Agenda item

To consider the company’s performance during 2018/19 and its Annual Plan for 2019/20.

EXCLUSION OF PRESS AND PUBLIC

The Chair advised the next item of business contained confidential information and the Committee subsequently:

RESOLVED that under Section 100A of the Local Government Act 1972, the Press and Public be excluded from the meeting for the following item of business on the grounds that it would involve the likely disclosure of exempt information as defined in Paragraph 14 of Part 4 of Schedule 12A of the Act.

The Lead Member for Wellbeing and Independence introduced the confidential report by the Cefndy Healthcare Commercial Service Manager and Operational Services Manager (previously circulated), which presented the Committee with information on Cefndy Healthcare’s performance during 2018-19 and current position in 2019-20.

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) Transitional Employment Support Grant (TESG), previously known as The Work Choice Programme, in March 2021 was expected to have a detrimental affect financially on Cefndy Healthcare.  Income from this specific grant had been lower than anticipated during 2018/19 due to staff members in receipt of the grant leaving the organisation.  However there was no current proposal to alter the zero subsidy status from the Authority.

With a view to mitigating the risks associated with the loss of Department of Works and Pensions (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 the 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;

·         explained that they were actively looking for additional opportunities to mitigate the loss of the DWP funding, including potentially an alternative delivery model for the Service.  For this purpose a Project Team had been established to support the work;

·          

·         estimated that 20 – 25 of Cefndy Healthcare employees were Denbighshire residents;

·         confirmed that all roles were evaluated and paid as per Denbighshire’s job evaluation scheme;

·         advised that disengaged and disabled children were welcome to undertake work experience provided there was no interference to the running of the business;

·         reported that Cefndy currently received a Transitional Employment Support Grant from the DWP but that programme would end on 31^st March 2021;

·         confirmed that they were exploring the potential to undertake sub-contract manufacturing work i.e. providing powder coating processes for with external businesses etc. and

·         advised that alternative delivery models were being considered and would be reported to Scrutiny Committee in due course.

Committee members thanked the Commercial Service Manager and Operational Services Manager for their attendance and comprehensive responses. The Commercial Service Manager suggested that all county councillors should be invited to attend Cefndy Healthcare to see the work undertaken at the factory. It was:

RESOLVED that subject to the above observations that

(i)            the Annual Report on Cefndy Healthcare’s Performance during 2018-19 (Appendix 1) be received;

(ii)          the findings of the Project Board’s work in drawing up an options appraisal for future delivery of the company’s business be presented to the Committee at its April 2020 meeting’ and

(iii)         a visit be arranged for all county councillors to Cefndy Healthcare to familiarise them of the business and its aims

Meeting concluded at 12.25pm