Does Wirral Council believe that the will of the people shall be the basis of the authority of government?

Does Wirral Council believe that the will of the people shall be the basis of the authority of government? I was planning on writing today about the implications of the Comprehensive Spending Review (however that’s something that would really benefit from a very in-depth piece), but Wirral Council have published an interesting document about Cabinet … Continue reading “Does Wirral Council believe that the will of the people shall be the basis of the authority of government?”

Does Wirral Council believe that the will of the people shall be the basis of the authority of government?

Wirral Council Cabinet meeting at Birkenhead Town Hall Thursday 12th March 2015 Left to right Surjit Tour, Cllr Phil Davies and Joe Blott
Wirral Council Cabinet meeting at Birkenhead Town Hall Thursday 12th March 2015 Left to right Surjit Tour (Monitoring Officer), Cllr Phil Davies (Leader of the Council) and Joe Blott (Strategic Director (Transformation and Resources))

I was planning on writing today about the implications of the Comprehensive Spending Review (however that’s something that would really benefit from a very in-depth piece), but Wirral Council have published an interesting document about Cabinet meeting report protocol.

That probably sounds rather boring, but it shows the informal arrangements that everyone knew existed behind the scenes before reports were published are being put on a more formal footing.

Although much of it is probably the rather dry nuts and bolts and let’s face it there will still be people submitting reports late and chairs not following procedures with regards to late reports, it does seem an attempt at least to make what the press and public end up reading at least not full of obvious errors (and I’m not talking about spelling mistakes).

The report does state what I knew already, that the SLT (Senior Leadership Team or senior managers at Wirral Council) see reports before they’re published and have a chance to suggest edits.

Even before each public Cabinet meeting happens, Cllr Phil Davies has a meeting of his Cabinet (called a briefing) which the officers are expected to attend (usually in what’s called the Cabinet Briefing Room behind locked doors at Wallasey Town Hall) where he goes through the entire agenda and matters are discussed in private.

Interestingly, this report shows that the Cabinet briefing is used as a filter and the Cabinet briefing can be used to change the reports that are later published. I presume this practice of writing reports by committee leads to some bits being watered down.

There are also four compulsory steps a report has to go through before the press or public see it. It seems reports have to be run by legal (which makes me laugh considering some of the legal howlers I’ve pointed out on this blog over the years), human resources (which is understandable as many of the decisions are going to have HR implications), finance (again understandable) and the Head of Service (which has been standard practice for years anyway). As there are vacant heads of service posts, in that situation the relevant strategic director signs it off.

However there is one very important group of people this all leaves out, the public. Anyone involved with politics will of course comment and say that the last group of people involved in political decisions are the public.

This is what Wirral Council’s constitution states about decision-making:

13.2 Principles of decision-making
All decisions of the Council will be made in accordance with the following principles:

(i) proportionality (i.e. the action must be proportionate to the desired outcome);
(ii) due consultation and the consideration of professional advice from officers;
(iii) respect for human rights;
(iv) a presumption in favour of openness;
(v) clarity of aims and desired outcomes; and
(vi) Wednesbury* reasonableness (i.e. the decision must not be so unreasonable that no reasonable Council could have reached it, having taken into account all relevant considerations, and having ignored irrelevant considerations).

*This piece is too short to provide an in-depth description of the legal definition but it refers to the case law definition of "unreasonable" which is a reference to a Court of Appeal case from 1947, [1947] 2 All ER 680, [1947] EWCA Civ 1, [1948] 1 KB 223, [1948] KB 223.

Every policy disaster (whether the library closure fiasco which resulted in a public inquiry or half a dozen others I could mention here) has resulted because the public weren’t involved (or were involved/consulted but politely ignored by politicians and officers who had the arrogance to think they knew better) and/or the above principles weren’t followed.

