Agenda item

In accordance with Council Procedure Rule 8, to allow members of the public to ask questions about the Council’s activities.  The following submission was received:

(a)             Question submitted by Dominic Webb to the Portfolio Holder for Growth.

In accordance with Council Procedure Rule 8, members of the public were able to ask questions to an Executive Member about the Council’s activities.

(A)       Question submitted to Councillor John Ritchie, Portfolio Holder Growth by Mr Dominic Webb:

“Do the Dragonfly Group of Companies, individually or together, present a material risk to the Council either financially or reputationally?”

Councillor John Ritchie responded to the question as follows:

“I thank Mr Webb for his question to Council on the possibility of any risks being posed to Bolsover District Council by its wholly owned companies, Dragonfly Development Limited and Dragonfly Management Limited. 

As a responsible authority we take seriously our duty in protecting the Council’s interests in everything we do and looking after our wholly owned companies are no different.  Indeed given what has happened in Croydon, Thurrock and Nottingham City to mention just three, we are even more on the ball.

The Council manages risk in everything it does.  Indeed, there is a Risk Management Strategy and Risk Management Group which oversees the continuous assessment of corporate strategic risks.  The Council is also required to publish its Annual Governance Statement and work closely with its external auditors who scrutinise the Council’s finances, governance and decision making very closely.

Full governance arrangements for the Council’s companies are in place and the Council sought expert advice when setting these up to ensure they are fit for purpose.  A Shareholder Agreement has been developed and signed, together with a Service Level Agreement.  Dragonfly has in place the required Board of Directors for both companies and the Council has the Shareholder Board.  The Shareholder Board looks after the Council’s interests and that of our residents because the Council is sole shareholder, it figures that all our residents are also shareholders, with a small ‘s’ if you like.

The Shareholder Board has a role to ensure everything is all right and training has taken place.

Various documents like:

·       The Bolsover District Council and Dragonfly Shareholder Agreement and Service Level Agreement.

·       The initial Business Case which was prepared to enable the companies to be established.

·       The CEO Blueprint on having a wholly owned Company within the authority.

·       The Local Authority Company Guidance Review.

·       The Council Governance arrangements.

·       The Nolan Principles.

·       The Cadbury Review.

·       The Higgs Review.

·       The Code of Conduct for Board Members of Public Bodies.

·       Guidance checklist for elected Members on the Shareholder Function.  These are all learning points for the Shareholder Board to make sure they are doing exactly what they need to be doing.

The Shareholder Board has a responsibility to ensure the right decisions are being made and the right scrutiny is undertaken, and it is with this in mind that the Shareholder Board have agreed an overarching independent review of the Council’s arrangements and interactions with the wholly owned companies.

It should stop questions like this to Council because you can rest assured, we want Dragonfly to succeed and as the custodian of the two Companies, it would be irresponsible to see it cause financial problems for the authority and ultimately the taxpayer.  We would be asleep on the job should that occur and I can tell you Mr Webb that is certainly not the case.

Thank you Chair.”

In accordance with Council Procedure Rule 8.8, Mr Dominic Webb put the following supplementary question:

“Thank you for that answer it was a lengthy answer I think the question needed just a simple yes or no of which I note you actually didn’t say yes or no but reminding myself I am meant to be asking a question.  You mentioned that there is to be a review into the Dragonfly arrangements.  On the 4^th October the Monitoring Officer confirmed to me that the scope of the review had still not been defined but that the intention was to instruct an independent body to undertake the review and in light of the council now, and I am thankful that the council have published as such all the board minutes for both Dragonfly companies it is clear that there is conflict between the Council and the Dragonfly Directors over whether this review should be independent or should be internal.  Will the Council commit today that the review into Dragonfly will be done by an independent third party and when will those results be made available to the public?”

Councillor John Ritchie, Portfolio Holder for Growth made the following response:

“I can answer today because I have answered already that there will be an overarching independent review of the interaction between the Council and the companies.  When exactly that will happen, it will be after Christmas now obviously but it will be an independent overarching review.”

Councillors Emma Stevenson, Janet Tait and Carol Wood left the meeting prior to the start of the next item having previously declared an interest.