Agenda item

Purpose of the report:  Scrutiny of the Shareholder Board

To provide an update to Members on the role of the Shareholder Board and its decision-making in relation to companies in which the council has a shareholding.

Witnesses:

David Hodge, Lead of the Council

Peter Martin, Deputy Leader of the Council

Julie Fisher, Strategic Director of Business Services

Susan Smyth, Strategic Finance Manager

Key points raised during the discussion:

1.    The Leader introduced the report and informed the Committee that the Shareholder Board safeguards the Council’s interest as a shareholder and takes decisions, on behalf of the Council. in matters that require the approval of shareholders.

2.     The Committee suggested it would be helpful to receive the original business case and an overview of the purpose of each company, including details such as asset value and any equity capital provided. It was noted that the business cases had all been to Cabinet for approval.  

3.    Officers were questioned on staff pensions and in particular whether staff who worked for Surrey Choices would be eligible to join the Local Government Pension Scheme (LGPS).  The Strategic Finance Manager explained that after thorough consideration it had been agreed that a closed scheme was most appropriate.  This meant that staff who had transferred from the Council could remain in the scheme, however new staff recruited by the company would not be eligible to join the scheme.  This had not necessarily set a precedent for any company established by the council in the future, as the benefits of a closed/open scheme would be given full consideration on a case-by-case basis.  It was clarified that any staff who had transferred via TUPE arrangements would be eligible to remain within the LGPS. 

Mark Brett-Warburton joined the Committee at 1.45pm.

4.    There was a discussion around the re-deployment of staff if a Council owned Local Authority Trading Company lost its contract with the Council. The Committee was informed that where possible staff would be re-deployed.  The Committee were informed that staff would have legal protection to move with the contract in accordance with TUPE regulations.

5.    The Leader informed the Committee of his target to achieve a return equivalent to a 1% of Council Tax within 5 years.

6.    The Leader invited the Committee to carefully consider how it would scrutinise the Shareholder Board in the future.  It was agreed that the Committee would keep a clear overview of the overall objectives of the strategy and scrutinise how the programme contributed to the financial resilience of the County Council. 

Recommendations:

·         That the Committee receive a 6 monthly update combining a report of the Shareholder Board, incorporating a comparison of achievement against the original business case, with information about projects within the New Models of Delivery work stream.

Committee next steps:

·         A report will be brought back to Committee in six months