Agendas, reports and minutes

Minutes of Meeting of the Finance, Housing and Resources Committee held in the Council Chamber, Council Headquarters, Glenurquhart Road, Inverness on Wednesday 9 October 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 N Donald, Mr G Farlow, Mr J Ford, Mr L Fraser, Mr D Hendry, Mr R Laird, Mr C Macaulay, Mrs I McCallum, Mr D MacKay, Mr  A Mackinnon, Mr F Parr, Mr G Phillips, Mr H Wood, Ms J Douglas (substitute), Mr K Gowans (substitute), Mr G Rimell (substitute)

Non Members also Present:

Ms J Campbell, Mr B Clark, Mr A Duffy, Mr B Lobban, Mrs L MacDonald, Mr G MacKenzie, Ms A MacLean, Mrs M Paterson, Ms F Robertson, Mr J Rosie, Mr R Saxon,

Officials in attendance:

Ms M Morris, Assistant Chief Executive
Ms T Urry, Interim Director of Housing and Property
Mr D Yule, Director of Finance
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
Ms C Campbell, Maintenance and Service Support Manager, Housing and Property Service
Mr J Batchelor, Head of Human Resources, 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 Grieve, ICT Reprovision Programme Manager, Chief Executive’s Service
Mr K Fox, ICT Operations Manager, Chief Executive's Service
Mr P Mallard, Senior Information & Security Officer, Chief Executive’s Service
Ms E Johnston,  Strategic Performance Manager, Chief Executive’s Service
Mr M Watters, Senior Web Development and Freedom of Information Officer, Chief Executive’s Service
Mr N Huggan, Senior ICT Planning & Performance Officer, Chief Executive’s Service
Mr S Carr, Policy Officer - Climate Change, Chief Executive’s Service
Mrs L Dunn, Principal Committee Administrator, Chief Executive’s Service
Ms A Macrae, Committee Administrator, Chief Executive’s Service
Mr A MacInnes, Administrative Assistant, 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

1.  Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Mr B Gormley, Mr T Maclennan, Mr H Morrison, Mr J Stone and Mrs C Wilson.

2.  Declarations of Interest
Foillseachaidhean Com-pàirt

Items 12, 34: Mr D Fallows (Non-Financial)
Items 4, 5, 14, 24: Mr A Christie (Non-Financial)
Items 7, 13, 14, 15, 16, 17: Mr G Farlow (Financial) and Item 4 (Non-  Financial)
Item 35: Ms J Douglas (Non-Financial)

3.  Good News Stories
Deagh Naidheachdan

Home Energy Efficiency Programme for Scotland

As part of the Home Energy Efficiency Programme for Scotland, EON Energy was working with the Council to deliver free energy efficiency measures for homeowners in Highland.  Areas covered by the scheme included Landward Caithness, Aird and Loch Ness, Inverness Central and Upper Achintore and Fort William.  The scheme would also be available to the private rented sector and landlords were encouraged to take part in the scheme.

In response to a request for the scheme to be rolled out to all areas of the Council, it was advised that the Council had put £1m a year into the Carbon Clever Programme and the Council was meeting regularly with Energy providers to discuss carbon mitigation issues, and ways to support households with their energy costs.

Finance Service Items

4.  Welfare Reform 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 and Mr G Farlow declared a non-financial interest as Director of North West Sutherland Citizen’s Advice Bureau, 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-117-13 (78kb pdf) dated 1 October 2013 by the Director of Finance which provided an update on the fast moving situation that was Welfare Reform.

The report took an initial look at the implications for the Council of the UK Government announcement that Inverness Job Centre was to be the first in Scotland where the Department for Work and Pensions (DWP) would introduce Universal Credit from November 2013.  It also provided statistics on the under occupancy; rent arrears; Discretionary Housing Payments that were providing short term mitigation for some households; the benefit cap; and the Scottish Welfare Fund.

Members welcomed that the Scottish Welfare Fund would continue in both financial years 2014/15 and 2015/16 and that there had been additional funding from the DWP for discretionary housing payments (DHP).  However there were no guarantees that this funding from the DWP would be maintained for future years and representations were being made by the Council for this funding to continue.  It was requested that the Council should be more proactive in promoting the uptake of DHP.

In terms of the Fife Council tribunal case where an appeal for ‘boxrooms’ not being classed as bedrooms was upheld in terms of the spare room subsidy under occupancy rules, it was confirmed that the Council was adopting the space standards set out in the Housing (Scotland) Act 1987 as a criteria for classifying whether a room was a bedroom. It was requested that the actual space standards used be issued to Members for information.

In terms of the scale of the problem, it was estimated that the loss of benefits as a result of under occupancy rules for people in Highland amounted to £350,000 per quarter for all tenants (£250,000 per quarter for Council tenants).  Sufficient resources were required to pay for the loss of benefits and therefore the additional monies received from the DWP to cover this was vital.  It was further stressed that it must be made clear that the Council had a duty to pursue rent arrears and that those not recovered would come out of the Housing Revenue Account, i.e. from other tenants.

