Preferred Business model for potential Highland ALO chosen

15th November 2010

Preparations for the potential delivery of The Highland Council's Community Learning and leisure Services through an arms length organisation took a further step forward last week.

Members of the Education, Culture and Sport Committee agreed that the preferred business model for any arms length organisation which might be set up by the Council would be a company limited by guarantee with charitable status and with the option of a trading subsidiary.

In order to develop a business case on whether or not to proceed to an arms length organisation members also agreed that:

the board of the company would comprise four Council and eight independent (non Councillor) representatives; and
places for independent representatives would be advertised and that all board members be selected on the basis of their contribution to an agreed set of skills required by the Board.

Permission for the Council to develop a draft application to the charity regulator was also approved so that the Council can seek advice on the potential of such an arms length organisation achieving charitable status.

Chairman of The Highland Council's Education, Culture and Sport Committee Councillor Bill Fernie said: "The final decision on whether or not to move to an arms length organisation for the delivery of Community Learning and Leisure Services will not be made until the March 2011 ECS Committee.

"The key issues at present are to know if the business model proposed for an arms length organisation would receive charitable status. The decisions we have made today will allow officers to create a business model that will enable members to compare the status quo with a potential different organisation in March next year."