Agenda item

Findings of the Informal  Market Analysis Group

E.14/16          

Members were asked to consider a report that set out and commented on the findings of a detailed business case which had been prepared by PriceWaterhouseCoopers (PWC) at the request of Members on the potential establishment of a Local Authority Controlled Company (LACC).  The preparation of the business case followed the Council’s decision on 16 February 2016 (minute reference 63/15) that a detailed business case and implementation plan be produced to enable further consideration of the merits of establishing a LACC jointly with West Devon Borough Council.

The Leader introduced the report and in doing so set out the background to the decision to progress with a LACC.  He proposed an additional recommendation to those tabled (shown below as recommendation 3). 

During discussion, the following points were raised:

·                The Executive Director (SD&CD) responded to detailed questions regarding the set-up of the Joint Steering Group (JSG), the background to the proposal in terms of other options considered, capacity and the value of the existing contracts that would be transferred to the LACC;

·                Local authorities in Oxfordshire were progressing with a similar proposal and where possible the Council was exchanging information and learning points with them;

·                PWC representatives responded to questions on whether the changing political climate would affect their current advice, on VAT matters, on additional management skills; and advised how they had erred on the side of prudence in their assumptions;

·                One Member asked that meetings of the JSG were properly resourced and that minutes were taken and published for the benefit of all Members;

·                Members of the Informal Market Analysis Group set out the background to their supplementary paper;

·                One Member felt any future budget deficit could be addressed by increasing council tax and also raised concerns over the risks of the proposal;

·                The Section 151 Officer responded to detailed questions regarding pensions;

·                One Member asked for assurance that, if appropriate, SHDC and WDBC would each receive separate legal advice;

·                One Member asked if the Council was exploring Central Government funding towards the start-up costs for the LACC;

·                Senior Officers stated that the Leader’s additional proposed recommendation was appropriate as it enabled the opportunity to assess the best time to transfer to the LACC.  Members supported the additional recommendation.

It was then: