Agenda item

To provide an overview of the findings of a review of the operational aspects of the Council’s markets service.

The report on the operational practice of the Markets was introduced by the Deputy Leader of the Council.

Weekly markets were held in the market towns of Grantham (Saturday), Stamford (Friday and Saturday), and Bourne (Thursday and Saturday and operated by the Council utilising directly employed staff.  Following a change in the operational management arrangements for the markets service, an external review of processes and procedures was undertaken.  A significant number of issues were identified which emanated from a history of poor management of the service over a significant period of time.  The review was divided into four areas – Employment, Income, Waste Collection and Operations (including Health and Safety).  An action plan had been developed, supported by a number of corrective measures.

All market trader fees were collected in cash on the day of trading.  This exposed the Council to avoidable risks.  Where possible, cash was to be avoided and card payments encouraged in future.  There was an opportunity to introduce a direct debit or standing order system.

Traders at the Saturday markets at Stamford and Bourne (one trader only) were required to remove their own waste.  A supplementary fee for waste disposal for excess waste was detailed in the fees and charges but only charged to fruit and vegetable stalls.  As such, the costs associated with the collection and disposal of waste from traders were effectively being subsidised.  As a Council, charging for waste removal would discourage the amount of waste generated. 

Operational and health and safety issues were outlined in the action plan.  Risk assessments were to be updated to reflect a number of issues.

Employment practices were to be updated in line with current HR policies and to address the fact that the service lacked resilience and the operatives were employed on a casual basis and therefore not contractually obliged to attend work, often relying on the goodwill of a number of dedicated individuals.

Members raised the following points during discussion:

·            The inconsistencies and security issues around cash collection was cause for concern and left staff vulnerable to potential accusations as well as the lack of basic procedures and compliance with job descriptions.

·            Had all monies due historically, been collected?

·            Grantham Market in particular was widely reported as losing money – was that due to such anomalies mentioned within the report?

·            The nature of the frequency of a direct debit payment option could have enabled stallholders to amass several weeks debt.  Card payments were instant.

·            Safety of the working practices was an urgent consideration.  There was an understanding that due to the nature of the work and lack of guarantee of staff numbers on the day, the team generally took on whatever roles were required.

·            The anti-social hours of the work had to be acknowledged.

·            Was there an option to store equipment at the new Depot if rent was being charged on the Grantham store?

·            An internal audit was completed in 2021, did the scope of this include operational practices?

·            Lessons were to be learnt from the findings of the review.

·            Officers were commended for their work in completing the action plan and Members wanted to look forward to an improvement in market operations.

The Chief Finance Officer confirmed that the proposed action plan was there to provide assurance to Members that the identified issues were being addressed, some already completed and the updated action plan would be presented at a future meeting.  The Council needed to operate within the parameters of its recruitment policies and procedures with robust internal procedures and governance.  Fees and charges were agreed by the Council on an annual basis and should not set at a local level between officers and stallholders.  Members were to consider that the timelines stated within the action plan were appropriate to facilitate its completion.  The Grantham store was owned by South Kesteven District Council so there was no rental charge and its close location to the market area was an important consideration when considering alternative storage arrangements.  It was recognised that the store was underutilised currently.  An audit into cash-handling practices had been completed in 2021 and some weaknesses in market cash collection procedures had been captured.  This was rectified and actions agreed by Governance and Audit Committee within the same year. 

The Chief Finance Officer continued that Grantham had to pay a market fee to hold the market in Grantham whereas Bourne and Stamford did not and the markets were not wholly comparable in terms of costs as which operated differently.

The Deputy Leader informed Members that maintaining popularity of the markets had been a struggle due to the changes in retail practices, particularly during the pandemic.  The Stamford market, however, was one of the most popular in the East Midlands and the Council should recognise this achievement.

(Councillors’ Emma Baker, Phil Gadd and Ian Selby left the meeting at 15:00)

The Assistant Director for Operations and Public Protection confirmed that the market traders had to abide by a code of practice.  The supervisor role was currently vacant which had an impact on the working practices of the team.  Changes had already been implemented in the collection of fees.  As an example, the majority of stallholders in Stamford paid by card along with all but one at Bourne Market.

The Chief Finance Officer clarified that the independent review found no evidence of fraud or misappropriation of funds.

It was proposed, seconded, and AGREED that the Governance and Audit Committee:

a)         Approved the Action Plan.

b)         Agreed to receive an update on the actions undertaken in three months

c)         Recommended that the review of the market service be passed to the relevant Overview and Scrutiny Committee for consideration.