Agenda item

O&S.34/18     

The Panel considered a report that sought to recommend that the Commercial Property Strategy be adopted.  Furthermore, the report also sought to recommend that a total borrowing limit of £60 million be agreed for the Strategy.

During discussion, the following points were raised:-

(a)   As with the earlier comments during the debate on the Medium Term Financial Strategy (Minute O&S.33/18(b) refers), the Panel was reluctant to make any recommendations on the total borrowing limit and felt that it should be a matter for the Audit Committee to consider in detail at its next meeting;

(b)   With regard to the proposed Governance arrangements, some concerns were expressed.  In particular, it became apparent that there were differing views over whether or not the Investment Member Group was to become a formal decision-making body.  In the event of the Group becoming a constituted decision-making body, then serving non-Executive Members roles (that require independence) would be compromised.  As a way forward, it was suggested that the non-Executive Members could attend meetings of the Group in a non-voting capacity.

Such was the extent of the concerns and differing views, that the Panel asked that further consideration be given to the Terms of Reference for the Member Group and the proposed delegated decision-making process.  A recommendation to this effect was subsequently PROPOSED and SECONDED and when put to the vote declared CARRIED;

(c)       A debate ensued on the proposal for the Head of Paid Service to be given delegated authority, in consultation with the Section 151 Officer and the Leader of Council and the Chair of the Member Group.  Some Members could not understand the suggestion whereby the Section 151 Officer (who was only a consultee in the decision) would then have a casting vote in the event of a ‘split decision’.  Furthermore, the point was raised on a number of occasions that the Council was a Member led authority and the governance arrangements should reflect this fact.

(d)   To reflect his personal concerns, a Member formally PROPOSED that:-

‘In light of the lack of information available at this time, the Commercial Property Strategy should not be approved.’

However, this proposal was not seconded and was therefore not debated.

It was then:

RESOLVED

That the Overview and Scrutiny Panel wish to express the following views to the Executive:-

1.     that the Panel endorse the principle of a Commercial Property Strategy that includes the following multiple objectives:

-       to support regeneration and the economic activity of the District;

-       to enhance economic benefit;

-       to grow business rate income;

-       to assist with the financial sustainability of the Council as an ancillary benefit;

-       to help the Council continue to deliver and/or improve frontline services in line with the Council’s adopted strategy and objectives; and

2.     That the proposed Commercial Property Strategy be revised, with a detailed Terms of Reference for the Investment Member Group being drafted and further consideration being given to the proposed delegated decision-making process in time for consideration at the next Executive meeting on 13 September 2018.

(NOTE: in accordance with Council Procedure Rule 15.6, Cllr J T Pennington requested that his vote against this recommendation be formally recorded).