Category: Beechwood

9 councillors vote to make Wirral Council leisure centre concession scheme for Armed Forces less generous despite objections

9 councillors vote to make Wirral Council leisure centre concession scheme for Armed Forces less generous despite objections

9 councillors vote to make Wirral Council leisure centre concession scheme for Armed Forces less generous despite objections

                                                                                                                           

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I will start by declaring an interest in this story as I have a friend who is now a Lance Corporal in the Armed Forces and was recently mentioned in this Telegraph article.

Last month (23rd September) there was a review (by the Coordinating Committee) of a Wirral Council Cabinet decision made on the 7th July 2014 to change the concessions provided at Wirral’s leisure centres to former Armed Forces personnel.

The decision had originally been scheduled to be decided by the Coordinating Committee on 7th August 2014, however the meeting on the 7th August 2014 was adjourned because on 7th August 2014 key Wirral Council officers involved in the decision were on holiday and couldn’t be present to answer questions. So the meeting of the 7th August 2014 was adjourned to the 23rd September 2014.

There was then an interesting meeting on the 23rd September 2014 (which was in part a repeat of the adjourned meeting on the 7th August 2014). Councillors discussed the impact of the proposed changes to the policy and witnesses were heard from and questioned.

The motions at the end of that meeting were:

1) “That Cabinet minute 37 – 7 July 2014 (Transformation of Leisure Services Sports and Leisure Facilities Pricing Structure) be upheld” (proposed by Cllr Moira McLaughlin and seconded by Cllr Paul Doughty)

and the proposed amendment (proposed by Cllr Chris Blakeley and seconded by Cllr Mike Hornby) was

2) “That this Committee, having heard evidence this evening, stands unconvinced that any potential saving (the achievement of which remains dubious) made by implementing the decision at paragraph 3 of the Cabinet report, outweighs the harm this decision will do to Wirral’s reputation as an Authority which takes seriously its duties under the Military Covenant and as an Authority that does all it can to actively uphold and advance the Covenant.

Therefore, this Committee urges the Cabinet to reconsider its decision and restore the free Leisure Passes to all the veterans of Her Majesty’s Armed Forces.”

The vote on the amendment was 6 votes for (5 Conservative, 1 Lib Dem) and 9 votes against (9 Labour councillors).

The amendment was therefore lost.

The vote on the original motion was 9 votes for (9 Labour) and 6 votes against (5 Conservative, 1 Lib Dem).

The original motion/recommendation was therefore carried.

At the start of the meeting both Cllr Mike Hornby and Cllr Walter Smith declared interests as former members of the Armed Forces.

The Cabinet Member (not part of the committee but a witness) Cllr Chris Meaden declared an interest as her daughter is a former member of the Armed Forces.

Cllr Paul Doughty (the Vice-Chair) declared an interest as his late father had been in the Armed Forces.

There is then an “anomaly” (as Surjit Tour would put it) identified at this point.

Cllr Chris Meaden (the Cabinet Member) declared an interest as her daughter is a former member of the Armed Forces at the Coordinating Committee on the 23rd September 2014 which reviewed the earlier decision of Cabinet (of which she was one of the Cabinet Members present) on the 7th July 2014.

However the agreed minutes of that Cabinet meeting show that she was present and spoke on this agenda item and contain no record of her declaring an interest at that meeting either during the agenda item itself or earlier.

Certainly the video (below) of that Cabinet meeting in July shows Cllr Chris Meaden both present and speaking on that item which fell under her portfolio.

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The video footage of declarations of interest was earlier in that meeting (see below)

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However in Cllr Chris Meaden’s defence, this item did come near the end of a long Cabinet meeting held in the evening. Politicians do get tired and overlook things. She [Cllr Chris Meaden] referred to a conversation with Surjit Tour (who is Monitoring Officer) at the Coordinating Committee meeting in September. By the way she was talking then she seems to realise it was an oversight on her part and was trying to make amends by declaring the interest instead at the Coordinating Committee meeting in September, when it should have happened at the Cabinet meeting on the 7th July.

