ORDINARY COUNCIL MEETING 31 JULY 2002 (7.15pm – 10.15pm) PRESENT: The Mayor (Councillor Edith Macauley) (in the Chair); Councillors: Pauline Abrams, Tariq Ahmad, Mark Allison, Jillian Ashton, Su Assinen, Stephen Austin, Matt Bird, John Bowcott, Margaret Brierly, Fiona Bryce, Horst Bullinger, Angela Caldara, Horatio Cheng, David Chung, John Cole, Andrew Coles, Danny Connellan, John Dehaney, Nick Draper, Mary Dunn, Corinna Edge, Samantha George, Tony Giles, Maurice Groves, Stephen Hammond, Richard Harwood, Philip Jones, Andrew Judge, Dot Kilsby, Linda Kirby, Sheila Knight, Maxi Martin, McCabe, Christopher MacLaughlin, Oonagh Moulton, Ian Munn, Leslie Mutch, John Nelson-Jones, Dennis Pearce, Amanda Ramsay, George Reynolds, Judy Saunders, Deborah Shears, Andrew Shellhorn, David Simpson, Mickey Spacey, Geraldine Stanford, Terence Sullivan, Mike Tilcock, Leighton Veale, Martin Whelton and David Williams. Apologies for absence were received from: Councillors Joe Abrams, William Brierly, Mick Fitzgerald, Gilli Lewis-Lavender, Russell Makin, Beth Mitchell and Peter Southgate; and for lateness from Councillors Ian Munn and Peter McCabe. 285 TO RECEIVE ANY ANNOUNCEMENTS FROM THE MAYOR, LEADER OF THE COUNCIL, MEMBERS OF THE CABINET OR THE CHIEF EXECUTIVE (Agenda Item 2) Announcements were tendered as follows: The Mayor drew Members’ attention to the details of the Mayor’s Civic Engagements for the period 22 May to the 31 July that had been circulated around the Council Chamber. In particular, the Mayor highlighted the event that occurred on the 4 July when Her Majesty the Queen met with the Mayors’ of South London as part of her Jubilee Tour. The Mayor was accompanied by 9 people from the Borough including Mr Slim Flegg, a previous Mayor of the Borough, a representative of the Ethnic Minority Centre and two young people who are taking part in the Duke of Edinburgh Scheme. The Mayor also announced that, in addition to her special project on Mitcham Cricket Club, Crystal Care and Diabetes UK were to be her charities for the year. Councillor Maxi Martin, Cabinet Member for Care Services informed the Council that one of the Council’s recent care leavers, Ms Nicola Oliver, has been awarded a first class honours degree in mathematics from Brunel University. Councillor Martin read out a message received from Ms Oliver: “Please let them know that it was a good investment helping people like me. I and my daughter should never be dependent on benefits again and this enhances our opportunities for a better future.” Councillor Martin encouraged all Members to sign a card of congratulations to be sent to Ms Oliver. 187 ORDINARY COUNCIL MEETING 31 JULY 2002 Councillor Danny Connellan assured the Council that the lighting in the Council Chamber would be fully operational by the middle of next year. 286 MINUTES OF PREVIOUS MEETINGS (Agenda Item 3) RESOLVED: That the Minutes of the Annual Council Meeting and of the Special Council Meetings held on 22 May 2002; and of the Extraordinary Meetings held on 29 May 2002 be signed as correct records. 287 TO RECEIVE ANY DECLARATIONS OF INTEREST FROM MEMBERS (Agenda Item 4) In view of the motion detailed in the agenda regarding ‘Youth Services’ Councillor David Williams advised of a personal interest in that he was a member of the management committee for the Endeavour Youth Club. 288 TO RECEIVE A REPORT FROM THE LEADER AND RECEIVE QUESTIONS AND ANSWERS ON HIS REPORT (Agenda Item 5) In his report the Leader of the Council made a number of points on the final report of the Audit of Corporate Governance. His comments are summarised as follows: He thanked those staff, in particular Ben Harris and his team, who prepared for the visit by the Audit team and those officers and members who made contributions during the Audit process. It is clear from the Audit report that any concerns about officer/member relationships have been allayed and that there is much that was positive from the report including: Improved local consultation through ward surveys and local area forums; Partnership working described as a strength in particular the work on community safety; an improved financial position; a sound response to special measures in Children’s Services; and the Council’s willingness to carry forward major projects i.e. schools reorganisation. There was still a need to improve corporate working, performance and project management, income generation and the need to prioritise. The Council was invited to have ‘greater pace and challenge’ and this it will seek to ensure in order that Merton becomes and remains an excellent Council. The Council has agreed strategic objectives and principles and a series of 3-year priorities. The Council wishes to deliver quality services and achieve a local environment of high quality. To achieve the Council’s vision there needs to be cross-Council co-operation accepting criticism where it is justified and well intentioned. A number of questions were put to the Leader and responses made summarised