The municipal council is responsible for: electricity distribution; water and sewerage services; refuse collection; and public transport. The municipality manages the budgets for all these services each month as part of the council's general operations, and there is usually a (small) cost to the local taxpayer. Many people criticise the services, saying they are inefficient and unresponsive. An election is coming up.

You have just received a proposal from a multinational company, General Business Inc, to form a 50/50 joint venture to run all the services in future, with no subsidy from the municipal budget. They will pay the municipality for half the shares in the company, and use their management expertise to run the services more efficiently. They will also fly a group of councillors to Brazil for a week to help you appreciate how well General Business can run public services.

There is an alternative proposal from a management/union group to form an arm's-length municipal company, and run the services through that.

Group A are the elected representatives on a local council/municipality. You have to prepare all the arguments in favour of accepting General Business' proposal (and the trip to Brazil). One of you should represent the view of consumers.

Group B are a joint management/trade union group from the services division.

You have to draw up an alternative plan to the 50/50 venture with the multinational, and give the councillors reasons for supporting your proposal instead of the multinational's. You should discuss:

Setting up a separate company, owned by the municipality

The implications of eliminating the municipal subsidy

What efficiency advantages you have compared with the multinational.

One of you should represent the view of consumers.