Minutes

Minutes of the meeting of the Finance Committee held on 11 July 2002 at Romney House, Westminster, London SW1.

Present:

• Graham Tope (Chair)
• Nicholas Long (Deputy Chair)
• Reshard Auladin
• Elizabeth Howlett
• Eric Ollerenshaw
• Sir John Quinton
• Richard Sumray
• Rachel Whittaker

MPA staff:

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• John Crompton (Committee Services)

MPS staff:

• Ian Blair (Deputy Commissioner)
• Stephen House (Deputy Assistant Commissioner)
• Keith Luck (Director of Resources)
• Bob Alexander (Director of Finance)
• Alan Croney (Director of Property Services)
• Craig Watkins

Also present: 20 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

1. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of John Biggs

2. Declarations of interests

(Agenda item 2)

None.

3. Minutes of the Finance, Planning And Best Value Committee – 29 May 2002

(Agenda item 5

Resolved: That the minutes of the meeting held on 29 May 2002 be agreed and signed as a correct record.

Arising –

Rachel Whittaker referred to the exempt report on Maurice Drummond and Norman Kendall section houses, which had been considered at the meeting. The subject was one on which she had been taking an interest and she had wished to be present when the matter was discussed. Consequently, as she was due to be on holiday at the end of May she had checked the position immediately before going away when she had been advised by the Property Services Directorate that the report had been withdrawn from the agenda for the 29 May meeting.

The Clerk said that she had previously spoken to the members on this matter and would welcome this opportunity to formally apologise for the confusion.

4. Draft minutes of the special meeting of the Estates Sub-committee – 22 May 2002

(Agenda item 4)

Resolved: That the draft minutes be noted.

5. Draft minutes of the Estates Sub-committee – 30 May 2002

(Agenda item 5)

Resolved: That the draft minutes be noted.

6. Chair and Members’ update

(Agenda item 6)

At the conclusion of the meeting, the Chair referred to the fact that this was the last meeting Bob Alexander the Director of Finance would be attending before leaving to take up an appointment with a NHS Trust. On behalf of the other members, the Chair thanked him for his valuable contribution to the work of the Committee and wished him well for the future. Mr Alexander returned thanks.

7. Membership of Estates Sub-committee

(Agenda item 7)

Nicholas Long referred to the duplication between the remit of the Estates Subcommittee and the Finance Committee and suggested that the Finance Committee should assume responsibility for all estates matters.

The Chair said it would be necessary to nominate a lead member for estate issue would who could be supported by other members if particular issues arose during the course of the year. He would suggest that the matter be reviewed in a year’s time.

The Clerk reminded the Committee that the Co-ordinating and Policing Committee was responsible for formally approving lead member roles.

Resolved - That

1. the recommendations be not adopted;
2. the Estates Sub-Committee be disbanded;
3. Nicholas Long be nominated as the lead member for estate issues; and
4. the position with regard to the Estates Sub-Committee be reviewed in a year’s time.

8. Revenue budget 2001/02 pre audit outturn position

(Agenda item 8)

A report was submitted which set out the final pre-audit position for the revenue outturn for 2001/02 and considered the application of surpluses resulting from the budget underspends.

In introducing the report, the Treasurer said that the Authority had now gone a long way towards addressing the concerns raised by the District Auditor in his letter on the accounts for 2000/01.

Members referred to the hard work and dedication of the Treasurer and the Finance Department in achieving the outturn position.

Resolved: That

1. the report be noted and the proposals in respect of the surplus resulting from the budget underspending be agreed;
2. the draft accounts be presented to the Authority at its meeting on 26 September following review by the Audit Panel on 16 September; and
3. the appreciation of the Committee be conveyed to the officers who had contributed to the work on achieving the outturn.

9. Capital programme 2001/02 final outturn

(Agenda item 9)

A report was submitted which provided details of the outturn position for capital expenditure during 2001/02 and sought approval for the carry forward of funds to 2002/03 in respect of certain named projects and the creation of an ear-marked capital reserve for the funding of C3i/airwave developments.

In reply to a question from a member, the Director of Property Services advised that partnership contracts were a means of engaging the contractor in the development of large projects.

Resolved:

1. the carry forward to 2002/03 of £17.786m to support capital projects during 2002/03;
2. the outturn position for capital expenditure in 2001/02 as shown at table 1 be noted; and
3. the creation of an earmarked capital reserve in respect of C3i/Airwave developments be approved.

