COFNODION
CYFARFOD Y PWYLLGOR CYLLID A DIBENION CYFFREDINOL

Pencadlys Brigâd Dân, Heol Llwyn Pisgwydd, Caerfyrddin
Dydd Llun, 20 Ionawr 2003

MINUTES
OF THE FINANCE AND GENERAL PURPOSES COMMITTEE MEETING

held at Brigade Headquarters, Lime Grove Avenue,
Carmarthen
Monday 20th January 2003

ATTENDANCE Present at Meeting:
CADEIRYDD/CHAIRMAN:	Cyng/Cllr: J S Allen-Mirehouse
IS-GADEIRYDD/VICE CHAIRMAN:	Cyng/Cllr: P B Davies
AELODAU/MEMBERS:	Cyng/Cllrs: W G Bennett, C J Crowley, J J J Davies, Mrs F M Jones, H T Lewis, E T Morgan, C Owen, D C Prothero, G Seabourne, J D A Thompson
YMDDIHEURIADAU/APOLOGIES:	Cyng/Cllrs:T W Davies, D Phillips

Contents

1 PERSONAL MATTERS

2 DECLARATION BY MEMBERS OF ANY PECUNIARY OR NON PECUNIARY INTEREST

3 VERBAL REPORT FROM COUNCILLOR J D A THOMPSON

4 THE JOINT REPORT OF THE CHIEF FIRE OFFICER AND TREASURER

5 THE QUARTERLY REPORT OF THE TREASURER

6 REPORT OF THE CHIEF FIRE OFFICER

1 PERSONAL MATTERS

Reference was made to the recent passing of Councillor D G Sullivan's Father-in-law and Members stood as a mark of respect.

2 DECLARATION BY MEMBERS OF ANY PECUNIARY OR NON PECUNIARY INTEREST

None was received

3 VERBAL REPORT FROM COUNCILLOR J D A THOMPSON

Councillor J D A Thompson provided Members with an overview of the pay dispute at national level in which he reported that the Employers side had last week forwarded a statement to the FBU indicating their full support of the principals of the Bain review. He added that although ACAS were due to meet the FBU Executive on the 20 th January 2003 there seemed very little progress to be made. Councillor Thompson suggested that the Authority made direct representation to the ODPM for funding to carry out the recommendations contained within the Bain report, in particular the additional costs relating to the retained firefighters.

4 THE JOINT REPORT OF THE CHIEF FIRE OFFICER AND TREASURER

i Revenue Budget 2003/2004 Financial Year

Members were reminded of the special meeting of the Committee held on the 16 th December 2002, when the indicative budget requirement for the forthcoming financial year, representing an increase of 4.99% over the current year's budget, was approved as the basis of consultation with constituent unitary authorities.

The decisions of the special meeting of the Committee had been discussed with representatives of the six constituent authorities at a meeting held at Fire Brigade Headquarters on the 23 rd December 2002. It had been accepted at that meeting that the budget increase of 4.99% was reasonable, in light of the circumstances facing the Brigade, and much debate took place in relation to the potential consequences arising out of a settlement of the firefighters' pay dispute, in the event that it produced a pay increase of more than 4%.

The Treasurer presented the revised budget (Appendix 1), which showed an increase of some 5% over the previous year and included the following provision for uniformed firefighters' and control room pay-

4% from November 2002, that is a full years provision, and
4% from November 2003, that is for 5 months.

Although this did not replicate the suggestions on pay for 2003/2004 made by Professor Sir George Bain it had been considered that to include anything more at this particular stage in the negotiations would, or could be interpreted to send out entirely the wrong message to all parties concerned, both in the context of what the Authority was prepared to pay or its affordability by the funding Authorities.

The Treasurer made clear to Committee the consequences on the Fire Authority budget: either the Authority agreed a budget that was unlikely to fund the operational requirements for the coming year on the clear understanding that any pay settlement over and above the provision made would result in a supplementary "levy" during 2003/2004, or between now and the final budget setting date [10th February Authority meeting] of 15th February a calculation was made for inclusion in the Budget of the sum necessary to meet any agreement reached between Employers and Employees in excess of the 5% increase currently required.

Members were reminded that any efficiency or modernisation savings contained within the Bain report would not materialise in any substantive manner for some 3 to 5 years. This had been recognised by Professor Sir George Bain and he had called upon the Government to make interim funding available to the Local Authorities in the meantime. However, Combined Fire Authorities are outside the main RSG arrangements and therefore cannot receive direct Government support which can only go to the funding Unitary Authorities. It is consequently a matter for the constituent Authorities to take up with the National Assembly Government and the Office of the Deputy Prime Minister, with our support, in relation to the "who pays" argument.

