Agenda item

-        Elenore Fisher, Cultural Services Manager, to report.

Consideration was given to a report presented by Elenore Fisher, Cultural Services Manager, which detailed how the main storage facility operated by the Museums, Galleries and Heritage Service was flooded by contaminated mains drainage water on Monday, 25th June, 2007.  The Service received a reasonable insurance settlement for the items damaged or destroyed by the waters and a report was submitted to Members on 2nd June, 2008 with an outline of the projects using the insurance funds, designed to allow the Service and associated collections to recover from the flood.  This comprised three main sections; permanent collections conservation, permanent collections acquisitions and re-instatement of the school loans service.

More recently the Service had been asked to look for potential savings across this fund as a contribution to the overall Culture and Leisure outturn for 2009-10.  In considering the overall position it was estimated that up to £60,000 could be saved as a result of some of the flood recovery tasks being supported by mainstream funding.

It was stressed that the savings identified did not put any of the permanent or handling collections at any further risk and prioritised the continued development of front line services.

Following the request the Authority's Risk and Insurance Section were contacted regarding this proposal. They were of the view that having settled the insurance claim in accordance with the policy conditions, the insurance company had no further interest in the matter and it was for the Council to decide how it wished to apply the proceeds of the claim.

A lengthy discussion ensued and concerns expressed about the identified risks to accreditation involved with this contribution, attempts by the Museum Services to minimise the risk, the plans to mitigate the overall Environmental and Development Services budget position, the potential loss of the Museum, Libraries and Archives Council Accreditation Scheme and the principals and values embodied in the Museums Association code of Ethics.

The potential serious consequences for the service and the Council on the Accreditation being removed were discussed and required some further thought and discussion before a decision was taken.

Further information was provided on the background to the insurance settlement as a result of the 2007 floods and the current state of play with regards to the storage facilities for the appropriate surviving collections.

Clarification was, therefore, sought on the deadlines for the final outturn figures.

Further information was sought on the status of the “Acquisition Fund” for the Museums Service and the criteria for acquisitions with an acknowledgement that unspent funds be carried forward into the following year.

It was acknowledged that there appeared to be some need for further discussion before any decision to use the insurance settlement was taken and that this report be deferred to allow that to take place.

Resolved:-  That the request to use some of the insurance settlement to contribute towards the overall outturn of Culture and Leisure Services for 2009-10 be deferred pending further discussions and a revised report be submitted to the Cabinet Member for Cultural Services and Sport during April, 2010.