Agenda item

Report number CAB4 by the Leader.

[A copy of the Chief Executive’s report number CEX296 to the Cabinet on

5^th September 2005 is re-circulated for information.]          (Enclosure)

DECISIONS:

The Council authorises the following adjustments to the budget and policy framework.

1.                  £300,000 towards the salary costs relating to the implementation of the review effective from 1 April 2006;

2.                  £150,000 to be a provisional estimate for the period 2005/06 to 2006/07 to cover the costs of the external recruitment, any redundancy payments and additional salaries payable if appointments are taken up before the 1^st April 2006.

The Vice-Chairman stated that the recommendation at section 2(ii) in report CAB04 and the recommendation at section 19(ii) should be amended to read “for the period 2005/06 to 2006/07”. He reminded Members that they would be able to consider full all aspects and principles contained in report CEX296 although discussion would mean that the Council would have to go in camera. The Chief Executive advised that CMT members would remain in the meeting to provide specialist advice and answer questions. Any members wishing to make a direct reference to officers were advised to make relevant indications to allow them to leave the meeting. The Leader of the Council moved the recommendations contained in report CAB04, these were seconded.

One member asked about the effect on pay differentials, should Corporate Directors fail to be appointed to a Strategic Director post. There was also concern over the impact to industrial relations. The Chief Executive advised members that the posts had been considered through job evaluation. The alterations to the structure would ensure that the authority would be fit for purpose

Some members were concerned about the impact of a second management restructure in a two-year period, one member spoke specifically of the impact upon Council Tax payers. Several members spoke in agreement with this, concerned that increased investment in the restructure would compromise services elsewhere. In response to the concerns about increased expenditure on salaries. One member commended the comments of the Corporate Manager of Human Resources and Occupational Development impressing the effect of intangible issues upon the effectiveness of the Council. One member suggested that the restructure would be better if done progressively to spread costs while one member, in opposition to this stated that stopping losses through top-heavy management would increase the overall gain. One member stated that the previous restructure had a negative impact on expenditure. There was also discussion over the role of the Chief Executive, who had been appointed to run the Council and to take the Authority forward for the benefit of the District.

In proposing an amendment, a member questioned the reaction of the public and consequences for frontline services. He suggested an amendment to “defer the report and approve a sum of up to £50,000 to engage consultants to subject the proposals to an independent scrutiny and report back to the Council”. The amendment was seconded and voted upon. The Leader of the Council spoke on the amended motion, emphasising that the Chief Executive had been delegated to run the Council and should be provided with the resources to ensure the necessary support for residents in the future. When put to the vote, the amendment was unsuccessful.

On summing up the original motion, the Leader stated that the restructure was not about increasing staff salary but the creation of new posts to replace old ones. Members were advised that recruitment had been unsuccessful for senior posts because of uncompetitive pay scales. She stated that following the restructure the Council would be fit for purpose in both the short and long term. The motion was voted upon and approved.

Councillor O’Hare requested that his vote against the motion be recorded.

In accordance with Council Procedure rule 9, as the meeting was nearing being in progress for three hours, the majority of members present voted for the meeting to continue.