Let’s take the Fort Perch Rock car park charging U-turn as an example. Principle (ii) above states the "consideration of professional advice from officers" yet officers didn’t tell them that if they started charging at Fort Perch Rock car park then the lease the Council had for the Marine Point development would lead to charges at hundreds of spaces at the other currently free car parks.

No, it fell to a local blogger to publish the pages of the lease, a large petition against it of thousands of people and a campaign against the charges from a former Conservative councillor in the marginal seat of New Brighton. This was despite Labour’s backbench councillors warning the Cabinet at at least one public meeting not to go ahead with plans for charging.

Next week, the Transformation and Resources Committee will discuss the high-profile issue of a fire station in Saughall Massie. At the Merseyside Fire and Rescue Authority meeting earlier this year where the decision was made, the petition organiser was given five minutes to speak and a delegation from the Saughall Massie Conservation Society was also given the opportunity to speak for up to five minutes.

Yes, you are probably going to say, this ties in with (iii) above, respect for human rights as article 21, which Wirral Council signed up to when Cllr Adrian Jones was Mayor quite clearly states

(1) Everyone has the right to take part in the government of his country, directly or through freely chosen representatives.
(2) Everyone has the right of equal access to public service in his country.
(3) The will of the people shall be the basis of the authority of government; this will shall be expressed in periodic and genuine elections which shall be by universal and equal suffrage and shall be held by secret vote or by equivalent free voting procedures.
 

Notice the importance of that word directly or through freely chosen representatives (that is politicians).

The other public bodies I report on either have mechanisms written into their constitution (for example Liverpool City Council has a regular public question time slot at many of its meetings and I’ve mentioned the mechanisms that Merseyside Fire and Rescue Authority has), so people can exercise their rights at public meetings and have their say before the decision is made.

At Wirral Council the public at public meetings get frustrated and heckle instead (then get told to shut up by the Chair or clear off which does show some politicians’ attitude towards the public outside of elections).

The Chair at last night’s meeting (despite his wish to get home in time to watch Coronation Street) tried to let many taxi drivers have their say (some more than once) before the decision to consult on increasing hackney carriage fares was made (if a decision is made following the consultation it’ll mean fares go up in time for Christmas).

Yet if there’s one point I am trying to make from this maybe boring piece about Wirral’s politics, it’s that the public should be more involved and you don’t encourage the public to turn up by expecting them to sit through meetings in silence and not have any influence over decisions that are going to affect their lives.

At the moment taxi drivers have more influence over decisions as there is a Joint Consultative Committee that meets regularly behind closed doors than I do over say Wirral Council’s filming of public meetings policy.

Yes, this probably sounds like as to why it’s a good idea to have politicians, or for the kind of public interest journalism I spend a lot of time doing but the point I’m trying to get at is one that Wirral’s political system doesn’t seem to have quite grasped which is "the will of the people shall be the basis of the authority of government".

At Wirral Council this seems to have morphed in the past to "the will of the officers shall be the basis of the authority of government" (and we expect politicians to rubber stamp decisions we refer to them).

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Why did Wirral Council spend £48,384 on a London-based barrister in benefits battle with landlord?

Why did Wirral Council spend £48,384 on a London-based barrister in benefits battle with landlord?

                                                          

ICO Information Commissioner's Office logo
ICO Information Commissioner’s Office logo

For those who don’t remember Wirral Council’s motto is "by faith and foresight" and last night’s meeting of Wirral Council’s Audit and Risk Management Commmittee (which you can watch in full by following that link) had a number of comments and queries by councillors about why when Wirral Council seeks legal advice from outside third parties, the usual procurement rules don’t apply.

By strange coincidence, that very day and an hour before the Audit and Risk Management Committee started, Wirral Council finally responded (in part) to a Freedom of Information Act request of mine made on the 23rd March 2015 for a two-page fee note for the services of a barrister called Miss Jennifer Richards QC.

