Agenda item

To consider the report of the Head of Scrutiny and Member Development and appended reports which present information for session three of the scrutiny inquiry on key mechanisms through which developers and contractors are engaged and identifies how these could be embedded within a more consistent approach to increase the opportunities for local people and local businesses.

(Report attached)

Further to minute 51 of the meeting held 26^th January 2012, the Director of Environment and Neighbourhoods submitted a report to Session 3 of the Inquiry on the proposed approach for the monitoring and review of the delivery of employment and skills obligations

Sue Wynne - Chief Officer; Employment & Skills, Philippa Toner – Senior Executive Manager, Public Private Partnership Unit and Martin Sellens, Head of Planning Services attended the meeting. In brief, officers highlighted :

-  the need for implementation of the obligations to be transparently monitored and reviewed and the benefits this approach would bring

-  feedback from the consultation with suppliers which showed general support for the proposed approach - if appropriate performance targets and associated remedies for non-compliance were determined prior to signing the contract and detailed in the contract documents, the process was not too bureaucratic/expensive and obligations were dealt with on a contract by contract basis

-  the difference between S106 financial obligations and jobs & skills obligations and the engagement process  with developers

-  the Director of Resources had considered the financial implications and risk to the authority of jobs and skills obligations being formalised within the thresholds previously discussed and was supportive of the initiative. 

The Board made the following comments

-  S106 jobs & skills obligations should be more robustly pursued as there was concern that there appeared to be no redress if a developer did not fulfil those obligations. Members noted the response that every employment plan attached to a planning permission now contained clear targets however City Development acknowledged that measures to deal with failure to meet obligations were required

-  reports to Plans Panels should include reference to the “track record” of an applicant/developer in meeting S106 obligations attached to previously approved schemes/phases of the same scheme

The Board welcomed representatives of external organisations to the Session:

Debra Hyams Tesco Stores PLC – gave evidence on the working relationship established between Tesco and the Leeds Employment Team and highlighted the following:

-  LET was a useful tool for employers who needed to know local skills base

-  Some new developments were developer led with the end user not being involved in the initial plans and negotiations; therefore the jobs & skills requirements may not be those the end user could fulfil

-  Would welcome flexible employment and skills obligations as a target for the company to aim towards.

Janet Spencer Leeds Housing Concern – gave evidence as a representative of a charity providing housing and assistance to the most vulnerable groups. LHC had participated in the consultation undertaken by LCC and highlighted the following:

-  The suggested approach would lend weight to the informal arrangements currently in place by which LHC and similar organisations provided assistance to their client group to gain education and employment through an in-house training programme and work experience for social work and health care students

Having thanked all attendees for their contributions to the Inquiry and being satisfied with the information presented; the Board made the following initial recommendations:

1. To support the production of a policy framework and charter to bring consistency in approach and enable external bodies to be clear on the Councils expectations. Consultation with stakeholders should be sufficiently undertaken to inform this process.

2. Clear guidance and information must be available and provided to those parties on which jobs and skills obligations are imposed.

3.  To develop a toolkit for consistent implementation. This should also be supported by staff training. The toolkit should ensure that efficient processes are in place to ensure there is no duplication of effort by planning and procurement where both are involved in a particular venture.

4. A review of operational procedures in Planning and Procurement to ensure that there is a documented process flow which demonstrates that the Employment and Skills team have been alerted to each and every opportunity that meets defined criteria at an early stage, including pre-application meetings.

5. Ensure robust monitoring

6. Ensure pockets of best practice are identified and adopted across the Authority

7. Ensure opportunities, skills and employment are targeted to local unemployed and NEETS

8. To recommend the following thresholds –

Additionally, Members sought further investigation of

-  The appropriateness of introducing an “obligation bond”. An amount to be retained/levied should a developer not fulfil the obligations set out in a Section 106 Agreement

-  Separate Scrutiny work into Section 106 financial obligations, to cover the amount of time taken for financial and non financial obligations to be met/paid and actions taken to recover and enforce obligations.

RESOLVED – That the contents of the report and the comments of the Board on the proposed approach to the monitoring and review of the delivery of the employment and skills obligations through the council’s procurement and planning functions as detailed above be noted