Policy And Resources Committee - 22/08/2022

At a MEETING of the POLICY AND RESOURCES COMMITTEE held remotely on 22nd August, 2022.

Present:-

BAILIES

COUNCILLORS

The minute of meeting of this Committee of 27th June, 2022 was held as read.

Unless marked thus * all items stand delegated.

Councillor John ALEXANDER, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II MINUTES

(a) PENSION SUB-COMMITTEE AND PENSION BOARD - 27TH JUNE, 2022

The minute of meeting of the Pension Sub-Committee and Pension Board of 27th June, 2022, a copy of which is appended hereto, was submitted for information and record purposes (Appendix I).

(b) RECESS SUB-COMMITTEE - 6TH JULY, 2022 AND 1ST AUGUST, 2022

The minutes of meetings of the Recess Sub-Committee of 6th July and 1st August, 2022, copies of which are appended hereto, were submitted for information and record purposes (Appendices II and III).

III FAIR TAX DECLARATION

This item was placed on the Agenda at the request of Councillor Duncan who requested that the City Council support the Fair Tax Declaration, which stated that the Council would lead by example and demonstrate good practice in its tax conduct throughout all its activities, and further support better standards of tax conduct generally.

Thereafter, the Committee resolved the following:-

1. Approve the Councils for Fair Tax Declaration.

2. Lead by example and demonstrate good practice in our tax conduct, right across our activities, including:

- Encouraging contractors to implement IR35 robustly and pay a fair share of employment taxes.

- Discouraging the use of offshore vehicles for the purchase of land and property, especially where this leads to reduced payments of stamp duty.

- Discouraging the use of not-for-profit structures where these are used inappropriately as an artificial device to reduce the payment of tax and business rates.

- Encouraging clarity on the ultimate beneficial ownership of suppliers and their consolidated profit and loss position, given lack of clarity could be strong indicators of poor financial probity and weak financial standing.

3. Promote Fair Tax Mark certification for any business in which we have a significant stake and where corporation tax is due.

4. Join in and support Fair Tax Week events in the area and celebrate the tax contribution made by responsible businesses who say what they pay with pride.

5. Support calls for urgent reform of EU, UK and Scots Law to enable municipalities to revise their procurement policies and better penalise poor tax conduct and reward good tax conduct.

IV ASYLUM SEEKERS

This item was placed on the Agenda at the request of Councillor El-Nakla who asked the Committee to agree that the Chief Executive would write to the Home Secretary, The Right Honourable Priti Patel MP, asking that the UK Government rethink their policy on sending Asylum Seekers to Rwanda and reset their whole immigration policy to build fairness, dignity and respect into the process.

Councillor El-Nakla, seconded by Councillor Tolland, moved approval of the following:-

Whilst we are relieved that the European Court of Human Rights has temporarily suspended the UKs expulsion of asylum seekers to Rwanda, we want to express our grave concerns that the UK Government seem determined to continue this inhumane and shocking policy.

Article 14 of the 1948 Universal Declaration of Human Rights states that everyone has the right to seek and enjoy asylum from persecution in other countries asylum. Our neighbours from across the globe are fleeing violence, persecution and war and are risking their lives trying to cross the English Channel to find safety. This is not a situation anyone should have to experience.

Rather than support people who seek refuge, however, this UK policy is a terrible shirking of our ethical and humane responsibilities. We are appalled at this, and the UK Governments barbed insistence to push this policy shows nothing but a hostile environment built on dehumanising asylum seekers.

Human Rights Watch express our own deep concerns that asylum seekers will be at risk of abuse if they speak against any ill treatment in Rwanda; a country with serious human rights abuses including repression of free speech, arbitrary detention, ill-treatment, and torture.

Expelling our asylum seekers to a country with such a track record on human rights sends a dreadful message across the globe; that the UK is willing to subject our vulnerable and traumatised asylum seekers to cruelty and violence. We reject this abhorrent policy categorically. More so, this comes against the background of other cruelties such as Windrush, as part of the last decades hostile environment, creating increasing hostility and racism at institutional levels. This is not in our name, and it never will be.

We demand that every single person be accorded the same human rights regardless of where they come from and their circumstances. We want our asylum seekers and refugees to be welcomed. We demand an end to the hostile environment and the racism it brings.

Last year the Scottish Government developed a scheme where the government would sponsor Ukrainians fleeing the Russian invasion, to be welcomed by families across Scotland. We welcome the Scottish Governments moves to create a humane and welcoming environment, and ask that the UK Government rethink this policy and reset their whole immigration policy to build fairness, dignity and respect into the process.

