Minutes:
The Director reminded the Members that, at its meeting on 28th March, it had agreed to provide funding to the Employment Services Board for a period of three months under the special expenditure powers as set out in Section 115 of the Local Government Act (Northern Ireland) 1972. He pointed out that this three month period was due to end on 30th June, and subsequent to the meeting of the Committee on 15th June, a formal request had been received from the Employment Services Board for the Council to extend, for a further period of six months, at a cost of £30,000, its support to the organisation.
The Legal Services Manager outlined the Committee’s options to provide funding under the special powers set out under Section 115 of the Local Government Act (Northern Ireland) 1972, a summary of which is set out hereunder:
1. the Council has the power to incur expenditure, subject to it being satisfied that a direct benefit will accrue and that the benefit will be commensurate with the payment made;
2. the Council must objectively assess that there will be a direct benefit in terms of the objectives of the organisations as opposed to contributing to the running costs;
3. incurring expenditure to the extent that other projects or other agreed corporate objectives were compromised or prejudiced could leave the Council vulnerable to legal challenge; and
4. whilst there was an existing policy on Section 115 payments, the scale of the payment in this case required careful consideration in the context of the current climate of economic retrenchment and potential equality impact.
The Legal Services Manager pointed out that, should the Committee agree to extend funding to the Employment Services Board, it must be satisfied that any existing commitments of the Department would not be compromised and that direct, measurable and commensurate benefit would be accrued. He indicated also that it would be advisable for the Council to insert a caveat into any further agreement with the Employment Services Board which would ensure that payments from the Council would cease immediately should alternative funding be secured by the organisation.
A number of Members expressed concern that, in agreeing to extend funding to the Employment Services Board, the Council might encourage other organisations to submit similar requests for assistance. A Member referred to the fact that the Employment Services Board operated primarily in the west Belfast and the Greater Shankill areas and that, by providing funding to that organisation, agencies which provided similar services in other parts of the City could argue that the Council was giving preferential treatment to one area of the City to the detriment of other areas where similar needs existed. A further Member stressed that, should the Council extend the funding, there would be an obligation on the Employment Services Board to demonstrate emphatically that it had utilised the resources in a manner which was beneficial to the City overall.
In response, the Director assured Members that any funding provided would be subject to a Service Level Agreement which would set out clear actions to be undertaken by the Employment Services Board and that the activity would be monitored to ensure that the funding was being spent accordingly.
The Legal Services Manager made the point that, whilst the Committee had set a precedent in relation to the funding of the Employment Services Board, any future requests for funding from other organisation could be deferred until the Committee had approved a strategic policy for considering such matters.
Accordingly, it was
Moved by Councillor Mallon,
Seconded by Councillor Ó Muilleoir,
That the Committee agrees to provide funding to the Employment
Services Board, for a period of six months, commencing on 1st July,
up to a maximum of £30,000, under the special expenditure
powers as set out in Section 115 of the Local Government Act
(Northern Ireland) 1972, it being the opinion of the Committee that
the expenditure would be in
the interests of, and would bring direct benefit to, the District and the inhabitants of the District, with the Committee being satisfied that the benefit so accruing would be commensurate with the payment to be made.
On a vote by show of hands eight Members voted for the proposal and five against and it was accordingly declared carried. In addition, the Committee endorsed the Council’s City-wide approach to the promotion of employability and skills development as set out within the report.