Agenda item

This report represents a review of the performance of the Joint Venture from the perspective of the Council client for the third and fourth quarters of the 20219/2020 financial year. It is accompanied by an update on the Joint Venture’s achievements and financial performance prepared by the Partnership Director at Medway Norse.

Discussion:

Members considered a report which represented a review of the performance of the Joint Venture from the perspective of the Council client for the third and fourth quarters of the 20219/2020 financial year. It was accompanied by an update on the Joint Venture’s achievements and financial performance prepared by the Partnership Director at Medway Norse.

The Partnership Director advised that within the financial year efficiencies in grounds maintenance and highways meant that an additional £60,000 had been returned to the Council.

Members welcomed the general lack of complaints about waste collection during the pandemic, in spite of a big increase in the amount of waste left out.

Whether Medway Norse was still delivering more for less and providing value for money for the Council was queried. The Partnership Director responded that Medway Norse had delivered efficiencies and invested in plant and machinery. The Chief Finance Officer added that Medway Norse had largely absorbed much of the inflationary pressures that would otherwise have faced the Council. He believed the Council was receiving value for money and that the services provided by Medway Norse had improved. Where Medway Norse was delivering additional services as a result of the pandemic which the Council had to pay for, this would be a call on the additional funding provided by the Government.

The number of Kent residents who had used HWRCs in Medway was questioned, given the recent capital investment by the Council to improve the centres. If the numbers were small, would the County Council continue to pay the Council to take waste from its area? The Partnership Director believed there was information on this but it was not held by Medway Norse. The capital investment in the HWRCs had increased the efficiency of the sites and without this they could not have re-opened as soon as they had done.

Noting there had been an increase in fly tipping in some areas, the Partnership Director accepted this was a challenge. He was working closely with the Council’s enforcement team and any evidence found at a fly tipping site was passed to the Council. However, Medway Norse was not responsible for enforcement or installing CCTV.

In response to a query about the HWRC budget, the Partnership Director undertook to clarify the breakdown of the £113,516 additional unbudgeted work referred to.

Noting pupils would be returning to school in September, the Partnership Director was asked about his plans to transport the more vulnerable given the need for social distancing in vehicles and protective measures for drivers. Members were advised that, following a risk assessment, vehicles used for school transport would only be able to carry a much smaller number of children. Measures had been put in place such as sanitisers, a screen behind the driver and seat covers. This inability to transport the maximum number of children in a vehicle presented a challenge for the SEN team and Medway Norse. It was not possible to use any more vehicles so Medway Norse’s costs were fixed and additional costs were more of an issue for the Council’s SEN team.

Responding to a query about whether any of the wider Norse Group had de-recognised a Trade Union and whether Medway Norse were willing to negotiate with the union to resolve their concerns, the Partnership Director advised that to his knowledge this had not happened anywhere else in the Group. He was willing to meet with Unite’s new regional officer and he hoped relationships could be re-built.

The Partnership Director commented that the entire operational fleet had been replaced. This included 8 new electric vehicles and he hoped to purchase more.

Members expressed their thanks to all Medway Norse employees for their phenomenal hard work over the last few months in successfully delivering services in a very difficult environment. These were services which residents very much appreciated.

Noting the difficult financial situations many organisations found themselves in, the Partnership Director was asked if any thought had been given to what would happen if contracts were handed back or requests to re-negotiate contracts were received. The Partnership Director commented that the wider Norse Group were discussing risks and finance. For Medway Norse there were challenges but it was now delivering more services as a result of the pandemic. There may be a need to reduce some services as pressures increased during the year.

In the light of Deangate Ridge becoming a temporary home for some Medway Norse equipment, the relationship between Medway Norse and the parish council was questioned. The Partnership Director advised that Medway Norse had met with the parish council when the planning application was submitted. Efforts were being made to relocate the equipment by 1 October 2021 deadline.

In terms of the split between Council income (directly and indirectly) and non-council income generated by Medway Norse, the Partnership Director advised that prior to the pandemic he had been close to generating £3m in income. At present Medway Norse was generating more of its profit from external business, which benefited the Council.

The point was made that the section in the report on compliments and complaints contained more information about the former. The Partnership Director responded this was a valid point and would look to include more details about complaints in future.

In response to a question about weed spraying, the Partnership Director confirmed that Medway Norse had adhered to the instructions on this from the Cabinet and was trialling new greener options.

Decision:

The Committee agreed to:

a)     note the contents of the report and its appendix;

b)     place on record its support and thanks to all Medway Norse staff for their excellent work in the recent exceptional circumstances

c)     ask that the next report include an update on weed spraying.

(Councillors Johnson, Maple and Stamp asked that their votes in favour be recorded.)