Declaring interests is one of the few bits left of the Councillor’s Code of Conduct on which separate legal provisions apply. It’s also a personal legal responsibility of politicians, so they can’t pass the buck to someone else or blame them. The guidance from the DCLG titled Openness and transparency on personal interests A guide for councillors issued in September 2013 states in reference to councillors starting at the bottom of page 4:

“One of these is the principle of integrity – that ‘Holders of public office must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work. They should not act or take decisions in order to gain financial or other material benefits for themselves, their family, or their friends. They must declare and resolve any interests and relationships.’”

By my reading of the rules, this interest would be classed as a “personal interest” not a “prejudicial interest”. Therefore even had she declared this on the 7th July 2014, she would still have been able to take part and vote in that agenda item. Had it been an undeclared pecuniary/prejudicial interest it would be a much more serious matter.

This is what the existing Code of Conduct states on such matters.

Personal Interests

4.2 You have a personal interest in any business of the Council where it relates to or is likely to affect:-
(i) any body of which you are a Member or in a position of general control or management and to which you are appointed or nominated by the Council;
(ii) any body:-
(a) exercising functions of a public nature;
(b) directed to charitable purposes; or
(c) one of whose principal purposes includes the influence of public opinion or policy (including any political party), of which you are a member or in a position of general control or management.

4.3 You also have a personal interest in any business of the Council:-
(i) where a decision in relation to that business might reasonably be regarded as affecting your well-being or financial position or the well-being or financial position of a relevant person to a greater extent than the
majority of other council taxpayers, ratepayers or inhabitants of the electoral division or ward, as the case may be, affected by the decision, or,
(ii) it relates to or is likely to affect any of the interests you have registered as a disclosable pecuniary interest.

Sensitive Interests
4.4 Where you consider that disclosure of the details of an interest could lead to you, or a person connected with you, being subject to violence or intimidation, and the Monitoring Officer agrees, if the interest is entered on the Register, copies of the Register which are made available for inspection and any published version of the
Register will exclude details of the interest, but may state that you have an interest, the details of which are withheld.

Disclosure and participation
4. At a meeting where such issues arise, DO declare any personal and/or professional interests relating to your public duties and DO take steps to resolve any conflicts arising in a way that protects the public interest.

5. Certain types of decisions, including those relating to a permission, licence, consent or registration for yourself, your friends, your family members, your employer or your business interests, are so closely tied to your personal and/or professional life that your ability to make a decision in an impartial manner in your role as a member may be called into question and in turn raise issues about the validity of the decision of the authority. DO NOT become involved in these decisions any more than a member of the public in the same personal and/or professional position as yourself is able to be and DO NOT vote in relation to such matters.

Just in case someone thinks I’m singling Cllr Chris Meaden out for criticism. At a recent meeting last week Cllr Leah Fraser was present at a meeting of the Wallasey Constituency Committee Working Group when a decision (following a recommendation from the Merseyside Police) over whether to spend money on Ian Fraser Walk in New Brighton was made. As far as I can as I was present throughout the whole of the meeting, I don’t remember her declaring an interest in that agenda item (although I may not have heard her if she did).

Ian Fraser Walk is in fact named after her late father-in-law but she didn’t declare an interest. However whether Cllr Leah Fraser should have to declare a personal interest in whether money is spent on a stretch of promenade named after her late father in law is another matter.

If I wend through all the times councillors had failed to declare personal interests, it would be a very long list! Some are like the last example somewhat subjective. It’s more when councillors actually fail to declare prejudicial interests and then speak and vote on agenda items, which are the kind of major abuses that should be tackled and not happen in the first place.

