Agenda item

To consider the report of the Director of Resources and Housing setting out the background to the proposed establishment of a trading company, with a business case to support that which has already been approved in principle by the West Yorkshire Joint Services Committee. The report seeks approval for Leeds City Council to participate in that company.

The Director of Resources and Housing submitted a report setting out the background to the proposed establishment of a West Yorkshire Joint Services trading company. Appended to the submitted report was a business case to support the proposal which had been approved in principle by the West Yorkshire Joint Services Committee.

Responding to a Member’s enquiry, the Board was provided with further information and assurance regarding the level of political oversight that Members would have on the operation of the trading company, in addition to any associated tax liabilities.

As part of such assurances, should the trading company be established, it was proposed that an annual update report on the performance of that company be submitted to Executive Board in order keep the Board informed on such matters.

RESOLVED –

(a)  That the legal position, as set out in Appendix 1 to the submitted report, be noted, in particular that the company will be a controlled company for the purposes of the Local Government and Housing Act 1989;

(b)  That it be noted that the Council will provide an indemnity to its appointed representative, under the terms of The Local Authorities (Indemnities for Members and Officers) Order 2004;

(c)  That the Business Case, as detailed at Appendix 2 to the submitted report, which is in support of the proposal to trade through the establishment of a trading company, be approved;

(d)  That approval be given to the formation of a Holding Company, to be limited by shares wholly owned by the founding members of the West Yorkshire Joint Services Committee, (i.e. Bradford, Calderdale, Kirklees, Leeds and Wakefield) which will protect the business of the West Yorkshire Joint Services Committee; and to 4 subsidiary companies for Materials Testing, Calibration Services, Archaeological Services and Business Hive, to be owned by the Holding Company;

(e)  That approval be given to the Council being involved as a shareholder in the West Yorkshire Joint Services Trading Company and its’ subsidiaries, on the basis as set out within the submitted report;

(f)  That approval be given for the Council to participate as Directors of the Company on the basis, as set out within the submitted report;

(g)  That the proposed governance and funding arrangements for the company, as set out within the submitted report be noted and agreed;

(h)  That approval be given to participate through a shareholders agreement, on the terms as set out in draft in the submitted report, and that the City Solicitor be authorised to agree final terms and execute the agreement on behalf of the Council which should be on the same basis as the contribution rates payable to West Yorkshire Joint Services;

(i)  That the necessary authority be delegated to the City Solicitor in order to agree terms and enter into an agreement with the other 4 constituent authorities to indemnify Wakefield Council against any loss incurred as a result of making a working capital and investment loan to West Yorkshire Joint Services HoldCo up to a value of £1m, with the terms of such indemnity to be on the basis of each Council’s contribution rate to West Yorkshire Joint Services;

(j)  That an annual update report on the performance of the trading company be submitted to Executive Board, in order keep the Board informed on such matters.

(Under the provisions of Council Procedure Rule 16.5, Councillor A Carter required it to be recorded that he voted against the decisions referred to within this minute)