local authority owned company qualifies for the ‘Teckal’ exemption in the EU Procurement Regulations (''Teckal SrL v.Commune di Viano'', Case C-107/98 (1999) ECR I-8121)<ref>[https://www.rmt.org.uk/news/publications/teckal/ RMT Teckal], Nov 2015</ref>  i.e. the Authority can pass the work to the company without having to put it out to competitive tender. In Scotland the same arrangement is known as an '''Arm’s Length External Organisation''' (ALEOs).
-For any Local Authority to be able to introduce an LATC it must be within the 'Teckal parameters' of which there are two tests<ref name="CIPFA">https://www.cipfa.org/policy-and-guidance/articles/teckal-the-basics-explained/ CIPFA</ref>.
+==Teckal Parameters==
+For any Local Authority to be able to introduce an LATC it must be within the '''Teckal Parameters''' of which there are two tests<ref name="CIPFA">https://www.cipfa.org/policy-and-guidance/articles/teckal-the-basics-explained/ CIPFA</ref>.
 *the control test
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 *The constitution must consider the level of autonomy of the board and the authority must have the power to exert control over the LATC.
 *That the local authority holds all of the share capital in the company will usually (but not always) be indicative of control.
+==References==
+<references/>