The Director of Resources submitted a report to the Committee acting as shareholder of Reading Transport Limited (RTL), setting out an annual review report submitted by RTL, to fulfil the reporting obligations set out in the company’s Articles of Association.  The RTL report and annexes were attached to the report at Appendix 1.

The report noted that the RTL report was seeking the Shareholders agreement to a number of recommendations, including approval of the fleet replacement programme and a proposed acquisition, and for the financial arrangements to support these.  The report summarised issues arising from the RTL report, including an assessment of financial stability, acquisitions and company structure, for the Committee to take into account in considering the recommendations from RTL.

The Chief Executive, Chair and Chief Finance & Information Officer of RTL attended the meeting and, at the invitation of the Chair, addressed the Committee.

Resolved –

(1)     That the trading position of the Company in 2017/18 and the assumptions in its 2018/19 budget be noted;

(2)     That the requirements for any loans to the Company to be charged at state aid compliant rates be noted;

(3)     That the following recommendations to the shareholder set out in the Annual Review report from RTL be agreed:

a)  That the content of the review be noted;

b)  That the updated fleet replacement programme be approved;

c)  That the provision of lease finance to Reading Buses by means of an extension of the existing Master Lease Agreement, should it be required to facilitate the purchase of vehicles as set out in the report, be approved, and that the Head of Finance be authorised to agree terms with the Company;

d)  That the completed acquisition of Newbury & District Ltd be noted;

e)  That the proposed acquisition set out in Section 6 and Annex 2 of the report be approved;

f)  That the provision of loan finance to Reading Buses to facilitate the proposed acquisition be agreed, and that the Director of Resources be authorised to agree terms with the Company;

g)  That joint action be agreed to identify a preferred option to mitigate the balance sheet and profit & loss account impacts of the Local Government Pension Scheme and approve further detailed actuarial assessments to implement the preferred solution;

h)  That the progress being made with developing and implementing the Strategic Action Plan following completion of the joint review project be noted;

(4)     That RTL be requested to provide more regular financial and operational performance reporting and submit their Budget and Business Plan to the Shareholder prior to the start of the company’s financial year.

(Exempt information as defined in paragraph 3).