The Local Government (Relevant Authorities) (Power to Trade) (Wales) Order 2022

• Citation: S.I. 2022/424 (W.)
• Sections: 5

Section 1 Title, commencement, application and interpretation

(1) The title of this Order is the Local Government (Relevant Authorities) (Power to Trade) (Wales) Order 2022 and it comes into force on 5 May 2022.

(2) This Order applies in relation to Wales.

(3) In this Order—

“ company ” (“ cwmni ”) means a company within the meaning of Part 5 of the Local Government and Housing Act 1989 ;

“ ordinary functions ” (“ swyddogaethau cyffredin ”) has the meaning given in section 95(7) of the Local Government Act 2003;

“ relevant authority ” (“ awdurdod perthnasol ”) means—

county councils or county borough councils;

community councils which are eligible community councils within the meaning of section 30(1) of the Local Government and Elections (Wales) Act 2021 (“ the 2021 Act ”) ;

National Park authorities;

fire and rescue authorities, constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies;

corporate joint committees established by regulations made under Part 5 of the 2021 Act.

Section 2 Authorisation to trade in function-related activities and conditions to be met before exercising the power to trade

(1) Subject to paragraphs (2) and (3), a relevant authority is authorised to do for a commercial purpose anything which it is authorised to do for the purpose of carrying on any of its ordinary functions.

(2) Before exercising the power conferred by paragraph (1), the relevant authority must—

(a) prepare a business case in support of the proposed exercise of the power, and

(b) approve that business case.

(3) A “business case” under article 2(2) means a comprehensive statement as to—

(a) the aims and objectives of the proposed exercise of the power;

(b) the costs, investments and other resources required to achieve those aims and objectives;

(c) the financial outcomes that are expected to be achieved by the proposed exercise of the power;

(d) any other relevant outcomes that are expected to be achieved by the proposed exercise of the power;

(e) any risks associated with the proposed exercise of the power including an assessment of the severity of those risks, and any actions that the authority proposes to take to mitigate those risks;

(f) the impact (including on the terms and conditions of employment) on any staff that it intends to supply to a company through which it proposes to exercise the power;

(g) the intended arrangements for the staffing of the company through which it proposes to exercise the power, including the proposed terms and conditions of employment of any staff to be employed.

Section 3 Publication of business case

A relevant authority must publish any business case approved in accordance with article 2(2)(b) as soon as reasonably practicable.

Section 4 Requirement to recover costs etc

A relevant authority must recover the costs of any accommodation, goods, services, staff or any other thing that it supplies to a company through which it is exercising the power conferred by article 2(1), from that company.

Section 5 Revocation

The Local Government (Best Value Authorities) (Power to Trade) (Wales) Order 2006 is revoked.