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Expense claim forms for Councillor Harry Smith 2013 to 2014

Expense claim forms for Councillor Harry Smith 2013 to 2014

Expense claim forms for Councillor Harry Smith 2013 to 2014

                                                    

Councillor Harry Smith is a Labour Party councillor for Bidston & St. James ward. During the period these expense claims cover, he was Cabinet Member for what is now called Highways and Transportation but was previously called Streetscene and Transport.

His expense claim forms cover his work as a Cabinet Member (referred to by the initials CM on the forms), work on Wirral Council’s Pensions Committee (which manage the Merseyside Pension Fund worth billions of pounds), conferences & training, housing association meetings (where he was a Wirral Council representative), an employment appeal (the trade unions are still in dispute over this being decided by officers now and not councillors and this looks like it may have been one of the last decided by councillors), the Beechwood Joint Management Committee (on which he was a Wirral Council representative), full Council meetings, a Cabinet “Away Day” in July 2013 with the Chief Executive Graham Burgess, a meeting of the North Birkenhead Development Trust (which runs the St James Centre in Laird Street), a leadership program meeting in Acre Lane, a site visit in his role as Cabinet Member and a meeting at the Floral Pavilion about the flooding in New Brighton.

The sixteen pages of claim forms covering this period are below.

Cllr Harry Smith expenses claim 2013 2014 page 1
Cllr Harry Smith expenses claim 2013 2014 page 1
Cllr Harry Smith expenses claim 2013 2014 page 2
Cllr Harry Smith expenses claim 2013 2014 page 2
Cllr Harry Smith expenses claim 2013 2014 page 3
Cllr Harry Smith expenses claim 2013 2014 page 3
Cllr Harry Smith expenses claim 2013 2014 page 4
Cllr Harry Smith expenses claim 2013 2014 page 4
Cllr Harry Smith expenses claim 2013 2014 page 5
Cllr Harry Smith expenses claim 2013 2014 page 5
Cllr Harry Smith expenses claim 2013 2014 page 6
Cllr Harry Smith expenses claim 2013 2014 page 6
Cllr Harry Smith expenses claim 2013 2014 page 7
Cllr Harry Smith expenses claim 2013 2014 page 7
Cllr Harry Smith expenses claim 2013 2014 page 8
Cllr Harry Smith expenses claim 2013 2014 page 8
Cllr Harry Smith expenses claim 2013 2014 page 9
Cllr Harry Smith expenses claim 2013 2014 page 9
Cllr Harry Smith expenses claim 2013 2014 page 10
Cllr Harry Smith expenses claim 2013 2014 page 10
Cllr Harry Smith expenses claim 2013 2014 page 11
Cllr Harry Smith expenses claim 2013 2014 page 11
Cllr Harry Smith expenses claim 2013 2014 page 12
Cllr Harry Smith expenses claim 2013 2014 page 12
Cllr Harry Smith expenses claim 2013 2014 page 13
Cllr Harry Smith expenses claim 2013 2014 page 13
Cllr Harry Smith expenses claim 2013 2014 page 14
Cllr Harry Smith expenses claim 2013 2014 page 14
Cllr Harry Smith expenses claim 2013 2014 page 15
Cllr Harry Smith expenses claim 2013 2014 page 15
Cllr Harry Smith expenses claim 2013 2014 page 16
Cllr Harry Smith expenses claim 2013 2014 page 16

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Expense claim forms for Councillor Ann McLachlan 2013 to 2014

Expense claim forms for Councillor Ann McLachlan 2013 to 2014

Expense claim forms for Councillor Ann McLachlan 2013 to 2014

                          

Now we turn to the expenses claims of one of my very own Labour councillors for Bidston & St. James ward Councillor Ann McLachlan. Cllr McLachlan is Deputy Leader of the Council and Cabinet Member for Governance, Commissioning and Improvement. As you can imagine from such a senior councillor, her expenses claims are quite long.

