Representation: According to Article 98 of the Local Government Act the State recognises the Association of Icelandic Local Authorities as the common guardian of the interests of Icelandic municipalities.

Information and consultation:
Article 128 of the Local Government Act provides that the national government shall act in close consultation with the Association of Icelandic Local Authorities regarding those matters concerned with the division of responsibility between the State and municipalities, and other relations between these parties.

The consultation procedure is defined in section XIII of the Local Government Act of 2011 and in collaboration agreement between the Association of Local Authorities and the Government of Iceland[1].

Governmental proposals for new legislation are usually prepared by the relevant ministry. It is common that an ad hoc committee is appointed to assist the ministry which may include representatives of various stakeholders, including representatives from the Association of the Local Authorities. Even if a committee is not appointed, the ministries usually consult the association when they are preparing proposals for new legislation or regulation which affect the municipalities.

The national Parliament also consults the association regarding all proposals for new legislation. In most cases, it also sends proposals directly to the municipalities to give them the opportunity to provide their opinion.

Coordination: The collaboration agreement between the Association of Local Authorities and the Government establishes structures for the consultation and collaboration procedures between the association and the ministries.

There is at least one annual consultation meeting with the Minister of Finance and the Minister of the Interior (who is also the Minister of Municipal Affairs), and other ministers if relevant.

Two standing subcommittees have been set up by the new collaboration agreement, with representatives from the association and the mentioned ministries. One deals with financial affairs and the other with labour market affairs. These committees are supposed to collect data on development in their respective spheres and present them at the annual minister meetings. Parallel to these structures, informal contacts between the association and the State institutions play an important role in the collaboration procedure.


[1] Association of Icelandic Local Authorities, Communication between central and local government​