Issue - meetings

This report seeks approval for the creation of a local authority company, through which the Council will be able to provide services and carry out works for profit on behalf of other public bodies and private organisations. 

RESOLVED: (i)         That Option 3, the creation of a local authority company with the primary purpose of providing business support activity to public sector and other organisations, be approved.

REASON:      To allow the Council to take advantage of income opportunities and make efficient use of its assets, workforce and knowledge.

                        (ii)        That the Director of Customer & Business Support Services (CBSS) and the Assistant Directors (ADs) of CBSS be appointed as Directors of the Company, with the Director of CBSS acting as Chief Executive and the AD Governance & Legal acting as Company Secretary.

REASON:      To ensure that the company works under a suitable governance structure.

                        (iii)       That regular further reports be brought back to the Executive.

REASON:      To ensure transparency at all stages of the company’s development and to ensure that the company’s activities are in keeping with the Council’s priorities and operating model.

                        (iv)       That the company name be determined by the Director of CBSS and the Executive Member for Corporate Services, following a consultation with staff.

REASON:      To ensure staff involvement in the setting up of the company.

                        (v)        That any additional costs incurred as a result of establishing the company be capped at a maximum of £20,000, to be funded from a £20k carry-forward of CBSS budgeted underspend.

REASON:      To provide set-up costs, but in such a way as to minimise the cost to the Council.

Members considered a report which sought approval for the creation of a local authority company, through which the Council could provide services and carry out works for profit on behalf of other public bodies and private organisations.

The setting up of a company would allow the Council to maximise the potential of its resources and contribute in the medium term to the efficiency agenda.  The initial structure and scope of the company would be developed primarily around the services currently provided by the CBSS Directorate.  Four options were presented:

Option 1 – CBSS to continue as it is.

Option 2 – to look at ‘sharing’ some services with other organisations.

Option 3 – to look to be a ‘provider’ to others.

Option 4 – to look to be a buyer from others.

Option 3 was the preferred way forward, as outlined in paragraphs 10 to 13 of the report, on the basis that it would given the Council control over its plans and already had the commitment of staff.  The precise form of the company would be developed over the coming months.  It was proposed that a small board of senior Officers be appointed to act as the Board of Directors, with the option to appoint further Directors in future.  An outline of potential trading opportunities within CBSS was provided at Annex 1 to the report; with initial financial projections and a risk assessment at Annexes 2 and 3 respectively.

In response to comments made by the Unison representative on this item, Officers confirmed that there were currently no plans to transfer staff to the new company; however, should this occur in the future, consultation would be carried out.

RESOLVED: (i)         That Option 3, the creation of a local authority company with the primary purpose of providing business support activity to public sector and other organisations, be approved.¹

REASON:      To allow the Council to take advantage of income opportunities and make efficient use of its assets, workforce and knowledge.

                        (ii)        That the Director of Customer & Business Support Services (CBSS) and the Assistant Directors (ADs) of CBSS be appointed as Directors of the Company, with the Director of CBSS acting as Chief Executive and the AD Governance & ICT acting as Company Secretary. ²

REASON:      To ensure that the company works under a suitable governance structure.

                        (iii)       That regular further reports be brought back to the Executive. ³

REASON:      To ensure transparency at all stages of the company’s development and to ensure that the company’s activities are in keeping with the Council’s priorities and operating model.

                        (iv)       That the company name be determined by the Director of CBSS and the Executive Member for Corporate Services, following a consultation with staff. ⁴

REASON:      To ensure staff involvement in the setting up of the company.

                        (v)        That any additional costs incurred as a result of establishing the company be capped at a maximum of £20,000, to be funded from a £20k carry-forward of CBSS budgeted underspend.

REASON:      To provide set-up costs, but in  ...  view the full minutes text for item 163