Her expenses claims refer to trips to the local Gautby Road Play and Community Centre Joint Management Committee in (you’ve probably guessed already) Gautby Road, on which she represents Wirral Council’s interest. In fact I think she’s Chair of that. Yes that’s the committee that is in charge of the play area next to the community centre which is kept padlocked because the last thing we want is children using a play area!, Improvement Board meetings (which ceased in November 2013), Chrysalis (what’s that?), a trip down to London for a pensions conference, Cabinet meetings, a “transformation event” at the Floral Pavilion, Wirral Metropolitan College governors meeting, interviewing job applicants for the Director of Resources post, trade union meeting about redeployment, more job interviews and shortlisting, work on the Member’s (Members refers to councillors) Training Steering Group, the Chrysalis Board (again), a LGA Conference in Manchester, a “Strategic Communications” workshop at the Floral Pavilion, another redeployment meeting, “Visioning Training” at the Floral Pavilion, a meeting of the Democracy Working Party, the LGA Leadership Academy in Coventry (module 3) please, please no jokes in the comments about her being sent to Coventry where she spent £35 on taxis, another Leadership Academy in Coventry (module 2) when her taxi claim was £41.80 (maybe module 2 teaches you leadership skills such as how to get cheaper taxis to the same place), the Beechwood and Ballantyne Housing Association Board, interviews for a Strategic Director, shortlisting for the Director of Children and Young Peoples Department, more leadership training in Coventry where the taxi was only £10.40, the local Area Forum, a meeting to do with the Hoylake Golf Resort launch, full Council meetings, Youth Parliament, well you can see for yourself below how busy she’s been!

Cllr Ann McLachlan expenses claim 2013 2014 page 1
Cllr Ann McLachlan expenses claim 2013 2014 page 1
Cllr Ann McLachlan expenses claim 2013 2014 page 2
Cllr Ann McLachlan expenses claim 2013 2014 page 2
Cllr Ann McLachlan expenses claim 2013 2014 page 3
Cllr Ann McLachlan expenses claim 2013 2014 page 3
Cllr Ann McLachlan expenses claim 2013 2014 page 4
Cllr Ann McLachlan expenses claim 2013 2014 page 4
Cllr Ann McLachlan expenses claim 2013 2014 page 5
Cllr Ann McLachlan expenses claim 2013 2014 page 5
Cllr Ann McLachlan expenses claim 2013 2014 page 6
Cllr Ann McLachlan expenses claim 2013 2014 page 6
Cllr Ann McLachlan expenses claim 2013 2014 page 7
Cllr Ann McLachlan expenses claim 2013 2014 page 7
Cllr Ann McLachlan expenses claim 2013 2014 page 8
Cllr Ann McLachlan expenses claim 2013 2014 page 8
Cllr Ann McLachlan expenses claim 2013 2014 page 9
Cllr Ann McLachlan expenses claim 2013 2014 page 9
Cllr Ann McLachlan expenses claim 2013 2014 page 10
Cllr Ann McLachlan expenses claim 2013 2014 page 10
Cllr Ann McLachlan expenses claim 2013 2014 page 11
Cllr Ann McLachlan expenses claim 2013 2014 page 11
Cllr Ann McLachlan expenses claim 2013 2014 page 12
Cllr Ann McLachlan expenses claim 2013 2014 page 12
Cllr Ann McLachlan expenses claim 2013 2014 page 13
Cllr Ann McLachlan expenses claim 2013 2014 page 13
Cllr Ann McLachlan expenses claim 2013 2014 page 14
Cllr Ann McLachlan expenses claim 2013 2014 page 14

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Bins, Biffa, page 59, Wirral Council, “Confidential Information” and what you’re not supposed to know (yet)

Bins, Biffa, page 59, Wirral Council, “Confidential Information” and what you’re not supposed to know (yet)

Bins, Biffa, page 59, Wirral Council, “Confidential Information” and what you’re not supposed to know (yet)

                                               

I was reading through the Biffa contract (who get paid ~£12 million a year for collecting bins and other things) and this interesting snippet about Freedom of Information and Data Protection caught my eye on page 59. I haven’t made any FOI requests for the yearly CO2 emissions of bin lorries but this is how such a request would be dealt with if someone were to do so. This is probably only of interest to those who work in this area such as the media, FOI practitioners and of limited interest to the public, so apologies if I’m getting boring! Contractor in the contract refers to Biffa Waste Services Limited. At 4.61.2.3 I couldn’t help but laugh at the bit about time for compliance for FOI requests considering Wirral Council’s track record and my recent decision notice from ICO on that matter.

