Councillor Tony Smith introduced a report by the Director of Children’s Services that informed that in April 2014 this Council’s and Cheshire West and Chester (CW&C) Council’s Chief Executive had agreed a mandate to jointly develop a business case for a Schools Traded Services company.

The report was intended to enable the Cabinet to make a decision on the future delivery model for school traded services.  It proposed that a Separate Legal Entity (SLE) jointly owned by the Council and CW&C Council be established.  It contained the results of the business planning analysis and presented the Strategic Business Case.

The Cabinet was informed that the proposal would also be presented to CW&C Council’s Executive on 19 November 2014.  The project could only proceed if both Councils agreed to the recommendations.

The report contained exempt information in an Appendix as defined in Schedule 12A of the Local Government Act 1972.  It was in the public interest to exclude the press and public under Paragraph 3 ‘Information relating to the financial or business affairs of any particular person (including the authority holding the information)’. The information contained in the Appendix was commercially sensitive. (Item No. 23 on the agenda – Exempt Appendix – School Trading Services -, Minute No. 96 refers.)

Councillor Tony Smith thanked all of the officers who had contributed to this initiative.  It had involved a lot of hard work being carried out in a very short space of time.

Councillor Phil Davies informed that this was exactly the type of model for delivering services that the Council should be looking to adopt in the future.  He considered it to be an exciting initiative which had tremendous future potential and he wished it well and looked forward to receiving progress reports on it in due course.

RESOLVED: That

(1)  the overall direction and strategic agenda for change for schools traded services identified in the business case prepared jointly by CW&C and Wirral Councils be agreed;

(2)  the establishment of a Community Interest Company limited by shares and wholly owned and controlled jointly by Wirral and CW&C Councils for the purpose of providing the services identified in the business case to schools in their area and outside be agreed;

(3)  it be agreed that the Council will act as guarantor to the pension liabilities of the company as a designating body to the Merseyside Pension Scheme.  The risk to be mitigated by the SLE purchasing a bond for 20% of the risk, the remainder be guaranteed by the Local Authorities and a charge made to the SLE at market rate;

(4)  it be agreed to fund the historic deficit in the Merseyside Pension Fund on a shared basis with the SLE based on a notional share of the assets and liabilities of the Local Authority at the time of transfer;

(5)  be agreed to provide, in conjunction with CW&C Council, such further financial guarantees as the company may reasonably require subject to the requirements  ...  view the full minutes text for item 89