Policy And Resources Committee - 09/01/2023

At a MEETING of the POLICY AND RESOURCES COMMITTEE held remotely on 9th January, 2023.

Present:-

BAILIES

COUNCILLORS

The minute of meeting of this Committee of 5th December, 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) PERSONNEL APPOINTMENTS SUB-COMMITTEE - 7TH DECEMBER, 2022

(b) PENSION SUB-COMMITTEE AND PENSION BOARD - 12TH DECEMBER, 2022

The minutes of meetings of the above Sub-Committees, copies of which are appended hereto, were submitted and noted for information and record purposes (Appendices I and II).

III SCOTLANDS FUTURE

This item was placed on the agenda at the request of Bailie Sawers who asked that the Committee agree to ask that the Leader of the Council writes to the Prime Minister to request that the UK Government urgently works with the Scottish Government to facilitate a referendum on Independence.

Bailie Sawers, seconded by Councillor Tolland, moved that the Council notes the recent decision of the Supreme Court that the Scottish Government does not currently have the specific legal authority to hold a referendum on the matter of Scottish Independence.

Council further recognises that a clear democratic process for the holding of a referendum on matters deemed appropriate by the elected government of Scotland is in every individual, community, political party and governments interest, whatever the subject matter.

Further, we believe that it is a fundamental right of the population to choose their future and that this is core to any democratic society. The UK Governments continued refusal to allow a democratic, transparent and legal referendum on Independence, therefore, is a democratic outrage.

Council notes that the refusal for the holding of a referendum comes at a time of increasing support for Independence, Scotland-wide. It is also recognised that Dundee voted, by the largest margin of any Scottish local authority, to support Independence in 2014.

Recent events have seen a brutal economic strategy which has led to a decade of deeply damaging austerity imposed upon Scotland, by a Conservative Government that received just 25.1% of the popular vote. As democrats, we find this intolerable.

The Scottish Government has a clear electoral mandate. Council respects the right of every party to set out their ambitions and aspirations through the democratic process and to enact those ambitions, should they successfully form a government.

Council therefore asks that the Leader of the Council write to the Prime Minister to request that the UK Government urgently work with the Scottish Parliament to facilitate a referendum on Independence.

As an amendment, Bailie Keenan, seconded by Councillor McHugh, moved that that the Committee agrees that the Chief Executive should write to the First Minister of Scotland, Nicola Sturgeon MSP:-

(i) expressing the Councils significant concern on behalf of the people of Dundee at the current crisis in NHS Scotland and the Scottish Governments ongoing failure to address the crisis which is resulting in unnecessary suffering for patients and the unnecessary deaths of patients because of delays in diagnosis and treatment; and

(ii) calling for the plans to introduce a National Care Service for Scotland to be paused until the Scottish Government have properly gripped the current crisis in NHS Scotland.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Roberts and Sawers and Councillors Anderson, El-Nakla, Flynn, Hunter, Lynn, Rome, Short, Smith and Tolland, (15); and for the amendment - Bailies Keenan, Wright and Scott and Councillors Cruickshank, Finnegan, McHugh, McIrvine, Malone, Scullin and Shears, (10) - Bailie Macpherson and Councillors Coleman, Crichton and Duncan declining to vote - whereupon the motion was declared carried.

As a further amendment, Councillor Duncan, seconded by Councillor Crichton, moved that the Committee notes the motion in the name of Bailie Sawers, but agrees to take no action on the matter.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Roberts and Sawers and Councillors Anderson, El-Nakla, Flynn, Hunter, Lynn, Rome, Short, Smith and Tolland, (15); and for the amendment - Bailie Macpherson and Councillors Coleman, Crichton and Duncan (4) - Bailies Keenan, Wright and Scott and Councillors Cruickshank, Finnegan, McHugh, McIrvine, Malone, Scullin and Shears declining to vote - whereupon the motion was declared carried.

As a further amendment, Bailie Scott, seconded by Councillor McHugh, moved that in 2014 the people of Scotland voted decisively to remain part of the United Kingdom, and the Prime Minister has been clear that the UK Government will continue to respect the result of that referendum fully, so should the Scottish Government.

