Agenda and minutes

To approve as a correct record the Minutes of the meeting held on 6th February 2018.

The Minutes of the meeting held on 6th February 2018 were approved as a correct record and signed by the Chairman.

To receive from Members declarations as to disclosable pecuniary and other interests in relation to any Agenda item.

No declarations of interest were received.

A copy of the current Notice of Key Executive Decisions is attached. Members are invited to note the Plan and to comment as appropriate on any items contained therein.

The Panel received and noted the current Notice of Key Executive Decisions (a copy of which is appended in the Minute Book) which has been prepared by the Executive Leader for the period 1st March 2018 to 30th June 2018.

(At 7.05pm, during the consideration of this item, Councillor P Kadewere entered the meeting.)

Mr Nigel Finney and Mr Mike Forrest will be in attendance to update the Panel on the developments at the Luminus Group and the merger.

Luminus Group’s Managing Director, Mr Nigel Finney and Board Chairman, Mr Mike Forrest, were in attendance to update the Panel on the developments at Luminus and the merger.

Members were informed that since Luminus received the regulatory judgement, it decided that the best way to proceed was to merge.  Initially ten housing associations expressed interest, with three being shortlisted. Luminus then selected a preferred partner, which was Places For People (PFP). The main reason for selecting PFP, was that Luminus will maintain a local presence and its own identity. In addition, PFP produced the most financially compelling reasons for merger and they aim to develop 1000 homes in the next five years.

Luminus Staff have met with their counterparts in PFP and a stakeholder consultation regarding the merger has been undertaken. The process to merge started at the end of September and is likely to be completed by the end of March 2018.

The Panel was informed that once the heads of terms had been agreed a due diligence process was undertaken. This process was completed in February 2018 and PFP found no major issues.

Members were informed that all of Luminus’ creditors have agreed in principle to the merger. In addition, PFP has agreed to Luminus’ business plan and the 30 year business plan. On the day of the merger Luminus’ Board resigns and the new board takes its place. The Board will comprise of nine people, the Council will lose their seat on the Board however Cllr Mrs R E Mathews will join the Board as an independent member.

Other developments include: Luminus are working on solving the compliance issues as highlighted by the Regulatory Judgement and the Regulatory Notice; Luminus have applied to become a Community Benefit Society, which is a charitable status with the benefit of not having to pay corporation tax; as a result of gaining charitable status Luminus will have additional funds to increase the maintenance budget to £10.2m per year and Luminus have also introduced a new work place culture.

Members were informed that when Luminus applies to become a community benefit society, the Oak Foundation will cease to exist and the assets will transfer to Luminus. In response to a question regarding the registered charity status, the Panel was informed that the status will bring financial benefits but in practical terms it will make no difference. Attaining registered charity status is not a condition of the merger but PFP does support it.

The Panel was informed that Luminus have already benefited from the PFP Group (which includes 20 subsidiaries) including Derwent Living’s engagement with residents, which Luminus would like to learn from and the economies of scale.

In response to the question about the location of PFP subsidiaries, the Panel was informed that PFP have subsidiaries all over the country. PFP have an ambitious development plan to develop homes. Luminus is not currently developing homes however with the merger it is hoped that Luminus will develop homes in  ...  view the full minutes text for item 75.

Members are to receive the work programmes for all Overview and Scrutiny Panels.

With the aid of a report by the Democratic Services Officer (Scrutiny) (a copy of which is appended in the Minute Book), the Panel reviewed all Panels’ work programmes.

The Panel agreed to revisit the issue of Air Quality in Huntingdonshire and in particular what the Council are doing in relation to its buildings and vehicles.

Members agreed that the Overview and Scrutiny Panel (Communities and Environment) meeting in April 2018 is cancelled.