Agenda item

The Committee had before it a report by the Head of Finance which (1) outlined the financial position of the Council for the financial year 2016/17 and its impact on the Council’s balance sheet for the Council’s General Fund and Housing Revenue Account; (2) outlined the financial position of the Common Good Fund for the financial year 2016/17 and its impact on its balance sheet; and (3) provided information on future financial reporting, faster closedown and production of the annual accounts and a change to the Council’s group structure.

The report recommended:-

that the Committee –

(a)       note the current final outturn position for the various Council accounts for the financial year 2016/17;

(b)       note the various transfers, as included in the unaudited Annual Accounts for 2016/17, between Council accounts and earmarked sums for the General Fund, Common Good and Housing Revenue Account as at 31 March 2017 as shown in Appendix B of the report;

(c)        note the working balances of the General Fund, Housing Revenue Account and Common Good, as included in the unaudited Annual Accounts for 2016/17;

(d)       approve that in accordance with the relevant strategies to maintain revenue balances, the Council’s objective of retaining recommended levels of uncommitted balances has been achieved;

(e)       note that the unaudited Annual Accounts for 2016/17 were presented to the Audit, Risk & Scrutiny Committee, along with the Annual Governance Statement and Remuneration Report, at its meeting on 27 June 2017;

(f)        approve the dates for future Finance, Policy and Resources Committees as specified in Paragraph 3.8 of the report;

(g)       approve the procurement of, and expenditure for the purchase of a system to enhance the efficiency of the production of the Council’s annual accounts as specified in Paragraph 3.9 of the report; and

(h)       note that, following the appointment of SMG Europe as operator of Aberdeen Exhibition and Conference Centre from 1 April 2017, AECC Ltd, a wholly owned subsidiary of the Council becomes dormant as detailed in paragraph 3.34 of the report and delegate authority to the Head of Finance following consultation with the Head of Legal and Democratic Services to make all necessary arrangements in conjunction with the Board of AECC Ltd to wind up the company.

The Convener, seconded by the Vice Convener moved:-

that the Committee –

(1)        agree recommendations (a) to (e) and (g);

(2)        agree recommendation (f) except for the 27 July 2017 date, with that date to be amended to a suitable date in August 2017 if required, having taken account of the summer recess; and

(3)        agree that the Council will take all actions necessary to ensure the continuing solvency of AECC Ltd until such time as it has been wound up, including guaranteeing to meet all creditors falling legally due and by confirming that it will not seek the repayment of any share capital.

Councillor Nicoll, seconded by Councillor Jackie Dunbar moved as an amendment:-

that the Committee –

(1)        agree recommendations (a) to (e) and (g);

(2)        agree recommendation (f) except for the 27 July 2017 date, with that date to be amended to a suitable date in August 2017 if required, having taken account of the summer recess;

(3)        agree that the Council will take all actions necessary to ensure the continuing solvency of AECC Ltd until such time as it has been wound up, including guaranteeing to meet all creditors falling legally due and by confirming that it will not seek the repayment of any share capital;

(4)        note the recent funding agreement between the Conservative led Westminster Government and the Democratic Unionist Party of Northern Ireland that will secure an additional £1Billion of funding towards the Northern Ireland economy over the next two years and the potential impact on the Westminster Government’s austerity policy for the remainder of Scotland, England and Wales;

(5)        note the already high levels of funding received by the Northern Ireland executive;

(6)        note that if the Westminster Government implemented the Barnett Formula Consequentials the total benefit to the Scottish economy could amount to £2.9 Billion and for the City of Aberdeen could amount to £112 Million over the period;

(7)        note the comments of the Scottish Secretary David Mundell MP that he would not support funding which “deliberately sought to subvert the Barnett rules” and that he would block any “back door funding” for Northern Ireland if it meant other devolved nations missing out; and

(8)        instruct the Chief Executive to write to the Scottish Secretary and local Members of Parliament expressing its disappointment at the agreement and seeking they condemn the actions of the Westminster Tory Government and seek their support to ensure similar funding would be secured that would relieve the Tory austerity being imposed on the remainder of Scotland, England and Wales.

On a division, there voted:- for the motion (9) – the Convener, the Vice Convener and Councillors Bell, Houghton, John, Laing, Macdonald, Sellar and Wheeler; for the amendment (8) – Councillors Allard, Copland, Delaney, Jackie Dunbar, Flynn, Catriona MacKenzie, Nicoll and Townson.

The Committee resolved:-

to adopt the motion.