Issue - meetings

To consider a report of the Leader of the Council and Cabinet Member for Policy, Finance & Devolution.

(Note: this report contains information ‘not for publication’ in its appendix that has been circulated to cabinet members only)

This report sets 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.

Cabinet is recommended to:

·      Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation project through the form of further shareholder loans;

·      Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives of the Borough;

·         Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Leader of the Council and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·      Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the Council’s shareholder loan, and to progress the financial and legal work associated with it; and

·      Approve the increase in capital expenditure supported by prudential borrowing.

Specifically in relation to the Exempt portion of the report, the Cabinet is recommended to:-

·      Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation projects through the form of further shareholder loans, as set out in this report; 

·      Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives for Greater Manchester;

·      Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Cabinet Leader and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·      Note the extensive due diligence that has been completed and the conclusions of that exercise as set out in the section 4 of the report;

·      Approve an increase in capital expenditure within the range set out in the report (depending on the amount of the funding package) supported by prudential borrowing;

·      Approve the proposals for the shareholder loan, subject to approval of the capital expenditure supported by prudential borrowing;

·      Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the shareholder loan, and to progress the financial and legal work associated with it;

·      Authorise the Borough Treasurer to determine the detailed accounting arrangements for the loan, including the classification between revenue and capital; and

·      Authorise the Borough Solicitor to enter into any necessary agreements or documents to give effect to the above recommendations.

Officer contact: Jonathan Davies, 0161 218 1025, jonathan.davies@stockport.gov.uk

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution submitted a report (copies of which had been circulated) inviting the Cabinet to consider investment proposals of the Manchester Airport Group to provide the airline capacity and standard of facilities required to secure future business plan growth and the longer term sustainability of the business.

RESOLVED – That in relation to the Strategic Investment for the Manchester Airport Group

·             the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation project through the form of further shareholder loans be noted;

·             that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives of Greater Manchester be noted;

·             the Chief Executive be authorised, in consultation with the Borough Treasurer, Borough Solicitor and Leader of the Council and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·             the Chief Executive, Borough Treasurer and Head of Legal & Democratic Services be authorised to negotiate and finalise the detailed arrangements in respect of the Council’s shareholder loan, and to progress the financial and legal work associated with it; and

·             the increase in capital expenditure supported by prudential borrowing be approved.

(2) Specifically in relation to the exempt portion of the report:-

·         the extensive due diligence that has been completed and the conclusions of that exercise as set out in the section 4 of the exempt report be noted;

·         the increase in capital expenditure within the range set out in the report (depending on the amount of the funding package) supported by prudential borrowing be approved;

·         the proposals for the shareholder loan, subject to approval of the capital expenditure supported by prudential borrowing, be approved;

·         the Borough Treasurer be authorised to determine the detailed accounting arrangements for the loan, including the classification between revenue and capital; and

·         the Head of Legal & Democratic Services be authorised to enter into any necessary agreements or documents to give effect to the above resolutions.

To consider a report of the Borough Treasurer.

The report sets out the investment proposals of the Manchester Airport group companies 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 Cabinet is recommended to:

·         Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation project through the form of further shareholder loans;

·         Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives for the City; 

·         Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Cabinet Leader and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·         Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the Council’s shareholder loan, and to progress the financial and legal work associated with it; and

·         Approve the increase in capital expenditure supported by prudential borrowing.

Officer contact: Jonathan Davies on 0161 218 1025 or email: jonathan.davies@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) setting out the investment proposals of the Manchester Airport group companies to provide the airline capacity and standard of facilities required to secure future business plan growth and the longer term sustainability of the business.

RESOLVED – That he Cabinet be recommended to:

·         Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation project through the form of further shareholder loans;

·         Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives for the City; 

·         Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Cabinet Leader and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·         Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the Council’s shareholder loan, and to progress the financial and legal work associated with it; and

·         Approve the increase in capital expenditure supported by prudential borrowing.

To consider a report of the Borough Treasurer.

(NOTE: This item has been circulated to members of the Scrutiny Committee only).

The Borough Treasurer submitted a report (copies of which had been circulated) in relation to the capital investment by Manchester Airport Group (MAG) and the associated funding structure, including the proposed shareholder loans.

RESOLVED – That the Cabinet be recommended to:

·         Note the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation projects through the form of further shareholder loans, as set out in this report;

·         Note that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives for Greater Manchester;

·         Delegate to the Chief Executive in consultation with the Borough Treasurer, Borough Solicitor and Cabinet Leader and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·         Note the extensive due diligence that has been completed and the conclusions of that exercise as set out in the section 4 of the report;

·         Approve an increase in capital expenditure of between £9.6m and £11.3m (depending on the amount of the funding package) supported by prudential borrowing;

·         Approve the proposals for the shareholder loan, subject to approval of the capital expenditure supported by prudential borrowing;

·         Authorise the Chief Executive, Borough Treasurer and Borough Solicitor to negotiate and finalise the detailed arrangements in respect of the shareholder loan, and to progress the financial and legal work associated with it;