Agenda item

Purpose of report

The report outlines:

·       the background to the establishment of the Sub-Committee and recent developments;

·       the Council as a company owner and the role of the Sub-Committee;

·       an outline of the Terms of Reference for the role of the Sub-Committee; and

·       next steps.

RECOMMENDED that the Cabinet Sub-Committee

1)    agrees to a Sub-Committee meeting in January 2022 to receive reports from all of the Council's companies and to meet quarterly thereafter;

2)    delegates authority to the City Solicitor to engage with all PCC companies and request relevant reports for the January 2022 meeting; and

3)    authorises the City Solicitor to engage the services of Local Partnerships to provide commercial advice to the Sub-Committee in relation to its companies going forward.

DECISIONS - the Cabinet Sub-Committee

1) Agreed to recommend to the full Cabinet that the Cabinet Sub-Committee is abolished and its responsibilities including the oversight of all PCC companies and all other future company subsidiaries (where relevant) instead be undertaken by and reported to full Cabinet;

2) Delegated authority to the City Solicitor to engage with all PCC companies and request relevant reports be prepared for a future meeting of the full Cabinet; and

3) Authorised the City Solicitor to engage the services of Local Partnerships to provide commercial advice to the full Cabinet in relation to its companies going forward.

Sophie Mallon, Head of Commercial, Procurement and Regeneration, introduced the report.

Councillor Ben Dowling commented that since the decision to form a Sub-Committee to perform oversight and scrutiny of the companies in Council ownership, there had been considerable engagement with opposition spokespersons and it was now believed that it role would be better performed by full Cabinet. 

The following information was provided by Sophie Mallon in response to members questions:

·       Full Cabinet made the decision to establish the Sub-Committee on 14 July 2020 and therefore had the authority to dissolve.

·       The role of the Sub-Committee for each company is set out in each set of constitutional documents.

·       The directors of each company carry out the day to day running of the business and it is for the Sub-Committee to observe and have oversight of those companies.

·       Commerciality and the need for an understanding of what is best practise elsewhere was noted within the report and as this is a skill set that may not sit in the authority, there is a recommendation to have Local Partnerships onboard an as an advisor to this Sub-Committee.

Councillor Dowling proposed that the recommendations be amended to remove recommendation 1 and replace it with a recommendation to Cabinet that the Sub-Committee be abolished and all work previously the work of the Sub-Committee instead be considered by full Cabinet. Recommendation 2 would therefore require a minor amendment to reflect this. 

In discussion, members made the following comments:

·       That the report did not set out in detail how issues would be resolved if they arose.

·       Local Partnerships would be able to advise on ensuring social value gains are included in the operation of the companies.

·       The Sub-Committee or its successor would exercise the due diligence expected of the authority in its role to have oversight and scrutiny over the companies. 

Councillor Ben Dowling clarified that the voting members of the Sub-Committee were the Cabinet members present and that it was important for transparency and openness that the opposition leads were present to observe.  Chris Ward, Director of Finance, confirmed that opposition members would always be invited to meetings where these matters would be discussed whether that is as a Sub-Committee or as full Cabinet. 

Following a further question, it was confirmed that the non-voting members of the Sub-Committee would have speaking rights at full Cabinet on issues relating to the role of the Council as a shareholder.

DECISIONS - Cabinet Sub-Committee:

1)    Agreed to recommend to the full Cabinet that the Cabinet Sub-Committee is abolished and its responsibilities including the oversight of all PCC companies and all other future company subsidiaries (where relevant) instead be undertaken by and reported to full Cabinet;

2)    Delegated authority to the City Solicitor to engage with all PCC companies and request relevant reports be prepared for a future meeting of the full Cabinet; and

3)    Authorised the City Solicitor to engage the services of Local Partnerships to provide commercial advice to the full Cabinet in relation to its companies going forward.