The last thing Scotland needs is the division and uncertainty another referendum would bring. The focus at this time should be on supporting our recovery from the pandemic and dealing with the day-to-day issues that matter to people. The Committee therefore agrees not to write to the Prime Minister about facilitating an independence referendum.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Roberts and Sawers, and Councillors Anderson, El-Nakla, Flynn, Hunter, Lynn, Rome, Short, Smith and Tolland, (15); and for the amendment - Councillors McHugh and Scott (2) - Bailies Keenan, Wright and Macpherson and Councillors Cruickshank, Finnegan, McIrvine, Malone, Scullin, Shears, Coleman, Crichton and Duncan declining to vote - whereupon the motion was carried and became the finding of the meeting.

IV CAPITAL EXPENDITURE MONITORING REPORT 2022/2023

There was submitted Report No 1-2023 by the Executive Director of Corporate Services appraising of the latest position regarding the Council's Capital Plan 2023/2028.

The Committee noted the latest position regarding the Council's Capital Plan 2023/2028.

V REVENUE MONITORING 2022/2023

There was submitted Report No 3-2023 by the Executive Director of Corporate Services, providing an analysis of the 2022/2023 projected revenue outturn as at 30th November, 2022 and the impact on the Councils overall balances position.

The Committee agreed:-

(i) to note that the overall General Fund as at 30th November, 2022 was projecting an underspend of 0.767m 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 30.993m and detailed in second column of Appendix A (and summarised in Appendix E) to 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 within the overall projection but was set out separately for information in Appendix B and paragraph 6.1 to the report;

(iv) to note that the Housing Revenue Account (HRA) as at 30th November, 2022 was projecting an overspend of 1.700m against the adjusted HRA 2022/2023 Revenue Budget and the impact this had on the element of the projected Renewal and Repair Fund balance earmarked to HRA;

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

(vi) that the Council Leadership Team continued to take every reasonable action to ensure that the 2022/2023 revenue expenditure in accordance with the agreed Medium-Term Financial Strategy (Report No 257-2022 to the Policy and Resources Committee on 26th September, 2022, refers);

(vii) to note the key strategic, operational and financial risks being faced by the Council outlined in Appendix D to the report;

(viii) to note the current position on Leisure & Culture Dundee, as set out in paragraph 7.3 to the report; and

(ix) to note that the other inflationary pressures reserve had been reinstated to 3.800m.

VI LOCAL GOVERNMENT FINANCE SETTLEMENT 2023/2024 AND FINANCIAL IMPLICATIONS FOR THE CITY COUNCIL

There was submitted Report No 7-2023 by the Executive Director of Corporate Services providing details of the 2023/2024 Local Government Settlement, its implications for Dundee City Council and to recommend procedures for setting the Council Tax and budget for 2023/2024.

The Committee agreed:-

(i) to note the 2023/2024 Local Government Settlement and correspondence as detailed in Appendix B of the report;

(ii) to note the implications of the settlement for the Councils Revenue Budget and Capital Plan as detailed in the report;

(iii) to note that the financial information included in the report would be updated as necessary and included in the Revenue Budget and Council Tax 2023/2024 Report to be submitted to the Policy and Resources Committee on 23rd February, 2023;

(iv) to the procedures to be followed for setting the 2023/2024 Revenue Budget and Council Tax as set out in Section 7 and Appendix A of the report;

(v) that the City Council expressed its extreme disappointment with the budget settlement for local government and with its presentation which lacked consistency with a partnership approach;

(vi) to note that most of the headline 550m additional funding for local government was for existing commitments and that the 71m of uncommitted funding went no way towards meeting the identified budget gap in Council funding of 612m due to inflation, energy prices and demand pressures, and the requirement for more than 400m likely to be needed for pay settlements in the coming year to address recruitment and retention issues and avoid understandable industrial action by the trades unions;

(vii) to note that this budget settlement meant another massive real terms cut in Councils core funding, after more than 10 years of real terms cuts, and would lead to socially harmful cuts to vital local services;

