Report of the Chief Executive.
Minutes:
It was requested by the Committee at its meeting on Monday 11 April 2016
that an update be provided on Devolution. The issue was subsequently added to the Committee’s work programme so that the context of the Devolution agreement for the North East could be considered at this meeting.
The Committee received a PowerPoint presentation which detailed the background to devolution, set out the implications of being a Non Consenting Authority and showed how the governance arrangements had developed.
Within thematic areas the Committee considered and acknowledged the implications for the Council of being a member of the Mayoral Combined Authority and of being a Non-Consenting Authority (NCA).
The Committee noted that that access to funding would be more difficult for the Council as a Non-Consenting Authority.
It was clarified that the bid for funds to support the further development of Gateshead Quays is the biggest single bid within the North East Combined Authority (NECA) area and there were concerns that this would be put at risk if Gateshead was a NCA. It was noted that the Council could directly request that the Government test the strategic benefits of this and other standalone projects (and to support where appropriate) however this could prove unsuccessful.
It was queried whether the importance of the Gateshead Quays project to the region could be tested informally. The Committee was advised that the scheme has attracted interest from the private sector and is at the centre of the region therefore it remains a strong deliverable project with local and regional benefits.
It was queried whether the Mayoral Combined Authority (MCA) could reasonably disadvantage Gateshead as a Non-Consenting Authority. It was clarified that the MCA will have a duty to represent the interests of its geography and will prioritise resources accordingly.
It was commented that the value of the MCA cannot be fully considered due to the amount of uncertainty that remains.
Concerns were raised about the impact on funding should the United Kingdom leave the European Union.
It was commented that the quality of the Devolution deals across England vary significantly. It was suggested that NECA could have negotiated a better deal.
Some Councillors argued that despite the uncertainty, unity with neighbouring Local Authorities and involvement in the ongoing devolution process from within the MCA is a practical approach.
It was queried whether Gateshead, as a Local Transport Authority (LTA), would require additional staffing and if so what the cost implications would be. It was reported that details are being worked through but this would increase costs for the Council.
It was clarified that the Government will decide the Local Transport Authority with which to allocate assets and liabilities (including historic debt).
As a LTA the Council would no longer be required to contribute to services which do not directly benefit residents but conversely Gateshead is currently a net beneficiary of concessionary travel and therefore additional capacity would be required.
RESOLVED: i) That the information be noted.
ii) That the views expressed by members of the Committee be used to inform the Councils approach.