Agenda item

(To receive a report from Anita Ruffle, Head of Transport Services, which provides and update on the activities an performance of the Council's Teckal Company, Transport Connect Ltd (TCL), over the period May-October 2021)

Consideration was given to a report from Anita Ruffle, Head of Transport Service, updating the Committee the activities and performance of the Council's Teckal Company, Transport Connect Ltd (TCL), over the period May-October 2021. Members were advised that the initial loan to the Teckal Company had now been repaid in full, but it is still making use of its revolving credit agreement. The latest management information available showed a strong income performance with income for the first half of the year 6.5% better than budgeted. Established in 2016, Teckal had already saw an expansion of both the Company and it’s Board Membership. There has been no capital expenditure on replacement vehicles during the period. Although revisited at Board meetings regularly, no changes had been made to the Company’s current business plan. Several pupils carried tested positive for Covid-19 and three TCL drivers subsequently contracted the virus, totaling five staff members testing positive since May 2021. The cessation of Government grants for PPE resulted in Teckal bearing the full cost for PPE and cleaning. Like many operators, TCL had also been impacted upon by a shortage of drivers within the market. During July, all workshop technicians underwent first aid training on a course specifically designed for the workshop environment. Training to administer epilepsy medication was undergone by some crews in August and Supervisors received Fire Marshall training in September. TCL's One School One Provider (OSOP) contract into Sandon School was subject to an unannounced check by the council's Inspection Team on the 6 October with no compliancy concerns identified. All, but two, vehicles passed their MOTs first time. TCL continued to operate other CallConnect Services in areas of lack of interest. Three third party liability incidents have resulted in damage to vehicles over recent months. Installation of CCTV on all CallConnect vehicles was implemented to successfully evidence third party culpability. The Company has accepted liability for one incident. One complaint was received regarding lack of advanced notice about a change of personnel on a SEND contract.

The Committee considered the report, and during the discussion the following comments were noted:-

• Members asked that, as TCL’s governance and resilience was to be assessed, would that encompass the resilience of both the Board’s governance and the resilience of it’s finances. The Head of Transport Service explained that the assurance review was primarily focused on appropriate Board arrangements rather than financial resilience.
• Appreciating the shortage of drivers, Members asked if there was a view to encourage recent retirees to return. The Head of Transport Service explained that all avenues to increase driver employment had been explored. She hoped the BSIP would enable a training academy to enable long term sustainability.
• Members relayed their experience that fuel prices were decreasing in recent weeks.The Head of Transport Service hoped that fuel spikes had peaked and were likely to decline.
• Members sought further clarity on the revolving credit agreement referenced within the report. The Head of Transport Service explained that, while endeavouring to promote financial independence, state aid rules couldn’t have been infringed, therefore a capital loan, to finance assets, and a revolving credit loan, enabling a corporate overdraft facility, were offered. Interest was paid, at a commercial rate, on all credit activity.

RESOLVED

That the report and comments be noted.