Appendices separate for Committee members only.
The documents are exempt under Paragraphs 14 and 16 of Schedule
12A of The Local Government ACT 1972. (Information relating to financial,
business and legal matters).
The front report will be open but the Appendices include information which is commercially and legally sensitive. That is because releasing the full appendices would permit suppliers who are independent of the Council to come to conclusions about the financial performance and management fees of the various delivery models. As a consequence, publication could undermine any future procurement exercise and open the Council to financial risk. It also includes legal advice which is subject to legal privelege.
Cyflwynwyd gan:Cyng. / Cllr Craig ab Iago
Decision:
Resolved
-
that the Full
Council approves the business case to establish a Gwynedd Council controlled
Company to undertake the provision of leisure facilities.
-
to recommend
that the Full Council approves the establishment of a Gwynedd Council
controlled Company, in accordance with the format outlined within the business
case, to undertake the provision of leisure facilities and to draw attention to
the observations and considerations of the Scrutiny Committee.
-
to approve the
business case to agree to release one-off funds of £165k from the Transformation
Fund to establish the company.
Minutes:
The item was submitted by Cllr Craig ab Iago.
RESOLVED
- To recommend that the Full
Council approves the business case to establish a Gwynedd Council controlled
Company to undertake the provision of leisure facilities.
-
To recommend that the Full Council approves the establishment of a
Gwynedd Council controlled Company, in accordance with the format outlined
within the business case, to undertake the provision of leisure facilities and
to draw attention to the observations and considerations of the Education and
Economy Scrutiny Committee held on 26.9.17.
- To approve the business case to
agree to release one-off funds of £165k from the Transformation Fund to
establish the company.
DISCUSSION
A report was submitted to outline the basis for establishing a Council
Controlled Company to provide leisure facilities within the County. It was
reiterated that this was an opportunity to achieve efficiency savings without
affecting the people of Gwynedd. A number of possible options had been
identified and legal advice sought on the associated risks associated with the
models. It was noted that establishing a new Council controlled company would
secure the continuation of the existing service and realise the savings
requirement in full.
Attention was drawn to the table in the
report that summarised an evaluation of the options and although it appeared
that creating a controlled company was not the best option, this was the choice
that would protect the cultural risks in relation to the Welsh language and
other Council principles. It was emphasised that service users and staff would
see no difference - there may even be improvements.
Attention was drawn to the observations of
Economy and Education Scrutiny Committee (26.9.17) circulated at the meeting.
It was noted that the Scrutiny Committee had recommended option 6 as a
direction and clearly emphasised that choosing the right Leadership was crucial
to the company's success. The need for further scrutiny as the work developed
was also noted.
Comments arising from the discussion:
- This step was logical and sensible.
- The Council would have more control over the
leisure services rather than using a private company (although a private
company was likely to score higher in terms of savings).
- There was a need to ensure that the Company
Board operated as a Board and not a Committee and should be supported.
- There was a need to commend the department
for achieving this saving in full.
In response to an observation regarding the
process for scoring an external company and their capacity to offer further
savings, it was noted that there was a need to consider pension contributions
and working conditions that were likely to differ.
In response to a question regarding the
process of job advertising, it was not that there was an option for the Council
to appoint a Leader that would transfer to the new company, or establish a
company first and allow the company Board to make the appointment. It was
emphasised again that appointing an effective leader was crucial. It was
reiterated that the Board's constitution had not been determined.
Awdur:Sioned Williams
Supporting documents: