To consider a report of the Executive Members for Investment and for Corporate Resources.

[Note: A related report is to be considered in Part II of this agenda – Item 14 refers.]

1. That the proposals set out in the report, and in particular the recommendations for financial support to the Manchester and Stansted transformation programme through the form of further shareholder loans, be noted.

2. That it be noted that the Transformation Programme outlined is fully aligned to the strategic economic and regeneration objectives for the Council.

3. That authority be delegated to the Chief Executive in consultation with the Chief Finance Officer, Chief Legal Officer, Executive Member for Corporate Resources and Executive Member for Investment to approve the funding package including the Council’s shareholder loan.

4. That the extensive due diligence that has been completed, and the conclusions of that exercise as set out in the Due Diligence section of the associated Part 2 report, be noted.

5. That an increase in capital expenditure be approved, as detailed in the associated Part 2 report, supported by earmarked reserves, any additional borrowing requirement being included in the budget setting report if necessary.

6. That the proposals for the shareholder loan be approved.

7. That the Chief Executive, Chief Finance Officer and Chief legal Officer be authorised to negotiate and finalise the detailed arrangements in respect of the shareholder loan, and to progress the financial and legal work associated with it.

8. That the Chief Finance Officer be authorised to determine the detailed accounting arrangements for the loan, including the classification between revenue and capital.

9. That the Chief Legal Officer be authorised to enter into any necessary agreements or documents to give effect to the above recommendations.

[Note: A related report was considered in Part II of this agenda. Minute 160 below refers.]

The Executive Members for Investment and for Corporate Resources submitted a report which set out the investment proposals of the Manchester Airport group companies (‘MAG’) to provide the airline capacity and standard of facilities required to secure future business plan growth and the longer term sustainability of the business. The report sought approval for a range of associated recommendations, with confidential financial aspects of the proposals considered in Part II of this agenda. An opportunity was provided for Members to raise questions in respect of the report’s content; and in discussion the Executive was advised that the airport’s shareholders themselves had requested to be involved in the proposed funding mechanism, as it safeguarded their interest in dividend payments.

            RESOLVED -

(1)        That the proposals set out in the report, and in particular the recommendations for financial support to the Manchester and Stansted transformation programme through the form of further shareholder loans, be noted.

(2)        That it be noted that the Transformation Programme outlined is fully aligned to the strategic economic and regeneration objectives for the Council.

(3)        That authority be delegated to the Chief Executive in consultation with the Chief Finance Officer, Chief Legal Officer, Executive Member for Corporate Resources and Executive Member for Investment to approve the funding package including the Council’s shareholder loan.

(4)        That the extensive due diligence that has been completed, and the conclusions of that exercise as set out in the Due Diligence section of the associated Part 2 report, be noted.

(5)        That an increase in capital expenditure be approved, as detailed in the associated Part 2 report, supported by earmarked reserves, any additional borrowing requirement being included in the budget setting report if necessary.

(6)        That the proposals for the shareholder loan be approved.

(7)        That the Chief Executive, Chief Finance Officer and Chief legal Officer be authorised to negotiate and finalise the detailed arrangements in respect of the shareholder loan, and to progress the financial and legal work associated with it.

(8)        That the Chief Finance Officer be authorised to determine the detailed accounting arrangements for the loan, including the classification between revenue and capital.

(9)        That the Chief Legal Officer be authorised to enter into any necessary agreements or documents to give effect to the above recommendations.