Agenda item

Public Interest Report

IL asked the following question of the Leader of the Council:

In the report in the public interest on Robin Hood Energy, the Auditor states (page 12), “More generally, it is not seen as good practice for councillors to be on the boards of local authority companies, with other mechanisms used to ensure that the company meets the Council’s policy objectives.” It is recognised, particularly in the recommendations, that having councillors on company boards is not specifically forbidden, but can the Leader please comment on this statement, particularly why the Council is proposing to go against what the Auditor considers to be best practice by in fact retaining councillors on boards?

Councillor David Mellen replied as follows:

Thank you Lord Mayor and can I thank the citizen for submitting this question.  The Auditor’s report and the Council’s Action Plan outline a number of clear recommendations for implementation including a commitment to review how councillors are best used and supported on the boards of companies.  Alongside this we have a clear commitment to ensure that all board members have the required knowledge and experience to challenge the management of companies.  This should also ensure that risks related to Council companies are considered for inclusion in our overall risk management process with appropriate reporting, rather than being seen in isolation.  I also want to be clear that we will ensure lessons are learned from this experience and will take the necessary steps to review the arrangements we have in place for Council governance of all our companies.  As a Council we will continue to make the necessary improvements including those recommended by the District Auditor. 

Since the adoption of the report in August this year, I have already met with all of our company chairs and chief executives to strengthen our approach to company governance; I have presented the Action Plan to both the Overview and Scrutiny Committee and the Audit Committee; and the Monitoring Officer has brought the Action Plan to the Companies Governance Sub Committee for robust review of our proposed arrangements.  I will report back to the Council’s Executive Board later this month.  I have also met with both Opposition Leaders and will bring back proposals to this Council in November for the creation of a Governance Improvement Board to oversee the implementation of the Action Plan going forward. 

Lord Mayor, I want to acknowledge that this is only the beginning of our improvement journey.  We will go further.  Further to ensure our governance arrangements are robust and our actions are more than just mere expressions of regret and constructive and meaningful change will follow.  Lord Mayor, we are elected to represent the people of this City.  It is a privilege we do not take lightly.  As custodians of the City we will ensure the best interests of Nottingham people are at the forefront of our improvement journey. 

In his recommendations, where the Auditor summarises the content of his report, he recommends that we review how councillors are used on the boards of companies, that they are properly trained, that they understand risk and that they understand and declare conflicts of interest where they arise.  These recommendations are the summary of his findings.  At no point in this summary does he say, ‘don’t use councillors on the boards of companies’.  We have done so for many years in different companies, like Nottingham City Transport, which has been judged Bus Operator of the Year a number of times; in Nottingham City Homes, judged Landlord of the Year recently; and in companies varying from Futures, which offers career advice and guidance to young people, to the National Ice Stadium, which combines a concert venue with ice rinks training Olympic speed skaters and offering public skating for all.  I am committed to ensuring that we continue to move in the right direction and although we do not, for a moment, underestimate the challenges involved, it is right that we review our overall approach to using councillors on boards, training and supporting them appropriately, acknowledging it is not the place for councillors to be industry experts but to bring their knowledge and electoral mandate alongside other directors so that in aggregate they have the skills and knowledge to hold company managers to account.  We know the first hand benefits in the accountability of having local people, elected by Nottingham residents, on company boards.  However, we are committed to reviewing how we ensure the right training is delivered to best ensure that councillor board members are able to appropriately and effectively fulfil their roles.  Essential training will be mandatory and the retention of positions will be dependent on the completion of necessary training.

Lord Mayor, I want to thank the citizen for this question and look forward to reporting back in due course on further improvements to our governance arrangements.  Thank you.

Lighting up of the Council House

JD asked the following question of the Portfolio Holder for Regeneration, Schools and Communications:

In the evenings, the Council House is lit up in different colours. I'm aware that sometimes there is a symbolism behind the colours chosen. Would the appropriate Portfolio Holder consider commissioning a Twitter feed that could give the colour for the day and the reason why this colour was chosen?

Councillor David Mellen replied as follows:

Thank you Lord Mayor and can I thank the citizen for the question.  If members of the public or organisations have a special cause or campaign that they would like to see marked by the dome and front of the Council House being lit up in an appropriate colour, then as a Council we are pleased to be able to work with organisations to support their causes in this way.  Of course, I do agree that it is important that we also supplement this with the reasons why we are choosing to illuminate our buildings.  So I reassure the citizen that we do work with those making requests to ensure an effective communication plan is in place and we will do what we can to enhance this in the future.

Lord Mayor, we do have an active and wide-reaching social media platform, which we will also use to supplement activity across the City, particularly when we are illuminating buildings such as the purple we can see lighting the dome of the Council House tonight and on subsequent nights to support Black History Month, or whether it is to support Baby Loss Awareness Week which we will see later in the month. 

Lord Mayor, I am pleased that we are able to support these causes in this symbolic way and have done so many times this year: from the cause of supporters fighting for support for the entertainment industry through to celebrating Pride in July, from the anniversary of the NHS through to Armed Forces Day and many other causes.  We are pleased that both the Council House and Wollaton Hall have the equipment to mark occasions and celebrate causes in this way, we will continue to do so and let people know why the buildings are being lit up.

Thank you.