• Agenda

Minutes of Meeting of the Finance, Housing and Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 28 August 2013 at 10.30 am.

Present:

Mr D Fallows, Dr D Alston, Mrs C Caddick, Mrs H Carmichael, Mr A Christie, Mrs M Davidson, Mr G Farlow, Mr J Ford, Mr L Fraser, Mr B Gormley, Mr K Gowans (substitute), Mr D Hendry, Mr R Laird, Mr C Macaulay, Mrs I McCallum, Mr D MacKay, Mr  A Mackinnon, Mr T Maclennan, Mr H Morrison, Mr F Parr, Mr J Stone, Mrs C Wilson, Mr H Wood

Non Members also Present:

Mr B Clark, Ms J Douglas, Mr H Fraser, Mr M Green, Mr A MacLeod, Mr D Millar, Mrs M Paterson

Officials in attendance:

Mr S Barron, Depute Chief Executive/Director of Housing and Property
Ms M Morris, Assistant Chief Executive
Mr D Yule, Director of Finance
Ms T Urry, Acting Interim Director of Housing and Property
Mr D Lamont, Head of Exchequer & Revenues, Finance Service
Mr G Westwater, Head of Property, Housing and Property Service
Mr A Maguire, Head of Property Partnerships, Housing and Property Service
Mr D Goldie, Head of Housing, Housing and Property Service
Mr G Bull, Corporate Property Asset Manager, Housing and Property Service
Ms V Nairn, Head of E Government, Chief Executive’s Service
Mr C McDiarmid, Head of Policy & Performance, Chief Executive’s Service
Ms C Campbell, Maintenance and Service Support Manager, Housing and Property Service
Mr J Batchelor, Head of Human Resources, Chief Executive’s Service
Mr M MacDonald, Human Resources Manager, Chief Executive’s Service
Ms E Barrie, Personnel Manager, Chief Executive’s Service
Mr F MacDonald, Property Manager (Building Maintenance), Housing and Property Service
Mr C Anderson, Property Manager (North), Housing and Property Service
Mr J Shepherd, ICT Strategy & Projects Manager, Chief Executive’s Service
Ms G Falconer, Health & Safety Manager, Chief Executive’s Service
Mr J Robertson, Corporate Improvement Programme Manager, Chief Executive’s Service
Mr K Fox, Project Manager (Pathfinder North Re-Procurement) Chief Executive's Service
Mr G Fyfe, Public Relations Manager, Chief Executive’s Service
Mrs A Clark, Policy Officer, Chief Executive’s Service
Mr P Mallard, Senior Information & Security Officer, Chief Executive’s Service
Mrs K Lackie, Business Manager, Chief Executive’s Service
Mrs L Dunn, Principal Committee Administrator, Chief Executive’s Service
Ms A Macrae, Committee Administrator, Chief Executive’s Service

An asterisk in the margin denotes a recommendation to the Council.  All decisions with no marking in the margin are delegated to the Committee.

Mr D Fallows in the Chair

Business

Prior to the commencement of the meeting, the Chair congratulated Ms Tracey Urry on her appointment as Interim Director of Housing and Property.

1. Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mr N Donald and Mr G Phillips.

2. Declarations of Interest
Foillseachaidhean Com-pàirt

Items 5c, 6, 8, 13, 14, 23 - Mr G Farlow (Financial) and Items 11 and 12  (Non- Financial)
Items 5c, 18, 19, 23(b) - Mr F Parr (Non-Financial)
Items 5a, 5b, 5c, 6, 11,12 - Mr A Christie (Non-Financial)
Items 11 and 12 - Mr B Gormley (Non-Financial)
Items 11 and 12 – Mr A MacLeod (Non-Financial)

3. Good News Stories
Deagh Naidheachan

Report on Achievement of Customer Services Excellence Awards

There was circulated Report No. FHR-87-31 (599kb pdf) by the Assistant Chief Executive which detailed the continued achievement of the Customer Services organisation in retaining the externally assessed Customer Service Excellence Standard.  This was currently the only externally assessed Customer Service standard recognised and supported by the UK Cabinet Office.

The Committee NOTED the outcomes from the assessment and the successful achievement and improvement against the criteria of the Customer Service Excellence standard.

4. Recess Powers
Cumhachdan Fosaidh

The Committee was advised of the following use of recess powers by the Assistant Chief Executive in consultation with the Chair and Vice-Chair of the Finance, Housing and Resources Committee:-

• Approval for staffing changes in respect of Housing and Property Services scheduling for Building Maintenance.  The request was for the creation of four posts of scheduler (HC03) to take forward the mobile working and scheduling in Building Maintenance.  Finance, Housing and Resources Committee approved the setting up of a scheduling team comprising team leader (approved late 2012) and five schedulers (approved early 2013).  The team leader was now in post.  The Service currently operated with one scheduler on secondment and three agency temporary staff.  Relying on agency staff carried a risk of high turnover and the need to constantly train new starts which had an impact on the activities of the team leader and service delivery.

The Committee NOTED the use of recess powers by the Assistant Chief Executive in consultation with the Chair and Vice-Chair of the Finance, Housing and Resources Committee.

