Agenda item

To outline the progress made with rationalising the County’s agricultural estate, investment to date in the estate, the number of units let and the length of leases, the number of units surrendered, the number of units sold and the capital realised from their sale, and the staffing structure within the Agricultural Estate department.

11:00 - 11:45

EXCLUSION OF PRESS AND PUBLIC

RESOLVED that under Section 100A of the Local Government Act 1972, the Press and Public be excluded from the meeting for the following items of business on the grounds that it involved the likely disclosure of exempt information as defined in Paragraphs 12, 13 and 14 of Part 4 of Schedule 12A of the Local Government Act 1972.

PART II

The Lead Member for Finance and Assets gave an overview of the confidential report previously circulated. He highlighted the particular relevance of distinguishing between the two types of tenancy agreements currently in place.

Tenancies held under the Agricultural Holdings Act 1986 (AHA ‘86) are favoured towards the tenants with maintenance responsibilities held by the Authority. They are seen as lifetime tenancies, should the tenant cease farming the Authority would be liable to provide alternative accommodation. Alternately tenancies formed under the Farm Tenancies Act 1995 (FBT ‘95) offer more flexibility to liaise with tenants and the onus for repairs and maintenance is down to the tenant rather than the landlord.

Property Services are actively working on freeing up farm property for disposal by moving tenants under AHA ‘86 terms to alternative farms with less of a maintenance requirement / budget burden. However they are only a small team who are dependent on fee income who have been called to deal with other Corporate Priorities - e.g. compulsory purchases in West Rhyl and condition surveys of arms length corporation sites – which left only the 0.5 full time equivalent surveyor to work on the back log of agricultural estates issues.

Cllr. Hughes raised concerns that houses on farms do not fall under the requirement of Welsh Housing Quality Standard, that they may be dilapidated, cramped and not fit for purpose for a family. Cllr. Hughes suggested that capital receipts for agricultural estate disposal should be used for renovation of farm houses.

Cllr. Thompson-Hill responded that there was previously a policy of ring fencing capital receipts but it wasn’t delivering the levels of funds needed. The Authority have had to focus on the health and safety aspect of the estates rather than the renovation.

The Valuation & Estate Manager (VEM), David Mathews confirmed that some farm buildings are in so much need of work that it would be more cost effective to replace than repair them. Where the work is required on the farm house the best solution would be disposal. He ruminated that the Authority could retain a sizeable agricultural estate but significant changes needed to be made.

Cllr. Roberts questioned the absence of a professionally qualified Rural Practice Surveyor within the Council and the risk this imposed.  The VEM responded that they are employed as consultants when finances allow and they are needed – for rent reviews for instance.

Cllr. Roberts asked for clarification regarding the use of Legal resources. The VEM confirmed that they usually consult the in-house legal executives but the FTA ’95 also provides for valuers / surveyors to draw up the tenancies. The VEM has been undertaking this role as he has several years’ experience and understands the language involved.

A discussion ensued regarding the current position of County farms including tenant’s leases, usage, rents and alternative options. Members asked whether there was enough emphasis on generating capital receipts by disposal of agricultural properties? Where disposal was not an option why was the rental income far less than would be expected in the private sector?

The Property Manager, Dave Lorey, conceded that the strategy for agricultural estates needed to be reviewed as did the terms of reference for the Agricultural Estate Board.

Resolved: - that

(a) a meeting of the Agricultural Estate Working Group be convened urgently with a view to devising a clear long-term vision for the Council's Agricultural Estate and develop a robust strategy to deliver the vision.  The Working Group should to review its Terms of Reference, meet on a regular basis and conduct a condition survey of all holdings with a view to delivering the vision; and

(b)  a report be presented to the Committee at its meeting on 12 June 2014 outlining the progress achieved to date in progressing the above