Archived decisions

Hampshire County Council

Buildings, Land and Procurement Panel Item

14 July 2008

Review of Community Asset Transfers 2007- (The Quirk Review)

Report by the Acting Director of Property, Business and Regulatory Services

1

Introductory Summary

1.1

Following the report on the Strategy for the Built Environment to the Panel in April, it was agreed to bring back a subsequent report on the details and implications of the Government's review of community asset transfers. The Review of Community Asset Transfers was commissioned by Government in September 2006. This report explains the purpose behind the subsequent "Quirk Review" of 2007 and sets down the general conclusions reached. The Review has subsequently prompted the Government to confirm its support for enabling community empowerment through the transfer of community assets.

1.2

This report also outlines what the County Council has achieved in the past in terms of community asset transfers and in particular how it can continue to respond to the Quirk Report. It is proposed that appropriate opportunities to work in partnership with the third sector are explored so as to maximise community empowerment and the effective use of the County Council's assets.

1.3

The proposals contribute to the Corporate Strategy of maximising wellbeing through securing the transfer and use of appropriate buildings and assets for the benefit of the local community and achieving improvement or refurbishment of buildings in a sensitive way that contributes positively to the local environment.

2

Recommendation

That the Buildings, Land and Procurement Panel advises the Executive Member for Policy and Resources:

2.1

That the current and proposed future support to local communities in Hampshire through the effective use of property assets and property reviews be endorsed, and each proposal for a transfer of a community asset be reported to the Executive Member for Policy and Resources accordingly.

3

Background - The Quirk Review and Government Response

3.1

The Review of Community Asset Transfers was commissioned by the Government in September 2006. The review was led by Barry Quirk, Chief Executive Officer of Lewisham Borough Council, who was asked to consider the potential for transferring the ownership and management of public sector assets to the community, identify the barriers to such transfers and how they may be overcome, and consider how the risks of such arrangements might be managed. Barry Quirk's Review was published in May 2007.

3.2

The Review explored a number of case studies which were intended to demonstrate the merits of pursuing a policy of Community Asset Transfers. The firm conclusions of the Review report are that:

·

Assets are used in service of an array of social, community and public services. Any sale or transfer of public assets to community ownership and management needs to realise benefits without risking wider public interest concerns and without community purposes becoming overly burdened with asset management.

·

The benefits of community management and ownership of public assets can outweigh the risks and often the opportunity costs in appropriate circumstances. If there is a rational and thorough consideration of these risks and opportunity costs, there are no substantive impediments to the transfer of public assets to communities. It can be done, indeed it has been done legitimately and successfully in many places. Powers already exist for the transfer of such assets although they are not well known and little used.

·

There are risks but they can be appropriately minimised and managed - there is plenty of experience to draw on. This secret is all parties working together. This needs political will, managerial imagination and a more business focussed approach from the public and community sectors.

·

With Five key Actions recommended that could make a decisive difference:

- publication of up to date and authoritative guidance,

- publication of a toolkit on risk management in asset transfer,

- greater access to expert advice for authorities and the community,

- smarter investment of public funds for asset transfer,

- a major national publicity campaign,

3.3

The Government was swift to confirm its strong support for the findings of the Review, and issued a formal response entitled `Opening the Transfer Window' in May 2007. In summary, this agreed to implement the Quirk Review in full but not via more legislation but rather by cultural change. "We will seek to build momentum behind that cultural change by developing better guidance to help people understand and use existing powers better so they are not put off by the risks, but learn to manage them effectively. We will also develop appropriate mechanisms to strengthen the ability of communities to put pressure on local authorities who refuse to consider asset transfer to community organisations". Seven main actions are proposed by the Government:

a) Raise awareness of the Review findings and sharing ideas on how to apply them via a publicity campaign, which the Government has since done.

b) Demonstrate how asset transfer can be done.

c) Strengthening bottom-up pressure to encourage and empower communities.

d) Develop specialist advice and guidance.

e) Improve resources including making funds available to support the process, which the Government has done through the launch of the Community Assets Fund, managed by the Big Lottery Fund. However, so far the sums thus made available are modest. (£30m nationally in the first phase).

f) Promoting the benefits of asset transfer to communities.

g) Reviewing achievements and measuring success with the Local Government Association.

4

The County Council's current approach and examples

4.1

Whilst the County Council's overarching approach is to dispose of its surplus property at open market value in order to fund public service improvements, the County Council has, at the same time, always been keen to identify appropriate opportunities and pursue arrangements with third sector organisations where they are seen to benefit the community as a whole and thereby contribute to both the Corporate Strategy and its Priorities.

4.2

The County Council has always maintained a database of vacant buildings, and assets do not remain in the database for long without good reason. There is inevitably some turnover in occupation but, over the past 15 years, the number of properties vacant at any one time has averaged less than 1% of the building stock. A good example of the County Council's approach to community asset transfer with third sector partners has involved heritage properties. Some of these have required major investment in terms of maintenance or conversion and generally partner third sector organisations have access to funds that are not available to the County Council. It is in this area that there are major benefits to be gained through partnering arrangements in this area.

