MINUTES OF A MEETING OF THE RESOURCES SELECT COMMITTEE HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON THURSDAY, 18 DECEMBER 2003 COMMENCING AT 9.35 AM

 

Present :

 

Mrs M J Lloyd (Chairman), Mrs B Lawson, Mr M J Cunningham, Mr J F Howe, Mr P D Joyce, Mr R G Mazillius (deputising for Mr K Pearson), Mrs M J Miller, Mr V J Morey, Mr R C Richards (deputising for Mr I R Stephens), Mr R A Sutton

 

Apologies :

 

Mr K Pearson, Mr G P Price, Mr I R Stephens, Mr D T Yates

 

Also Present (non voting) :

 

Mr R R Barry, Mr A C Bartlett

 

 

56.              MINUTES

 

RESOLVED :

 

THAT the minutes of the meeting held on 20 November 2003 be confirmed.

 

57.              DECLARATIONS OF INTEREST

 

Mr R A Sutton declared an interest in Minute 59 – Printing Procurement as he was related to the Print Unit Manager – and left the room.

 

58.              LOCAL GOVERNMENT ACT 2003 – COUNCIL TAX ON SECOND HOMES

 

(During the debate Mrs M J Miller declared an interest as the Chairman of Development Control Committee and Mr R A Sutton declared an interest as he was on the Board of South Wight Housing Association).

 

The Chairman welcomed Mr R Dickson of Hose Rhodes Dickson, Mr K Smith and Mr D Bottom of the Chamber of Commerce and Mr K Rivers an interested member of the public to the meeting.

 

The Select Committee were advised that the Executive had debated this item at its meeting on 3 December 2003.  The Executive had invited the Select Committee to recommend the level of discount on second homes and the date for implementation.

 

At present owners of second homes had a mandatory right to a 50% discount on Council Tax.  Regulations were to be introduced which would permit the discount to be reduced to as low as 10% with effect from April 2004.  Currently there were over 3,000 second homes on the Island with a potential income of approximately £1 million.

 

Mr R Dickson told members that the housing market in 2002 had been the strongest ever, but had levelled off during 2003.  He believed that prices had reached the point where massive increases were now unlikely and Government statistics showed that house process would remain level.  There was a lack of supply of homes at the


bottom end of the market with first time buyers having almost no chance of getting a foot on the property ladder.

 

He believed the Affordable Housing system on the Isle of Wight did not really work.  In recent months there had been a drastic fall off in the purchase of second homes, a point had been reached where it was now cheaper to buy abroad.  Mr Dickson did not think an increase would bring any more houses onto the market, although more properties may be let in August to help owners recoup their losses.  He told the Select Committee that many second home owners maintained their homes to a high standard, which assisted local employment.

 

Mr K Smith said second home owners should be contributing to the Islands economy and that it should not all fall on the indigenous population.

 

Mr D Bottom gave a brief history of how the Council Tax discounts had come into being.  He believed the downside was at the bottom end of the market as units were taken out of the local market.  Potential income for the local business community was reduced.

 

Mr K Rivers believed that second home owners should not be given massive discounts.  He believed that local communities were affected, in some cases causing the closure of local post offices, village shops and numbers attending local primary schools.  Second home owners made no commitment to the Island and he would like to see them penalised so that it was no longer an investment for them.

 

Mr M Pearl, Head of Housing for Social Services, advised the Select Committee that a recent Housing Needs Survey had shown there was a need to build approximately 1200 units per year to keep pace with demand.  Island house prices were static at the moment whilst in other areas in the south prices were going down.

 

Members believed there was a lack of affordable housing on the Island and that a rise in the Council Tax would not see many homes appearing for sale.  There may be more available for renting, but generally speaking they believed many people would pay the increase.  The Portfolio Holder advised members that although this year the extra income could be retained locally in future years it would become part of the FSS.

 

The Select Committee felt that any extra monies received should be kept separately and could be ring-fenced for the supply of affordable housing which was in line with Council Policy.  There was some discussion that second home owners could let out their homes and call it a business.  Members were advised that a property had to be available commercially for 140 days a year for it to qualify for business rates.

 

The Revenues and Benefits Manager advised members that there may be an increase in administration to start with, but that should level out, a rating revaluation was due in 2005.  He also told members that long term empty properties could now be charged up to 100% Council Tax.

