Decision details

EAST MIDLANDS DEVELOPMENT CORPORATION - INTERIM VEHICLE THE ESTABLISHMENT OF EM DEVCO COMPANY LIMITED BY GUARANTEE CLG

Decision status: Recommendations Approved

Decisions:

The Committee considered the creation of a company, also known as an interim vehicle, to unify the efforts of relevant local authorities in ambitious projects for the development of three major sites, namely Toton and Chilwell centred on the HS2 Hub, Ratcliffe on Soar power station and East Midlands Airport.  The Council would be a minority shareholder in the company, which would be a forerunner of the statutory Development Corporation to be created by Parliament.

 

There was concern that the funding was to come from reserves and that it could be wasted on the company, rather than invested in development.  It was noted that the annual business plan would have to have consensus from each of the participating local authorities.  Discussion progressed on to the difficulty for balancing the ability of the company to make decisions and the need for each local authority to have their views reflected in actions.  There was also concern about the lack of certainty around the HS2 project.

 

The debate progressed on to the possibility that planning powers would be transferred from the Council to the interim vehicle, meaning that the usual level of local accountability would be lost. 

 

The proposal to create a freeport at East Midlands Airport was discussed with particular reference to the need for high quality employment in unionised industries and the skills agenda.

 

It was proposed by Councillor M Radulovic MBE and seconded by Councillor G Marshall that the conditions of the recommendation to Council be amended to include the following:

e) that the Council will look to ensure that the freeport proposition and any development on the Ratcliffe on Soar site is consistent with the Council's net carbon zero climate change strategy ambitions and contribute to regional resilience and clean growth and that the ambition for the national skills academy in the Broxtowe area be further developed and strengthened.

 

On being put to the meeting the proposal was carried.

 

RECOMMENDED to Council that:

1.         The proposal for the Council to join the interim vehicle and participate in its incorporation be approved.

2.         The Council enter into a proposed Members agreement and articles of association as outlined in appendix 2 (the final content of these documents being delegated to the Chief Executive in consultation with the three group leaders).

 

RECOMMENDED to the Finance and Resources Committee and Council that the expected financial contribution of £500,000 over three financial years funded from the Council’s general fund reserves, with the profile from 21/22, 22/23 and 23/24 to be confirmed, subject to the following conditions:

 

a)      That the funds will not be used in a manner which contravenes state aid rules,

b)      If the government decides not to financially contribute to the interim vehicle the Council, will reserve the right to review its financial commitment;

c)      If government policy changes so that the HS2 hub station does not come to Toton the Council, will reserve the right to review its position

d)      For consensus on a number of key points namely agreement by the council’s representative on the board to the annual business plan; changes to the articles, the process for appointment of independent directors and the decision to move to a statutory development company.

e)      That the council will look to ensure that the freeport proposition and any development on the Ratcliffe on Soar site is consistent with the Council's net carbon zero climate change strategy ambitions.

f)      That the council will look to ensure that the freeport proposition and any development on the Ratcliffe on Soar site is consistent with the Council's net carbon zero climate change strategy ambitions and contribute to regional resilience and clean growth and that the ambition for the national skills academy in the Broxtowe area be further developed and strengthened.

 

RECOMMENDED to Council that the appointment of a Director of the Interim Vehicle be approved.

Publication date: 30/04/2021

Date of decision: 02/12/2020

Decided at meeting: 02/12/2020 - Policy and Performance Committee

Accompanying Documents: