Agenda item

Further to Minute No. 138 of the meeting of Commissioner Manzie held on 30^th November, 2015 consideration was given to  a report which detailed the minded to decision taken by Commissioner Manzie. 

The views of Council were, therefore, sought on the conclusions of the review of the Magna Business Plan and the strategic positioning of Magna as a key site. Councillor Chris Read (Leader) supported the recommended option to seek a repayment plan with Magna on the two loans and sought changes to the inter-creditor deed as well as the Council offering support in kind to help Magna identify business and development opportunities in respect of the Magna facility and the wider site.

Councillor C. Vines expressed his concern about the Council offering support in kind and how information about the Business Plan was detailed in the media prior to Opposition Members being informed.  He did not feel the Council had moved on and was uncomfortable offering his support moving forward.

Councillor Hoddinott welcomed the report and the financial opportunities available as part of Option 4, which protected employment and public money through investment.  An option had been put forward by Councillor C. Vines to the Leader, the detail of which was not public.

Councillor C. Vines confirmed he had forwarded his proposals to the Leader of the Council, but expressed concern that the detail of the report to Council had been shared in the media with no formal discussion with Members or in the public interest.

Councillor Reynolds welcomed the protection of employment, which was for the benefit of Rotherham, but questioned the level of support to Magna when the town had an equivalent asset and modern building in the town with New York Stadium.  It was suggested that consideration should be given to the long term future of Magna and the use of the site for social housing.

Councillor Currie believed the minded to decision by Commissioner Manzie to be correct, questioned the viability of social housing on an industrial site and supported Option 4 moving forward.

Councillors Alam, Beck, Buckley and Jepson echoed the comments and issues raised by Councillor Hoddinott and the protection afforded to employment and public funds.  Both supported Option 4 moving forward.

Councillor Hunter questioned the status of the loans under Option 4 if they were combined.

Councillor Reynolds again referred to the long term future of the site should Magna fail and suggested the extension of credit to Magna should be increased, secured against the site, and then run as a commercial concern generating revenue, rather than a focusing on one side of the business.

The Leader responded to the comments made by fellow Councillors,  confirmed to Councillor Hunter that the revised loan agreement under Option 4 would capture both loans securely and restated his support for Option 4 of the report.

The Mayor reminded Members of their duty to treat each other with respect and to restrain their comments, which was echoed by other Members.

Resolved:-  To support confirmation by Commissioner Manzie of the minded to decision of 30^th November, 2015 in favour of Option 4 to negotiate an agreed repayment plan with Magna on the two loans.

Mover:-  Councillor Read                       Seconder:-  Councillor Watson