To receive presentations from Cabinet Members on key issues.

Leader of the Council

 

The Leader addressed the Committee explaining that he intended to focus on the following strategic issues: external issues, partnerships and diversity and community leadership.

 

He spoke first about the Comprehensive Spending Review which had been described as the worst settlement for local government for 10 years.  He noted that this placed severe pressure on the Council which, in any event, faced particular funding difficulties because of its demography.

 

He noted also the move to the allocation of funding to local authorities through the Local Area Agreement rather than specific grants and the importance of the Council ensuring that its priorities were right and that it did not lose resources as a consequence. 

 

He commented also on the regional agenda entailing the removal of regional assemblies and the enhanced powers of Regional Development Agencies.  The Council had a good relationship with Advantage West Midlands, as shown by a number of projects underway in the County.  It would be important to maintain this relationship.

 

The development of City Regions with the view that allocating funds to the main centres would spread wealth outwards was also something that might be to the Council’s detriment.

 

The framework of the regional spatial strategy also needed to be right.

 

At a recent meeting a civil servant had acknowledged that Herefordshire was “resource challenged”.  This made partnership working all the more important.  Whilst the development of a Public Service Trust within the originally proposed timescale had proved too ambitious it was important that there was effective joint working with the Primary Care Trust. 

 

Similarly, work with the Hereford Hospitals NHS Trust and the development of the work on Community Forums with the Police were important.

 

He concluded by commenting on the pressures it was becoming clear were likely to be generated as result of the growing number of seasonal and migrant workers within the County, although the precise numbers involved were unknown.  He noted that all Members would have a community leadership role to play in addressing the emerging issues.

 

In the course of discussion the following principal points were made:

 

·         That migrant workers were no longer seasonal and were permanently residing in the County.  This clearly had considerable implications not least for accommodation and schools. As national data could not be relied upon it was asked how the Council planned to monitor numbers.

 

The Leader acknowledged that  there was an issue that needed to be addressed with public sector partners and the business sector.

 

·         In response to comments about the treatment of migrant workers by employers  the Chief Executive requested that if there were instances where it was believed that the minimum wage was not being paid this should be reported to officers.  His understanding was that where allegations had been investigated few examples had been found of wrongdoing but it was important that the issue was addressed.

 

·         It was asked whether all Members should be invited to give a view to the Diversity Officer of the position in their wards and any issues.

 

·         A Member expressed his disappointment at the focus of questioning of the Leader, referring to a range of issues which the Council currently faced which he considered would adversely affect the Council’s rating in the external Comprehensive Performance Assessment.

 

·         The demographic pressures associated with an ageing population were discussed.  It was asked how great the impact was given that a number of older people coming into the County were quite affluent.  The Chief Executive commented that the recent needs analysis undertaken by the Council provided a sound assessment of the implications.

 

The Chairman thanked the Leader.

 

Corporate and Customer Services and Human Resources

 

The Cabinet Member’s presentation was deferred.

 

Cabinet Member (Resources)

 

A report from the Cabinet Member (Resources) had been circulated as part of the agenda papers together with the Resources Directorate Annual Report 2006/07.  This set out an overview of the Directorate, current performance, future priorities, performance improvement cycle issues, and two suggested items for future scrutiny (the accommodation strategy and the financial strategy, both of which were already in the Committee’s work programme).

 

The Cabinet Member (Resources) introduced his report and invited questions.

 

In the ensuing discussion the following principal points were made:

 

·         Asked about progress with the accommodation strategy the Cabinet Member (Resources) said that, although no site had been chosen, work was quite advanced with clarity about what was required but a decision on where this should be located likely to take 2-3 more months.

 

The Director of Resources added that the work involved establishing the number of staff who would need to be accommodated in the back office and preparing strategic options for the site, with a view to reporting to the Corporate Management Board and Cabinet before Christmas.

 

A Member expressed surprise that establishing what amount of accommodation was required was still an issue, given that a view on this must have been reached prior to the decision to acquire the offices at Plough Lane.

 

The Director of Resources said that it had been decided to review the position and confirm the accuracy of the number of staff to be accommodated, working patterns and space requirements. The Cabinet Member (Resources) added whilst the number of people was relatively easy to identify the view on the space they would need had changed over time. 

