News Roundup: Manchester dividend, Boris’ new pension adviser, shared services flop, Barnsley’s eBay sale
0Manchester councils reap airport investment return
A dividend of £60m is set to be shared by Greater Manchester councils from their investment in Manchester Airport. Manchester City Council will reap £33m while the other nine councils will receive £3m each. Jim McMahon, leader of Oldham Council, said: “It is important that any dividend above and beyond this is used to make a difference people can see.”
Johnson appoints LPGA chairman as pension adviser
London mayor Boris Johnson has appointed London Pensions Fund Authority chairman Edi Truell as pensions and investments adviser. Truell will be tasked with encouraging collaboration between public sector pension funds and increasing investment in infrastructure and housing. He will step down from his current role on 1 September.
Shared services venture flops
A Kent council is set to exit a shared services arrangement after less than a year because it failed to deliver savings. Tunbridge Wells Borough Council merged its planning services with councils in Maidstone and Swale last year. But now council officials want to bring the service back in house.
Council creates eBay account
Barnsley Metropolitan Borough Council has created an eBay account to sell off surplus stock. The authority’s environment and transport section is piloting the use of the online platform to offload items including highway materials, plant, transport parts, street lighting equipment, protective clothing and general supplies and materials. Roy Miller, cabinet spokesperson for Place, said: “In a time when we are facing government cuts to our funding, we are having to think more creatively and business-like in order to maintain our services.”
South Yorkshire fund enjoys 14% return
A shift to short duration bonds has not stopped South Yorkshire Pension Fund from announcing a 14% return on its investments during 2014/15. The £6.3bn fund has started a shift to shorter duration bonds due to worries that a rise in interest rates could significantly affect asset valuations.
Avon merges hedge fund mandates
Avon Pension fund has created a single £165m hedge fund mandate managed by JP Morgan Asset Management. The fund will make up 5% of the fund’s overall allocation and replaces three separate hedge fund mandates previously managed by Gottex Fund Management, Signet and Stenham Asset Management.
Dominated councils ‘more prone to corruption’
Councils run by a single political party are more vulnerable to corruption, according to a report by the Electoral Reform Society. ERS told Public Finance website that there was “clear relationship between poor accountability at the ballot box and risks of corruption in local government contracting”. The procurement process was at particular risk, the report is set to say.
Councils create shared services company
Two councils in Suffolk have created a new facilities management services joint venture company. The firm, Verse, is aimed at saving £40,000 a year for Forest Heath District Council and St. Edmundsbury Borough Council. The pair have joined with a local provider, Eastern Facilities Management Solutions (EFMS) and could use the companies to sell services to other businesses and organisations.
