MINUTES
OF THE FINANCE AND GENERAL PURPOSES
COMMITTEE MEETING
Brigade Headquarters, Lime Grove Avenue,
Carmarthen
Monday 14th April 2003
ATTENDANCE
Present at Meeting: |
| Chairman: |
Cllr: J S Allen-Mirehouse |
| Vice Chairman: |
Cllr: P B Davies |
| Members: |
Cllrs: W G Bennett, C J Crowley
J J J Davies, Mrs F M Jones,
H T Lewis, C Owen, D C Prothero,
D Phillips, J D A Thompson |
| Apologies: |
Cllrs: T W Davies, E T Morgan
G Seabourne |
1.
DECLARATION OF PECUNIARY AND OR NON PECUNIARY INTEREST
None were declared
2.
TO CONSIDER THE QUARTERLY REPORT OF THE TREASURER
A
Borrowing Limits for 2003/2004
In accordance with the provisions of Section 39 of the Local Government and Housing Act 1989 the determinations for the Financial Year 2003/2004 were approved:
RESOLUTION
It was RESOLVED that:
1i. Overall borrowing limit to cover borrowing for Capital expenditure, temporary fluctuations in cash flows etc. to be £6 million
ii. Within the borrowing limit:
Short term borrowing £5 million
Variable rates borrowing £5 million
2. That, if the limits required to be amended in any way, a further report be submitted for the Authority’s consideration.
3. The Treasurer be authorised to undertake actual borrowings with full details of borrowings being reported to the Authority in due course.
B
Treasury Management
The relevant movements involving Treasury Management of the Authority for the Financial year 2002/2003 were noted:
- Short Term Borrowing – no short term borrowing was undertaken during the year,
- Long Term Borrowing – the Authority had a Basic Credit Approval in respect of Capital Expenditure for the year amounting to £1,034,000, and a balance of Supplementary Credit Approval of £24,605 (spread over two years) to cover expenditure incurred in respect of Equality and Diversity improvements. The following amounts were borrowed from the National Investment and Loans Office (PWLB): -
Loan Reference
Number |
Loan Amount £ |
Interest Rate % |
Term Years |
487676 (SCA) |
£24,605 |
4.650 |
7 |
487676 (BCA) |
£1,034,000 |
4.650 |
20 |
- Short Term Lending – because the Authority is not allowed to hold any reserves, investments are consequently taken to reflect short term cash flow surpluses in order to maximise the use of revenue balances. This involves a substantial number of transactions invested and returned into the Authority’s bank account, the value of which for the year was in excess of £200 million. Interest earned will be in excess of £130,000
- Long Term Lending – no long term lending was undertaken during the year.
RESOLUTION
It was RESOLVED that:
The report on Treasury Management be approved
C
Quarterly Finance Report
RESOLUTION
It was RESOLVED to:
Approve the quarterly report on actual performance submitted by the Treasurer in respect of both Revenue and Capital expenditure for the period ending 31st March 2003.
3
THE REPORT OF THE CHIEF FIRE OFFICER
1
Insurance Renewal – 2003/2004
Members were informed that terms had been agreed, via the Authority’s brokers, Marsh UK, for the portfolio of insurance policies for the 2003/2004 financial year. As had been expected, due in part to the crash in the equity market in 2002 compounding the effects of 11 September 2001, very substantial premium increases had been expected, particularly in relation to the Employers and Public Liability policies.
This had proved to be the case, with total premium levels for next year increased by £64,859 over last year’s premium.
This represented an expenditure increase of £167,462 over the original budget provision last year, which had been set prior to formal notification of actual premium increases.
Officers had expressed their appreciation for the work undertaken on the Authority’s behalf by Marsh UK, in securing terms which remained below the combined insurance premium paid by the three former Brigades prior to 1996.
Notably, Marsh had secured a continuance of ‘ground up’ cover on the liability policies, despite some reluctance from the Insurers to provide this, due in some measure to the implications of the Crymlyn Burrows compensation claim, which it was anticipated would be settled shortly. A report on this would be presented to Committee, once final settlement terms had been agreed.
RESOLUTION
It was RESOLVED that:
The insurance renewal terms be approved
The contract with Marsh UK, acting as the Authority’s brokers, be continued in 2003/2004
2.