5. Central Services Revenue Budget Monitoring
Sgrùdadh Buidseat Teachd-a-steach nan Seirbheisean Meadhain

Declaration of interest - Mr A Christie declared a non-financial interest in items 5.a, 5.b and 5.c as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

a. Chief Executive’s Service and Members Revenue Budget: Final Outturn 2012/13 and Monitoring 2013/14

There was circulated Report No. FHR-88-13 (61kb pdf) by the Chief Executive which commented on the final outturn position for the Chief Executive’s Service revenue budget for 2012/13 and provided information on the revenue monitoring position for the Chief Executive’s Service for the period 1 April 2013 to 30 June 2013.

It was reported that there was a small overspend in the Members budget and there was also an assessment being undertaken on the costs of the new Area Committees.  However, it was anticipated that a balanced Members budget would be achieved by the year end by way of the transfer of funds between budget headings.

It was also highlighted that the report sought approval for a transfer from balances of £0.016m to the elections budget, to cover the costs of the by-election in the Caithness Landward ward.

The Committee:-

i.  AGREED the final outturn for the Chief Executive’s Service revenue budget
    for 2012/13 and the revenue monitoring report for the period 1 April 2013
    to 30 June 2013; and
ii.  APPROVED a transfer from balances of £0.016m to the elections budget,
    to cover the costs of the by-election in the Caithness Landward ward.

b. Finance Service Revenue Monitoring: Final Outturn 2012/13 and Monitoring to 2013/14

There was circulated Report No. FHR-89-13 (56kb pdf) by the Director of Finance which presented on the final outturn for the Revenue Budget for the year to 31 March 2013 and the Revenue Monitoring position for the period to 30 June 2013.

In particular, it was highlighted that the business support budget pressure had increased from £0.363m to £0.413m due to savings from the implementation of the ResourceLink project being further delayed (this was the issue of a separate report, item 29 referred).   However, the Finance Service was examining all areas of expenditure to find compensating savings throughout the year and deliver a balanced budget. 

The Committee:-

i.  NOTED the Finance Budget outturn position for 2012/13; and
ii. AGREED the monitoring report to 30 June 2013.

c.  Housing and Property Service Revenue Budgets: Final Outturn 2012/13 and Monitoring to 30 June 2013

Declaration of Interest - Mr F Parr declared a non-financial interest in this item on the grounds that a family member was employed by the Housing and Property Service but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

Mr G Farlow declared a financial interest in this item as a Council house tenant but, in terms of the dispensation granted by the Standards Commission, remained to participate in the discussion.

There was circulated Report No. FHR-90-13 (210kb pdf) by the Depute Chief Executive / Director of Housing and Property which presented the final outturns for 2012/13 and current position to 30 June 2013 with regard to the Housing Revenue Account, non-Housing Revenue Account, Property Revenue Maintenance and the Building Maintenance Account.

In discussion it was advised that there was no direct link between staff vacancies and the House/Other rent voids budget and it was confirmed that the Housing and Property Service continually tried to improve and shorten the length of time taken to re-let properties.  It was requested that information on staff vacancies in Housing and Property maintenance and the location of these posts be provided for Members.

Thereafter, the Committee:-

i.  NOTED the final outturns for 2012/13 on the Housing Revenue Account,
    Other Housing and Property Revenue Account, and Building Maintenance as
    at 31 March 2013;
ii.  AGREED the monitoring statements to 30 June 2013 for these accounts;
    and
iii.  AGREED that information on staff vacancies in Housing and Property
    Maintenance and the location of these posts be provided for Members.

6. Corporate Revenue Monitoring
Sgrùdadh Teachd-a-steach Corporra

Declaration of Interest - Mr G Farlow declared a financial interest in this item as a Council house  tenant but, in terms of the dispensation granted by the Standards Commission, remained to participate in the discussion.

Declaration of interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-91-13 (77kb pdf) by the Director of Finance which presented the revenue budget expenditure position for the period to 30 June 2013 and the projected year end position.

The report showed that the General Fund had a total annual budget allocated to Services of £560.888m year to date actual of £94.363m and an estimated year end position of £561.431m giving an estimated year end overspend of £0.543m (0.17%).  The management response to the predicted overspend was highlighted in the report.

In response to a question on the unallocated corporate savings of £141,000, it was explained that these related to savings arising from the Corporate Improvement Programme and they would be allocated to Service budgets this financial year as the projects were further developed.

The report also highlighted that in the Chief Executive’s Service Revenue Monitoring report (item 5.a of this minute) there had been a request for additional funding of £0.016m from balances to meet the costs of the by-election in Caithness Landward Ward.

The Committee:-

i. APPROVED the Revenue Expenditure Monitoring Statement for the
   financial year 2013/14 which showed a predicted net overspend of
    £0.543m, 

ii. NOTED the management response to the predicted overspend; and
ii. NOTED the request to transfer £0.016m from balances to the Chief
    Executive’s budget for costs of the Caithness Landward by-election.

7. Chief Executive’s Service: Capital Budget Final Outturn 2012/13 and Monitoring 2013/14
Seirbheis an Àrd-oifigeir: Sgrùdadh Buidseat Calpa 2013/14

There was circulated Report No. FHR-92-13 (76kb pdf) by the Chief Executive which set out the final outturn position for the Chief Executive’s Service Capital budget for the period 1 April 2012 to 31 March 2013 and the position for the Chief Executive’s Service 2013/14 capital budget for the period to 30 June 2013.

For the year to 31 March 2013 there had been capital projects amounting to a gross capital budget of £5.885m with a total gross expenditure of £2.843m.  For the period to 30 June 2013 there were capital projects amounting to £4.594m with £0.705m spent to date.