For Members information the Treasurer provided an estimate of the implications of the Bain Report recommendations as they would affect the Authority:

Additional training for Retained Personnel [First Phase]	£150,000
Rationalisation of payments to Retained Personnel	£ 500,000
A 7% pay award from November 2003 [5 months effect]	£ 250,000 £ 900,000

The additional sums would represent a further increase of some 2.64% to the budget recommendation already approved by the Committee making a total increase of some 7.63% for 2003/2004 over the Budget for the year.

In constructing the detailed budget, it became apparent that a number of budget headings, within the supplies and services sector, would have to be severely curtailed in order to meet the requirement to limit the annual increase to 4.99%. Insurance premiums for example, were estimated to rise next year by some £200,000 over this year's budget provision. Other cost increases likely to occur included business rates, water and environmental charges applicable to the Authority's properties.

Committee were advised that the consequences of producing the budget with no provision for inflation on supplies and services, would have a significant impact upon many budget heads all of which would require robust management, and unpalatable decisions which would have to be taken throughout the financial year.

A summary of the main budget heads which had been subjected to significant reductions next year was detailed for Members' information:

All mileage, fuel and travelling costs - 10% reduction
Audio Visual/Photographic expenditure - 15% reduction
Furniture - 15% reduction
Canteen Equipment - 25% reduction
Printing Costs - 20% reduction
Reference materials and photocopying charges - 20% reduction
Telephone costs - 10% reduction
Computer software - 20% reduction on current expenditure
Subsistence payments - 10% reduction
Conference and Seminars - 20% reduction on current expenditure
Premises Maintenance/Energy Costs - 6% reduction on all "controllable" expenditure.

Members noted that these reductions had been imposed in order to preserve as far as possible expenditure on front line operational items, particularly in terms of firefighting equipment and protective clothing.

RESOLUTION

It was RESOLVED that:

1. That the revenue budget for the 2003/2004 financial year, amounting to £35,737,322, be approved, subject to the following provisions;
   
   (a) That the effect of any pay settlements made before the 10th February 2003, in excess of the 4% provisions contained within the budget, be incorporated in the final budget; and
   
   (b) That such effect, in the event that a settlement is not reached by the 10th February deadline, would be the subject of an in-year supplementary levy to the constituent authorities to be approved initially by the Finance and General Purposes Committee and then the full Fire Authority.
   
   
2. The Fire Authority together with the six constituent authorities make joint representations to the ODPM concerning the distribution of additional funding and request that it reflect the number of wholetime and retained firefighters rather than a simple head of population ratio
   
3. A list of those who attended the meeting with the constituent authorities on 23rd December 2002 be made available at the next meeting.
4. The sentiments of the Authority on funding the recommendations contained within the Bain report be conveyed to the Wales Fire Services Forum meeting to be held on 23rd January by the Chief Fire Officer

ii Capital programme - 2003/2004 - 2007/2008

The revised five year capital programme was received and considered by Members. This had been produced by allocating the Basic Credit Approval made available to the Fire Authority, in the sum of £904,000, towards those projects that featured within the current agreed programme for the 2003/2004 financial year. Committee noted that the Basic Credit Allocation was inadequate to meet all the Authority's capital build requirements, and a narrative had been provided against each project outlining the implications thereby arising, and projects had been re-phased in order to match planned expenditure next year to the level of BCA received.

It was anticipated that many of the projects included within the revised five-year programme would be reviewed during the coming year, and reports would be submitted to Committee should further amendments to project rationale, design or timing be required. In the meantime, Committee were asked to consider the proposed programmes, and to approve the suggested allocation of the Basic Credit Allocation, for 2003/2004, in the sum of £904,000.

RESOLUTION

It was RESOLVED that:

1. Approval be given to the revised five-year capital programme for the 2003/2004 - 2007/2008 financial years
   
2. That the allocation of the Basic Credit Allocation made available to the Authority for the 2003/2004 financial year, in the sum of £904,000, as set out in the programme, be approved.

5 THE QUARTERLY REPORT OF THE TREASURER

The reports on actual revenue expenditure performance and capital expenditure to 31 st December 2002 were received and it was noted that the Treasurer confirmed that both should be contained within the overall budget limit and were giving no cause for concern.

RESOLUTION

It was RESOLVED that:

The Report on Actual Revenue Performance and Capital Expenditure to 31st December 2002 be approved.

6 REPORT OF THE CHIEF FIRE OFFICER

i Acquisition of temporary accommodation at Former ATS Headquarters, Johnstown

Members were informed that as an outcome of the disposal of Ucheldir, various solutions to accommodate personnel had been investigated and to date the most appropriate would be to rent the former ATS offices, at Johnstown, Carmarthen, where the standard of accommodation was suitable, and more appropriate than the alternative of providing portable accommodation at the Lime Grove Avenue site.

