To consider the report and resulting action plan on the LGA’s peer review of the Council’s influence over the TDA and make recommendations to the Cabinet.

The Board considered the submitted report and action plan following the Local Government Association’s Peer Review of Torbay Council’s control and influence over the Torbay Economic Development Company Ltd (trading as TDA).  The Leader of the Council Councillor Steve Darling and the Cabinet Member for Economic Regeneration, Tourism and Housing Councillor Long provided the rationale behind the review.

The Chief Executive of the TDA, Steve Parrock, gave a presentation which provided background to the operation of the TDA and responded to key lines of enquiry which had been provided by the Board prior to the meeting.  The Board noted that the TDA and Council were supportive of the proposals and had already started to implement many of the recommended action points.

The Director of Place, Kevin Mowat who was the Client Lead for TDA explained the positive action taken to date to improve relationships and communication between the TDA and the Council.

The Interim Chief Executive, Anne-Marie Bond, advised that Members had referred to a Croydon report.  Mrs Bond explained that a Public Interest Report had been issued by Grant Thornton in respect of Croydon Council on 23 October 2020 as a result of their deteriorating financial position, significant pressure on children’s and adult services highlighted by their Auditors which had not been responded to, significant increased borrowing, concerns over the governance and oversight of investments, wholly owned companies and housing company.  Action 7 of the peer review included a review of all Council owned companies due to commence in July, in light of the Croydon report the Council was now working with the Local Government Association to see if this could be brought forward to January 2021.

The Board supported the positive steps proposed within the Action Plan, particularly those relating to Member development and training as they acknowledged the importance of ensuring that Members receive the appropriate training to enable them to carry out their roles effectively as well as the increased communication through briefings, newsletters etc.  They also welcomed the proposal to bring forward the review of the Council owned companies as they believed this was a key area for improvement.

Members discussed a number of issues in detail including:

·         TORVISTA and its registration as a housing provider;

·         governance and Companies House arrangements;

·         financial risks to the Council of TORVISTA and other subsidiary companies of the TDA;

·         teckal status and TDA delivering contracts on behalf of the Council as well as to external organisations; and

·         staffing and outcomes delivered by the TDA.

Resolved:

(i)         that the Local Government Association Peer Review Report (as set out at Appendix 1) and the resulting detailed action plan (as set out at Appendix 2 to the submitted report) be endorsed, subject to action 7 being brought forward to January 2021, if possible, in light of the issues raised in the Croydon report; and

(ii)        that the implementation of the action plan be monitored by the Overview and Scrutiny Board on a six monthly basis (unanimous).

(Note:  Councillor Barrand left the meeting during discussion of this item and returned prior to consideration of the recommendations.)