Agenda item

Report of the County Treasurer (CT/16/54), attached.

The Committee considered the Report of the County Treasurer (CT/16/54) on the Government’s response to the initial joint submission approved by the Committee in January and on the proposed way forward given the requirement of the Secretary of State and HM Treasury that any ‘pool structure’ needed to be an entity regulated by the Financial Conduct Authority. 

The revised submission now proposed by the Brunel Pension Partnership (BPP) reflected the ‘template’ devised by the LGA, DCLG and HM Treasury and showed the general direction of travel, as an outline business case, which would need to be approved in final form later in 2016; likely to come before this Committee in November .

The proposed submission had been reviewed and cleared by the BPPs financial and legal advisors (PwC and Osborne Clarke) and had been developed with input from the Shadow Oversight Board, comprising representatives from each of the Pension Committees. In depth training about the development of the outline business case had already been provided to Committee Members.

Members acknowledged that the ‘template/submission’ contained a number of caveats with regard to achieving the timelines, in particular the need for:

·         approval by each of the Administering Authorities of a full business case on the Brunel Pension Partnership for their Fund;

·         implementation of draft 2016 Investment Regulations by October 2016

                 It was then MOVED by Councillor Gilbert, SECONDED by Councillor O’Dwyer and

                    RESOLVED that the press and public be now excluded from the meeting during subsequent discussion on this matter under Section 100(A)(4) of the Local Government Act 1972 on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 3 of Schedule 12A of the Act namely, it contains information about the financial and business affairs of the County Council and its partners in the Brunel Pension Partnership and of the proposed joint local authority owned company and potential provider of goods or services to the Council, and in accordance with Section 36 of the Freedom of Information Act 2000, by virtue of the fact that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

[NB: The following part of the Cabinet’s proceedings on this matter took place, as summarised below, in accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 and, with the consent of the relevant Scrutiny Committee Chairman, under Section 100A(4) of the Local Government Act 1972 during which the press and public were excluded; no representations having been received to such consideration under Regulation 5(5) of the aforementioned Regulations].

                              The Committee then considered the Report of the County Treasurer (CT/16/61) incorporating the detailed submission to be agreed by all of the Brunel Pension partners.

The Committee acknowledged the concerns expressed by some Members that the direct involvement of scheme members in fund management would be minimised by the proposals now being pursued - at the direction of Government - and that the Brunel Pension Partnership should be urged to continue lobbying Government/HM Treasury over the need for appropriate relief on transition arrangements and tax treatment of assets and stamp duty requirements.

                              Following discussion of Report CT/16/61 and having had regard to the information therein, the Committee was of the view that the press and public need no longer be excluded from the meeting during its final determination of the matter and:

                  It was then MOVED by Councillor Gilbert SECONDED by Councillor Hosking and

                 RESOLVED that the press and public be now readmitted to the meeting. 

Following further comment and discussion and the matter having been fully debated and the options and/or alternatives and other relevant factors (e.g. financial, staffing, assets and property, procurement policies, risk management, equality and legal considerations and Public Health impact) set out in the Head of Service’s Report and/or referred to above having been considered, and balancing all of those factors and comments made at the meeting: 

It was then MOVED by Councillor Gilbert, SECONDED by Councillor Edgell, and

                  RESOLVED

                  (a) that the Committee endorses the joint submission from the Brunel Pension Partnership, including the Devon Pension Fund;

                  (b) that the Committee formally recommends the Council to agree, in principle, to the establishment of a Local Authority Company with the other Brunel founder funds, in which Devon County Council will own 10% of the shares;

                  (c) that, consequently, the County Treasurer be authorised to continue negotiating as necessary with other Fund Members on the detail of the proposition and, in consultation with the Chairman of the Investment & Pension Fund Committee, to agree the terms of any final agreement, reporting back to this Committee in the normal manner;

                  (d) that the County Solicitor be authorised to execute all necessary legal documents or formal agreements required to be agreed by the Council to give effect to the proposals concluded in line with the above;

(e) that the County Council be also recommended to approve, in principle and in conjunction with all other Councils comprising the Brunel Pension Partnership, the establishment of a Joint Committee under s101 or s102 of the Local Government Act 1972 to act as the ‘Brunel Oversight Board’; an advisory body ‘scrutinising’ the performance of the Brunel Company;

(f) that the Committee place on record its appreciation for all the hard work being undertaken by the Council's officers to progress these proposals