To obtain approval to the arrangements put in place to accomplish the close down of Hereford Futures Ltd (HFL) on a solvent basis and to manage the effective operation of ongoing projects.

The Economic Development Manager advised Cabinet that in order for a successful closedown of Hereford Futures Ltd., on a solvent basis, Cabinet’s approval was sought, along with that of the Chief Financial Officer and the Homes and Communities Agency.  This would allow for the movement of the Hereford Futures obligations to the Council, as there were still a number of projects in the joint venture agreement with the Homes and Communities Agency that would need to be effectively managed.  Cabinet was referred to paragraph six of the report, key considerations, for the list of functions to be transferred.  It was added that the maximum amount of funding required for the outstanding projects, as at March 6, would be £695k. 

The following comments were made in discussion:

·         In response to a question on published redacted minutes of Hereford Futures, and the lack of a document trail, the Director for Economy, Communities and Corporate advised that a handover meeting had been held with the Chief Executive of Hereford Futures and it had been agreed that technical files would be handed over to the Council.  The Director confirmed that the Council had all the files and material it required to take the work forward. In respect of the remaining files and material, which belong to the Company, the Chief Executive of Hereford Futures had advised that some would be retained by Board Members and the remainder, which was not required would be disposed of.  The Director added that he could request that minutes of meetings were made available, but it was a decision for the board of Hereford Futures.

·         It was stated that at previous scrutiny review meetings copies of documents had been requested.

·         The Leader emphasised that Hereford Futures management team were professional and had delivered on what had been asked of them.

·         The Solicitor to the Council reiterated the comments made regarding files that belonged to Hereford Futures and that there was no obligation to handover documents.

·         Concern was raised and assurance was sought as to whether the Council had the staff to take over the work of Hereford Futures, as it had been set up in the first instance to assist the Council’s economic development team to carry projects forward.  The Leader gave Cabinet his assurance.

RESOLVED

          THAT:

a)    the transfer of Hereford Futures Ltd., obligations to Herefordshire Council, as outlined at paragraph six of the report, be approved;

b)    delegated authority be given to the Director for Economy, Communities and Corporate, in consultation with the Solicitor to the Council, to finalise and sign the necessary documentation to effect the transfer of obligations arising from recommendation a) above, including any necessary variation to the joint venture agreement with the Homes and Communities Agency; and

c)    the role and efforts of Hereford Futures Ltd., board members throughout the board’s period of operation is recognised and thanks be extended to the board.