The “absolute discretion” bit in 4.61.3 is very interesting as quite often local councils refuse to release information about companies and contracts on commercial sensitivity grounds saying well we’d like to give you this information but company X won’t let us.

Last Thursday (11th September 2014) Wirral Council’s Cabinet agreed to ask Kevin Adderley to enter into negotiations with Biffa over extending this ~£12 million/year contract from 2020 to 2027 without putting it out to tender. However an extra clause was added over value for money. Mr. Adderley was asked to report back to a future Cabinet meeting on the outcome of negotiations.

However the contract does state that if Wirral Council wish to extend the contract from 2020 to 2027 they don’t have to tell Biffa this until on or before 21st August 2019. So why the big rush other than to pander to Biffa’s commercial interests and damage Wirral Council’s?

Well from what was said at the Cabinet meeting Biffa Waste Services Limited have offered Wirral Council “incentives” on the current contract (which runs to 2020) if Wirral Council agree to a seven-year contract extension and don’t put it out to competitive tender when it expires in 2020.

Extending the contract by seven years is effectively making a decision that will tie the hands of future administrations (of whatever party or parties) at Wirral Council. However I’m sure (if officers are doing their job properly) that what I’ve just written is the kind of details that were in the exempt appendices for last Thursday’s Cabinet meeting. The Labour politicians on Wirral Council’s Cabinet decided that the public aren’t really supposed to know about it (which is why the press and public got chucked out of the public meeting before those appendices were decided despite the public interest test arguably being in favour of such stuff being in the public domain).

Another factor to consider is that from November 2014 Wirral Council will be under a legal duty to publish such contracts (we here have a copy of the very long contract as part of the 2013/14 audit but it would probably take me about a day of work just to publish a fraction of it as it is very, very, very long) and from November 2014 invoices. Hence I’m sure Biffa are keen to have it extended by seven years, before people like the Rt Hon Frank Field MP start referring to them again (see the last Birkenhead Constituency Committee meeting for that) and anyone kicks up more of a fuss! Oh dear, have I let an awful lot of cats out of the bag yet again?

======================================================================================================================

4.61 Freedom of Information and Data Protection

4.61.1 The Contractor acknowledges that the Council is subject to the requirements of the FOIA and the Environmental Information Regulations and shall assist and cooperate with the Council (at the Contractor’s expense) to enable the Council to comply with Information disclosure requirements.

4.61.2 The Contractor shall and shall procure that its sub-contractors shall:

4.61.2.1 Transfer a Request for Information to the Council as soon as practicable after receipt and in any event within two Working Days of receiving a Request for Information;

4.61.2.2 Provide the Council with a copy of all Information in its possession or power in the form that the Council requires within five Working Days (or such other period as the Council may specify) of the Council requesting that Information; and

4.61.2.3 Provide all necessary assistance as reasonably requested by the Council to enable the Council to respond to a Request for Information within the time for compliance set out in section 10 of the FOIA or Regulation 5(2) of the Environmental Information Regulations.

4.61.3 The Council shall be responsible for determining at its absolute discretion whether:-

4.61.3.1 The Information is exempt from disclosure under FOIA and the Environmental Information Regulations;

4.61.3.2 The Information is to be disclosed in response to a Request for Information, and

4.61.3.3 In no event shall the Contractor respond directly to a Request for Information unless expressly authorised to do so by the Council.