It was confirmed that the Council had a rent arrears escalation process and tenants were urged to contact the Council as soon as possible in order that their arrears could be discussed. It was confirmed that changes had been made to rent arrears letters to refer specifically to the spare room subsidy.

Reference was made to a meeting of the Council’s Welfare Reform Group on 11 October 2013 which would meet again with the three Members of Parliament representing Highland Constituencies to review current progress on Welfare Reform issues and mitigation measures.  In terms of the statistics provided in the report, it was requested that there should be a detailed breakdown of them in relation to the following which would help in the discussions with the MPs:-  the number of people affected by the Benefit cap; level of rent arrears; how many new clients had come forward since the introduction of Welfare Reform; how many clients already had existing arrears; a monthly breakdown of the statistics relating to the Highland Foodbank and how these figures compared to last year’s figures.

In terms of the Universal Credit Pilot Scheme in Inverness Job Centre, it was highlighted that this would cover a large geographical area and not just the City of Inverness.  Council Officials were currently in Manchester assessing other pilot schemes and what lessons could be learned from them.   It was requested that information on the type of claims identified in the Pilot, how long the pilot would last, and how it would be extended to full implementation be sought from the DWP.

Thereafter, the Committee:-

i.  NOTED the updated information contained in the report;
ii.  NOTED the relevant statistics shown in the attached Appendix and that a
    detailed breakdown of the statistics be provided for Members;
iii. AGREED that the Council be represented as appropriate on the local
    partnership forum of officers dealing with Universal Credit issues;
iv. NOTED that the space standards set out in the Housing (Scotland) Act 1987
    would be provided for Members information;
v. NOTED that further information on the type of claims identified in the Universal
    Credit Pilot Scheme in Inverness Jobcentre, how long the pilot would last, and
    how it would be extended to full implementation would be sought from the
    Department of Work and Pensions; and
vi. NOTED that consideration would be given to the Council being more proactive
    in promoting the uptake of Discretionary Housing payments.

5.  Finance Service Plan
Plana Seirbheis an Ionmhais

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 the interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-118-13 (1521kb pdf) dated 27 September 2013 by the Director of Finance introducing the draft Finance Service Plan, updated for 2013/14 which outlined the enabling actions and key performance results which would deliver ‘Working together for the Highlands’, the Programme of the Highland Council and the statutory and core functions of the Service including the Single Outcome Agreement.

In particular it was advised that the Welfare Reforms were a significant challenge to the Service in terms of ensuring that systems were operating  efficiently and processing benefit claims. The Service was working hard to  ensure that people were maximising the benefits that they were entitled to  and managing this in a changing legislative environment.  Staffing resources  were being monitored to ensure that the resources were sufficient to meet the  challenges posed by Welfare Reform. 

Supporting local businesses was a key aim for the Highland economy and the Service was working hard to ensure that invoices were paid on time. There  had also been a big take up of the Small Business bonus scheme, which was  the highest take up in any local authority area in Scotland.   Although the Service would continue to have challenges, cost reductions would be achieved through efficiencies and service improvement.

Members congratulated Officials for their work which had resulted in a substantial uptake in the Small Business Bonus Scheme, and thereafter, the Committee APPROVED the Finance Service Plan.

6.  Finance Service Revenue Monitoring to 31 August 2013
Sgrùdadh Teachd-a-steach Seirbheis an Ionmhais

There was circulated Report No. FHR-119-13 (37kb pdf) dated 18 September 2013 by the Director of Finance which provided information on the revenue monitoring position for the Finance Service for the period 1 April to 31 August 2013.

The Service had incurred net expenditure of £6.487m against an annual budget of £11.710m and at this point in the year an overspend of £0.413m was projected.

In terms of delivering savings in Loan charges to compensate for overspends in Services budgets, the more this was done, the less flexibility there would be in balancing the financial accounts at the end of the year, and therefore the use of these savings was carefully monitored.  The real challenge was for Services to keep their budgets on target. 

The Committee AGREED the Finance Service Revenue Monitoring Report for the period to 31 August 2013.

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

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-120-13 (84kb pdf) by the Director of Finance which presented the revenue budget expenditure position for the period to 31 August 2013 and the projected year end position.

It was reported that the estimated year end overspend of £0.324m was a slight improvement on the position reported to the last Committee in August 2013 when a year-end overspend of £0.543m had been advised.

In particular a request from the Planning, Environment and Development Committee at their meeting on 18 September 2013 had been made to earmark £0.400m of the 2013/14 employability budget to be used in 2014/15 to sustain employability activity during the period when there was no match funding remaining from 2007-2014 European Social Fund.

In particular, it was queried why there was an increase in the Members’ expenses budget of £13,000 compared to that reported to the August Committee meeting.  A response to Councillor J Douglas would be provided after the meeting.  In terms of the budget pressure on street lighting, it was understood that this was due to an increase in the number of street lights, but more detail on this would be provided for Councillor I McCallum. 

In terms of the general pressures facing Services meeting their budget targets, it was up to Services to find equivalent savings proposals and for the Service Committee to consider these proposals.  At this stage in the financial year there was only a small overspend in the corporate budget forecast, and it was therefore not necessary to consider additional funding to Services at this stage.  It was further reported that major reviews of Services budgets were currently being undertaken, commencing with TEC Services, and this process would take time to complete.

