Agendas, reports and minutes

Minutes of Meeting of the Corporate Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday 30 January 2020 at 10.30 am.

Present:

Mr R Bremner (by video-conferencing), Mrs G Campbell-Sinclair, Mrs H Carmichael, Mr A Christie (substitute), Dr I Cockburn, Mrs M Davidson, Mr R Gale, Mr T Heggie, Mr B Lobban, Mr D Louden, Mr G MacKenzie, Mr S Mackie, Mr A Mackinnon, Mr D MacLeod, Mr D Macpherson, Mr M Reiss, Mrs T Robertson (substitute), Mr P Saggers

Non Members also Present:

Mr J McGillivray (by video-conferencing)              

Officials in attendance:

Mrs D Manson, Chief Executive
Ms L Denovan, Executive Chief Officer – Resources and Finance
Mrs K Lackie, Executive Chief Officer – Performance and Governance
Mr E Foster, Head of Corporate Finance and Commercialism, Corporate Resources Service
Mr A Maguire, Head of Development and Regeneration, Development and Infrastructure Service
Mr M Mitchell, Finance Manager, Corporate Resources Service
Mr R Campbell, Estates Strategy Manager, Development and Infrastructure Service
Mrs L Dunn, Principal Administrator, Chief Executive’s Office
Ms A Macrae, Committee Administrator, Chief Executive’s Office

An asterisk in the margin denotes a recommendation to the Council.  All decisions with no marking in the margin are delegated to the Committee.

Mr A Mackinnon in the Chair

Prior to the commencement of formal business on the agenda, a point of order was raised in relation to the late receipt of three reports.  In response, the Chair acknowledged this point and apologised for the delay in distributing these papers to the Committee.

Business

1. Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mrs C Caddick and Mr D Rixson.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

There were no declarations of interest.

3. Corporate Resources Committee: Role and Remit
Comataidh nan Goireasan Corporra: Dreuchd agus Raon-ùghdarrais

There had been circulated Report No RES/01/20 dated 17 January 2020 by the Executive Chief Officer – Performance and Governance. 

The Committee NOTED the report.

4. Appointments to Sub-Committees, Working Groups, etc
Cur an Dreuchd gu Fo-Chomataidhean, Buidhnean-obrach is eile

The Committee APPROVED the appointments to the following Sub-Committees, Working Groups etc:-

1. Appeals and Disputes Committee

Chair and Vice Chair of the Corporate Resources Committee, Chair and Vice Chair of the relevant Service Committee, Mr R Bremner, Mr D Louden, Mr G MacKenzie, Mr P Saggers, Mr D MacLeod and Mr R Gale.

2. Central Safety Committee

Employer’s Representatives – Chair of the Corporate Resources Committee, Mr D Louden, Mr G MacKenzie, Mr S Mackie and Mr R Gale.

Staff Side Representatives – Trade Union representatives from Unison (1 place), GMB (1 place), UNITE (1 place), UNITE/UCATT (1 place) and 1 representative from BDA, CSP or RCN to be confirmed on a rolling basis. 

3. Employment Release Sub-Committee

Chair and Vice Chair of the Corporate Resources Committee, Chair and Vice Chair of the relevant Service Committee, Mr R Bremner, Mrs G Campbell-Sinclair, Mr G MacKenzie, Mr S Mackie, Mr P Saggers, and Mrs C Caddick.

4. Head of Service Recruitment Panel

Chair and Vice Chair of the Corporate Resources Committee, Chair and Vice Chair of the relevant Strategic Committee (or the Leader and Depute Leader of the Council where the Chief Executive’s Office or Corporate Resources Service is involved), Mr R Bremner, Dr I Cockburn, Mr G MacKenzie, Mr P Saggers, Mr D MacLeod and Mr D Rixson.

5. Highland Council Staff Partnership Forum

Elected Member Group – Leader and Depute Leader of the Council, Chairs of the Strategic Committees and the Leader of the Opposition (or their Deputes/Vice Chairs).

