Agenda item

To consider the decisions made by Cabinet at their meeting on 6 November 2012 in relation to the above item, which has been called in by Cllrs Barton, Doughty and Healey in accordance with the Council’s Constitution. A cover report is attached setting out the reasons for the call-in and the remit and powers of the Corporate Scrutiny Management Committee (Calling-In) in relation to the call-in, together with the original report and the decisions of the Cabinet.

Members received a report which asked them to consider the decision made by Cabinet on 6 November 2012 in relation to the future of a Credit Union in York. The report to the meeting informed Cabinet of the work undertaken to establish a level of support from the City of York Council to secure an ongoing Credit Union presence in York and North Yorkshire.

Details of Cabinets decision were attached as Annex A to the report, with the original report to Cabinet attached as Annex B. The decision had been called in by Cllrs Barton, Doughty and Healey on the following grounds:

·        No indication has been given of what measures are in place to ensure Credit Union applicants in York benefit from the Councils new grant of £50k, bearing in mind the loss of previous loan contributions to the former York Credit Union (YCU).

·        No information has been given on what monitoring arrangements the Council had in place since granting the loan to YCU in 2008, nor has it been clarified what monitoring arrangements will be implemented now in relation to the grant allocated to developing a South Yorkshire Credit Union.

Members were asked to decide whether to confirm the decision (Option a) or to refer it back to Cabinet for re-consideration (Option b) as set out in the report.

Councillor Healey addressed the meeting on behalf of the Calling-In members expressing concerns at the grant of £50k being made to South Yorkshire Credit Union (SYCU) to establish a presence in York without a Service Level Agreement or a guarantee of the money being paid back if they were to withdraw their service from York. He also suggested that the SYCU provide a performance monitoring report to a City of York Council Committee every 6 months.

The Cabinet Member for Corporate Services responded to the points raised, outlining the context of the Credit Union in York. She advised that there is a need for a Credit Union in the City and that it is important to residents and would enable financial inclusion. In respect of the £50k, it was confirmed that this money is for the Credit Union to set up a base in York and it would be a one off payment. The role of the Council would be to monitor the service.

The Leader of the Council addressed the meeting confirming that the £50k is a grant for the SYCU to establish a presence in York and is not to be used for lending. The Council is working with SYCU to keep the costs down. He also advised that the Council would appoint an observing officer to monitor the Credit Union in York.

Members went on to comment on the points raised and questioned the Cabinet Member and Council Leader on a range of related issues upon which they responded. These issues related broadly to the role of the observing officer. Members of the Committee felt that the observing officer should have a participatory role rather than just oversee the Credit Union.                                                                                                                                                                                                          

Officers then clarified a number of points raised and confirmed that in terms of the £50k grant, the Council needed to enter into discussions with the SYCU to identify if they could be located within the new Council offices and reduce the level of grant accordingly. In relation to the monitoring of the Credit Union, officers would expect to receive information as a matter of course, the main issue being how the information would feed up to a member committee. It is anticipated that the observing officer would be a finance employee, to be confirmed.

Members agreed that the calling in be rejected but requested that the ‘observing officer’ be a participatory role and requested a written recommendation be drawn up to reflect their wishes.

RESOLVED:                That Option (a) identified in the report be approved and that the decision of Cabinet be confirmed.

                                      That written clarification of the role of observing officer be provided to members.

REASON:                     In accordance with the requirements of the Council’s constitution.