Thereafter, Mr L Fraser seconded by Ms J Douglas MOVED that the Revenue Expenditure Monitoring Statement for the financial year 2013/14 be noted and not approved as recommended in the report.

As an AMENDMENT, Mr D Fallows, seconded by Mr K Gowans, moved  approval of the recommendations detailed in the report.

On a vote being taken, the Motion received 7 votes and the Amendment received 11 votes, with no abstentions, and the AMENDMENT was CARRIED, the votes having been cast as follows:-

For the Motion:
Davidson, M; Donald, N; Douglas, J; Fraser, L; Mackay, D (W2); Mackinnon, A; McCallum, I

For the Amendment:
Alston, D; Christie, A; Fallows, D; Ford, J; Gowans, K; Hendry, D; Laird, R; Macaulay, C; Parr, F; Rimell, G; Wood, H

Decision

The Committee:-

i.  APPROVED the Revenue Expenditure Monitoring Statement for the financial
    year 2013/14 which showed a predicted net overspend of £0.324m and
    NOTED the management response to the predicted overspend; and
ii. AGREED to earmark £0.400m in respect of the employability underspend from
    the 2013/14 Planning, Environment and Development budget for use in
    2014/15.

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

There was circulated Report No. FHR-121-13 (46kb pdf) dated 30 September 2013 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 31 August 2013 and the projected year end position for 2013/14.

It was reported that from a net programme budget of £87.211m, the expenditure to date on the programme was £31.928m and the year-end estimated outturn was £93.769m.  The estimated year-end position was an overspend of £6.558m.

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, it was recommended that this issue should be considered by the Caithness and Sutherland Area Committee in the first instance and, once a business case had been developed, a request could be made to this Committee for a contribution from the Capital Discretionary Fund.

The Committee APPROVED the financial position of the General Fund and HRA capital programmes as at 31 August 2013.

9.  Treasury Management: Summary of Transactions  August 2013   
Rianachd Ionmhais: Geàrr-chunntas de Ghnothaichean

There was circulated Report No. FHR-122-13 (49kb pdf) dated 18 September 2013 by the Director of Finance which provided details on the Treasury Management transactions for August 2013 reflecting activity undertaken to manage the Council’s cash flows, and borrowing to fund capital expenditure.  The report was submitted in compliance with CIPFA’s Code of Practice on Treasury Management and the Council’s approved Financial Regulations. 

The Committee NOTED the Treasury Management Summary of Transactions report.

10.  Annual Treasury Management Report 2012/13 
Aithisg Bhliadhnail Rianachd Roinn an Ionmhais 2012/13

There was circulated Report No. FHR-123-13 (110kb pdf) by the Director of Finance which introduced the Annual Treasury Management Report for 2012/13 prepared in compliance with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) revised Code of Practice on Treasury Management in Local Authorities. The revised Code was adopted by the Council on 3 March 2010.

The report highlighted the Council’s treasury management activities undertaken in the year and compared them to the expected activities contained in the annual Treasury Strategy Statement which was approved by the Council on 1 March 2012.

In compliance with the Code, and following consideration by the Committee, the attached Annual Treasury Management Report for 2012/13 would be submitted to the Council for approval.  In addition, the Prudential Code required the Council to report the actual prudential indicators after the financial year end and they were contained in the report.

In terms of the on-going EU sovereign debt crisis, uncertainty in financial markets created risks which seemed to create a move of investments towards secure loans.  As a result, the cost of the Council’s borrowing could go down as Government Gilts were seen as a safe haven in times of insecurity.  The degree of exposure that the UK had to Greece through the UK banking sector was uncertain.  However, interest rates would be key in terms of budget planning for the next financial year.

The Committee AGREED that the Annual Treasury Report 2012/13 be submitted to the Council for approval.

11.  North Coast Leisure Centre 
Ionad Cur-seachad a’ Chladaich a Tuath

There was circulated Report No. FHR-124-13 (50kb pdf) dated 4 September 2013 by the Director of Education, Culture and Sport Service which requested approval for a contribution of £15,000 from the Capital Discretionary Fund to complete the funding package that would enable the replacement and up-grading of essential plant, equipment and facilities at the North Coast Leisure Centre in Bettyhill.

The project costs and funding arrangements were detailed in the report.  The project demonstrated a good fit with a number of commitments in the Programme for the Highland Council.

The Committee APPROVED a contribution of £15,000 for the project from the Capital Discretionary Fund.

Housing and Property Service Items

12.  Housing Development Initiatives
Iomairtean gus Taigheadas a Leasachadh

Declaration of Interest – Mr D Fallows declared a non-financial interest in this item as a Director of the Highland Housing Alliance, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-125-13 (34kb pdf) dated 27 September 2013 by the Interim Director of Housing and Property which sought approval for a loan to be offered to the Highland Housing Alliance and for purchase of four housing properties in Alness.

