Quirk Review Launch presentation

1
making assets work
The Quirk Review of community
management and ownership of public
assets Barry Quirk Chair
2
our vision what does success look like?
3
public assets

• community needs and service needs are changing at
  faster pace than assets change
• many properties not fit for current purpose and
  in need of renewal or refurbishment
• major investment in capital stock over coming 5
  years (BSF, PFIs, PPPs)

• Asset Management Plans
• overall strategy for area
• individual site appraisals
• for Councils and for LSPs

4
our approach

• the over-riding goal is community empowerment.
  Optimising the use of public assets is not the
  primary objective, but helps achieve empowerment
• localities and communities may have common
  features but they are unique and distinctive
• this review is about the potential in
  transferring assets not the shifting of
  liabilities

5
the asset paradox

• we need facilities to achieve our purposes
• we need bigger and better facilities to expand
  our purposes
• we need assets so that we can raise money to
  sustain or to expand our purposes
• BUT
• running facilities can divert our purposes
• managing assets can drain our energies
• what appears to be an asset is often a liability
• under-capitalisation of third sector isnt
  remedied by simply gaining capital liabilities

6
opportunities, barriers risks
7
opportunities

• empower and facilitate local groups to
  revitalise their communities
• more intensive use of assets and services when
  management and/or ownership is closer to the
  community
• leverage - asset-backed community groups can
  raise more finance and expand their purposes
• build more active relationship between citizens,
  civil society and the local state

8
barriers more cultural than substantive

• public assets need to be viewed in the round and
  not in isolation, linked to their historic or
  current use
• asset management plans are not linked to
  community strategies they have a weak focus on
  devolution, regeneration or community empowerment
• options appraisals for asset sales are too
  narrowly drawn and neglect the potential of
  community use
• some community groups lack business capabilities
  to run assets of significant scale

9
risks real and perceived

• many public assets are in poor condition, not fit
  for purpose and in process of being re-configured
• the transfer of an asset in serious disrepair may
  shift large risks onto community groups
• the requirements of business planning and
  property management may distort the core purposes
  of community groups and
• sectional interests may lead to some people not
  having access to public or community assets

10
our conclusionsand recommendations
11
three firm conclusions
1
any sale or transfer of public assets into
community ownership or management needs to
realise social or community benefits without
risking wider public interest concerns and
without community purposes becoming overly
burdened with operational risk
2
the benefits can outweigh the risks and
opportunity costs in appropriate circumstances.
If there is proper consideration of these risks
and opportunity costs, there are no substantive
impediments to the transfer of public assets to
communities
12
3

• there are risks, but they can be minimised and
• managed. There is plenty of experience to draw
• on. The secret is all parties working together.
• This needs

• political will
• managerial imagination
• business focussed approach from the public and
  community sectors

13
five recommendations

• there is a need for authoritative up to date
  guidance on all aspects of local authority asset
  management, including detailed and explicit
  guidance on how to consider the transfer of
  assets to community management and ownership
• a toolkit is needed for local authorities and
  other public bodies on risk assessment and risk
  management in asset transfer to communities

14

• greater access to expert advice, and support for
  organisational development, relating to the
  transfer and/or management by communities of land
  and buildings
• smarter investment through the involvement of
  specialist financial intermediaries with local
  social entrepreneurs raising leverage ratios
• a three year campaign to promote the
  opportunities and sources of guidance and support

15
remember why
you came into this