Agenda item

(NOTE: Councillor H.A.L. Evans, having earlier declared an interest in this item, left the Council Chamber, during its determination by the Executive Board)

The Executive Board, (further to minute 13 of its meeting held on the 27^th February, 2017) considered a report on proposals for the establishment of a Council Owned Local Housing Company (The Company) as a development vehicle to accelerate house building within Carmarthenshire to increase the supply of much needed additional homes, whilst creating jobs, training and apprenticeship opportunities, supporting the supply chain and delivering the Council’s regeneration ambitions. The Company would also compliment the continuing use of the Housing Revenue Account resources to commission new homes (where it was appropriate to do so) and would also support the Council’s Affordable Housing Commitment of March 2016 for alternative housing delivery options to increase the number of homes within the County.

The Executive Board was advised, that if endorsed, the Company would be wholly owned by the Council, would not involve the transfer of any of the Council’s existing housing stock, which would continue to be managed and maintained by the Council, or the TUPE (Transfer of Undertakings Protection of Employees) of existing staff.

The Executive Board was further advised that the report set out in detail the arrangements for establishing the Company and contained seven recommendations for its approval which included the arrangements for the appointment of five company directors, the preparation of a business plan for the approval of both the Board and the Council and the initial set up costs.

The report had been considered and endorsed by the Community Scrutiny Committee, at its meeting held on the 24^th November, 2017 with the added recommendation that the Executive Board give consideration to a suggestion that the Council receive a presentation on the completed Business Plan at the appropriate time.

Councillor John Prosser, in accordance with Corporate Procedure Rule 11.1 asked whether the proposed Council Housing Company, which was going to have five Directors, with only one council member being a director, would mirror the position in England and other Housing Companies and would it not be better, for scrutiny, if the Council adopted the same position as with its Pensions Committee and appointed three Council members as Directors on a cross party basis to be more representative, regardless of who was in power.

The Executive Board Member for Housing advised that as with all companies, the Board of Directors would be responsible for running the Company and have responsibilities to comply with company law. If the Board of Directors comprised a majority of council members, it could be seen as, and accused of being, a body governed by public law. In other words, it would look like local government and therefore would have to follow the rules of local government, including procurement obligations. It was important the aim of the Company was understood and the Directors had the necessary skills and vision to ensure its success. The Council would be the only shareholder, and the Board of Directors would be accountable to the Executive Board which could appoint and remove Directors as required.

In response to a supplementary question from Councillor Prosser, the Executive Board Member for Housing confirmed the Executive Board would be responsible for appointing the company directors and ensuring those appointed had the right skills, knowledge and expertise required to operate the company.

UNANIMOUSLY RESOLVED