The Head of Legal and Regulatory Services submitted a report, in order to update Members on the UK Steel Charter, Code of Practice – Ethical Employment in the Supply Chain, Welsh Government’s Foundation Economy model – Better Jobs Closer to Home, the South East Wales Delivery Group and the Welsh Government Project Bank Account Policy and seek to:-

·       Sign the UK Steel Charter with a view of working towards achievable commitments within the Charter if reasonable to do so.

·       Sign the Code of Practice – Ethical Employment in the Supply Chain with a view of working towards achievable commitments within the Code if reasonable to do so.

·       Work with Welsh Government to work towards the principles of the Foundation Economy Model – Better Jobs Closer to Home – Local Wealth Building when procuring goods, works and services.

·       Agree for the council to participate in the South East Wales Delivery Group for common and repetitive collaborative Framework Agreements, if they provide value for money for the council.

·       Adopt the principles within the Welsh Government Policy on Project Bank Accounts and apply payment through project bank accounts on contracts where their application is deemed appropriate and reasonable to do so.

The report outlined some background information in respect of the UK Steel Charter, Code of Practice – Ethical Employment in the Supply Chain, Foundation Economy Model – Better Jobs Closer to Home – Local Wealth Building, the South East Wales Delivery Group and the Welsh Government Project Bank Account Policy.

In terms of the South East Wales Delivery Group, the report expressed at paragraph 3.4.4, that for delivery of collaborative contracts by Local Government post 2020, there is a clear preference to establish regional delivery arrangements, for the 3 reasons given in bullet point format in this section of the report.

The Head of Legal and Regulatory Services then expanded upon the current situation of the report, giving reasons why the Council needed to consider adhering to/signing up to the proposals detailed in the bullet points above.

She then explained in terms of Section 5. of the report, that the Council’s Contract Procedure Rules will require updating, in order to comply with the commitments of the UK Steel Charter, the Code of Practice – Ethical Employment in the Supply Chain and to reference the relevant requirements of the Welsh Government Project Bank Accounts Policy.

With regards to the financial implications of the report, the Head of Legal and Regulatory Services explained that these would be minimal at present, however, there was potential for a cost implication for the Council going forward. If these materialise, then they would be outlined in a future report to Cabinet she added.

The Leader advised that a considerable amount of work had gone into the report before Members, which had been the subject of consideration by Scrutiny as well as the subject of discussions with Welsh Government officials. The proposals of the report, if implemented, would help support the local economy including through local businesses. They had also been tried and trusted and proved successful in other areas, he added.

The Deputy Leader concluded debate on this item, by advising that the Council procured goods and services to the value of £160m and this had a major impact on not just local but the wider economy and the recommendations of the report, which he supported, would maximise that even further.

RESOLVED:                         That Cabinet :-

•            Signed up to the UK Steel Charter with a view of working towards committing to the steps that are considered to be achievable and  reasonable to do so

•            Signed up initially to the Code of Practice – Ethical                         Employment in the Supply Chain with a view of working towards achieving the commitments within the Code in the future if considered reasonable to do so.

•            Agreed with working towards the Foundation Economy model.

•            Agreed for Bridgend to participate in the South East Wales Delivery Group.

•            Adopted the principles contained within the Welsh Government Policy on Project Bank Accounts and apply payment through a PBA on contracts where their application is deemed appropriate and reasonable to do so.