The Committee NOTED the final outturn position for the Chief Executive’s Service Capital budget for the period 1 April 2012 to 31 March 2013 and AGREED the capital monitoring report for the period 1 April 2013 to 30 June 2013.

8. Housing and Property Service Capital Budgets: Final Outturn 2012/13 and Monitoring to 30 June 2013
Buidseat Calpa Seirbheis an Taigheadais is na Seilbhe

Declaration of Interest - Mr G Farlow declared a financial interest in this item as a Council house  tenant but, in terms of the dispensation granted by the Standards Commission, remained to participate in the discussion.

There was circulated Report No FHR-93-13 (200kb pdf) by the Depute Chief Executive/Director of Housing and Property which presented the final outturn position for 2012/13 and gave an update on the position regarding expenditure to 30 June 2013 for the HRA Capital, Non HRA Housing Capital and Property Capital Programmes.  The report also recommended the HRA Capital Programme budget for 2013/14.

During discussion, reference was made to biomass and other renewable heating technologies and in particular how to promote awareness of these to the general public. There appeared to be a lack of understanding regarding renewable heating incentives and how these technologies would lower household costs and also reduce carbon emissions.  In response, the Head of Housing explained that there were a number of challenges in developing the HRA Capital Programme to deliver these technologies and he intended to submit a report on the capital plan which would include costs associated with Biomass and other renewable technologies to the next meeting of the Committee.   He further advised that wood fuel was also particularly popular and he suggested that Members could consider options to raise awareness of energy saving initiatives at their Ward Business Meetings.  Although raising this at ward level was welcomed, it was felt that a strategic outlook should be taken and in response it was explained that there would be a corporate approach through the Carbon Clever programme which would include promoting renewable technologies, supporting initiatives and encouraging change in energy use.  With regard to promoting awareness, the Chairman further emphasised the importance of ensuring that professional advice was available prior to changing systems and, in particular, the services available from the Energy Savings Trust in this regard was highlighted. 

Responding to a number of points raised, it was further explained that prior to any improvements being made to heating systems in Council owned properties an option appraisal was carried out to determine the best system for both the property and occupant. 

A request was also made for the problems associated with the Biomass Heating plant at Ben Wyvis Primary School to be resolved as soon as possible.

In relation to the Dingwall and Inverness Office Rationalisation projects it was confirmed that a feasibility study report would be presented to the Corporate Improvement Programme Board during September 2013 and thereafter it was intended to submit a report to the Committee by the end of the year.   In response to a request, the Depute Chief Executive/Director of Housing and Property confirmed that he would provide Councillor M Paterson with a timetable for disposal of the surplus portacabins at the old Dingwall Academy site.

Thereafter the Committee:-

i.  NOTED the final outturn position for 2012-13 for the HRA Capital, Non HRA
    Housing Capital and Property Capital Programmes;
ii.  NOTED the position regarding expenditure to 30 June 2013 for the HRA
    Capital, Non HRA Housing Capital and Property Capital Programmes;
iii.  APPROVED an HRA Capital Programme budget of £41m for 2013/14,
    comprising £17.558m for the mainstream programme and £23.442m for
    Council house building; and
iv. NOTED that the annual Standard Delivery Plan for the Scottish Housing
    Quality Standard, containing more detailed information on detailed project
    costs, would be presented to Committee on 9 October 2013.

9. Corporate Capital Monitoring Report
Aithisg Sgrùdaidh a’ Chalpa Chorporra

There was circulated Report No. FHR-94-13 (44kb pdf) by the Director of Finance which provided an overview of expenditure on the General Fund and HRA capital programmes for the period 1 April 2013 to 30 June 2013 and the projected year end position for 2013/14.

In discussion, it was requested that the £0.200m that had been committed for Halkirk Sports facility be redirected to the completion of the Thurso High School running track.   However, the Depute Chief Executive/Director of Housing and Property advised that this proposal would require to be considered through the standard business case process.

With regard to the Digital Broadband project, Members expressed the need for continued representations to be made to British Telecom to indicate where and when they would deliver the required infrastructure in Highland.  In addition, it was further acknowledged that it would not be feasible to deliver this service across the whole of the Highlands and it was therefore equally as important to know the areas where this service could not be delivered in order that alternative solutions could be determined.

The Committee APPROVED the financial position of the General Fund and HRA capital programmes as at 30 June 2013.

10. Treasury Management: Summary of Transactions
Rianachd Ionmhais: Geàrr-chunntas de Ghnothaichean

There was circulated Report No. FHR-95-13 (65kb pdf) by the Director of Finance which provided details on the Treasury Management transactions for May, June and July 2013.

In discussion, the Director of Finance confirmed that he would circulate copies of the presentation slides from the Treasury Management Training session that was held for Members on 27 August 2013 to the Committee.  It was also noted that a review of the Council’s temporary deposits was to be undertaken in order to minimise risks rather than maximise returns.

The Committee NOTED the terms of the report.

11. Welfare Reform Progress Update
Aithisg Adhartais Ath-leasachaidh Shochairean

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau, Mr G Farlow declared a non-financial interest as Director of North West Sutherland Citizen’s Advice Bureau, Mr B Gormley declared a non-financial interest as the Council’s representative on Lochaber Citizen’s Advice Bureau, and Mr A MacLeod as a Director of Caithness CAB but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interest did not preclude them from taking part in the discussion.