Staff Side Group – Trade Union representatives from Unison (2 places), GMB (2 places), UCATT (1 place), UNITE (1 place) and RCN/CSP/BDA (1 place).

6. Non Domestic Rates Appeals Committee

Chair and Vice Chair of the Corporate Resources Committee, Dr I Cockburn, Mr D Louden and Mr P Saggers.

At this point in the meeting it was highlighted that Members participating remotely through video-conferencing had not received the table of nominations to the above Sub-Committees and Working Groups and it was requested that these be Emailed to the relevant Members.

It was further highlighted that as reports in relation to agenda items excluded from the public were not electronically distributed, Members attending through video-conferencing had not received these.  It was requested that in future, reports in relation to confidential items of business on the agenda be sent electronically.

The Chair advised that the confidential reports in relation to items 14 and 15 on the agenda would be Emailed immediately to the Members attending the meeting remotely.

5. Good News
Naidheachdan Matha

The Committee NOTED the update.

FINANCIAL MONITORING
SGRÙDADH IONMHASAIL

6. Corporate Revenue Monitoring Report to 31 December 2019     
Aithisg Sgrùdaidh Teachd-a-steach Corporra gu 31 Dùbhlachd 2019

There had been circulated Report No RES/02/20 dated 22 January 2020 by the Executive Chief Officer - Finance and Resources.

The Chief Executive reported that a key message in relation to the Accounts Commission’s Best Value Audit Report (BVAR), was the need for the Council to increase the pace of change. Significant progress had been made over the previous year and positive results achieved. New governance structures were being put in place and a report would be submitted to the Council along with the budget proposals which linked the Council’s performance with sustainability and on the significant impact of the Change Fund. The Accounts Commission had reinforced the need for Members and officers to collaborate and work together including with partners to make the Council more efficient and sustainable whilst improving performance.

The Chair thanked the staff for the improved financial position of the Council with a net year underspend of £0.452m being forecast, and for embracing the culture change across the organisation. He looked forward to working with Members going forward. He accepted the information in the report on the General Fund in Appendix 1 should be presented in a more understandable manner and all the elements included in Appendix 5, showing the unallocated corporate savings. There were risks associated with a budget, however he was confident of an improved underspend position at the end of the financial year. He also reported on the new governance arrangements which had been put in place to ensure close monitoring of the budget on a weekly basis.

In discussion, Members raised the following main issues:-

• the need for the Council to reinvest in roads, this having been identified as a priority by communities, and for proposals to be brought back to Members;
• the Chief Executive be tasked with reviewing those savings identified for the current year which had not yet been achieved;
• the root causes of overspends on budgets be identified rather than a continued reliance on vacancy management to achieve savings;
• it was suggested the BVAR was particularly focused on the previous five years and a separate point that if changes to Council tax banding had not been introduced then the Council would have been in a serious financial position;
• the BVAR covered a period of ten years and all the political groups should accept responsibility for bringing forward savings proposals that had not been realistic or implemented without a sound strategy or rationale over this period;
• the Council Tax freeze in previous years had significantly affected the funding received from the Scottish Government. It had also helped many people in the Highlands financially;
• credit for the changes to the leadership team and governance structures which had been put in place, however it was important not to be complacent going forward;
• concern at the level of unallocated savings shown in the budget, and the fact it was unlikely they would be delivered due a lack of ownership and accountability. This budget line should be removed and incorporated into the relevant service budgets;
• if unallocated savings were to be included in the budget there should be a clear statement on the process for allocating them and by what date, the accountable budget holder identified and the Committee at which they would be scrutinised;
• Members be provided with more detailed information on the individual budget lines which were significantly overspent but which did not appear in the report, i.e., payments to external contractors, hired labour and temporary agency staff;
• the need to be mindful of NHS Highland’s current financial position and the potential impact this might have on the Council’s budget;
• consultation on difficult proposals should be conducted well in advance of the budget to allow informed decisions to be made and proposals to be implemented early in the financial year. Lessons had to be learned from the reviews of ASN provision, public conveniences and car parking charges;
• the potential to consult and engage with the Citizens Panel more effectively;
• the SNP Group had to date not been consulted on the budget proposals for the next financial year. The Chair confirmed he and the Depute Leader would meet with the Group next week, advising the budget process had been delayed due to the General Election;
• concern at the impact the voluntary severance scheme had on the reserves, the Council having one of the lowest levels in Scotland. This created difficulties for the Council in terms of increasing the level of reserves and bringing forward new spending initiatives;
• in terms of education and national benchmarking, the Council’s performance had declined in comparison to other local authorities who had also experienced reductions in their funding;
• information be provided on the impact of that underspend on the Education budget on schools in Highland including the proposals to mitigate the increased pressures placed on staff;
• the Education service was at the early stages of a process of transformation and it was hoped this would deliver substantial improvements with regard to national local government benchmarking framework. Discussions were ongoing with teachers to ensure there was a shared understanding of ambitions. Members would receive regular reports on the transformation at the new Education Committee; and
• the Council had to be more business orientated to deliver efficiencies and improve performance, for example, the need to follow up on opportunities around former Janitor’s houses.

