Decisions

The report detailed the Pension Fund Annual Report 2016/17 (attached as an appendix to the report) which had been prepared in accordance with Regulation 57 of the Local Government Pension Scheme Regulations 2013, and which applied for reporting periods beginning 1 April 2014. This superseded Regulation 34 of the Local Government Pension Scheme (Administration) Regulations 2008.

 

The Committee:

 

1.         Agreed the 2016-2017 Pension Fund Annual Report.

 

2.         Agreed that the Pension Fund Annual Report be published electronically.

 

3.         Agreed that the Chairman and the Statutory Section 151 officer be authorised to conclude and sign so far as necessary, the annual report.

The report before Members provided an extract of the Council’s Statement of Accounts for the year to 31st March 2017, showing the unaudited accounts of the Havering Pension Fund as at that date.

 

Key movements as noted in the report from the 2016/17 accounts were:

 

•           The Net Assets of the Fund have increased to £671m for 2016/17 from £573m in 2015/16, a net increase of £98m.

 

•           The net increase of £98m is compiled of a change in the market value of assets of £95m, investment income of £6m and net additions of cash of £1m and offset by management expenses of (£4m).

 

•           Mandates held with Baillie Gifford (Global Alpha Fund) and Ruffer (Absolute Return Fund) were both transferred into the London CIV, increasing the assets classified in the accounts under Pooled Investments and decreasing the assets directly classified under Bonds.

 

The Committee noted the Havering Pension Fund unaudited Accounts as at 31st March 2017 and considered that there were no issues that needed to brought to the attention of the Audit Committee.

The report before Members outlined the impact of the implementation of the Markets in Financial Instrument Directive 2014/65 (“MiFID II”) and in particular the risk to the administering authority of becoming a retail client on 3rd January 2018.

 

The report recommended that elections for professional client status be made on behalf of the authority with immediate effect.

 

The Committee:

 

1.         Noted the potential impact on investment strategy of becoming a retail client with effect from 3rd January 2018

 

2.         Agreed to the immediate commencement of applications for elected professional client status with all relevant institutions in order to ensure it can continue to implement an effective investment strategy.

 

3.         In electing for professional client status the committee acknowledged and agreed to forgo the protections available to retail clients attached as APPENDIX 1 of the report (Retail client protections) and that this meant no change to the existing arrangements.

 

4.         Agreed to delegate responsibility to the Statutory Section 151 Officer Finance (Interim) for the purposes of completing the applications and determining the basis of the application as a full service.

The Committee received a presentation from a representative from the LAPFF on the benefits of the Havering Pension Fund (the ‘Fund’) becoming a member of his organisation.

 

Members recognised that LAPFF has lobbying power when it comes to holding predominantly UK-based companies to account for their operation and governance. Questions were raised however regarding its influence and strategy with the emergence of pooled resources such as CIV.

 

The Committee:

 

1.    Agreed that the fund should become a member of LAPFF on an initial one year basis with a review in November 2018 as to continued membership;

 

2    Noted that the Investment Strategy Statement would be amended To reflect membership of LAPFF and incorporation at the next review

 

The resolution was passed by 4 votes to 3. Councillors Crowder, Wallace and Chapman voted against the resolution.

The report provided an update on the progress of the implementation of the Investment Strategy as outlined at the June Pensions Committee meeting.

 

The Committee:

 

1.         Noted the progress report as prepared by the Fund’s Investment Advisor.

 

2.         Noted that the implementation of the multi-asset credit allocation will be undertaken through the London Collective Investment Vehicle (LCIV) as suitable products are developed.

 

3.         Agreed that a search for a private debt manager will be undertaken in collaboration with other London Boroughs.

 

4.         Agreed that a search for a real asset strategy will be undertaken in conjunction with Newham, noting that this will allow Havering to provide input on the scope of the search and ensure that its requirements can be met.