There was circulated Report No. FHR-96-13 (91kb pdf)  by the Director of Finance which provided an update on the fast moving situation that was Welfare Reform. The report looked at the local impact of three measures which included the Spare Room Subsidy (commonly referred to as Bedroom Tax), in respect of which Discretionary Housing Payments were providing limited short term mitigation for some households; the Benefit Cap; and Universal Credit, which would now start to be introduced for some clients in Highland from November 2013.

Members expressed their continued opposition to the UK Benefit reforms and the negative impact these were having at a local level.  The changes to the benefit system would continue to be considered in detail by the Welfare Reform Working Group, and there would be further dialogue with local MPs on the reforms at a meeting to be held on 11 October 2013.

In discussion on the various aspects of the benefit reforms, the Chairman proposed that the Council should write to Highland MPs seeking their support of the Rural Communities report dated 24 July 2013 by the Environment, Food and Rural Affairs Committee which made reference to the Spare Room Subsidy and recommended that ‘Settlements of fewer than 3,000 people should be excluded from the under-occupancy policy’.

However, concern was expressed that the method of using a population figure was too prescriptive, particularly in view of the absence of one bedroom properties throughout the Highlands.  Therefore, it was felt that rural authorities, such as Highland, should be exempt from the provisions of the Spare Room subsidy in recognition of the absence of the appropriate housing stock to accommodate tenants who wished to move to a smaller house.  The Chairman recognised this difficulty but he highlighted that the Council had consistently campaigned on the issues of rurality, particularly emphasising the large distances that people would have to relocate to within the Highlands to downsize.  Although he accepted that full exemption would be best and, the Council would continue to lobby for this, he also felt that this was a step in the right direction in that it recognised the issues of rurality and he therefore urged that the recommendation within the Rural Communities report should be supported.

In addition, Members expressed further concern in respect of the increasing level of tenants in arrears.  In particular, the Committee was concerned that advice and assistance would not be provided until arrears reached the equivalent of two months rent which they felt was too long and that a more proactive approach should be taken through earlier intervention.

It was further highlighted that there was insufficient information from the Department for Work and Pensions (DWP) about Universal Credit on-flows and other claimant details and concern was expressed regarding this. In addition, the significant challenges presented by digital inclusion within the Highland area in addition to geography and rurality factors were also highlighted.

Reference was made to the additional funding from the DWP for discretionary housing payments which, while welcomed, had to be balanced against the additional expenditure that the Council was incurring on the provision of Housing as a result of the changes.  In addition, there were no guarantees that this extra funding would be available in future years and the Council required clarity on this for forward planning purposes. Further, the rise in the number of Foodbanks across the UK was a direct result of the welfare reforms and recognition was given to all those who helped deliver food parcels throughout local communities.  The Chairman also advised that he would welcome further information on the statistics appended to the report in relation to foodbanks to help better understand the severity of this problem.  Also of concern was the number of ‘working poor’ who were on low wages but faced increasing household costs.

In response to a question, the Director of Finance advised that they would be reviewing all Discretionary Housing Payments which would include those that had previously been unsuccessful.  He further advised that officers were working within the guidelines to ensure that all the monies allocated would be fully spent by the end of the financial year.

Thereafter, the Committee:-

i.  NOTED the updated information contained in the report and acknowledged
    the more realistic approach being taken to some of the practical aspects of
    Welfare Reform following representations by and on behalf of Scottish
    Councils;
ii.  NOTED the relevant statistics shown in the Appendix attached to the
    report;
iii.  AGREED to write to Highland MPs seeking their support of Rural
    Communities report dated 24 July 2013 by the Environment, Food and Rural
    Affairs Committee recommending that ‘Settlements of fewer than 3,000
    people should be excluded from the under-occupancy policy’;
iv. AGREED to continue to make to further representations to the UK Minister
    for Welfare Reform that consideration be given to rural authorities being
    exempt from the provisions of the Spare Room subsidy in recognition of the
    absence of the appropriate housing stock to accommodate tenants who
    wished to move to a smaller house; and
v. AGREED that a further meeting of the Welfare Reform Working Group
    would be arranged in early course and Members of that Group be invited to
    the meeting with Highland MPs on 11 October 2013.

12. Advice and Information Services: End of Year Monitoring
Aithisg Bhliadhnail nan Seirbheisean Comhairle is Fiosrachaidh 2012/13

Declaration of Interest - Mr A Christie declared a non-financial interest in this item as General Manager and Company Secretary of Inverness, Badenoch & Strathspey Citizens Advice Bureau, Mr G Farlow declared a non-financial interest as Director of North West Sutherland Citizen’s Advice Bureau, Mr B Gormley declared a non-financial interest as the Council’s representative on Lochaber Citizen’s Advice Bureau and Mr A MacLeod as a Director of Caithness CAB, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that their interest did not preclude them from taking part in the discussion.

There was circulated Joint Report No. FHR-97-13 (77kb pdf) by the Assistant Chief Executive and Director of Finance which provided details of the end of year monitoring in respect of Advice and Information Services in Highland for 2012/13.  The report also provided an update on the new contractual arrangements with CABx, feedback from the Annual Performance Survey and a briefing on a new Consumer Partnership between CABx and the Council’s Trading Standards team. 