10. Revenue budget update 2002/03

(Agenda item 10)

A report was submitted which updated the Committee on the 2002/03 revenue budget.

Copies of the budget book were tabled.

The Deputy Commissioner advised that a more detailed report on the allocation of additional officers was due to be considered by the Co-ordinating and Policing Committee.

Further to the section of the report on the delivery of budget savings the Director of Resources advised that the latest figures showed that very significant inroads had been made in reducing the shortfall in the savings target.

Resolved – That the report be noted and the virement of £1M. from police overtime to support the strengthening of the Criminal Justice Units be approved.

11. Medium term financial projection

(Agenda item 11)

A report was submitted which followed on from reports considered at the meetings on 18 April and 29 May 2002. The report set out the overall position also considered the implications of the Mayor’s budget guidance and identifies issues for further dialogue with the Mayor.

The Treasurer referred to the table at paragraph 35 which identified a funding gap for 2003/04 of £72.5M as representing a position statement. Further development of the draft budget was now needed to address how to close that gap. There were four options: increased grant, budget savings, increased precept and reductions in planned expenditure.

The Treasurer reported that the announcement of the Government’s Spending Review was due on 15 July and its outcome would be reported to the Authority at its meeting on 25 July. It was likely however that the detailed break down would not be clear until some time later. The Treasurer also reported that since the report was written a consultation document on the review of the grants formula had been received which contained proposals which would appear to be favourable for the Authority. Consequently, the grants projections in the report were practically out of date.

The Treasurer said that the report would form the basis for meeting of the Mayor’s budget steering group on 30 July where the assumptions in the report might be challenged.

The Treasurer reminded the Committee that the next meeting of the Finance Committee was scheduled to be held on 24 October which was only a week before the Authority was due to consider the draft budget. The Committee might wish to consider holding a special meeting to consider the submission before then so that any revisions could be incorporated. Members indicated that a special meeting of the Committee should be held in mid October to consider the draft budget submission and there should also be a further meeting in September.

Amongst the areas that the Committee identified where there was a need for greater clarity or more information was civilianisation and the numbers of police officers engaged in front line duties. It was noted that the development of the operational policing measure would be of assistance in regard to the latter.

The Deputy Commissioner reported that further work had already been commissioned to establish the full impact on the infrastructure of the organisation in employing additional police officers. The process of identifying savings had started but he would caution that It would be difficult to identify further savings in the order of magnitude of those found in the current year without there being a structural impact.

Referring to the table in paragraph 35, the Chair stressed that the increase in the implied precept was included for illustrative purposes and it was most unlikely that the final submission would show an increase on this scale.

The Chair said he did not think it would be appropriate for the Committee to reach conclusions on the schedule of new initiatives at paragraph 43 at this stage. He requested that the list be re-submitted to the next meeting showing i) how the MPS would rank the items and ii) the scope for phasing their introduction. Members also asked for opportunities for matched funding (such as the proposed two additional Sexual Offences Centres) to be highlighted.

Resolved - That

1. The GLA’s budget guidance and timetable be noted;
2. The provisional Medium Term Financial Projection be noted as the financial planning framework within which the detailed budget build for 2003/04 will take place, linked to the MPA’s Corporate Plan 2002-2007 and Policing Plan 2003/04;
3. The overall financial pressures included in the projection be noted, with particular attention to the implications for the 2003/04 budget and precept;
4. an additional meeting of the Committee be held in September and a special meeting be held in mid-October to consider the draft budget submission. The budget report to include information on the points outlined above;
5. The Committee noted the potential funding gap identified for 2003/04 and the means of closing it and supported the recommendations of the MPS SMT in paragraphs 42 and 43, and the need to explore fully the scope for savings. With regard to the MPS SMT recommendation at paragraph 40, the Committee agreed it with the deletion of all words after the word “others”; and
6. there are no further specific recommendations the Committee would wish to make to the full Authority.

(Note: the additional meeting was subsequently arranged for 27 September and the special meeting for 14 October.)

12. Efficiency and effectiveness review programme

(Agenda item 12)

This report presented an update on progress in the efficiency and effectiveness review programmes. It included implementation matrices on FME, interpreters, forensics/ DNA and supplies and services.

The Committee noted that the word “achieved” should be included in the fourth column in the items relating to Forensics and DNA and Operational Policing Model.

Subject thereto, it was

Resolved - That the report be noted.

13. Draft local government bill on white paper – strong leadership, quality public services

(Agenda item 13)

A report was submitted which sets out the main features of the draft local government bill which follows up last year’s White Paper – Strong Local Leadership, Quality Public Services and included suggested responses to those features which are relevant to the Authority for inclusion in the GLA feedback to the consultation process.

