The Director of Resources submitted a report to the Committee acting as shareholder of Reading Transport Limited (RTL), presenting at Appendix 1 a report from RTL providing an update to the shareholder on the following matters:

·         Operational Update

·         Financial Performance to P82018/19 and close-down of FY 2017/18

·         Pension Scheme Commitments

·         Dividend 2018/19

·         Fleet Replacement 2018/19 & Capital Investment

·         Strategic Plan Update

The RTL report also set out a number or recommendations for approval from the shareholder.

Resolved –

That the Committee acting as Shareholder of Reading Transport Ltd:

a)       Note the Company’s financial management information for 2018/19 and the trading loss incurred in 2017/18 together with the potential implications for the dividend assumed within the Council’s Medium Term Financial Strategy;

b)       Note the commitment of RTL to delivering the 2018/19 dividend target and to working with the Shareholder to ensure that future targets remain achievable;

c)       Agree the following recommendations as set out in the RTL report at Appendix 1:

                                     i.        Note the content of this review;

                                   ii.        Approve the updated fleet replacement programme;

                                 iii.        Approve 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, and authorise the Head of Finance to agree terms with the Company;

                                  iv.        Note the completion of the previously approved acquisition of Courtney Coaches Ltd;

                                    v.        Note the ongoing work to identify a preferred option to mitigate the balance sheet and profit & loss account impacts of the Local Government Pension Scheme and the detailed actuarial assessments commissioned;

                                  vi.        Note the progress being made with developing and implementing the Strategic Action Plan following completion of the joint review project;

d)       Note the retirement of Tony Pettitt the Company’s Chief Finance and Information Officer in August 2019 and thank him for his service in Reading.

(Exempt information as defined in Paragraph 3).