In discussion it was noted that North West Sutherland Citizen’s Advice Bureau was the correct title to be inserted in the Appendix to the report and that duplicate reference to Nairn CAB in the Appendix would be amended. Reference was made to the worrying trend of an increase in customer contacts by the Council’s in-house teams associated with ‘payday lending’ and it was therefore requested that a report be submitted to the next meeting on the restrictions that the Council could impose on door step lending.

In response to points raised, the Head of Policy and Performance advised that she would provide further clarification in relation to funding arrangements for the Pulteneytown People’s Project, Wick to Councillor A MacLeod.

The Committee NOTED that in 2012/13:-

i. through the Council’s contracts with the CAB network 44,961 customer
    contacts were made.  The complexity of advice sought was increasing and
    pressures experienced particularly in the area of welfare benefits;
ii. contact with the Council’s in-house money advice service had remained stable
    between 2011/12 and 2012/13.  The in-house income maximisation team
    had experienced a further increase in the level of contacts which was mainly
    attributable to the substantial number of clients seeking advice about the
    anticipated and actual impact of Welfare Reform;
iii. the total financial gain to all customers from these services amounted to
    £10.5m;
iv. the development of the Highland Consumer Partnership between the CAB
    network and the Council’s Trading Standards team; and
v. that North West Sutherland Citizen’s Advice Bureau was the correct title to
    be inserted in the Appendix to the report and that duplicate reference to
    Nairn CAB in the Appendix would be amended.

The Committee also AGREED that a report be submitted to the next meeting on the restrictions that the Council could impose on door step lending.

13. Audit Scotland Report: Housing in Scotland
Sgrùdadh Alba: Taigheadas ann an Alba

There was circulated Report No. FHR-98-13 (74kb pdf) by the Depute Chief Executive/Director of Housing and Property which provided a summary of an Audit Scotland report titled “Housing in Scotland” which was published on 11 July 2013. The Audit Scotland report provided an overview of how the housing system in Scotland operated and assessed how the Scottish Government and Councils were responding to meet Scotland’s housing needs. There were a number of recommendations aimed separately at the Scottish Government and Councils. The report also provided a commentary and self-assessment on the Highland Council’s position in relation to Audit Scotland’s recommendations.

In discussion it was suggested that the Audit Scotland report demonstrated the need for the Scottish Government to significantly increase its investment in housing to meet demand. A point was also raised in regard to that part of the Report relating to the problems created by a lack of consistent definition of ‘affordable housing’, and whether the Council had made representations to the Scottish Government in this regard.  A further comment related to the need to address the link between housing, and health and inequalities within communities.

The Head of Housing Partnerships advised that there was no clear single definition at a national level of ‘affordable housing’, and explained that the lack consistency in this regard had been an issue for both the Council and developers in taking forward housing developments.

The Chair suggested that a workshop be arranged to allow Members to consider in more detail the issues surrounding the definition of ‘affordable housing’, and requested that an appropriate official from the Scottish Government be invited to attend.

Thereafter and in response to a question the Head of Housing confirmed that he would circulate Members with further information on the current review of the Tenant Participation Strategy.

Following further discussion the Committee:-

i.  NOTED the report and recommendations from the Audit Scotland Report;
ii.  AGREED the self-assessment contained in Appendix 1 to the report;

iii. AGREED to refer the report and self-assessment for consideration by the
    Audit and Scrutiny Committee on 25 September 2013; and,
iv. AGREED that a workshop be arranged to allow Members to consider in
    more detail the issues surrounding the definition of ‘affordable housing’, and
    that an appropriate official from the Scottish Government be invited to
    attend.

14. Highland Housing Register Allocations Policy: Annual Report
Ath-sgrùdadh Bliadhnail air Poileasaidh Riarachadh Thaighean

There was circulated Report No. FHR-99-13 (209kb pdf) by the Depute Chief Executive/Director of Housing and Property which provided annual monitoring information on the operation of the Highland Housing Register (HHR) allocations policy for 2012/13.  It highlighted key issues in relation to the supply and demand for social rented housing in Highland. The report also identified areas for policy review and set out the national policy context for social housing allocations.

Arising from the report discussion focused on the need to address the balance between the supply and demand for one-bedroom properties, noting that single and couple households with no children made up a large proportion of the housing register.

The Head of Property Partnerships advised that the recent focus of the Council and Housing Associations had been on building two bedroom units in response to previous demand for transfers to larger properties. However in response to issues such as the Spare Room Subsidy there had been a shift in focus to designing and building one-bedroom properties which could be extended to two-bedroom units if required.

In discussion Members also referred to the increasing complexity of the allocations policy in the context of high levels of demand, expansion of the housing options approach, and other legislative changes, and queried the process for Member input into the review process.

In response the Chair suggested that a workshop be arranged at the appropriate time on the proposed revisions to the allocations policy to ensure Members had an input into the process and allow consideration of the policy options and implications for communities.

In response to further comments the Head of Housing confirmed that he would provide Members with a breakdown of the figures for Inverness shown in Appendix 1 to the report in regard to housing supply and demand per letting area. It was also confirmed that the appropriate terminology for welfare reform policies would be incorporated into future reports.

During further discussion concern was expressed that some older flatted or maisonette accommodation might not be suitable to the needs of tenants due to the lack of play or amenity space. 

In this regard the Chair requested that officials consider the allocations policy in regard to the transfer of tenants in such circumstances and report back to the Committee in due course. 