The report detailed the proposals to purchase four houses at Invercarron, Alness for use as Temporary Accommodation, reducing the number of Bed & Breakfast rooms used by the Council.  If agreed, it was proposed that the combined purchase value should be funded through the “Alternative Temporary Accommodation” project.

It was also proposed to offer a further loan to the Highland Housing Alliance to meet costs associated with a housing development site at Glendoe Terrace which would, subject to planning, provide 15 new Council houses. It was proposed that the loan be funded from monies held within the Council’s Landbank Fund.

The Committee AGREED that:-

i.  four properties at Invercarron, Alness be purchased as part of the Alternative
    Temporary Accommodation programme on terms and conditions to be agreed
    by the Interim Director of Housing and Property; and
ii. a loan of up to £60,000 be offered to the Highland Housing Alliance to carry
    out works to land at Glendoe Terrace, Inverness on terms and conditions to
    be agreed by the Interim Director of Housing and Property.

13.  Scottish Housing Quality Standard Delivery Plan
Plana Lìbhrigidh Inbhe Càileachd Taigheadas na h-Alba

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-126-13 (200kb pdf) dated 24 September 2013 by the Interim Director of Housing and Property which provided an update on the Council’s Standard Delivery Plan, setting out progress to 31 March 2013 and the projected investment required to achieve compliance with the Scottish Housing Quality Standard. 

The report also provided detail on the Renewable Heat Incentive which would constitute a major income stream from 2014 onwards and demonstrated that the renewable heating programme was a cost-effective means of improving the energy efficiency of Council stock.  Members were also asked to approve an increased HRA Capital Programme to 2015, the increased cost of which would be neutralised by the income received from the Renewable Heat Incentive.

Members were advised that there had been considerable progress in working towards the Standard Delivery Plan since 2007 and also since 2012.  However it was a basic Standard and in many cases tenant expectations might exceed the Standard.  The Scottish Government intended to introduce an Energy Efficiency Standard for Social Housing which would set targets for energy efficiency compliance by 2020.  The Committee would be advised, in due course, of the likely impact this new Standard would have on the HRA capital programme after 2015.

In response to questions, it was explained that investment over the next two years was to target Council houses which required to be upgraded to comply with the Scottish Housing Quality Standard.  Where electric wet heating systems had previously been installed in properties and they complied with the standard, these properties would not be revisited in the next two years.  However, post 2015 it was expected that there would be new standards with potentially even higher energy efficiency requirements, meaning that further heating changes and other energy efficiency work would be required. In response to a query it was reported that further information on SAP failures would be provided to Councillor I McCallum. 

Thereafter, the Committee APPROVED the annual update of the Standard Delivery Plan attached as Appendix 1 to the report.

At this point the meeting adjourned for a lunch break and the meeting resumed again at 1.45 p.m.

14.  Housing and Property Service Plan
Plana Seirbheis an Taigheadais is na Seilbhe

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 the 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-127-13 (825kb pdf) dated 16 September 2013 by the Interim Director of Housing & Property which introduced the 2013/14 update to the Service Plan for the Housing and Property Service.  It detailed how the Service would contribute to the delivery of the Council’s Programme, Working Together for the Highlands. 

The Chair clarified that Members were being invited to approve the Service Plan, and the targets for the Scottish Housing Regulator’s performance indicators set out in Appendix 1 to the report.

In regard to the section of the Plan relating to empowering communities and engaging meaningfully with the third sector, it was suggested that over the coming year there was a need to build on current good practice in regard to engagement between the Council, the third sector and tenants and to develop a more strategic approach in this regard.  It was also suggested that reporting on specific examples of this type of engagement at an area level could be progressed through the Area Committees. Further it was suggested that in addition to setting out what the Council intended to do for communities, there was a need for greater focus to be placed on actions to empower communities.

During further discussion reference was made to the need to consider how best to capture and respond to tenants views given that the Scottish Housing Regulator would be placing increased emphasis on tenant inspections and experiences. A point was also raised in regard to the lack of reference to ‘communities’ within the Property section of the Plan and specifically the fact there was no asset transfer policy for dealing with community groups.

In response to questions clarification was provided on the targets set out in the Plan for the percentage of Council buildings in which all public areas would be suitable for and accessible to people with a disability by 2014.  The Chair also provided an assurance that the Housing and Property Service continually sought to limit Council house voids through a range of measures but noted that in certain cases there were mitigating circumstances in regard to some voids.

Thereafter, the Committee APPROVED the Housing and Property Service Plan and the targets for the Scottish Housing Regulator performance indicators set out at Appendix 1 of the Plan.

15.  Housing and Property Service Revenue Monitoring
Sgrùdadh Teachd-a-steach Seirbheis an Taigheadais is na Seilbhe

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-128-13 (142kb pdf) by the Interim Director of Housing and Property which presented the current position to 31 August 2013 with regard to the 2012/13 Revenue Monitoring Statements for the Housing Revenue Account, other Housing and Property Revenue Account, Property Revenue Maintenance and the Building Maintenance Account.

The Committee APPROVED the monitoring statements to 31 August 2013 for the Housing Revenue Account, Other Housing and Property Revenue Account and Building Maintenance account and progress with the Property Revenue Maintenance programme.

