Appendix 10

Discussion meetings - 15 January 2007 - Summary of the main issues raised

1. Meeting with trades unions representatives (1130hrs - 1215hrs)

Present:

Cllr Cartwright - Chairman of Hampshire Fire and Rescue Authority

Cllr Heath - Vice Chairman of Hampshire Fire and Rescue Authority

Cllr Smith - Vice Chairman of Hampshire Fire and Rescue Authority

Cllr Price - Spokesperson for Liberal Democrat Group

Andy Needham - Secretary, Hampshire Retained Firefighters Union (HRFU)

David Howells - Director of Corporate Services

Ejner Knudson - Assistant Treasurer

Wendy Lambert - Head of Financial and Office Services

Bob Ratcliffe - Head of Training

It will be noted that only one representative (from HFRU) was able to attend the meeting.

A short presentation was given by David Howells and Ejner Knudsen which was based on the report on the Draft Budget 2007/08 that was due to be presented to the Finance and General Purposes Committee on 18 January 2007. Questions were taken during and after the presentation.

Andy Needham was particularly pleased to note that some provision had been made in the draft budget to cover the employer costs associated with extending the firefighters' pension scheme to retained firefighters from 1 April 2007. Also, it was explained that the additional pressure on the retained pay budget arising from the operation of the co-responder schemes was being closely monitored and that if the Ambulance Service's three-year `stretch target' for improving emergency response times to patients can be achieved, then some reward grant from the Hampshire Local Service Partnership was anticipated.

The HRFU had been successful in previous years in lobbying for increases in budgets for building maintenance and improvement and it was noted that the draft budget now included a regular £200,000 per annum in the capital programme to fund some of the larger schemes of work. This is an increase on the £50,000 previously allocated.

Overall, there was general satisfaction with the draft budget proposals.

2. Meeting with representatives from the business, residents and taxpayers communities (1215hrs - 1345hrs)

Present:

Cllr Cartwright - Chairman of Hampshire Fire and Rescue Authority

Cllr Heath - Vice Chairman of Hampshire Fire and Rescue Authority

Cllr Smith - Vice Chairman of Hampshire Fire and Rescue Authority

Cllr Price - Spokesperson for Liberal Democrat Group

Ted O'Toole (Chairman) - Hampshire Federation of Residents Associations

Colin Richards (Vice Chair) - North East Hayling Island

Terry Tingey (Vice Chair) - Fleet and Church Crookham

Keith Chessell - Warblington & Denvilles

Ken Gilchrist - Emsworth

David Webb - West Bedhampton

Carole Harrison - Communications Services Manager, Hampshire Deaf Association

Mike Schofield - `SHOUT' (South Hants Opposes Unfair Taxes) - An `IsItFair' Council Tax protest group

Don Carter - Federation of Small Businesses

John Bonney - Chief Officer

Dave Curry - Deputy Chief Officer

David Howells - Director of Corporate Services

Ejner Knudson - Assistant Treasurer

Wendy Lambert - Head of Financial and Office Services

Bob Ratcliffe - Head of Training

Mark Rayner - Community Fire Safety and Operations (Support)

A short presentation was given by David Howells and Ejner Knudsen which was based on the report on the Draft Budget 2007/08 that was due to be presented to the Finance and General Purposes Committee on 18 January 2007. Questions were taken during and after the presentation.

Most discussion centred on the potential risks associated with maintaining the Authority's preference to keep increases in council tax at or below the increase in state pensions - averaged over a three year period. It was explained that the draft budget contained a number of assumptions about the impact of future financial pressures - several of which were outside of the Authority's direct control - including, for example, the provisions for pay and price inflation. In order to keep the potential council tax increases below 5% (the Government's likely capping limit) only relatively modest provisions (2.3% and 2.5% respectively) had been assumed.

In accordance with the Authority's recommendation (made at its December 2006 meeting) three options for council tax increases were put forward for consideration by the representatives:

Budget Council Tax

£m % per year per week % increase

A 62.1 4.2 £55.53 £1.06 3.6

B 62.4 4.7 £56.07 £1.07 4.5

C 62.5 4.9 £56.25 £1.08 4.9

Although initially representatives were understandably disappointed that increases of up to 4.9% were being contemplated there was general recognition that in the context of overall council tax charges, even a 4.9% increase would result in a only a relatively modest cash increase over the current year (£2.61 per year or about 5p per week).

It was noted that the Authority had previously achieved the lowest (1.6% in 2005/06) and second lowest (2.9% in 2006/07) increases in council tax of all combined fire and rescue authorities. Representatives appreciated the fact that such low increases in previous years (particularly in 2005/06) meant that the scope to maintain three-year rolling average increases at or below average increases in state pensions would become increasingly difficult to maintain without possible reductions in service delivery.

It was explained that an increase of 3.6% would require considerable savings to be found during 2007/08 whereas an increase of 4.9% would mitigate the financial risk of possible under-provision in the budget (e.g. or pay and price inflation).

The consensus that seemed to emerge was that an increase of 4.5% would be reasonable in the circumstances.

Representatives expressed their thanks for the open and transparent way Members and officers presented the budget proposals and took the opportunity to ask a number of questions about various aspects of the way services are delivered.