Issue - meetings

Companies Performance Update, Autumn 2019

Meeting: 07/11/2019 - Commercial Ventures Executive Sub-Committee (Item 36)

36 Companies Performance Update, Autumn 2019 pdf icon PDF 207 KB

To consider an update on the performance of Council companies.

Additional documents:

Decision:

RESOLVED that the 17 October 2019 Companies Performance Update, as set out in this report, and the observations from the Overview and Scrutiny Committee from its meeting of 17 October 2019 be noted.

Minutes:

Councillor M A Brunt introduced the report which provided an update on the performance of companies owned by the Council.  Updates were also provided on a 6 monthly basis to the Overview & Scrutiny Committee to support the good governance of the Council’s investments.  This update report had been considered by the Overview & Scrutiny Committee on 17 October 2019 and the CVESC noted the observations and points raised by the Overview & Scrutiny Committee as set out in its minutes.

As set out in the report, the companies were considered to either be performing in line with the Council’s objectives, or to be on target to do so once work currently in progress was complete.

Councillor Brunt confirmed that as the CVESC continued to move forward with developing and progressing the Council’s commercial approach to help support the Council’s other services, it would continue to monitor the performance of the companies and other Council investments to ensure that they secured the best value possible for the Council and its residents.

RESOLVED that the 17 October 2019 Companies Performance Update, as set out in this report, and the observations from the Overview and Scrutiny Committee from its meeting of 17 October 2019 be noted.

Reason for decision:  To support the good governance of the Council’s companies.

Alternative options: To request additional information on the performance of the companies owned, or part-owned, by the Council. 

Clerk’s Note: Councillor Archer arrived at the end of item 6.


Meeting: 07/11/2019 - Commercial Ventures Executive Sub-Committee (Item 45)

Companies Performance Update, Autumn 2019 (Exempt)

To consider any exempt information in relation to the Companies Performance Update.

 

Decision:

RESOLVED that the exempt information in relation to the Companies Performance Update report be noted.

Minutes:

RESOLVED that the exempt information in relation to the Companies Performance Update report be noted.


Meeting: 17/10/2019 - Overview and Scrutiny Committee (Item 13)

Companies Performance Update, 17 October 2019 (Exempt)

To consider any exempt information in relation to the Companies Performance Update.

 

Additional documents:

Minutes:

Members noted the information in relation to the Medium Term Financial Plan Update in the Exempt part of the meeting.


Meeting: 17/10/2019 - Overview and Scrutiny Committee (Item 8)

8 Companies Performance Update, 17 October 2019 pdf icon PDF 202 KB

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

 

Additional documents:

Minutes:

Members considered a report on the performance of the companies owned or part-owned by the Council. To support good governance of the Council’s companies the Overview and Scrutiny Committee received six-monthly updates. These companies currently consisted of Greensand Holdings Ltd, Horley Business Park Development LLP, Pathway for Care Ltd and RBBC Ltd. All these companies were currently considered to be performing in line with the Council’s objectives.

Greensands Holdings currently held one property which provided a rental income sufficient for the company to meet its repayment and loan obligations to the Council and to generate an income.

Horley Business Park Development was a joint venture set up to bring forward planning and subsequent development of land in the Horley area.  The business park site was allocated for employment purposes in the Reigate and Banstead Development Management Plan (2018-2027) which was adopted by full Council on 26 September 2019.

Pathway for Care which provided supported living facilities and support for their residents at a number of sites in the borough was projected to generate a net profit in 2020. The Council was a minority shareholder in the company with the majority shareholding sold to Paul Green, a founder and former director of Fairhome Group PLC (the previous majority shareholder) in September 2019. 

RBBC Ltd (Pathway Digital) was a potential digital technology business but as no external investment was secured the company was inactive and in the process of being closed.

Members noted the report and asked questions on the following points:

·       Horley Business Park Development ­– Gatwick Airport and its published Masterplan proposed to use a small part of the Council’s land for storing construction works. If the airport was expanded, and use of the reserve runway received consent from the Secretary of State, would a neutral position be agreed? It was confirmed that the Council had not yet adopted a position regarding Gatwick’s proposals or formally responded as a local authority to a possible future application for a Development Consent Order.

·       Governance arrangements – was there an update on the review of governance issues including those of non-executive directors? It was confirmed that work on new governance arrangements for the Council’s companies was ongoing including resourcing these companies and commercial activities. A report from the Monitoring Officer would be considered by the Commercial Ventures Executive Sub-Committee early in the new year which would address the issue of non-executive directors.

·       Greensand Holdings – it was noted that David Beck had been appointed by the Commercial Ventures Executive Sub-Committee as an interim Council Property Advisor to a vacant director post in the company in May 2019. This was a temporary post which was an external resource to ensure that the appropriate number of directors were on the Board.

The Commercial Ventures Executive Sub- Committee had approved the appointment and had oversight of his work.

RESOLVED that:

(i) the Companies Performance Update as set out in the report (17 October 2019) and the Exempt information be noted

(ii) the observations of  ...  view the full minutes text for item 8