Issue - meetings

That the Treasury Management 2018/19 quarterly update be noted.

The Interim Finance Manager (Technical Accountancy) presented the quarterly update on matters relating to the Council’s Treasury Management Policy, Strategy and Practices 2018/19 to the end of February 2019.

The update reflected the current strategy on borrowing which was under continued review as interest rates were predicted to rise later in the year.  Potential changes to the credit ratings of UK banks were being monitored in accordance with guidance from the Treasury Management advisors.  Detailed information was also provided on preparations for the Brexit process involving an action plan to manage three key risk areas in the event of ‘no deal’.

Sally Ellis asked about the impact of further delays to Brexit.  The Interim Manager detailed the main risk around security and liquidity of investments, and that the Council was maintaining its current position until there was more clarity on the completion of Brexit.  Having received professional advice, the Clwyd Pension Fund Committee recognised the potential risks to the market which formed part of their broader risk management activities and was satisfied that the regulatory position would be maintained until the conclusion of post-Brexit negotiations.

The Chief Executive spoke about the difference between market performance as opposed to security of investments on which no national advice had been issued to date.  Both risks would remain irrespective of further delays.

In response to questions from Councillor Johnson, the Chief Executive said that in the absence of national advice to public sector organisations, the Council could only plan within its remit to manage risks as best it could.  This involved reviewing business continuity plans for services that could potentially be impacted by Brexit, separating long and short-term risks, noting that no significant change was expected to financial markets.

The Chief Officer advised that these reviews had identified a small number of specific and common risks, mainly relating to suppliers.

In referring to a recent Welsh Government (WG) seminar, Councillor Johnson expressed his gratitude to all those working to prepare for Brexit.

In response to questions from Councillor Dunbobbin, the Chief Executive said that the focus of Brexit was on the impact on communities, businesses and workforce, and that the economic impact would need to be resolved at Government level.  Whilst the WG was open to discussions, there were too many unknown factors at this stage of the process.

RESOLVED:

That the Treasury Management 2018/19 quarterly update be noted.