Agenda item

To agree the cost recovery process for the Public Protection Partnership and explain how it will affect fees and charges in the future.

The Committee considered a report (Agenda Item 8) which sought agreement on the cost recovery process for the PPP and explained how it would affect fees and charges in the future.

Councillor Alison Swaddle queried what level of free advice should be offered. Steve Broughton commented that this was a tricky are and was to some extent dependent on the size and nature of the business. In general terms he felt that they should be charged as the costs would be tax deductible.

The Chairman noted that the options were set out on page 66 of the agenda pack. Councillor Pauline Jorgensen stated that it might be difficult to establish the number of employees and that there was the potential that the callers could misrepresent the size of their business. Paul Anstey accepted this point but stated that Officers would have some ability to work out the size of the organisation. Councillor Marcus Franks stated that it would be necessary to trust people enough not to misrepresent the facts.

Councillor Nick Allen stated that it was difficult to evaluate the options  without any detailed costings and information on the level of resources required. Paul Anstey responded that any analysis would have to be in general terms. The Joint Management Team believed that it was realistic to estimate that 5% of all contact with the PPP was asking for advice relevant to businesses. This equated to approximately 1000 enquiries per year or 20 per week. If the PPP was able to convert 10% of this business into a one hour chargeable service income of circa £5.3k would be possible. It was agreed that the situation should be reviewed in twelve months time to see if it was making ay difference wither by decreasing demand or increased income.

Members felt that it would be to provide general advice for free but that any advice that was site specific would have to be charged for. Councillor Emma Webster commented that when setting up a business the employer was likely to seek advice from accountants or lawyers which they would pay for. Therefore 30 minutes of free advice for a small company (less than five employees) was reasonable.

Sean Murphy noted that bigger companies already sought advice from the PPP and that there was a statutory framework in place to deal with these enquiries.

Members agreed that Option 1 should be adopted i.e. each local business with less than five employees would be limited to 30 minutes of free advice per year. They also agreed that this process should be monitored and that a report should be brought back to the Committee in twelve months time to evaluate income, demand and trend data. The parameters could then be adjusted if required.

Members requested that recommendation 2.2 be amended to state: the ability to vary recommend (Insert) the hourly rate be delegated to the Joint Management Board

RESOLVED that:

1.    the principles outlined in the Cost Recovery report be agreed.

2.    the ability to recommend the hourly rate be delegated to the Joint Management Board.

3.    the amount of free advice to be provided to small businesses employing 5 or less people be agreed.

Other options considered:

1.      Keep free business advice for all.

2.      Create a customised charging scheme based around type of business, scale of business, location of business etc.