Agenda item

To consider the decisions made by the Cabinet on 16 July 2013 in relation to the above item, which has been called in by Cllrs Ayre, Jeffries and Reid 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 and 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 decisions made by the Cabinet on 16 July 2013, in relation to the establishment of an Explore Libraries and Archives Mutual as a Community Benefit Society. The report to the meeting summarised the work undertaken by a project board whose key conclusion had been that the best possible legal model to transfer the service to a social enterprise had been via a Community Benefit Society (CBS), with exempt charitable status.

Details of the Cabinet’s decision was attached at Annex A to the report, with the original report to the Cabinet attached at Annex B. The decision had been called in by Cllrs Ayre, Jeffries and Reid on the following grounds:

·        The report claims the aim has been to determine “whether it would be in the overall interests of the Council to transfer its Libraries and Archive service to a social enterprise”. This is not what has happened. All the approved report does is provide shaky evidence that a social enterprise might work, it does not explore other options to determine whether a social enterprise is the best option for the Council or for residents. There is no evidence presented that the Council has looked at any other options not even ‘co-location’, which is national Labour Party policy and has been successfully implemented in Northamptonshire. Despite repeated requests we have not seen a copy of the social enterprise business case.

·        No proper public consultation has taken place – the consultation which took place in October 2012 only asked residents questions such as where libraries should be based, what they should provide and whether people can volunteer to help operate them. It did not ask people for their views on the potential move to a social enterprise. The ‘Focus Group’ only provides very limited evidence. For this proposal to work it has to have the full support of the public and there is no evidence that this is the case.

·        Staff have raised considerable concerns over the move to a social enterprise and the consultation process. A sample of these included in the report are:

“It has always felt like the decision to go to a Social Enterprise has been made without consulting staff. It feels like we are being asked for the sake of asking, not because what we think will be taken into account or thought about seriously”

“In many ways it feels like it's a done deal, and anything we or the public say will not have any effect on whether it happens or not”

“This is tokenism. We are asked for our opinions, but in the final analysis, if our opinions differ from those in the top seat they will not be counted”

“I think is a forgone conclusion and this has come across when workshop etc are done”

“Good thing who knows? Again all progress as if it will happen nothing about alternative etc”

·     UNISON also consistently raise concerns on behalf of staff and we have no confidence that this move enjoys the support of library or archive staff.  For this proposal to work it has to have the full support of staff and there is no evidence that this is the case.

·     Throughout this report there is lack of proper evidence on why the projected ‘benefits’ (revenue increases etc) can not be achieved with the service remaining part of the Council. The £450,000 savings, needed after Labour’s budget cuts, could as the report shows largely be achieved with or without the move to a social enterprise. The plans to increase revenue are simply not dependent on a move to a social enterprise.

·     We are concerned that the new model will be less accountable to residents as the familiar structure of local council control is removed while at the same time there are considerable changes in the service. The service has already seen job cuts and changes in library opening hours and the original report, which went to Cabinet last year, spoke openly about a ‘re-location programme’.

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

Councillor Ayre addressed the meeting on behalf of the Calling-In members expanding on the reasons given for the call in. Particular concern was expressed at the lack of evidence put forward for the transfer of the service pointing out that other alternative options had not been explored. The lack of proper public consultation was highlighted and the absence of full staff support, as detailed in the background papers. It was felt this was a decision too important to take without all options having been considered, full public consultation and sight of all information including the exempt business case.

The Cabinet Member for Leisure, Culture and Tourism responded to the points raised. Confirming that, prior to the decision being taken by Cabinet, every option had been considered and weighted with the best legal model proving to be a Community Benefit Society (CBS) with exempt charitable status. Whilst challenging, the proposals would build upon the success of the Explore concept and provide new income streams whilst delivering the necessary savings. Although the business plan had been considered commercially sensitive this had been available for inspection, on request. In answer to earlier comments it was also confirmed that the majority of staff were in favour of the proposals.

Members went on to discuss the points raised and in response to questions, Officers confirmed that the business plan had been available to Cabinet Members and Members of the Corporate and Scrutiny Managing Committee on request. With the sensitivity being related to the award of future contracts which could affect trading relations in the areas of room hire, conferences and the cafe concept, amongst others. Further details of the award of the contract in respect of support services was also provided, together with the savings targets and income projections.

Assurances were given that the Archives would be run by fully qualified staff to ensure that all records were well maintained for the future and that this would be ensured through the contract between the Council and the CBS.

Following further lengthy discussion it was

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

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