Agenda item

To consider the report of the Head of Scrutiny and Member Development and appended reports which present information for Session 2 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)

The Directors of City Development and Environment & Neighbourhoods submitted reports to Session 2 of the Inquiry providing updated information on a number of developments where the use of the S106 obligations had secured employment/training opportunities for local people and supply chain opportunities for businesses. The reports also identified how this approach could be maintained and strengthened through closer working between the relevant services and early engagement of developers.

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

Ms Wynne introduced the report which clarified the methodology of the current practice. The report had been presented to the Planning and Developers Forum on 25 January 2012

Mr Sellens reported that Forum attendees had generally welcomed the authority’s approach. The paper had also been discussed at the Planning Joint Member/Officer Working Group which had supported the approach but commented on the following:

-  the trigger for schemes with the potential to provide employment training opportunities during construction/end uses without placing unnecessary burden on the developer as being

o  retail developments over 2,000sqm

o  residential developments over 250 units. JMOWG suggested this threshold should be 100 units

o  construction sites over 10,000 sqm

-  the definition of “local people”. JMOWG supported the ward based approach to this term

The Board considered that large developments having a direct impact on a locality should benefit the residents of the affected wards. Members did acknowledge that some developments would seek regional/national employees or realistically bring some staff to a newly established base, but LCC would work with those residents furthest away from the employment market, providing links to jobs/skills to make them job ready, to enable them to access jobs.

(Councillor Cohen rejoined the meeting at this point)

It was also acknowledged that there were a number of skilled workers seeking employment who were not eligible for LCC assistance; however a specialist firm providing advice/skills marketing had been appointed by Job Centre Plus.

The Board also discussed the impact of the introduction of the Community Infrastructure Levy and how this would operate in conjunction with S106 planning obligations to secure affordable housing and provide jobs & skills and employment.

(Councillor Lyons left the meeting at this point)

Philippa Toner addressed procurement issues and explained that higher profile contracts awarded by LCC sought to reference local services. The report set out those regulations that informed the Councils contract process and requirements and highlighted the legal challenges LCC could face.

The Board noted that a “toolkit” was being prepared in conjunction with LCC Jobs & Skills, to target skill sets; and the Procurement Unit was reviewing all LCC major contracts to assess whether the general approach of local purchasing/employment/training could be incorporated without subjecting LCC to risk of challenge. Consultation with current contractors had been undertaken and the Board requested that the outcome of that review be presented at the 3^rd inquiry session in February.

The Board discussed:

-  the guidance available and sharing of best practice between local authorities, whilst noting that Leeds’ policy had to be tailored to Leeds own economic/business situation. The Social Responsibility Bill was expected to provide authority’s with clarity.

-  Members requested the draft toolkit and policy be brought to the 3^rd session of the inquiry in February if suitably ready for consideration prior to it being presented to Executive Board for approval

-  the £100k threshold set for local procurement trigger in line with contract procedure rules/processes with the same trigger and requiring senior staff to manage. 110 contracts had been awarded in 2010/11 which fell within that threshold, but it was not possible to calculate how many jobs those contracts had brought.

(Councillor Matthews left the meeting at this point)

-  the strategy being developed for suppliers with multiple contracts which could “bundle” contracts with suppliers to achieve savings and could link to jobs & skills

-  the proposal to undertake a 6 monthly review of contracts in conjunction with Jobs & Skills

The Board commented that research on major applications and numbers of jobs directly arising; and an indication of the benefits brought to the city from the council awarding contracts of £400m last year would be beneficial. It was noted that that type of assessment was not currently in place but examples could be presented of larger developments such as the PFI schemes or the Arena where that approach had been adopted.

RESOLVED – To note the contents of the reports and

a)  To note the request for examples of good working practice with employers and contractors be presented to Session 3 of the Inquiry

b)  To note the planned work to support the dissemination of information and closer working between services and the early engagement of developers

c)  To note that the guide “Buying into Communities - jobs, skills and business opportunities from council contracts” recently launched by the Local Government Association will be made available to members and Senior officers via the Councils intranet in an effort to equip them with the knowledge to provide leadership to the delivery of community benefit through procurement

d)  To note the intention to develop a toolkit, including guidance and training, to ensure all necessary factors are appropriately addressed, and relevant legislation complied with when assessing the employment and skills opportunities suitable for particular contracts

e)  To request that the draft toolkit/policy be presented to the Board for comment at the appropriate time if possible prior to its submission to Executive Board for approval

f)  To support the recommendation that employment and skills opportunities should be assessed for every contract valued in excess of £100,000 and included in the tender documents where appropriate, with further work being undertaken to identify additional opportunities with suppliers who hold a number of contracts which cumulatively exceed £100,000

g)  To request that the outcome of the consultation undertaken with contractors be presented at Session 3 of the Inquiry

h)  To request a progress report be presented to the Board in 12 months time