18 November 2002

POLICY AND FINANCE COMMITTEE

Minute of Meeting held in the Council Offices, Stornoway, on Monday 18 November 2002 at 4.00 pm.

PRESENT

Mr Roderick J Murray (Chairman)

Mr Norman L Macdonald

Mr Angus Campbell

Mr Alexander A Macdonald

Mrs Morag Munro

Mr Norman A Macdonald

Mr George Lonie

Mr Donald Maclean

Mrs Mary Bremner

Mr Alasdair G Macrae

Mr Donald Manford

Tribute

The Chairman referred to the recent 48 hour Firemens' strike, and thanked all those involved for their efforts in safeguarding the community during this difficult time.

MINUTES

Policy and Finance

1

The Minute of Meeting of 30 October 2002 was approved.

Conditions of Services Sub Committee

2

The Minute of Meeting of the Conditions of Service Sub-Committee of 29 October 2002 was noted.

Commercial Operations Board

3(a)

3(b)

The Minute of Meeting of the Commercial Operations Board of 28 October 2002 was noted.

The Minute of Meeting of the Commercial Operations Board of 31 October 2002 was noted.

POLICY PLANNING

Sex Offenders Protocol

PR11.33

4

The Chief Executive submitted a Report concerning the adoption of the multi-agency protocol relating to Sex Offenders. A presentation was made by Sergeant David Bushell of Northern Constabulary. Chief Inspector Andrew Maclean, Inspector Gordon Macleod and Superintendent Charles Hepburn were also present at the meeting and an opportunity was afforded to all members of the Committee to ask questions of the Police Officers.

The Chairman thanked the Police Officers for attending the Meeting.

It was agreed to note the Report

The Development of a Race Equality Strategy

PR11.35

5

The Chief Executive submitted a Report seeking Member's approval for the process to be used to develop a Race Equality Scheme.

It was agreed that the Chief Executive be authorised to make the necessary submission, not later than 30 November 2002, to comply with the Comhairle's statutory obligations in terms of the Race Relations Act 1976 and that the terms of that submission be reported back to the next meeting of the Committee for homologation.

FINANCE

Non-Housing Capital Monitoring 1 April 2002 - 30 September 2002

PR110.03

6

The Acting Director of Finance submitted a Report informing Members of progress with the Non-Housing Capital Account as at 30 September 2002. It was stated that the total forecast gross consent expenditure is £15,771,000, some £48,000 above the total available funding.

It was agreed to approve the Forecast Out-turn detailed in the Report as the Revised Approved Programme specifically:

1. The slippage of the contribution of £75,000 to the Sandwickhill GP/Dining Room to 2003/04.

2. The slippage of £400,000 of expenditure and £614,000 of income due from Harris Sports & Leisure Committee for Sir E Scott School to 2003/04.

3. The acceleration of £30,000 of expenditure on School Traffic Management from 2003/04.

4. The slippage of £20,000 of expenditure on school boilers and £40,000 of expenditure on Council Office boilers to 2003/04.

5. The overspend of £14,000 on Trianaid to be met from the budget for energy improvements to residential homes within the Social Work Capital Programme.

6. The inclusion of £1,500,000 consent for the South Uist Care Development in the 2003/04 Capital Programme.

7. The overspend on the Airport Development, the Eriskay Causeway and the Ard Na Ruibh Waiting Room totalling £17,000 be met from within the Transportation Capital Programme.

8. The slippage of £39,000 on the Macaulay Road Roundabout, £35,000 on the access road to the Scalpay Fish Factory and £200,000 on the Sound of Barra infrastructure to 2003/04.

9. That, in respect of the Sustainable Communities Capital Programme, firm plans are in place by the end of January to ensure expenditure by 31 March 2003. Any funds not committed by 31 January 2003 be returned to the General Programme.

