To consider a report containing information with regard to the possible creation of a Teckal compliant company prior to it being considered by Homes PDG on 14th September 2021.
The Committee had before it a * report containing information with regard to the possible creation of a Teckal compliant company prior to it being considered by Homes Policy Development Group on 14th September 2021.
The Deputy Chief Executive (S151) provided a response to the question raised in public question time stating that there had been a delay since the subject of a Teckal Company had been raised 2 years ago. He had therefore highlighted the original principles within his report. He referred to a report that was presented to the Homes Policy Development Group in July and the Member Briefing that had taken place at the beginning of September which had been well received. With regard to the outcomes, value for money was a consideration, the committee would consider the report today and make their views know (verbally via the Chairman) to the Homes Policy Development Group that was meeting the next day; a report would then be presented to the Cabinet who would consider the legal and financial information and then a recommendation would be made to Council.
The officer then outlined the contents of the report, highlighting the presentation attached to the agenda pack, which considered the legal framework for delivering houses through companies. He stated that the Council needed to be clear with regard to how it wanted a Teckal Company to work and requested that Members provide a steer to the direction of travel for such a company.
Consideration was given to:
· Whether the aims of 3 Rivers Development Limited should be reviewed and rather than the aim to make money for the Council could it be set up to provide social housing
· Why were the Council considering the setting up of a Teckal Company and what were the implications
· The aspirations of 3 Rivers and the plans for its future
· Did 3 Rivers have a role for the Teckal Company and had the Cabinet and 3 Rivers considered this?
· The issue of Right to Buy and had the impact on the HRA been considered
· The financial options had not been considered, there were affordability issues and implications from borrowing from the PWLB
· The benefits of a Teckal Company for MDDC and what would be the desired outcomes to include any drawbacks
· How would a Teckal Company work – how would it impact on the HRA, Right to Buy and 3 Rivers. Would a Teckal Company dodge the Right to Buy – there was a need to see some modelling on all of these issues
· Whether a Teckal Company would take over from the HRA with regard to replacement houses and would such a set up control the Right to Buy
· The need to explore the issues with other councils utilising a Teckal Company and receive further information with regard to this
It was agreed that the views of the committee, as set out above would be put before the Homes Policy Development Group the following day.
Note: *Report previously circulated copy attached to minutes.