Many justifications were made at the Audit and Risk Management Committee meeting for Wirral Council’s legal expenditure, such as paying for the best advice. Miss Jennifer Richards QC’s services came with a price tag of £48,384 so I’m not surprised that Wirral Council spent 8 months wasting my time and theirs by arguing about whether I should have access to this (until the Information Commissioner’s Office issued decision notice FS50585536) which I can summarise in the following sentence.

Stop being silly Wirral Council and just give John a copy of the invoices within 35 days (or appeal within 28 days) otherwise it may be dealt with as contempt of court)!

Although this may seem for a small amount of legal expenditure in the grand scheme of things, it’s just one of a series of legal expenses for Wirral Council in a case that ended up in the Court of Appeal and is in some ways connected to the Anna Klonowski Associates/Martin Morton issues and Wirral Council’s Department of Adult Social Services.

You can read that final Court of Appeal judgement online for yourself ([2012] AACR 37, [2012] EWCA Civ 84, [2012] PTSR 1221, [2012] WLR(D) 31), but this was an appeal from an earlier decision to the Upper Tribunal of the Administrative Appeals Chamber, see [2011] UKUT 44 (AAC).

As referred to in that later decision it was about “a protracted dispute between Salisbury Independent Living (“SIL”) and Wirral Metropolitan Borough Council (“the local authority”) concerning housing benefit claimed by SIL to be due to its tenants and former tenants.

I have mentioned in a question at a public meeting to a councillor before that there is a cost to the public purse in legal expenses for Wirral Council not resolving issues and then these matters ending up being adjudicated by the courts.

In the interests of openness and transparency I am reproducing the invoice supplied below in full (the scan with bits blacked out by Wirral Council is of a rather poor quality).

Thirty Nine Essex Street (or 39 Essex Chambers) is the name of the London-based chamber of barristers. Weightmans is a firm of solicitors that does a lot of work for Wirral Council.

DX stands for document exchange (it’s a system that legal practices use for exchanging documents). DWP stands for Department for Work and Pensions. It seems this invoice is for the earlier Upper Tribunal stage of the legal proceedings (I hate to think what the total legal expenditure comes to for this whole case as that decision was then appealed by Wirral Council to the Court of Appeal).

Yes there are typos in the invoice (which I’ve left in the copy below). If I’ve made any mistakes in typing it up compared to the original please leave a comment pointing out where I’ve made a mistake.

In converting it from print to HTML I’ve tried to keep the formatting as close to the printed invoice as possible.


ThirtyNine
ESSEX STREET

LONDON WC2R 3AT

Telephone: 0208 7832 1111 Facsimile: 020 7353 3978 DX: LDE 298

E mail: clerks@39essex.com

Professional Fees of Miss Jennifer Richards Q.C
VAT Registration No: 606103782



DX: 718100 LIVERPOOL 16
Weightmans LLP (Liverpool)
India Buildings
Water Street
Liverpool
L2 0GA
England
 Your Ref:          MHL/186279/97
Case Ref:          174541
Page: 1/2


Various tenants of Salisbury Independent Living -v- Wirral Metropolitan Borough Council – Upper Tier Tribunal

Court: Upper Tribunal CH/1528/2012



DateDescription of WorkFees VAT
27 Feb 2012Drafting application for permission to appeal from First tier Tribunal to Upper Tribunal£1,650.00330.00
03 Apr 2012Drafting Grounds of Appeal to Upper Tribunal
 
£2,200.00440.00
04 Jul 2012Perusal and Consideration of various documents, emails, correspondence etc and advising by telephone£1,650.00330.00
04 Sep 2012Perusal and Consideration of submissions of Department for work and Pensions filed in support of Upper Tribunal appeal and adsvising by telephone£600.00120.00
06 Sep 2012Preparation for and Advising by Telephone re order of XXXXXXXXXXXX DWP and progress of Upper Tribunal£70.0014.00
10 Sep 2012Perusal and Consideration of draft directions and drafting position statement and further directions for Upper Tribunal = 4 hours£1,100.00220.00
13 Sep 2012Preparation For and Attending Hearing
 