10. The acceleration of £53,000 for the work at the Marybank Depot from 2003/04.

11. The inclusion of £137,380 in the Capital Programme for MGF2 be met from slippage in the current year.

12. The acceleration of £600,000 of Housing Improvement Grants from 2003/04.

13. The acceleration of £193,000 of expenditure for the Stornoway Sports Centre from the Conditional Programme.

14. The slippage of £71,000 of expenditure on the external fabric repairs of the Town Hall, £27,000 of expenditure on essential maintenance on Lews Castle and £55,000 on the upgrading of children's play areas to 2003/04.

15. The inclusion in the Capital Programme of £50,000 for match funding for village halls in 2002/03 and 2003/04.

16. The slippage of £350,000 of expenditure on the Harris Sports Centre, part of the development at Sir E Scott School, to 2003/04.

17. The addition of the FEOGA grant of £40,000 received in respect of the Abattoir to the Abattoir budget.

18. The slippage of £28,000 of expenditure on the Eye Church to 2003/04.

19. The slippage of £28,000 of expenditure on contaminated land to 2003/04.

20. The slippage of £400,000 for Business Development Parks, £220,000 for An Lanntair, £144,000 for the Carloway Dementia Unit and £560,000 for the Stornoway Sports Centre all in the Conditional Programme for 2002/03 to 2003/04.

Second Quarter Revenue Forecast Outturn

2002/2003

PR110.08

7

The Acting Director of Finance submitted a Report informing Members of the Comhairle's forecast outturn for 2002/03 following the second quarter monitoring.

It was agreed:

(a) to note the report;

(b) to fund up to £86,000 of additional water costs, up to £120,000 of gratuity payment costs; and £14,000 shortfall in RSG from the loan charge savings;

(c) to fund from Contingency the £21,000 additional staffing costs arising from the continued absence of the Director of Finance;

(d) that the Policy and Finance Committee would establish a working group that will meet from December 2002 through to February 2003 to review both the current year's finances and the draft budget for 2003/04. The following five Members were appointed to the working group:

Mr Roderick J Murray

Mr Norman L Macdonald

Mr Angus Campbell

Mr Norman A Macdonald

Mr Angus Nicolson

(e) to note the Social Work forecast of a £140,000 overspend will absorb the remainder of the loan charge savings leaving an additional surplus of £10,000 over budget.

Housing Revenue Account

Budget Strategy 2003/04

PR100.04

8

The Director of Housing submitted a Report seeking Members agreement for a budget strategy for the Housing Revenue Account 2003.

It was agreed for the Committee's interest that:

(1) the general strategy for the HRA budget for 2003/04 be based on the general principle of no growth and a standstill service; and

(2) the budget setting timetable set out in the appendix to the Report be approved.

Housing Revenue Account Financial Plan 2003/2004 - 2005/2006

PR110.05

9

The Director of Housing submitted a Report presenting the Housing Financial Plan for the years 2003/2004 to 2005/2006.

It was agreed for the Committees interest that the Housing Revenue Account Financial Plan 2003/2004 - 2005/2006 be approved on the basis that the annual capital programme for 2003/2004 will be reported for approval once the Scottish Executive have issued formal notice of consent to borrow for that year.

Recommendations for the Write-Offs of Certain Sundry Debts & Non-Domestic Rates Debts.

PR100.07.01

10

The Acting Director of Finance submitted a Report recommending that certain debts in excess of £1,000 be written off in the current financial year 2002/2003.

It was agreed that the debts itemised in Appendix A of the Report be written off.

Charging for Payroll Deductions

PR110.09

11

The Acting Director of Finance submitted a Report seeking Members' approval to levy charges on trades unions for making payroll deductions on their behalf.

It was agreed to defer consideration of the matter pending receipt of responses from the Trades Unions.

LAND AND BUILDINGS

Programme and Progress

PR110.03

12

The Director of Technical Services submitted a Report informing Members of the progress made towards replacing the Boilers in the Council Offices in Stornoway.

It was agreed to note the Report.

SERVICE MATTERS

Western Isles Gaelic Storytelling Project

PR90.28

13

The Chief Executive submitted a Report seeking Members' approval to provide financial assistance, from the Gaelic Development Budget, for the Western Isles Gaelic Storytelling Project.

