Agenda item - Royal Pavilion & Museums Service Options

Report of the Executive Director Economy, Environment & Culture (copy attached)

RESOLVED: That the Committee –

(i)            Noted the contents of the Options Phase One Report prepared by the independent expert attached as Appendix One to this report;

(ii)          Approved the steps required to improve and modernise the service and the associated timescale as set out in Appendix Two (Service Improvement Plan);

(iii)         Agreed that, following a period of service improvement, the Royal Pavilion and Museums service should be transferred to a charitable trust whose sole purpose is to deliver the council’s museums and heritage services;

(iv)         Agreed the timetable set out at 4.20 below and notes that this timetable will allow the single purpose charitable trust to apply for funding in the next Arts Council England funding application round (covering 2022+);

(v)          Delegated authority to the Executive Director, Economy Environment & Culture to enter into negotiations with the Royal Pavilion & Museums Foundation to resolve matters outlined in 4.23 below;

(vi)         Delegated authority to the Executive Director, Economy Environment & Culture, to determine when the due diligence carried out during the initiation phase has been successfully concluded and the issues set out in 4.11 have been satisfactorily resolved such that the council should move to the Implementation Phase;

(vii)        Delegated authority to the Executive Director, Economy Environment & Culture in liaison with the Executive Lead Officer for Strategy, Governance and Law to take all necessary steps to implement the recommendation at 2.1.3, reserving those decisions relating to the governance of the charity for a future decision at the Tourism, Development & Culture Committee and the Policy, Resources & Growth Committee referred to in 2.1.8 below;

(viii)      Noted that during the Implementation Phase, a further report will be presented to the Tourism, Development & Culture Committee and the Policy Resources & Growth Committee to update on progress, seek approval to establish the charitable entity and seek delegated authority to conclude the legal arrangements between the council and such related parties.

66.1    The Committee considered the report of the Executive Director Economy, Environment & Culture which recommended moving the Royal Pavilion & Museums to a single purpose trust.

66.2    The Chair noted that an amendment to the recommendations had been submitted by the Conservative Group, and asked Councillor Janio to propose the amendment.

66.3    Councillor Janio proposed the following amendment:

                        2.1 That Policy, Resources & Growth Committee:-

2.1.1 notes the contents of the Options Phase One Report prepared by the independent expert attached as Appendix One to this report;

2.1.2. approves the steps required to improve and modernise the service and the associated timescale as set out in Appendix Two (Service Improvement Plan); Agrees to present for consideration at the next Tourism, Development and Culture Committee a timetable of moving the Royal Pavilion & Museums (RPM) Service following a ballot of all staff with the option to

a)    move to a ‘Shadow Trust’ in April 2019, enabling the necessary arrangements to be made to move to a ‘Full Trust’ in 2020; or

b)    revert to the timetable outlined in Appendix Two (Service Improvement Plan).

2.1.3. agrees that, following a period of service improvement, the Royal Pavilion and Museums service should be transferred to a charitable trust whose sole purpose is to deliver the council’s museums and heritage services;

2.1.4.agrees the timetable and notes that this timetable will allow the single purpose charitable trust to apply for funding in the next Arts Council England funding application round (covering 2022+) ;

2.1.53. delegates authority to the Executive Director, Economy Environment & Culture to enter into negotiations with the Royal Pavilion & Museums Foundation to resolve matters outlined in 4.23 below;

2.1.6 delegates authority to the Executive Director, Economy Environment & Culture, to determine when the due diligence carried out during the initiation phase has been successfully concluded and the issues set out in 4.11 have been satisfactorily resolved such that the council should move to the Implementation Phase;

2.1.7. delegates authority to the Executive Director, Economy Environment & Culture in liaison with the Executive Lead Officer for Strategy, Governance and Law to take all necessary steps to implement the recommendation at 2.1.3,reserving those decisions relating to the governance of the charity for a future decision at the Tourism, Development & Culture Committee and the Policy, Resources & Growth Committee referred to in 2.1.8 below;

2.1.8. notes that during the Implementation Phase, a further report will be presented to the Tourism, Development & Culture Committee and the Policy Resources & Growth Committee to update on progress, seek approval to establish the charitable entity and seek delegated authority to conclude the legal arrangements between the council and such related parties.

