COMHAIRLE NAN EILEAN SIAR

POLICY AND FINANCE COMMITTEE

Minute of Meeting held in the Council Offices, Stornoway, on Monday 28 January 2002 at 4.00 pm

PRESENT	Mr Norman L Macdonald (Vice-Chairman)
	Mr Alexander A Macdonald	Mr Angus Campbell
	Mr George Lonie	Mrs Morag Munro
	Mr Angus Nicolson	Mrs Mary Bremner
APOLOGIES	Mr Roderick J Murray

		MINUTES
Policy and Finance	1	The Minute of Meeting of 11 December 2001 was approved.
		FINANCE
Non-Housing Capital Programme Third Quarter Monitoring PR110.05	2	The Director of Finance submitted a Report regarding the Non-Housing Capital Expenditure for the period 1 April 2001 - 31 December 2001. It was agreed to recommend: (1) approval of the total slippage of £926K as detailed in Appendix 1 of the report by the Director of Finance; (2) approval of the total acceleration of £325K as detailed in Appendix 1; (3) approval of the inclusion of Daliburgh Swimming Pool and An Lanntair into the Conditional Upon External Funding Programme; (4) approval of slippage of £106k within Education Capital be vired as £60k to the Excellence Fund and £46k for disabled access; (5) that the £26k underspend on disabled access be used to fund £12k overspend on the North Tolsta Hall and to fund an additional £14k expenditure on disabled access in 2002-03; (6) that the additional net resources of £80k from the Eriskay and Sound of Barra projects be used towards funding the overspend of £138k at Berneray Causeway; (7) that the work on the external fabric to Stornoway Town Hall should commence as a matter of urgency and should not be delayed in anticipation of any additional external funding; and (8) that the £200k slippage from the 2001-02 SCCP to the 2002-03 SCCP should not be changed;
Third Quarter Revenue Monitoring PR110.08.15	3	The Director of Finance submitted a Report giving information on the Quarterly Forecast Out-turn. The report detailed revenue expenditure incurred in the period from 1 April to 31 December 2001 for the Comhairle's services, including the Housing Revenue Account and set out the forecast expenditure to 31 March 2002. It was agreed to note the Report, and to recommend that the £29,000 forecast overspend in Corporate Services and the £34,931 costs for Foot and Mouth be met from contingency.
Budget Strategy 2002-03/2004-5 PR110.03.25	4	The Director of Finance submitted a Report advising Members of the final Aggregate External Finance announcement for 2002-03 and setting out the revised Budget Strategy for 2002-03 to 2004-05. It was agreed to recommend that: (1) the technical assumptions listed in Appendix 1 of the report by the Director of Finance are approved; (2) the Comhairle continues to assume Council Tax levels of:
		Year	2001 -02	2002 -03	2003 -04
		Council Tax (Band D)	£765	£815	£867
				6.5%	6.4%
		(3) contribution of £561k is made to restore unallocated reserves in 2002-03 with a further £700k planned for 2003-04; (4) cash planning limits at Appendix 2 of the Report by the Director of Finance are approved, and Heads of Service are required to draft budgets that do not exceed these figures; (5) the £304k additional resources provided for by the Scottish Executive is spent in line with their priorities; (6) the provision set aside for contingency be utilised only in the following circumstances: (a) unforeseen incidents resulting in additional expenditure (e.g. exceptionally severe weather), (b) incidents which can be reasonably foreseen but whose effects cannot be reasonably quantified ( e.g. a major planning enquiry), (c) matters which cannot be both reasonably foreseen and estimated but whose final out-turn could make a material difference to the overall finances of the Comhairle (e.g. pay awards), and (d) opportunities to attract additional funding; (7) any underspend on the Winter Maintenance Budget in 2001-02 be saved in a reserve to offset future year overspends; (8) Management Team identify and provide partner organisations with statements setting out the likely financial support they will receive over 2002-03 and 2003-04; (9) the existing levels of provisions given in Appendix 1, paragraph 14, are approved; and (10) the movements in the HISTP fund given in Appendix 7 are approved.
Draft Revenue Estimates 2002/2003 PR110.03.25	5	The Director of Finance submitted the Comhairle's Draft Revenue Estimates for the financial year 2002/2003. It was agreed to approve the Draft Revenue Estimates for 2002/2003 for the Committee's interest and for consideration by the Comhairle.
