Agenda item

To answer questions asked after notice in accordance with the provisions contained in paragraph 12.3 of the Council Procedure Rules of the Constitution on any matter in relation to which the Council has powers or duties or which affects the District:

(a)                  to the Chairman of the Council;

(b)                  to the Leader of the Council;

(c)                  to any Member of the Cabinet; or

(d)                  the Chairman of any Committee or Sub-Committee.

Council Procedure rule 12.4 provides that answers to questions under notice may take the form of:

(a)          direct oral answer;

(b)          where the desired information is in a publication of the Council or other published work, a reference to that publication; or

(c)          where the reply cannot conveniently be given orally, a written answer circulated later to the questioner.

Answers to questions falling within (a) and (b) above will be made available to the member asking the question one hour before the meeting. Answers to questions falling within (c) above will be circulated to all councillors.

Questions, if any, will follow if not received in time to be incorporated into the agenda.

(a)        Loans by the Councils

By Councillor C C Pond to Finance Portfolio Holder, Councillor S Stavrou.

“Could she please itemise the loans that the Council have taken out over the last six months, and state for each:

(a)          the amount, and purpose for which it was taken out;

(b)          the name of the lender;

(c)          the rate of interest and whether fixed or variable, and the annual amount thus payable;

(d)          the term of the loan; and

(e)          whether there are early redemption penalties attached, and if so what they are?”

Response by Finance Portfolio Holder, Councillor S Stavrou.

“I would like to thank Councillor C C Pond for the question as it gives me the opportunity to talk about the very important subject of Treasury Management. This is a key part of the Council’s overall financial management and so reports are made regularly to both the Finance and Performance Management Cabinet Committee and the Audit and Governance Committee. In fact the half year report was made to the Finance and Performance Management Cabinet Committee on 12November 2015 and the Audit and Governance Committee on 30 November 2015. If Cllr Pond had attended either of these meetings or read either of the agendas he would know that the Council has not taken out any loans so far in this financial year.

As no loans have been taken out so far this year there is nothing to itemise or state in response to the question.

I am sure Cllr Pond is not the only Member who would benefit from some training on Treasury Management and I would like to invite all Members to the annual seminar being provided by our external treasury advisers on the evening of 14 January 2016. A reminder about this event has been included in the Member’s Bulletin but at the time of writing there is still plenty of space available.”

Additional question by Councillor C C Pond

Councillor C C Pond thanked Councillor Stavrou for her response and asked that when the Council was required to take out a loan for the required expenditure, that the information be made available in the Members Bulletin.

Response by Councillor S Stavrou

Councillor S Stavrou advised that the loans referred to were in relation to the capital programme for the Langston Road and St John’s Sites for £12.3m in 201615/16 and £12.6m in 2016/17 and that the figures would be revised and Members would be kept up to date.

(b)       Investments by the Council

By Councillor S Neville to Finance Portfolio Holder, Councillor S Stavrou

“Can the Finance Portfolio Holder please advise:

a) Epping Forest District Council's (EFDC hereafter) current investments;

b) Which of those investments are defined by EFDC as long term and which as short term;
c) The criteria by which the investments were made; and
d) The equality and environmental impact assessments which, if any, informed investment decisions.”

Response by Finance Portfolio Holder, Councillor S Stavrou.

“I would like to thank Councillor S Neville for the question as it gives me another opportunity to talk about the very important subject of Treasury Management. My response is as set out below –

a.            The Council’s investments as at Friday 11 December 2015–

The items shown with no start or end date are instant access accounts.

b.            An investment is normally defined as long term if the term is a year or more, so in the table above the investment with Northumberland Council and the second investment with Lloyds would be regarded as long term.

c.            The criteria by which investments are made are set out in the Treasury Management Strategy Statement and Investment Strategy which goes to Council in February each year as part of the budget papers. The basic principle is that the security of the investment is more important than the return on the investment. As the Strategy runs to several pages it is not practical to include the whole document as part of this answer but if more detail is required you should refer to pages 121 to 144 of the Council agenda for 17 February 2015.

d.            Decisions on investments are taken by the Director of Resources under delegated authority and equality and environmental impact assessments are not required for such decisions.

As I have already stated in my previous answer to Councillor Pond, I am sure there are many Members who would benefit from some training on Treasury Management. It is an interesting subject and I strongly recommend the annual seminar being provided by our external treasury advisers on the evening of 14 January 2016.”

Additional question by Councillor S Neville.

Councillor S Neville thanked Councillor S Stavrou for her response and asked about the ethical nature of investments and what could be done, if anything.

Response by Councillor S Stavrou

Councillor S Stavrou advised that the main ethical provider at that time, were the Co-operative Bank and unfortunately their credit rating did not meet the Council’s minimum requirements, although if Councillor S Neville was able suggest any other ethical providers, the Council would be happy investigate.