2 August 2007
LAML Takes on Challenge
Nathan Elvery, Chairman of the London Authorities' Mutual Limited (LAML) and Director of Finance and Resources at the London Borough of Croydon, commenting on the story run in the Local Government Chronicle today (2 nd August 2007) on a legal challenge to LAML, said "LAML has been named as an interested party in a request for a judicial review into the establishment of the mutual. The project to develop the mutual has taken over two years to deliver. Inevitably, with a project of this size and import we have sought expert legal opinion along the way on all aspects surrounding the development of the company, of which the vires issue was just one. Legal opinions were reviewed and revisited as the project developed and one of our members sought their own legal opinion which re-confirmed our understanding of the powers of local authorities. We have been satisfied beyond all reasonable doubt that there are sufficient implicit and explicit powers for local authorities to rely upon. The mutual proposition has gone through a rigorous independent external review process conducted by the Financial Services Authority and the Audit Commission and the legality of the proposition was never an issue.
This challenge goes to the heart of the shared services agenda and is one which the Board of LAML is determined to fight with the utmost vigour. We are confident of ultimate success and welcome this early opportunity to demonstrate the robustness of the proposition and the degree of preparation and understanding that has been exercised to deliver this cutting edge change.
It is gratifying that our sponsoring partners, the London Centre of Excellence, recognise the gravity of the implications of this challenge to joint working initiatives and have agreed to make financial resources available to fund some of the costs associated with resisting this challenge".
For further details, contact Malcolm Davies, Head of Risk Management & Insurance Croydon Council, 020 8760 5738. Email malcolm.davies@croydon.gov.uk
Notes to editors
1. The London Authorities' Mutual Limited was authorised as an insurance company by the Financial Services Authority in March 2007 and commenced assuming risk in April 2007. It was created by London Boroughs to serve the corporate insurance requirements of London Boroughs
2. LAML is open to all 32 London Boroughs, the Corporation of London and the Greater London Authority. The project has been funded by the London Centre of Excellence and led by the London Borough of Croydon
3. The founding members of LAML are the London Boroughs of
Brent
Camden
Croydon
Hammersmith and Fulham
Haringey
Harrow
Islington
Kinston
Lambeth
Tower Hamlets
4. Funded by Communities and Local Government the nine Regional Centres of Excellence are the lead change agents for local government efficiency. They are supporting councils to secure millions of pounds in efficiencies that are being re-invested in better front-line services. Uniquely placed to bring councils together, they are run by local government, they bring additional capacity and are results focused.