Agenda item

This report deals with a Member’s Item requested by Councillor Maple regarding changes to services carried out by Medway Norse.

Councillor Maple introduced this Member’s item on the issue of changes to services carried out by Medway Norse which he believed were a matter of public interest. He referred at the meeting to emails from service users about the negative impact on them as a result of the changes, particularly in relation to the closure of the café at the Rochester Adult Education Centre. He felt that overview and scrutiny committee Members needed to look at how they could scrutinise such proposals before decisions were made in order to avoid such a situation happening again.  He asked for the decision to close the café at the Rochester Adult Education Centre to be reconsidered and added that the Government had said that the National Living Wage should be affordable, commenting that, if this was so, then services should not be being cut.

In response, the Chief Legal Officer noted that the Medway Norse joint venture was a new way of working. The Council had set up a joint venture company as a commercial operation with a senior officer and Member appointed to the Board. The role of Members was not to run the business but rather to hold it to account and this happened via this Committee on a regular basis. The issue of pre decision scrutiny in respect of Medway Norse was a difficult one with no clear answer at present. In terms of the café, there had not been enough customers to make it viable. One alternative was to open a facility in a nearby building and investigations about this were at an early stage. Proposals would be brought forward if considered viable.

The Managing Director, Medway Norse stated that the Board had discussed with senior officers and Members how to accommodate budget pressures resulting from the national minimum wage without affecting front line services. Medway Norse did not have to pay rent and utilities etc. and the café was still not cost effective, although its situation on the first floor made access difficult. In response, a Member doubted whether the existence of the café had ever been sufficiently promoted.

According to the agreement with the Council, Catering services were provided on a wholly commercial basis. Whilst the café was busy at times the average spend was £1.71 per head and the vending machines would provide virtually everything currently supplied. In response to a question about whether consultation had taken place with services users (including the possibility of increasing prices to make the café viable), the Managing Director confirmed none had taken place. Neither had the possibility of increasing prices been looked at as Medway Norse had fixed pricing for menus at its catering outlets across Medway. In any event the shortfall was substantial. A Member felt that the public may well accept differential pricing and their views should be sought on this.

A Member queried why a new facility was being looked at if the present one was not considered viable. In response, the Committee was advised that the new facility may be in Eastgate House which would mean much greater visitor numbers than the current premises.

Other Members referred to the possibility of increased social isolation due to the café’s closure and asked for the decision to be reconsidered noting that other services, such as the Corn Exchange, operated at a loss. In addition, it was argued that the aims of the Council should inform the decisions taken by the Board.

The possibility of the voluntary sector operating the cafe was raised.  Another Member queried whether Medway Norse could cross subsidise the café so it could continue on a social needs basis. The café was serving a different purpose to other cafes on the High Street and deserved special consideration. The Chief Legal Officer replied that the Council had decided that the service would be operated by Medway Norse on a commercial basis and therefore the voluntary sector was not an option.  Whilst losses could not be sustained he was happy to look at Members’ concerns and see if there was an alternative way forward.

Decision:

The Committee agreed to:

a)        note the report, and

b)        note the offer for further discussions to take place on the future of the café at the Adult Education Centre in Rochester.

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