To receive the report and to consider any recommendations to Council arising from the meetings held on

(a)               7th and 28th September and 12th October, 2006 and

(b)               26th October, 2006.  (To Follow)

The Chairman indicated that he intended to take any discussion on the Rotherwas Relief Road and Rotherwas Futures at Item 9.1 on page 31 of the agenda.  This included any questions on the call-in of the decision as set out in the report of the Strategic Monitoring Committee on page 39 of the agenda.

The Leader of the Council, Councillor R.J. Phillips, presented the report of the meetings of Cabinet held on 7th and 28th September and 12th October, 2006.

In relation to Item 5.1 Building Schools for the Future - A local Member expressed his pleasure about the grant to the Minster College, Leominster and urged the Council to take note of the public consultation exercise particularly people's views on Westfield School.

In relation to Item 7.1(i) Integrated Performance Report - In response to a comment on partner organisations' performance, Councillor Mrs. J.P. French, Cabinet Member (Corporate and Customer Services and Human Resources) replied that performance management and interrogation of reports was very important.  The Council and partners were jointly responsible for delivering on certain targets and both needed to be held to account.  She said she would be happy to assist any Councillors to understand the figures.

The Cabinet Member (Social Care Adult and Housing) agreed to speak to a Member after the meeting about a particular instance in which it was alleged that homeless people were being actively discouraged from registering as homeless.  She agreed that homelessness was a very serious issue.  The Leader stated the Council could not abdicate its responsibility for homelessness but the issue was a national problem that required primary legislation from central government.

In relation to Item 9.1 Rotherwas Futures and Rotherwas Access Road - In response to a query about alternative funding options for the Rotherwas Access Road (other than housing developments) the Leader said that the development of the Rotherwas Industrial Estate and the building of the access road was vital to the future economic viability of the County.  Various other options for funding the projects had been considered.  These included:

·        Selling the Industrial Estate or other assets of the Council.  This had been rejected because of the implications of the loss of revenue.  The sale of the Industrial Estate alone would mean a loss of £1 million a year.  The only way to recoup this would be by raising Council Tax, something the Council was keen to avoid as it would put an unacceptable financial strain on the people of Herefordshire.

·        Increasing the Council Tax - the Council is aware that it needs to limit the amount of Council Tax increases in order to reduce the tax burden on the people of Herefordshire.

The only viable option was to negotiate with the housing developers on their contribution towards the development of much needed infrastructure.

Councillor T,M. James, Leader of the Liberal Democrats, said that this matter had been fully debated at the previous meeting of Council on 28th July, 2006.  He did not think there were any alternatives.  The majority of the Council had been in favour of the principle of the scheme.  He said that none of the alternative options:  raising Council Tax, cutting services or selling revenue producing assets was viable.

The Local Ward Member, Councillor W.J.S. Thomas said he had contested two elections and on both occasions there had been major discussions about the building of an access road at Rotherwas.  He said businesses in the area deserved a vote of thanks for their patience and that the economic viability of the county depended on the road and the Rotherwas Futures scheme.  He spoke in favour of housing development as a means of funding the access road.

Councillor D.W. Rule, the Cabinet Member (Children and Young People) said that young people in Herefordshire were doing well educationally and in vocational training and needed good jobs to encourage them to remain in the County.

The Leader concluded the discussion by saying that the County needed to take advantage of the funding provided by Advantage West Midlands and that those who frustrated the project would be held to account.

In relation to Item 11 - Rural Regeneration and Strategy  - in response to a query the Cabinet Member assured Council that he was continuing to press Government very hard on the issue of rural post offices.

The Leader then presented the Report of the Cabinet meeting held on 26th October, 2006.

It relation to item 1.1(iii) - Public Service Trust, Herefordshire - Councillor James, the Leader of the Liberal Democrats, supported the proposals in the report.  Councillor A.C.R. Chappell, Leader of the Labour Group - also lent his support to the proposals saying it would be an opportunity for more democracy in health and social care.  He said that the Council would face many criticisms from the public and it would be necessary to persuade them that this was the best thing for them and for the County, but that it would take time to get it right.  He regretted that Mental Health was not included in the plans.

Councillor Mrs. Barnet, Cabinet Member (Social Care Adults and Health) endorsed Councillor Chappell's views.

Councillor Mrs. French, Cabinet Member (Corporate and Customer Services and Human Resources) advised that it would be necessary to consult with staff in the Council and the PCT and keep them fully informed of progress.  She warned that although there was a tight timeframe, any slippage should be avoided.  She said that the formation of a Public Service Trust would mean a better service for residents.

Councillor W.J.S. Thomas, Chairman of the Health Scrutiny Committee also lent his support to the proposals and encouraged Members to attend any seminars on the subject.  He said this would be the most important decision to be taken by the Council over the next 12 months and said it was a great opportunity for the Council and the PCT to work together for the good of all the residents in Herefordshire.

Councillor J.G. Jarvis sounded a note of caution as he had been involved in a similar proposal in another Council and that scheme had been sabotaged and had eventually collapsed.

The Leader stated that the proposals would lead to genuine savings and improved services.  He warned that if the scheme did not go ahead that the Government, in the light of proposals in the new Local Government White Paper, might look again at the viability of Herefordshire continuing as a unitary authority.  He also spoke of the need to integrate the Council's Herefordshire Connects programme into the proposals for the Public Service Trust.

RESOLVED:  That the reports from the meetings of Cabinet held on 7th and 28th September and 12th and 26th October, 2006 be received.