I am here to ask the Council to support this motion; as a collective making a public gesture that Dundee is a City that welcomes and values refugees alongside making the intention to write to the UK Government expressing our concern.

As an amendment, Bailie Scott, moved the direct negative that the Committee did not write to the Home Secretary, but failed to find a seconder, whereupon he asked for his dissent to be recorded and the motion became the findings of the meeting.

V FUEL WELL DUNDEE 3

There was submitted Report No 204-2022 by the Executive Director of Corporate Services providing an update on Fuel Well Dundee 3.

The Committee agreed:-

(i) to note the roll out programme of Fuel Well Dundee (FWD) 3 considering the cost of living crisis and how a holistic approach had been adopted to assist as many Dundee households as possible;

(ii) to allocate 260k of the 420k held in contingency to support a second phase allowing new customers to apply to FWD3; and

(iii) to allocate the remaining 160k of contingency fund to support food and fuel in light of demand or new pressures and delegate the Chief Executive authority to take the necessary steps to implement any future support schemes.

VI REVENUE MONITORING 2022/2023

There was submitted Report No 192-2022 by the Executive Director of Corporate Services providing an analysis of the 2022/2023 projected revenue outturn as at 30th June, 2022 and the impact on the Councils overall balances position.

The Committee agreed:-

(i) to note that the overall General Fund as at 30th June, 2022 was projecting an underspend of 1.291m against the adjusted 2022/2023 Revenue Budget and the impact this had on the projected Councils General Fund Balances;

(ii) to note the budget adjustments totalling 16.611m as detailed in the second column of Appendix A (and summarised in Appendix E) of the report as virements to the previous approved Revenue Budget;

(iii) to note the position on Covid-related expenditure and Covid funding, that was included in the overall projection but was set out separately for information in Appendix B and paragraph 6.1 of the report;

(iv) to note that the Housing Revenue Account as at 30th June, 2022 was projecting a breakeven position against the adjusted Housing Revenue Account 2022/2023 Revenue Budget and the impact this had on the element of the projected Renewal and Repair Fund earmarked to the Housing Revenue Account;

(v) to note the position on ring-fenced grants outlined in Appendix C of the report; and

(vi) that the Council Leadership Team would take every reasonable action to ensure that the 2022/2023 revenue expenditure was below or in line with the adjusted Revenue Budget.

VII SCOTLAND EXCEL COMMERCIAL PARTNERSHIP PROPOSAL

There was submitted Report No 205-2022 by the Executive Director of Corporate Services seeking approval of expenditure for the above commercial partnership that would provide short-term strategic support for the review and effective delivery of the Councils revised Procurement Strategy and Community Wealth Building Strategy.

The Committee agreed:-

(i) to note the information contained within the report;

(ii) that the Executive Director of Corporate Services entered into the above arrangement at a maximum cost of 243,200 over a two year period;

(iii) to note that an updated Corporate Procurement Strategy would be prepared and submitted to members; and

(iv) to note that further details of the Councils procurement activities would be submitted to members in the next Annual Corporate Procurement report.

VIII NATIONAL CARE SERVICE (SCOTLAND) BILL

There was submitted Report No 203-2022 by the Chief Executive advising members about the publication of the National Care Service (Scotland) Bill, including information on the extent to which the Bill clarified areas highlighted by the Council in its response to consultation on proposals for a National Care Service, and included a draft response to the call for views issued by the Scottish Parliament.

The Committee agreed:-

(i) to note that the Scottish Government had published the National Care Service (Scotland) Bill and associated documents, the key provisions of which were summarised in Appendix 1 of the report;

(ii) to note that the Policy Memorandum associated with the Bill acknowledged that the Bill would affect local government in Scotland, as it made provision for local authorities responsibilities for social services to be transferred to the Scottish Ministers and to care boards, and to remit officers to work with COSLA and the Scottish Government to identify the implications at the appropriate time and bring back reports to update Committee;

(iii) to note that, as detailed in Appendix 2 of the report, publication of the Bill clarified some of the matters raised in the Councils response to the consultation on proposals for the National Care Service, but that many details of how the service would operate remained to be decided following further consideration and consultation; and

(iv) that the draft response, as set out in Appendix 3 of the report, to the Scottish Parliaments call for views, be submitted by the deadline of 2nd September, 2022 along with the information in Appendix 2 of the report to provide further background on the Councils views.

John ALEXANDER. Convener.

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 27th June, 2022.

APPENDIX I

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II APOLOGIES

The Sub-Committee and Board noted apologies had been received from Councillor Crichton, George Ramsay, Raymond Boyd and Claire Shepherd.