Integrated Business Headquarters Facility, Carmarthen – PFI Project
Members were aware that in January 2002 the Authority had submitted an Outline Business Case (OBC) to the Department of Transport, Local Government and the Regions, setting out its proposals for an integrated Headquarters facility at the Lime Grove Avenue site in Carmarthen, using the Private Finance Initiative as the preferred procurement methodology.
Since forwarding the OBC to the DTLR, policy responsibility for fire services had transferred to the Office of the Deputy Prime Minister, and the latest understanding was that the Authority’s submission had yet to be formally considered, due to ongoing difficulties with the funding and distribution arrangements for PFI credits in Wales. As a result Members were informed that a number of changes had occurred:
- The financial basis of all the detailed cost calculations and financial models used within the Outline Business Case had been predicted upon the economic situation in the Autumn of 2001. Members were aware of the many changes that had occurred in the intervening 18 months, and much of the costing information would therefore need to be revalidated.
- The former Headquarters facility at College Road, Carmarthen, had been sold, and officers had relocated to temporary rented offices in Johnstown, Carmarthen.
- The Fire Authority had agreed to relocate the Stores facility in Carmarthen to refurbished accommodation at Earlswood. A central stores facility, currently included within the PFI scheme, would not consequently be required.
- A best value review of vehicle maintenance facilities within the Brigade was almost complete. Preliminary indications had supported a reduction from the current five workshops, which may or may not impact upon the current plans to replace the Carmarthen workshops facility as part of the PFI project.
Given the potential cumulative impact of those issues on the PFI scheme, Members considered it timely that the Fire Authority reconsidered its ongoing commitment to the scheme.
From the Brigade’s managerial and operational perspectives, it was becoming increasingly difficult to manage effectively on split sites in Carmarthen. This position was likely to worsen unless some early decisions were taken to develop an alternative strategy for integrating the business, managerial and operational support functions.
Committee were aware that at its meeting on the 29th July 2002, approval had been given to the development of alternative design briefs to meet the immediate accommodation needs in Carmarthen. It had also been decided at that meeting that when work on producing alternative plans had been commissioned, and in the event that no response had been received to the OBC, the Authority would at that stage consider the viability of retaining the PFI option. That position had now been reached.
It was noted that the consensus view of officers who had worked closely on the PFI project was that the Authority should now consider withdrawing support for procuring using the PFI route, given the passage of time and the uncertainties facing the Authority and the potential change in the nature of the Brigade’s accommodation requirements in Carmarthen.
RESOLUTION
It was RESOLVED that:
- The Authority formally withdraw its support for the PFI project for an integrated Headquarters facility at Carmarthen
- That the Members’ PFI Working Group be convened as a matter of urgency to agree alternative means of satisfying, in the short term, the Authority’s most pressing Headquarters accommodation requirements, focusing initially in bringing all staff in Carmarthen onto the Lime Grove Avenue site.
3.
Provision of Allowances to Members of Combined Fire Authorities
Members were informed that a paper had been produced by the Welsh Assembly Government setting out a proposal to extend the Local Authority (Allowances for Members of County and County Borough Councils and National Park Authorities) (Wales) Regulations 2002 and guidance, to encompass members of the three Welsh combined fire authorities.
The Welsh Assembly had requested that fire authorities provided comments on the paper to be received no later than the 9th May.
Members noted that should they wish to support the proposal to extend the Regulations then there would be a resource implication, for which no provision had been included within the budget for 2003/2004.
An estimate of the costs that would arise if the scheme were introduced with allowances set at or near the levels suggested in the proposal was provided for Members information:
| Special Responsibility Allowances (Excluding any allowances for
Chairs/Vice-Chairs of Committee) |
£15,302 |
| Members’ allowances |
£20,861 |
| Travelling and Subsistence |
£23,250 |
| (Assuming all meetings in Carmarthen
and existing Committee structure and
meeting frequency is maintained) |
£59,413 |
In addition, Members were informed that it would be necessary to include some provision for attendance at meetings of ad-hoc working groups and special meetings of the Authority and its Committees, particularly given the changes to the service that could arise in the next year or so which would require what was likely to be a significant Member involvement. A budget provision of £62k was therefore considered to be a reasonable estimate of the additional costs that would face the Authority in the current financial year, in the event that the Regulations were introduced with effect from the 1st April 2003.
