Agenda and minutes

Apologies were received from Councillor T Williams.

Members are asked to consider any pecuniary and non-pecuniary interests they may have to disclose to the meeting in relation to matters under consideration on the agenda.

None received.

RESOLVED: That the Minutes of the meeting held on 28 September 2016 be confirmed as a correct record and signed by the Chairman.

The report set out the Authority's borrowing and lending activities during 2016/17, which were in line with decisions taken during the year to date, based on anticipated spending and interest rates prevailing at the time.

In accordance with the updated CIPFA Treasury Management Code of Practice (2011) and to strengthen Members’ oversight of the Authority’s treasury management activities, the Resources Committee received regular updates on treasury management issues including a mid-year report and a final outturn report. Reports on treasury activity were discussed on a quarterly basis with Lancashire County Council Treasury Management Team and the Authority's Director of Corporate Services and the content of these reports was used as a basis for this report to the Committee.

Economic Overview

The economic position and future outlook had been significantly influenced by the vote to leave the EU in the referendum on 23rd June 2016. This led to many economic commentators reducing their forecasts of economic growth. The risk of reduced growth was judged by the Bank of England to be severe, prompting the Monetary Policy Committee to initiate substantial monetary policy easing at its August meeting to mitigate the worst of the downside risks. This included a cut in Bank Rate to 0.25%, further gilt and corporate bond purchases (QE) and cheap funding for banks to maintain the supply of credit to the economy. Although the impact of the vote to leave the EU was highly speculative it was likely that the uncertainty on future trade relations would impact on growth and future reduction in rates were possible.

During the first part of the financial year the economy had grown. The first estimate of Q3 GDP released by the ONS showed the UK economy growing by 0.5% over the quarter and 2.3% year-on-year. Both of these figures were slightly above market expectations. The Q2 growth rates were growth of 0.7% over the quarter and 2.1% year on year.

The period had seen some change in inflation. Following BREXIT there had been a fall in the value of sterling which along with the near doubling in the price of oil in 2016 had combined to drive inflation expectations higher. Twelve-month CPI inflation had increased by 0.4% to 1.0% in September. The Bank of England was forecasting that Consumer Price Inflation would breach its 2% target in 2017, the first time since late 2013. However, the rise in inflation was highly unlikely to prompt monetary tightening by the Bank of England, with policymakers looking through import-led CPI spikes, concentrating instead on the negative effects of Brexit on economic activity and, ultimately, inflation.

The impact of the new government may also impact on economic conditions. After six years of fiscal consolidation it was seen as likely that the Autumn Statement would include fiscal initiatives to support economic activity.  This was most likely to be in the form of infrastructure investment although tax cuts or something similar could not be ruled out.

Interest Rate Environment

Short term interest rates continued at the very low  ...  view the full minutes text for item 32/16

The report set out the current budget position in respect of the 2016/17 revenue and capital budgets and performance against savings targets. 

Revenue Budget

The overall position as at the end of October showed an under spend of £1.4m.  The current underspend was the result of the Authority continuing to monitor variances for emerging savings opportunities which would be reflected in the forthcoming budget setting process.

The Committee was provided with detailed information regarding the position within individual departments, with major variances being summarised below: -

Members were aware from previous papers that following an extended period of no wholetime recruitment, in light of the financial challenges and reductions in establishment, the Service had now embarked on a wholetime recruitment campaign for 2016/17 with a target of up to 30 individuals.  It was the intention to continue recruitment in future years to address future requirements; matching the leaver profile and organisational changes.  This report outlined the outcomes and lessons to be taken forward into future campaigns.

The Authority had endorsed considering expressions of interest from RDS staff first before full external recruitment providing that the individuals met the required Point of Entry Selection Test (POEST) standard as a one off. 

In view of the significant changes in the demands and role of a firefighter since the previous recruitment, the whole process needed to be refreshed.  The processes and criteria that have emerged meant that the ability of our existing RDS workforce to meet the criteria needed to be relaxed to recognise their current position, experience and commitment.

The process that was implemented resulted in 27 of the RDS individuals meeting the criteria and being offered positions in the wholetime duty system. A further 5, whilst meeting the POESTs, gave a degree of concern in respect of their ability to meet the immediate onerous demands of the initial training, so they have been advised in respect of addressing their stamina and strength issues and would be included in the next cohort of new entrants.  The other RDS candidates, that for various reasons have not met the wholetime standard, have been offered feedback and advice on where they need to improve their performance.  This outcome was a significant improvement on a similar exercise undertaken in 2008.

Having a single standard was understood within the Service and provided re-assurance to whole-time staff and the representative bodies that standards were not being compromised.  The approach taken for RDS staff was they would be assessed against the required criteria.  However in terms of the additional criteria identified, possible relaxation was allowed where they could demonstrate an ability to undertake that element in their existing role.  The single standard and person specification would now be used for future campaigns.

