Issue - meetings

In February 2010 the Council adopted the 2009 edition of the CIPFA Treasury Management in the Public Services: Code of Practice, which requires the Council to approve a Treasury Management Strategy before the start of each financial year, review performance during the year, and approve an annual report after the end of each financial year.  This report gives details of performance against the Council’s Treasury Management Strategy and Annual Investment Plan 2011/12 for the first three months of 2011/12.

Councillor Charles Gerrish made an ad hoc statement in which he referred to paragraph 5.9 of the report and asked whether the Council was investing any funds in the parent company of the Ulster Bank (the Royal Bank of Scotland).  He welcomed investment in other local authorities but asked whether any funds were invested in authorities which were considered to be at risk themselves.

Councillor David Bellotti, in proposing the item, referred to paragraph 5.5 of the report which identified that the Council’s projected total borrowing at March 2012, based on the capital programme approved in the February 2011 budget, would be £151M.  The current level of borrowing was at £90M.  He also referred to paragraph 5.6 which related to the Council’s share of the old Avon debt, because he had felt that it was important to spell out this debt in the report even though it was a deferred liability.

In reply to the comments made by Councillor Gerrish, and after taking advice from officers, he stated that the Council had no investments held in the parent company of the Ulster Bank (the Royal Bank of Scotland).  Nor did the Council have any investments in local authorities which might be considered at risk; however, he himself held the view that all local authorities were in any case underwritten by government, so those investments were not at risk.

Councillor Paul Crossley seconded the proposal.

Rationale

The Prudential Code and CIPFA’s Code of Practice on Treasury Management requires regular monitoring and reporting of Treasury Management activities.

Other Options Considered

None.

On a motion from Councillor David Bellotti, seconded by Councillor Paul Crossley, it was

RESOLVED (unanimously)

(1) To NOTE the Treasury Management Report to 30th June 2011, prepared in accordance with the CIPFA Treasury Code of Practice; and

(2) To NOTE the Treasury Management Indicators to 30th June 2011.

[Subsequent to the meeting the Council’s 151 officer gave the following clarification:  Whilst the Council currently has no direct investment with the Royal Bank of Scotland plc, the Council does hold investments with National Westminster Bank plc which is a 100% owned subsidiary of the Royal Bank of Scotland plc.  The Royal Bank of Scotland plc forms part of the Royal Bank of Scotland Group plc which is 81% owned and supported by the UK Government.  National Westminster Bank are also the Council's appointed bankers.]