4.61.4 The Contractor acknowledge that the Council may, acting in accordance with the FOIA, or the Environmental Information Regulations disclose Information:-

4.61.4.1 Without consulting with the Contractor, or

4.61.4.2 Following consultation with the Contractor and having taken its views into account.

4.61.5 The Contractor acknowledges that any lists or schedules provided by it outlining Confidential Information are of indicative value only and that the Council may nevertheless be obliged to disclose Confidential Information in accordance with Clause 4.60.2.1.6.3.

4.61.6 The Contractor shall ensure that all information produced in the course of the Contract relating to the Contract is retained for disclosure and shall permit the Council to inspect such records as requested from time to time.

======================================================================================================================

Biffa Waste Services Limited contract Wirral Council page 59
Biffa Waste Services Limited contract Wirral Council page 59
Biffa Waste Services Limited contract Wirral Council page 25
Biffa Waste Services Limited contract Wirral Council page 25

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Biffa asks Wirral’s Cabinet for a 10 year extension to bins & street cleaning contract worth at least £120 million

Biffa asks Wirral’s Cabinet for a 10 year extension to bins & street cleaning contract worth at least £120 million

Biffa asks Wirral’s Cabinet for a 10 year extension to bins & street cleaning contract worth at least £120 million

                                                      

Biffa Waste Service Limited November 2013 Invoice Wirral Council £1036840.28
Biffa Waste Service Limited November 2013 Invoice Wirral Council £1036840.28
Biffa Waste Service Limited December 2013 Invoice Wirral Council £1032201.28
Biffa Waste Service Limited December 2013 Invoice Wirral Council £1032201.28
Biffa Waste Service Limited January 2014 Invoice Wirral Council £1032201.28
Biffa Waste Service Limited January 2014 Invoice Wirral Council £1032201.28

Above are three of the recent monthly invoices to Wirral Council from Biffa Waste Services Limited for November 2013 (£1,036,840.28), December 2013 (£1,032,201.28) and January 2014 (£1,032,201.28).

I did not request the invoices for other months during that financial year (2013/14), but I would assume that the other nine are for similar amounts of around a million pounds. So why am I writing about this and what does Biffa Waste Services Limited actually do for it’s ~£12 million it receives each year from the taxpayer?

Well as shown on the invoices it’s for collecting the bins, cleaning the streets and extra amounts for working on a Bank Holiday. I’ll be looking more closely at the current contract with Biffa Waste Services Limited (which runs to 2017) tomorrow morning (if all goes well).

However there is some political news on the Biffa front, in fact Wirral Council seems to be bolstering itself for a bit of bad press coverage judging by the Cabinet papers for tonight’s Cabinet meeting (only tonight if you happen to reading this on the 11th September 2014).

If you’re interested in reading the papers yourself on Wirral Council’s website, it’s the Streetscene Environment Services Contract Extension item which is item 4 on Cabinet’s agenda.

I remember Mark Smith (a Wirral Council officer who is Head of Environment and Regulation) getting a grilling by the Chair (Rt Hon Frank Field MP) at a recent Birkenhead Constituency Committee meeting about what the Rt Hon Frank Field MP seemed to see as a lack of openness and transparency in the area of how Wirral Council manages the Biffa contract.

In the Rt Hon Frank Field MP’s view (from my memory of the meeting) he wanted (rather reasonably some might say) to know exactly what the public were getting for the ~£12 million a year that the taxpayer pays Biffa Waste Services Limited through Wirral Council. Sadly there was no one present at the meeting to answer for Biffa Waste Services Limited and Mark Smith seemed to struggle a little to give the kind of answers that Rt Hon Frank Field MP seemed to want to hear. However moving on from the frustrations of Birkenhead’s MP/Chair of the Birkenhead Constituency Committee to more local politics (although isn’t all politics local)?