16.  Housing and Property Service Capital Budgets: Monitoring to 31 August 2013
Buidseat Calpa Seirbheis an Taigheadais is na Seilbhe

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-129-13 (134kb pdf) by the Interim Director of Housing and Property which gave an update on the position regarding expenditure to 31 August 2013 for the HRA Capital, Non HRA Housing Capital and Property Capital Programmes.

The Committee APPROVED the current position to 31 August 2013 for the HRA Capital, Non HRA Housing Capital and Property Capital accounts.

17.  Internal Audit Review Report
Housing Rents and Housing Stores/Repairs & Maintenance
Aithisg Sgrùdaidh In-sgrùdaidh
Màil Thaighean agus Stòras Thaighean/Càraidhean & Gleidheadh

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-130-13 (97kb pdf) dated 26 September 2013 by the Interim Director of Housing and Property which informed Members of the objectives and findings of Audit Reports presented to the Audit and Scrutiny Committee on 26 September 2013 in relation to housing rents and housing stores/repairs and maintenance, and updated them on progress against the Action Plans.

The Committee NOTED the findings of the Audit Reports presented to the Audit and Scrutiny Committee on 26 September 2013 and the action being taken to implement the recommendations.

18.  Annual Progress Report on the Carbon Management Plan 2012/13  Plana Rianachd Carboin: Aithisg Bhliadhnail 

There was circulated Report No. FHR-131-13 (158kb pdf) dated 30 August 2013 by the Assistant Chief Executive which reviewed the performance of the Carbon Management Plan to the end of March 2013.

The report advised that since the baseline year of 2007/08, carbon emissions had reduced by 10% or 6,405 tonnes CO2. Although a sizeable reduction, this was less than the 15% target (3% p.a.). Carbon emissions from all sectors had decreased since 2007/08, with the exception of street lighting where emissions showed an increase, partly because the network continued to expand, and partly because the method of calculating emissions had changed in 2011/12.

It was confirmed that while carbon emissions had reduced, total costs had increased by 11% from £18,259,590 to £20,221,378 between 2007/08 and 2012/13 due to rising energy and fuel prices.  By taking action the Council had avoided costs of £2.3m in 2012/13 (costs the Council would have incurred had consumption not decreased). Total costs through the Carbon Reduction Commitment Energy Efficiency scheme (carbon tax) additionally amounted to £453,540 in 2012/13.

It was reported that in 2012/13 the Council’s carbon emissions had increased by 3%.  This was the only year that emissions had increased since 2007/08 and was largely due to a cold and long winter resulting in an increased heating demand and an extended period of winter road maintenance. Without on-going carbon emission reduction measures, the Council’s carbon emissions would have been significantly higher.

Members welcomed the report and commented on the positive impact of the Plan in mitigating the effects of and adapting to climate change in the Highlands. Specific reference was made to the fact that the Council had achieved re-accreditation for the Carbon Trust Standard which it had held since 2009, and that staff travel carbon emissions had decreased by 704 tonnes over the period 2007/08 to 2012/13, exceeding the targets set out in the Carbon Management Plan.  The continuing challenges and work on-going in regard to street lighting consumption in the Highlands was also highlighted. 

Discussion also focused on the Council’s Carbon CLEVER Highands initiative which would be launched at a conference in November 2013. It was suggested that the measures proposed under the initiative would bring a range of benefits to people in the Highlands. In particular it would assist communities to save money, tackle fuel poverty, promote a sustainable public transport network, and achieve health benefits.

Members also commented on the need for further debate and work to be undertaken under the Carbon CLEVER Programme to develop initiatives and policies that would contribute to the sustainability of communities in the Highlands.

Members further welcomed the success of the Council’s recent Cycle to Work Scheme, noting that staff had purchased a total of 493 bikes under the Scheme.

Thereafter, the Committee NOTED:-

i.  the progress in reducing carbon emissions by 10% from 2007/08 – 2012/13;
ii. that in 2012/13 emissions had reduced from the year before from business
    travel, internal waste, and top water consuming properties, but that there
    was little change in emissions from fleet and increases in emissions from street
    lighting and from energy use in Council buildings.  Overall emissions increased
    by 3% in 2012/13. This was largely attributed to a long and cold winter which
    had resulted in an increased heating demand and period of winter
    maintenance;
iii. all future reporting would be done against the scope of the revised Carbon
    Management Plan 2013-20 which was agreed at a meeting of the Committee
    on 10 April 2013;
iv. progress for 2012/13 would also be reported back to the Scottish
    Government in spring 2014 as part of the Council’s commitment towards 
    Scotland’s Climate Change Declaration; and
v. in June 2013, the Council committed to achieving a carbon neutral Inverness in
    a low carbon Highlands by 2025; Carbon Clever Highlands. The Carbon
    Management Plan would contribute to this vision by continuing to identify,
    measure, monitor, and reduce carbon emissions across a wide range of Council
   activities.

