Issue - meetings

Background:

This report reviewed the first trading year of Medway Norse and the plans for its second year of trading.

It was explained that Medway Norse is a joint venture company that was originally established in 2013 for the provision of facilities management services. The aim in establishing the joint venture was, and remained, that it would be considered as a potential delivery mechanism as part of any options appraisal for the delivery of Council services. It was also intended that financial growth would be achieved through winning external contracts and support for the local economy.

This review set out details of the governance arrangements, as well as details of how the scope of the operation had expanded over the year. This included additional grounds maintenance activities and Medway Norse taking responsibility for managing all Special Educational Needs transport.

It was noted that for the eight months of trading in 2013/2014 the Council had received a rebate of £285,000, which exceeded the target set by Council.

The agreed rebate target set for Medway Norse for the second year of trading was £263,000 and it was reported that the plan focused on winning business from other public bodies such as schools and health care providers.

It was noted that the Business Support Overview and Scrutiny Committee had considered this report on 3 July 2014 and details of that discussion were set out in section 5 of the report.

Reasons:

When Cabinet agreed to establish the joint venture company it was also agreed that regular monitoring reports would be brought back to Cabinet.