Rather helpfully Appendix 5 to the Streetscene Environment Services Contract Extension item contains the following two entries on the risk register (copied below):

Risk No Description of risk Risk category Risk Owner Gross likelihood Score Gross impact score Total Gross Score Net Likelihood Score Net Impact Score Total Net Score Proposed Controls Responsibility Target date RAG Status
1 District Audit scrutiny on decision process likely Legal / Regulatory Tara Dumas 3 4 12 3 2 6 Member decision based on thorough analysis of risks. Best value comparison work to be undertaken – Local benchmarking plus APSE/Audit commission comparison Update on market position sought from previous consultants contracted to review Biffa contract. Process to be reviewed by internal audit TD
TD
TD
MGa		 07/07/14
completed
07/07/14
07/07/14		 G
C
G
G
2 Negative political and
media attention		 Political/societal PR team – Kathryn Green 5 3 15 3 2 6 Proactive approach by PR with press releases Confirm offer not linked to service/workforce changes LF Post decision 31/5/2014 G
C

In other words, Wirral Council know (before any decision is formally made tonight to enter into negotiations) that it will cause all kinds of trouble. They’ve already decided (it seems) on a public relations line of telling the press it won’t lead to job losses/workforce changes and giving them the “gift” of a press release in the hope that most of the media will just print the press release more or less verbatim and not ask too many awkward questions about the matter.

They even know their external auditor (Grant Thornton) will be asking them a whole bunch of questions to do with it too but surprisingly there are even bigger risks than the media and Wirral Council’s auditors to tackle, although read the risk register at appendix 5 and hopefully you’ll see what I mean.

So how can I sum up what is proposed to be decided tonight quickly? The current contract will Biffa Waste Services Limited will end on March 2017.

The impression I get from reading between the lines of the Cabinet papers, (a lot of the detail has been kept deliberately secret by officers who are recommending to politicians to keep it secret too on grounds of commercial confidentiality) is that Biffa Waste Services Limited seemed to be somewhat concerned that if their multi-million pound 11 year contract ends on March 2017, that they would have to bid in a competitive tender against other companies and organisations for the new contract.

There’s then uncertainty (from Biffa’s perspective) over whether they would end up being the successful bidder or not. It’s called “competition” and is generally required for such large multi-million pound contracts because of all kinds of laws I won’t go into at this point and competition is therefore required for a whole bunch of good reasons.

So someone as Biffa Waste Services Limited has read through the contract they have with Wirral Council and found a caveat. There was a part in the contract that could extend it a further ten years (current prices of ~£12 million a year but yearly increases and variation are usually built-in). This contract covers “all household waste and recycling collections, street cleansing and fly tip removal, waste collection from schools and council offices and wheeled bin deliveries.”

All Biffa had to do to get a further ten years (at ~£12 million a year) was make a formal offer to Wirral Council (which they did) and have this agreed to by Wirral Council (which hasn’t happened yet with the earliest date expected being October 2014).

Due to the size of the amounts involved it has to be a decision made by politicians, specifically Wirral Council’s Cabinet and the councillor with responsibility for this area is the new(ish) Cabinet Member for Environment and Sustainability Councillor Bernie Mooney (who replaced Brian Kenny earlier this year when he lost an election in May to the Green Party councillor Pat Cleary).

However what’s in the currently exempt appendices?

Well appendix 1 covers the “value and suggested terms of the formal offer from Biffa in return for the Council extending the contract to 2027. In summary the proposal offers the Council a one-off saving split between 2014/15, 2015/16 and 2016/17 followed by a continued annual reduction in the core contract price throughout the remainder of the extended contract period to the equivalent value. Officers asked Biffa to clarify the benefits to Biffa if the contract extension was agreed.”

I’m not allowed to link to appendix 1 (as it’s currently a big secret and you’d get an “access denied” type message from Wirral Council’s website if I did), but as the language used by a Wirral Council officer is rather opaque, it has to boil down to how I imagine a summary of what Biffa offered Wirral Council … “give us a further ten years and we will give you very good price if you pick us. Our price is very reasonable, many savings to be had, very good price, you buy from us again we treat you well. We are very good supplier and will take your bins to tip and keep streets clean for another 10 years for a very reasonable price.”