It was agreed that:

1. the sum of £16,000 be provided from the Gaelic Development Budget in the period 2003/2005 to assist with the creation of the post of Gaelic Storytelling Co-ordinator responsible for the delivery of the two year strategy;

2. funding be provided on the basis that all the funding requested from other agencies is guaranteed;

3. the Comhairle be represented on the Sgeulachdan/Gaelic Storytelling Project Steering Group; and

4. the Gaelic Storytelling Co-ordinator provide regular progress reports and a detailed report at the conclusion of the project.

Volunteer Centre Western Isles: Request for an increase in Revenue Funding

PR90.28

14

The Chief Executive submitted a Report relating to a request for an increase in revenue funding from the Volunteer Centre Western Isles. It was stated that the Volunteer Centre has not been successful in securing £22,500 required to draw down £54,000 funding from the Scottish Executive in 2003/2004.

It was agreed to defer consideration of this item pending receipt of further information in relation to the projected income of the organisation.

It was agreed that the public, including the press, be excluded from the meeting during consideration of Item 15 below on the grounds that exempt information as defined in paragraphs 1, 8 and 11 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed; namely:

1. information relating to a particular employee, former employee or applicant to become an employee of, or a particular office holder of former office holder, or applicant to become an office holder under the Comhairle;

2. the amount of any expenditure proposed to be incurred by the Comhairle under any particular contract for the acquisition of property or the supply of goods; and

3. information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the Comhairle or a Minister of the Crown and employees of, or office holders under, the Comhairle.

Future of the COU: Bus Operations

CB010

15

The Director of Corporate Services and the Acting Director of Finance submitted a Report relating to the Comhairle's bus operation. It was stated that it was necessary to determine a strategy for the future management of the bus operation:

It was agreed to:

(1) authorise the financial losses for the financial year 2002/03;

(2) authorise the Director of Corporate Services to undertake formal consultation with the bus operation staff with a view to achieving efficiency improvements; and

(3) reconsider the position towards the end of the current contract and determine whether to re-tender for routes PB1 and PB2 at that time.

___

PRESENT	Mr Roderick J Murray (Chairman) Mr Norman L Macdonald	Mr Angus Campbell
	Mr Alexander A Macdonald	Mrs Morag Munro
	Mr Norman A Macdonald Mr George Lonie	Mr Donald Maclean Mrs Mary Bremner
	Mr Alasdair G Macrae	Mr Donald Manford

Tribute		The Chairman referred to the recent 48 hour Firemens' strike, and thanked all those involved for their efforts in safeguarding the community during this difficult time.
		MINUTES
Policy and Finance	1	The Minute of Meeting of 30 October 2002 was approved.
Conditions of Services Sub Committee	2	The Minute of Meeting of the Conditions of Service Sub-Committee of 29 October 2002 was noted.
Commercial Operations Board	3(a) 3(b)	The Minute of Meeting of the Commercial Operations Board of 28 October 2002 was noted. The Minute of Meeting of the Commercial Operations Board of 31 October 2002 was noted.
		POLICY PLANNING
Sex Offenders Protocol PR11.33	4	The Chief Executive submitted a Report concerning the adoption of the multi-agency protocol relating to Sex Offenders. A presentation was made by Sergeant David Bushell of Northern Constabulary. Chief Inspector Andrew Maclean, Inspector Gordon Macleod and Superintendent Charles Hepburn were also present at the meeting and an opportunity was afforded to all members of the Committee to ask questions of the Police Officers. The Chairman thanked the Police Officers for attending the Meeting. It was agreed to note the Report
The Development of a Race Equality Strategy PR11.35	5	The Chief Executive submitted a Report seeking Member's approval for the process to be used to develop a Race Equality Scheme. It was agreed that the Chief Executive be authorised to make the necessary submission, not later than 30 November 2002, to comply with the Comhairle's statutory obligations in terms of the Race Relations Act 1976 and that the terms of that submission be reported back to the next meeting of the Committee for homologation.

