Trading Places!

Go across to Stockport today to meet APSE's main contact Nick Cox. Nick as Managing Director, set up SK Solutions, Stockport Council's arms length trading company.

Nick brings me up to speed with what they are hoping to achieve as a wholly owned council company and sets out their ambitous business growth targets.

He also tells me about why the Council went down this route in the first place and we have a discussion about the suitability of this type of vehicle for service delivery.

I have always been a much stronger advocate of the use of charging powers rather than the establishment of a trading company for local authority service provision, but Nick makes quite a compelling case as to why the latter was the correct solution for Stockport.

We finish of by agreeing a number of activities for the future that will allow Nick to tell the wider APSE membership about what has been established in Stockport.

Wading in treacle!

Travelled up to Scotland today for the latest meeting of the review group for trading and charging in Scottish local government. The meeting took place once again at Victoria Quay the civil service headquarters in Edinburgh.

Despite two hours of discussion we became a bit bogged down in trying to assess what areas of trading activity require close regulation and scrutiny and what bits can be left alone. If we get this correct there could be significant benefit for Scottish local government.

My own opinion is that anything that a local authority does directly for itself and for other public bodies can be deregulated, activity undertaken for the private sector or for organisations not wholly owned by the public sector becomes a bit more cloudy. This is where we became a bit bogged down, as some on the group see this as something that should just be a financial judgement, when in reality it must be considered in the round of case law and European procurement directives also.

I actually agree quite strongly with the civil servants on this one, that we really need to test some case studies to the limit to see what they tell us. We will then be in a position to make worthwhile recommendations to Ministers on guidance. I have always been of the view that poor scrutiny makes for poor legislation!

Busy day in Beds...and Northampton!

Started the day with a private meeting with the civil servant charged with sorting out the mess that is the trading and charging guidance for English local government. The meeting takes place at the Chief Executive of Bedford, Shaun Fields office and Steve Cirell from Eversheds is also present.

We spend a good couple of hours outlining our significant views and experience to the civil servant, (Steve has probably the best legal knowledge of the issue in the country and Shaun is recognised has having tested the limits of the current legislation to the hilt). It's a bit disappointing when he takes very few notes and then invites us to a meeting of a fairly wide grouping of 'stakeholders'.

Oh well, I hope things prove more successful than the last time they adopted this approach 5 years ago!

In the evening we participate in a strategic debate on asset management and regeneration at Northampton Town Hall. The event is hosted by Council Leader, Cllr Tony Woods and also present is Chief Executive David Kennedy. Along with Shaun, Pete Murphy from CLG, colleagues from the private sector and other local authorities it makes for a really interesting discussion over dinner. It is really difficult not to allow things to become dominated by the credit crunch and the impact this is beginning to have on asset value, capital receipts and ultimately prudential borrowing.

Trading, Charging and State Aid!

Attend a really interesting meeting as a member of the working party established to look at the issue of Trading and Charging by the Scottish Government. One of the key issues in this area of local government is around when does legitimate trading activity cross the boundary into the tricky ground of State Aid.

We received a presentation by one of the civil servants with responsibility for dealing with State Aid in the Scottish Government. It was enlightening to say the least and prompted questions and discussion that lasted for a good couple of hours.

The outcome was clear, anything that a local authority does between itself and any of its inhouse services is in no way in breech of State Aid rules, anything that a local authority does for another public body is also probably fine, anything for individual members of the public or the private sector has to be looked at carefully and probably has to be won in a competitive process. Where a local authority awards work to an arms length organisation, the third sector or a private body or an individual then it probably has to ensure a competition process takes place if it wishes to avoid being challenged on State Aid grounds.

Durham, Trading and Charging and the Minister!

Went to Durham County Council today to the official opening of their new super depot. When driving in I thought I was at the wrong building as it looked like a software company from the outside.

DCLG Minister John Healey was on hand to unveil the plaque and we all then got a tour of the facilities. The Council Leader, Albert Nugent was as pleased as punch to have John at the opening and the portfolio holder Trevor Carroll was also on hand to welcome the Minister. Vivian Wiley the Service Director spoke at the opening about the work that the Services Directorate undertake and how this contributes to the corporate objectives of the council. Everything from community safety to the environment and the local economy. John responded and spoke about the reorganisation that was ahead and also about trading and charging.

As we toured the facilities and the transport and highways workshops it was to good an opportunity to miss, so I had a decent discussion with John about Trading and Charging and expressed my views about where the guidance published in 2003 was flawed. Based on Johns reaction I am hopefully that we will have a lengthy dialogue about this that may lead to benefits for all.