Issue - meetings

To consider exempt information on the performance of companies owned, or part-owned, by the Council.

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 receive an update on the performance of companies owned, or part-owned, by the Council.  

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

The Leader of the Council, Councillor M.A. Brunt, introduced a report providing an overview of the performance of companies owned or part-owned by the Council. It was highlighted that this was the second of such updates and the first to include information direct from the Board of Directors of each Company. It was noted that these companies, as of March 2019, consisted of Greensand Holdings Ltd, Horley Business Park Development LLP, Pathway for Care Ltd and RBBC Ltd.

The Executive was informed that the report presented had been considered by the Overview and Scrutiny Committee on 14 March 2019. It was noted that the Committee had made a number of comments, including a request for additional company financial/performance information in future updates.

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.

As set out in the report presented, the Executive noted the importance of implementing recommendations from the Commercial Governance Review (considered earlier in the meeting under agenda item 4 – Commercial Governance Review 2018) and establishing a Commercial Ventures Executive Sub-Committee. It was also noted that the new Executive Sub-Committee would have a remit overseeing the Council’s company activities and that a report, setting out terms of reference, would be considered by the Executive in April 2019.

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 March 2019.

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 March 2019.

To consider information on the performance of companies owned or part owned by the Council.

Agenda items 8, 11 and 12 were considered in sequence between items 4 and 5. The minutes are presented in the order items are presented on the agenda.

The Committee considered an update on the performance of companies owned or part-owned by the Council, which was accompanied by additional exempt information in agenda item 12. The update provided an overview of the performance of Greensand Holdings Ltd, Horley Business Park Development LLP, Pathway for Care Ltd, and RBBC Ltd.

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

·         Information Availability. Attention was drawn to the importance of transparency and ensuring that no more information was kept confidential than necessary. It was also identified that, whilst the information available was an improvement on previous reporting, there were still considered to be some areas where additional information might be beneficial. It was identified that the accompanying exempt information in item 12 included the first reports direct from companies, and that it was expected that the reporting process would continue to be refined. It was identified that, following the  recent commercial governance review, it was intended to establish a specialist Executive sub-committee to consider commercial matters, and that it would be working to support effective reporting.

·         Pathway for Care – progress in March. It was identified that the properties targeted to open in March was scheduled to open in the week of  18 March 2019, and the most recent information received indicated that they were on track to do so.

RESOLVED that March 2019 Companies Performance Update be noted.

To consider exempt information on the performance of companies owned or part owned by the Council.

Additional information to follow.

Agenda items 8, 11 and 12 were considered in sequence between items 4 and 5. The minutes are presented in the order items are presented on the agenda.

The Committee considered exempt information on the performance of companies owned or part-owned by the Council. There were a number of questions and comments relating to the following topics:

·         Exempt Information. Attention was again drawn to ensuring that no more information was kept confidential than was necessary. It was confirmed that the Council would be providing feedback to the companies to support improvements to future reports. It was identified that the information provided was improved from previous occasions.

·         Greensand Holdings. It was confirmed that Greensand Holdings currently only owned one property. It was identified that the Council would be reviewing its approach to property investments, in line with its developing strategies.

·         Property reporting consistency. It was identified that reporting to the Council on property investment performance should seek to be consistent between properties owned by the Council and by Greensand Holdings, where possible.

·         Property Values. It was identified that increases in property values were subject to change in line with market conditions. It was confirmed that any changes in value would also be reflected in final accounting.

·         Company Directors. It was confirmed that updates to company director appointments, where within the Council’s control as a shareholder, were expected to be updated in line with the recommendations of the commercial governance review.

·         Horley Business Park. Attention was drawn to the importance of ensuring that due consideration was given to access, and the development and funding thereof, to any Horley Business Park development. It was identified that considerations around traffic implications and related matters would be considered as part of the process of any planning application brought forward.

·         Companies and Social Responsibility. Attention was drawn to ensuring that the Council, in its role as a shareholder,  worked to ensure that Council owned companies behaved ethically and with regard to social responsibilities.

·         Pathway for Care. Consideration was given to the business model of Pathway for Care and it was identified that it considered to be appropriate to the development of the business and delivering a return to the Council, whilst providing a good quality service.

·         RBBC Ltd. It was identified that RBBC Ltd was expected to be closed and that work to deliver this was ongoing. It was identified that a report on the final outcome would be provided to the Executive and Overview and Scrutiny Committee.

RESOLVED that the exempt information relating to the March 2019 Companies Performance Update be noted.