		FINANCE
Non-Housing Capital Monitoring 1 April 2002 - 30 September 2002 PR110.03	6	The Acting Director of Finance submitted a Report informing Members of progress with the Non-Housing Capital Account as at 30 September 2002. It was stated that the total forecast gross consent expenditure is £15,771,000, some £48,000 above the total available funding. It was agreed to approve the Forecast Out-turn detailed in the Report as the Revised Approved Programme specifically: 1. The slippage of the contribution of £75,000 to the Sandwickhill GP/Dining Room to 2003/04. 2. The slippage of £400,000 of expenditure and £614,000 of income due from Harris Sports & Leisure Committee for Sir E Scott School to 2003/04. 3. The acceleration of £30,000 of expenditure on School Traffic Management from 2003/04.
		4. The slippage of £20,000 of expenditure on school boilers and £40,000 of expenditure on Council Office boilers to 2003/04. 5. The overspend of £14,000 on Trianaid to be met from the budget for energy improvements to residential homes within the Social Work Capital Programme. 6. The inclusion of £1,500,000 consent for the South Uist Care Development in the 2003/04 Capital Programme. 7. The overspend on the Airport Development, the Eriskay Causeway and the Ard Na Ruibh Waiting Room totalling £17,000 be met from within the Transportation Capital Programme. 8. The slippage of £39,000 on the Macaulay Road Roundabout, £35,000 on the access road to the Scalpay Fish Factory and £200,000 on the Sound of Barra infrastructure to 2003/04.
		9. That, in respect of the Sustainable Communities Capital Programme, firm plans are in place by the end of January to ensure expenditure by 31 March 2003. Any funds not committed by 31 January 2003 be returned to the General Programme. 10. The acceleration of £53,000 for the work at the Marybank Depot from 2003/04. 11. The inclusion of £137,380 in the Capital Programme for MGF2 be met from slippage in the current year. 12. The acceleration of £600,000 of Housing Improvement Grants from 2003/04. 13. The acceleration of £193,000 of expenditure for the Stornoway Sports Centre from the Conditional Programme. 14. The slippage of £71,000 of expenditure on the external fabric repairs of the Town Hall, £27,000 of expenditure on essential maintenance on Lews Castle and £55,000 on the upgrading of children's play areas to 2003/04. 15. The inclusion in the Capital Programme of £50,000 for match funding for village halls in 2002/03 and 2003/04. 16. The slippage of £350,000 of expenditure on the Harris Sports Centre, part of the development at Sir E Scott School, to 2003/04. 17. The addition of the FEOGA grant of £40,000 received in respect of the Abattoir to the Abattoir budget. 18. The slippage of £28,000 of expenditure on the Eye Church to 2003/04. 19. The slippage of £28,000 of expenditure on contaminated land to 2003/04. 20. The slippage of £400,000 for Business Development Parks, £220,000 for An Lanntair, £144,000 for the Carloway Dementia Unit and £560,000 for the Stornoway Sports Centre all in the Conditional Programme for 2002/03 to 2003/04.
Second Quarter Revenue Forecast Outturn 2002/2003 PR110.08	7	The Acting Director of Finance submitted a Report informing Members of the Comhairle's forecast outturn for 2002/03 following the second quarter monitoring. It was agreed: (a) to note the report; (b) to fund up to £86,000 of additional water costs, up to £120,000 of gratuity payment costs; and £14,000 shortfall in RSG from the loan charge savings; (c) to fund from Contingency the £21,000 additional staffing costs arising from the continued absence of the Director of Finance; (d) that the Policy and Finance Committee would establish a working group that will meet from December 2002 through to February 2003 to review both the current year's finances and the draft budget for 2003/04. The following five Members were appointed to the working group: Mr Roderick J Murray Mr Norman L Macdonald Mr Angus Campbell Mr Norman A Macdonald Mr Angus Nicolson (e) to note the Social Work forecast of a £140,000 overspend will absorb the remainder of the loan charge savings leaving an additional surplus of £10,000 over budget.
Housing Revenue Account Budget Strategy 2003/04 PR100.04	8	The Director of Housing submitted a Report seeking Members agreement for a budget strategy for the Housing Revenue Account 2003. It was agreed for the Committee's interest that: (1) the general strategy for the HRA budget for 2003/04 be based on the general principle of no growth and a standstill service; and (2) the budget setting timetable set out in the appendix to the Report be approved.
Housing Revenue Account Financial Plan 2003/2004 - 2005/2006 PR110.05	9	The Director of Housing submitted a Report presenting the Housing Financial Plan for the years 2003/2004 to 2005/2006. It was agreed for the Committees interest that the Housing Revenue Account Financial Plan 2003/2004 - 2005/2006 be approved on the basis that the annual capital programme for 2003/2004 will be reported for approval once the Scottish Executive have issued formal notice of consent to borrow for that year.

