Board Report Minutes 2014 December

DAVID MACBRAYNE LIMITED

MINUTES OF BOARD MEETING HELD AT THE FERRY TERMINAL, GOUROCK

ON FRIDAY 19 DECEMBER 2014 AT 2PM

____________________________________________________________________________________

Present:                         Mr D C McGibbon, Chairman

                                      Mr M Easton

                                      Mr S Hagan

                                      Ms P J D Stark

                                      Mr J Stirling

                                      Mr A V Tait     

                                      Mr M Dorchester

                                      Mr R L Drummond

 

In attendance:               Mr R Hadfield, Scottish Government (Assessor)

                                      Mr C P Paterson, Board Administrator

 

  1. PRELIMINARIES

 

Welcome and Apologies for absence

Mr McGibbon extended a welcome to Mr Hadfield.

There were no apologies for absence.

 

Declarations of interest

There were no further declarations of interest, other than those previously made and known to all Directors.

 

  1. MINUTES/MATTERS ARISING

                       

Approve Minutes of Board Meeting held on 1 October 2014

 

p3  2.5 3rd Hybrid procurement agreed

 

Mr Hadfield noted the final sentence should be deleted.

 

p6  Vessel replacement strategy

 

Mr Stirling noted that the two vessels should be referred to as 100 metres each.

 

Interferry conference

 

Mr Dorchester noted that he and Mr Ure attended, not Mr Drummond.

 

Subject to the amendments, the Minutes for the Board Meeting held on 1 October 2014 were approved.

 

Matters arising

 

There were no matters arising.

                       

  1. CHAIRMAN’S REMARKS

 

Mr McGibbon noted that Mr Derek Mackay, MSP, had been appointed as Minister for Transport and Islands. The Board noted that clarification would be welcomed in due course on whether or not the newly appointed Cabinet Secretary for Infrastructure, Investment and Cities, Mr Keith Brown, MSP, would maintain interest in CHFS operations.

Mr McGibbon noted that a meeting with the CMAL Board had been held that morning.

The Board discussed the relationship between CalMac Ferries and CMAL.

Mr Dorchester confirmed that he and Mr Docherty would meet on an approximately two‑ monthly basis to discuss live issues, with any significant ones being brought to the Board.

[FOISA Status - Exemption under Section 30 (Prejudice to Effective Conduct of Public Affairs)]

           

  1. GROUP REPORTS

 

                4.1  Group CEO update

 

  1. OPERATIONAL PERFORMANCE UPDATE

 

Mr Dorchester indicated that the CEO Update had been produced as a summary.  He proposed to highlight important items.

1.1 Safety & Risk

1.1 Safety induction

 

Referring to CalMac Ferries’ Gangway digital platform on which the Safety Induction was located, Mr Dorchester suggested that the Board should be given a demonstration of the system. Mr Drummond agreed to arrange this with Mr Willison-Gray.

Action 1: RLD

 

2.0 Technical

 

2.1 Loch Seaforth

Mr Dorchester noted that it was unlikely that Stornoway No.3 Pier would be available until the end of February 2015 at the earliest. Ullapool was also not yet ready to accommodate the new vessel. Noting that the vessel cannot berth at No.1 Pier, he added that the Company had to consider an initial passenger-only service and a meeting would be held on 24 December to examine options.

 

3.0 Operations

3.1 Valiant

Mr Dorchester noted some installation issues at Ports and with BT and would be asking   Mr Forrest, Non-executive Director of CMAL, to assist.

 

4.0 HR and our People

4.1 Pay award

Mr Dorchester noted that all four Unions had agreed the pay award.  The management team pay award consisted of 1.5% award and a maximum 1.5% performance bonus resulting in a 3% limit.  He noted that he would address the Executive award via the Remuneration Committee.

 4.3 Pensions

Mr Dorchester noted that the Company would be talking to the Unions about potential Pension reforms.  He asked the Board to consider if any Member could assist Ms Roberts by chairing any local meetings.  Mr Dorchester noted that he would chair national meetings and also noted that they would be discussion-based and would not be negotiations.  