The report provided the Committee with an overview of the performance of the Havering Pension Fund investments for the first quarter to 30 June 2017. The performance information was taken from the quarterly performance reports supplied by each Investment Manager, State Street Global Services Performance Services PLC (formerly known as WM Company) quarterly Performance Review Report and Hymans Monitoring Report.

 

It was noted that the net return on the Fund’s investments for the first quarter to 30 June 2017 was 1.3% (or £10m to £681m). This represents an outperformance of 1.0% against the combined tactical benchmark and represents an outperformance of 3.1% against the strategic benchmark.  The Baillie Gifford (BG) Global Equity Fund was the best performer over the quarter. The BG DGF and GMO Global Real Return Fund both outperformed their respective benchmarks over the quarter whilst the Ruffer Fund underperformed. The RLAM Fund lost money albeit less than the benchmark reflecting a fall in the value of bond markets over the quarter. 

 

It was also noted that the overall net return of the Fund’s investments for the year to 30 June 2017 was 13.5%. This represents an outperformance of 5.0% against the combined tactical benchmark and an outperformance of 4.7% against the annual strategic benchmark - this is a measure of the Fund’s performance against a target based upon gilts + 1.8% (the rate which is used in the valuation of the funds liabilities). The implications of this shortfall were set out in the report before Members.

 

The Committee:

 

1.            Noted the summary of the performance of the Pension Fund within the report.

 

2          Noted Hymans performance monitoring report and presentation

 

3          Received a presentation from the Fund’s Multi-Asset Manager (Ruffer)

 

4          Noted the latest quarterly update from the Chair of the Investment Advisory Committee, LCIV

 

5          Noted the quarterly reports provided by each investment manager.

 

6          Noted the analysis of the cash balances.

It was RESOLVED that members of the public be excluded from the meeting as there would likely be disclosure to them of exempt information within the meaning of paragraph 3 of the Local Government Act 1972 as it referred to the financial or business affairs of the organisation

The minutes of the meeting of the committee held on 15 June 2017 were agreed as a correct record and signed by the Chairman.

12 questions replied to.

Report AGREED without division.

Report AGREED by 43 votes to 5.

A.   MEMBERS SPEAKING ON PLANNING APPLICATIONS

 

Amendment by Conservative Group CARRIED by 27 votes to 14 and AGREED as substantive motion by 27 votes to16.

Petitions presented by Councillors Crowder and Tucker.

None.

Minutes AGREED as a correct record.

Received from Councillors Alexander, Glanville, Kelly and Ower.

Report AGREED by 45 votes to 5.

Cabinet will be asked to recommend to Full Council to approve amendments to 2017/18 Treasury Management Strategy 

Report AGREED without division.

 

Licensing Act 2003

Notice of Decision

 

 

PREMISES

Station Lane Express

89 Station Lane

Hornchurch

RM12 6JU

 

DETAILS OF APPLICATION

 

The application to vary a premises licence was made under section 17 of the Licensing Act 2003 (“the Act)

 

APPLICANT

Mr Jacob Kattooparambil Cherian

89 Station Lane

Hornchurch

RM12 6JU

 

1.     Details of requested licensable activities

 

Details of the application

 

Variation applied for:

 

Day	Start	Finish
Monday	08:00	23:00
Tuesday	08:00	23:00
Wednesday	08:00	23:00
Thursday	08:00	23:00
Friday	08:00	23:00
Saturday	08:00	23:00
Sunday	08:00	23:00

 

 

2.     Promotion of the Licensing Objectives

 

The applicant acted in accordance with regulations 25 and 26 of The Licensing Act 2003 (Premises licences and club premises certificates) Regulations 2005 relating to the advertisements of the application.  The required public notice was installed in the Yellow Advertiser of the 4 August 2017.

 

3.     Details of Representations

 

There was a representation against the application from a responsible authority;

Havering’s Licensing Authority.

 

4.     Determination of Application

 

Mr Paul Campbell, Havering’s Licensing Specialist attended the hearing and reiterated his representation against the application.