Resolved – That-

1. the report be noted; and
2. the comment on specific features of the Bill be endorsed for inclusion in the formal GLA response.

14. London Safety Camera Partnership

(Agenda item 14)

A report was submitted which updated the Committee on the proposed partnership with Transport for London and other agencies in regard to the recycling of fine income from driving offences captured by speed and traffic signal cameras.

Craig Watkins attended for consideration of this item. In reply to a question from a member, he advised that the ALG was the partner agency responsible for handling the town planning aspects.

Resolved: That the operating protocols be agreed.

15. Special service agreements

(Agenda item 15)

A report was considered which explained the circumstances where special services of police are provided to third parties under section 25 of the Police Act 1996.

In connection with this report a member enquired about the arrangements for the use of MPS video surveillance film when it was used in television programmes other than current news items and where there would appear to be opportunities to boost income due to repeat fees etc.

The Director of Resources explained that a fee was not charged for the use of surveillance film but would point out that the anticipated income for the Directorate of Public Affairs for 2002/03 was £108,000.

Resolved: That the report be noted.

16. Supply and delivery of civil litigation services

(Agenda item 16)

A report was submitted which informed the Committee of the outcome of formal tendering exercise undertaken for a civil litigation services contract.

In reply to a question from a member, the Director of Legal Services advised that the Clerk had been involved in the early stages of the tendering process but not the final evaluation stage.

Resolved: That the tender for the supply and delivery of civil litigation services be awarded to Weightman, Vizards (Weightmans) and Berrymans, Lane, Mawer (Berrymans) for a period of five years.

17. MPS IT infrastructure programme

(Agenda item 17)

A report was submitted which sought approval to commit funds to complete the introduction of the new IT infrastructure (known as AWARE) during the current financial year.

Resolved- That approval be given to the MPS to place orders with SchlumbergerSema to the value of £14.5m to enable the completion of the AWARE infrastructure rollout during this financial year, in accordance with the previously approved business case.

Arising –

Reshard Auladin pointed out that the IS/IT Sub group had been disbanded and said that one aspect which had to be resolved was how the MPA lead member for IS/IT could become involved in IT matters within the MPS.

The Deputy Commissioner said that the lead member for IS/IT was welcome to join the Information Management Steering Group of the MPS.

18. Variations for the southeast London PFI project

(Agenda item 18)

A new “corporate” front office has been approved for inclusion in the new police stations currently under construction at Bromley, Lewisham, Sutton and Deptford under a Private Finance and Investment project.

The Committee noted that in the light of the decision taken earlier in the meeting concerning the Estate Sub-Committee recommendation 3 would need to be amended and it was agreed that the Treasurer be given delegated authority.

Resolved- That

1. approval be given to initiate the change control mechanism within the south east London PFI contract and to instruct variations in respect of changes to revised designs to incorporate the corporate front office layouts;
2. the variations be funded from a one off revenue contribution with contingent annual maintenance liabilities of:
   front offices: a lump sum of £375,000 in 2003/4 with contingent maintenance liabilities of £35,000 (approx.) in 2003/4 and £69,000 (approx.) per annum in subsequent years; and
3. the Treasurer be given delegated authority to agree the detailed variations up to the above amounts.

19. The Mayor’s Draft Energy Strategy

(Agenda item 19)

The Mayor’s draft energy strategy has been received by the MPA as part of the consultation process with the Assembly and functional bodies. A report was submitted which set out the proposed response to the document.

Resolved -

1. the implications and expectations of the Mayor’s draft energy be noted; and
2. the proposed response as set out in appendix 1 of the report be submitted.

20. Exclusion of press and public

(Agenda item 20)

Resolved: That under section 100 A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involved disclosure of exempt information as detailed in paragraphs 8 and 9 of Schedule 12A of the above Act.

Part 2

21. Supply and delivery of civil litigation services

(Agenda item 21)

A report was received containing exempt information in support of agenda item 16.

Resolved - That the exempt information be noted

22. MPS IT infrastructure programme

(Agenda item 22)

A report was received containing exempt information in support of agenda item 17.

Resolved - That the exempt information be noted

23. Exempt minutes of the meeting held on 29 May 2002

(Agenda item 23)

Resolved: That the exempt minutes of the meeting held on 29 May 2002 be agreed and signed as a correct record.

The meeting ended at 5.20 p.m.

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