Agenda and minutes

The Committee was notified that Councillor Ian Stokes was substituting for Councillor Kaberry-Brown for this meeting only.

None disclosed.

It was anticipated that, in accordance with Section 100A(4) of the Local Government Act 1972 (as amended) the public may be excluded from the meeting during consideration of the following item of business because of the likelihood that exempt information, as described in paragraph 3 of the Act (as amended) would be disclosed to the public.

The following decision taken by the Executive Member on Tuesday 21^st March 2017 has been the subject of a call-in request by Councillors Adam Stokes, Ian Stokes, Jacky Smith, Robins and Moseley, in accordance with 6.19 of Article 6 of the Constitution on the following grounds:

REASONS FOR EXERCISING CALL-IN:

·         There has been inadequate/insufficient consultation;

·         Insufficient consideration of all options/relative weighting of options.

·         Also believe that it's a big risk and could be spread far better than the present proposal

.

Non Key Decision:

That approval is granted in accordance with the Investment Strategy.

A copy of report PD055 (contains exempt information under paragraph 3 of Schedule 12A of the Local Government Act 1972) and associated plan together with a copy of the decision notice is enclosed.

Decision:

That no further action was to be taken.

The Non Key Decision made by the Executive Member of Finance & IT on 21^st April 2017 – That approval is granted in accordance with the Investment Strategy took immediate effect.

The Scrutiny Officer outlined to Members the reason for the committee meeting, who called the decision in and the order of proceedings that the call-in would take.

On behalf of three of the Members who had called the decision in Councillor Adam Stokes stated that he felt that inadequate and insufficient consultation had taken place. Why were properties not being looked at within the district, why invest in a property outside the district where business rates would be given to another authority. No other facts or information on any other options considered seemed to be available. The investment could be seen as a big risk, smaller investments could yield bigger income with smaller risks attached.

Councillor Ian Stokes stated that nobody seemed to know about any investment outside of our own district until the decision had been made.  He felt that investments should be looked at within the district.

Councillor Jacky Smith stated that she had looked in detail at the information available and she felt that it wasn’t a brilliant investment proposition as the owners of the site had changed three times which usually wasn’t a good sign.  She felt that companies could have good profits but they could also quickly become unprofitable.  She felt that investment should be with businesses within South Kesteven, it did not give confidence to those business within South Kesteven when the Council was seen to be investing in property outside the district. She felt that there were far too many unknowns.

A vote was taken by the Committee as to whether to proceed with the call-in.

Decision:

It was agreed to continue to proceed with the call-in.

One Member asked for clarity about what money came to the Council if the proposal went ahead.  Rental income came to the Council, business rates would go to the authority where the property was situated.

The Executive Member then gave his reasons for making the decision. The decision had been taken in accordance with the Investment Strategy. The Investment Strategy had been discussed at length at the Resources PDG in November 2015 and agreed by the Executive at their meeting in December 2015.  Officers had brought forward numerous investment cases within the district but it was getting the appropriate business within the district.  Members were welcome to ask questions of Executive Members at any time about proposed decisions scheduled to be made by the Executive but nobody had contacted him in connection with this proposed decision.

The Strategic Director Corporate and the Corporate Finance Manager gave some background context.  All Members were aware of the position with local authorities and the financial position with the withdrawal of Government grants.  The current rate of return on investments was very poor.  Reserves needed to be used in the  ...  view the full minutes text for item 52.