The Chair reiterated that new governance arrangements had been put in place to ensure budget lines were monitored on a weekly basis and there was more accountability going forward.

The Chief Executive confirmed that in terms of the Education spend, more detailed information would be brought to Members. Tighter controls around budgets and policies were being introduced and performance issues were being addressed. National benchmarking was being carried out in a number of areas, including external assessments. This was particularly important in terms of those local authorities who were performing better with less resources.

The Committee APPROVED the financial position of the General Fund and HRA revenue budgets as at 31 December 2019 and NOTED the estimated year end forecast.

7. Corporate Capital Monitoring Report to 31 December 2019
Aithisg Sgrùdaidh Calpa Corporra gu 31 Dùbhlachd 2019

There had been circulated Report No RES/03/20 dated 23 January 2020 by the Executive Chief Officer - Finance and Resources.

The Chair advised that as part of the new governance arrangements, slippages on the budget were being monitored on a weekly basis.

In discussion, confirmation was sought and provided on reasons for the increase in the underspend since the previous quarter, the variance on the HRA in respect Government Grant Income in terms of Council house building and around the adjustment shown for the flooding grant in 2019/20. 

In response to a question, the Chair advised that the HRA Capital and Revenue monitoring reports would be presented to the Housing and Property Committee and thereafter to the Corporate Resources Committee.

The Committee APPROVED the financial position of the General Fund and HRA Capital Programmes as at 31 December 2019.

CORPORATE RESOURCES SERVICE
SEIRBHEIS NAN GOIREASAN CORPORRA

8. Treasury Management – Summary of Transactions
Rianachd Ionmhais – Geàrr-chunntas Ghnothaichean

There had been circulated Report No RES/04/20 dated 10 January 2020 by the Executive Chief Officer - Finance and Resources.

During discussion, the following main points were raised:-

• concern was expressed at the Council’s increasing level of Gross External Debt and it was queried what options were being explored to reduce this debt which had been on an upwards trajectory since 2011;
• this concern was acknowledged; however, it was indicated that debt for a corporate entity such as the Council was not necessarily bad, and that it could be financially advantageous if prudently managed and brought significant benefits to the local economy such as housing and infrastructure.   However, a cautious approach was welcomed, and it was suggested that a workshop should be held to consider the debt levels in more detail and future investment funding models, including the legal feasibility of utilising the Pension Fund to build new infrastructure on the proviso that the Fund generated good returns on their investment.  Support for this approach was endorsed by a number of Members;
• it was highlighted that the Council had agreed in 2012 to invest in capital to help the Highlands through the recession and this had been most beneficial.  Although any ideas in respect of reprofiling the debt were welcome, it was stressed that the level of debt reflected the vast number of assets that the Council had to maintain;
• the more acute issue was the repayment of the debt and extensive efforts had been made with the UK and Scottish Governments to reprofile the Council’s debt;
• debt was only an issue if it could not be repaid; however, there was need for close monitoring of short-term debt should there be a sudden increase in inflation and the potential impact of this on the Council;
• a request was made for the Leader of the Scottish Conservative and Unionist party to raise the issue of the Council’s housing debt, which had been written off for many local authorities, with Senior UK Government officials.  The Leader of the Scottish Conservative and Unionist party confirmed that he would raise this issue with the Parliamentary Under-Secretary of State for Scotland Mr Douglas Ross, MP; and
• The Chair welcomed further discussion on the debt issue and recommended that the Council’s Treasury Advisers be invited to attend the workshop.

The Committee:-

1. NOTED the Treasury Management Summary of Transactions as circulated; and
2. AGREED that a workshop facilitated b the Council’s Treasury advisers be organised on the Council’s external debt.

9. Banking and Related Financial Transactions – Authorised Signatories
Bancaireachd agus Gnothachasan Ionmhasail Co-cheangailte – Luchd-soidhnigidh Ùghdarraichte

There had been circulated Report No RES/05/20 dated 16 January 2020 by the Executive Chief Officer - Finance and Resources.

The Committee APPROVED:-

i. the addition of Liz Denovan, Executive Chief Officer Resources and Finance to the list of authorised signatories for banking and related financial transactions with immediate effect;
ii. a change to 10.7 of the Financial Regulations to allow additional Principal Accountants to authorise online banking transactions; and
iii. the following Principal Accountants to be able to authorise online banking transactions:-

1. Fiona Callum, Principal Accountant, Corporate Finance; and
2. Alison McDonald, Principal Accountant, Corporate Finance. 

10. Late Submission of Expenses Claims  
A’ Cur A-steach airson Cosgaisean Anmoch

It had previously been agreed by Corporate Resources Committee that late submissions of Elected Members expenses claims would be presented to the Committee for approval.

The Committee APPROVED the following claims:-

1. Councillor Deirdre Mackay £106.20 mileage; £302.00 subsistence for the months of July and August 2019; and
2. Councillor Linda Munro £1,272.60 mileage; £75.00 subsistence for the months of July, August and September 2019.

MINUTES OF MEETINGS
GEÀRR-CHUNNTAS CHOINNEAMHAN

11. Commercial Board: Minutes of Meetings
Bòrd Malairteach: Geàrr-chunntasan Choinneamhan

There had been circulated Minutes of Meeting of the Commercial Board held on 18 December 2019 – the terms of which were APPROVED.

12. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee NOTED the Minutes of the Non-Domestic Rates Appeals Committee held on 19 December 2019.

13. Exclusion of the Public 
Às-dùnadh a’ Phobaill

The Committee AGREED to resolve that, under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following items on the grounds that they involved the likely disclosure of exempt information as defined in Part 1 of Schedule 7A of the Act, the relevant paragraphs being shown.

14. Land Acquisition
Seilbheachd Fearainn

Paragraphs 6 and 9

There had been circulated to Members only Report No RES/06/20 dated 10 January 2020 by the Executive Chief Officer – Transformation and Economy.

The Committee AGREED the recommendations as set out in the report.

15. Update on Tain Campus
Cunntas às Ùr mu Champas Bhaile Dhubhthaich

Paragraphs 6 and 9

There had been circulated to Members only Report No RES/07/20 dated 23 January 2020 by the Executive Chief Officer – Finance and Resources.

The Committee AGREED:-

1. the recommendations as set out in the report; and
2. that local Members be kept informed of progress and a communication be issued to local communities on this item.

The meeting ended at 12.25pm.