 

Members suggested that Economic Development, Planning, Tourism and Leisure Services Select Committee should look at the affordable housing element of developments and the approach that should be taken on these.

 

The Chairman thanked the Stakeholders for attending the meeting and making a valuable contribution to the debate.

 

RESOLVED TO RECOMMEND TO EXECUTIVE :

 

(a)               THAT a 10% discount on Council Tax payable in respect of second homes be implemented with effect from 1 April 2004.

 

(b)               THAT any additional income received from this be ring-fenced for the supply of affordable housing on the Isle of Wight in line with Council Policy.

 

(c)               THAT 100% Council Tax be payable in respect of long term empty properties with effect from 1 April 2004.

 

(d)               THAT the Council, through the Local Government Association make a submission to Central Government to pursue policies to achieve equitable action to make more affordable homes available.

 

59.              PRINTING PROCUREMENT

 

(Mr R A Sutton left the room for the following debate).

 

The Compliance and Risk Manager reminded the Select Committee that at its meeting held on 23 October 2003, concern had been expressed with regard to the Council’s printing arrangements still not being met in the most cost effective way.

 

The Head of Corporate Policy and Communications had taken over the management of the Print Unit in April 2003.  At that time a strong edict was sent out advising staff that all printing orders should be sourced through the print unit.  Copies of all invoices for printing work were sent to the Print Unit Manager.  Although the Select Committee had recommended that any external printing undertaken was to be countersigned by the Print Unit Manager, the Head of Corporate Policy and Communications had not implemented this.  The Select Committee were extremely angry that their resolution had not been implemented and believed it was an insult to the Select Committee that this had not been done.  The Portfolio Holder indicated that he would implement the action requested by the Select Committee under his delegated powers as he considered that there were sound reasons for this.

 

The Select Committee asked if there was a policy for replacing the machinery in the Print Unit.  There had been a Consultant’s report in 2000 and members asked why the Head of Policy and Communications needed another one.

 

The Print Unit Manager advised the Select Committee that there was a renewals fund built into the pricing structure and there was currently £50,000 in that fund.  He told members that upgrades were looked at, as and when, rather than a renewal policy.  The printing side of the business was healthy, but this tended to subsidise the decrease of photocopying work.  He believed that there was a long term role for the Unit being more involved in the document imaging process.

 

The Print Unit Manager advised the Select Committee that a member of staff had left the Print Unit but had not been replaced.  Members were told that the Print Unit had previously been given the go ahead to advertise for a Modern Apprentice, but they had not been successful in employing anyone into that post.  When asked why he had not readvertised the Print Unit Manager told members he had not been given the go ahead to do this.

 

The Compliance and Risk Manager advised members that he would put robust plans in place and bring them back to the Select Committee.

 

RESOLVED :

 

(a)               THAT the recommendation ‘that all printing orders are to go through, and be countersigned by the Print Unit Manager’ taken at the Resources Select Committee meeting on 24 April 2003 be dealt with by the Portfolio Holder under delegated powers.

 

(b)               THAT a full report be brought back to the Select Committee’s 2 February 2004 meeting, which should include a further analysis of the balance between in-house and external printing.

 

60.              BUDGET MONITORING AS AT THE END OF NOVEMBER 2003

 

The Chief Financial Officer reported on revenue and capital expenditure for services within the Select Committee’s remit as at the end of November 2003.

 

The Community Partnership Manager advised the Select Committee that a letter of confirmation for SRB funding for Community Wardens had been received, but this was paid quarterly in arrears.

 

Members were still concerned that the underspend within the Policy Unit had still not been utilised.

 

RESOLVED :

 

THAT the Budget Monitoring report be noted.

 

61.              FORWARD PLAN

 

Members were made aware of items that appeared in the Executive’s Forward Plan for December 2003 to March 2004 for matters relating to the Resources Select Committee.

 

RESOLVED :

 

THAT the Forward Plan be noted.

 

62.              MEMBERS’ QUESTION TIME

 

Mr P Joyce asked a question in relation to accommodation for breast feeding mothers within County Hall.

 

Mrs B Lawson asked a question in relation to the training budget for members for 2005.

 

 

 

 

 

 

 

 

CHAIRMAN