Issue - meetings

REPORT OF THE SERVICE DIRECTOR – COMMERCIAL

To provide the Cabinet Sub Committee (Local Authority Trading Companies’ Shareholder) an update on the progress of setting up a trading company.

The Part 1 discussion was suspended whilst the Part 2 report was considered (Minute 9 refers)

Following consideration of the Part 2 report the Sub-Committee returned to Part 1 to make the decision.

RESOLVED:

(1)       That the content of the report entitled Trading Company Update be noted:

(2)       That the Service Director – Commercial be requested to start investigations into the option of taking on and operating social housing offered through Planning obligations;

(3)       That the Service Director Commercial be requested to keep Member of the Sub-Committee appraised of progress regarding further work in this area.

(4)       That the Service Director – Commercial be requested to convene another meeting of this Sub-Committee to discuss progress regarding further work in this area.

REASON FOR DECISIONS: To keep Members informed on the progress in setting up a trading company.

Audio recording – Session 1 – 2 minutes 33 seconds

Councillor Paul Clark queried whether declarations of interest were needed as the Members of the Sub-Committee were also residents in the District.

The Committee, Member and Scrutiny Manager advised that all Councillors were residents and that the business of the Council had to continue.

The Service Director – Commercial presented the report entitled Trading Company Update and drew attention to the following:

·                Paragraph 7.1 set out the background;

·                The business case was included in the Part 2 papers;

·                Paragraph 8.4 explained that there was not sufficient financial tolerance to make a company viable;

·                Paragraph 8.5 gave the reasons that the financial modelling did not offer financial security;

·                The Directors agreed that it did not make sense to register the company at this time;

·                Officers were investigating other opportunities to see if the financial viability could be improved;

·                If financial viability can be improved a report would be brought to this Committee to seek approval to set up the company;

·                The aim was to register the company in time to be ready to trade when the Harkness Court renovations were complete;

·                The company name had been selected following staff and Councillor suggestions and the Internet domain name had been purchased, although the name would not be announced until the company had been registered;

·                The Council could still generate income even without a company.

The following Member asked questions:

·                Councillor Paul Clark:

The Service Director - Commercial responded to questions as follows:

·                The Council could consider becoming an Registered Social Landlord and take on any social housing allocated as part of planning applications, but this option had not been looked at or costed;

·                They were currently looking to find opportunities relating to what the Council already owned or could buy.

The Service Director – Resources advised that:

·                 If the financial modelling demonstrated that it would be difficult to make a profit when charging market rates for rented properties, it would be all the more difficult if charging social rent rates unless the number of properties was increased.

The Part 1 discussion was suspended whilst the Part 2 report was considered (Minute 9 refers)

Audio recording – Session 2 – 5 seconds

Following consideration of the Part 2 report the Sub-Committee returned to Part 1 to make the decision.

The Service Director Commercial advised that he would be making a presentation on this subject to the Overview and Scrutiny Committee on 17 September 2019.

RESOLVED:

(1)       That the content of the report entitled Trading Company Update be noted:

(2)       That the Service Director – Commercial be requested to start investigations into the option of taking on and operating social housing offered through Planning obligations;

(3)       That the Service Director Commercial be requested to keep Member of the Sub-Committee appraised of progress regarding further work in this area.

(4)       That the Service Director – Commercial be requested to convene another meeting of this Sub-Committee to discuss progress regarding further work in this area.

REASON  ...  view the full minutes text for item 7