Issue - meetings

To receive an update on the performance of Council companies.

RESOLVED that the performance of companies owned, or part owned, by the Council be noted.

Councillor M.A. Brunt, Leader of the Council, introduced a report providing an overview of the performance of companies owned or part-owned by the Council. It was explained that this was the first of such updates and moving forward the Executive and Overview and Scrutiny Committee would both receive six monthly updates on performance. It was noted that these companies, as of October 2018, consisted of Greensand Holdings Ltd, Horley Business Park Development LLP, Pathway for Care Ltd and RBBC Ltd.

The Leader of the Council explained that an update, on companies performance, had been considered by the Overview and Scrutiny Committee on 11 October 2018. It was noted these discussions had been summarised in the Executive’s report, including an update on risk management considerations relating to the Council’s investments in each company.

In response to questions about governance the Executive was informed that, in accordance with an Executive Resolution from 29 March 2018, a Commercial Governance Member Task Group had been established to review the commercial arrangements established by the Council in recent years. Councillor Brunt explained that this Task Group was progressing well and was on course to complete its work by the end of 2018. It was also noted that findings from the review would be shared with the Overview and Scrutiny Committee before final recommendations were anticipated to be presented to the Executive in January 2019.    

During the discussion a variety of matters were considered and it was noted that additional information had been set out in the exempt Part 2 report of the agenda.

Clerk’s note – At this point in the meeting agenda item 8 (Companies Performance Update) was adjourned so that the exempt information, agenda item 12 (Exempt Business) and 13 (Companies Performance Update – Exempt), could be considered ahead of making a decision.

Clerk’s note – The minutes of the meeting reflect the order of business listed on the published agenda, not the order taken during the meeting.

During the exempt discussion a number of issues were considered, including the presentation of performance information and data, the importance of transparency, and matters in relation to the business plans for each company. In response to this discussion, it was highlighted that future updates would include performance information on the business plan targets for each company owned, or part-owned, by the Council.

RESOLVED that the performance of companies owned, or part owned, by the Council be noted.

Reason for decision: To consider the performance of companies owned or part owned by the Council, as of October 2018.

Alternative options: To ask officers to provide additional information to assist consideration of the performance of companies owned, or part-owned, by the Council as of October 2018.

To consider exempt information on the performance of Council companies.

RESOLVED that the exempt information in relation to the performance of companies owned, or part owned, by the Council be noted.

RESOLVED that the exempt information in relation to the performance of companies owned, or part owned, by the Council be noted.

To consider exempt information on the performance of Council companies.

The Committee considered and discussed Exempt information with regard to the Companies Performance update report. The purpose of setting up the companies and key risks faced by each was explained. There were a number of questions and comments relating to the following topics:

·         Accounting treatment of loans to companies and associated arrangements: It was confirmed that the Council’s External auditors had been content with the accounting treatment of loans to companies to date, and that future accounting treatment would be confirmed in time for associated reporting requirements. It was commented that matters which might not be material to auditors might still be of interest to Members. It was identified that the Council’s approach to arrangements around loans to companies had been made on the basis of the most positive expected outcome for the Council and the borough, and in accordance with decisions of the Executive.

·         Property acquisition by Greensand Holdings and the Council. It was identified that the Council would continue to make property acquisitions where these were considered to be most appropriate for the Council itself to acquire directly.

·         Presentation of information: Members indicated that they would be interested in seeing more summary information on total payments to and returns from companies, or other information that would support clarity of understanding of the situation to date. It was noted that the Council was open to identifying the most effective ways to present information. It was suggested that presentation to the Committee on the general activities and objectives of companies owned or part-owned by the Council might help support additional understanding of the context of performance reports.

·         Appointment of directors to companies: It was noted that the Head of Property (and the Joint Managing Director of Greensand Holdings and a Director of the Horley Business Park LLP) had secured an excellent promotion with another Council. It was identified that where the Council was able to appoint directors to companies, this appointment would be conducted according to an Executive decision, potentially via a decision of a relevant Executive subcommittee.

·         Additional advance questions: It was confirmed that written responses to additional detailed questions regarding the report and exempt information, received prior to the meeting but subsequent to the formal advance questions deadline, would be provided following the meeting.

·         Minutes of meetings: It was confirmed that minutes of meetings were confirmed by the Committee as a correct record and that if committee members identified any areas where they believed amendments should be made to the minutes, these should be identified in advance of this confirmation.

RESOLVED that the Exempt information with regard to the Companies Performance Update report be noted.

To receive an update on the performance of Council companies.

To consider any advance questions submitted.

The Committee received a report on the performance of companies owned or partly owned by the Council. There was noted to be additional confidential information of the performance of the companies available in an accompanying exempt item.

The Committee considered and discussed the report. There were a number of questions and comments, relating to the following topics:

·         Reporting timetable and arrangements: It was identified that the report on the performance of companies owned or part-owned by the Council was expected to be presented on a six-monthly basis. It was expected that additional detail would be available in future.

·         Audit arrangements: It was confirmed that all of the companies had external audit arrangements in place where required. It was requested that audit information regarding the companies be made available to committee members where possible.

·         Council governance of companies: It was identified that future governance of commercial activities by the Council was being considered by the cross-party commercial governance group, working with the Council’s Monitoring Officer. It was identified that an update from the group was expected to be available in December, with a report in January. Interested Members were invited to contact the chair of the group. It was commented that it would have been preferable for the work of the group to have been undertaken and concluded at an earlier date.

·         Loans to the companies. It was agreed that a written response would be provided explaining how the Council’s loans to the companies would be shown in the accounts.

RESOLVED that the Companies Performance Update report be noted.