The Depute Chief Executive/Director of Housing and Property reported that while current capital investment was targeted to meeting Scottish Quality Housing Standards by 2015, the provision of play and amenity space would be investigated as part of future investment plans.  

The Committee NOTED the annual monitoring report on the Highland Housing Register as contained in Appendix 1 to the report and AGREED:-

i. the following eligibility criteria for “downsizing payments”:

    1. Pensioners who had been tenants for more than 10 years and who
        needed to move to meet their future housing needs or in other
        exceptional cases;
    2. Where there was a genuine and urgent need for the property being
        vacated, for example: 

• Where there was an applicant on the Housing Register with high Accessible Housing points whose housing need would be met by moving to the larger/adapted property; or
• Where there was an applicant for the larger property on the Housing Register with extreme overcrowding points and needed to reside; and

    3. In other exceptional cases, with the approval of the Housing and
        Property Managers;

ii. that further work take place with Highland Housing Register partners and
    other stakeholders on policy options and implications arising from a housing
    options approach and that a further report be presented to Committee in
    2014;
iii. that a further report be presented on any policy changes to be considered
    following confirmation of new legal powers and duties arising from proposed
    changes to legislation in 2014;
iv. that a workshop for Members on the proposed revisions to the allocations
    policy be arranged at the appropriate time; and
v. that the allocations policy in regard to transfer applications from tenants in
    flatted accommodation be considered and a report brought back to a future
    meeting of the Committee.

15. Housing Development Initiatives
Leasachadh agus Iomairtean Taigheadais is Seilbhe

There was circulated Report No. FHR-100-13 (57kb pdf) by the Depute Chief Executive/Director of Housing and Property which sought approval for property transactions from the General Account to HRA which would contribute to the overall housing programme and to sell specific low cost home ownership properties as part of the agreed programme. This report also sought approval for use of the Council’s Landbank to provide loan funding for a specific project.

Members welcomed the report with specific reference to the progress being made to deliver affordable housing developments at the former school at Glenborrodale, and the site of the former fish factory at Broadford.  The proposal to award the Highland Small Communities  Housing Trust a loan to contribute to meeting the identified local housing need at Arisaig, Daviot, Dornoch and Lochcarron was also welcomed.

The Committee AGREED that:-

i. the land and property at Glenborrodale, Fort William and Broadford as detailed
    within section three of the report be transferred to the Housing Account, at
    a value which would enable affordable housing to be developed within the
    agreed Bench Mark values;
ii. subject to the appropriate consent of Scottish Ministers, to sell LIFT
    properties identified within Appendix A of the report; on the basis that sales
    would be at market value to nominees of Albyn Enterprises who had been
    assessed as being eligible under the Scottish Government LIFT scheme; and
iii. a short term loan of up to £0.350m be offered to the Highlands Small
    Communities Housing Trust to assist in developing projects in Arisaig, Daviot,
    Dornoch and Lochcarron; utilising the Landbank Fund, and on terms to be
    agreed by the Depute Chief Executive/Director of Housing and Property.

16. The Kirkmichael (Black Isle) Heritage Centre Project
Pròiseact Ionad Dualchais Chille Mhìcheil (An t-Eilean Dubh)

There was circulated Report No. FHR-101-13 (45kb pdf) by the Corporate Manager which requested approval for a contribution of up to £70,000 from the Capital Discretionary Fund towards a funding package to enable the Kirkmichael (Black Isle) Heritage Centre Project to go forward.

The report explained that the project was led by the Kirkmichael Trust, a registered charity established by the community of Resolis and wider area to restore and conserve the derelict Kirkmichael site in the Black Isle and establish a permanent display of medieval sculptured gravestones within the restored Kirkmichael Church and associated mausoleums.  The Trust would produce a sustainable project with minimal on-going costs, whilst providing a unique tourist draw to complement other heritage sites in the area. It would convert the Highland Council owned derelict and dangerous kirk buildings at Kirkmichael to an attractive community and tourist resource, relieving the Council of future expenditure and liabilities.

The Committee APPROVED a total, capped, contribution of £70,000 from the Capital Discretionary Budget, conditional on the Kirkmichael Trust securing the remainder of the funds, and that there would be no contribution towards running costs.

17. Internal Audit Report: Housing Benefit and Council Tax Benefit Payments

There was circulated Report No. FHR-102-13 (85kb pdf) by the Director of Finance which outlined the findings of an Audit carried out as part of the Annual Plan for 2012/13, which, as reported to the Audit and Scrutiny Committee, provided substantial assurance regarding the system for Housing Benefit and Council Tax Benefit Payments, and had resulted in one recommendation at a medium priority grade being made.

The Committee NOTED the audit findings and that the one recommendation was implemented in advance of the relevant Audit and Scrutiny Committee meeting.

18. Managing Early Departures  
Aithisg Sgrùdadh Alba: A’ Cumail Rian air Fàgail Tràth

Declaration of Interest - Mr F Parr declared a non-financial interest in this item on the grounds that a family member was employed by the Housing and Property Service but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-103-13 (422kb pdf) by the Assistant Chief Executive advised of the recent Audit Scotland report (Managing Early Departures From The Scottish Public Sector) and setting out how the Highland Council complied with the principles of best practice.

The Chair welcomed the report and the fact that the Council was complying with best practice in regard to early departures.