A lengthy discussion ensued and whilst members were supportive of the principle of providing allowances, concern was expressed at the timing, the potential impact on the budget, the basis of assessment of hours on fire authority business and the non recognition of the additional role performed by the Chairs and Vice Chairs of Committees. Members also queried whether alternative models, such as those adopted by Police Authorities had been considered by welsh assembly Government prior to publication of the Consultation paper.
RESOLUTION
It was RESOLVED that:
A draft response be prepared reflecting the views expressed by Committee for consideration by the Fire Authority on 12th May 2003.
4
Damage to Driveway – Divisional Officer A
A request had been received from Divisional Officer A for reimbursement of the cost of repairing/re-instatement of a section of the driveway of his home, which had been contaminated by engine oil leaked from the Brigade owned vehicle used by the officer for Brigade purposes.
Following investigation by the Transport Services Manager, it had been confirmed that the oil had leaked from the vehicle’s oil filter housing, although the officer did not apparently report the leakage to the Transport Department immediately upon the fault becoming apparent to him, as should have been the case under the provision of the Brigade’s Standing Orders. The cost of making good the damage caused to the driveway would amount to some £400 - £500, as the whole surface of the drive would have to be re-laid.
RESOLUTION
It was RESOLVED that:
The request for reimbursement for the cost of repair/re-instatement of a section of driveway be refused.
5
Fire Service Circular FSC 7/2003 – Integrated Fire Risk Management Planning
Consideration was given to Fire Service Circular 7/2003, which provided early information on the Government’s intention to implement a programme of reform and modernisation of the framework within which the fire service operated, together with guidance notes to accompany the Circular. These had been published for consultation initially, with the intention to issue the final guidance in June 2003. Following that, the Circular had suggested that draft Integrated Fire Risk Management Plans should be published by fire authorities for consultation by the end of September 2003, which set a challenging timetable.
From reading the documents it was clear that the basis upon which the fire service had traditionally assessed its operational response and fire safety delivery methodologies would face fundamental change under the proposals to require each Fire Authority to produce an Integrated Fire Risk Management Plan, specific to the circumstances in its area.
In order to ensure that the Fire Authority was in a position to respond comprehensively within the time deadlines set by Government, the Authority would need to consider the implications of the introduction of the Fire Risk Management Plans at its meeting on the 12th May 2003.
Mindful of the fact that interviews for the post of Deputy Chief Fire Officer would also be held later on that day, leaving insufficient time for Members to consider and debate what would arguably be the most important and fundamental development within the fire service over the last twenty five years, the Chair and Vice-Chair of the Authority had agreed that a Members’ seminar be held at which officers of the Brigade would outline, and discuss with Members, the key elements of the proposed changes to current risk categorisation methodologies. Following this seminar on the 2nd May 2003, the Fire Authority would then receive a report, for consideration at its meeting on the 12th May, setting out a proposed response to the consultation paper which would take into account the views expressed at the seminar.
RESOLUTION
It was RESOLVED that:
The arrangements for the Seminar on Integrated Fire Risk Management Planning be approved.
6
Unofficial Industrial Action
The Chief Fire Officer informed Committee that on the evening of 9th April 2003 between the hours of 20.30 and 21.30 retained personnel at some stations within the County Commands of Neath Port Talbot and Swansea, took unofficial action by withdrawing availability. Neither the Chief Fire Officer or Principal Officers had been informed of the intention to undertake industrial action and a number of issues specifically related to concerns amongst some retained personnel had subsequently become apparent.
In response, Mr Mackay had written to the Fire Brigades Union Brigade Secretary expressing concern and formally requesting that the Fire Brigades Union repudiated in writing the action taken as required by the Trade Union Labour Relations (Consolidation) Act 1992.
Letters had also been sent to all individuals who had taken part in the unofficial industrial action advising them that the action taken was contrary to the legal requirements of Industrial Action and that any further such action would be regarded as a potential breach of contract.
Members were informed that arrangements had been made by the Acting Deputy Chief Fire Officer to meet with officials and representatives from the retained sector in order to try to resolve the issues that were causing concern.
RESOLUTION
It was RESOLVED that:
Members endorse the steps taken by Brigade Officers in responding to the unofficial industrial action.
4
VERBAL UPDATE INDUSTRIAL ACTION
Members expressed their thanks to Councillor J D A Thompson who provided Committee with a comprehensive verbal report on the current position in regard to the Fire fighters pay dispute.
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