Agenda item

Members considered a report that presented the six-monthly update to the Committee.  In particular, the report included the current corporate strategic risk assessment and a summary of the management and mitigating actions to address the identified risks.

          In discussion, the following points were raised:-

(a)   Since the implementation of the Local Authority Controlled Company (LACC) was identified in the Corporate Risk report, the Chairman took the opportunity to raise his concerns over the proposals and he proceeded to propose the following recommendation:-

‘That the Committee RECOMMEND to the Council that all work relating to the Local Authority Controlled Company should be halted immediately due to the large number of financial, marketing, legal and staffing risks identified in the Grant Thornton ‘Options Appraisal for Establishment of a Local Authority Controlled Company (LACC) report.’

Whilst the proposal had not been seconded, the Chairman invited officers to respond.  In so doing, officers advised that:

o  the identified risk would only be applicable in the event of the LACC being established;

o  in the event of the commissioned independent Business Case concluding that the LACC would not be viable, then officers would not be recommending its establishment;

o  the business case itself would be designed to mitigate against each of the identified risks.  In addition, the Business Case would be looking at all aspects of risk, exit strategies and budgetary forecasts;

o  the intention being for the business case to be considered by the Overview and Scrutiny Panel and the Executive before it was ultimately presented to full Council at the end of June 2016;

o  a series of Member Briefings and Drop-in Sessions had been put in the diary to aid Member understanding of the proposals.

Members of the Committee felt that the Chairman’s proposal was somewhat pre-emptive and that it was therefore more appropriate to wait for the business case to be published.  As a consequence, the Chairman’s proposal was not seconded.

However, Members did confirm their sympathy with some of the concerns expressed by the Chairman and felt it to be regrettable that the membership had not raised its concerns before the decision had been taken to spend a considerable amount of money to commission a Business Case.  In light of these views, the following recommendation was PROPOSED and SECONDED:-

‘That, due to the large number of financial, marketing, legal and staffing risks identified in the Grant Thornton ‘Options Appraisal for Establishment of a Local Authority Controlled Company (LACC)’ report,  the Committee wishes to make its extreme concerns regarding the LACC proposals known to the wider Council membership.’

When put to the vote, this recommendation was declared CARRIED.

(b)  The Committee was of the view that there was a lack of information currently available to Members in relation to recruitment and staffing levels.  For example, Members felt that information on staffing numbers, agency numbers, use of consultants and the associated costs of these were of particular interest and should therefore be a regular standing agenda item for the Committee.

Members proceeded to PROPOSE and SECOND the following recommendation:-

‘That information on staffing numbers, agency numbers, use of consultants and the associated costs should be a regular agenda item for the Audit Committee to consider for the foreseeable future.’

When put to the vote, the recommendation was declared CARRIED.

It was then:

            RESOLVED

1.    That, due to the large number of financial, marketing, legal and staffing risks identified in the Grant Thornton ‘Options Appraisal for Establishment of a Local Authority Controlled Company (LACC)’ report,  the Committee wishes to make its extreme concerns regarding the LACC proposals known to the wider Council membership;

2.    That information on staffing numbers, agency numbers, use of consultants and the associated costs should be a regular agenda item for the Committee to consider for the foreseeable future; and

3.    That the Committee has reviewed the six-monthly strategic risk assessment.