On 18 March 2010 the Cabinet agreed that the Council’s preferred option for the delivery and commissioning of shared services would be a Joint Venture Company (representing a public public partnership) involving Herefordshire Council (HC), NHS Herefordshire (NHSH) and Hereford Hospitals NHS Trust (HHT). The Cabinet authorised the Deputy Chief Executive (DCE) to progress and take all necessary steps to establish a JVCo in consultation with the Leader and Deputy Leader of the Council and Trust Boards.

The Cabinet Member Corporate and Customer Services and Human Resources introduced the report which provided an update on the Shared Services programme.  Members were reminded that Cabinet agreed in March 2010 to their preferred option of a Joint Venture Company (JVCo) (representing a public public partnership).  The Cabinet also at that time authorised the Deputy Chief Executive in consultation with the Leader, Deputy Leader of the Council and the Trust Boards to take all necessary steps to establish a JVCo.  A further report would be considered by Cabinet in early Autumn which would seek a formal decision to agree the terms of the Council’s participation in the JVCo.

Cabinet were advised of key progress areas, which included:

• Refinement of the business case to reflect changes to structures, benefits, savings and cost of delivery of a JVCo.
• The appointment of Mills and Reeve as legal advisors tasked with advising on the following areas; operating within a commercial environment, employment considerations, governance arrangements.
• The development of the Agresso system leading to implementation in April 2011.
• Working with Service Change Managers of ‘in scope’ services together with the transition team to analyse information and to review and professionally challenge the process.

The full report to be presented in September would include a recommendation on the most suitable governance and legal model for a JVCo arrangement and include an updated investment appraisal.

Responding to questions and comments from Members:

• The Assistant Chief Executive Legal and Democratic (Interim) advised Cabinet that whilst a JVCo arrangement was being considered, several variations to these arrangements were possible.  Work was continuing on determining what would be proposed to Cabinet as the preferred arrangement method within these variations.
• The Director of Resources advised Members that the Council’s current financial information system ‘Cedar’ was robust for current requirements.  The Agresso system would further develop financial information and management processes.

RESOLVED that Cabinet:

(a)    note progress made on the Shared Service Project since March 2010, and;

(b)   Note the current challenges and risks, principally:

i.                    Review of the Business Case;

ii.                  Partnership agreement for establishing the JVCo;

iii.                Fundamental requirement for cultural and process change across the whole of HPS to deliver savings;

iv.                Implementation of the Agresso system in April 2011;

(c)    Note the key role of all stakeholders in leading the organisational and cultural changes required to deliver transformed support services and savings;

(d)   Note that a further report seeking formal decision to agree terms of the partners’ participation in the JVCo will be presented to the Board and Cabinet in September 2010.