In terms of future reporting it was confirmed that information on early departures would be included in the Director of Finance’s annual report to the Committee on early and normal retirements.

The Committee NOTED the Audit Scotland report and that the Council complied with the suggested principles of best practice and AGREED that that information on early departures would be included in the Director of Finance’s annual report to the Audit and Scrutiny Committee on ‘The Highland Council Pension Fund – Monitoring of Retirements’.

19. Review of The Highland Council’s Health and Safety Management System
Ath-sgrùdadh air Siostam Rianachd Slàinte is Sàbhailteachd Chomhairle na Gàidhealtachd

Declaration of Interest - Mr F Parr declared a non-financial interest in this item on the grounds that a family member was employed by the Housing and Property Service but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There is circulated Report No. FHR-104-13 (325kb pdf) by the Assistant Chief Executive which informed that there was a commitment in the 2011/12 Health and Safety Annual Report to review the policies and procedures in the Council’s health and safety management system and identify any gaps and also ensure that the advice was up to date.  The report summarised the policies and guidance that had been developed as a result of this exercise in regard to fire safety management; health and safety training; and health surveillance. The report also advised that an additional policy had been included as a result of up to date information which identified radon risk in a number of Highland areas.

The Committee APPROVED the Health and Safety Management policy and guidance documents.

20. Information Management Strategy
Ro-innleachd Rianachd Fiosrachaidh

There was circulated Report No. FHR-105-13 (373kb pdf) by the Assistant Chief Executive which provided information on the revised Information Management strategy for 2013-2017 and provided an update on progress made on the implementation of the 2009-2012 Information Management strategy, and outlined a new Implementation Plan for the strategy for 2013-14.

The Committee:-

i. NOTED the update on the strategic initiatives; and
ii. APPROVED the Information Management Strategy 2013-2017.

21. Information Security Policy
Poileasaidh Tèarainteachd Fiosrachaidh

There was circulated Report No. FHR-106-13 (166kb pdf) by the Assistant Chief Executive which informed of the new Information Security Policy and sought approval of this Policy.

The report advised that the Policy provided high level rules, responsibilities and roles that applied to Members, staff and those working on behalf of the Council or with access to Council Information Assets. The creation of the Policy also supported compliance with the Data Protection Act 1998, and its introduction responded to issues identified by Internal Audit and external Auditors such as the Information Commissioner Office and the Public Service Network Authority.

In response to a question the Head of E-Government confirmed that she was not aware of any areas where information security was being compromised as a result of software issues, but that she would provide further clarification on this matter to Councillor M Davidson.

The Committee APPROVED the Information Security Policy.

22. Corporate Improvement Programme Update
Fios as Ùr mu Phrògram Leasachaidh Chorporra

There was circulated Report No. FHR-107-13 (291kb pdf) by the Assistant Chief Executive which advised that Corporate Improvement Programme (CIP) projects had started and were progressing well with a target to achieve a further £5.98m in efficiency savings having been set for the period 2013/14 & 2014/15.  Some slippage was reported for two projects, and the report highlighted the mitigating actions being taken to ensure these projects and related savings were delivered on target.

Discussion focused on the opportunities through the use of technology to reduce the requirement for the paper copies of agendas, reports and other information issued to Members, on the basis this would achieve savings on postal and printing costs.

It was confirmed that work was ongoing within the Programme’s Information Management workstream to investigate the use of technology so that Officers worked less with paper, and, if successful, consideration would be given to extending this thereafter to Members. 

The Committee NOTED the good progress with the delivery of the Corporate Improvement Programme and the mitigating actions being taken to ensure the Programme and savings were delivered on target. 

23. Quarterly Performance Reports
Aithisgean Dèanadais Ràitheil

a. Chief Executive’s Service

There was circulated Report No. FHR-108-13 (271kbpdf) by the Chief Executive which provided details of a review of the Council’s Statutory Performance Indicators (SPI).  Information was provided on which SPIs could be reported on either annually or quarterly basis by the Chief Executive’s Services.  For those that could be reported on a quarterly basis a performance report for Quarter 1 of 2013/14 had been provided.

The Committee NOTED the Statutory Performance Indicators.

b. Housing and Property Service

Declaration of Interest - Mr F Parr declared a non-financial interest in this item on the grounds that a family member was employed by the Housing and Property Service but, having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that his interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-109-13 (232kb pdf) by the Depute Chief Executive/Director of Housing and Property which provided information on how the Housing and Property Service performed in relation to Statutory Performance Indicators during the first quarter of 2013/14. The report advised that The Scottish Housing Regulator had set out the performance indicators that it would use to form part of its scrutiny of landlords. These replaced statutory performance indicators for housing from April 2013, with the Council required to make its first Annual Return on the Charter to the Scottish Housing Regulator and annual report to tenants in May 2014.

The Chair reported that an appropriate version of the new format of reporting would be presented to Area Committees. 

In discussion some Members expressed concern that the report did not contain comparable information for previous years or include performance targets as had been provided in previous reports, and requested that this information be included in future reporting.

Responding to Members concerns, the Head of Housing explained that most of the new indicators were not directly comparable with previous statutory performance indicators, and therefore it would be necessary to build up trend information over time. He also reported that specific targets would be incorporated into the Housing and Property Service Plan which would be reported to the next meeting of the Committee on 9 October 2013.

