ICE Council yesterday voted in favour of a revised set of proposals to minimise the impact of proposed associated society secretarial and room hire charges and calm the on-going row over subsidy levels.

Setting out the proposals to Council, vice president Peter Hansford accepted that, following discussions with the associated societies, the increases proposed at the Council meeting in December should be reconsidered , but that the Associated societies should bear part of the cost burden.

 The current 75% subsidy for secretarial services will now only be cut to 67% from 1 April 2010 rather than 50% as previously proposed. There will also now be no change in the cost of room hire. This subsidy had been proposed to be cut from 75% to 50%.

 In addition Council agreed that there would be no decrease in subsidy in 2011 and any subsidies in 2012 and beyond will also now be reviewed ­ including the potential option of returning to 2009 subsidy level if and when ICE’s finances return to previous levels. "We have learned a great deal over the last few months and I believe that the associated societies have also," said Hansford.

 "We will come away with a better relationship." Hansford estimated that the proposals would cost the ICE £40,000 to £50,000 of the originally anticipated £55,000 savings.

 Council also agreed to look at transitional grants for associated societies in financial difficulty and to contribute to any international costs where activities align with the objectives of the ICE.

 This information will be in this week’s edition of NCE. 

 Background

As part of the budget rebalancing exercise carried out in 2009 it was decided that ICE must reduce its expenditure across a number of institutional activities and its financial contribution to some groups, including Associated Societies. Currently ICE subsidises 75% of Associated Societies room hire charges and secretarial costs (i.e. Associated Societies pay 25%). ICE’s 2010 budget and financial plan proposed that ICE’s subsidy be reduced from 75% to 50%.

In autumn 2009 objections to these cuts were made by the Associated Societies which then escalated to calls for a Special General Meeting (SGM). In December the ICE President called a meeting to address the concerns raised and it was agreed that there would be further discussions on the issue, with an aim of reaching an agreement by February 2010. Further meetings took place in December, January and February. A report was then presented to Council including a financial proposition from ICE to the Associated Societies, taking into account the views raised in these meetings. Council have today (2 March) endorsed the below options with regards to financial contributions to Associated Societies.

Principles

The endorsements are based on the principle of creating a closer alignment between Associated Societies activities and the ICE strategy in respect of Knowledge Transfer and Public Voice.

Room hire

From January – March 2010 Associated Societies will pay 25% of the 2010 internal room charges in accordance with the interim agreement. From 1 April 2010 Associated Societies will pay 28% of the internal charge, a reduction from the 50% originally proposed in the ICE’s 2010 budget and financial plan.  (The adjustment from the 25% 2009 rate reflects the reduction in 2010 for all internal room charges so in real terms the rate remains unchanged from the amount paid in 2009).

Room subsidy for 2011will remain unchanged (i.e. Associated Societies will pay 28%).

Room subsidy for 2012 and beyond will be reviewed including the option of maintaining 2009 levels (i.e. Associated Societies pay 25% ICE pay 75%) if/when ICE’s finances return to previous levels (i.e. TTL profits recover etc.)

Secretarial costs

From January-March 2010 Associated Societies will pay 25% of the 2010 secretarial costs in accordance with the interim agreement. From 1 April 2010 Associated Societies will pay 33% of the secretarial costs, a reduction from the 50% originally proposed in the ICE’s 2010 budget and financial plan.

Secretarial costs for 2011 will remain unchanged (i.e. Associated Societies will pay 33%).

Secretarial costs for 2012 and beyond will be reviewed including the option of reverting to 2009 levels (i.e. Associated Societies pay 25% ICE pay 75%) - if/when ICE’s finances return to previous levels (i.e. TTL profits recover etc.).

Learned Society Vice President

ICE Council has also authorised for the Learned Society Vice President to discuss with any Associated Societies in financial difficulty the need for any ‘transitionary grants’ and to consider the justification for ICE to contribute to Associated Society international subscriptions where international objectives clearly align with ICE’s international strategy. Any such proposition would be agreed with the Associated Societies.

Review of One Great George Street room charging mechanism

The Executive Board will commission a review of One Great George Street room charging mechanism for the longer term to ensure room rates are aligned to the objectives of the Learned Society.

The above recommendations will mean ICE saves between 5-15k of the planned saving of 55k (as proposed in the 2010 budget).