{Disestablished Committee} - Social Strategy Overview and Scrutiny Committee

Read the Minutes

Present:

• Councillor Karney - In the Chair
• Councillors Cooley, Cowan, Donaldson, Evans, Hitchen, Isherwood, Barbara O'Neil, Royle, Whitmore, Williams and Wilmott 

Also Present:

• Councillor Battle, Deputy Leader 
• Councillor Swannick, Executive Member for Planning and Environment 

SS/06/01 Minutes

Decision

To approve the minutes of the meeting held on 14 December 2005 as a correct record.

SS/06/02 Consumer Championing

Members welcomed Peter Sharples from the Manchester Evening News. He gave the Committee an insight into the range of topics raised by readers in relation to the financial services industry. In many cases simple common sense was necessary on the part of consumers to strip away the window dressing attached to many financial products to gain a proper understanding of what was on offer, the industry was adept however at packaging products in an attractive, and often misleading way.

The industry was however conscious of the need to demonstrate that it was responsible and is addressing issues in relation to the more unattractive activities of loan sharks and the problems associated with store credit cards. The National Consumer Council was also championing these issues and some good work was also being done by individual organisations such as the Birmingham Loan Shark Unit.

Readers raised many issues about the operation of doorstep lenders which were essentially unregulated. Reliance on doorstep lending was deep rooted in many communities despite the interest rates being exorbitant and the establishment of credit unions was an ideal local alternative, and he suggested that more could be done to publicise the success of credit unions and to support their wider development.

Many letters were received from readers who have had bad experiences with store debt, often built up through injudicious use of store credit cards with excessive interest rates. As a result of action taken by the Competition Commission there had been a reduction in the interest rates on store cards prior to Christmas, and, whilst this was a move in the right direction much more remained to be done.

There was evidence of the financial services industry recognising its poor image problems and seeking to address examples of worst practice, but as one loophole was closed the more unscrupulous operators were adept at exploiting new ones. However, it was not always the sharp operators who were the subject of most complaints, indeed many complaints originated from readers who were concerned that they had been badly advised about financial products by salesmen/women acting on behalf of reputable companies.

In this respect the selling of interest only mortgages stored up significant problems for the future. In terms of problems faced by pensioners most of the issues raised by older readers were in relation to the withdrawal of post office services, unwillingness to use ATM facilities on grounds of safety, difficulty in remembering PIN numbers, and difficulties encountered in opening basic bank accounts.

Taking up the issues that Mr Sharples had raised about credit unions, a member referred to the work commenced previously by the Financial Services Working Group to promote and support the development of credit unions in all areas of the city, and she suggested that this Group should be reconvened under the chairship of the Deputy Leader of the Council.

Members also highlighted the need to ensure that young people leaving school had sufficient training in financial literacy to equip them to deal with the financial aspects of student life or working life and the aggressive marketing of banks and finance house targeted at young people, and urged the Director of Children's Services to ensure that financial literacy found proper expression in some key element of the school curriculum.

The Chair indicated that the fact that the UK had two-thirds of all the personal debt in the European Community was a sobering statistic, he suggested that there was a national pre-disposition to personal debt, and an generation that emerged from university with accrued student debt and appeared to have no concerns about increasing that debt level through life

Decision

1. To thank Peter Sharples for attending the meeting and for sharing his insight and experience of some of the financial issues raised by Manchester residents.

2. To reconvene the Financial Services Working Group to promote and support the development of credit unions in all areas of the city, under the chair of Councillor Battle as Deputy Leader of the Council. To authorise the Chair to appoint the other members of the Group.

3. To note the future work to be undertaken by the Treasury Select Committee and to request the officers to keep the Committee up to date with developments on all these areas.

4. To highlight the need to ensure that young people leaving school have sufficient training in financial literacy to equip them to deal with the financial aspects of student life or working life and the aggressive marketing of banks and finance house targeted at young people, and to urge the Director of Children's Services to ensure that financial literacy finds proper expression in some key element of every schools' curriculum.

SS/06/03 Fireworks

The Committee received an update on the outcome of the multi-agency approach to fireworks and bonfire control in the city. It was noted that overall the campaign had been successful and even more agencies were involved. Subjective feedback was that the run up to Bonfire Night was quiet but adherence to the midnight curfew would need to be more rigorously enforced next year, particularly as Bonfire Night would be on a Sunday.

Members welcomed the excellent family orientated events held in the parks at Halloween and praised the work of the clean up teams who had quickly restored the parks after each event. The tremendous turnout for these events supported the case to build budgets to support more family-friendly events to be staged in more park venues in the future.

Reference was made to the eradication of unauthorised sales from vans, though it was suggested that these activities were still occurring in Trafford and officers were asked to explore the potential for joint working with neighbouring authorities through AGMA to secure a common approach

Decision

To note the report and to thank the officers and members involved in securing a quieter and safer bonfire season in the city.

SS/06/04 Licensing Act

Prior to the start of the meeting Members hosted a celebration event for all officers and members who had been directly involved with the implementation of the new Licensing Act. Members received an update on the implementation of the Licensing Act and noted the progress of premises inspections and the pro-activity of enforcement action from the 700 visits made to premises.

A member stressed the importance that any representations to government in relation to those areas where it was considered local councillors' powers needed to be further strengthened were made on a cross-party basis.

Decision

To note the progress on the implementation of the Licensing Act.

SS/06/05 Respect Agenda

The Deputy Chief Executive (Performance) gave members a verbal update following the launch by the Prime Minister of the Government's new Respect Agenda. He highlighted the key points and copies of the launch documents were circulated to Members.

The Chair requested that a report be submitted to the next meeting of the Committee identifying how the key elements of the Respect Agenda fitted into existing Council strategies. Members suggested that to coincide with the launch of the Respect Agenda, and to celebrate the 10th anniversary of Manchester City Council's Zero Tolerance campaign against domestic violence, consideration should be given to re-launching the Zero Tolerance Campaign. The Chair invited members who wanted a respect programme in their areas to contact him.

Decision

1. To note the launch of the Respect Agenda and to request a report at the next meeting.

2. To note the role of this Committee in the oversight of the Respect Action Plan

3. To request officers to consider the re-launch of the Zero Tolerance Campaign as part of the Respect Agenda.