Economic Development Company
- Meeting of Overview and Scrutiny Board, Friday, 13 January 2012 2.00 pm (Item 474.)
- View the background to item 474.
To discuss the Revenue Budget 2012/13 Provisional Spending Targets for the Economic Development Company
Minutes:
The
Mayor and the Chief Executive Officer for the EDC presented the
budget proposals for the business unit to the Board.
The
Board questioned whether in terms of the overall budget build,
would the EDC be able to make the savings required form
1st April 2012. The Board were advised that the EDC
would be able to make the savings and they were confident that the
savings would be implemented from the 1st April
2012.
The
Board questioned how confident the CEO of the EDC was to meet the
targets for income generation as set out in the budget proposals.
The Board were advised that the CEO of the EDC was confident the
income would be generated.
The
Board questioned how far advanced the proposals are to transfer
Brixham Town Hall to the Town Council and move connections staff
out. The Board were advised that discussions are ongoing and that a
meeting is taking place on the 26th January with Brixham
Town Council to discuss this further. The Board advised that there
are also ongoing discussions taking place with Brixham Library
regarding the potential moves.
The
Board questioned whether there are any development items or cost
pressures within the EDC which O&S should be aware of at this
time. The Board were advised that there are no immediate pressures,
however they were reminded that the EDC no longer had any
unallocated reserves in place as a consequence of the 2012//13
budget build. The Board were advised that if any pressures were to
arise that the CEO of the EDC would come back to Council to
discuss. The Board were advised that
the EDC was presently looking at further opportunities to maximise
economic growth associated with the recently confirmed South Devon
Link Road and on-going negotiations relating the future development
of the Whiterock Business Park.
The
Board asked whether the EDC provided any grants and grants in kind
(reduction in fees etc) and if so what changes are proposed in
these areas. The Board were advised that the EDC does not provide
grants/grants in kind.
The
Board questioned when additional income is generated within the EDC
what the process is for recovering over target amounts into a
central pot. The Board were advised that as the EDC is a separate
‘not for profit’ legal entity (although wholly owned by
Torbay Council) and that any surplus would normally be reinvested
in front line delivery. The Board were advised that EDC does
receive a formal Contract Fee from Torbay Council for services
provided and that this can be reduced if service delivery surpluses
are made. The Board were advised that the EDC is likely to return
£150,000 back to the Council this year.
The
Board questioned whether there were any implementation costs
associated with the proposals as there are none outlined in the
budget papers. The Board were advised that there were
none.
The
Board questioned whether the proposal to close administrative
offices over Christmas and New Year would effect customer access to any front line service
and if so, which services and what contingency is in place. The
Board were advised that this would only impact on back office staff
and that all customer access points would remain open.
The
Board questioned whether the cleaning contract is in place and
delivering the required savings. The Board were advised that the
contract is currently out to tender.
The
Board questioned whether the proposed reductions in repairs and
maintenance costs would mean additional expenditure may be incurred
in the longer term. The Board were advised that the reduction has
been put forward as we are disposing of council assets and will no
longer have to maintain as many buildings in the future. The Board
were advised that no council assets would fall into disrepair over
the next 2/3 years as a result of this reduction.
The
Board questioned how much Estates Management support we are
currently buying in. The Board were advised that this service is
being brought back in house.
The Board questioned whether the deletion of the vacant energy post was good value for money and whether the penalty charges would outweigh the deletion of this post. The Board were advised that the person that was in the post has resigned and has left the council so is vacant. The Board were advised that if the EDC was able to bring in income to pay for the post they would reinstate it.
Supporting documents:
Contact Governance Support
- Email: governance.support@torbay.gov.uk
- Tel: 01803 207087
- Fax: 01803 207112
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