The report provides limited information on the results of services traded under the “Work With York” brand, which include the supply of casual/interim staff, and supply teachers.

The report claims that a profit of “almost £300,000” was made in 2014/15, although how much of this was made through “internal trading” (“selling” services back to the York Council), is not revealed.

Much of the work is understood to be undertaken by a pool of former Council employees who otherwise would be redundant (e.g. saving on the costs of using Agency staff to fill temporary vacancies) .

The company is wholly owned by the York Council. It is currently governed by four Executive Directors. All are senior Council officials. A non Executive Director was also appointed (a Labour Councillor).

There is now a move to appoint “external” Directors. Such appointments are likely to be made  “behind closed doors”  by a four person “Shareholders committee” which is comprised of Councillors.

This committee will also review the companies business plan – a role currently undertaken by the Council itself. It is not obliged to meet in public or publish the agenda for its meetings. The proposed  “Shareholder Agreement” is entirely silent on the issue of transparency and accountability. 

The company is able to borrow money to fund its expansion plans but it is unclear where liability would rest in the event of a financial failure.

The Executive is being asked to remove “the requirement for formal consent from the Council for a number of specific matters including: incurring material expenditure or capital liabilities exceeding £10,000, sponsoring events or supporting charitable activities, paying certain remuneration, settling claims and approving the charging policy”. 

In a media release the Council says,

(more…)