Agenda and minutes
Investment and Performance Board
Tuesday 19 January 2016 4.00 pm

Venue: Committee Room 1, City Hall, The Queen's Walk, London, SE1 2AA. View directions

Contact: Ed Williams, Board Secretary, Email: [email protected]; Email: [email protected] 

Items
No. Item

1.

Apologies for Absence

Minutes:

1.1  There were no apologies for absence.

2.

Declarations of Interest

The Chair to invite officers to declare any interests which they may have in any of the items set out on the agenda.

 

[Note: In accordance with the GLA’s Code of Ethics for staff, officers must make a declaration of interest on any issue on which they are advising the Mayor which affects an interest held by them - or any person related to them or with whom they have a close personal relationship, whether financial or otherwise - and ensure that the details are recorded in the Authority’s Register of Interests.]

Minutes:

2.1  Matthew Pencharz declared a non-pecuniary interest in Item 9 (London Green Fund I and II: GLA Holdings Ltd) as a member of the Investment Board of the London Green Fund.

 

2.2  There were no other declarations of interests.

3.

Minutes of Meeting held on 10 December 2015 pdf icon PDF 176 KB

Additional documents:

Minutes:

3.1  DECISION:

 

  That the minutes of the meeting held on 10 December 2015 be agreed.

4.

Actions Arising from Previous IPB Meetings pdf icon PDF 47 KB

Minutes:

4.1  DECISION:

 

  That the report on actions arising from previous meetings be noted. 

5.

HIG Decisions in Principle - Meetings held on 9 December 2015 and 13 January 2016 (Oral Update) (Part Reserved) pdf icon PDF 157 KB

Minutes:

5.1  The Board received the minutes of the Housing Investment Group (HIG) held on 9 December 2015. The Executive Director for Housing and Land provided an update on the 13 January 2016 meeting, including the proposed development at Beam Park. The scheme would deliver 3,000 new homes as well as a new station. 

 

5.2  DECISION:

 

  That the minutes of the Housing Investment Group meeting held on 9 December 2015 and the oral update be noted.

6.

Further Education Capital Investment Fund, Round 1: Richmond upon Thames College Application (Part Reserved) pdf icon PDF 62 KB

Minutes:

6.1  The Board received the report which requested an increase in grant funding of £2,536,800 for Richmond upon Thames College, to be funded from within the Round 1 budget.

 

6.2  The Assistant Director for Regeneration noted that the Further Education Commissioner had recommended that the Richmond upon Thames College application proceed, and that there was strong support from the London Borough of Richmond upon Thames. The Chair also commended the work of the College which had good connections to business and saw pupils finding employment at the end of their studies.

 

6.3  DECISION:

 

  That the allocation of £2,536,800 for the Richmond upon Thames College Round 1 application to increase preliminary allowances and for VAT as recommended by specialist technical advice and the consequent formation of a funding agreement be endorsed.

 

[The Head of Paid Service joined the meeting at this point.]

7.

GLA Group European Social Fund 2014-20 Programme Update (Part Reserved) pdf icon PDF 148 KB

Minutes:

7.1  The Board received the report which provided an update on the progress of the GLA’s applications for European Social Fund (ESF) funding from the European Social and Investment Fund (ESIF) 2014-20 programme.

 

7.2  The Senior Programme Manager explained that the request for the GLA to apply for Co-Financing Organisation (CFO) status would give the GLA greater flexibility in delivering the ESF 2014-20 programme. If CFO status was not agreed, the GLA would continue to deliver the programme as previously planned.

 

7.3  The Board discussed the timing of the proposed application as well as the potential risks arising from the named delivery partners. The Senior Programme Manager confirmed that this had been considered and would discussed further with relevant parties, however, there was no requirement for named delivery partners to put forward funding at this stage. Written confirmation of committed funds would be required before going out to tender on any of the proposed projects.

 

7.4  The Board was advised of the options for covering the administration costs of the programme. It was noted that a central administration charge to cover these costs was the preferred approach. 

 

7.5  DECISIONS:

 

  That:

 

a)  The progress made with the GLA Regeneration Team’s applications  ...  view the full minutes text for item 7.

8.

Update on Construction Skills in London pdf icon PDF 344 KB

Additional documents:

Minutes:

8.1  The Board received an update on construction skills in London. The Board discussed a range of issues affecting training within the construction sector, including:

·  the role of traineeships rather than apprenticeships and the need to make the industry more attractive to young people;

·  the need to engage sub-contractors as well as large developers to promote training;

·  the importance of engaging small and medium size industries;

·  the impact of foreign labour and the requirement for flexibility within the sector;

·  the extent to which jobs in the sector went unreported, making it harder to assess skills shortages;

·  the impact of the Apprenticeships Levy; and

·  the role of local authorities to support local labour schemes.

 

8.2  The Board agreed that in view of the discussion, the Assistant Director of Economic and Business Policy should identify the viable next steps from the options set out at paragraph 5.2 of the report which could be developed further outside of the meeting.

 

8.3  The Assistant Director for Regeneration noted, that at its November meeting, the Board had agreed to extend the Employer-Led Apprenticeships Creation programme, subject to the progress update being provided. It was agreed that the extension to the programme go ahead as agreed,  ...  view the full minutes text for item 8.

9.

