The deputy leader of the city council has made a pledge saying that she will never allow a repeat of the financial crisis and poor governance at Robin Hood Energy.
Councillor Sally Longford told an extraordinary meeting of the full council that mistakes will be learned, and the council would be turning over a new leaf.
It comes after a highly-critical report said the city council had shown ‘institutional blindness’ to the financial failings at the company.
It has had to write off £24 million in debt, at a time when council finances are under enormous strain due in part to COVID.
Councillor Longford, who represents Lenton and Wollaton East for Labour said: “I am proud to represent the citizens of Nottingham as deputy leader of the council.
“I am sorry we fell short of the standards which are expected in our governance of this company, and will ensure we use this action plan to turn a new leaf, and to provide assurance to the people of this city that we can learn from our mistakes and we will never again be in this position.”
That action plan was formally approved today, but opposition councillors raised concerns that it does not go far enough, and that there was a danger lessons would not be learned.
The leader of the Conservative group, Andrew Rule, tabled an amendment to the plan which was designed to increase scrutiny of all council-owned companies.
Among other measures, it would have meant councillors who sit on the boards of council-owned companies could not be on the three council committees designed to scrutinise them.
Portfolio holders would also have been banned from sitting on the boards of companies which involved their portfolio.
This was not accepted, with Labour voting against the amendment.
At the beginning of the meeting, 22 Labour councillors declared an interest as being on the board of – or being a nominated shareholder of – at least one council-owned company.
The chairman of the audit committee Steve Battlemuch – who is a former chairman of Robin Hood Energy – resigned as chairman during the meeting, saying he wanted ‘fresh eyes and ears’ to look at the council’s review of the report.
Councillor Kevin Clarke is the leader of the Clifton Independent Party and told the meeting: “I’m sure I’m not the only one taking part in this meeting today that’s doing it with some sadness.
“I’m sad about the situation, but more than that I’m sad that this situation has been allowed to go so far.
“I appreciate Robin Hood Energy was set up with the best of intentions. Fuel poverty is a real and severe problem facing many families, and a drive to combat it should always be applauded.
“But this is the seventh full council meeting that we’ve been part of since being elected in Clifton East (in May 2019) and at the six previous meetings we’ve stood in front of you (Labour) and it’s been like groundhog day on every occasion.
“We implored you to reassess your approach to RHE on every occasion, and every time you dismissed us.
“You’ve dismissed our concerns about the amount of public money disappearing into the company.
“You dismissed our concern about a lack of expertise.
“You dismissed our concerns about transparency.
“And you mocked our apparent lack of understanding about interest on loans.
“So I feel we could be forgiven for feeling at least partially vindicated today.
“Despite that we take no pleasure in seeing our city in this position.
“I implore you to show some realism and some backbone when it comes to this report, and your review when it comes to the failed experiment of Robin Hood Energy.”
The leader of the council, David Mellen said: “It isn’t a day of happiness for any of us, it’s a day of considerable sadness, and we as the councillors responsible to lead this city will take on board very clearly the recommendations of the auditor and do our best in partnership with hopefully every member in this chamber, to improve our governance and move forward from today.”
The extraordinary council meeting was held virtually today (Thursday, August 27).
