Agenda item
CEFNDY HEALTHCARE ANNUAL REPORT 2017/18 AND BUSINESS PLAN
- Meeting of Performance Scrutiny Committee, Thursday, 19 July 2018 10.00 am (Item 10.)
- View the reasons why item 10. is restricted
To consider a confidential joint report by the Commercial Services Manager and Production Manager (copy attached) of Cefndy Healthcare’s performance in 2017-18 and the 2018-22 Business Plan.
12.30 p.m. – 1.00 p.m.
Minutes:
The Lead Member for
Well-being and Independence had been unable to attend the meeting but the Lead
Member for Finance, Performance & Strategic Assets attended in her place.
The Lead Member for
Finance, Performance & Strategic Assets introduced the confidential report
by the Commercial Service Manager – Cefndy and the
Operational Services Manager (previously circulated) which presented the
Committee with information on Cefndy Healthcare’s
performance during 2017-18 and its business plan for 2018-22.
The report was
presented to the Committee for it to examine Cefndy
Healthcare’s performance and future strategic direction following the
disbanding of the Advisory Board which had overseen its work in the past. Members were advised that the purpose of the
business was “to provide meaningful well paid employment to disadvantaged
members of the community”. The loss of
the Department of Work and Pensions (DWP) Work Choice funding on 31 March 2019
would affect Cefndy’s financial standing going
forward. With a view to mitigating the risks associated with the loss of
DWP funding the Council’s Community Support Services (CSS) had assumed the
management of the Gwent Wide Integrated Community Equipment Services (GWICES),
a social enterprise comprising five local authorities and the Aneurin Bevan University Health Board (ABUHB) in the
Newport area, which operated on a similar basis to Cefndy
Healthcare. By operating both enterprises CSS could reduce unnecessary
administration costs whilst expanding its product lines and potential to
generate sufficient income to continue to provide valuable, meaningful,
well-paid employment to disadvantaged individuals on a cost neutral basis.
Responding to
members’ questions the Lead Member, Head of Community Support Services and Cefndy’s Commercial Services Manager:
·
described
the competitive market within which Cefndy operated,
in particular the difficulties encountered when competing against cheaper
imports from developing economies across the world;
·
confirmed
that Cefndy’s operating costs were slightly higher
than a number of its competitors as its priority was to keep disadvantaged
people in productive employment rather than claiming benefits;
·
advised
that Cefndy Healthcare was a department within
Community Support Services, consequently it was not permitted to make a
significant profit nor apply for social enterprise funding/investment;
·
advised
that no employees had been made redundant during 2017-18, the reduction in
employee numbers were due to retirement, leaving for other employment etc.;
·
confirmed
that Cefndy Healthcare was tendering for new
contracts on a monthly basis;
·
advised that a number of Cefndy’s
employees had been with the ‘company’ for 30 years or more which was a
testament to the business’ community value. Similar to all Council
employees those that worked at Cefndy were subject to
the local government staff terms and conditions of employment and, therefore,
entitled to sickness and pension schemes, which in turn gave them long-term
financial security;
·
advised
that Cefndy’s involvement with GWICES had opened up
new marketing opportunities and access to marketing forums which would
hopefully benefit the business in the long-term by enabling it to expand and
diversify its business with a view to securing its long-term
sustainability;
·
confirmed
that the investment made five years ago in specialist bending machinery had
enhanced the business’ manufacturing ability and would benefit the work
undertaken in partnership with GWICES;
·
outlined the membership of the former advisory
board advising that the business had originally been established by the former
Clwyd County Council and transferred to Denbighshire County Council on local
government reorganisation due to the location of its factory being in
Rhyl. Denbighshire County Council established the advisory board to
monitor the business’ performance etc. because it provided a subsidy to the
business. That subsidy had ceased some years ago therefore a decision was
taken by the Head of Service, under powers delegated to him, to disband the
Board and seek Scrutiny to monitor the business’ performance in future;
·
confirmed
that the Commercial Service Manager and the Operational Services Manager were
responsible for the day to day running of the business and any operational and
business decisions taken;
·
advised
that it was envisaged that the benefits to Cefndy
Healthcare of the CSS’s assuming the management of GWICES would be fully
realised in 2019 when the DWP Work Choice funding ceased; and
·
advised that the ratio of disadvantaged
employees to other employees at Cefndy was
70:30. This ratio included management and manufacturing staff as the
business developed career pathways for its staff to enable them to realise
their full potential
Committee members
congratulated the Council on making sure that the business continued to operate
for the purpose of securing positive life outcomes for its employees.
Members suggested that all county councillors should be invited to attend
Cefndy Healthcare to see the work undertaken at the factory
and that the Council’s Customers, Communications and Marketing Team be informed
of the visit to enable a press or media release to be issued highlighting the
business and its purpose. It was:
RESOLVED that subject to
the above observations that
(i)
the Annual Report on Cefndy Healthcare’s Performance during 2017-18 (Appendix 1)
and its Business Plan for 2018-2022 (Appendix 2) be received;
(ii)
Cefndy’s Annual Performance Report and
Annual Plan be presented to the Committee on an annual basis, with a half-yearly
performance report being provided to the Scrutiny Chairs and Vice-Chairs Group
(SCVCG) for information purposes unless circumstances necessitated an earlier
report to the Committee; and
(iii)
a visit be arranged for all
county councillors to Cefndy Healthcare to
familiarise them of the business and its aims