Issue - meetings

The Council will be asked to agree the appropriate corporate governance arrangements for Council interests in Local Authority Companies and approve the annual accounts of Aequus Development Limited (ADL) and Bath Tourism Plus (BTP).  The Council will also be asked to consider the request by Bath Tourism Plus for working capital finance in the form of a loan at commercial rates to enable the company to relocate and refurbish a new site for the Visitor Information Centre and a new back office.  This will lead to the reduction of operational overheads.

The Council considered a report regarding the appropriate governance arrangements for its interests in Local Authorities companies and their annual accounts.

On a motion from Councillor Charles Gerrish, seconded by Councillor Tim Warren, it was

RESOLVED

1.  To note the recommendations of the EY corporate structure review report (Appendix A);

2.  To agree the principles and structures for governance arrangements of Council companies as set out in the proposed Protocol (Appendix B);

3.  To delegate the implementation of the group structure and required streamlining to the Chief Executive, in consultation with the Leader and Portfolio Holder for Finance; section 151 Officer and Monitoring Officer;

4.  To note the ADL 2016/17 year end draft audited accounts (Appendix C) recognising that they have been presented to Resources PDS;

5.  To note the BTP 2016/17 year end draft audited accounts (Appendix D) and recommend that they should be presented to the Planning, Housing & Economic Development Policy Development & Scrutiny Panel;

6.  To approve the addition of a new scheme of £300k loan into the Capital Programme entitled BTP transitional funding;

7.  To delegate authority to authorise the loan to BTP to the Strategic Director of Resources (s151 Officer), in consultation with the Cabinet Member for Finance and Efficiency, once satisfied that due diligence has been completed and subject to the relevant terms and conditions;

8.  To note that as a loan condition, a detailed review of the BTP business plan is required in advance with the future years plan from 2018/19 to be presented to the Council Shareholder for approval, and which also demonstrates concern for the tourism needs and potential of North East Somerset;

9.  To request that Cabinet incorporate the following recommendations, made by the Resources PDS panel on 13^th September 2017 into the proposed governance structure;

a.  That regular performance reports be brought to the relevant Scrutiny Panel or Committee on a 6 monthly basis on all commercial activity;

b.  That the principle of a clear distinction between the role of Cabinet and the role of the board/company be established within a reasonable period of time; and

c.  That legal advice as to how and when a greater scrutiny mechanism can be achieved for decisions made by, or in consultation with, the Leader in his or her role as shareholder is obtained.

[Notes:

1.  The wording in resolution 9 above was proposed by Councillor Andrew Furse and accepted into the substantive motion by the mover and seconder of the motion.

2.  The underlined wording in resolution 8 above was proposed by Councillor John Bull and accepted into the substantive motion by the mover and seconder of the motion.

3.  The successful resolution was carried with 54 Councillors voting in favour and 1 abstention.]