Agenda item

To present the report of External Audit.

The report of External Audit was presented for the Committee’s consideration.

Mr Huw Lloyd Jones, Wales Audit Office (WAO) reported that Welsh Government Officials have discussed with the Council the potential for the Welsh Government to provide additional support given the scale and complexity of the Wylfa Newydd project. Following discussion with both the Council and Welsh Government, it was decided that the WAO would conduct a review focusing on the Council’s capacity to achieve its strategic objectives, whilst managing and mitigating the risks associated with the Wylfa Newydd project. The review looked at the Council’s capacity and readiness to support the delivery of the Wylfa Newydd project within the context of the Energy Island Programme and the Council’s wider strategic objectives. Consideration was given to whether the Council has the plans and capacity to maximise the opportunities and mitigate the risks associated with Wylfa Newydd without compromising its ability to deliver all its priorities and services.

The Officer said that the review found that the Council has made good progress as host authority for the Wylfa Newydd project without compromising the delivery of other priorities but that a challenging period lies ahead during which close collaboration among public sector partners will be vital.  The report makes three proposals for improvement. These are in relation to the need for the Council to monitor capacity on an ongoing basis as the Wylfa Newydd project progresses; the need for the Council to work with other public sector consultees to co-ordinate the assessment of risks associated with the project and to share information to enable a common understanding of the risks and how they can be mitigated ; and the need for the Council to work with public sector partners to identify lead responsibilities for developing the supply chain and increasing training opportunities across the North Wales region.

The Committee noted that there are a number of milestones to be reached before the project comes to fruition and that this element of uncertainty represents a risk particularly in terms of the financial investment that is required in making preparations for it.

The Assistant Chief Executive (Partnerships, Community and Service Improvement) said that she welcomed the report and in particular the finding that preparing for the Wylfa Newydd project has not impacted on the Council’s fulfilment of its core responsibilities. The Council fully realises the extent of the work involved in preparing for Wylfa Newydd and a dedicated team has been established and appropriate structures put in place to deal with this and with the National Grid project. Tîm Cymru comprising of representatives of all the key partners has also been set up and had its initial meeting recently. However, the Council has been liaising and working collaboratively with partner organisations on the Wylfa Newydd project for a long time and has been providing support in responding to Horizon documentation including by sharing information and key documentation templates. The Officer said that the Council recognises that sharing expertise is essential and that partnership working is a two way relationship that benefits all the partners. The Isle of Anglesey County Council has been clear from the outset that there are some responsibilities which it is appropriate for the Council to lead on in accordance with the “proximity principle” whilst there are others including the development of the supply chain that will have to be addressed on a regional basis. These discussions have commenced via the North Wales Economic Ambitions Board. Although the final investment decision is yet to be made preparations for the Wylfa Newydd project have to continue. A key element of those preparations is investment in the North Wales labour market by way of developing skills so that both the existing workforce and the unemployed population can take advantage of the employment opportunities that will become available through the Wylfa Newydd project and other economic initiatives in development in the region.

The Chief Executive welcomed the positive tenor of the report as testimony to the work of all those within the Council be they Members, Officers or staff. The report acknowledges that although the workload on Elected Members, Senior Managers and Heads of Service is heavy, they are generally coping well. The Council recognises that there is still major work to be done as the Wylfa Newydd project progresses and that this work will be undertaken in collaboration with partners. However, the Council is keen to ensure that the project results in maximum long-term legacy benefits to the residents of the Island and beyond, and the Council will work with its partners to ensure this is achieved. The Chief Executive thanked the WAO’s Officers for the discussions during the fieldwork which had been valuable and productive.

The Leader of the Council said that the report was both constructive and helpful in crystallising the position. The Council as host authority has been investing in and leading on the preparations for Wylfa Newydd over the course of many years and has made a commitment to the Energy Island Programme and to obtaining and collating the information that has brought the Authority to this point. The Authority recognises that the ongoing preparations for Wylfa Newydd involves other public sector partners; it is important therefore that each partner organisation understands its responsibilities going forwards. The Leader said that she was also grateful to her fellow Members for their commitment to the process and for leaving no stone unturned in seeking clarity along the way.

It was resolved to accept and to note the External Audit report.

ADDITIONAL ACTION: None