 

[FOISA Status - Exemption under Section 30 (Prejudice to Effective Conduct of Public Affairs)]

 

The Board discussed the matter, noting the importance of the two aspects of Procurement and Pensions in CHFS.  It was also noted that the way forward on pensions would be agreed with Unions and incorporated in CHFS.  Mr Hadfield noted that care would be taken over progress in both procurement and pensions and that both processes would be informed by developments in each.  Mr Dorchester affirmed the importance of consistent messages from CalMac and Transport Scotland.

 

5.0 Marketing / PR

5.2 Award nomination

It was noted that Mr Dorchester had been nominated for a Leadership Award in Holyrood Magazine’s inaugural Scottish Public Service Awards, which is supported by the Scottish Government and Scottish Parliament.

6.0 Strategic priorities

6.7 New Minister appointed

Mr Dorchester noted that, with the appointment of Mr Derek Mackay MSP as Minister for Transport and Islands, it would be beneficial to arrange a Board Meeting for the Minister to attend.

 

[FOISA Status - Exemption under Section 30 (Prejudice to Effective Conduct of Public Affairs)]

 

4.2  Group Finance update

Mr Drummond presented the report and highlighted the key points.

[FOISA Status - Exemption under Section 30 (Prejudice to Effective Conduct of Public Affairs)]

 

  1. BUSINESS DEVELOPMENT

 

[FOISA Status - Exemption under Section 30 (Prejudice to Effective Conduct of Public Affairs)]

 

  1. ANY OTHER BUSINESS

           

Safety Committee update

Mr Stirling presented his paper.  He noted that the Board meeting had not started with a Safety Moment and highlighted its importance.  He also noted that the Board had to lead on Safety and continually treat it as a priority.  As an example for potential consideration, Mr Stirling raised the question about the possible impact on safety by increased timetabling.  

The Board and Mr Hadfield discussed demand for additional sailings and the effect on timetables.

 

KPMG Secondary NI Position

The Board noted KPMG’s Review of the Secondary National Insurance Position.

              

  1. ITEMS FOR NOTING 

Audit & Risk Committee meetings

 

Group Audit & Risk Committee Meeting Minutes 25 June 2014

Group Audit & Risk Committee Meeting Minutes 21 October 2014       

           

Ms Stark noted that some good work had been done on the Risk Register and that a forward look on the 2016 Audit programme had commenced.

                                                                                                                            

The Board noted the Minutes of the Audit & Risk Committee meetings of 25 June 2014          and 21 October 2014.

 

Group Safety Committee Meetings

 

Group Safety Committee Meeting Minutes 17 September 2014

Group Safety Committee Meeting Minutes 19 November 2014       

 

The Board noted the Minutes of the Group Safety Committee meetings of 17 September 2014 and 19 November 2014.       

 

  1. APPENDICES (supporting papers)

                        

The Board noted the appendices to the CEO’s report.

 

  1. ADDITIONAL REMARKS

 

Mr Dorchester thanked the Board for the focus on Safety and noted that there was a   noticeable step-change in progress.

                       

[FOISA Status - Exemption under Section 30 (Prejudice to Effective Conduct of Public Affairs)]

 

Mr Dorchester noted that the Senior Managers Leadership Conference in the Hilton had produced a lot of discussion and some frank dialogue generated by Mr Drummond’s presentation on the CHFS Bid process.

 

  1. NEXT MEETING

 

Wednesday 4 February 2015 – at 10 a.m. in the Boardroom, Ferry Terminal Building, Gourock.

 

……………………………….

Chairman

 

DAVID MACBRAYNE LTD

BOARD MEETING ACTION POINTS

 

Meeting

Action No.

Responsibility

Topic

Action

19/12/14

1

RLD

 

1.1 Safety induction

 

To arrange a demonstration for Board members of CalMac Ferries’ Gangway digital platform on which the Safety Induction is located.