Agenda item

DECLARATION OF INTEREST

CouncillorYuill declared a pecuniary interest in the subject matter of the following article due to his employment. Councillor Crockett also declared an interest by virtue of his position as Chairperson of Glencraft, which was in receivership.   Both Councillors withdrew from the meeting during discussion of this article.

The Committee had before it a report by the Chief Executive which provided an update on the work ongoing to re-establish the Glencraft business, and requested authorisation for negotiations to be opened immediately to lease the property at Wellington Road (formerly occupied by Glencraft) to the new social enterprise, rent free for a period of up to one year.

By way of background the report advised that following the closure of the Glencraft factory in November, 2009, the Chief Executive had convened a working group comprising representatives of the Scottish Government, Scottish Enterprise, Aberdeen City Council, voluntary sector organisations, trades unions and representatives of the former employees of Glencraft.  The aim of the group was to ensure that all necessary arrangements were made for the former employees of Glencraft, and to explore opportunities for the establishment of a new social enterprise to continue the Glencraft business.  Working closely with Jobcentre Plus, the community, trades unions, local churches and charities, support was quickly put in place for the former employees and latterly the group focussed on the possibilities for a new social enterprise to be established.

The report advised that on 5 January, 2010 the First Minister announced that work was underway with Robert Keiller and Duncan Skinner of PSN Limited, to re-establish the Glencraft business and since that date, the Scottish Government and Scottish Enterprise colleagues had been discussing the content of the business plan produced by Mr Keiller and Mr Skinner and assessing the requirements it had set out for public sector funding and support.

One such requirement within the business plan was the request that in order to assist in re-establishing the Glencraft business, that the Council make the property on Wellington Road formerly occupied by Glencraft available to the new social enterprise rent free for up to one year.

The Committee resolved:-

(i)         to authorise the Head of Resources Development and Delivery, in liaison with the City Solicitor and City Chamberlain, to enter into immediate negotiations to lease the property at Wellington Road formerly occupied by Glencraft, to the social enterprise being formed to re-establish the Glencraft business, and to instruct a report back to the earliest possible committee on the terms and conditions of the lease; and

(ii)        to agree that on the basis that the negotiated lease would provide the property to the new social enterprise rent free for a period of up to one year, that the resulting significant loss of £225,000 income from the Enterprise, Planning and Infrastructure draft revenue budget for 2010/11 be made up from contingencies.

            At this juncture the Chairperson left the meeting and the Vice Convener assumed the Chair.