19.Scottish Climate Change Adaptation Programme: Draft Consultation Response
Co-chomhairle Riaghaltas na h-Alba air Prògram Freagarrachaidh Atharrachadh Gnàth-shìde

There was circulated Report No. FHR-132-13 (129kb pdf) dated September 2013 by the Assistant Chief Executive which set out a draft response to the Scottish Government consultation on “The Scottish Climate Change Adaptation Programme”. The purpose of the consultation was to seek views on the overall framework and direction of the programme. The consultation questions and recommended response was presented at Appendix 1 to the report.

Members welcomed the terms of the consultation response.  In discussion the point was emphasised that there was a need to consider carefully the impacts of any action to be progressed under the Programme on sustainable communities and vulnerable people in the Highlands.

The Committee:-

i.  AGREED the draft consultation response attached at Appendix 1 to the
    report; and
ii. NOTED that the Council’s Adaptation Strategy was currently being reviewed
    and this would be brought back to a future meeting of the Finance, Housing
    and Resources Committee.

20.  Policy Review
Ath-sgrùdadh Poileasaidh

a. Records Management Policy
Ath-sgrùdadh Poileasaidh Rianachd Chlàran

There was circulated Report No. FHR-133-13 (37kb pdf) dated 16 September 2013 by the Assistant Chief Executive which advised of the annual review of the Records Management Policy and sought approval of the updated Policy.

The Committee APPROVED the revised Records Management Policy.

b. Data Protection Policy
Poileasaidh Dìon Dàta

There was circulated Report No. FHR-134-13 (160kb pdf) dated 25 September 2013 by the Assistant Chief Executive which informed Members on the new Data Protection Policy and sought approval of the Policy.

In response to a question it was confirmed that under the Data Protection Act 1998, it was the individual responsibility of Members to register as data controllers with the Information Commissioner. A number of Members expressed concern that they had been unaware of the requirement to register in this regard.

In response to this issue it was confirmed that specific advice and guidance on the requirements of the Act in terms of registering with the Information Commissioner would be circulated to assist Members on this matter. 

During further discussion the Assistant Chief Executive confirmed that the Council, through its procurement process, required its sub-contractors and suppliers to have the appropriate registrations under the Data Protection Act. She undertook to confirm that position with the Head of Procurement.

The Committee APPROVED the Data Protection Policy as set out in Annex A to the report and AGREED that further advice and guidance be circulated to Members in respect of registration with the Information Commissioner as data controllers.

c. Information Management Policy
Ath-sgrùdadh Poileasaidh Rianachd Fiosrachaidh

There was circulated Report No. FHR-135-13 (33kb pdf) dated 16 September 2013 by the Assistant Chief Executive which informed Members on the annual review of the Information Management Policy and sought approval of the updated Policy.

The Committee APPROVED the revised Information Management Policy.

21.  Annual ICT Strategy Review
Ath-sgrùdadh Ro-innleachd TFC

There was circulated Report No. FHR-136-13 (43kb pdf) dated 18 September 2013 by the Assistant Chief Executive which provided information on the work that had been undertaken to review and revise the ICT Strategy for the Council.

The report explained that the Highland Council’s Strategy for Information and Communication Technology (ICT) for the period October 2012 to March 2017 had been approved at the Finance, Housing and Resources Committee in August 2012.  A commitment had been made to review the Strategy on an annual basis to ensure that it was kept up to date with developing National and Local Government ICT Strategies, legislative changes and other strategically significant changes within the ICT sector, as well as the changing business needs of the Council.  Access to the revised ICT Strategy had been provided via a web link.

In response to a question, the Assistant Chief Executive explained that the Council connected to other government agencies through the secure Public Services Network (PSN), and that in the current year the UK Government had introduced stringent security requirements for connection to the PSN and was adopting a zero tolerance approach to compliance. Therefore, to achieve its annual accreditation to use the secure network the Council, in common with other local authorities, had to address security issues that previously had been allowed as being acceptable risks.  This included restricting the functionality of some devices such as Blackberrys to ensure secure transmission of e-mails and data. 

Members were advised that ICT Services, in conjunction with Fujitsu, were working to support Members and staff through the change process.

Thereafter, the Committee APPROVED the revised ICT Strategy.

22.  ICT Services Performance Report: March to August 2013
Aithisg Dèanadais Sheirbheisean TFC

There was circulated Report No. FHR-137-13 (189kb pdf) dated 17 September 2013 by the Assistant Chief Executive which gave an update about the key achievements of the ICT Services Team, the delivery of services by the Council’s ICT providers principally Fujitsu Services and Vodafone for the period from March to August 2013.

In regard to the Community Benefit Programme it was reported there was a continuing focus on achieving the outcomes referred to in the report with specific reference to innovation sessions to Highland Schools and Young Carers.  In regard to the available training places for Young Carers it was reported that the Director of Health and Social Care was assisting in identifying young people who might benefit from the scheme.

Thereafter, clarity was provided on the definition of the different severity levels as outlined in the report which it was confirmed reflected the terms of the Contract, noting there was no wider industry definition.  It was also noted that the Contract covered a number of arm’s length organisations, specifically High Life Highland, Integrating Care in the Highlands, Valuation Joint Board and the Electoral Registration Office.  

