Public sector businesses - part II
Yvonne Harvey, Contributor

Hi. This is our last lesson for this term. We will continue with our look at the types of businesses in the public sector of a mixed economy by considering local authorities. This type of business is also known as local government, parish council, boroughs and municipal corporations.

Such entities are under the authority of the parliament of the country. A minister of central government is put in charge of local government affairs.

An overhead shot of the Penwwood High School Cadet Corps during a training session at the school, recently. -Anthony Minott Freelance photographer

Local Authorities

These bodies are set up to deal with matters of local concern. The councillor in charge is elected at local government elections, by those who live in the area concerned and his or her powers, duties and functions are defined by an Act of Parliament.

Each local government consists of a council with a chairman or mayor at its head. This chairman or mayor is elected from among the councillors and presides over the meetings of the council. He or she also represents the town or district on important civic occasions, such as the opening of a new hospital or sports stadium.

Where there are a large number of councillors, small groups called committees are formed and assigned specific tasks.

They work at the 'grassroots' in order to understand people's needs. These are present at council meetings.

The powers of the local authority differ from country to country, however, in most countries, they are responsible for such things as water supply, drainage, sewerage, garbage disposal, street cleaning, community health services, maintenance of roads, parks, markets and gardens, cleaning of drains and gullies, bushing of roads, provision of fire services, poor relief and the maintenance of sports facilities.

These entities also oversee and report on projects undertaken in the community.

The local authority is financed through central government grants, rates (property taxes) and loans.

The central government ensures that the money is properly spent by employing auditors, whose job it is to examine and check the accounts of the local authorities.

Local authorities play an important role in the commercial and economic development of the country.

Advantages of local authorities

1. The people at the local level have a say in what goes on in their community. Therefore, they actually participate in the decision making at this level.

2. The input of the people helps to guide and shape the overall policies of government.

3. Social, physical, economic, political and other issues are addressed at the local level.

Disadvantages of local authorities

1. The continuity of projects and activities is affected by a change of government.

2. Resources are not always available; therefore, local authorities experience setbacks in their projects and activities.

Activity

Now it is time to give you your assignment.

(a) Define 'local authorities'. (2 marks)

(b) Briefly describe the organisational structure of the local authority. (3 marks)

(c) List four activities that may fall under the responsibilities of the local authorities. (4 marks)

(d) State three sources of finance for local authorities. (3 marks)

(e) Discuss two advantages and two disadvantages of local authorities.(8 marks)

Total marks: 20

I trust that you will all have a quiet and rewarding holiday. Remember, balance is one of the keys to success. Keep safe my friends. Until we meet again, next term, if it is God's will.

Yvonne Harvey teaches at Glenmuir High School.