103. MINUTES

RESOLVED :

THAT the Minutes of the meeting of the Executive held on 28 January 2004 be confirmed.

104. DECLARATIONS OF INTEREST

Interests were declared in the following matters:

Mrs T M Butchers declared a personal and prejudicial interest in Minute 107 – Fire Authority Integrated Risk Management Plan – Consultation Analysis and Amended Plan, as a member of her family was a firefighter.

105. PUBLIC QUESTION TIME

The Chairman agreed to take questions that related to the Fire Authority under the discussion of that item.

106. REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

(a) Revenue Support Grant Settlement and Budget 2004-5

The Portfolio Holder for Resources presented the latest budget position in relation to 2004/5, which incorporated the final revenue support grant announcement made on 29 January. The Executive indicated that they were keen to consider the outcome of all the consultation and considered that a decision on the budget should not be taken until all the results were known.

The Portfolio Holder advised the Executive that the Prudential Code, which would apply from 2004/5, meant that the Council would be given freedom to determine its own borrowing limits for capital investment, after applying a test of affordability.

RESOLVED :

(i) THAT any recommendation be deferred to a future meeting of the Executive, in order to leave more time to consider the views of Select Committees and late consultation results

(ii) THAT principles set out in paragraph 12 of the report in respect of new borrowings for investment be adopted

(b) Capital Programme 2004-7

Consideration was given to the Capital Programme and Treasury Management Strategy for 2004/7 together with the requirements of the new Prudential Code of Practice of Capital Finance. The Executive was informed that new rules would apply from April 2004 and would allow local authorities to decide their own borrowing limits.

Details of the allocation of the Supported Capital Expenditure that was applicable to 2004/5 were given and it was indicated in the report that failure to spend at those levels would have an impact on future supported borrowing in those service areas.

Recommendations from the Directors Group regarding capital expenditure through the Supported Capital Expenditure were considered. Capital bids, which fell outside Supported Capital Expenditure, were required to be funded from capital receipts with further priority bids being made should additional capital receipts be forthcoming. The Executive was advised to have a safety net of £2 million unsupported borrowing limit to cover any risk and temporary cash requirements arising from any possible delay in the realisation of capital receipts.

Mention was also made in the report of the acquisition of vehicles and plant by operating leases, as a means of reducing the pressure on other capital resources. Under the new Code, the Council could use both operating and finance leases as a means of acquiring assets.

RESOLVED :

THAT the Council be asked to approve the following recommendations:-

(i) That the borrowing levels as contained in paragraph 11 of the report be approved for capital investment and allocated to each respective Strategic Director for prioritisation, and subsequent approval by the Executive

(ii) That a contingency of £2million of unsupported capital borrowing be approved, for use only in the event of planned capital receipts not being received in the 2004/5 year

(iii) That the Council continue its programme of asset leasing, where it is economic to do so and where it can be supported through the Prudential Code

(iv) To approve the prudential indicators and limits as set out in Appendix A attached to the report

(v) That the recommendations for capital investment to be funded from capital receipts, as contained in Appendix B attached to the report be approved

(vi) That the Chief Financial Officer, be delegated responsibility for effecting changes between the ‘borrowing’ and ‘long-term liabilities’ elements of the authorised limit and operational boundaries for external debt

(vii) That the relevant Portfolio Holders be delegated authority to amend the Capital Programme as priorities may determine, in consultation the Portfolio Holder for Resources, relevant Directors and the Chief Financial Officer

(viii) That the Treasury Management Strategy for 2004/05, as set out in Appendix D attached to the report be approved

107. FIRE AUTHORITY INTERGRATED RISK MANAGEMENT PLAN – CONSULTATION ANALYSIS AND AMENDED PLAN

(Mrs T M Butchers declared a personal and prejudicial interest and left the room for the discussion of the item).

The Chairman agreed to take questions that had been received from the public before the beginning of the debate. During this, the Chairman was required to leave the room. The Vice Chairman took the chair.

Mr H McCloskey on behalf of Our Fire Service asked a question concerning the blue-light multi agency control centre (PQ02/04). A copy of the question and reply given is contained in the Public Question Register.

Mr G Jackaman on behalf of Our Fire Service asked a question concerning the receipt by members of the response documents from the Our Fire Service. The Portfolio Holder stated he would provide a written response (PQ03/04).

Two further oral questions were asked and the Portfolio Holder indicated he would provide a written response.

The Executive was advised that Fire Authority were required to produce an Integrated Risk Management Plan and associated Improvement Programme by 1 April 2004 in accordance with the timescales set out by the Office of the Deputy Prime Minister. Members considered the approval of the Plan following the outcome of consultation. Concern was expressed that the funding of the bids contained in the Plan could not be contained within existing budgets and discussion centred on whether or not approval should be delayed until the outcome of the budget was known.

RESOLVED :

THAT the approval of the Fire Authority Integrated Risk Management Plan be delayed until the budget process had been completed

108. TERMS OF REFERENCE AND MEMBERSHIP OF THE ISLAND STRATEGY GROUP (ISG) PLUS

The Chairman resumed the Chair.

(Mr G Kendall declared a personal interest, as he was a member of the proposed Island Strategy Group).

(Mrs J L Wareham declared a personal interest, as she was a member of the proposed Island Strategy Group).

The Portfolio Holder explained that the Chief Executives and relevant Directors of the Council and the Healthcare Trust and Primary Care Trusts on the Island had met in order to consider how the three authorities could work closer together. This group was known as the Island Strategy Group (ISG). A group had also been formed between the relevant Portfolio Holders and Chairmen of the Health Boards, which was known as Strategy Group (ISG) Plus group. It was now possible to put forward Terms of Reference and Membership of these groups.

RESOLVED :

THAT the terms of reference and membership of the Island Strategy Group Plus and the Island Strategy Group as set out in Appendix 1 of the report be approved

109. CHANGES TO THE CURRENT FORWARD PLAN

The Portfolio Holder informed members that the Early Years Development and Childcare Plan would be recommended to Full Council for approval by the Portfolio Holder under delegated powers. The Adult & Community Learning Three-Year Plan would go to the 10 March Executive in order to allow further time for consultation.

110. MEMBERS’ QUESTION TIME

Questions were put to the Chairman as follows :

Mrs J Wareham asked an oral question regarding Tetra Masts. The Leader confirmed that she was waiting a reply from the ODPM concerning possible health risks associated with them. The Head of Legal and Democratic Services confirmed that a letter would be sent to members of the Executive clarifying the current situation in relation to Tetra masts sited on Council owned land.

Mr J Effemey asked a question concerning Southern Water excavating parts of Princes Green, Cowes (MQ11/04). A copy of the question and reply given is contained in the Members' Question Register.

CHAIRMAN