In discussion Members queried whether the new Scottish Wide Area Network (SWAN) project could be used to provide wider broadband access to communities, particularly in rural areas.

Responding, the Assistant Chief Executive provided an overview of the Scottish Wide Area Network (SWAN) project which she explained would replace the Pathfinder North network and provide a secure network and access to high speed broadband for offices and schools in the Highlands and Islands. She explained that the network would have to comply with the UK Government’s new stringent security requirements for public service networks, and therefore it would not be possible to allow wider access to this network within communities.  

The Assistant Chief Executive continued that improved access to broadband for communities and businesses was being progressed through the separate Highlands and Islands Enterprise (HIE) Next Generation Broadband project. In this regard she advised that on 15 October 2013, HIE was to announce the details of the roll out of the first phase of the project and this would give Members an indication of the communities that would be covered in the initial stages of the project. However she cautioned that the project was to be rolled out between 2013 and 2016 and therefore some communities would not be included at this stage of the project. She also confirmed that the project aimed to have at least 84% coverage of premises by 2016.

In response to a further comment the ICT Re-Provision Programme Manager explained that while the procurement process for the SWAN project would purchase services from the infrastructure being installed through the HIE Broadband project, for the security reasons outlined above it would not be possible to provide a wider network connection through SWAN to communities.

Thereafter,the Committee NOTED:-

i. the content of the report; and
ii. that robust contract management and governance arrangements continued to
   be applied and pursued by the Council to the Fujitsu and Vodafone contracts.

23.  Annual Health and Safety Report 2012-2013
Aithisg Bhliadhnail Slàinte agus Sàbhailteachd

There was circulated Report No. FHR-138-13 (177kb pdf) dated 26 September 2013 by the Assistant Chief Executive which outlined the Council’s health and safety performance and achievements for the period 1 April 2012 to 31 March 2013 and set out the programme for the next 12 months.

Members welcomed the Annual Report and the progress achieved in 2012/13.  A point was raised on whether performance could be measured and monitored in regard to the response times for conducting health and safety inspections following an accident.

The Head of Personnel undertook to investigate this matter in conjunction with the Health and Safety Manager.

The Committee:-

i.  NOTED the achievements for 2012/13;
ii. APPROVED the health and safety plan for 2013/14.; and
iii. AGREED that the potential for performance to be measured and monitored in
    regard to the response times for conducting health and safety inspections
    following an accident, be investigated.

24.  Chief Executive’s Service Plan
Plana Seirbheis an Àrd-oifigeir

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 the interest did not preclude him from taking part in the discussion.

There was circulated Report No. FHR-139-13 (1294kb pdf) dated 20 September 2013 by the Chief Executive/Assistant Chief Executive introducing the draft Service Plan for the Chief Executive’s Service which outlined the enabling actions and key performance results which would deliver ‘Working together for the Highlands’, the Programme of the Highland Council and the statutory and core functions of the Service including the Single Outcome Agreement.

Responding to a point raised the Assistant Chief Executive explained that the Council had signed up to use the Crystal Mark Plain English Standard in June 2013, and work was on-going, particularly in relation to staff training, to allow the Standard to be rolled out across the organisation.

In regard to that section of the Plan relating to local engagement with and scrutiny of the police and fire services, Members requested that an update be provided to the next Council meeting on what representations were being made by the Council in respect of the proposed closure of the Fire Control Room based in Inverness and the reduction in Police offices in Highland. 

Thereafter, it was suggested that the Council’s Community Benefit Policy was no longer fit for purpose for either communities or developers.  Accordingly it was suggested that the Policy be reviewed to ensure community benefit from new developments was maximised.

A further point was raised in regard to whether the potential for the Council to run the traffic warden service was being investigated should Police Scotland decide it would no longer deliver the service.

It was confirmed that at the request of the Chief Executive an options appraisal was being carried out on the implications for the Council should Police Scotland decide to remove the road traffic warden service, and that this was due to be completed by the end of the month. This appraisal would include issues relating to the ability of the Council to issue fixed penalty notices and retain the income from that source.

Thereafter, the Committee:-

i.  APPROVED the Chief Executive’s Service Plan; and
ii. AGREED to request that an update be provided to the next meeting of the
    Council, on the representations being made by the Council in respect of the
    proposed closure of the Fire Control Room based in Inverness and the
    reduction in Police offices.

25.  Chief Executive’s Service and Members Revenue Expenditure Monitoring to 31 August 2013
Seirbheis an Àrd-oifigeir agus Buill: Sgrùdadh Caiteachas Teachd-a-steach

There was circulated Report No. FHR-140-13 (39kb pdf) dated 29 September 2013 by the Chief Executive which provided information on the revenue monitoring position for the Chief Executive’s Service for the period to 31 August 2013.

The Assistant Chief Executive advised of a correction to the figures in the report and confirmed that the projected underspend on the Chief Executive’s Service budget was £12,000 and not £22,000 as stated in Section 3 of the report.  However she confirmed that the correct figure had been recorded in the revenue expenditure monitoring statement appended to the report.