            Councillor Janio said that the amendment was being proposed as the Group felt that there was a strong future for the Royal Pavilion and Museums, and moving to a trust earlier would remove uncertainty for the staff. The consultant’s report was very good and did detail the risks of moving to a trust early, but there was little information on the risks of not moving early, such as not being able to receive Gift Aid, Arts Council funding or other funding which may be available. There was concern that the consultant had little faith in the workforce being able to take this forward earlier, but the it was thought that the staff would prefer to move the matter forward and if the staff were balloted it would take the uncertainty away. The unions have agreed to move to a single trust. The Royal Pavilion and Museums would not have to suffer, and moving to a shadow trust in April 2019 would take away any doubt for staff on their jobs.

66.4    Councillor Bell seconded the amendment.

66.5    The Executive Director Economy, Environment & Culture said everyone wanted the service to flourish, and setting up a new trust would take time and it was important that it was done correctly. The transfer to a charity would need a new board of trustees to be appointed, and the trustees would need to be content with the service, and there were some improvements which needed to be made such as setting a budget baseline, improvements to cash handling etc. The Arts Council had identified some gaps in the current leadership structure which needed to be addressed. It was important that the Trust was set up correctly, and if it could be undertaken quicker it would.

66.6    Councillor Daniel asked for clarification on two points. Firstly there was a rumour that the Arts Council wanted a move to a trust in April, and secondly was there a mechanism for balloting staff.  The Executive Director Economy, Environment & Culture said the Arts Council were concerned that there wasn’t a delay in establishing the governance arrangements, but at the same time they wanted the Council to set the trust up correctly. The Monitoring Officer said that there was a mechanism under the Trade Union and Labour Relations Act to ballot staff, but the ballot suggested in the amendment would be an informal way of establishing the view of staff and would not be binding. He added that the amendment was asking that the matter be referred to the Tourism Development & Culture Committee, but as the decision would have corporate policy and corporate budget implications it would not be able to make a decision and so would need to come back to this committee.

66.7    Councillor Sykes said whilst he understood the Conservative Groups frustration in the delay, he was concerned that the ballot may cause more confusion, and as acceleration was built into the recommendations he could not support the amendment.

66.8    Councillor Bell thanked unions for conducting a ballot of their members and for supporting the move to a single trust. The amendment proposed was for all staff, as those who were not in a union had not had an opportunity to express their views. This was a big decision to make, and it was important to trust the staff.

66.9    The Chair said the report allowed the process to be accelerated, but it was important to ensure that everyone was ready. If the matter was considered by the Tourism Development & Culture Committee it would still need to come back to this committee.

66.10  Councillor Janio said that the process could take up to three years. The amendment would allow the workforce to have a say.

66.11  The Committee voted on the amendment, and it was not agreed.

66.12  RESOLVED: That the Committee –

(i)            Noted the contents of the Options Phase One Report prepared by the independent expert attached as Appendix One to this report;

(ii)          Approved the steps required to improve and modernise the service and the associated timescale as set out in Appendix Two (Service Improvement Plan);

(iii)         Agreed that, following a period of service improvement, the Royal Pavilion and Museums service should be transferred to a charitable trust whose sole purpose is to deliver the council’s museums and heritage services;

(iv)         Agreed the timetable set out at 4.20 below and notes that this timetable will allow the single purpose charitable trust to apply for funding in the next Arts Council England funding application round (covering 2022+);

(v)          Delegated authority to the Executive Director, Economy Environment & Culture to enter into negotiations with the Royal Pavilion & Museums Foundation to resolve matters outlined in 4.23 below;

(vi)         Delegated authority to the Executive Director, Economy Environment & Culture, to determine when the due diligence carried out during the initiation phase has been successfully concluded and the issues set out in 4.11 have been satisfactorily resolved such that the council should move to the Implementation Phase;

(vii)        Delegated authority to the Executive Director, Economy Environment & Culture in liaison with the Executive Lead Officer for Strategy, Governance and Law to take all necessary steps to implement the recommendation at 2.1.3, reserving those decisions relating to the governance of the charity for a future decision at the Tourism, Development & Culture Committee and the Policy, Resources & Growth Committee referred to in 2.1.8 below;

(viii)      Noted that during the Implementation Phase, a further report will be presented to the Tourism, Development & Culture Committee and the Policy Resources & Growth Committee to update on progress, seek approval to establish the charitable entity and seek delegated authority to conclude the legal arrangements between the council and such related parties.