Service Strategy Reports PR110.08	6	The Director of Finance submitted a Report containing the Service Strategy Development Reports for the budget year 2002/03. The Reports set out areas of committed and desirable growth for each service, together with savings proposed to fund the growth and to meet the agreed Cash Planning Limits. It was agreed: (1) to ask the Service Committees to consider and comment of the Strategy Reports and comment on the report for their own interests; (2) that the Chairman of each committee be invited to a meeting of the Budget Working Group called to consider the reports in detail; and (3) to send the Service Strategy reports for Policy and Finance to the Budget Working Party for detailed consideration.
Housing Revenue Account: Revenue Estimates 2002/2003 PR110.08	7	The Director of Housing submitted a report detailing the proposed Housing Revenue Account estimates for 2002/03, and recommending a small rent increase to allow the budget to be balanced. It was agreed to recommend that: (1) the Housing Revenue Account Estimates for the financial year 2002/03 included as Appendix 1 to the Report by the Director of Housing be approved; (2) a rent increase of £1.95 per week be applied giving an average weekly rent of £42.95 for 2002/03; and (3) £100,000 Capital funded from Current Revenue be drawn from Housing Revenue Account Reserves to be applied to spend to save projects to be undertaken in 2002/03.
New Code of Practice for Treasury Management PR120.06	8	The Director of Finance submitted a report to inform members of CIPFAs new Code of Best Practice and Guide for Treasury Management in the Public Services. Details of the Code were appended to the report. The Committee agreed to recommend to Comhairle that the: (1) Comhairle adopts the key recommendations of CIPFAs new Code as detailed in paragraph 6.1 of the Report by the Director of Finance, by 1 April 2002; (2) Comhairle will create and maintain a Treasury Management policy statement; (3) Comhairle will receive an annual strategy report and plan, and an annual report, at the close of the financial year in the form prescribed by its Treasury Management policies; and (4) Comhairle delegates responsibility for the implementation and monitoring of its Treasury Management policies to the Policy and Finance Committee, and for the execution and administration of Treasury Management decisions to the Director of Finance.
Local Taxation Billing Collection and Recovery PR100.07	9	The Director of Finance submitted a Report to advise Members of the current state of collection and recovery of Council Tax and Non-Domestic Rates. It was agreed to note the Report.
Recommendations for Write offs on Certain Sundry Debts. PR100.07.01	10	The Director of Finance submitted a Report itemising certain debts in excess of £1,000 recommended to be written off in the current financial year 2001/02. It was agreed that the Director of Finance be authorised to write off the debts itemised in Appendix A of his Report.
Potential BCCI Dividend PR120.04	11	The Director of Finance submitted a report seeking homologation for his support for a proposed deal between the liquidators of BCCI and former employees of the bank. Larger creditors of the bank were asked to forego 1% dividend to release capital to settle claims from the former employees. This action would allow a further dividend of 7% to be made within 1 year of settlement with the former employees. It was agreed to homologate the decision taken by the Director of Finance.
		CONSTITUTION
Conditions of Service PR02.01	12	The Chief Executive submitted a report regarding proposed procedures to determine a number of practical issues related to conditions of service of employees which it would not be appropriate for officers to deal with under delegation, or for the full committee to consider. It was proposed to establish a Conditions of Service Sub-Committee to consider and determine the application of conditions of service to individual employees. The proposed constitution and remit of the sub-committee were appended to the report. It was anticipated that the sub-committee would meet as required. It was agreed to: (1) establish a Conditions of Service Sub-Committee with the Constitution and Remit appended to the Report by the Chief Executive; and (2) to appoint the following members of the Comhairle to the Sub-Committee: Mr Alex A MacDonald, Mr Roderick J Murray, Mr Norman L Macdonald, Mr Angus Campbell, and Mrs Morag Munro
		SERVICE ISSUES
New Housing Partnerships H01.17	13	The Director of Housing submitted a Report concerning the New Housing Partnership Feasibility Study carried out on behalf of the Comhairle by DTZ Pieda, recommending that the Comhairle proceed to the next phase of the New Housing Partnership Initiative by developing a proposal to transfer the housing stock to a not for profit Housing Association. It was agreed to recommended that: (1) (i) the Comhairle progress to the next phase of the New Housing Partnerships Initiative by establishing a new, single Housing Association in the Western Isles; (ii) the new Association develop a proposal to acquire all of the Comhairle's houses, land and other assets held on the Housing Revenue Account and Scottish Homes houses; (iii) the proposal be brought back to the Comhairle for approval; and (iv) should the proposal meet with the Comhairle's approval that it be the subject of a ballot of the Comhairle's tenants;
		(2) the new Housing Association be statutorily registered with Communities Scotland and registered as a Friendly Society under the Industrial and Provident Societies Act 1965. The new Association to be non profit distributing; (3) the new Housing Association be given the interim name of "The Western Isles Housing Partnership";
		(4) it be delegated to the Chief Executive, in consultation with the Director of Corporate Services and the Director of Housing to second Comhairle staff, funded by the Scottish Executive, with New Housing Partnership monies to:- (i) develop a detailed proposal/business plan for submission for approval to the Comhairle containing:- the governance arrangements for the new Housing Association the proposed staffing structure a copy of the proposed tenancy agreement the new Association's policies e.g. repairs and maintenance, arrears etc a programme of maintenance and improvement of the stock over the next 30 years a proposal which clearly demonstrates affordable rent levels and rent guarantees a new build programme valuation and a tentative transfer price evidence of fundability; and proposals which can demonstrate local participation and control with specific targets for achieving this.
