Agenda item

With reference to Article 8 of the minute of its meeting of 9 February 2012, the Council had before it a report by the Director of Social Care and Wellbeing which advised of progress with implementation of the Local Authority Trading Company (LATC) and sought approval to transfer specified Older People and Rehabilitation Services to the LATC, on completion of the appropriate legal and contractual processes.

The report recommended:-

that the Council -

(a)              note the progress made towards creating the LATC, to be known as Bon Accord Care;

(b)              approve the LATC Business Plan appended to the report underpinned by the business case approved by Council on 9 February 2012;

(c)               agree to formal TUPE consultation with staff;

(d)              approve the proposed governance arrangements, including the establishment of a Shareholder Liaison Group, which will be a sub committee of Council;

(e)              appoint a Chairperson of the Shareholder Liaison Group and note that meetings will be held quarterly;

(f)                 confirm that, subject to a report by the Section 95 Officer, the Council will act as a guarantor for the LATC in relation to the Pension Fund, and in the event that the LATC should cease to exist, will guarantee up to £4million as required to meet these liabilities; and

(g)              agree the transfer of specified services to the LATC on completion of the appropriate legal and contractual processes.

Councillor Len Ironside CBE moved, seconded by Councillor Delaney:-

            That the Council -

(i)            note the progress made towards creating the LATC, to be known as Bon Accord Care;

(ii)          approve the LATC Business Plan appended to the report underpinned by the business case approved by Council on 9 February 2012;

(iii)        agree to formal TUPE consultation with staff;

(iv)         note the current proposed governance arrangements, including the establishment of a Shareholder Liaison Group;

(v)           confirm that, subject to a report by the Section 95 Officer, the Council will act as a guarantor for the LATC in relation to the Pension Fund, and in the event that the LATC should cease to exist, will guarantee up to £4million as required to meet these liabilities;

(vi)         instruct that a further report is brought to the next meeting of the Social Care and Wellbeing Committee which will present in final format the details of:-

(a)          the Memorandum and Articles of Association;

(b)          the core contract and specification;

(c)          facilities leases; and

(d)          a review of the proposed governance arrangements of the new company to enable a decision to be taken for the transfer of Older People’s Services, Occupational Therapy and Rehabilitation and Learning and Development to the LATC; and

(vii)            agree that the Chairperson of the Board will not be an elected member.

Councillor Kiddie moved as an amendment, seconded by Councillor Blackman:-

            That the Council agree not to proceed with the formation of the LATC.

On a division, there voted:-

For the motion  (24)  -  Lord Provost; and Councillors Allan, Boulton, Carle, Cooney, Crockett, Delaney, Lesley Dunbar, Finlayson, Graham, Grant, Greig, Len Ironside CBE, Laing, Lawrence, Malik, Milne, Jean Morrison MBE, Nathan Morrison, Jennifer Stewart, Taylor, Thomson, Young and Yuill.

For the amendment  (15)  -  Councillors Blackman, Cameron, Corall, Cormie, Dickson, Jackie Dunbar, Jaffrey, Kiddie, MacGregor, McCaig, May, Noble, Samarai, Sandy Stuart and Townson.

Absent from the division  (1)  -  Councillor Forsyth.

The Council resolved:-

to adopt the motion.