Agenda item

The Committee considered a preliminary report which detailed opportunities to explore potential growth for Worcestershire Regulatory Services.

The Head of Worcestershire Regulatory Services (WRS) introduced the report and in doing so informed the Committee that WRS were well aware of the implications of the next Government settlement (2014/2015 onwards) and the significant impact this was likely to have on local authority finance.  Members were informed that an options report on the likely impact of further cuts to the budget (5%, 10%, and 15%) in 2014/2015 would be presented to the next meeting of the Joint Committee.

The creation of WRS had helped the seven participating authorities to reduce costs whilst maintaining resilience.  In light of the uncertainty of the financial settlement that would be available to Local Government from 2013/2014, WRS had developed two strategies, as detailed in the report. 

There was an opportunity to grow the business in such a way that growth would deliver benefits for the original partners.  WRS had had discussions with five Local Authorities, as detailed in the report, to gauge interest in either joining the partnership or outsourcing their services to WRS.  WRS were also looking at the feasibility of working with a wider range of partners to establish a regional Animal Heath team and metrology.  The Head of WRS highlighted that WRS were currently looking at the feasibility of these opportunities and that these discussions were still at an early stage.  A report detailing potential business models would be presented to the Joint Committee early in 2013.  It was clear that there were real opportunities for WRS to grow the business in a way that would generate an income for partners and help offset the WRS budget.

The Head of WRS advised Members that in order to maximise these opportunities it had become clear during the preliminary discussions that a review of the current governance arrangements would need to be undertaken to support a different business model.

The Head of WRS responded to Members’ questions with regard to:

Ø      Founder Members being treated as preference shareholders

Ø      Business Model options

Ø      Financial analysis of opportunities

Ø      Profit sharing amongst the core partners

Ø      Would WRS consider opportunities to enter into the private sector?

Councillor Mrs. B. Behan, Malvern Hills District Council expressed reservations in respect of the governance arrangements and how would this impact on Bromsgrove District Council as the host authority.  The service had already been pared back to make savings and the service was currently operating on a slim field of operators, had staff been trained or would staff be trained if additional services were undertaken for other authorities.  She was not opposed to it, but was worried.  She also expressed further concern in respect of the public and their line of entry via the Worcestershire Hub.  Would further operators be required if additional services were undertaken for other local authorities?  She was slightly hesitant to go down this route, she sensed the need, but wondered how the current WRS structure would grow.  She would not like to see a north/south/east/ west split of any sort.    

The Head of WRS responded and highlighted that he understood the concerns expressed and that there would be no commitment until any opportunities had gone through the correct governance arrangements.

RESOLVED that Worcestershire Regulatory Services continued to explore opportunities to grow the business by taking on other partners or being contracted to deliver similar services for others, be approved.