Issue - meetings

Commercial and Regulatory Services – to consider the attached report (C-022-2020-21) to report on the first two  quarters on Qualis performance.

Please note that Appendix C (initial Qualis Business plan) will follow.

The Portfolio Holder for Commercial and Regulatory Services introduced the Qualis quarterly monitoring report for quarters 1 and 2, 2019/20.

The meeting noted that the Governance Framework for Qualis, as agreed by Cabinet in February 2020, set the requirement that Qualis should report to Epping Forest District Council on its performance quarterly.

This report presented the first two quarters of reporting information for consideration by the Cabinet. 

Attached to this report was the monitoring report for Quarter 1 and 2 as prepared and agreed by the Qualis Board on 30 July 2020.

The key message for Cabinet was that Qualis had been actively engaged over the first 2 quarters in the set-up phase of its operation and until the transfer of assets, services and the loan facility was completed, the performance monitoring would not reflect normal day to day trading activity.

Given the above and noting the impact of Covid19 on all Council activities, Qualis had performed in line with expectations.

Councillor Heap asked if the intention was for Qualis to make money and pay taxes; there were significant board member and board costs per year; what was ‘H’ as mentioned in the paperwork; and what was ‘Holdco’. Nick Dawe replied that Qualis was set up to pay Corporation Tax on profits but would not do so in the first 2 years as there would be no profits until then. Effectively approaching tax as any commercial company would do. Their tax affairs would be available for public scrutiny and that Quails was in a tax regime.

It was agreed that members with detailed questions should contact Nick Dawe directly who would provide the answers needed. These answers, if not confidential, would be shared with all members via the Council Bulletin.

Decision: