Agenda and minutes

Apologies for absence were received from Nicholas Bensted-Smith, Alderman David Graves and Deputy Joyce Nash.

There were no declarations.

To agree the public minutes of the meeting held on 25November 2020.

RESOLVED

That the public minutes of the meeting held on 25 November 2020 be approved as a correct record.

Report of the Town Clerk.

The Committee considered a report of the Town Clerk tracking actions outstanding from previous meetings.

Officers reported that in respect of Energy Costs, a copy of correspondence to the Chairman of Spitalfields Market Tenants Associatiion had been circulated to Markets Committee Members prior to this meeting. Members were also advised that gas and electricity charges had fallen significantly and that energy workshops would be arranged for all wholesale markets.  Energy costs would also be reduced further once the new solar farm was operating as part of the Power Purchase Agreement.

RESOLVED

That the report be noted.

The Market Superintendents for Billingsgate, New Spitalfields, and Smithfields Markets, to be heard.

The Committee heard oral reports from the Market Superintendents as set out below.

New Spitalfields

• Deliveries -There is currently approximately a 24 hour delay in the delivery of produce to the market which featured in an Evening Standard news article on 4^th January 2021.  Larger traders were purchasing multiple pallets for resale to smaller businesses

• Covid-19 - A few traders had tested positive for Covid-19 and this was being monitored closely.  Face coverings were required indoors and posters were displayed and flyers circulated to remind traders and visitors of this requirement.  Scope for issuing fines/introducing new bylaws for non-compliance were being explored and advice was being sought from the Comptroller, CoL Police and Public Health to see what powers were available.  The Deputy Chairman requested that this be pursued after the meeting to ensure full compliance with Public Health Guidance and Covid-19 regulations.

• Refrigerated mortuary containers – These containers had now been moved but stretchers and body bags were still being stored onsite.

• Entrance barrier – without prejudice meetings with the supplier took place on 2^nd Dec 2020 and 5^th Jan 2021 and a follow up offer of compensation from the supplier was imminent (an earlier offer was refused)

• A fire safety audit had scored 91% for fire safety compliance

Smithfield

• Christmas – trade had been fair to good and a Covid-19 queuing system had been used to control the maximum allowable number of 50 people at any one time in Buyers Walks from the 13^th December.  A peak of 6,300 public visitors was reached on 21 December 2020 and the Market welcomed just over 30,000 visitors in the 10 days prior to Christmas. There was a 20% decline in vehicles using the car park compared to the same Christmas period in 2019, but since Christmas

Report of the Director of Markets & Consumer Protection

The Committee considered a report of the Director of Markets & Consumer Protection outlining management procedures in place to meet the requirements of the Corporate Risk Management Framework.

It was also confirmed that the general public were not being refused admission to New Spitalfields Market but visitors were not permitted entry in large groups to maintain social distancing. 

Officers advised that the rating for MCP-SMO13 & MCP-SMO14 was green as mitigation measures had now been put in place.  Members remained concerned regarding ratings for MCP-SMO13 & MCP-SMO14 and Officers reiterated that as mitigation measures (netting) were in place, the level of risk had been reduced. However, Officers would consider whether the netting should be retained in the medium term, in consultation with City Surveyor and the outcome of the Markets building conditions surveys in the coming weeks would be reported to the Committee in due course.

Given the continuing concerns of Members that ratings were over-generous, Officers agreed to further review MCP-SMO13 & MCP-SMO14 risk ratings.

RESOLVED -

That the report be noted.

Report of the Chamberlain and Director of Markets & Consumer Protection

The Committee considered a report of the Chamberlain and the Director of Markets & Consumer Protection presenting the proposed revenue and capital budgets for 2021/22.  Officers stated that a savings envelope of 12% had been agreed across all budgets and consequently expenditure needed to be reduced or income increased in order to remain within cash limits.  Officers requested that any questions relating to specifics of the Target Operating Model should be raised under non-public/confidential businesses.

In response to questions and comments from Members, Officers advised that

• Discussions were ongoing with the supplier regarding compensation for delays in installation of the entry barrier for New Spitalfields Market. The claim for compensation was only up to March 2020 and a claim beyond March 2020 had yet to be submitted.
  
