Archived decisions

AT A MEETING of the EMPLOYMENT IN HAMPSHIRE COUNTY COUNCIL COMMITTEE held at The Castle, Winchester on 3 November 2009.

PRESENT:

Chairman:

p Councillor T. K. Thornber, CBE

Councillors:

11. APOLOGIES FOR ABSENCE

Apologies were received from Councillors B.D. Dash and K. House.

12. DECLARATIONS OF INTEREST

Members were mindful that where they believed they had a personal or prejudicial interest in any matter considered at the meeting declared that interest at the time of the relevant debate and, having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the County Council's Code of Conduct, considered whether to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with paragraph 12 of the code.

13. MINUTES

The Minutes of the meeting held on 22 July 2009 were confirmed as a correct record and signed by the Chairman.

Matters arising:

Minute 6 b): changes regarding childcare vouchers. The Committee requested if any more information was available. The Director of Human Resources reported that there was nothing further to report at this time. The Director also reported that since the Committee's consideration of the report on Childcare Vouchers, the Government had recently announced its intention to withdraw the scheme.

14. CHAIRMAN'S ANNOUNCEMENTS

There were no announcements on this occasion.

15. BRUSSELS OFFICE SALARIES

The Committee considered the report of the Director of Human Resources and County Treasurer (Item 5 in the Minute Book) detailing the outcome of further investigations in respect of paying the Brussels' office staff in Euros.

The Committee had considered an initial report at its meeting on 22 July and requested some comparative salary information together with some further payment options. Accordingly the Director of Human Resources expanded on the investigations undertaken, the outcomes of which are detailed in paragraphs 3 and 4 of the report. The Director also confirmed that a benchmarking exercise had been carried out with Kent County Council, the East of England Regional Assembly (EERA) and the Civil Service, the outcomes of which are detailed in paragraphs 5.1 to 5.3 of the report.

The Committee recognised the many complexities involved in paying salaries in Euros, particularly in regard to payroll arrangements, tax and National Insurance implications and the associated costs of moving to this arrangement, together with the benefits/disadvantages to the staff concerned. They also took account of the staff issue which was to mitigate fluctuations in the Euro/Sterling exchange rate as detailed in paragraphs 6.1 and 6.2 of the report.

In considering the options in detail, the Committee approved the approach set out in the report and agreed some clarification to the second recommendation that any additional payments would have a 5% tolerance above and below the salary based on a particular currency rate at a particular date before adjustments were made as detailed in paragraph 6.3 of the report. The Committee also noted a request by Southern England Local Partners (SELP) to be consulted on the Committee's decision.

RESOLVED:

(a) that the salary and additional payments continue to be paid to staff in sterling


(b) to continue use of adjustments to mitigate any fluctuations in the Euro/Sterling exchange rate, against both the salary and overseas allowance on the basis of a 5% tolerance above and below that rate, being applied. Any additional payments would be made on a recurring basis each month, rather than a one off payment


(c) that where the exchange rate becomes favourable for the employee, a deduction from the overseas allowance would be applied


(d) that during periods of rapid currency fluctuations the review will be carried out on a more frequent basis


(e) that Hampshire County Council reserves the right to review and amend the approach and process for managing the impact of currency fluctuations as appropriate.

16. REDUCTION IN BUSINESS MILEAGE RATES

Councillors Dr. R.J. Ellis and Felicity Hindson declared a personal interest as a member of the County Council's Efficiency Panel.

The Committee considered the report of the Director of Human Resources (Item 6 in the Minute book) setting out proposals to align the rates paid for business mileage to the HM Revenue and Customs (HMRC) rates in the context of the Efficiency Board's work to identify cost efficiencies in the County Council. The Director of Human Resources expanded on the key points contained in the report and the County Treasurer, at the Committee's request, detailed the background to the formula currently in use and its application.

During the course of detailed discussion, the Committee expressed the view that whilst it was appropriate that staff were reimbursed for the actual expense(s) incurred in carrying out County Council business, this should not be at a level that exceeds the HMRC recommended rate which gives rise to employee `benefit' and as such is taxable.

After much discussion about whether to retain a bicycle mileage rate, it was noted that a further report will be submitted to the next meeting to include information on the incidence of business mileage undertaken by cyclists.

In conclusion of a full discussion, the Committee were of the view that in support of the efficiency agenda it is appropriate that the County Council align mileage rates to the corresponding HMRC rates (as detailed in paragraph 31. of the report), with the exception of the bicycle rate whilst further information is gathered. The Committee were also mindful to recommend the same aligned rates for Members claiming travelling expenses whilst carrying out County Council business, which will be considered in due course by the Independent Remuneration Panel as part of the overall Members Allowances Scheme for 2010/11.

RESOLVED:

(a) approve in principle, the proposed changes to the mileage rates for business miles at outlined in the supporting report, recognising that consultations need to take place with the trade unions.


(b) that a report detailing progress of consultation with the trade unions be submitted to the next meeting of the Committee together with the further information requested about the use of bicycles in carrying out County Council business


(c) approve in principle an implementation of such changes in the new financial year.

17. EXCLUSION OF THE PRESS AND PUBLIC

RESOLVED:

That the press and public be excluded from the meeting as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present there would be disclosure to them of exempt information within Paragraph 5 of Part I of Schedule 12A to the Local Government Act 1972, being personal information or information relating to the County Council's business or financial affairs which should not be disclosed for the reasons set out in the report.

At this point in the proceedings the Chairman requested that the confidential report (Item 8 on the agenda) be handed in at the conclusion of the meeting and it was noted all Members and officers present did so.

18. UPDATE ON EQUAL PAY LITIGATION

The Committee considered [and approved] the exempt report of the Director of Human Resources (Item 8 in the Minute Book) on Equal Pay Litigation (DETAIL IN EXEMPT MINUTE).

RESOLVED:

(a) approved the continuing strategy for dealing with claims, as currently being adopted


(b) approved a recommended strategy for potential settlement of claims