 

The Sub-Committee was informed that the application to vary a premises licence by the applicant had asked to remove conditions placed on the premises licence by a Licensing Sub-Committee in 2012 and to extend the hours which were also imposed at that time. The application had not made any reference in the operating schedule directly relating to the conditions asked to be removed or extended hours.

The Licensing Specialist also stated that the application had failed to acknowledge that the venue was in a cumulative impact area outlined in Havering's Statement of Licensing Policy and what measures would be put in place to make the application an exception to the policy.

 

Mr Campbell informed the Licensing Sub-Committee that the representation as a responsible authority against the application was based upon the  grounds of the prevention of crime and disorder, public safety, the prevention of public nuisance and the protection of children from harm licensing objectives.

 

The Sub-Committee noted that the premises was a convenience store which was permitted to sell alcohol for off supply Monday to Sunday 08:00 to 20:00. It was located in a parade of shops which had residential properties above. It was in St Andrews Ward which was highlighted in Havering's Licensing Policy as an area of cumulative impact. The Licensing Officer was of the view that varying a premises licence to a premises in Hornchurch without the correct conditions on the licence and procedures in place would add to the cumulative impact area in a negative way.

 

The Sub-Committee was informed that the application requesting longer licensed hours would create additional disturbance for neighbours and additional hours where children have to be protected from harm. It was also mentioned that the store applied for a premises licence in August 2012 for the sale of alcohol Monday to Sunday 06:00 to 23:00 but following objections received at that time from the police, licensing authority and interested parties, at the hearing of the Licensing Sub-Committee on 27 September 2012, conditions and reduced operating times were imposed on the licence.

 

A copy of the decision notice was offered but considered not to be necessary for the hearing. It was the view that the application should be judged on its own merits.

 

The Licensing Specialist outlined that the premises was transferred on 7 August 2014 and then a second transfer was made to Mr Jacob Cherian the current licence holder on 4th May 2017. The premises had been operating as a convenience store/off licence without issue since September 2012.

 

The Licensing Officer detailed to the Sub-Committee that the application had not addressed the following of Havering's licensing policies: Policy 1.7, Policy 4.3, Policy 4.4, Policy 4.6, Policy 4.8, Policy 5.1, Policy 5.3, Policy 5.5, Policy 5.6.

 

The Sub-Committee was informed that the Licensing Officer had also made contact with the applicant on receipt of the application, highlighting that the premises was located in a cumulative impact zone and sought additional information from the applicant. It was noted that no additional information was received even though the issue was highlighted to the applicant in an email and letter when acknowledging receipt of the application in July 2017.

 

The Licensing Officer was of the opinion that further to the application requesting conditions to be removed and additional times granted, the applicant had not addressed these conditions in the operating schedule or the measures that would be in place relating to these conditions to promote the four licensing objectives.

 

It was also the view of the Licensing Specialist that the operating schedule in the application did not address the cumulative impact in any way, on this point alone consideration should be given to rejecting the application.

 

In conclusion the Sub-Committee was informed that the application was inadequate for a premises licence located in an area of cumulative impact (St Andrews Ward).

 

The Sub-Committee was urged to follow Havering's Licensing Policy (5.0 Location and Special Policies, e.g.  Cumulative impact) and refuse the application.

 

The Licensing Specialist stated that if the application was refused and if the applicant wished to submit a fresh application providing full information in the operating schedule would be expected to be completed to a standard that would limit any negative impact on the vicinity. Appropriate conditions could be offered in the application so that problems did not arise in the future if the licence was transferred to another person/body.

 

In response the applicant Mr Kevil Jacob addressed the Sub-Committee stating that his father (Mr Jacob Cherian) took over the premises in May 2017.

 

The business was a family run premises and they were inexperienced in completing the application document.

 

The Sub-Committee was informed that the family were not aware of the restriction on the premises licence until the transfer had reached an advanced stage that would have had a financial impact on the family.

 

Mr Jacob also narrated the family’s plight whilst seeking professional advice to complete the application form. He stated that the cost of using an agent was considered to be excessive and they decided to complete the form without any outside guidance.