  
• The shortfall in business rates income at Smithfield Market had been met by the CoL underspends from 2019/20 and also the Covid-19 contingency fund.

• The increased employment costs were attributed in part to a 5% increase in London Weighting.

• The additional costs at Smithfield and Billingsgate Markets for repairs and maintenance related to the Skanska contract managed by the City Surveyor’s Department

The Chairman suggested that future reports should present a high level summary and in response Officers stated that detail had been provided to give assurances to Members but in future reconciliation tables could be provided if this was acceptable to Members rather than duplication the operating table.

RESOLVED

1.          That the proposed Markets Committee revenue budget for 2021/22 be approved for submission to the Finance Committee.

2.          That the proposed Markets Committee capital and supplementary revenue projects budgets for 2021/22 be approved for submission to the Finance Committee.

3.          That the Chamberlain, in consultation with the Director of Markets & Consumer Protection be authorised to revise these budgets to allow for any further

Report of Director of Markets and Consumer Protection

The Committee considered a report of the Director of Markets & Consumer Protection seeking approval of the Business Plan for the Markets & Consumer Protection Department: Markets for 2021/22.

Officers advised that in preparation for new reporting lines arising from the Target Operating Model, only the Markets element of the Business Plan was being reported to the Committee.

A member requested that additional text be included to illustrate how the Climate Action Strategy was being supported through measures such as reducing energy consumption and eco-friendly considerations for the Market Co-location Programme and Officers accepted this suggestion.

RESOLVED

1.          That the factors taken into consideration in compiling the Markets & Consumer Protection Department: Markets Business Plan be noted.

2.          That subject to the incorporation of any changes requested by this Committee, the departmental Business Plan for Markets & Consumer Protection Department: Markets for 2021/22 (or the elements therein that fall within this committee’s Terms of Reference) be approved.

Report of Director of Markets and Consumer Protection

The Committee considered a report of Director of Markets and Consumer Protection provides an update on progress made during Period 2 (August-November) of 2020/21 against the key performance indicators (KPIs) and key improvement objectives outlined in the Markets Business Plan 2020/21.

In response to questions from Members, Officers advised that debt levels for Smithfield Market were historically low prior to the Covid-19 Pandemic.  However, some traders were seeking financial support and decisions on the nature of this support had yet to be made.

RESOLVED

That the report be noted.

Report of Director of Markets and Consumer Protection

The Committee considered a report of Director of Markets and Consumer Protection providing an overview of the maintenance arrangements at Smithfield, New Spitalfields and Billingsgate Markets.

Officers reported that full building surveys would be undertaken and a report from Internal Audit would be presented to the Committee in March 2021. 

A Member was concerned that there appeared to be no urgency in completing surveys and concerns were also raised regarding the potential for apportioning blame.  Officers stated that the tender process for appointing surveyors to carry out the building audit had taken some time because of the nature of Col requirements. It was also expected the Internal Audit would clarify responsibilities so prevent apportionment of blame and highlight risk ownership.

RESOLVED

That the report be noted.

There were no questions.

There were no urgent items.

MOTION - That under Section 100A(4) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

RESOLVED – That under Section 100A(4) of the Local Government Act 1972, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part I of Schedule 12A of the Local Government Act as follows:-

To agree the non-public minutes of the meeting held on 25 November 2020.

RESOLVED

That the non-public minutes of the meeting held on 25 November 2020 be approved as a correct record.

Report of Director of Markets and Consumer Protection

The Committee considered a report of the Director of Markets and Consumer Protection on Tenancies at Will that have been granted and lease assignments at the City of London’s Wholesale Markets.

There were no questions.

There were no urgent items.

To agree the confidential minutes of the meeting held on 25 November 2020.

RESOLVED

That the confidential minutes of the meeting held on 25 November 2020 be approved as a correct record.

Report of the Director of Markets & Consumer Protection and City Surveyor.

The Director of Markets & Consumer Protection and City Surveyor reported on further proposals for tenant support.