Agenda item

Consideration was given to a report updating Members on the Commercial Strategy.

Councillor Sweeney stated that the Commercial Strategy had not changed.  It was a well written and clear Strategy.  A Commercial Investment Advisor had carried out a review and the recommendations from the review were set out at paragraph 2.8 of the report.  Sarah Wilkes advised that the Strategy had been approved in October, 2019 and that, due to Covid-19 some areas of work had been paused.  A Commercial Portfolio Review had been completed, looking at all Council assets and advising whether they were still useful to keep and actually generating income; whether anything better could be done with those assets and, looking at the planned maintenance of all of those assets.  Part of the work that was identified was that a Capital Planned Maintenance
Strategy be established and also that sustainable energy solutions be investigated.  Part of the Council’s ten year Capital Programme, which was approved by Council in February, contained the maintenance programme for those assets for the next ten years.  In addition, sustainable energy had been considered and the Council was exploring those areas such as solar panels and a boiler replacement programme which was included in the Capital Programme, and Carbon Management which were all works in progress.  As other areas were explored, they would be fed back to this Committee for comment.

Councillor Sweeney stated that the aim of this was to make the Council sustainable in the long term.

Councillor Hutton stated how pleased he was that, looking at assets, the Strategy looked at those giving a good return and disposing of those that were not.  The Council would want to be carrying out the best management practice possible.

Councillor Stubbs stated that the Council needed to ensure that it invested in local infrastructure as well as what was going to give the biggest return.  Councillor Stubbs referred to the first bullet point under paragraph 2.8 and said that he would like to know what was being considered for disposal and if such information could be brought to this Committee and similarly for the diversification of assets and investments.  He would not like for the Council to invest all of its money in stocks and shares, in London for example.  A spread portfolio would be preferred.   Councillor Stubbs asked for this to be a standing item on the agenda every six months to keep the Committee informed as to what was happening in the investment portfolio.

Councillor Sweeney agreed, stating that the fifth bullet point referred to the increased diversification of assets / investment base so that risk was spread across various sectors and geographies.

The Chair referred to paragraph 2.8 stating that all of the points seemed to be plausible but did seem to be intention.  One bullet point was to hold fewer and better assets and another to increase the diversification of assets.  The Chair asked Councillor Sweeney or Sarah Wilkes to give an example of an asset that the Council may not wish to hold or assets that the Council may wish to invest in.    Councillor Sweeney stated that the best example for investment was industrial units.  Sarah Wilkes stated that there was a waiting list for units and that was something that the Council would be looking to expand upon in the future, particularly with the impact of Covid and getting businesses back on their feet.  The Council had not got to the point of looking at disposing of any of the assets at present.  The Council was taking a prudent approach to take stock of what was happening at present and how this had changed the different businesses and organisations and how everyone was adapting to practices during and post Covid.

Councillor Paul Waring stated that the benefits of industrial units were twofold in that the Council received income from them and the units helped the Council to promote small businesses and this was needed in order to bolster energy in the private sector.

Resolved:     (i)         That the information be received and the update noted.

                        (ii)        That the Commercial Strategy update be placed on the

agenda as a standing item to be brought back to this

Committee on a regular basis.