POLICY COMMISSION MEETING

Meeting	Policy Commission for Safer Communities
Ref	Saf.PC.6/04/06
Date	6 April 2006
Time	18.00hrs
Place	Committee Room 1, County Hall, Newport
Purpose of meeting	Formal public meeting
Attendance	Commission	Cllrs David Williams (Commissioner); Henry Adams; Vanessa Churchman; Heather Humby; Susan Scoccia; Arthur Taylor; Diana Tuson
	Cabinet	Cllrs Barry Abraham
	Secretariat	Cllr David Pugh
	Officers	Mr Iain Donald; Mr David Holmes; Mr Rob Owen; Mr Andrew Shorkey; Mr Peter Ross; Ms April West;
	Other Members
	Stake holders / Experts
	Apologies
Agenda Items
1. To agree the evidence arising at the meeting held on 2 February 2006 (Paper A)	The notes of the previous meeting were agreed as a true record of the evidence received.
2. Declarations of interest	There were no declarations of interest.
3. VFM Exercise on the Future Management of the Crematorium: (a) Update from Cllr Arthur Taylor.	1. The submission of the Blue Paper would be deferred to 4 May 2006 to allow time for the further investigation of a number of outstanding issues. 2. Evidence had been received from leaders within the faith communities; further investigations had been undertaken into the promession process; a consultant had been engaged to review the position of the IW crematorium in the bereavement market; and legal advice had been sought regarding the establishment of a Charitable Trust.
(b) To receive evidence from Mr Rob Owen, Head of Consumer Protection.	3. Promession was an environmentally friendly option as there would be no mercury emissions as a result of this process. However, it was anticipated that this methodology would not be introduced in the UK for the next 10 – 15 years. 4. The crematorium’s cremators were installed in 1997. Their anticipated life-span was 15 years and they would thus need replacing in 2012 – at approximately the same time that emissions abatement legislation comes into force. 5. The crematorium manager was exploring the option of using two rather than three cremators. 6. Milton Keynes carries out 1600 cremations per annum using 2 cremators. The IW crematorium carried out 1340 cremations last year. 7. Replacing and abating 3 cremators would cost approximately £950k. This figure would be reduced to £600k if only 2 cremators were replaced and abated. 8. There was an increased risk to business continuity if the service relied on 2 cremators only. 9. The IWC is currently the 42^nd most expensive out of 250 operators in the country with respect to the cost of a cremation. 10. Medical references charges had increased by 150% and gas prices had/were increasing significantly. 11. The crematorium subsidised Bereavement Services maintenance activities to the sum of £200k per annum. 12. There were assets within the Bereavement Services portfolio that could be disposed of to raise funds. The crematorium lodge had been valued at between £220k and £250k. 13. Generally, praise had been received from funeral directors and faith leaders for Bereavement Services in the round. 14. It was noted that the crematorium building had been described as utilitarian and in need of modernisation. 15. In the current market the crematorium had an estimated sale value of £2 million. 16. There was currently a downward trend in the number of deaths on the Island and nationally. Last year there were 1340 cremations. It was estimated that two cremators could easily manage 1800 deaths per annum.
(c) To receive evidence from Mr Iain Donald	17. Currently the crematorium received its core revenue from cremations. Memorial sales were responsible for 7% of revenue received. 18. It was estimated that 35% of cremations resulted in a memorial sale. 19. There was scope to increase revenues from memorial activities including development of the baby area and ashes interment.
(d) To receive evidence from Mr David Holmes	20. A £2 million capital receipt for the sale of the crematorium might be attractive to the IWC. 21. If the crematorium were to be sold the IWC would need to find funds each year to fund the areas of bereavement services currently subsidised. 22. If the crematorium was sold to the private sector the IWC would lose any control over its running other than with respect to its legal duties regarding regulation. 23. Cremation prices could be increased significantly to levels amongst the highest in the country due to the monopoly status held be the IWC crematorium. The most expensive cremation in the country was in the region of £500. 24. It is estimated that death rates would significantly increase in 2012. 25. Budget neutrality has led to a lack of capital investment in crematorium. This lack of investment is not just related to the cremators. 26. The two most recently built crematoria in the UK were constructed with a single cremator. 27. If the crematorium were to operate with only 1 cremator due to technical problems during a period of high demand waiting times could become unacceptable to the public. During the flu epidemic in recent years there were capacity issues. 28. The number of interments on the Island would never cover the Bereavement Services funding shortfall. 29. Approximately 90% of funeral services on the Island are cremations. 30. No local authority in the UK has set up a trust to undertake Bereavement Services functions. 31. To establish a trust without knowledge of the potential pitfalls would be risky.