19 February 02 (11.00 am)

COMHAIRLE NAN EILEAN SIAR

Minute of Meeting held in the Council Offices, Stornoway, on Tuesday 19 February 2002 at 11.00 am.

PRESENT

Mr Alexander A MacDonald (Chairman)

Mr Roderick J Murray (Vice-Chairman)

Mr Angus Campbell

Mrs Katie M Mackenzie

Mr Donald I Nicholson

Mr Malcolm J Macleod

Mr Norman M Macleod

Mr Iain Morrison

Mr Finlay Morrison

Mr Roderick Morrison

Mr Donald M Mackay

Mr Norman A Macdonald

Mrs Morag Munro

Mr Angus M Graham

Mr Donald Macdonald

Mr Malcolm J Graham

Mr Archie K Campbell

Mr Ian M Macleod

Mr Donald Maclean

Mr George Lonie

Mrs Mary Bremner

Mr Angus Nicolson

Mr Ronald J Mackinnon

Mr Murdo Macleod

Mr David Blaney

Mr Norman L Macdonald

Mr Donald Manford

Mr Alasdair G Macrae

APOLOGIES

Mr Philip R McLean

Prayer

The Meeting was opened with Prayer led by Mr Donald I Nicholson.

MINUTES

Policy & Finance Committee

1

The Report of Meeting of the Policy and Finance Committee of 19 February 2002 was submitted and noted.

FINANCE

Revenue Estimates 2002/2003

2

With reference to Item 2 of the Decision Report of the Policy and Finance Committee of 19 February 2002, the following were submitted:

(1) a Report regarding the finalising of the Comhairle's Revenue Estimates for the financial year 2002/2003 including approval of the base budget for the year, setting the level of the Council Tax for the year, allocating estimated additional revenue resources available and indicating the assumed Council Tax level at Band D for the year 2003/04. Proposals to allocate the additional revenue resources were appended to the Report; and

(2) the Draft Summary Budget Book for 2002/03.

The Vice-Convener referred to the meeting of the Policy and Finance Committee of 19 February 2002 and outlined the background to the setting of the Council Tax and the budget process. In the statement, the Vice-Convener referred to the three year budget settlement intimated for 2001/02 to 2003/04 and the requirement within that to publish firm Council Tax figures for each year and indicating that he would be recommending the anticipated increase for 2002/03 of 6.5% giving a Band D Council Tax level of £815.

He referred also to the difficulties experienced during the last fifteen months, particularly with regard to the DLO/DSO deficits and stated that it reflected credit on the Comhairle that it had not been blown off course and that the figure indicated for 2002/03 could still be recommended. He paid tribute to the workforce at the DLO/DSO for the way in which they had responded to the problem and for the determination shown to tackle them and intimated that two major contracts had now been won in-house and expressed the hope that a better time lay ahead. He stated that prudent management of the Comhairle's budget resources had enabled a sum of £218,000 be to be carried forward from the 2001/02 contingency to support the 2002/03 budget to which had been added a sum of £327,000 identified in the AEF announcement. This gave a total of £545,000 available for service growth. He outlined how it was proposed that these resources be allocated and indicated that, in coming to these conclusions, the Budget Working Group and the Policy and Finance Committee had tried to balance the competing needs and services for the corporate good of the authority and to address those areas which were traditionally overspent. He referred to the forthcoming implementation of the Sutherland Report on care of the elderly and the Better Neighbourhoods Fund, indicating that the latter would add £1.3 million to service delivery over the next two years following the finalisation of a revised scheme. The Vice-Convener concluded that the budget, as proposed, attempted to strike a balance between demands and cost and that achievable targets for improved services within a cost framework which could be afforded.

Mr Roderick J Murray, seconded by Mr Norman L Macdonald, moved:

(1) approval of the recommendations contained in the Decision Report of the Policy and Finance Committee of 19 February 2002;

(2) approval of the Draft Revenue Budget contained in the Draft Budget Book for 2002/03, together with the allocations to Service Committees detailed in Appendix 1 to the Report by the Director of Finance;

(3) that, for the purposes of Section 93 (1) (a) of the Local Government Finance Act 1992, the Council Tax for properties listed in the valuation Band D be set at an amount of £815 for the financial year 2002/03; and

(4) that the assumed level of Council Tax at Band D for 2003/04 be £867.