Negotiations had commenced with the agent and landlord, with a view to agreeing an initial three-year lease arrangement and it was anticipated that the rental costs would be significantly less than the costs that would be incurred to provide temporary accommodation for the numbers of staff at the headquarters site.

It would be necessary to secure efficiency savings elsewhere within the revenue account to meet the increased rental costs however and this could only be achieved by rationalising the use of Brigade premises, and in this regard consideration was being given to relocating the Brigade's stores facility from Johnstown, Carmarthen, to the Earlswood site, where spare accommodation was available for this purpose.

With the move towards an externalised management of the provision, storage and distribution of Personal Protective Equipment, and the move towards direct delivery of a range of supplies and services, the time was opportune to consider a change in emphasis from the traditional "central stores" ethos. This would allow for the in-house storage of a much reduced range of equipment and supplies, and relocating to Authority owned premises at Earlswood would release rental expenditure on the current facility at Johnstown, that would be applied towards the leasing charges, and other premises cost increases, that would occur next year.

Achieving this objective would require the relocation from the Earlswood site vehicles and equipment owned by the Historical and Preservation Society. Members expressed concerns about the re-housing of the Historical and Preservation Society but were reassured that discussions would be initiated as a matter of urgency, to allow as much time as was practicable for the relocation of their property.

RESOLUTION

It was RESOLVED that:

1. That the acquisition of temporary office accommodation at Johnstown, Carmarthen, by way of a lease/rental agreement, on terms to be negotiated, be approved
   
2. That the relocation of the Brigade's Central Stores facility to the Earlswood site be endorsed, and that discussions take place as a matter of urgency with the Historical and Preservation Society for the relocation of their vehicles and equipment from the site
   
3. That consultation with the representative bodies be initiated to agree the arrangements for staff relocation, consistent with the above recommendations.

ii Archaeological excavation at Knighton Fire Station

As part of the equality and diversity works necessary within all stations, an extension to the existing building was required. However, upon consultation with Powys County Council and Clwyd-Powys Archaeological Trust, it was found that the proposed development may be on a site of historical and archaeological interest to the Trust.

The Planning permission stated that an archaeological evaluation was required which involved employing a specialist contractor to carry out site investigations. To date an approximate cost had been sought from Powys County Council and three contractors had been approached for their costs to evaluate the area affected by the extension.

RESOLUTION

It was RESOLVED that:

That the archaeological evaluation proceed, with a limit of £5,000 for such investigation works. In the event that costs significantly exceeded this amount, a further report would be submitted on the viability of the project.

iii Joint Development at Crymych Fire Station with the Police Authority

Members were informed that the Police Authority had now formally confirmed its commitment to proceed with this joint venture, tenders had been accepted and the contract was to commence at the end of January 2003. Arrangements were in hand for each Authority to be present at a turf cutting exercise in the near future. Members were asked to consider it appropriate to be represented by the Chair or Vice-Chair of the Authority, together with the Chair of Finance and General Purposes Committee.

RESOLUTION

It was RESOLVED that:

The Chair or Vice Chair of the Authority together with the Chair of the Finance and General Purposes Committee attend the turf cutting ceremony.

iv Richard Commission : The Powers of the National Assembly for Wales: Issues and Questions for Consultation

Members received a letter from the Richard Commission which invited the Authority to attend a public meeting held last Wednesday 15th January in Swansea. The letter was received less than a week before the meeting and did not therefore allow the Authority an opportunity to discuss the consultation and agree attendance or otherwise. Members were aware that the Richard Commission had been established to review the powers and electoral arrangements of the National Assembly for Wales. With the letter was a copy of the Consultation Document which set out the background to the Commission, its terms of reference and consultation questions. Further public meetings would be held throughout Wales and the Commission had also invited written responses to the document.

Members will be also be aware that the report published by Professor Sir George Bain who undertook the Independent Review of the Fire Service made specific comments in respect of devolving policy responsibility for the Fire Service in Wales to the National Assembly.

RESOLUTION

It was RESOLVED that:

That the Chief Fire Officer respond initially in writing to the Consultation Document and keep Members informed of future developments.

v LGA Seminar: The True Cost of Fire

Details were received of the above Seminar to be held at the Lancashire Fire and Rescue Service on Thursday 20th February 2003. Members were requested to consider whether they would wish Authority Representation at the Seminar to be accompanied by the Divisional Officer for Community Fire Safety.

RESOLUTION

It was RESOLVED that:

Mindful of the earlier discussions on the 2003/04 budget, Members considered it appropriate that the Seminar should be attended by a uniformed officer only