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Tuesday, 19 May 2015

PSP Financing Limited and the Isle of Wight Council

Proposal to Enter into A Partnership With Private Sector Plc Facilitating Ltd (PSPF) To Assist With The Utilisation of Properties

Executive Decision Reference 175 (14/15) 14th May 2015


Proposal to IWC Executive for PSPF LLP by david5174




Part-transcript from the Executive Meeting (not complete, please check against the video which is a complete record)


Cllr Ian Stephens:

PLC Facilitating Limited – PSPF which is what we will call it tonight. It's a way for adding capacity to what we are dealing with regard to looking at assets we can dispose of. I think that when we are trying to raise capital funding in certain areas this is probably the best way we can do it. It costs us nothing also in the agreement it allows us, if we can find a better price elsewhere, then it doesn't tie us into anything we can go and search for that price. The 50:50 split on agreed cost with PSPF is something that people might raise their eyebrows to but there's work to be done in the background and it's also allowing us to look at the situation and if we can still make that extra amount of money it doesn't preclude us from doing that. So I'll leave it at that.

Cllr Steve Stubbings seconds the recommendation

Mr John Metcalfe:

This does give us the capacity to look at our portfolio in a creative way and a different way and whilst we might ultimately choose to go to disposal one of the things I very strongly would like to generate additional revenue from our portfolio. We'll get a huge amount of technical and professional and other advice that come as part of this particular joint venture and they bring that to the table. If we wanted to do the same thing ourselves we'd have to go out and get it.

Cllr Jonathan Bacon

This appears to be a scheme that retains Council control over the matter so we do not need to go with anything where the 50% would be any less than [we could obtain] from our own Officers so it seems, as the recommendation says it gives us an additional option to do something more creative than we could do within our organisation.

Cllr Stubbings

You've just used the word 'creative' which is pretty important here and it's very important that it is understood not merely as a proposal that brings forward a means by which we can dispose of our assets it is a proposal which brings forward options which are open to us in terms of the proper utilisation of our assets as Mr Metcalfe just mentioned there are certainly some assets which the Council currently holds which potentially are not being realised fully in terms of what they might generate for us and I had the privilege of meeting with one of the representatives of PSPF when they first came down with this proposal and I was convinced that the level of expertise that they have and the potential of bringing to the table in regard to this is quite considerable. I was also persuaded by the potential that they have for generating extra funding towards projects which the Council may wish to take part in. I was certainly persuaded by that, Chairman, and I would just like it to be mentioned very fully here in the chamber today so nobody gets the wrong end of the stick here we are not giving away the [?] or the option of being able to realise our assets fully in terms of disposal or in terms of utilisation we are entering into a partnership, a joint venture with a company which specialises in this area and by doing that we will make full use of our assets. Thank you chair.

Cllr Paul Fuller

I can only echo what's been said I think we have as a council to learn from mistakes made in the past and certainly selling off assets at below market value is a real concern to the wider community I think we need that assurance that we make the right decisions in the future and I welcome this opportunity to do so.

Cllr Dave Stewart

The comments under C – the Scrutiny views – it would be fair to say there was surprise in Scrutiny because they didn't quite understand what was happening here and had very little time to get into it. But as Stubbings has highlighted it does seem an opportunity and a very practical approach. There was a question about the

PSP Facilitating Limited - Accounts by david5174

period of the Partnership. Scrutiny's views have been well-addressed. I would expect a good monitoring process in place to see the benefits.

Vote: Unanimous yes.


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