Agenda item

Carried forward from December Council meeting

With reference to Article 11 of the minute of its meeting of 11 December 2024, the Council had before it a report by the Chief Officer – City Development and Regeneration which provided an update on the allocation of Investment Zone status to the North East of Scotland (Aberdeen City and Aberdeenshire Council administrative areas) and progression through the Gateway Process, and sought approval of a proposed governance structure.

The report recommended:-

that the Council -

(a)           agree to Establish a Joint Committee in terms of sections 56 and 57 of the Local Government (Scotland) Act 1973 with Aberdeenshire Council, to be known as the North East Scotland Investment Zone Joint Committee and to be effective following submission of Gateway 4 (February 2025);

(b)           note the Investment Zone Steering Group endorsement for a North East Scotland Investment Zone was Option C, the Joint Committee Members being the co-signatories plus ETZ Ltd.  At the Steering Group meeting the Aberdeen City Council representative abstained from the vote as Council had not yet had the option to review the models;

(c)           approve the Joint Committee’s Terms of Reference contained within Appendix 3 to the report, which are based on Option B, the Investment Zone Co-signatories being the members of  the Joint Committee;

(d)           approve the Joint Committee’s Standing Orders contained within Appendix 3 to the report;

(e)           approve the proposed membership of the North East Scotland Investment Zone Joint Committee to be Aberdeen City Council (x3), Aberdeenshire Council (x3), Opportunity North East, University of Aberdeen and The Robert Gordon University.  This is illustrated at Option B;

(f)             agree that a North East Scotland Investment Zone Programme Board should be established to support the Joint Committee and agree its Terms of Reference in Appendix 4;

(g)           approve the initial proposed membership of the North East Scotland Investment Zone Programme Board as contained within Appendix 4; Aberdeen City Council, Aberdeenshire Council, Opportunity North East, University of Aberdeen, The Robert Gordon University, Scottish Enterprise and Energy Transition Zone Ltd;

(h)           appoint three named members and up to three named substitute members to the North East Scotland Investment Zone Joint Committee; and

(i)             agree that Aberdeenshire Council will act as the Accountable Body for the Investment Zone as they have done for the City Region Deal.

At this juncture, Councillors Yuill, Radley and Allard advised that they had a connection by reason of being members of the Aberdeen City Region Deal Joint Committee, however having applied the objective test they did not consider that they had an interest and would not be withdrawing from the meeting.

Councillor McLellan advised that he had a connection by reason of being a substitute member of the Aberdeen City Region Deal Joint Committee, however having applied the objective test he did not consider that he  had an interest and would not be withdrawing from the meeting.

Councillor Allard moved, seconded by Councillor Greig:-

          That the Council agree the recommendations; and

(h)      appoint 3 Partnership members (Councillors Allard, Yuill and McLellan), 1 Partnership sub (Councillor Radley) and 1 Labour and 1 Conservative sub (names to be confirmed).

Councillor Malik moved as an amendment, seconded by Councillor Watson:-

          That the Council -

(1)       note the recommendations contained within the report;

(2)       note with disappointment that, at the Steering Group meeting on 27^th November 2024, the Aberdeen City Council representative abstained from the vote, thus embarrassing the Council as it had not yet had the option to review the models. Noting the report does not confirm the determination of the vote or who voted for which option;

(3)       agree Option C which all other Steering Group Members attending the meeting, including the Aberdeenshire Council representative, agreed was the preferred option;

(4)       agree that, if Option B (and not Option C) is agreed by this Council and not Option C, we are at an impasse with Aberdeenshire Council supporting model C  and Aberdeen City Council voting model B, meaning the work required to bring about investment to the North East is put on hold until such time as the governance arrangements are agreed; and

(5)       agree to instruct the Chief Executive to ask the North East Scotland Investment Zone Programme Board, once formed, to give serious consideration to inviting one of the Trade Unions to be an active participant without voting rights on the Programme Board. 

Councillor Brooks moved as a further amendment, seconded by Councillor Kusznir:-

That the Council -

(1)       notes the report, containing three options: A (Council led JC), B (IZ signatories led JC) or C (IZ Signatories Plus ETZ Ltd);

(2)       notes the strong brand of public and private partnership-working which has always served the North East well;

(3)       notes that Aberdeenshire Council, in September 2024, approved a Regional Partner Joint Committee model with delegation on the composition of the Joint Committee delegated to the Director of Environment and Infrastructure Services in consultation with Aberdeenshire Council Group Leaders;

(4)       notes that all stakeholders voted in favour of Option C at the Investment Zone Steering group on 27^th November and that the Aberdeen City Council Co-Leader did not vote, noting that this was a decision for Aberdeen City Council to vote on.  The remaining members of the Steering Group unanimously preferred option was C;

(5)       notes that embarrassingly, this item will not be determined by full council until today (5 February 2025);

(6)       notes that there is no indication or justification in the report as to why members should vote contrary to all the other partners in the Investment Zone Steering Group; and

(7)       agrees Option C, as per all other Steering Group stakeholders, as the option to be progressed thus yielding a unanimous endorsement  by the Steering Group.

There being a motion and two amendments, the Council first divided between the amendment by Councillor Malik and the amendment by Councillor Brooks.

On a division, there voted:-

For the amendment by Councillor Malik   (12)  -  Councillors Ali, Blake, Bonsell, Graham, Grant, Lawrence, Macdonald, Malik, Mrs Stewart, Thomson, Tissera and Watson. 

For the amendment by Councillor Brooks   (9)  -  Councillors Boulton, Brooks, Crockett, Cross, Farquhar, Kusznir, McLeod, Massey and Nicoll.

Declined to vote  (23)  -  Lord Provost; Depute Provost; and Councillors Al-Samarai, Allard, Alphonse, Bouse, Hazel Cameron, Clark, Cooke, Copland, Cormie, Davidson, Fairfull, Greig, Henrickson, Hutchison, MacGregor, McLellan, McRae, Mennie, Radley, van Sweeden and Yuill.

Absent from the division  (1)  -  Councillor Houghton.

The Council then divided between the motion and the amendment by Councillor Malik.

On a division, there voted:-

For the motion  (23)  -  Lord Provost; Depute Provost; and Councillors Al-Samarai, Allard, Alphonse, Bouse, Hazel Cameron, Clark, Cooke, Copland, Cormie, Davidson, Fairfull, Greig, Henrickson, Hutchison, MacGregor, McLellan, McRae, Mennie, Radley, van Sweeden and Yuill.

For the amendment by Councillor Malik   (15)  -  Councillors Ali, Blake, Boulton, Bonsell, Crockett, Graham, Grant, Lawrence, Macdonald, Malik, Nicoll, Mrs Stewart, Thomson, Tissera and Watson. 

Declined to vote   (6)  -  Councillors Brooks, Cross, Farquhar, Kusznir, McLeod and Massey.

Absent from the division  (1)  -  Councillor Houghton.

The Council resolved:-

(i)             to adopt the motion;

(ii)            to note that the Chief Officer - City Development and Regeneration would ensure access was provided to letters of support regarding ownership of relevant land in the Aberdeen area;

(iii)          to note that the Chief Officer - Corporate Landlord would circulate details in terms of land owned by the Lands of Torry Trust and land owned by other Council accounts; and

(iv)          to note that officers were considering the matter of Investment Zone Steering Group minutes and whether they could be shared with elected members and would confirm the position in due course.