Agenda item

Councillor Calum Miller, Cabinet Member for Finance, Lorna Baxter, Director of Finance, and Michael Smedley, Head of Assets, Estates and Investment have been invited to make a presentation explaining the capital asset disposal process.

The Committee is recommended, having considered the report and responses to questions, to AGREE any recommendations arising therefrom.

Councillor Calum Miller, Cabinet Member for Finance, Lorna Baxter, Director of Finance, and Michael Smedley, Head of Assets, Estates and Investment made a presentation explaining the Council’s capital asset disposal process.

Cllr Miller introduced the topic by explaining that the mere existence of the Council’s capital asset disposal process marked significant progress; two years previously the Council’s asset register had been out of date, having fallen into disrepair following the integration of Carillion staff into the Council. It was noted that there had been much discussion about the role of members in decisions around disposals of property, particularly given public interest in some sites, and the aim of the process was to provide clarity over how such disposals would be undertaken, keeping in mind its legal obligations around best value. Whilst ‘disposal’ was the term used to describe the process of determining capital assets to be surplus to Council requirements, engaging with local communities to determine demand for the asset, and going out to market if none arose, did not mean there was either a fire-sale, or that market sales were the only avenue considered. Furthermore, such disposals formed part of a wider strategy in relation to the Council’s assets, where decisions on both sales and purchases were made with the Council’s long-term financial stability in mind, as well as current and future service requirements. Disagreement was raised by the Committee as to whether the asset register had been in disrepair; were it to have been so there would have been picked up in the Council’s audit.

In response to the presentation and report, the Committee raised a number of points including:

-        The reason for there being no policy outlining the Council’s priorities when making disposals, including who, how the Council would consult, for what purpose assets would be preferred to be disposed of and how different strategic priorities would be weighted.. In response, it was put forward that the best way to get most out of sites, each with their unique characteristics, was to remain completely flexible rather than be fettered by a policy which may not completely align with or appreciate the specific characteristics of the site, nor would it be equipped to include the impact on the Council of outcomes of other disposals on a particular decision. Challenge from the Committee was put forward on the basis that the Council should have some view of the place it wishes to develop and objectives it wishes to achieve through its asset disposals, a high-level perspective sitting above individual assets. It would be valuable for the Council’s place-making ambitions to be brought into line with other local strategies, such as the City Council’s City Centre Strategy and Oxford West End development. Clearer definition of the Council’s priorities would leave officers less exposed when making judgements on the best course of action. One suggestion put forward as a mitigation to this was ensuring full discussion with local members at an early stage to allow opportunities and community wishes to be explored at an early point.

-        The absence of reference within the Council’s strategic priorities to discussing with cooperative housing providers

-        The political shape of the Council, and whether the absence of a majority meant the delegations to the Cabinet member for finance and officer-led decisions ought to be broadened out.

-        Learning lessons from other Councils around the decarbonisation of municipal buildings, namely Hampshire County Council, in relation to any move from County Hall to Speedwell House

It was AGREED to recommend to Cabinet that:

-        It provide greater detail concerning the outcomes it wishes to see when disposing of its assets

-        Information about asset disposals is conveyed to opposition parties at an earlier point and consultation with them over potential uses and community contacts undertaken

-        It amends the strategic objectives it seeks to achieve through an asset disposal to include cooperative housing within objective 2, and that the Council undertakes to engage with cooperative housing providers.

And to make the following observation:

-        Of the value of arranging a site-visit to Hampshire County Council to look at the work in decarbonising their main offices.