b'vehicle? Where two or more authorities combine or pool resources to deliver a better output for all and to make savingscan such an arrangement properly be described as commercial trading within section 95? Setting up a company and all the accompanying governance arrangements may not always be cost effective or appropriate depending on the nature of the shared service initiative under consideration. For many collaborative public sector initiatives, setting up a company will be a time-consuming and expensive business and may not lead to the efficiencies required. Trading by and between public bodies? 5.3 There is one other very important distinguishing feature with shared service arrangements, in that the enterprise will (usually) be exclusively comprised of public bodies who will not be seeking to sell services or goods to the general public or to any other party such as a private sector entity. In this way the market is contained, easily identified and limited in range and potential risk. The trading partners will all be likely to be sharing the risk and rewards of the venture.Another way of putting it may be that the enterprise is established to facilitate better public sector administration. This aspect is very relevant when the EU procurement issues are examined (see 5.11 below). Shared services continue to be a popular approach taken by local authorities, with at least 95% of local authorities sharing services. Shared services do not need to be delivered through a company.Other powers to trade 5.4 A further factor potentially limiting the use of section 95 (commercial trading) is the restriction on its use, especially if there are other powers which facilitate similar ends without such restrictions. The Local Authorities (Goods and Services) Act 1970 (the 1970 Act) remains on the statute books and is available for those public bodies fortunate enough to come within its confines (ie designated public bodies). This is an admirably simple and very short statute (3 pages). It allows local authorities to enter into contracts and agreements with other local authorities and public bodies (as defined or designated under statutory instrument) to undertake a range of functions(see the Summary Chart at 6.19 below). The 2003 Act has left these powers unaffected and it remains available to empower local authorities (and other designated public bodies) to trade with each other. The 1970 Act was enacted in a very different financial and political environment but it is still very relevant (perhaps even more relevant) to local authorities given the current impetus to generate income through, amongst other things, selling services to other authorities and public bodies. There are many examples of local authorities collaborating with each other to deliver a more effective and efficient service, for example, HR and other back-office functions. Arrangements under the 1970 Act may include, for example, collaborating to deliver professional services which 59'