(viii) to note the impact of inflation, the UK Governments mini-budget and global economic factors that continued to weigh heavily on budgets and the Scottish Government;

(ix) to make a robust public response to the budget statement, challenging in the strongest possible terms the presentation of the 550m as additional funding;

(x) that the Chief Executive should write to the President of COSLA, Councillor Shona Morrison, on behalf of the Council calling on COSLA to invite the Deputy First Minister to attend a special COSLA Leader's meeting to hear first-hand the concerns of Council Leaders;

(xi) that the Leader of the Council writes to the First Minister for Scotland, Nicola Sturgeon MSP, highlighting the massive real terms cut to Council funding and the impact this budget settlement would have on vital local services and on the most vulnerable in our communities; and

(xii) that the Chief Executive should write to the First Minister for Scotland, Nicola Sturgeon MSP, on behalf of the Council calling on the Scottish Government to consider pausing the current plans for structural change required to set up the National Care Service.

VII LOCAL NATURE RESERVE BOUNDARY AT RIVERSIDE NATURE PARK

There was submitted Joint Report No 6-2023 by the Executive Director of City Development and Executive Director of Neighbourhood Services, requesting approval for changes to the Local Nature Reserve boundary at Riverside Nature Park.

The Committee agreed:-

(i) to approve the de-declaration of the Inner Tay Estuary Local Nature Reserve within the Dundee City Council boundary; and

(ii) to approve the proposal to declare Riverside Nature Park as a new Local Nature Reserve and instruct the Executive Director of City Development to take forward the process of declaration.

VIII FUTURE OF FLOWER AND FOOD FESTIVAL

There was submitted Joint Report No 9-2023 by the Executive Director of City Development and Executive Director of Neighbourhood Services, seeking approval to take forward outlined recommendations.

Councillor Alexander, seconded by Councillor Flynn, moved:-

(i) that the Flower and Food Festival and virtual show did not continue in its current format. Subject to resources, an updated event is to be considered by City Development which has the lead for events for delivery in 2024 as part of a wider corporate events strategy. This would directly support the Council's key objectives as defined within the City and Council Plan, including Climate Action, Sustainability and the Environment; and

(ii) that a further report is developed for consideration of a future Committee in 2023, which clearly defines the budget, scope and particulars of the revised event.

As an amendment, Councillor Coleman, seconded by Councillor Duncan, moved that recommendations 2.1 and 2.2 be replaced with the following:-

2.1, Committee instructs officers to further investigate the viability of continuing the Dundee Flower and Food Festival in September, 2024 in its traditional format at Camperdown Park, including engaging with neighbouring local authorities on a possible partnership approach and investigating the possibility of new commercial sponsorship to ensure the financial viability of the festival.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Roberts and Sawers and Councillors Anderson, El-Nakla, Flynn, Hunter, Lynn, Rome, Short, Smith and Tolland, (15); and for the amendment - Bailies Keenan, Wright, Macpherson and Scott and Councillors Cruickshank, Finnegan, McHugh, McIrvine, Malone, Scullin, Shears, Coleman, Crichton and Duncan, (14) - whereupon the motion was declared carried and became the finding of the meeting.

IX LEISURE & CULTURE DUNDEE PERFORMANCE AND IMPACT REPORT FOR 2021/2022

There was submitted Report No 2-2023 by the Chief Executive providing the annual report for the financial year 2021/2022 setting out financial and performance information on Leisure & Culture Dundee to meet the guidance on Following the Public Pound.

The Committee agreed:-

(i) to note the contribution to the strategic priority themes in the Dundee Partnerships City Plan 2017/2026 as outlined in Appendix 1 to the report which was extracted from Leisure & Culture Dundees Annual Report; and

(ii) to note the performance across the range of services undertaken by Leisure & Culture Dundee in Section 5 to the report and as detailed in Appendix 2 to the report.

X COMPUTER AIDED DESIGN SOFTWARE

There was submitted Report No 10-2023 by the Executive Director of Corporate Services, on future contract arrangements for the provision and licensing of Computer Aided Design (CAD) software.