 

·         It was asked if the Committee could have sight of the project plan to understand the methodology and when the Committee could expect options to be defined and assess them.  A cost estimate was also requested.

 

The Director of Resources said that when the strategic options were refined it would be intended to give indicative costings and then firm these up.

 

·         Asked about the involvement of the Primary Care Trust in developing the Strategy the Director said that, whilst there had been discussions with partners about front office services, it had been decided that a view on accommodation of back office functions needed to be given by Cabinet before discussing the position with partners.

 

·         The Cabinet Member (Resources) in reply to a further question about how accommodation need could be established without discussions with the PCT said that the planning took account of the need for flexibility and further future development.  Modular buildings were being considered to avoid future constraints.

 

·         A Member registered concern that the rate of progress on the accommodation strategy was too slow.

 

·         The Chairman reminded the Cabinet Member and Director that the Committee had highlighted accommodation as a key issue upon which it wished to be kept informed and that he would expect a report to be made as soon as possible.

 

·         The report noted that it was expected that the financial governance issues in ICT which had led to the external auditor’s adverse opinion on the Council’s arrangements for securing value for money in the Annual Governance Report for 2007 would have an adverse impact on the Audit Commission’s Use of Resources assessment for 2007/08.  Questioned upon this statement and the implications the Director of Resources explained that whereas in previous years the auditor had issued an unqualified audit opinion on value for money, this year the finding had been adverse and had been qualified.  Three out of twelve criteria against which the adequacy of the Council’s arrangements for economy, efficiency and effectiveness in its use of resources were judged had not been met.  These three criteria had been qualified due to the financial governance issues identified in the Director of Resources’ Special Report on financial governance issues in ICT and Customer Services.  The adverse opinion on the Council’s arrangements for securing value for money would have a direct bearing on the Use of Resources assessment and for this reason the Director of Resources was anticipating the rating to reduce from good to fair.

 

·         The enforcement of procurement policies as a priority was welcomed. 

 

·         A question was asked about the Council’s ability to amend the partnership arrangements with Amey Wye Valley Ltd, the development of which was identified as a key priority in the report.  In reply it was advised that the Contract contained the flexibility to amend the arrangements provided this was by agreement.  The Cabinet Member emphasised that he had made clear what was expected in terms of service delivery and the response from Amey PLC had appeared positive.  Performance would be assessed over time.  

 

·         The report referred to a potential capacity issue in Asset Management and Property Services when the accommodation strategy was finalised and a project agreed for implementation.  Asked to elaborate on this the Director of Resources said that the accommodation strategy would need a huge resource to deliver it.  The Council’s existing Capital Programme was large and it had therefore seemed important to highlight the pressure on the property services team.

 

·         The generation of capital receipts from the smallholdings estate and their reallocation was discussed.  The Cabinet Member stated that he was continuing the policy of his predecessor, which was to seek to generate at least £1million per annum in receipts.  Any receipts  were allocated to the general capital reserve. 

 

There was some lack of clarity over the disposal policy.  The Committee accepted that this would be resolved at its next meeting at which it had  called for a report on the smallholdings policy, emphasising that it required the current policy document to be presented as part of that report.

 

·         Asked about progress in ensuring that the Council’s public buildings complied with the Disability Discrimination Act the Director advised that the Council was on track to meet its target.

 

·         Questions were asked about progress on the development of the new livestock market. The Head of Asset Management and Property Services reported that the balancing pond for flood alleviation remained part of the proposal.  A meeting for local residents prior to the submission of a planning application was being arranged.  It was requested that Local Members be kept informed.

 

·         It was asked whether an overview of all major projects was available with timelines which would enable the Committee to monitor progress.  The Director of Resources replied that an update on the Capital Programme formed part of the integrated performance report.  Work was ongoing to make the capital programme procedures more robust with the intention that each project should have its own project management arrangements.

 

A further question was asked as to whether the format of the integrated performance report could be enhanced to provide more information on the project plans for major projects to assist the Scrutiny Committees in monitoring progress.  Concern was expressed that there did not to appear to be a clear overview of the capital programme and it was important that the Committee needed to be able to comment at an early stage on project proposals before final decisions to proceed were taken.

 

The Chief Executive commented that the key lay in effective project management and there continued to be resistance within directorates to the cost that this entailed. 

 

The Chairman thanked the Cabinet Member.