02 January 2008
From:    Staffordshire Parish Councils Association<spca.parish@staffordshire.gov.uk>
Subject:    RE: Prejudicial Interests again

    You have a personal interest in any business of your authority where it relates to or is likely to affect:
1) An interest that you must register.
2) An interest that is not on your register but where the well-being or financial position of you, members of your family, or people with whom you have a close association, is likely to be affected by the business of your authority more than it would affect anyone else.

    There are two exemptions to the rule on declaring a personal interest, which is a key change under the revised Code. Exemptions apply where an interest arises solely from membership of, position of control or management on:
•    Any other body to which you were appointed or nominated by the authority.
•    Any other body exercising functions of a public nature for example, if you have been appointed as a school governor.
In these exceptional circumstances you only need to declare your interest if and when you speak on a matter, provided that you do not have a prejudicial interest (see below).

    Your personal interest will also be a prejudicial interest if it meets all of the following conditions:
a)    The matter does not fall within one of the exempt categories of decisions under paragraph 10(2)(c), for example, setting the council tax.
b)    The matter affects your interests financially or a licensing or regulatory matter, for example an application for a grant funding to a body on your register of interests, or a planning or licensing application made by you or a body on your register of interests.
c)    A member of the public, who knows the relevant facts, would reasonably think your personal interest so significant that it is likely to prejudice your judgement of the public interest.
Note: in order for your interest to be prejudicial, it must be a financial or regulatory matter.

    What to do if you have a prejudicial interest If you have a prejudicial interest in a matter being discussed at a meeting:
•    You must declare that you have a prejudicial interest and the nature of that interest as soon as the interest becomes apparent.
•    You should leave the room unless members of the public are allowed to make representations, give evidence or answer questions about the matter. If this is the case, you can also attend the meeting for that purpose.
•    You must leave the room immediately once you have finished speaking, or when the meeting decides that you have finished (if that is earlier).

    Also we have recently checked the issue of Cllrs representing more than one Council.  There are no restrictions on Cllrs doing this - so they would be Ingestre Cllrs when deciding on matters for Ingestre and vice versa for Tixall. 

    I am not sure I understood your point about co-option.  Co-opted Members of a Parish Council are full members with no restrictions. If the Cllr who acts as Auditor for Tixall has no conflict on interest as an Ingestre Cllr then he/she is free to vote on the matter.  In the end it comes down to pragmatism.  I cannot believe that in the matter of church maintenance, anyone would have such a significant personal interest that they could not reasonably be expected to be objective.  I am sure the community would rather the church be maintained than the Council get hooked up in procedural difficulties.
    Looking at the above guidance - it appears to me that your Cllrs (who are affected) should declare a prejudicial interest at the meeting but should rely on the exemption if their vote is necessary to legitimise the decision. The exemption should be referred to in the minutes.

Vivien Evans
Chief Executive, Staffordshire Parish Councils' Association