Section 66 of the Local Government Act 2001 (as amended) refers to the establishment of subsidiary companies by local authorities.
Section 66(4)(i) provides that a local authority may “enter into such contracts and make such other arrangements (including the incorporation of one or more than one company) as the authority considers necessary or expedient either alone or jointly with any other local authority or public authority or any other person”.
Some local authorities may therefore have an interest in certain companies. These companies are either controlled or jointly controlled by, or associated with, that local authority. The interest of local authorities in companies is included in Appendix 8 of the local authority’s annual accounts.
In advance of establishing any new company, Local Authorities must make themselves aware of the National Government and Eurostat accounting and reporting requirements. The Central Statistics Office (CSO) is responsible for the official reporting of Ireland’s General Government Deficit/Balance, Debt and other Government Finance Statistics, and any new or existing Local Authority companies may fall within the general Government Sector and therefore have to be taken into account for the official reporting of Ireland’s General Government Deficit/Balance, Debt and other Government Finance Statistics.
Responsibility for the establishment of the SPV therefore lies with Dublin City Council and, in doing so, the Council will need to adhere to the requirements outlined above and the requirements of relevant legislation.