as follows: 188 ORDINARY COUNCIL MEETING 31 JULY 2002 Councillor Williams asked the Leader as to the urgency he gives to the gaps in the IdeA action plan as highlighted by the Corporate Governance inspection. The Leader responded that there is urgency across the Council. It was intended that the Cabinet and Corporate management Team will review progress on each of the targets on a monthly basis. In view of the Audit by Corporate Governance it is now appropriate that the individual targets of the IdeA action plan be subsumed in an action plan for the Audit of Corporate Governance. He confirmed that all the recommended improvements were to be carried out efficiently and promptly. Councillor Harwood drew attention to the observation arising from the Audit review of poor project management. He illustrated this point in referring to the school PFI deadline being missed once again and the collapse of the Council’s housing stock transfer proposals. The Leader responded that the stock transfer proposals have not collapsed and that it was always intended to offer the choice to tenants as to whether their properties should be transferred to a registered social landlord. Tenants have decided not to take the opportunity and the Council made no recommendations as to whether they should say yes or no to the transfer. It also suggests that no matter what the material benefits of transfer might have been the tenants have a liking for democratic central control of their houses. They want the Council’s management services to continue to manage them. In terms of the reorganisation of schools we are looking at the most complex and unique project this Council has ever undertaken combining PFI with schools reorganisation at the same time and involving several member partners. I, therefore, reject the contention that we are failing. We do take on board the comments made in the Audit report but these are not a general condemnation of project management. Councillor Samantha George asked as to why the Leader had addressed the Audit in his report when no other Councillors have seen or been able to discuss it and enquired as to when it was that the report would be presented to the Council. The Leader responded that it was wholly appropriate to bring the general lessons of the report on this matter to members at the earliest opportunity and that this was what he was seeking to do. 289 TO RECEIVE WRITTEN QUESTIONS AND WRITTEN ANSWERS AND SUPPLEMENTARY QUESTIONS FROM MEMBERS (Agenda Item 6) 1. By Councillor David Williams of the Cabinet Member for Finance and Corporate Support “The Leader of the Council and I were at an ALG meeting with Nick Raynsford in which he outlined draft proposals to replace Standard Spending Assessment (SSA) methodology and these have now been published. Irrespective of the political control of Merton or national government, this Council has had difficulty in gaining recognition of the extent of economic diversity within the Borough - in particular levels of deprivation and that Merton is neither a truly Inner or Outer London Borough. This Administration, with its friends in Government and two Labour MP's are in a unique position, at a time of change, to secure a lasting and more favourable Revenue Support Grant for Merton. 189 ORDINARY COUNCIL MEETING 31 JULY 2002 What steps are being taken to press Merton's case?” Reply “The Government has carried out a review of Local Government fundingand is proposing to make changes to the existing funding arrangements. These changes would result in a redistribution of money principally from London, the South East and the Shires to the Northern Metropolitanareas. The Government have produced exemplification’s based on 2002/03 data of the options being considered to illustrate how this will affect SSA in all Councils. The options being considered by Government range from London gaining £360m to London losing £510m.For Merton, the options under consideration show that at best Merton ould gain £4.8m and at worst lose £14m. There are however special arrangements which would limit the loss and gain in any one year. There is therefore a significant risk that Merton will lose a substantial amount of funding. As Government funding represents about 2/3rds of Council spending, any reduction in grant funding will result in a significant increase in Merton’s Council Tax. The ALG are currently collecting the views of its members and will be representing these to Government. The Government has issued its proposals for consultation and Merton will be making a submission by the 30th September based on “Making the Merton Case”. We will also be talking with our local MP’s and asking them to reflect our concerns over the proposed changes to the Deputy Prime Minister.” Supplementary question “In one sense there is nothing that divides the Council on this issue as we all want to see the best deal for Merton and there have been times when cross party groups have gone to see the junior member who is responsible.