Agenda Item. 9
THE VALE OF GLAMORGAN COUNCIL
CABINET MEETING: 29TH NOVEMBER, 2006.
REPORT OF THE DIRECTOR OF COMMUNITY SERVICES
CATERING ACTION PLAN FOR THE PERIOD SEPTEMBER, 2006 to
31st MARCH, 2007.
Purpose of Report
1. To bring to the
attention of Cabinet, the actions being taken and to be taken by
the Catering Division to minimise/reverse the predicted overspend
previously reported to Cabinet.
Background
2.
The Revenue Monitoring for the period to 31st July,
2006, reported to Cabinet on 6th September indicated
that there was a potential overspend of £150,000 on catering
functions. Cabinet requested this report to identify remedies
to address the projected deficit. The deficit, which is due
to losses incurred by the Trading Account, is the result of adverse
publicity and fall in number of meals being supplied.
3.
The previously predicted deficit is being managed and is currently
projected at £130,000. As the deficit relates to the school
meals service, it is anticipated that any deficit at the year-end
will be met from under spend on Policy Committee.
Relevant Issues and Options.
4. Due to the
adverse publicity surrounding school dinners and the continued
predicted fall in school numbers on roll it is anticipated that the
service will have a deficit of £130,000 in the financial year of
2006/07.
5.
Plans have already been instigated and adopted in some areas to
minimise/recover the predicted loss. Full recovery is not
achievable in the remainder of this financial year but it is
expected when the recommended changes are accepted that monthly
reports during 2007/08 would support significant evidence of
recovery.
6. These plans
include, major changes in labour costs, the need to address the
reduction in meal numbers against the hours employed within
kitchens to cook, rationalisation of units, revision of service
type production versus transported versus pre-packed and support in
the promotion of school meals by the Council’s Chief Officers and
Councillors.
7.
In addition school meal prices will need to be revised to bring
them in line with other Authorities and generate additional
income.
8. The anticipated
transfer of Leisure to Vale Catering services will afford an
income growth in the year 2007/08 when all aspects of new service
and staffing has been completed.
9. The current
service level agreements with schools are being reviewed and
amended to take into account of surplus some schools have achieved
through the added value support given by the Catering
Division. Any increase in percentage return would support the
cost being borne by other elements in the business.
9.
Funding is to be received from the Welsh Assembly for the new
Standards currently imposed upon the Council’s school meals
service, which will enhance the service provision.
10. These
are but a few of all the changes to be implemented, it is envisaged
that these will have the most impact initially and are deemed the
most urgent and important.
11. As
actions are developed, a further more detailed report will be
presented to Cabinet with costs that have been established and
further information on WAG funding is received.
Resource Implications (Financial and
Employment)
12. The
deficit remaining on catering functions at the year-end 2006/07
will be met from under spend on Policy Committee. Further
money may be sought if WAG does not provide anticipated funding for
2007/08.
Legal Implications (to include Human Rights
Implications)
13. There
are no Legal Implications as a direct result of this report.
Crime and Disorder Implications
14. There are
no Crime and Disorder Implications as a direct result of this
report.
Equal Opportunities Implications (to
include Welsh Language Scheme Issues)
15. There
are no Equal Opportunity implications as a direct result of this
report.
Appropriate Scrutiny
Committee
16.
Community Well Being and Safety
Policy Framework and Budget
17. The
report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member
Consultation)
18. This report
does not require Ward Member consultation.
RECOMMENDATION
It is recommended that:
(1)
Cabinet note the actions proposed to minimize/reverse the projected
deficit on Catering Services.
(2)
A further more detailed report is presented to Cabinet once
costings have been identified and further information regarding WAG
funding is received.
Reasons for Recommendation
(1)
Cabinet are aware of the proposed actions.
(1)
To update Cabinet on outstanding issues in relation to the service
budget.
Contact Officer
Rita Hicks
Team Manager, Catering.
01446 731900
JAMES W. CAWLEY,
DIRECTOR OF COMMUNITY
SERVICES