To consider Mayor’s response to the Council’s objections to the review of the above Policy Framework document as set out in the attached record of decision.

Further to the Council meeting held on 20 July 2017, members considered the submitted report on the Mayor’s response to the objections raised by the Council on the Mayor’s recommendations on the review of the Investment Fund Strategy and the levels of the Investment Fund.

Mayor Oliver proposed and Councillor Haddock seconded a motion as set out below:

that the Council be recommended to approve the revised Investment Fund Strategy, including the additional £50 million for the Investment Fund (making a total of £100 million) to be funded from prudential borrowing (when required), as set out in Appendix 1 to the submitted report.

During the debate Councillor Robson proposed and Councillor Tyerman seconded an amendment to the motion as follows:

that the Council be recommended to approve the revised Investment Fund Strategy, including the additional £50 million for the Investment Fund (making a total of £100 million) to be funded from prudential borrowing (when required), as set out in Appendix 1 to the submitted report, as subject to the inclusion of an additional £150 million for the Investment Fund (making a total of £200 million) to be funded from prudential borrowing (when required), and that the level of delegation to the Investment Committee be increased to £25 million.

A recorded vote was taken on the amendment.  The voting was taken by roll call as follows:  For: Councillors Barnby, Bye, Carter, Darling (M), Darling (S), Doggett, Ellery, Hill, Kingscote, Lewis (B), Lewis (C), Manning, Morey, O’Dwyer, Parrott, Pentney, Robson, Stocks, Sykes, Thomas (D), Thomas (J), Tolchard and Tyerman (23);  Against:  Mayor Oliver, Councillors Amil, Excell, Haddock, King and Stockman (6);  Abstain:  Councillors Brooks, Sanders and Stubley (3);  and Absent:  Councillors Bent, Mills, Morris, Stringer and Winfield (5).  Therefore, as more than two-thirds of members present and voting had cast their vote in support of the amendment it was carried.

The amended (substantive) motion was then considered by members.

A recorded vote was taken on the amended (substantive) motion.  The voting was taken by roll call as follows:  For: Councillors Barnby, Bye, Carter, Darling (M), Darling (S), Doggett, Ellery, Hill, Kingscote, Lewis (B), Lewis (C), Manning, Morey, O’Dwyer, Parrott, Pentney, Robson, Stockman, Stocks, Sykes, Thomas (D), Thomas (J), Tolchard and Tyerman (24);  Against:  Mayor Oliver, Councillors Haddock and King (3);  Abstain:  Councillors Amil, Brooks, Excell, Sanders and Stubley (5);  and Absent:  Councillors Bent, Mills, Morris, Stringer and Winfield (5).  Therefore, as more than two-thirds of members present and voting had cast their vote in support of the substantive motion it was carried as follows:

that the Council be recommended to approve the revised Investment Fund Strategy, as set out in Appendix 1 to the submitted report, subject to the inclusion of an additional £150 million for the Investment Fund (making a total of £200 million) to be funded from prudential borrowing (when required), and that the level of delegation to the Investment Committee be increased to £25 million.

To consider the recommendations of the Mayor on a review of the above Policy Framework document.

The Council considered a further review of the Investment Fund Strategy (as set out in the submitted report) in light of lessons learned from previous investments.  The report also set out the recommendations of the Mayor and the Investment Committee on the level of the Investment Fund.

The Chairwoman reported that the Mayor had published a revised Record of Decision on 20 July 2017 which supported the Investment Committee’s recommendations.

Mayor Oliver proposed and Councillor Mills seconded a motion as set out below:

that the Council be recommended to approve the revised Investment Fund Strategy, including the additional £50m for the Investment Fund (making a total of £100m) to be funded from prudential borrowing (when required), set out in Appendix 1 to the submitted report.

During the debate Councillor Tyerman proposed and Councillor Robson seconded an objection to the motion as follows:

that the Council formally objects to the adoption of the revised Investment Fund Strategyon the basis that:

1.   The amount of money within the Investment Fund should be substantially increased beyond that recommended by the Mayor and the Investment Committee to enable the Council to realistically meet its goal of increasing revenue in support of the Council’s budget;  and

2.   The level of authority delegated to the Investment Committee be substantially increased to support the ability to properly investigate opportunities and make timely decisions to be able to respond to the market.  This will also provide a more efficient governance mechanism for effective decision-making.

In accordance with the Constitution at F4.9, the Council therefore requires the Mayor to consider this objection by 28 July 2017 and either:

a)         submit a revision of the Investment Fund Strategywith the reasons for any amendments to the Council for its consideration;  or

b)        inform the Council of any disagreement that the Executive has with any of the Council’s objections and the Executive’s reasons for any such disagreement.

The objection was put to the vote and declared carried. The Mayor would consider the objection and publish his response by 28 July 2017 for consideration at the Council meeting on 13 September 2017.

(Note 1:  Councillor Bye joined the meeting during consideration of this item.)

(Note 2:  In accordance with Standing Order A19.6, Councillor Haddock requested his abstention from voting on the objection to be recorded.)