Local government heads wary of trade agreement

2 May 02
Local government leaders are demanding an urgent meeting with the government to clarify the effects that a World Trade Organisation agreement will have on local authorities.

03 May 2002

Local Government Association chief executive Brian Briscoe is to write to Sir Robin Young, permanent secretary at the Department of Trade and Industry, to seek discussions on the ramifications of the General Agreement on Trade in Services (Gats), which has been signed by more than 140 countries.

And LGA chair Sir Jeremy Beecham intends to raise the issue at the next meeting of the Central Local Partnership, the forum where LGA leaders and government ministers meet.

Officials are concerned that the agreement, which has created a free market in the service sector, could limit a range of council powers, such as the procurement of services and the exercise of planning controls.

Michael Ashley, director of the Local Government International Bureau, which represents LGA members abroad, told Public Finance that local authorities had not been consulted by the DTI.

He said: 'No one has consulted local government, even though we are a substantial group that could be affected by this.

'Industry seems to have been consulted very extensively, though,' he added. 'There is genuine concern that there is potential for affecting local government's ability to function effectively.'

PFmay2002

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