Agenda item

To consider a confidential report (copy attached) which seeks the Committee's comments on the Estate's performance under the current strategy, and members' observations for consideration as part of the formulation of the new strategy for the Estate.

12:00 – 12:30

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 13, 14, 15 and 16 of Part 4 of Schedule 12A of the Local Government Act 1972

 

 

The Lead Member for Finance and Assets introduced a confidential report (previously circulated) on the Agricultural Estate's performance in delivering its current strategy to the Committee.

 

He explained that there were two types of tenancy agreements:

 

·        the Agriculture Holdings Act 1986 which provided for a full agricultural tenancy with less control from the Landlord’s point of view, traditionally covering a long term tenancy agreement;

·        the Agricultural Tenancies Act 1995 or Farm Business Tenancies which are more commercially minded and equitably share the burdon of responsibility between landlord and tenant.

It was explained that local authority agricultural holdings were a legacy which most local authorities had inherited from predecessor authorities who had invested in land at the end of World War 1 to provide returning soldiers with a foothold onto the farming ladder, and as a way of feeding the population.

 

It was acknowledged that the nature of the agricultural industry, where the value of assets were far higher than any income that could be derived from any farming business, meant that agricultural tenancies had to be medium to long-term arrangements. 

 

The capital value of the Estate is considerably affected by the number of tenancies in place i.e. vacant possession considerably increases value. Tenancy agreements are being reviewed and as they are released the land/farms are being sold.

 

Under the current strategy (adopted 2010) Denbighshire had realised capital receipts in the region of £1.9m through the disposal of non-viable agricultural units.  It was anticipated that two other disposals would be made on the open market by the end of the financial year.

 

Part of the capital receipts received to date had been reinvested into the Estate to address Health and Safety, urgent maintenance work or improvements to operational functions rather than cosmetic alterations.

 

The Committee were informed (outlined in an appendix to the report)  that the capital works identified for investment would be subject to a bid and scrutiny with other capital projects to the Strategic Investment Group (SIG). However, there was no guarantee that they would be successful, particularly in light of budgetary constraints.

 

The following responses were given to the Committee’s queries:

 

·        the proposed capital funding bid relating to electrical testing referred to health and safety work on the entire estate;

·        farm land included within the Local Development Plan is being considered for disposal as it becomes available;

·        with exception of succession from father to son there have been no new tenants in recent years;

·        there has been an amalgamation of some farms’ land to make them more viable;

·        land/property is usually sold with a claw-back clause that provides for a percentage to be paid back to the Council if the property is resold at a higher value within a certain period of time;

·        the appointment of a qualified valuer to the Estates staff had increased capacity to deal with the workload and manage the Estate.  The valuer had undertaken work on the rental income from the Estate and had concluded that the rent charged was in line with that of public and private estates;

·        members’ questions relating to individual holdings were also answered by officers.

 

The Committee were advised that the new draft strategy for the Estate was nearing completion and should be available for consultation in the near future.

 

It was:

 

resolved: 

(i)  subject to the above  observations to note the Estate's performance under the current strategy;  and

(ii)  that the new draft Strategy for the Agricultural Estate be presented to the Committee for consideration in February 2015 

 

Part 1.