£2,500500.00
25 Oct 2012Between 18th October and today’s date considering bundles of evidence and identifying documents for inclusion in the bundle for the Upper Tribunal£3,000.00600.00
31 Dec 2012Reviewing Trial bundle and drafting skeleton argument
 
£6,325.001265.00
07 Feb 2013Perusal and Consideration of transcripts FTT proceedings and proposed amendments/ corrections
 
£4,125.00825.00

     Note: items marked ‘*’ are previously unbilled




















Rate Fees V.A.T. TOTAL FEES C/Fwd C/Fwd
20.00% £40320.00 £8064.00 TOTAL VAT C/Fwd
TOTAL DUE C/Fwd
Rendered on 21 Feb 2013, 22 Feb 2013, 05 Mar 2013, 28 Mar 2013, 01 May 2013, 03 May 2013, 13 Jun 2013
THIS IS NOT A TAX INVOICE
 
04 Jul 2013
 

Please make payment to the following account: XXXXXXXXXXXX

XXXXXXXXXXXX
XXXXXXXXXXXX
We also accept payment by cheque to XXXXXXXXXXXX
Please quote case number and barrister name on BACS payment and notify us of bank tranXXXXXXXXXXXX



ThirtyNine
ESSEX STREET

LONDON WC2R 3AT

Telephone: 0208 7832 1111 Facsimile: 020 7353 3978 DX: LDE 298

E mail: clerks@39essex.com

Professional Fees of Miss Jennifer Richards Q.C
VAT Registration No: 606103782



DX: 718100 LIVERPOOL 16
Weightmans LLP (Liverpool)
India Buildings
Water Street
Liverpool
L2 0GA
England
 Your Ref:          MHL/186279/97
Case Ref:          174541
Page: 2/2


Various tenants of Salisbury Independent Living -v- Wirral Metropolitan Borough Council – Upper Tier Tribunal

Court: Upper Tribunal CH/1528/2012



DateDescription of WorkFees VAT
25 Feb 2013Preparation For and Attending Hearing
Preparation beofre trial 30 hours
Preparation after court 4 hours
Full day in court
£12,500.002500.00
26 Feb 2013Refresher
Ful;l day in court
Preparation 4 hours after court
£2,000.00400.00
27 Feb 2013Refresher
Full day in court
Preparation 1 hour
£2,000.00400.00
04 Sep 2012Perusal and Consideration of Respondents’ Post Hearing Note and Drafting Note in Response
 
£600.00120.00
     Note: items marked ‘*’ are previously unbilled




















Rate Fees V.A.T. TOTAL FEES £40,320.00 £8,064.00
20.00% £40320.00 £8064.00 TOTAL VAT £8,064.00
TOTAL DUE £48,384.00
Rendered on 21 Feb 2013, 22 Feb 2013, 05 Mar 2013, 28 Mar 2013, 01 May 2013, 03 May 2013, 13 Jun 2013
THIS IS NOT A TAX INVOICE
 
04 Jul 2013
 

Please make payment to the following account: XXXXXXXXXXXX

XXXXXXXXXXXX
XXXXXXXXXXXX
We also accept payment by cheque payable to XXXXXXXXXXXX
Please quote case number and barrister name on BACS payment and notify us of bank transfer byXXXXXXXXXXXX

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Wirral Council’s Standards Committee agrees recommendation on changes to notices of motion procedural rules

Wirral Council’s Standards Committee agrees recommendation on changes to notices of motion procedural rules

                                                            

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Wirral Council’s Standards and Constitutional Oversight Committee meeting held on the 23rd November 2015

Surjit Tour explains to councillors the effect of proposed changes to procedural rules at a meeting of Wirral Council's Standards and Constitutional Oversight Committee 23rd November 2015
Surjit Tour explains to councillors the effect of proposed changes to procedural rules at a meeting of Wirral Council’s Standards and Constitutional Oversight Committee 23rd November 2015

One of the changes agreed by councillors at last night’s meeting of Wirral Council’s Standards and Constitutional Oversight Committee was a change to the protocol for dealing with referred notices of motion. Referred notices of motion are notices of motion that have been sent by Wirral Council’s Mayor to one of Wirral Council’s committees to debate instead of being debated at a Council meeting.

