Issue - meetings

Freedom of Information and Arm's Length Companies - An Update

Meeting: 06/01/2014 - General scrutiny committee (Item 54)

54 Freedom of Information and Arm's Length Companies - An Update pdf icon PDF 116 KB

To update the Committee on the freedom of information report presented on 4 March 2013; this item was deferred at the 11 November 2013 meeting.

Minutes:

The Chairman reminded the Committee that this item had been carried forward from the last meeting (minute 36 refers).  He commented that, although specifically about advice previously given to the Committee about Hereford Futures Ltd, the associated issues were relevant to other arm’s length companies set up by councils. 

 

The Solicitor to the Council commented on the following:

 

a)      The matter went back to at least March 2013, when the Committee received a report entitled ‘Freedom of Information and Arm’s Length Companies’ (minute 53 of 2012/13 refers);

 

b)      The current report provided an opinion on the narrow technical question as to whether the Freedom of Information Act (FOIA) applied to Hereford Futures Ltd and, for the reasons set out in the report, it was concluded that it did not.

 

c)      It was noted that, from the questions received and comments made, there were still issues about governance and accountability.

 

d)      It was proposed that a further report be presented to the 10 March 2014 meeting, primarily focussing on Hereford Futures Ltd but also picking up matters of general applicability to other companies.  Issues would include: Council money invested in Hereford Futures Ltd; the support provided in terms of officer time, as far as it was quantifiable; Council liabilities going forward; and what had been achieved through mechanism of Hereford Futures Ltd.

 

The Vice-Chairman expressed concerns about the lack of clarity regarding the ownership and accountability of Hereford Futures Ltd.  In response to questions, the Solicitor to the Council explained that:

 

i)        the Chief Executive of Hereford Futures Ltd had indicated that the current members were directors of the company (further research would be undertaken to inform the next report);

 

ii)       companies limited by guarantee did not have shares and were owned by the members;

 

iii)      he did not have access to the company’s own records to enable a definitive answer to be given about ownership but it seemed that, where a council did not have a majority of directors on a company limited by guarantee, FOIA did not apply;

 

iv)      it was appropriate for councillors to seek assurance that public money had been properly accounted for; and

 

v)      the benefits of Hereford Futures Ltd would be explored in the next report.  It was noted that companies limited by guarantee in other areas had been successful in securing external funding that might not otherwise have been available to councils or council controlled companies.

 

The Vice-Chairman said that the latest registered accounts for Hereford Futures Ltd suggested that, for the last two years, the company had been almost entirely, if not entirely, funded by money from Herefordshire Council.  She requested that the next report consider the proportion of the funding received by the company from Herefordshire Council and from outside bodies.  The Solicitor to the Council said that details of Council funding could be provided and he would endeavour to obtain information from the company about other sources of funding.

 

The Committee discussed the report and related issues, the principal points  ...  view the full minutes text for item 54