Issue - meetings

To consider a report by Councillor Bobby Feeley, Lead Member for Social Care and Children’s Services (copy enclosed) which requests support for Cefndy Healthcare’s business case for investment.

RESOLVED - that Cabinet:-

(a)       receives the report and notes Members comments.

(b)       supports the proposal for investment, Option C, subject to agreement from the Strategic Investment Group, and

(c)  supports an approach to Welsh Government for a Capital Investment Grant to cover the full costs in recognition that the impact of the removal of the business's DWP funding would create a far greater pressure on the benefit system without this investment.

Councillor Hugh Irving presented the report, circulated previously, on Cefndy’s past performance and the need for future investment.  It was explained that although financial and service performance had been good, Cefndy had delivered on-going efficiencies which had inhibited the service from investing in its factory infrastructure. 

A commitment had been made in the Corporate Plan to support Cefndy’s future existence by approving capital investment.  The report provided justification for capital investment and outlined options for new plant to enable Cefndy to progress and become sustainable without the need for on-going revenue support from Denbighshire.  A summary of Cefndy Healthcare, a Denbighshire supported business, had been included in the report, and a copy of Cefndy’s Business Plan had been included as Appendix 1.

In the last 5 years Cefndy had increased sales performance by £1m, to £3.8m, and reduced financial dependency on Denbighshire by over £200k.  However, challenges now faced compromised the sustainability of the business/service and at worst, could even threaten Cefndy’s viability of existence if not addressed.  The officers provided a detailed summary of the Options available which had been included in the report and in Appendix 3:-

a.  Carry on with the existing plan and remove Denbighshire subsidy.

b.  Maintain a level of subsidy for an extended period.

c.   Capital Investment as per the Corporate Plan.

The following information had also been included in the report:-

-               How the decision would contribute to the Corporate Priorities.

-               Costs and their effect on other services.

-               The main conclusions of the Equality Impact Assessment, Appendix 4.

-               Consultations undertaken.

-               Chief Finance Officer Statement.

-               Risks and the measures taken to reduce them.

In response to concerns expressed by Councillor Jeanette Chamberlain-Jones regarding problems experienced by members of staff as a result of the utilisation of out buildings and storage containers on site, the General Manager: Cefndy Healthcare confirmed that the use of the facilities would continue and that the issues of concern raised had been addressed.  The Corporate Director: Modernisation and Wellbeing explained that efforts had been made to secure suitable alternative accommodation but these had been unsuccessful.

The achievements attained by Cefndy in reversing the trend of increasing dependency on Denbighshire’s financial underpinning, by delivering commercial growth and financial efficiencies, were acknowledged by Cabinet.  Councillor Irving highlighted the contribution made by Cefndy to the local economy and in providing employment for people with disabilities.

Members considered the Options and supported the recommendation in the report for Option C, by allowing investment that would lead to financial sustainability without Denbighshire budget.  Cabinet also agreed to support an approach to Welsh Government for a Capital Investment Grant to cover the full costs in recognition that the impact of the removal of the business's DWP funding would create a far greater pressure on the benefit system without this investment.   (PG & DLH to Action)

RESOLVED - that Cabinet:-

(a)       receives the report and notes Members comments.

(b)       supports the proposal for investment, Option C, subject to agreement from the Strategic Investment Group, and

(c)  supports an approach to Welsh Government for a Capital Investment Grant to cover the full costs in recognition that the impact of the removal of the business's DWP funding would create a far greater pressure on the benefit system without this investment.

(PG & DLH to Action)