IIl APPOINTMENT OF NEW PENSION SUB-COMMITTEE AND PENSION BOARD MEMBERS

There was submitted Agenda Note AN42-2022 asking the Pension Sub-Committee and Pension Board to note the following appointments to the Pension Sub-Committee and Pension Board following the Local Government Elections on 5th May, 2022:

Members noted the appointments accordingly.

IV MINUTE OF PREVIOUS MEETING

The minute of meeting of 21st March, 2022 was submitted and approved.

V TAYSIDE PENSION FUND TRAINING AND ATTENDANCE POLICY

There was submitted Report No 177-2022 by the Executive Director of Corporate Services presenting Tayside Pension Funds Training and Attendance Policy which was subject to annual review.

The Sub-Committee and Board approved the Training and Attendance Policy contained in Appendix 1 of the report.

VI TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 178-2022 by the Executive Director of Corporate Services updating the Risk Register for Tayside Pension Fund.

The Sub-Committee and Board approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 8th June, 2022, and note the following changes to risk profile since the previous report:

- Unable to participate in scheme (No 6) - The risk that employers can no longer afford to remain in the Fund.

There had been an increase in likelihood of this risk due to affordability of employer operations and maintaining financial health. In the last year, two small third sector employers had exited the Fund. It should be noted that the Fund had adapted its Funding Strategy to accommodate where possible at minimal risk to remaining Fund employers.

VII TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY

There was submitted Report No 179-2022 by the Executive Director of Corporate Services presenting a revised Risk Policy and Strategy following an internal audit review of Risk Management and Regulatory Compliance.

The Sub-Committee and Board approved the revised Risk Management Policy and Strategy, noting the following changes:

- The introduction of a Risk Appetite Statement (Appendix B of the report)

- A revised Risk Assessment Matrix (Appendix C of the report)

- A revised Risk Register (Appendix D of the report)

VIII PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE TO 31ST MARCH 2022

There was submitted Report No 180-2022 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

The Sub-Committee and Board noted the content of the report.

IX TAYSIDE PENSION FUND ANNUAL GOVERNANCE AND GOVERNANCE COMPLIANCE STATEMENTS

There was submitted Report No 181-2022 by the Executive Director of Corporate Services presenting the Annual Governance Statement and Governance Compliance Statement for approval and inclusion into the unaudited Annual Accounts for the year ended 31st March, 2022. This report set out the governance arrangements of Tayside Pension Fund and the extent to which it complied with regulations.

The Sub-Committee and Board agreed to:-

(i) approve the Annual Governance and Governance Compliance Statements which are included as an Appendix of the report; and

(ii) instruct the inclusion of the statements in the Annual Accounts for the year to 31st March, 2022.

X TAYSIDE PENSION FUND UNAUDITED 2021/2022 ACCOUNTS

There was submitted Report No 182-2022 by the Executive Director of Corporate Services providing some additional commentary on the unaudited Annual Accounts 2021/2022 which were being submitted along with this report.

The Sub-Committee and Board agreed to:-

(i) note the contents of this covering report;

(ii) note the unaudited Annual Accounts which had been submitted along with this report in Appendix A of the report;

(iii) instruct the Executive Director of Corporate Services to arrange for the unaudited accounts to be signed as necessary; and

(iv) instruct the Executive Director of Corporate Services to submit the Annual Accounts to the Funds external auditor.

The Sub-Committee and Board resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

XI TAYSIDE PENSION FUND

(a) PERFORMANCE SUMMARY

There was submitted Report No 183-2022 by the Executive Director of Corporate Services reviewing the investment performance of the Funds investment managers for the quarter to 31st March, 2022. The report compared investment performance of the Fund with the Funds specific benchmarks which consisted of various stock and security market indices.

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 184-2022 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st March, 2022 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 185-2022 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.

The Sub-Committee and Board noted the content of the report.

XII SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 186-2022 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance approved by the Sub-Committee (Article XIV of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 21st March, 2022, Report No 93-2022 refers).

The Sub-Committee and Board noted the information contained within this report with regards to the activities of the Fund Managers during the six-month period ended 31st March, 2022.

XIII EXITING EMPLOYER REPORT - CAROLINA HOUSE TRUST

There was submitted Report No 187-2022 by the Executive Director of Corporate Services detailing the request from Carolina House Trust to exit as employers from Tayside Pension Fund.

The Sub-Committee is asked to note the information contained within this report, and approved the employer exit as at 31st March, 2022.

XIV PRESENTATION

Patrick Bone from Schroders gave a short presentation to the Sub-Committee and Board.

