Issue - meetings
CEFNDY HEALTHCARE: FUTURE DIRECTION AND IMPACT OF POTENTIAL LOSS OF DWP FUNDING
Meeting: 25/06/2013 - Cabinet (Item 8)
8 THE FUTURE OF CEFNDY HEALTHCARE PDF 89 KB
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.
Additional documents:
- Cefndy App 1, item 8 PDF 207 KB
- Cefndy App 2 , View reasons restricted (8/3)
- Cefndy App 3, item 8 PDF 247 KB
- Cefndy App 4 , View reasons restricted (8/5)
Decision:
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.
Minutes:
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)