Recommendations for the Write-Offs of Certain Sundry Debts & Non-Domestic Rates Debts. PR100.07.01	10	The Acting Director of Finance submitted a Report recommending that certain debts in excess of £1,000 be written off in the current financial year 2002/2003. It was agreed that the debts itemised in Appendix A of the Report be written off.
Charging for Payroll Deductions PR110.09	11	The Acting Director of Finance submitted a Report seeking Members' approval to levy charges on trades unions for making payroll deductions on their behalf. It was agreed to defer consideration of the matter pending receipt of responses from the Trades Unions.
		LAND AND BUILDINGS
Programme and Progress PR110.03	12	The Director of Technical Services submitted a Report informing Members of the progress made towards replacing the Boilers in the Council Offices in Stornoway. It was agreed to note the Report.
		SERVICE MATTERS
Western Isles Gaelic Storytelling Project PR90.28	13	The Chief Executive submitted a Report seeking Members' approval to provide financial assistance, from the Gaelic Development Budget, for the Western Isles Gaelic Storytelling Project. It was agreed that: 1. the sum of £16,000 be provided from the Gaelic Development Budget in the period 2003/2005 to assist with the creation of the post of Gaelic Storytelling Co-ordinator responsible for the delivery of the two year strategy; 2. funding be provided on the basis that all the funding requested from other agencies is guaranteed; 3. the Comhairle be represented on the Sgeulachdan/Gaelic Storytelling Project Steering Group; and 4. the Gaelic Storytelling Co-ordinator provide regular progress reports and a detailed report at the conclusion of the project.
Volunteer Centre Western Isles: Request for an increase in Revenue Funding PR90.28	14	The Chief Executive submitted a Report relating to a request for an increase in revenue funding from the Volunteer Centre Western Isles. It was stated that the Volunteer Centre has not been successful in securing £22,500 required to draw down £54,000 funding from the Scottish Executive in 2003/2004. It was agreed to defer consideration of this item pending receipt of further information in relation to the projected income of the organisation.

		It was agreed that the public, including the press, be excluded from the meeting during consideration of Item 15 below on the grounds that exempt information as defined in paragraphs 1, 8 and 11 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed; namely: 1. information relating to a particular employee, former employee or applicant to become an employee of, or a particular office holder of former office holder, or applicant to become an office holder under the Comhairle; 2. the amount of any expenditure proposed to be incurred by the Comhairle under any particular contract for the acquisition of property or the supply of goods; and 3. information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the Comhairle or a Minister of the Crown and employees of, or office holders under, the Comhairle.
Future of the COU: Bus Operations CB010	15	The Director of Corporate Services and the Acting Director of Finance submitted a Report relating to the Comhairle's bus operation. It was stated that it was necessary to determine a strategy for the future management of the bus operation: It was agreed to: (1) authorise the financial losses for the financial year 2002/03; (2) authorise the Director of Corporate Services to undertake formal consultation with the bus operation staff with a view to achieving efficiency improvements; and (3) reconsider the position towards the end of the current contract and determine whether to re-tender for routes PB1 and PB2 at that time.