After Mr Bone had given his presentation and answered questions from members, the Chair thanked the presenter on behalf of members of the Sub-Committee and Board.

Willie SAWERS, Chair.

At a MEETING of the RECESS SUB-COMMITTEE held remotely on 6th July, 2022.

APPENDIX II

Present:-

BAILIES

COUNCILLORS

Bailie Willie SAWERS, Convener, in the Chair.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

There were no declarations of interest.

II OLYMPIA REFURBISHMENT PROGRAMME - REVIEW OF THE DESIGN AND CONSTRUCTION OF OLYMPIA

On a reference to Article VII of the minute of meeting of the City Development Committee of 6th December, 2021, there was submitted Report No 150-2022 by the Executive Director of City Development discharging the remit from the Committee to undertake a review of the design and construction of the Olympia building.

The Sub-Committee agreed:-

(i) to note the review undertaken of the design and construction of the Olympia and the planned refurbishment and future operations at the facility as outlined in the report;

(ii) to delegate the Head of Design and Property and the Director, Leisure and Culture to finalise and implement a strategy for periodic closures as standard practice for future years' operation and maintenance of the Olympia facility; and

(iii) that the report be submitted to a meeting of the Scrutiny Committee.

III TENDER RECEIVED BY HEAD OF DESIGN AND PROPERTY - OLYMPIA REFURBISHMENT

There was submitted Report No 151-2022 by the Executive Director of City Development, detailing a tender received and seeking approval on acceptance thereof.

The Sub-Committee agreed:-

(i) to accept the tender submitted by Robertson Construction Tayside Ltd as set out in the report, with the total amount, including allowances detailed in Appendix 1 of the report;

(ii) to approve the additional works as part of the contract to remove thin-walled carbon steel pipes within the facility, as set out in the report; and

(iii) that the additional cost of the works be met by using 767k included in the Capital Plan for Contingent COVID-19 Capital Expenditure and 896k from the Renewal and Repair Fund.

IV TENDER RECEIVED BY HEAD OF DESIGN AND PROPERTY - NEW YOUNG PERSONS HOME, SOUTHAMPTON ROAD

There was submitted Report No 191-2022 by the Executive Director of City Development, detailing a tender received and seeking approval on acceptance thereof.

The Sub-Committee agreed to accept the tender submitted by Robertson Construction Tayside Ltd as set out in the report, with the total amount, including allowances detailed in Appendix 1 of the report.

Willie SAWERS, Convener.

At a MEETING of the RECESS SUB-COMMITTEE held remotely on 1st August, 2022.

APPENDIX III

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, Convener, in the Chair.

Unless marked thus * all items stand delegated.

The Convener agreed that the undernoted items of business be considered as a matter of urgency in terms of Standing Order No 17(b) in view of the timescales involved.

I DECLARATION OF INTEREST

There were no declarations of interest.

II UK SHARED PROSPERITY FUND AND MULTIPLY FUND - PROPOSED DELIVERY APPROACH

There was submitted Report No 196-2022 by the Executive Director of City Development providing an update on the development of the investment plan for the UK Shared Prosperity Fund (UKSPF), the UK Governments replacement for EU Structural Funds. This included Multiply, a new programme focused on adult numeracy. The report outlined proposals for the development of the required Investment Plan for Dundee including new governance and delivery models. Given the timescales set out by UK Government, the report was seeking approval to delegate authority to the Executive Directors of Corporate Services and City Development to complete and submit the Plan by the required deadline and to make amendments as required in response to feedback to UK Government.

A summarised version of the report was detailed at Appendix 1 of the report.

The Sub-Committee agreed:-

(i) to note the requirement for the preparation of an Investment Plan for UKSPF for Dundee and approved the priority interventions identified in conjunction with partners and stakeholders as set out in Appendix 1 of the report;

(ii) to delegate authority to the Executive Directors of Corporate Services and City Development to progress the development, submission and implementation of the Investment Plan in discussion with UK Government and other City stakeholders; and

(iii) to remit the Executive Directors of Corporate Services and City Development to submit an Annual Report on progress of delivery of the Investment Plan to the City Development Committee.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted item of business on the grounds that it involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 9 of Part I of Schedule 7A of the Act.

III LEVELLING UP - REQUEST FOR SUPPORT

There was submitted Report No 195-2022 by the Executive Director of Corporate Services briefing members on a request by an organisation for the City Council to submit a Levelling Up Fund Round 2 (LUFR2) application on their behalf.

The Sub-Committee agreed to the recommendations as detailed in the report.

John ALEXANDER, Convener.