In response to a question raised by CC Terry Aldridge, the Director of People and Development confirmed that the training programme for new wholetime recruits was 12 weeks whilst RDS staff who had been successfully recruited had 2 weeks of training followed by further on the job training and training on breathing apparatus.  For this group transferring a 4 week conversion course had been devised to bridge the gaps in knowledge.

Adopting a transfer process for RDS had not had and would not have any impact on the need to have a representative workforce.  The catchment area for RDS appliances also limited the potential to become a more representative employer.  It was for this reason that the Service was embarking on positive action activity as part of the twin track approach prior to  ...  view the full minutes text for item 34/16

OHSAS 18001 and ISO 14001 were international best practice standards for how organisations managed Health & Safety and the Environment.  The specifications gave requirements for an occupational health and safety / environmental management system, to enable an organisation to control its risks and improve performance. 

In 2011 Lancashire Fire and Rescue Service (LFRS) was successful in certification to ISO 14001 the International Standard for Environmental Management Systems and OHSAS 18001 the Health and Safety Management System standard.  Each year surveillance audits were carried out to ensure that the standards continued to be adhered to and to ensure continuous improvements were made. Every three years LFRS had to apply for re-certification to maintain the standards.

Subject to the successful closure of two non-conformances, one for OHSAS 18001 Health and Safety and one for ISO 14001 Environmental, both standards were recommended for continued clarification.  To achieve and maintain these standards at the same time clearly demonstrated that robust systems were in place for both Health and Safety and the Environment.

As part of the audit process, the auditors identified a number of positive aspects, including:

·        “Good compliance to the systems in place has generally been demonstrated throughout the audit”

·        “New format risk assessments are giving more information, focussed and effective as well as easy reading.”

·        “LFRS have carried out a full and detailed review “Preparing Public for Own Emergencies” prompted by recent flooding events but clearly considering a much wider scope.”

·        “A review of training was conducted with readily available records on PDR-Pro to demonstrate Firefighters are trained and maintained in these activities.”

·        “Risk assessments and Environmental Risks were clearly understood at the station.”

·        “It was very clear that Property records were readily available demonstrating a good understanding of the needs to apply controls and demonstrate this.”

·        “A clear selection process is now in place and being rolled out to all contractors used by LFRS.”

As part of the audit, a number of additional areas for improvement were identified and it was intended that all these were developed into an ‘improvement action plan’ and taken forward through the Service’s Health, Safety and Environment Advisory Group.

RESOLVED: - That the Committee note and endorse the report.

The next meeting of the Committee will be held on 29 March 2017 at 10:00 am in the Main Conference Room at Lancashire Fire and Rescue Service Headquarters, Fulwood.

Further meetings are: scheduled for: 28 June 2017 and 27 September 2017.

                                       proposed for: 29 November 2017.

The next scheduled meeting of the Committee was agreed for Wednesday 29 March 2017 in the Main Conference Room, Service Headquarters, Fulwood, commencing at 1000 hours.

Further meeting dates were noted for 28 June 2017 and 27 September 2017 and agreed for 29 November 2017.

The Committee is asked to consider whether, under Section 100A(4) of the Local Government Act 1972, they consider that the public should be excluded from the meeting during consideration of the following items of business on the grounds that there would be a likely disclosure of exempt information as defined in the appropriate paragraph of Part 1 of Schedule 12A to the Local Government Act 1972, indicated under the heading to the item.

RESOLVED: - That the press and members of the public be excluded from the meeting during consideration of the following items of business on the grounds that there would be a likely disclosure of exempt information as defined in the appropriate paragraph of Part 1 of Schedule 12A to the Local Government Act 1972, indicated under the heading to the item.

Members considered a report that provided an update on all contracts for one-off purchases valued in excess of £50,000 and high value procurement projects in excess of £100,000 including: new contract awards, progress of ongoing projects and details of new projects with an anticipated value exceeding £100,000.

Members discussed the progress in relation to the ongoing procurement project for Lancaster Fire Station and agreed for the Director of Corporate Services to negotiate the best value for the purchase of land for car parking.

RESOLVED:  That the Committee: -

i)             note and endorse the recommendations as outlined in the report and;

ii)                   agree for the Director of Corporate Services to negotiate the best value for the purchase of land for car parking at Lancaster Fire Station.

The Director of People and Development presented a report to Members on the circumstances relating to a request for extension of full sick pay.

RESOLVED: - That the Committee endorse the recommendations as outlined in the report.

An item of business may only be considered under this heading where, by reason of special circumstances to be recorded in the Minutes, the Chairman of the meeting is of the opinion that the item should be considered as a matter of urgency.  Wherever possible, the Clerk should be given advance warning of any Member’s intention to raise a matter under this heading.

The Director of Corporate Services tabled a 2016 Actuarial Valuation report which showed preliminary results that analysed a change in the funding position of the Pension Fund.  Options would be presented to the Authority as part of the budget setting process.

RESOLVED: - That Members noted the content of the report.