In response to a question it was confirmed that the figures shown in the monitoring statement for the percentage of annual expenditure related to financial years 2012/13 and 2013/14.

Arising from the report it was suggested that it would be helpful if a narrative on Members budgets could be provided in future monitoring reports to ensure transparency.

The Committee APPROVED the revenue monitoring report for the period 1 April 2013 to 31 August 2013, subject to the correction.

26.  Chief Executive’s Service: Capital Budget Monitoring 2013/14
Seirbheis an Àrd-oifigeir: Sgrùdadh Buidseat Calpa 2013/14

There was circulated Report No. FHR-141-13 (52kb pdf) by the Chief Executive which sets out the position on the Chief Executive’s Service 2013/14 capital budget for the period to 31 August 2013.

The Committee APPROVED the Chief Executive’s Service Capital budget monitoring report for the period to 31 August 2013.

27.  Internal Audit Review: Statutory Performance Indicators
Aithisgean Sgrùdaidh In-sgrùdaidh: Comharran Dèanadais Reachdail 2011-12

There was circulated Report No. FHR-142-13 (40kb pdf) dated 12 September 2013 by the Assistant Chief Executive advising that an Internal Audit Review of Statutory Performance Indicators had been considered by the Council’s Audit and Scrutiny Committee earlier this year. This was now presented to the Finance, Housing and Resources Committee for their consideration as part of the corporate governance process.

The Committee NOTED the outcome of Internal Audit Review, that appropriate action had been taken to address all of the recommendations made, and that the resulting improvement plan had been completed.

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

There was circulated Report No. FHR-143-13 (118kb pdf) dated 30 September 2013 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 reduction of 4.4 posts at an overall net cost of £11,000 for proposals which had to be met from Service budgets. 

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

29.  Minutes of Meetings
Geàrr-chunntasan Choinneamhan

The Committee APPROVED the following Minutes of Meetings:-

i. Joint Consultation Group (Administrative, etc, Manual and Crafts Staffing) held on 6 September 2013 (58kb pdf);
ii. Central Safety Committee held on 6 September 2013 (71kb pdf); and
iii. Fairtrade Steering Group held on 24 September 2013 (48kb pdf).

30.  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.

31.  ICT Members Working Group: Minutes of Meeting
Buidheann-obrach TFC Bhall: Geàrr-chunntas Coinneimh

There was circulated to Members only Minutes of Meetings of the ICT Executive Board (Members) held on 10 September and 26 September 2013, the terms of which were APPROVED.

32.  ICT Re-provision
Ath-sholar TFC

There was circulated to Members only Report No. FHR/144/13 dated 30 September 2013 by the Assistant Chief Executive on the work undertaken to develop the Sourcing Strategy for the ICT Reprovision Programme and presenting it for Members approval along with an overall Programme Plan.

The Committee APPROVED the recommendations outlined in the report.

33.  Internal Audit: ICT Contract Payments
Aithisgean Sgrùdaidh In-sgrùdaidh: Pàighidhean Cunnraidh TFC

There was circulated to Members only Report No. FHR/145/13 dated 13 September 2013 by the Head of E-Government which informed the Committee that an internal Audit Review of the payment mechanisms within the ICT Contract with Fujitsu Services Limited had recently been considered by the Council’s Audit and Scrutiny Committee. This report was now being presented to the Finance, Housing and Resources Committee for their consideration as part of the corporate governance process.

The Committee NOTED the Internal Audit Review and action plan, and that appropriate actions were being taken to address all the recommendations contained therein.

34.  Land and Property
Talamh agus Taigheadas

Declaration of Interest – Mr D Fallows declared a non-financial interest in this item as a Director of the Highland Housing Alliance, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude him from taking part in the discussion.

There was circulated to Members only Report No. FHR/146/13 dated 26 September 2013 by the Interim Director of Housing and Property which sought approval to an additional loan from the Landbank Fund to Highland Housing Alliance to enable to the development of 94 new houses at Westercraigs, Inverness and also sought approval to let a property at below market rent to a local community group in Dingwall.

The Committee AGREED the recommendations set out in the report.

35.Property Transactions Monitoring Report
Aithisg Sgrùdaidh Ghnothachasan Seilbhe

Declaration of Interest – Ms J Douglas declared a non-financial interest in this item on the basis that a friend was a tenant of a property referred to in the report, but having applied the test outlined in Paragraphs 5.2 and 5.3 of the Councillors’ Code of Conduct, concluded that the interest did not preclude her from taking part in the discussion.

There was circulated to Members only Report No. FHR/147/13 dated 26 September 2013 by the Interim Director of Housing and Property which provided Members with details of the General Fund and Property Account transactions approved by the Head of Property Partnerships and Corporate Property Asset Manager under delegated authority.  The report also advised Members on sales targeted for completion within the financial year 2013/14 and future years.

The Committee NOTED:-

i.  details of the General Fund and Property Account transactions approved by
    the Head of Property Partnerships and Corporate Property Asset Manager
    under delegated authority; and
ii.  progress on property transactions and sales with anticipated settlement within
    financial years 2013/14 and future years.