		(ii) structure the Business Plan to reflect the housing functions recommended for transfer to the new Housing Association as outlined in Appendix 2 to the Report by the Director of Housing; (iii) carry out pre-statutory consultation with tenants; and (iv) register the new Housing Association with Communities Scotland. (5) it be delegated to the Director of Corporate Services to appoint Consultants as required, to advise on the corporate interests of the Comhairle, funded from New Housing Partnership monies; (6) it be delegated to the Director of Housing to appoint Consultants as required by the Shadow Board of the new Housing Association, funded from New Housing Partnership monies; (7) it be delegated to the Chief Executive in consultation with the Director of Housing and Director of Finance to consider and report back to the Comhairle how the remnant statutory housing related functions will be delivered (e.g. homelessness, Housing Benefit etc.) should the transfer of houses proceed and whether any partnering arrangements with the new Housing Association can assist with the delivery of the Comhairle's Key Tasks; (8) detailed investigation be undertaken by the seconded staff referred to at recommendation 3.1 (d) to ascertain whether the recommendations of DTZ Pieda Consulting in relation to a group model for the new Housing Association and Tighean Innse Gall would benefit both organisations in terms of long term planning, strategic development and stability; (9) the Director of Housing bring a further report outlining:- (i) the decision making structures to be adopted to ensure a separation of interests at Member and officer level and that there is transparency in the decision making process; and (ii) the arrangements to be put in place to ensure that the Housing Service is maintained during the next phase of the New Housing Partnership initiative; (10) consultation with the appropriate Trade Unions on the New Housing Partnership process take place with regard to Personnel issues arising from the Report; and
		(11) it be delegated to the Chief Executive, in consultation with the Director of Finance, to carry out such actions as determined by him in the furtherance of the implementation of the recommendation 3.1 (1) - (10) above and any other matters not specifically identified within the recommendations, on the basis that any such action taken by him in relation to these recommendations is reported to the Comhairle in accordance with the Scheme of Administration.
Food and Health Policy PR11.41.02	14	The Chief Executive submitted a report concerning the development of a Food and Health Policy. Details of the proposed policy were appended to the report together with a suggested Food and Health Policy for Residential Homes for older people. It was agreed: (1) to approve the Food and Health Policy detailed in the Report by the Chief Executive; (2) to approve the Food and Health Policy for Residential Homes for Older People; and (3) that an action plan identifying how the Comhairle can contribute towards the achievement of the targets listed in the policy is developed and presented to Policy and Finance Committee for approval later in 2002.
Scottish Parliamentary Report into The Gaelic Broadcasting Committee PR13.05.09	15	The Chief Executive submitted a Report regarding the Scottish Parliamentary report into the Gaelic Broadcasting Committee. The background to the inquiry by the Education, Culture and Sport Committee was outlined, together with a summary of the evidence submitted by the Comhairle to the committee. The main recommendations of the Parliamentary Committee were set out, together with comments on the conclusions and recommendations. It was noted that the committee's recommendations did not coincide with the aspirations of the Comhairle for Gaelic Broadcasting in the Western Isles. It was agreed that relevant Officers be authorised to respond to the Report restating the Comhairles view on Gaelic Broadcasting in the Western Isles.
