Intermunicipal co-operation Finland

1. Intermunicipal co-operationFinland Juha Myllymäki Legal Counsel The Association of Finnish Local and Regional Authorities

2. Local authorities • Population in Finland 5,3 million • 432 municipalities • Average 12 083 (2003) • Municipalities are self-governing units • Provide basic services relating to social welfare, health care, education, culture, environment and technical infrastructure • Different forms of co-operation widely used

3. Legal basis for co-operation Local Government Act • Joint authorities • legal public entities established by local authorities • set up by an agreement • no private owners/members • any function on behalf of local authorities (health care, vocational education, social welfare, waste, water, etc.) • statutory joint authorities (required by law) • Specialist care, care for mentally disabled, land use planning

4. Legal basis for co-operation • Purchase of services - agreement between authorities • Service provision by local authority under supervision of a joint organ - services provided by one local authority on behalf of another local authority (“host”) - no separate, legal person - local authority using the service can participate in decision making by naming a representative to the organ in the “host” responsible for producing/organising services

5. Legal basis for co-operation • Limited companies • Companies governed by private law • can perform functions other than those involving the use of public power • private shareholders possible

6. Definition of ”In-house ” PP - Scope of application Local authority B Joint organ Ltd 100%Local authority Limited company private/local authority Local authority Joint authority Private company In-house

7. Problems occurred • Public procurement - scope of application • Host local authority model • Other agreements • Limited companies and joint authorities owned by two or more local authorities • Uncertainty  development stops