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Questions to the Cabinet Resources Committee on the Local Authority Trading Company: Privatising Adults and Housing Services.
1) If the LATC fails to make the profits outlined but makes losses instead will the Council bring the services back in-house?
2) The council wholly owns the LATC. What is the logic of extracting a “profit” from payments it makes and which now incur tax liabilities?
3) How does the drive for the LATC deriving profits from Direct Payments influence the level at which Direct Payments are set?
4) P.25 6.32 “The LATC should charge full market value for the goods or services it provides to the Council given that its tax liability will be based on the market value for such goods/ services.” What effect could this have on the level of Direct Payments issued to service users?
5) In the table 3 p.23 6.15 many of the amounts remain constant over the period of 4 years – is this realistic?
6) If surpluses are liable to Corporation Tax, why is this not reflected in the table?
7) At p.43 2.4 shouldn’t the cumulative figure in the table for year 3 and year 4 be a loss and not a profit? If no, why not?
8) P.64 7.1 Why does this not reflect the profit after tax?
9) Where does the figure of £49 million come from for the BarnetGroup Ltd p.32
9.18 and why is this not reflected in the table p.64 at 7.1 for the Barnet Group?
10) P.16 4.3 “The BarnetGroup Ltd could offset any corporation tax liability with additional trading activities” – what are the additional trading activities?
11) Which services are at risk of coming under a decision to close by April 2013 if they are not viable (p.51 table under 3.17.4)?
12) In the table listing risks p.50-51 there are no strategic risks lists, such as market penetration – what is being done to come up with a list of such risks and
the planned mitigation?
13) Where is the cost reduction programme referred to in the box against “Your Choice” (p.51 table)?
14) P.67 table at 1.1.5 identifies clients with no SWIFT ID – what are the business risks resulting from this?
15) From where will the group and its subsidiaries obtain working capital and where is the cost of this working capital?
Governance and TUPE
16) p.52 3.19.5 makes mention of a Barnet Group Procurement Officer. Who employs this person if BarnetGroup Ltd has no employees?
17) Who is the employer the Chief Executive Tracey Lees?
18) Remuneration has become a national issue therefore, what is the Governance arrangement for determining the remuneration of the Chief Executive and Directors?
Consultation
19) There is mention of unit costs in day services equating to one half day rather than one day. What are the plans for consultation with service users and their
carers with respect to this?
20) There is mention of moving to opening 7 days/ week and extending the opening times. What are the plans for consultation with staff, service users and carers with respect to this?