You are not currently logged in.
Thursday, May 24 2012

November 24: Not in the public interest?

Kent County Council logoWHEN auditors gave Kent County Council a clean bill of health over its commercial trading activities and concluded that it was not competing unfairly against businesses through its various companies, a number of recommendations were made.

Among them was the auditors’ suggestion that KCC seek to be more transparent about what it was doing in the commercial services area and put more information into the public domain.

The full recommendation was that KCC seek to "maximise disclosure of information in its commercial undertakings, subject to exercising proper commercial sensitivities, including expanding the disclosure of its commercial activities in its own annual financial statements."

The ruling Conservative administration duly pledged that it would seek to be more open in the face of complaints from some companies that it had in the past been rather too secretive.

And as a start, it set up a sub-committee specifically to allow greater scrutiny to be given to the activities of its commercial operations – the Governance and Audit Committee Trading Activities Sub Group, which met for the first time in September.

Its next meeting comes next week but anyone expecting to glean information about what is happening around KCC's commercial activities might be a little disappointed.

Of the eleven items on the agenda, more than half are to be discussed behind closed doors as they have been ruled exempt under a piece of legislation known as the Local Government (Access To Information) Act 1985.

This allows councils the discretion to discuss some matters without either the press or public being present and one of the grounds for doing so is if they are in some way commercially sensitive.

As a result, reports that won’t be considered in public include the following: the business case for limited company private hire operation; the business case for Kent County Supplies Ltd; a loan agreement to Kent Top Temps; the return on investment from Kent Top Temps; an item on limited company accounts and something referred to as "dividend policy – private companies."

For all these items, KCC has had to apply a public interest test, weighing up whether disclosure would serve the public interest more than withholding relevant information. The agenda does not spell out the specific public interest reasons for considering any of these items behind closed doors.

So it is difficult to know precisely whether the grounds for the exemption applied are valid or appropriate – although I am not contending that they have not been carefully considered.

On the other hand, some may well find it sits uneasily with the recommendation from auditors that KCC seek to "maximise disclosure" or assist the committee in its endeavours "to ensure that the trading activities of the Council are run properly and transparently."

 

Tuesday, November 24 2009

The KM Group does not moderate comments.
Please click here for our house rules.

Comments (1)

Comments closed

  • Dave, Tonbridge wrote:

    Trading activities legal or not?

    Paul, I can see nothing in the agenda regarding AOB item from Septembers meeting. Namely:

    5. Any Other Business
    (Item 5)
    Mr Rotolo informed the Group that following a legal case involving the LB of Brent
    and the insurance mutual established by a Group of London Boroughs he was
    instructing external counsel to review all of KCC’s trading activities.
    I am sure a large number of Kents struggling traders will be interested in the outcome.

    If the external counsel has not yet reported back then KCC are going to get a rather large bill for his service.

    24 Nov 2009 9:03 PM

    Report Abuse

Terms of Comments
We do not actively moderate, monitor or edit contributions to the reader comments but we may intervene and take such action as we think necessary, please click here for our house rules.. If you have any concerns over the contents on our site, please either register those concerns using the report abuse button, contact us here, email multimediadesk@thekmgroup.co.uk or call 01634 227834.

Advertisement

Copyright: You may not copy, reproduce, republish, download, post, broadcast, transmit or otherwise use content on this site in any way except for your own personal, non-commercial use. You also agree not to adapt, alter or create a derivative work from any content on this site except for your own personal, non-commercial use. Any other use of content requires the prior written permission of the KM GROUP. Read full terms and conditions.