Creative Industries, Culture Strategy and Busk in London (Part Reserved) pdf icon PDF 174 KB

Additional documents:

Minutes:

9.1  The Board received the report setting out the request for £2,447,000 for 2016/17 for the continuance of the Mayor’s Creative Industries Investment Programme, Culture Strategy and Busk in London.

 

9.2  An update report was tabled at the meeting, which sought an additional one year’s investment of £250,000 to continue Film London’s work in high-end television and animation. The update is attached to the minutes at Appendix 1. The additional funding would extend the programme for a year, at which time the next Mayor could take a decision on future funding in this sector.

 

9.3  DECISIONS:

 

  That the following be approved:

 

a)  The request to seek the Mayor’s approval of the proposed continuance of the Mayor’s Creative Industries Investment Programme (Film, Design, Fashion), Culture Strategy and Busk in London investment and associated activity and expenditure and income; and

 

b)  The additional one year’s investment of £250,000 to continue Film London’s work in high-end television and animation, as set out in the update report attached at Appendix 1 to the minutes.

10.

London Green Fund I and II: GLA Holdings Ltd pdf icon PDF 117 KB

Additional documents:

Minutes:

  [Note: Matthew Pencharz declared an interest in this item. See also Minute 2 – Declarations of Interest.]

 

10.1  The Board received the report which provided an overview of London Green Fund I and proposals for London Green Fund II.

 

10.2  DECISIONS:

 

  That the following be approved in principle, subject to satisfactory finance and legal advice/due diligence before any formal approval is sought:

 

a)  Greater London Authority Holdings Limited or its existing subsidiary GLA Land and Property Limited (GLAP) (or a newly established subsidiary, if deemed appropriate) being used to deploy European Regional Development Funds funding into new investment funds for the next phase of London Green Fund I, including entry into any relevant agreements and documentation to facilitate this:

 

b)  Greater London Authority Holdings Limited or its existing subsidiary GLAP (or a newly established subsidiary, if deemed appropriate) assuming European Investment Bank’s management and monitoring responsibilities going forward for the remainder of the London Green Fund I, including entry into any relevant agreements and documentation to facilitate this; and

 

c)  The continuation of the London Green Fund I Investment Board and the establishment of a similar Investment Board for the London Green Fund II.

11.

Project Performance Update pdf icon PDF 106 KB

Additional documents:

Minutes:

11.1  The Board received the project performance report for December 2015, and an update from the Senior Performance Manager on the three red rated projects as set out in the report. 

 

11.2  It was noted that the London Assembly’s Budget and Performance Committee at its recent meeting had discussed the Mayor’s affordable housing target, noting that it had been rated amber. The Board agreed that the programme be rated green as the target would be achieved, but that measuring the target was dependent on figures from the Department for Communities and Local Government which were published later in the year. Moreover, while the ratings were based on risk, the GLA was effectively managing housing risks for which it was responsible.

 

11.3  DECISION:

 

  That:

 

a)  The red and amber project performance and issues in the report and Appendix 1 be noted and the affordable housing programme be revised to green; and

 

b)  The forward plan set out in Section 5 of the report be agreed.

12.

Developing a New Junior Electricity Supply Licence - Progress Report (Part Reserved) pdf icon PDF 82 KB

Additional documents:

Minutes:

12.1  The Board received the report providing an update on the Licence Lite Project. The Assistant Director for Environment noted that the project would allow decentralised energy providers to sell electricity at market rates. Under the proposed scheme the GLA would recover its costs, which meant no future funding would be required. 

 

12.2  A Member noted recent changes in energy prices which might impact the project. The Sustainable Energy Strategy Officer explained that this would reduce profit margins, as the fees and unit costs were both fixed. However, energy prices would have to reduce much further before the scheme was substantially affected. Overall the project was expected to be profitable.

 

12.3  DECISION:

 

  That the report be noted.

13.

Funding for Boiler Scrappage Scheme pdf icon PDF 219 KB

Additional documents:

Minutes:

13.1  The Board received the report which set out proposals for a GLA pan-London boiler scrappage scheme. The Assistant Director, Programme, Policy and Services explained that the scheme aimed to reduce carbon emissions and would be targeted at London Rental Standard accredited landlords and first-time home buyers.

 

13.2  The Board discussed the merits of using a voucher system, and agreed that ‘rigorous checks’ referred to in paragraph 7.4 of the report should be done by the steering group which included the finance and governance teams. A Member highlighted the Energy Saving Trust’s past experience running similar projects at a national level and their record in identifying instances of potential fraud.

 

13.3  The Board asked whether the scheme could be targeted at vulnerable groups who would benefit most from having their boilers replaced. It was noted that introducing formal criteria would delay the implementation of the scheme but that opportunities to target these groups more effectively, for instance through targeted marketing or by working with local authorities, would be considered.

 

13.4  DECISION:

 

  That the proposal to implement a GLA boiler scrappage scheme at the start of February, with capital funding of £2.6m and revenue funding of up to £200,000 be approved  ...  view the full minutes text for item 13.

14.

Any Other Business the Chair Considers Urgent

Minutes:

14.1  There was no urgent business.

15.

Date of Next Meeting

The next meeting of the Board is scheduled for Wednesday 17 February 2016 at 2pm in Committee Room 5, City Hall.

Minutes:

15.1  The date of the next meeting was confirmed as being on Wednesday 17 February 2016 at 2pm in Committee Room 5, City Hall.

16.

Close of Meeting

Minutes:

16.1  The meeting ended at 5.38pm.