{Disestablished Committee} - Social Strategy Overview and Scrutiny Committee

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Present:

• Councillor Karney - In the Chair 
• Councillors Cowan, Hitchen, Isherwood, N. Murphy, Royle, Watson, Whitmore, Williams and Wilmott 

Also Present:

• Councillor Hackett, Executive Member for Culture and Leisure
• Councillor Jeff Smith, Executive Member for Children's Services

SS/06/33 Minutes

Decision

To approve the minutes of the meeting held on 21 June 2006 as a correct record.

SS/06/34 Consumer Championing Store Card Credit

Tony Gooch who had worked closely with the Competition Commission on their recent inquiry into Store Card Credit Services attended the meeting and engaged in a discussion with members about the terms of reference for the inquiry, the approach that the Commission had adopted with the industry, and the reasons for its final recommendations. The Committee noted that the Commission was to publish an Order on 24 July under the Enterprise Act (which would have legal effect 9 months later) to implement the recommendations in its report. This Order would ensure that information provided to customers on their statements was transparent in terms of the APR being charged (if over 25% APR); openly estimating the amount of interest payable in the following month if only the minimum payment is made against the overall debt; information about how to cancel insurance cover arrangements, and facilities to make direct debit payments simpler.

Members indicated that whilst the remedies proposed by the Competition Commission went some way to enhancing consumer protection in relation to store cards there remained many areas of concern, including: ·

payment protection insurance was still too high · 
there was no requirement to allow the consumer to take away the application form to consider the terms of the offer · 
there was no "cooling off" period if the consumer actually purchased and took possession of goods at the point of applying for the store card. the trigger for the "wealth warning" which was to be included on the monthly statements where interest rates were 25% APR or above was overly generous given that the average credit card rate is around 15% APR. Members felt that the Commission had 'feather-bedded' the industry to too great a degree and that the interests of consumers had been compromised by recommendations that paid too great heed to what the industry would be prepared to accept quietly. · 
Lack of training of store staff in relation to the sales process for store cards, including information on the financial details of store cards and the associated insurance products sole alongside them 
The Chair challenged the Commission's view that there they had found no evidence of customers being put under undue pressure to enter into store credit agreements at the point of sale, which he suggested beggared belief. He suggested that there was a sufficient body of evidence to demonstrate the unscrupulous way that high street retailers were aggressively targeting young people and students for this purpose, and the unwillingness by any of the local major high street retailers to take up his invitation to openly participate in the discussion at this meeting amply demonstrated that there was a case to answer.

The Deputy Chief Executive (Performance) suggested that given members' continued concerns that not enough was being done to protect the rights of consumers in this area the Council should give consideration to collaborating with other core cities in working together to exert pressure on the Competition Commission to do more. He undertook to take soundings from other authorities and to report back to a future meeting of the Committee.

Janet Riley, from Manchester Advice stated that Manchester Advice had launched a credit awareness campaign earlier in the year and that she would discuss with the Deputy Chief Executive, ways of producing advice leaflets specifically targeted at young people in the city about store cards. She also offered to produce a report for the next meeting on the basis of a case history involving the recovery of monies from a company known as the Student Support Agency, which although supported by schools was an ordinary money lending company charging extremely high interest rates to families on low incomes. The Chair indicated that this report would be a useful way of ensuring that the issues were properly flagged up with Manchester schools.

Decision

To thank Tony Gooch for his presentation and for his willingness to enter into an open and forthright discussion on these matters. The Committee continues to be concerned that the rights of consumers are not being best served and that many high street retailers are targeting vulnerable young people, new to the financial services environment, with products that they, and very often the staff charged with selling them, have little understanding of. The Committee will continue to campaign for consumer's rights and will investigate collaborative working with other core cities to press the Commission and retailers to do more to put consumers' interests first.

SS/06/35 Summer holiday activities for children and young people in 2006

A report updating members on the planning for summer programmes and activities for young people in the City was considered.

Members congratulated the officers on the breadth and scope of the programme being offered and the balance struck between physical and craft/cultural events. One member raised a concern that two of the scheduled activities were located outside the city boundary (Gorse Hill Studios in Stretford and the Water Adventure Centre in Droylsden) Officers indicated that the number of extra-district venues had been significantly reduced from previous years, and undertook to provide a briefing note for members detailing the reasons why these activities were outside Manchester.

Decision

To welcome the report and request an update report detailing the uptake of individual events in the autumn.

SS/06/36 Cultural Regeneration Officers

A report informing Members about the role of the Area Cultural Regeneration Officers was received. However, after discussion with the presenting officer, it was felt that contact needed to have taken place between cultural regeneration officers and ward councillors concerning ward and cultural strategy priorities before members were able to properly test the effectiveness of local delivery mechanisms.

Decision

To request a report in October when officers will have had opportunity to meet with ward councillors to discuss ward and cultural strategy priorities.

SS/06/37 Manchester Adult Education Services - 2006/7 curriculum offer and beyond

A report concerning the future of Manchester Adult Education Services was submitted. The Deputy Chief Executive (Regeneration) presented details of the options for the 2006/07 MAES curriculum offer and the issues for decision with regard to the long-term future of the service.

It was noted that there were two options for consideration: ·

Option 1 - design a service which meets the LSC's contract for 2006/07, or ·

Option 2 - design a service which meets the LSC's contract for 2006/07 and which is extended to meet Council additional objectives

The Committee noted that Option 2 would enable the Council to meeting City priorities by investing in adult education; add value through the Council funding the skills and social agenda; restore many of the leisure courses and reduce the impact on staff.

Members raised concerns about the "learning for pleasure" and felt that this had a lower priority than the 16 - 19 age priorities. They felt that although the "learning for pleasure" was principally aimed at older people it should not be downgraded. The Deputy Chief Executive acknowledged this and confirmed that if Option 2 was chosen there would be more funding available to increase the number of courses available.

One member expressed concern about the raising of crèche fees and said that this would be directly prejudicial to many people who were already socially and financially disadvantaged and for whom further study offered an opportunity to access the employment market at higher skills levels. The Executive Member for Culture and Leisure explained that there were access funds available to help support access to childcare and transport.

Decision

To endorse the adoption of Option 2 and the aim of better utilising existing resources in a way that best meets the needs of Manchester residents.

SS/06/38 Corporate Plan

The Committee considered the Council's Corporate Plan 2006/07 which had been jointly developed with officers from every service across the Council. The Deputy Chief Executive (Performance) drew Members' attention to the key objectives in the plan which were considered to be of particular relevance to the Social Strategy Overview and Scrutiny Committee and suggested that these objectives should be integrated into the Committee's work programme.

Decision

To note the Plan and the appropriate elements that should be integrated into the Committee's work programme.