Mr Finlay Morrison, seconded by Mrs Katie M Mackenzie, moved an amendment in the following terms:

That in light of the perilous state of the Western Isles economy and the continuing diminution of Council services, particularly in the rural areas, the Council Tax increase for the years 2000-2003 be restricted to 3.5% with the subsequent savings to be found within the totality of the Council's overall budgets. In looking at ways of achieving the savings required, particular emphasis should be placed on reducing the bureaucracy of the Council which has expanded in recent years at an unsustainable rate. The savings exercise should seek to provide further additional resources for the Council's front line services i.e. roads, repairs and maintenance, social work services etc many of which are now in a state of decline.

Whilst we recognise that the Council requires additional resources from central government, we do not believe that resources currently available to the authority are providing best value to the people we are elected to represent. It is a measure of this remoteness from the people we serve that Councillors in here today should seek to impose an increase in Council Tax way and above the rest of Scotland. We will continue to argue that there needs to be a recognition within the Council that we cannot continue to fund an ever increasing bureaucracy at the expense of the front line services which people require.

It was agreed that the vote be taken by roll call, in terms of Standing Order 53.

On the matter being put to the vote, there voted as follows:-

Motion Amendment

Mr Alexander A Macdonald Mrs Katie M Mackenzie

Mr Roderick J Murray Mr Angus M Graham

Mr Malcolm J Macleod Mr Finlay Morrison

Mr Iain Morrison Mr Donald M Mackay

Mr Roderick Morrison Mr Donald Macdonald

Mr Norman A Macdonald Mr Ronald J Mackinnon

Mr Malcolm J Graham Mr David Blaney

Mr Ian M Macleod

Mr George Lonie

Mr Angus Nicolson

Mr Murdo Macleod

Mr Norman L Macdonald

Mr Alasdair G Macrae

Mr Angus Campbell

Mr Donald I Nicholson

Mr Norman M Macleod

Mrs Morag Munro

Mr Archie K Campbell

Mr Donald Maclean

Mrs Mary Bremner

Mr Donald Manford

The Chairman declared that the Motion had been carried.

The Comhairle agreed:

(1) to approve the Draft Revenue Budget contained in the Draft Budget Book for 2002/03, together with the allocations to Service Committees detailed in Appendix 1 to the Report by the Director of Finance;

(2) that for the purposes of Section 93 (1) (a) of the Local Government Finance Act 1992 the Council Tax for properties in Na Eileanan an Iar listed in the Valuation Band D be set at an amount of £815 for the financial year 2002/03; and

(3) that the assumed level of Council Tax at Band D for 2003/04 be £867.

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PRESENT	Mr Alexander A MacDonald (Chairman)
	Mr Roderick J Murray (Vice-Chairman)	Mr Angus Campbell
	Mrs Katie M Mackenzie	Mr Donald I Nicholson
	Mr Malcolm J Macleod	Mr Norman M Macleod
	Mr Iain Morrison	Mr Finlay Morrison
	Mr Roderick Morrison	Mr Donald M Mackay
	Mr Norman A Macdonald	Mrs Morag Munro
	Mr Angus M Graham	Mr Donald Macdonald
	Mr Malcolm J Graham	Mr Archie K Campbell
	Mr Ian M Macleod	Mr Donald Maclean
	Mr George Lonie	Mrs Mary Bremner
	Mr Angus Nicolson	Mr Ronald J Mackinnon
	Mr Murdo Macleod	Mr David Blaney
	Mr Norman L Macdonald	Mr Donald Manford
	Mr Alasdair G Macrae

APOLOGIES	Mr Philip R McLean

Prayer		The Meeting was opened with Prayer led by Mr Donald I Nicholson.
		MINUTES
Policy & Finance Committee	1	The Report of Meeting of the Policy and Finance Committee of 19 February 2002 was submitted and noted.
		FINANCE
Revenue Estimates 2002/2003	2	With reference to Item 2 of the Decision Report of the Policy and Finance Committee of 19 February 2002, the following were submitted:

		(1) a Report regarding the finalising of the Comhairle's Revenue Estimates for the financial year 2002/2003 including approval of the base budget for the year, setting the level of the Council Tax for the year, allocating estimated additional revenue resources available and indicating the assumed Council Tax level at Band D for the year 2003/04. Proposals to allocate the additional revenue resources were appended to the Report; and
		(2) the Draft Summary Budget Book for 2002/03.
		The Vice-Convener referred to the meeting of the Policy and Finance Committee of 19 February 2002 and outlined the background to the setting of the Council Tax and the budget process. In the statement, the Vice-Convener referred to the three year budget settlement intimated for 2001/02 to 2003/04 and the requirement within that to publish firm Council Tax figures for each year and indicating that he would be recommending the anticipated increase for 2002/03 of 6.5% giving a Band D Council Tax level of £815.
		He referred also to the difficulties experienced during the last fifteen months, particularly with regard to the DLO/DSO deficits and stated that it reflected credit on the Comhairle that it had not been blown off course and that the figure indicated for 2002/03 could still be recommended. He paid tribute to the workforce at the DLO/DSO for the way in which they had responded to the problem and for the determination shown to tackle them and intimated that two major contracts had now been won in-house and expressed the hope that a better time lay ahead. He stated that prudent management of the Comhairle's budget resources had enabled a sum of £218,000 be to be carried forward from the 2001/02 contingency to support the 2002/03 budget to which had been added a sum of £327,000 identified in the AEF announcement. This gave a total of £545,000 available for service growth. He outlined how it was proposed that these resources be allocated and indicated that, in coming to these conclusions, the Budget Working Group and the Policy and Finance Committee had tried to balance the competing needs and services for the corporate good of the authority and to address those areas which were traditionally overspent. He referred to the forthcoming implementation of the Sutherland Report on care of the elderly and the Better Neighbourhoods Fund, indicating that the latter would add £1.3 million to service delivery over the next two years following the finalisation of a revised scheme. The Vice-Convener concluded that the budget, as proposed, attempted to strike a balance between demands and cost and that achievable targets for improved services within a cost framework which could be afforded.
		Mr Roderick J Murray, seconded by Mr Norman L Macdonald, moved:
		(1) approval of the recommendations contained in the Decision Report of the Policy and Finance Committee of 19 February 2002; (2) approval of the Draft Revenue Budget contained in the Draft Budget Book for 2002/03, together with the allocations to Service Committees detailed in Appendix 1 to the Report by the Director of Finance; (3) that, for the purposes of Section 93 (1) (a) of the Local Government Finance Act 1992, the Council Tax for properties listed in the valuation Band D be set at an amount of £815 for the financial year 2002/03; and
		(4) that the assumed level of Council Tax at Band D for 2003/04 be £867.
		Mr Finlay Morrison, seconded by Mrs Katie M Mackenzie, moved an amendment in the following terms: That in light of the perilous state of the Western Isles economy and the continuing diminution of Council services, particularly in the rural areas, the Council Tax increase for the years 2000-2003 be restricted to 3.5% with the subsequent savings to be found within the totality of the Council's overall budgets. In looking at ways of achieving the savings required, particular emphasis should be placed on reducing the bureaucracy of the Council which has expanded in recent years at an unsustainable rate. The savings exercise should seek to provide further additional resources for the Council's front line services i.e. roads, repairs and maintenance, social work services etc many of which are now in a state of decline.
		Whilst we recognise that the Council requires additional resources from central government, we do not believe that resources currently available to the authority are providing best value to the people we are elected to represent. It is a measure of this remoteness from the people we serve that Councillors in here today should seek to impose an increase in Council Tax way and above the rest of Scotland. We will continue to argue that there needs to be a recognition within the Council that we cannot continue to fund an ever increasing bureaucracy at the expense of the front line services which people require.
		It was agreed that the vote be taken by roll call, in terms of Standing Order 53.
		On the matter being put to the vote, there voted as follows:-

		Motion Amendment
		Mr Alexander A Macdonald Mrs Katie M Mackenzie
		Mr Roderick J Murray Mr Angus M Graham
		Mr Malcolm J Macleod Mr Finlay Morrison
		Mr Iain Morrison Mr Donald M Mackay
		Mr Roderick Morrison Mr Donald Macdonald
		Mr Norman A Macdonald Mr Ronald J Mackinnon
		Mr Malcolm J Graham Mr David Blaney
		Mr Ian M Macleod
		Mr George Lonie
		Mr Angus Nicolson
		Mr Murdo Macleod
		Mr Norman L Macdonald
		Mr Alasdair G Macrae
		Mr Angus Campbell
		Mr Donald I Nicholson
		Mr Norman M Macleod
		Mrs Morag Munro
		Mr Archie K Campbell
		Mr Donald Maclean
		Mrs Mary Bremner
		Mr Donald Manford

		The Chairman declared that the Motion had been carried.
		The Comhairle agreed:
		(1) to approve the Draft Revenue Budget contained in the Draft Budget Book for 2002/03, together with the allocations to Service Committees detailed in Appendix 1 to the Report by the Director of Finance; (2) that for the purposes of Section 93 (1) (a) of the Local Government Finance Act 1992 the Council Tax for properties in Na Eileanan an Iar listed in the Valuation Band D be set at an amount of £815 for the financial year 2002/03; and (3) that the assumed level of Council Tax at Band D for 2003/04 be £867.
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