The changes to time limits on speeches for the proposer (5 minutes) and right of reply (3 minutes) were to bring the time limits in line with new time limits proposed for Council meetings.

However an extra category of speaker has been added. This is described in the new rules as "any other person" and they will have three minutes to speak. "Any other person" is described as "at the discretion of the Chairperson, other persons with expertise on the subject of the Motion may be invited to attend the meeting at which it is to be considered"

These new rules won’t apply to next week’s high-profile Notice of Motion Proposal for a fire station on green belt land in Saughall Massie to be discussed by councillors on Wirral Council’s Regeneration and Environment Policy and Performance Committee at a public meeting starting at 6.00pm on the 2nd December 2015 in Committee Room 1, Wallasey Town Hall. This is because the recommendation by the Standards and Constitutional Oversight Committee (if agreed by Council on the 14th December) won’t come into effect until the 15th December 2015. At a previous meeting of the Regeneration and Environment Committee councillors wanted to ask questions of Merseyside Fire and Rescue Service officers about why they wanted to build a new fire station in Saughall Massie.

Instead the rules agreed earlier in the year by the Coordinating Committee will apply (the part on referred notices of motion starts at the top of page 6).

Hopefully this won’t cause a decision on the issue to be deferred yet again!

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Wirral’s councillors will tonight discuss changes to Council meetings, call ins and how decisions are made

Wirral’s councillors will tonight discuss changes to Council meetings, call ins and how decisions are made

                                                                      

Council (Wirral Council) 19th November 2015 One of the meetings that would change if proposals are agreed tonight
Council (Wirral Council) 19th November 2015 One of the meetings that would change if proposals are agreed tonight

Wirral Council’s Standards and Constitutional Oversight Committee will discuss proposals tonight to change the way Wirral Council makes decisions.

If these proposals are agreed by councillors, then in future unless objections to traffic regulation orders reach a threshold of fifteen objections or a petition of twenty-five or more different households, then it won’t be discussed at a public meeting of the Highways and Traffic Representation Panel. However ward councillors for the area that the proposed traffic regulation order relates to, will be able to request that the matter is decided by councillors even if the number of objections don’t reach the threshold. If the objections don’t reach the new threshold and a ward councillor doesn’t ask that councillors on the Highways and Traffic Representation Panel make a recommendation on it, then the decision will instead be made by the Head of Service for Environment and Regulation after consulting with the Cabinet Member for Highways.

Changes are proposed to the way meetings to decide on call-ins of decisions are dealt with. Instead of a committee of fifteen councillors deciding on call-ins, there will be a panel of nine councillors (5 Labour councillors, 3 Conservative councillors and 1 Lib Dem councillor). An earlier start time of 4.00 pm for call in meetings is suggested. Adjournments will only be allowed for seven working days and if this is not possible the call-in will be re-heard from the beginning.

Proposals affecting Council meetings are also on the agenda. The start time will be brought forward to 6.00 pm and the guillotine put back to 9.15 pm. The time for questions to councillors who are chairs of committees or on the Cabinet will be reduced from an hour and a half to thirty minutes. This is to allow more time during Council meetings for councillors to debate notices of motion. Further details on the changes and the reasons behind them (including some I haven’t mentioned here) can be found on Wirral Council’s website. If agreed tonight, the changes will be recommended for approval at the Council meeting on the 14th December 2015.