4.3

There are also many existing arrangements whereby community and voluntary organisations occupy County Council premises. Arrangements exist with various charities, pre-schools, scout and guide groups, parish councils and many other organisations, for the occupation of buildings on school sites and other County Council establishments. There are also currently eight community centres which are owned by the County Council and let to local community associations. On the whole, these arrangements work well and quality services are provided for the local community.

4.4

Finally, there are a number of current example projects which are expected to lead to a transfer of the County Council's asset to a third sector organisation in accordance with the Quirk philosophy and the Government's expectations. These are:

·

Treadgolds Museum, Portsmouth - a high quality collection of artefacts accommodated in a building requiring major improvement. A partnership has been formed with Learning Links, a Portsmouth based charity, to enable the building to be refurbished and brought back into beneficial use for educational and social enterprise purposes. The museum will be preserved and enhanced at the heart of the proposed scheme. This is precisely the type of project that the community assets fund has been designed to encourage, and Learning Links has been successful in receiving a substantial allocation of funds from the first phase. A legal agreement is in place with Learning Links and the project will proceed as soon as the organisation is successful in securing its planning permission and raising the remainder of the necessary funding.

·

Beaconsfield House, Winchester - a large Victorian building occupied primarily by Community Action Hampshire (CAH). There is a service level agreement in place with CAH, which attracts significant funding annually from the County Council. Discussions are being held with CAH aimed at a potential transfer of the freehold to the organisation on terms which are beneficial to both parties. It is expected that the proposed transfer will be reported to the Executive Member for Policy and Resources on 23 July 2008

·

Tor Way, Petersfield - a triangular shaped, heavily wooded area of land, that is being made available to the Festival for Young People, a non-profit making organisation that is in the process of becoming a registered charity. It is proposed to grant a 99-year lease at a peppercorn rent for the provision of a youth centre/community asset. Approval in principle was given by the Executive Member for Policy and Resources on 9 April 2008.

5.0

Implications for the County Council and the Way Forward

5.1

The County Council should welcome the findings of the Quirk Review. It should also continue to work with third sector partners to achieve the overall main aspirations that the Quirk Review report has set out, and as strongly endorsed by the Government. This involves building on the success of previous and current projects. The County Council's overall approach is certainly in line with the broad objectives of the Quirk Review and the Government's objectives. However, it could be viewed that at present it is undertaken in more of a reactive manner when opportunities arise and third sector parties express an interest or a requirement.

5.2

In many instances, the County Council is reacting to an initiative from the local community. When such requests are received, the merits of the proposal are fully assessed, including the potential benefits to the community, along with the prospects of it being delivered and any other intentions or alternatives that the County Council may have for the property. If the assessment supports the proposal, then the matter would be reported to the Executive Member for Policy and Resources in the usual way. The Quirk Review and Government's approach may ultimately seek more of a proactive approach from local authorities.

5.3

Success can be achieved in a variety of ways, as recognised by Quirk and the Government and does not necessarily mean the transfer of an asset without consideration. The arrangements could involve either a freehold transfer or the grant of a lesser interest such as a tenancy. The arrangements can be of value, involve discounted price or rent, or involve no payment. The circumstances of each project will determine the best approach and it should be recognised that there are many community based organisations which simply do not have the desire or ability to take full responsibility for an asset that freehold ownership brings. Such organisations prefer to focus on the delivery of quality services which is, after all, the reason they exist.

5.4

There may be occasions when the County Council's assessment concludes that the proposal should not be supported. The proposal may for example be inappropriate, not properly thought out, unsustainable, or not capable of being funded. If the County Council decides not to support the project then the third sector group may elect to challenge the decision. It could do this using the little known or used Public Request to Order Disposal (PROD) power whereby the Secretary of State is asked to order an asset transfer. The Government intends to raise awareness of this provision and supplement it through the Community Call for Action initiative which is currently being promoted.

5.5

It is possible that these provisions could, on occasion, place the County Council in a difficult position, although it is considered that this will rarely occur. As stated earlier, the County Council's approach to estate management means that it does not have large numbers of buildings remaining vacant. New vacancies are often associated with reinvestment projects whereby a redundant building is sold to fund service improvements and in such cases there is likely to be early approval in place for the project as a whole, often including central Government endorsement.

5.6

Using service and property reviews it is equally likely that the County Council will initiate a proposal itself and it is considered to be important that the County Council takes a lead in this respect. The aspirations of the Quirk Review will therefore be taken into account in future service and property reviews where this is appropriate. It is believed that this might identify some opportunities which can be explored.

6

Consultation with local Member

6.1

As the report deals with policy issues affecting the whole of Hampshire, no consultation has taken place.

7

Conclusion

7.1

The spirit of the Quirk Review and the Government's response should be welcomed it is considered that there is major potential for enabling community empowerment through Community Asset Transfers. The County Council has a good track record in this respect and continues to deliver through current projects.

7.2

Further opportunities should continue to be sought, for example through service and property reviews. In addition, where requests are received from third sector organisations, these will be assessed as outlined above and reported to the Executive Member for Policy and Resources in the usual way.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

Maximising well-being

_

Enhancing our quality of place