Agenda item

(a)       That the Committee notes the work undertaken on the business plan; and

(b)       That the Committee supports the progress made on the improved business model and financial position, the governance arrangements and the work around the ideal senior management structure.

The Chief Officer introduced an update on the completion of technical work on the Leisure and Libraries Alternative Delivery Model (ADM) to establish an Employee Led Mutual.

The Principal Leisure Services Officer gave a presentation on key work undertaken to test the robustness of the business plan, identify the best legal structure and maximise the financial position of the new organisation.  This work had been completed by officers and workforce representatives working alongside three technical professional advisors to achieve a sustainable five year business plan.  The final plan would be considered by the workforce and submitted to the Committee in December 2016 prior to seeking approval by Cabinet.

In response to questions from Councillors Clive Carver and Carolyn Thomas, officers explained the approach to the co-operative agreement model between the organisation and the Council, aimed at improving outcomes and re-investing profit back into the community whilst retaining facilities and protecting jobs.  Details were also given on contractual arrangements within the legal model as well as the advantages in setting up the new company as opposed to retaining the services in-house.  The Chief Officer gave an assurance that after three years, there would be protection for both employees and the service being delivered under the co-operative agreement model.

Councillor Robin Guest raised concerns on the proposed co-operative governance structure and in particular, how the ‘Workforce Voice’ would work alongside the owners of the company.  Officers explained that the shared diagram showed a level of engagement outside the governance structure and that the ‘Workforce Voice’ provided an opportunity to engage with workforce representatives in helping to shape the new company.  The Partnership Board gave the Council an opportunity to engage with the company’s Board and oversee grant aid arrangements.

Concerns were expressed by Councillor Carver about the potential for future legislative changes which could affect grants and tax benefits.  The Chief Officer said that significant work had been undertaken to strengthen the business plan and he explained the actions being taken to mitigate these risks including engagement with HM Revenue & Customs.  Councillor Chris Bithell pointed out the need to deal with the financial regulations in place at the present time and that other organisations were operating successfully on the same basis throughout the UK.

Following a question from Councillor Peter Curtis, it was explained that the Board and the management team would work to develop roles and responsibilities, to achieve a mix of skill sets and values.

Councillor Dave Mackie expressed his reservations about the structure, specifically the lines of governance.  He drew comparisons with the Double-Click initiative and felt it would be useful to look at progress on that growth plan.  He also referred to dual-use sites run by the Leisure department and pointed out that one school ran its own facilities and should be involved in discussions.  The Chief Officer provided explanation on the legal model involving a lease and grant aid arrangement, with the Council retaining responsibility for the building infrastructure through the capital programme.

RESOLVED:

(a)       That the Committee notes the work undertaken on the business plan; and

(b)       That the Committee supports the progress made on the improved business model and financial position, the governance arrangements and the work around the ideal senior management structure.