Issue - meetings

The Council had before it the recommendations of the Executive in respect of the Thameswey Business Plans for 2020-23.  The intention was that the Thameswey Group would continue to work to the 2020 plans in 2022 ahead of a full review for 2023 following the development of the Council’s Corporate Strategy.

During the debate, it became apparent that a number of Councillors felt removed from the work of the Thameswey Group of Companies and their objectives.  In view of this, Councillor Barker moved and Councillor Kirby seconded an amendment to the recommendations, namely the addition of a new recommendation (ii) to be inserted between the existing recommendations (i) and (ii).  The new recommendation would read:

“(ii)    Council establish a review to assess how ThamesWey is delivering against the original objectives for each company, with the results used to inform the future business plan;”

The Members discussed the proposed amendment and welcomed the suggestion to undertake a review of the objectives of the Thameswey Group of Companies, noting that several of the arms-length Companies had been established for over twenty years.

RESOLVED

That (i)    the Thameswey Group continue to operate the Business Plans for 2020-2023;

          (ii)   Council establish a review to assess how ThamesWey is delivering against the original objectives for each company, with the results used to inform the future business plan;

          (iii) the Poole Road land acquired by the Council in 2017/18, and on which the Energy Station has been constructed, be sold to Thameswey Energy Ltd and an increase to the Poole Road Loan facility of £1.3m on the same terms be agreed to enable this sale;

          (iv)  loans advanced to the Thameswey Group for less than 10 years, be allowed to be repaid and converted to long term loans of up to 50 years where there is an appropriate existing long term facility available, including consolidating to a single loan for simplification; and

          (v)   loans originally advanced to Thameswey Developments Ltd be allowed to transfer to Thameswey Housing Ltd or Thameswey Energy Ltd on the same terms as the original advance.

Reporting Person – Julie Fisher

The Executive received a report which sought approval of the Executive to recommend to Council that the Thameswey Group continue to operate the Business Plans for 2020-2023.  Councillor Azad explained that it was proposed that the Thameswey Group continued to work to the 2020 plans in 2022 ahead of a full review for 2023 following the development of the Council’s Corporate Strategy.  It was noted that it would also enable the updated plans to reflect the Financial Review of the Council’s Assets and Liabilities, and advice secured on the Group structure going forward.  A Member Briefing on the Thameswey Group of Companies had been held on 17 November 2021.

Following a question regarding the reasons for losses on Thameswey shown in 2019 and 2020 accounts, the Executive was informed that the Thameswey Business Plans were all long term in nature, making losses to start with and moving to a profitable position over time as energy customers were connected and rents increased.  It was noted that the Thameswey audits for 2019 and 2020 had now been signed off and the auditors questions had been resolved.

Following a request for more clarity on the arrangement in paragraph 4.2 of the report, it was reported that the relevant land asset was to be sold to Thameswey Energy Limited (TEL), requiring TEL to increase its loan facility to secure the acquisition.  Therefore TEL would service the financing costs for the site of the energy centre, not the Council.

Regarding Thameswey Housing Limited (THL), the Executive was advised that THL continued to develop and acquire properties for rent in the Borough, with half of the properties at affordable or social rents.

REcommend to Council

That  (i)    the Thameswey Group continue to operate the Business Plans for 2020-2023;

          (ii)   the Poole Road land acquired by the Council in 2017/18, and on which the Energy Station has been constructed, be sold to Thameswey Energy Ltd and an increase to the Poole Road Loan facility of £1.3m on the same terms be agreed to enable this sale;

          (iii)  loans advanced to the Thameswey Group for less than 10 years, be allowed to be repaid and converted to long term loans of up to 50 years where there is an appropriate existing long term facility available, including consolidating to a single loan for simplification; and

          (iv)  loans originally advanced to Thameswey Developments Ltd be allowed to transfer to Thameswey Housing Ltd or Thameswey Energy Ltd on the same terms as the original advance.

Reason:   To agree the approach to Business Planning for the Thameswey Group for 2022.