The Head of Housing further advised that information on performance and trends was available at a local level through reports to ward business meetings and that he would seek to address any gaps identified by Members in future ward reports. He advised that the current format of ward reporting was based on the previous indicators but that the process of migrating to the new indicators had commenced. He acknowledged that this information was not currently in the public domain but that discussions were ongoing with the Corporate Manager in regard to the format of future performance reports to the Area Committees and the possibility of incorporating a ward summary within these reports.

Thereafter, the Committee NOTED the information provided on housing performance in quarter 1 covering the period 1 April 2013 to 30 June 2013.

c. Finance Service

There was circulated Report No. FHR-110-13 (351kb pdf) by the Director of Finance which provided a review of Statutory and Key Performance Indicators.  Information was provided on which SPIs could be reported annually or on a quarterly basis by the Finance Service.  For those that could be reported on a quarterly basis a performance report for Quarter 1 of 2013/14 had been provided.

The Committee APPROVED the new corporate approach to Statutory and Key Performance Indicators, and the initial reporting for the Finance Service in respect of Quarter 1 from 1 April to 30 June 2013.

24. Amendments to Organisational Structures/Establishments
Atharrachaidhean do Structaran Eagarachail/Ionadan 

There was circulated Report No. FHR-111-13 (127kb pdf) by the Assistant Chief Executive which recommended amendments to organisational structures/establishments as a consequence of proposals from Service Directors.

The proposals contained in the report showed an overall net increase of 6.61 posts at an overall net cost of £169,500 for proposals which had to be met from Service budgets. There was also an extension of seven temporary posts which were externally funded at a cost of £215,000, and also an increase of 8.5 new externally funded posts.

The Committee APPROVED the amendments to the staffing establishment and other staffing changes as detailed in Appendix 1 to the report.

25. Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The following Minutes of Meetings were circulated for confirmation and APPROVED:-

i. Appeal Committee held on 11 June 2013 (133kb pdf);
ii. Fairtrade Steering Group held on 18 June 2013 (185kb pdf);
iii. Early Retirement Sub-Committee held on 29 May 2013(83kb pdf) and
26 June 2013 (83kb pdf);
iv. Joint Consultation Group held on 28 June 2013 (208kb pdf);
v. Central Safety Committee held on 28 June 2013 (161kb pdf) ; and
vi. Head of Service Recruitment Panel on 15 August 2013(75kb pdf).

There was also circulated and NOTED a copy of the note from the meeting of the Welfare Reform Working Group which was held on 18 June 2013 (171kb pdf).

26. Exclusion of The Public
Às-dùnadh a’ Phobaill

The Committee RESOLVED that, under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting during discussion of the following items on the grounds that they involved the likely disclosure of exempt information as defined in Paragraphs 6 & 9 of Part 1 of Schedule 7A of the Act.

27. ICT Executive Board (Members): Minutes of Meeting
Buidheann-obrach TFC Bhall: Geàrr-chunntas Coinneimh

There was circulated to Members only Minutes of Meeting of the ICT Executive Board (Members) held on 3 July 2013 and 16 August 2013, the terms of which were APPROVED.

28. Unified Communications
Pròiseact Chonaltraidhean Aonaichte

There was circulated to Members only Report No. FHR/112/13 by the Assistant Chief Executive which provided an update on the progress with the Unified Communications Project which outlined the strategic recommendation in relation to a new Unified Communications solution for the Council.

Following consideration, the Committee:-

i.   NOTED the Unified Communications Strategy; and
ii.  AGREED to continue to pursue the preferred Option 3, and that a report
    be brought back to the Committee outlining progress along with detailed
    costs and savings.

29. ResourceLink: Suspension of Contract Standing Orders
Ceangal Goireis – Toirt Seachad Cunnradh

There was circulated to Members only Report No. FHR/113/13 by the Director of Finance which sought approval to homologate the decision taken by Officers, in consultation with the Chair and Vice-Chair of Finance, Housing and Resources Committee, to suspend Contract Standing Orders.

The Committee AGREED to homologate the decision taken by Officers in consultation with the Chair and Vice-Chair of Finance, Housing and Resources Committee, to suspend Contract Standing Orders and award a contract for specialist ResourceLink advice without seeking a competitive quote.

30. Debts Recommended to be Written-off
Fiachan air am Moladh airson an Sgrìobhadh Dheth

There was circulated to Members only Report No. FHR/114/13 by the Director of Finance which, in accordance with good accounting practice, recommended the write-off of uncollectable debts.

The Committee AGREED that the total value of debts as detailed in the report be written-off.

31. Land and Property
Talamh agus Taigheadas

There was circulated to Members only Report No. FHR/115/13 by the Depute Chief Executive/Director of Housing and Property which sought approval to purchase two areas of land for potential housing projects using the Highland Council’s Landbank facility.

The Committee APPROVED the recommendations detailed in the report.

32. Property Transactions Monitoring Report
Aithisg Sgrùdaidh Ghnothachasan Seilbhe

There was circulated to Members only Report No. FHR/116/13 by the Depute Chief Executive/Director of Housing and Property which provided details of the General Fund and Property Account transactions approved by the Head of Property Partnerships under delegated authority.  The report also advised on sales targeted for completion within the financial year 2013/14 and summarised progress.

The Committee NOTED progress on property transactions and sales with anticipated settlement within financial year 2013/14; and General Fund transactions approved by the Head of Property Partnerships.

 The meeting ended at 2.35 pm.