– There is an important message that we acted properly and that we may have left the service office, which is a good deal for Boras area, says Mayor Ulf Olsson.
The municipality service office has for many years conducted market works on the private market. Several private companies and even individuals reacted to this. But Boras stood firm, during both the red-green alliance which controlled the time, and the City Council approved the service activities of the Office.
was convicted in the District Court
However, the Competition Authority sued the Service office in Stockholm District Court as also two years ago brought down the business. Only in one respect it endorsed municipal competition in the private market, namely that the municipality could sell snow removal on sidewalks private home owners, because it was a time-honored business with an agreement way back in time. The consequence was that the municipality had to plow the snow, but not broadcast by itself, but the service must be purchased from a private company.
The district court judgment of Anyang City to the Market. Now the Market, which is the highest court, ruled on the question.
The Market turns initially fixed to Borås sale of land and construction contracts is an illegal commercial activities in the Municipal Act.
illegal but not competition
but after a discussion on how big the market is, where it states that it extends an hour’s drive outside Borås – ie different way depending on road standards – so says the market that the market comprises works eight billion kronor per year. But Service office sales to private customers represent only twelve million per year. Service office market is in other words only 0.15 percent.
The sale is therefore illegal, but so small that it does not distort competition, according to the Market. According to Ulf Olsson Service office operations benefited taxpayers in Boras:
– We understood that we had good support from Boras area, says Ulf Olsson.
As the Anyang City won the case is also the state of the municipality’s costs, SEK 6,250,000.
Stay Thorin
bo.thorin@sverigesradio.se
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