The Committee agreed:-

(i) to the renewed purchase of Computer Aided Design (CAD) software for a three year period; and

(ii) to remit the Head of Customer Services and IT to purchase CAD software and licenses from Insight Direct (UK) Ltd following a compliant procurement process using Crown Commercial Services Framework RM6068 (Technology Products and Associated Services) Lot 3 (Software and Associated Services).

John ALEXANDER. Convener.

At a MEETING of the PERSONNEL APPOINTMENTS SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held remotely on 7th December, 2022.

APPENDIX I

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, in the Chair.

Unless marked * all items stand delegated.

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 items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraph 1 of Part I of Schedule 7A of the Act.

I DECLARATION OF INTEREST

There were no declarations of interest.

II APPOINTMENT OF EXECUTIVE DIRECTOR, CHILDREN AND FAMILIES SERVICE

Reference was made to Article II of the minute of meeting of this Sub-Committee held on 2nd November, 2021, wherein it was agreed to appoint Ms Audrey May as Executive Director, Children and Families Service on an interim basis.

Following an exchange of views, and after hearing the officers, the Sub-Committee unanimously agreed to offer the post of Executive Director, Children and Families Service on a permanent basis to Ms Audrey May who intimated her acceptance.

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 12th December, 2022.

APPENDIX II

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 Donaldson and Arthur Nicoll.

III MINUTE OF PREVIOUS MEETING

The minute of meeting of 17th October, 2022 was submitted and approved.

IV RISK REGISTER

There was submitted Report No 332-2022 by the Executive Director of Corporate Services seeking approval for the Quarterly Risk Register for Tayside Pension Fund which was updated on 30th November, 2022, and noting the following changes to risk profile since the previous report:-

- Risk 1. Failure to process pension payments and lump sums on time

- Risk 16. Failure to keep pension records up-to-date and accurate

The risk likelihood for both of the above had increased as a result of increased volumes of cases of retiring/leaving members, coupled with recruitment challenges and training of new staff members.

- Risk 9. Failure of Investment Manager

The risk likelihood had increased as a result of current investment challenges and uncertain global economic environment. Whilst the Fund were long-term investors, portfolios remained closely monitored, with advisors also remaining vigilant and abreast of Investment Manager performance and strategies.

The Sub-Committee and Board approved the Quarterly Risk Register for Tayside Pension Fund, noting the revisions made.

V PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE TO 30TH SEPTEMBER, 2022

There was submitted Report No 333-2022 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.

VI TREASURY MANAGEMENT ACTIVITY 2022/2023 (MID-YEAR REVIEW)

There was submitted Report No 334-2022 by the Executive Director of Corporate Services reviewing the Treasury Management activities for the period 1st April, 2022 to 30thSeptember, 2022.

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

VII PROPOSED TIMETABLE OF MEETINGS FOR 2023

There was submitted Report No 301-2022 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2023.

The Sub-Committee and Board examined the dates set out in the timetable in Appendix 1 to the report and agreed the proposed programme of meetings.

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.

VIII TAYSIDE PENSION FUND

(a) PERFORMANCE SUMMARY

There was submitted Report No 335-2022 by the Executive Director of Corporate Services reviewing the investment performance of the Funds Investment Managers for the quarter to 30th September, 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 319-2022 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 1st July, 2022 to 30th September, 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 AS AT 30TH SEPTEMBER, 2022

There was submitted Report No 336-2022 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.

IX SOCIALLY RESPONSIBLE INVESTMENT

 

There was submitted Report No 337-2022 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 and Board (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 the report with regards to the activities of the Fund Managers during the six month period ended 31st March, 2022.

 

X ANNUAL ASSESSMENT OF INVESTMENT ADVISORY SERVICES 2022

 

There was submitted Report No 338-2022 by the Executive Director of Corporate Services providing information on the annual assessment of investment advisory service performance undertaken by Fund Officers as required by the Competition and Markets Authority.

 

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

 

XI PRESENTATION

 

Jeremy Podger and David Barbour from Fidelity gave a short presentation to the Sub-Committee and Board.

 

After Mr Podger and Mr Barbour had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members of the Sub-Committee and Board.

 

 

 

 

Willie SAWERS, Chair.