Senior South Tyneside councillors granted 'dispensations' over interests

Under rules governing councillors, members must apply for ‘dispensations’ to participate and vote where they have an interest in an item - financial or non-financial - which may otherwise require them to leave the meeting or sit out of the decision-making.

After a fresh look at dispensations in place and those which might be required, South Tyneside Council’s Standards Committee was asked to discuss the matter as part of an update prompted by council officers.

According to a report prepared for councillors this week, dispensations aim to ensure "good governance of the authority and its decision-making."

He added: “I can say with some confidence that it was not something that was a live issue until after Nicola [Robason] was appointed to the post of monitoring officer and until after she then took steps to make sure that she was discharging her statutory duties as a monitoring officer completely properly.”

At the meeting, Cllr Glenn Thompson raised concerns about how the public could perceive the approval of the dispensation applications, given the length of time they had not been in place.

He also noted potential legal implications and called for the applications to be postponed to allow referrals to the relevant authorities and for “due process” to take place before a decision is made.

Legal chief, Mr Rumney, said any issues around members failing to declare interests were "far from certain in these circumstances."

But he added the request for a dispensation is "entirely forward looking" and would not "affect what has gone on in the past [or] prevent concerns being raised about previous conduct."

He went on to say: "The granting of a dispensation in the future would not prevent any matters that have taken place in the past being addressed and raised.

"And for that reason, there is no compelling need for matters in the future to be put on hold whilst matters in the past are dealt with.”

The meeting heard an email had been sent to all councillors asking them to "think carefully about what other roles they have" in relation to external bodies, and if councillors think their role(s) would need a dispensation they should contact legal chiefs.

While dispensations may not be necessary, Mr Rumney added, "it was something that members in the past had not been asked to look at in any detail and clearly (is) something members need to satisfy themselves about going forward."

Independent chair of the Standards Committee, Professor Grahame Wright, added that any code of conduct complaints would be dealt with by the panel in future.

He told the meeting: “It’s not a matter that we’re ignoring the past from the point of view of condoning it.

“We’re ignoring it because the decision we’re being asked to make is from today.”

The dispensation applications referenced above were approved by a majority vote, with Cllr Glenn Thompson voting against.

The Standards Committee agreed:

Cllr Iain Malcolm and Cllr Tracey DIxon will be allowed to participate, or participate further, in any discussion of any matter concerning NIAL and the airport's holding company at council meetings and/or take part in voting, for a period of two years.

They would still be excluded from any discussion or vote regarding the potential remuneration of board members of NIAL and/or the holding company.

Councillors involved in South Tyneside Homes will be allowed to participate, or participate further, in the discussion of any matter concerning the company at all council meetings and committees and/or take part in any vote, or further vote, linked to the company.

This dispensation will run up until the annual meeting of the borough council in May 2021 and the four named councillors can't take part in discussions or votes where changes to the payment of directors of the company are discussed.

Cllr Anne Walsh was also granted a dispensation to participate and vote at the council's Pensions Committee following her appointment as a non-executive director of Border to Coast Pensions Partnership Ltd.

She would not be allowed to take part in any discussion or vote linked to changes to the payment of company directors.

What are dispensations and when are they needed?

‘Dispensations’ are permissions which can be put in place for councillors who have interests in particular organisations or issues.

This could include a 'disclosable pecuniary (financial) interest' (DPI) or a separate 'significant interest' such as sitting on an outside body.

At a meeting where either arise, a councillor must declare the interest at that meeting in addition to declaring it and registering it on the council's 'register of member interests.'

Members with significant interests could continue to take part in the meeting to the extent that a member of the public would be able to - including not voting.

And councillors must withdraw from the meeting room during items of business in which they have a DPI, except where they have a dispensation to remain, the council's constitution states.

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