Minutes:
The Committee scrutinised the
following matters:-
Cabinet Proposals
3.1 Ethical Employment in Supply Chain Policy
Members
received information on adopting the Welsh Government Ethical Employment in
Supply Chains Code of Practice.
Members
asked for reassurance that the Trade Unions would be included within the Neath
Port Talbot Ethical Employment in Supply Chain Policy as it was detailed within
the Welsh Government’s Policy. Officers confirmed that the Trade Unions were
detailed within the draft of the Policy at Point 9 of the Action Plan.
Members
asked whether there would be any workforce impacts from adopting this Policy
and were advised that there were a couple of elements within the document on
which Officers would require training. The Chief Executive highlighted that a
balance was required as the Policy could cause resource issues for the Council.
The
Cabinet Member explained to the Committee that the Policy is a further example
of our role as Corporate Parents.
Following
scrutiny, the Committee was supportive of the proposals to be considered by the
Cabinet.
3.1 Provision
of Loan Funding to Blaengwrach and Seven Sisters
Community Councils
(Cllr.S.K.Hunt re-affirmed his interest at this point and
withdrew from the Meeting).
Members
received information on granting a loan to Blaengwrach
and Seven Sisters Community Councils.
Members
raised concerns regarding the interest rate that was being offered and
therefore requested clarity. Officers explained that the loan was anticipated
to be for a short period and that the interest rate was slightly higher than
the bank base rate. Members were advised that should they wish to propose an
increase to the proposed rate this could be taken into account.
Members
asked why the two Community Councils did not use the facility within their
precept. Officers explained that the Community Councils would have to make the
payments for the Mining Themed Play area first before being able to recover the
VAT. As VAT is recovered Community Councils do not need to include VAT in their
Precept.
Members
asked why the Community Councils had not asked Welsh Government for a loan.
Officers explained that as the grant was coming from Welsh Government they
would not also provide the facility for a loan.
Members
were concerned that this proposal could set precedence for other Community
Councils to make similar applications to the Authority. They were advised that
all applications would be considered on their own merit.
Members
asked whether the Community Councils had spoken with the contractors prior to
applying for a loan as previously other Community Councils and Organisations
had been able to reach an agreement without requiring a loan.
Members
asked whether Groups or Organisations that did not have Community Councils
could request a loan under section 2 of the Local Government Act. At this point the Leader asked the Head of
Legal Services for advice as it was felt that the question raised could be
perceived as a personal interest and the issue of the Community Council loans
was the matter that should be considered today. The Head of Legal Services
agreed with this. The question was therefore dismissed.
Following
the discussion the Deputy Leader suggested that a Policy be produced in order
to have a clear and consistent approach for any future requests of a similar
nature.
Officers
suggested an amendment to the recommendation as concern was raised in relation
to the interest rate offered being too low. It was suggested that should the
bank rate increase by the time the Loan Agreement was signed then the interest
rate would increase by the same amount.
Members
were concerned that if interest rates were to increase dramatically would this
cause an issue for the Community Councils. Officers explained that if interest
rates were to increase by a quarter of a percent the increase in payment would
be small.
Following
scrutiny, it was agreed that Cabinet be asked to consider the following
recommendations:-
1.
That a maximum
loan of £37,000 to Blaengwrach Community Council
Limited at an interest rate of 1% for a maximum period of 15 months, be
approved, and should the bank base rate increase before the loan is taken out,
the interest rate would increase by the same percentage rise;
2.
That a maximum
loan of £156,000 to Seven Sisters Community Council at an interest rate of 1%
for a maximum period of 9 months, be approved, and should the bank base rate
increase before the loan is taken out, the interest rate would increase by the
same percentage rise;
3.
That delegated
authority be granted to the Director of Finance and Corporate Services (in
consultation with the Head of Legal Services) to enter into a loan agreement
detailing the arrangements between the Council and each Community Council as specified
above.