The Director of Resources submitted a report to the Committee, acting as the shareholder of Reading Transport Limited (RTL), setting out at Appendix 1 an Interim Review Shareholder Update report from RTL.  The report summarised the key points of the Shareholder Update and the requests for shareholder approval made by RTL, including the provision of lease finance and the appointment of the Company’s Service Delivery Director to the Board.  The report also gave an update on discussions with the Company regarding the Local Government Pension Scheme liability.

Resolved –

That the Policy Committee, acting as Shareholder of Reading Transport Ltd:

a)       Note the report and the Shareholder Update Report attached at Appendix 1;

b)       Agreed the approval requests set out in the Shareholder Update Report to:

i)       Note the content of the Company’s Report;

ii)      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 that the Executive Director of Resources be authorised to agree terms with the Company;

iii)     Approve the appointment of Dan Bassett into the position of Service Delivery Director;

c)       Request that the Company report back to the June 2020 Policy Committee with proposals and an action plan to reduce operating costs, realise efficiency savings and return the company to profit over the next 12 to 24 months in line with the Shareholder’s dividend position;

d)       In light of the significant financial challenge, request a skills audit of the RTL Board to ensure it had the capacity to drive the requisite improvement in the trading position of the Group overall; and

e)       Note the approach being taken to addressing the Local Government Pension Fund Issue as set out in the report.

(Exempt information as defined in Paragraph 3).

(Councillor Stanford-Beale declared a prejudicial interest in this item, left the meeting and took no part in the discussion or decision. Nature of interest: Councillor Stanford-Beale was a Non-Executive Director of Reading Transport Limited).