 

The business had been affected by the current conditions on the premises licence as it did not allow the business to sell single cans of alcohol and was generally affecting sales at the premises.

 

Mr Jacob informed the Sub-Committee that as a result of the conditions on the licence, many of their customers were leaving the premises and doing all their shopping in other outlets along the road.

 

The Sub-Committee was informed that the premises was fitted with a CCTV system that met the requirement of the police, that Challenge 25 was in operation at the premises and the business was in touch with its neighbours and there were no issues of concern.

 

Mr Jacob apologised to the Sub-Committee for the manner in which the application had been completed.

 

Decision

 

The Sub-Committee was obliged to determine the application with a view to promoting the licensing objectives, which are:

·                     The prevention of crime and disorder

·                     Public safety

·                     The prevention of public nuisance

·                     The protection of children from harm

 

The Sub-Committee considered the application to vary a premises licence made by Mr Jacob Kattooparambil Cherian  pursuant to Section 34 of the Licensing Act in respect of Station Lane Express, 89 Station Lane Hornchurch RM12 6JU. The premises fell within the St Andrew Cumulative Impact Zone.

 

Written and oral representations were received from one responsible authority, namely the Council’s Licensing Authority. 

 

The Sub-Committee also heard evidence from the applicant and considered the submissions made by the applicant.

 

The Sub-Committee reminded itself that it must promote the licensing objectives and have regard to the Statutory Guidance issued under s. 182 of the Licensing Act 2003 and the Council’s Statement of Licensing Policy.

 

The Application

The Sub-Committee considered the applicant’s request in respect of an extension of the hours of business from 20.00 to 23.00, seven days a week.

 

There were no representations against the application from interested parties. There were concerns raised by the Licensing Authority. These concerns were reiterated at the hearing.

The Sub-Committee looked at the written application and the written representation contained therein. It also listened with care to the evidence given by the applicant in respect of how he proposed to meet the licensing objectives as set out in the council’s Statement of Licensing Policy document. It also considered the Guidance issued pursuant to section 182 of the Licensing Act 2003.

 

 

The Decision

 

The applicant failed to mention in his application the significance of being in the St Andrews cumulative impact area. Although the application was considered on its merits it was apparent that no thought had been given to how this extension would not add to  cumulative impact.

 

The applicant requested the removal of a number of conditions on the licence namely:

Not to sell ciders, lager or spirit based mixers over 5.5%ABV.

Not to sell lager, cider, beer or spirit based mixers unless they are sold in packs of 4 or more.

Not to sell wines or spirits in less than 75cl.

 

On the evidence available at this time the variation was unrealistic as it would not meet the licensing objectives.

 

It was apparent that the premises are in a residential area. There are homes located all around the premises.

 

It is noted that the current licence holder has only recently taken over the licence.

The application made no real attempt to deal with the issues specific to the cumulative impact area. It also made no real attempt to deal with the criteria set out in Havering’s Licencing Policy document.

 

The Reasons

 

The Sub-Committee sympathised with the applicant’s difficulty in running a viable business. The applicant demonstrated himself as an honest, reliable and frank witness; however the Licensing Policy and its objectives needed to be maintained particularly when dealing with a cumulative impact zone and the presumptions that flow from that. In the circumstances the Sub-Committee was prepared to extend the hours of the licence  until 9.00pm every evening and no further. All other conditions on the licence remain unchanged.

 

Right of Appeal

 

Any party who has made a relevant representation may appeal to the Magistrates’ Court within 21 days of notification of the decision.

 

On appeal, the Magistrates’ Court may:

1.         Dismiss the appeal; or

2.         Substitute the decision for another decision which could have been made by the Sub Committee; or

3.         Remit the case to the Sub Committee to dispose of it in accordance with the direction of the Court; and

4.         Make an order for costs as it sees fit.

 

 

 

 

 

 

 

 

 

 

 

 

Approval to award contracts following competitive tender process. The local authority seeks to procure preventative services which reduce, delay and/or prevent Havering residents' from presenting eligible needs for statutory care and support.