COUNCILLORS have refused to support plans for a joint venture to run a new nursery in Lichfield.
The overview and scrutiny committee meeting heard about the plans to offer a “peppercorn rent” for seven years to a commercial partner to allow Beacon Park’s pavilion to be used for the early years facility.
But questions were raised over the decision to partner with a company which has no prior experience in the education sector and is listed as a licensed restaurant operator on Companies House.
Part of the committee meeting was held in private due to commercial considerations around the “affordable nursery provision” proposal.
Cllr Steve Norman, chair of the overview and scrutiny committee, said councillors had opted not to give their backing to the joint venture.
“Members had many questions that they could ask in the public session and many more in the confidential session that followed which dealt with commercially sensitive matters and also included independent advice that had been commissioned.
“It was noted that the council was first approached by the company in September last year and the council has been carrying out – and is still carrying out – due diligence for the proposal.
“At the conclusion of the question and answer session members agreed that they could not support the proposal as presented.
“Their main concern was the reputation of Lichfield District Council being involved with a joint venture with a company that has no previous experience running a nursery.
“Ensuring that all the legal and regulatory requirements would be complied with was of particular concern. It was also noted that the venue did not have parking facilities or a secure outdoor play area for nursery age children.”
The council has also confirmed that existing rules would safeguard against any conflict of interest after it emerged that a cabinet member was related to one of the directors of the commercial company proposing to run the new nursery.
A spokesperson for the local authority said the decision to push forward with the joint venture had been made by the leader of the council rather than the cabinet member:
“The council, via the Member Code of Conduct, has clear declaration of interest procedures in place. Should any conflict be identified, appropriate steps will be taken to manage or mitigate it, including recusal from decision-making where necessary.
“If a decision directly relates to the financial wellbeing of a relative or close associate, a cabinet member could not take a cabinet member decision in relation to such a matter or take part in any discussion or vote on the matter if the decision is being made at a cabinet meeting.
“This cabinet member decision is being taken by the leader of the council.”
