Agenda and minutes

Members are asked to declare any interests in the items under consideration and in doing so state:

(1) the type of interest concerned either a

(a)   personal interest

(b)   prejudicial interest

(c)    disclosable pecuniary interest (DPI)

and

(2) the nature of the interest concerned

If any member requires advice on declarations of interests, they are advised to contact the Head of Democratic Governance in advance of the meeting.

There were no declarations of interest on this occasion.

The Shareholder Committee agreed that under Section 100A of the Local Government Act 1972, the public be excluded from the meeting during consideration of Item 3 ‘Minutes of the last meeting held on 14 October 2022’ (restricted minutes only), Item 4 ‘Shareholder Committee Action Tracker’, Item 5 ‘Wholly-Owned Company Financial Performance as at Month 7 2022/23’, Item 6 ‘Shareholder Committee Update’, Item 7 ‘Blackpool Coastal Housing Annual Audit Report and Strategic Risk Register’, Item 8 ‘Blackpool Coastal Housing Update’, Item 9 ‘Blackpool Coastal Housing Performance Report’, Item 10 ‘Blackpool Housing Company Limited KPI and Financial Performance at Period 6 2021/22’, Item 11 ‘Business Case and Loan Report Update for the ZEBRA Programme’ and Item 12 ‘Concessionary Fares – Budget 2023/24’ on the grounds that they would involve the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Act.

To agree the minutes of the meeting held on 14 October 2022 as a true and correct record.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

The Committee considered the minutes of the last meeting held on 14 October 2022, noting that there was a public and restricted version.

The Committee agreed the minutes of the meeting as a true and correct record.

To consider the Committee’s updated action tracker.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

The Committee considered its action tracker and agreed to note the updates.

To report detailed information of the financial performance of each of the Council wholly-owned companies to the Shareholder Committee in line with decision EX26/2021).

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

Mr Steve Thompson, Director of Resources provided an overview of the financial performance of the Council’s Wholly-Owned Companies as at Month 7 2022/2023.

The Committee noted the update provided.

To receive a verbal update on the Council’s wholly-owned companies provided by the Shareholder representatives.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

Mr Antony Lockley, Director of Strategy and Assistant Chief Executive and Mr Steve Thompson, Director of Resources were invited to provide an update on the Council Wholly-Owned Companies on behalf of the Shareholder.

The Committee noted the updates provided.

Mr Andrei Szatkowski, Audit Committee Chair, Blackpool Coastal Housing to present the Annual Audit Report and Strategic Risk Register to the Shareholder.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

To receive an update on performance and key emerging issues.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

John Donnellon, Chief Executive and Councillor Neal Brookes, Chair of Blackpool Coastal Housing presented an update on key emerging issues for the company and the social landlord sector more generally. 

The Committee noted the update provided.

To receive an update on Key Performance Indicator (KPI) and benchmarking information.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

John Donnellon, Chief Executive, presented the key performance indicators to the Committee and the business plan for approval. The Committee noted that key performance indicators were broadly positive and noted the benchmarking data which provided comparative information with other social landlords. The Committee noted as explained at the May meeting in respect of voids where performance had been lower than anticipated a task and finish group had created to further investigate the issues and its report was anticipated shortly.

John Donnellon, Chief Executive and Stephen Dunstan, Director of Resources, Blackpool Coastal Housing Limited left the meeting at the conclusion of this item.

Councillor Neal Brookes as Chair of Blackpool Housing Company Limited remained in the meeting for the following item.

To provide the Shareholder with a progress update in respect of Blackpool Housing Company Limited and its subsidiary, Lumen Housing Limited.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

Paul Whitehead, Director of Finance and Resources - Blackpool Housing Company Limited joined the meeting at this point.

Paul Whitehead, Director of Finance and Resources provided an update on financial performance and key performance indicators for the period to September 2022. The information included was in respect of Blackpool Housing Company Limited and its subsidiary, Lumen Housing Limited.

The Committee noted the update provided.

To advise the Shareholder Committee of the outcome of the ZEBRA and BTS Board meetings held on the 28 November and 1 December 2022 regarding the electric bus replacement programme for Rigby Road.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

Mr James Carney, Finance Director, Blackpool Transport Services Limited (BTS),

Ms Jane Cole, Managing Director, BTS, Councillor Paul Galley, Chair, BTS and Mr James Clough, Business Analyst, BTS joined the meeting at this point.

The Committee considered a report on the Zebra programme and an associated loan request. It noted that the loan request had been recommended for approval by the Council’s Loans Panel.

Shareholder Committee decision:

1.      To formally endorse the ZEBRA programme as part of a joint initiative between the Council and Blackpool Transport Services Ltd for the conversion of the BTS bus fleet to zero emission electric power.

2.      To agree the recommendations from the ZEBRA Programme Board and BTS Board for the procurement of 115 vehicles and charging points on the basis of an operating lease for 105 vehicles over two initial procurement tranches and to decide upon the further 10 vehicles once operating conditions become clearer.

3.      To endorse the recommendation from the Council’s Loans Panel and approve BTS’s application to the Council for a loan of £8.0m for development of the Rigby Road depot site and electrical infrastructure purchase and installation as an enabling project for the fleet conversion.

4.      To note the financial implications for the company set out in the report and potential impact upon profitability and dividend to the Council. 

Reason for the decision:

The decision to proceed with the overall business case was supported for the following reasons:

a) Increasing diesel costs and the freezing of the subsidy on this fuel type.

b) The decision currently being taken by many main manufacturers of buses to reduce or cease the manufacture of diesel engines in the next 5 years.

c) The real potential of an increase in demand for public transport due to various regeneration schemes in the town centre in particular the relocation of office workers to the centre.

d) The climate emergency policy of the council to achieve net zero CO2 by 2030.

e) The availability of a grant to support the purchase (which may not be available once diesel vehicles are no longer available.

The decision to approve the application for a loan was based on the recommendation of the Council’s Loans Panel and that the application met the criteria outlined in the Council’s Business Loans Fund. 

Other options considered:

Paragraphs 5.7 to 5.29 of Appendix 10a to the agenda of the Shareholder Committee set out an analysis of the alternative options in terms of retention of the fleet and alternative procurement streams. 

Date of decision:

19 December 2022.

To request that the company is paid for concessionary travel in accordance with the Department for Transport guidance published 29 November for 2023/24.   The guidance is for these payments to be made by Travel Concession Authorities (TCA) at pre-pandemic levels to bus operators.  The decision is left to the discretion of TCA but the Department for Transport has expressed strong preference that this guidance be followed.

(This item contains commercially sensitive information which is exempt from publication by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

(The press and public were excluded prior to the consideration of this item as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972).

Shareholder Committee decision:

That consideration of the item on Concessionary Fares be deferred to a future meeting.

Reason for the decision:

The Committee considered that it would useful to further analyse potential options and consider the impact on the overall budget both of the Council and Blackpool Transport Limited in greater depth.

Other options considered:

The Committee considered that while it could make a decision at this meeting, it would not be appropriate to make a decision without exploring the full range of potential options and their implications for the Council and its companies.

Date of decision:

19 December 2022.

To note the date and time of the next meeting as Friday, 20 January 2023, commencing at 10am.

To note the date and time of the next meeting as Friday 20 January 2023, commencing at 10.00am.