Issue - meetings

Resources Portfolio

To consider report FIN/441 of the Head of Finance, Revenues and Benefits.

The Cabinet Member for Resources presented FIN/044 by Head of Finance, Revenues, and Benefits –which sought Cabinet approval for the Council to become a founding member of a local government mutual insurance scheme. It was confirmed that becoming a member of the mutual did not restrict the Council to have to purchase its insurance from them, when its insurance needs renewing next year.

RESOLVED

The Cabinet:

1.         approves the Council’s participation as a Founding Member of the new Local Government Mutual.

2.         nominates the Leader of the Council to be appointed as a Founding Member committee member and to oversee and make strategic decisions in respect of the Mutual’s build phase activity pending trading.

3.         delegates the authority to the Head of Finance, Revenues and Benefits in consultation with the Leader of the Council to approve and execute any documentation necessary to give effect to recommendation 2.1 (a) above. (Generic Delegation 8 will be used to enact this recommendation).

4.         notes that a further report with a business case for utilising the mutual would come back to Cabinet when the Council’s current long term agreement for insurance cover comes to an end.

Reasons for the Recommendations

Local Government Mutual aims to offer the prospect of affordable, high quality risk transfer and risk management through a mutual structure for the benefit of the local government sector. It may make a valuable contribution to sector-wide efficiencies and financial stability. Participation in the manner described above allows the Council to contribute to the establishment of the new Mutual without exposing itself to any financial or operational risk.

To confirm there is no commitment to using the services of the Mutual at this stage or in the future, unless there is a justifiable business case.