Public Special Interest Report

NORTH EAST LINCOLNSHIRE COUNCIL MINUTES OF THE SPECIAL MEETING HELD ON

6th July, 2009

PRESENT: Councillor J. Colebrook (in the Chair) Councillors Bailey, Barber, Barker, Beasant, Bonner, Brookes, Burgess, Burnett, P. Colebrook, De Freitas, Dickerson, Eastwell, Elliott, Hocknell, Hornby, James, Khan, Kibble, Lincoln, Lowis, McCabe, Mills, Morland, Norton, D. Pickett, S. Pickett, Pidgen, Shaw, K. Swinburn, S. Swinburn, Vickers and Watkin.

OFFICERS: Tony Hunter Chief Executive

Marc Cole Executive Director, Regeneration Dr. Tony Hill Executive Director, Public Health Barbara Hughes Interim Executive Director of Children and Family Services Rob Walsh Executive Director, Business Services Elizabeth Lidster Head of Democratic Services – Business Services Jo Edwards Democratic Services Officer – Business Services Chris Thompson Macebearer

NEL.19 APOLOGIES FOR ABSENCE

Apologies for absence were received from Councillors Boylen, Colquhoun, Cracknell, Fenty, Jackson, Leak and Parkinson.

NEL.20 DECLARATIONS OF INTEREST

There were no declarations of interest by members in any item on the agenda for this meeting.

The Executive Director of Business Services declared his personal and prejudicial interest in NEL. 21, Public Interest Report, upon a question being asked relating to his role and vacated the Council Chamber during the question and the answer thereto.

NEL.21 PUBLIC INTEREST REPORT

Council considered a report from the Chief Executive on the Report issued by the District Auditor in the public interest on 24th June, 2009, pursuant to Section 8 of the Audit Commission Act 1998. This Public Interest Report (PIR) concerned the Council’s investments in Icelandic Banks. In accordance with the provisions of Sections 11 and 12 of the Act, the Council was required to consider the contents of the PIR and the recommendations.

Council also received the report of the review of the financial services of this Council undertaken by the Society of Local Authority Chief Executives (S.O.L.A.C.E) at the Council’s request, the Treasury Management Action Plan considered by the Audit Committee at its meeting on 30th April, 2009, and the Action Plan in response to the PIR.

The Mayor welcomed the District Auditor, Mr. Mark Kirkham, to the meeting and invited him to introduce his report. To enable this, the Mayor moved the suspension of Council Standing Orders governing speaking at Council meetings. This was seconded by the Deputy Mayor, and the Mayor put this motion to the vote. Upon a show of hands, the motion was declared carried and it was

RESOLVED – That Council Standing Orders be suspended to permit the District Auditor to address the Council and to answer any questions of clarification on the contents of the Public Interest Report issued on 24th June, 2009.

Mr. Kirkham introduced his report and set out the background context to its production, the role and responsibilities of elected members in the light of the media interest in the Council’s financial management, and his expectations of what will be done as a result to manage risk for the future.

Members were then given the opportunity to seek clarification from Mr. Kirkham on the contents of his report.

The Mayor thanked Mr. Kirkham for his attendance and his comments, and requested the reinstatement of Standing Orders. The mace was returned to the Council Chamber.

Members then debated the issues raised in the reports now submitted. The Leader of the Council pointed out that the seriousness of the issues raised was accepted by all, and he expressed his regret that the Council found itself in this position. Accordingly, he moved the recommendations following the receipt of the PIR now before Council for determination.

There was no denial of the issues by the Council, rather a full acceptance of them and agreement that they be addressed and put right. Many steps had already been taken following the independent review of financial systems undertaken by S.O.L.A.C.E.; there was an expectation by Cabinet that the measures identified would be followed to the letter.

Councillor Shaw moved an amendment in the form of an additional recommendation relating to confidence issues. This was deemed to be out of order at this particular meeting by the Monitoring Officer.

Councillor Vickers moved an amendment in the form of an additional recommendation as follows:

“That the Appointments committee be instructed to review the merging of the roles of Corporate Services and Law and Democratic Services, in open session wherever possible, and make recommendations to Council accordingly”.

Following debate on this amendment, the Mayor put the amendment to the vote. Upon a show of hands, the amendment was declared carried.

The mayor then put the four recommendations set out in the report of the Chief Executive to the vote. Upon a show of hands, the vote was declared carried and it was

RESOLVED –

(1) That the Public Interest Report be received and noted

(2) That the recommendations set out in the Public Interest Report of 24 June, 2009 be accepted.

(3) That the Action Plan in response to the Public Interest Report, as set out in Appendix 5 of the report now submitted, be approved.

(4) That the responsibility for monitoring the implementation of the Action Plan be delegated to the Cabinet and the Audit Committee respectively.

(5) That the Appointments committee be instructed to review the merging of the roles of Corporate Services and Law and Democratic Services, in open session wherever possible, and make recommendations to Council accordingly.

There being no further business, the Mayor declared the meeting closed at 7.18 p.m.