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EXCLUSIVE: Leaked minutes of Merseyside Pension Fund’s Investment Monitoring Working Party

EXCLUSIVE: Leaked minutes of Merseyside Pension Fund’s Investment Monitoring Working Party

                                                              

Pensions Committee (Merseyside Pension Fund) 16th November 2015 L to R Peter Wallach, Cllr Paul Doughty (Chair)
Pensions Committee (Merseyside Pension Fund) 16th November 2015 L to R Peter Wallach, Cllr Paul Doughty (Chair)

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The public meeting of Wirral Council’s Pensions Committee held on the 16th November 2015

I will start this piece by declaring that I have a close family relative paid a pension by the Merseyside Pension Fund.

Monday night’s public meeting of Wirral Council’s Pensions Committee (you can view the video above) chucked out the public for two agenda items (issues about the tender exercise for CB Richard Ellis Capital Advisers Ltd (CBRE) and the minutes of the Investment Monitoring Working Party meeting of the 17th September 2015 and the 8th October 2015.

Originally one of the governance policies agreed by councillors that run the Merseyside Pension Fund stated that minutes of the Investment Monitoring Working Party and Governance Working Party should be published. I did query a while back why they weren’t, which led to the situation now where the minutes are split on the agenda and the public gets to see which councillors turned up, who sent their apologies and what the declarations of interest are.

However the rest of the minutes of those meetings (despite it being councillors that sit on these committees), councillors decide to keep the rest of the minutes a secret (on the advice of Wirral Council officers).

As it states on Wirral Council’s website the law states “Information is exempt to the extent that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information” and the reason given on Monday evening was “Information relating to the financial or business affairs of any particular person (including the authority holding that information)”.

Strictly speaking politicians are supposed to carry out their own public interest test based on the above and I suppose I should kick up more of a fuss at this point of the meeting if they’re about to chuck us out for no reason.

The Merseyside Pension Fund is a large pension fund with billions of pounds invested. Of course as a member of the press I’m going to take a view that it’s wrong for the public sector to be engaging in these inappropriate levels of secrecy when the total number of people in the fund comes to over 100,000.

Actually persuading politicians to actually go against an officer recommendation on this though is probably beyond my powers of persuasion. So here is a leak instead of the Investment Monitoring Working Party minutes of 8th October 2015. Think of all the money I’ve saved Wirral Council by not making a FOI request for this (although no doubt they will now carry out another leak investigation!)

I’ve corrected Cllr Ann McLachlan’s name in section 1 which was misspelt as McLachalan.

NOT FOR PUBLICATION
By virtue of paragraph(s) 3 of Part 1 of Schedule 12A
of the Local Government Act 1972.

EXEMPT APPENDIX 2

Minutes of the Investment Monitoring Working Party,

8 October 2015

In attendance:

Councillor Ann McLachlan (WBC) (Vice Chair) Peter Wallach (Head of MPF)
Councillor Geoffrey Watt (WBC) Joe Blott (Strategic Director Transformation and Resources
Councillor Treena Johnson (WBC) Noel Mills (Independent Adviser)
Rohan Worrall (Independent Adviser)
Councillor Paulette Lapin (SC) Louise-Paul Hill (Aon Hewitt)
Emma Jones (PA to Head of Pension Fund)
 

Apologies were received from:

Councillor Paul Doughty (WBC) Councillor Brian Kenny (WBC)
Councillor Cherry Povall (WBC) Councillor George Davies (WBC)
Councillor John Fulham (SHC) Councillor Adrian Jones (WBC)
 

Declarations of Interest

 

Councillor Geoffrey Watt declared an interest due to a relation being a beneficiary of the Merseyside Pension Fund.

1. Introduction

Cllr Ann McLachlan (AM) chaired the meeting on behalf of Cllr Paul Doughty.

