The Chair agreed as it was the first Investment Advisory Panel Meeting, to hear as an urgent item of business an introduction to the Committee from Officers followed by a question and answer session from Members.

The Deputy Monitoring Officer explained that it was noted by Commissioners that there was no Investment Committee at Thurrock Borough Council.  The way the Local Authorities (Functions and Responsibilities) (England) Regulations 2000 (as amended) is set up, the majority of investment functions are executive/cabinet side functions. Therefore, that ruled out the General Services Committee acting as an Investment Committee and the desire to have a mix of cabinet/non- cabinet members sitting ruled out scrutiny.

The Local Government Act 1972 act allows advisory committees to be set up. Advisory Committees are not a decision making body but can keep an overview of investment activity and where necessary give advice to the Cabinet. It can also include Co-opted members who can provide specialist advice and expertise. Therefore, an advisory committee was considered the best starting point for members to drive the agenda and to ensure proper decision making.

Councillor Anderson stated that it was a good idea to have external experts, talent doesn’t exist in the Council to publicly scrutinise as members are not experts.

Councillor Watson raised that the first meeting should have taken place in July, some work has now gone through Cabinet and Full Council regarding the first tranche of properties to be sold. Councillor Watson queried when the second tranche are due to come.

The S151 Officer confirmed that this was correct but the reports were taken to Cabinet and Full Council for transparency and the decisions could have been made without this. The S151 Officer stated that moving forward a half year Treasury Management report will be available. It is a useful document to be brought to the next meeting and Members should be receiving monitoring advice on how the investments are performing. There is a pace issue as the sooner the Council can divest the better as it can pay down the debt and reduce interest. The Council are using outside experts Stanhope, they could be invited to attend the next Investment Advisory Panel meeting.

Councillor Rigby arrived at 19.08

Councillor Snell raised that the objective of the Investment Advisory Panel is to advise and the purpose of the S114 is to divest, he queried what advice they can give other than not to do it.

The S151 Officer responded that the Investment Advisory Panel acts as a check and balance. It is better that members are informed, that is part of good governance. The Council has lots of investments and should be receiving monitoring information regularly.

The Interim Director of Place stated that there was a question over whether the disposal of property is relevant to the Investment Advisory Panel unless it is an asset that is producing income it will need to be worked out if it is better to keep. Thurrock Council has not had an active property strategy. The disposals report already goes to FRB, IRB and probably Cabinet.

Members agreed it would be useful to know the return on investments even if the intention will still be to dispose to reduce the debt. If in the future when the debt is reduced and reduction of debt is not the driving force the Council may have a property investment.

Councillor Snell queried if any properties bring in over 12%.

The Interim Director of Place responded that out of the properties brought forward, none brought in over 12%. The Interim Director of Place summarised that in the short-term Thurrock Borough Council will be a divestor of property and not an investor due to the current financial position.

Councillor Snell agreed there was no point bringing properties to be divested through the Investment Advisory Panel as they already go through three different boards.

Councillor Massey agreed an overall report would be helpful but it is not necessary to have them all in detail.

The Interim Director of Place confirmed a schedule of properties will be published in the future with some exempt information which may not be published. The Interim Director of Place clarified that an annual update as to how remaining income streams are performing might be useful and how the Council is managing those assets.

Councillor Watson agreed with the Interim Director of Place and queried if a full asset register was in existence.

The Interim Director of Place confirmed that a better one is now in place but he would be hesitant in confirming it is a full register yet. The Interim Director of Place confirmed that the Council has not in the past regularly assessed the yield and net yield.