University of Edinburgh Report on the MacPherson Taskforce on Gaelic PR13.05.09	16	The Chief Executive submitted a report regarding the contents of the Edinburgh University Report on the MacPherson Taskforce on Gaelic which had set out a future strategic development plan for Gaelic. It was indicated that the MacPherson Report had been widely welcomed by the Gaelic community but it had been extensively criticised in a subsequent report from the Department of Celtic and Scottish Studies of Edinburgh University. The background to the matter was set out in the report, together with summaries of the conclusions and recommendations in both the MacPherson Report and the Edinburgh University Report. It was agreed that the Comhairle should reaffirm its support for the findings of the MacPherson Taskforce and that an early meeting be sought with Lord Watson, Minister for Tourism, Culture and Sport and Gaelic to establish when the MacPherson Report will be implemented. Mr Calum Macdonald MP would also be invited to attend the meeting.
Hebridean Celtic Festival AL11.01	17	The Director for Sustainable Communities submitted a report concerning an application for funding for the Hebridean Celtic Festival over the 3 years 2002 - 2004. It was agreed to recommend that: (1) in addition to the Leisure Services grant of £15k already approved for the 2002 Hebridean Celtic Festival, a grant of up to £10k be offered towards the co-ordination and marketing costs for 2002, allocated from the Marketing & Promotion budget in the current and 2002/03 financial years as appropriate;
		(2) Comhairle funding of £25k per year for the 2003 and 2004 Hebridean Celtic Festivals be approved in principle and, subject to budgetary provision being made in the 2002/03 and 2003/04 financial years, the detailed terms and conditions of grant to be delegated to the Director of Sustainable Communities; and (3) the Director for Sustainable Communities assists the Hebridean Celtic Festival organisers to pursue opportunities for major commercial sponsorship
Community Action Plan PR11.42	18	The Chief Executive submitted a Report containing a Community Safety Action Plan for 2002-03 containing projects in line with the Community Safety Strategy. It was stated that the Western Isles had been awarded £23,521 by the Scottish Executive, which will be released on submission of the Action Plan. The Committee approved the submission of the Community Safety Action Plan to the Scottish Executive.
Western Isles Slaughterhouses	19	The Democratic Services Manager sought and obtained the Chairmans permission to withdraw this item.
		PERSONNEL
Application for Release of Post MO1	20	The Chief Executive submitted a Report listing the posts which he had approved for release. It was agreed to note the Report.
Home Care Service: Fixed Hour Contracts SW04.04.02	21	The Director of Social Work submitted a Report seeking approval for the implementation of the first phase of the introduction of fixed hour contracts for home care workers. Details of the proposals were set out in the report. It was agreed to recommend approval for: (1) the conditions of service that will apply to those home care workers who wish to be considered, and are selected, for fixed hour contracts as detailed in the report by the Director of Social Work; (2) authority be delegated to the Director of Social work to establish up to 80 posts of home care worker (fixed hour) on the basis of these staff being recruited from the existing workforce and being employed on the terms and conditions set out in the report.
Community Education Worker - Established Temporary Post	22	The Democratic Services Manager sought and obtained the Chairman's permission to withdraw this item.
		It was agreed that the public, including the press, be excluded from the meeting during consideration of Item 23 below on the grounds that exempt information as defined in paragraph 1 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely, information relating to a particular employee, former employee or applicant to become an employee of, or a particular office-holder or former office-holder or applicant to become an office-holder under the Comhairle would be disclosed.
I.T. Support Technician MO2.02.02	23	The Director of Corporate Services submitted a Report regarding a proposed increase in hours for the post of IT Support Technician. The background to the matter was set out in the Report, together with an outline of the proposal. It was agreed to approve an additional 10 hours per week for the IT Support Technicians post.
		It was agreed that the public, including the press, be excluded from the meeting during consideration of Item 24 below on the grounds that exempt information as defined in paragraph 8 of Schedule 7A of the Local Government (Scotland) Act 1973 would be disclosed, namely, information relating to 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 or services.
Building Maintenance Term Contract 2002 -06 Lewis & Harris and Uists & Barra PR31.07	24*	The Director of Technical Services submitted a Report seeking approval to award the Building Maintenance Term Contract 2002 -2006 the contract for Lewis and Harris and to inform Members of progress with regard to tenders received for the Uists and Barra contract which are still undergoing a process of evaluation. It was agreed that : (1) the building Maintenance Term Contract for Lewis and Harris be awarded to Comhairle nan Eilean Siar Technical Services DSO for a period of 4 years from 1 April 2002; (2) in line with the requirements of Best Value and in consultation with the contractor, the possibility of securing further savings and further developing Best Value, Innovation and Customer Care aspects of the service during the period of the contract be examined; and (3) a Report is placed before the next meeting of the Policy and Finance Committee (19 February 2002) concerning the tenders received for the Uist and Barra Contract.

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