Action Points

None

2. External Manager Presentation

2.1 M&G Investments

Matthew Vaight (MV), Fund Manager and Orla Haughey (OH), Client Director, presented their global Emerging Markets Mandate to IMWP. Their agenda covered their mandate, market overview, a re-cap on their process, performance and finally their funding positioning.

Merseyside Pension Fund current holdings are valued at £112.8m. They briefed members on their bottom-up stock picking style and currently hold 50-70 stocks on behalf of the Fund.

A discussion ensued with regard to the risk in developed markets compared to emerging markets but MV argued that although a portfolio could remain cautious there are improving fundamentals in countries such as Taiwan for example which still offer opportunities as markets on cheaper valuations.

Specific risks of stocks and value was examined and how specific risks can be stock specific rather than country specific. However the sharp currency devaluations in some markets such as Brazil and Russia over the past 12 months had hit the fund’s performance where stock fundamentals had been overridden by the market’s performance. Oil prices were discussed and how this affected the markets. To further mitigate risks M&G said they have also developed a framework to look at currency which will further aid stock selection.

Questions were raised with regard to governance and M&G clarified how they work with particular companies and examine management within the organisation closely.

Ethical investments were discussed and M&G clarified they have no exposure in tobacco products or defence. M&G explained their view is that good corporate governance is an indication of quality management and is a good indicator of how a company is run. It combined to make an attractive investment and is integral to their analysis of a company.

Action points

None.

3. External Manager Presentation part 2

3.1 Maple-Brown Abbott

Geoff Bazzan (GB), Head of Asia Pacific Equities, and Susan Douse (SD), European Marketing and Client Services, presented at IMWP an overview of their organisation. They spoke about their value style and investment process and philosophy. They looked at their total performance up to 31 August 2015 and the major contributors and detractors during that period.

A discussion ensued with regard to their cyclical turn down and the classic value trap over the long term. The Chinese economy was discussed and the fact that GB believes there is still opportunities in China but be wary of companies exposed to too much US debt.

Maple-Brown Abbott’s asset allocation and in particular their specific stock selection was debated and how this has impacted on performance. GB asserted that there has been a slight improvement in performance and hopes to see this improving in the future. GB expressed the view that exposure of Chinese stocks will improve.

Maple-Brown Abbott were asked about their ethical investments and it was asserted that restrictions are imposed on companies but in the broader portfolio they do not screen out but look at the sustainability over the long term and subsequently ethical questions come into play.

Action points

None.

External Manager Presentation part 3

4.1 Amundi

Mickaël Tricot (MT), Head of Emerging Markets Equities and Peter Brackets (PB) presented the Amundi Actions Emergent Team, Process and Portfolio Review to the IMWP. MT gave Merseyside’s portfolio’s investment summary and talked about the team structure and its resources. MT explained that they combined a top-down and bottom-up featured approach which supported a high quality stock selection process which was well suited for emerging markets with higher volatility.

Ethical investments were discussed and MT asserted this was very subjective but they coupled this with knowing the companies and looking carefully at aspects of the organisation thoroughly. MT explained that although aspects of ethical investments were not mandatory, companies were coming under pressure from the stock exchange to comply with guidelines. This was becoming very important and companies are finding it beneficial to conform.

The question of how the stock exchange can apply pressure was discussed and it was stressed that there was a common current exchange of disclosure and reporting which raises issues when concerns are expressed. It was also argued that collaboration and initiatives within global firms have a consistent framework which can put pressure on managers to comply. There are also the UN PRI principles which encourage disclosure.

Amundi’s exposure in Brazil and currencies was discussed and value versus growth was debated further. Amundi noted they were always looking at changing their approach to look at more complex valuations by using supplementary tools and databases to help with analysis.

Action points

None.

5.

5.1 Noting items

None

5.2 Action Points

None

5.3 Summary of Recommendations

None

5.4 Discussion Points (including any other business)

None

Date of Next Meeting

Thursday 10 December 2015 at 10.00 am, 6th floor, Cunard Building.

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