Wirral Council officers asked Biffa to clarify what Biffa would get out of extending the contract a further ten years.

Biffa responded to this on the 10th February 2014. Again I’m not allowed to show you Biffa’s response either on the instructions of Wirral Council officers!

The summary of this response is again in rather opaque language “Biffa indicated that the savings they could offer arose from avoiding future procurement and mobilisation costs, the ability to re-finance their operations and a reduction in overheads due to the stable nature of the contract. The discount is not linked to any service changes.”

In other words Biffa are saying “grant us a monopoly, save us the cost of having to retender for the contract in 2017, Wirral Council will save money from having to retender the contract” (which is a bit of a debatable point really anyway considering the extra costs this will cause doing it this way) “and Biffa will be able to borrow money cheaper because we’ll have a longer contract.” To be honest I don’t agree entirely with Biffa’s point about overheads being significantly lower to justify this.

Another letter from Biffa (exempt appendix 3) is also currently being kept secret by Wirral Council officers (pending a decision by politicians). This letter is about an offer to redesign the fleet of bin lorries from 2017 to collect things such as food waste (to meet Wirral Council’s recycling targets).

However Biffa make it clear that this is absolutely Biffa’s final offer (well unless Wirral Council’s Cabinet say no to negotiations or no to the offer in October 2014 and Biffa have to bid for the new contract starting in 2017)!

Wirral Council officers seem very keen to have the Labour councillors on Wirral Council’s Cabinet agree to Biffa’s plan. “80p cheaper per a Wirral person than Liverpool” they state in the report, but strangely 15p more per a person than in Sefton!

Of course Wirral Council’s Cabinet could just choose to reject Biffa’s proposal and decide to bring the service in-house from 2017.

The recent street cleansing cuts to the contract, have been the source of both political and media attention in the recent past. However, what’s the officer’s recommendation?

Oh and before I get to that, Wirral Council asked Eunomia (are they consultants?) in 2012 to look at the Biffa contract, the consultants in fact suggested the contract should be retendered! Eunomia also suggested that if Wirral Council did agree to extend the contract by a further ten years than there should be changes to “contract clauses relating to indexation, labour cost inflation and future efficiency gains” which would be extremely sensible to do considering the current contract is linked to RPI (and let’s face it inflation is quite high)! However the Eunomia assessment is now two years out of date and things have changed somewhat since then.

As Wirral Council officers freely admit in 5.3.4 of this report, they don’t really know if this will save any money at all versus retendering the contract, it all just seems to be educated guesswork and unknown quantities.

The estimated savings have been listed, but surprisingly (and isn’t this usually the case?) not the increased costs (such as an increased audit bill from Grant Thornton for extra work).

It’s the report gets to “legal implications” that things start to get interesting!

Here’s a quote from 10.2 “The Legal colleagues have highlighted that it is necessary to limit the amount of material changes to the contract in order to minimise the risk of the Council being challenged on the legalities of the extension.”

In other words, do it right otherwise one of Biffa’s competitors, or in fact anyone could sue Wirral Council over how it was done.

Then entering into catch 22 territory the legal advice continues:

“Due consideration has been given to establishing whether the Biffa proposal offers Value for Money (Sections 4 and 5 refers) as required under the Council’s Contract Procedure Rules. However, it is important to note that the only decisive way to determine whether a more advantageous contract could be secured by the Council would be through retendering the contract.”

In other words, Wirral Council don’t know whether this saves them money without retendering the contract in 2017, but if they agree to Biffa’s proposal they won’t be retendering the contract in 2017 so they’ll never really know or be able to prove “value for money” to their external auditors Grant Thornton.

However let’s see, what do officers want? They want politicians to agree to them to enter into negotiations with Biffa, more specifically the Strategic Director of Regeneration and Environment (currently Kevin Adderley) and then report back to Cabinet no later than October 2014.

Personally (and this is just an opinion) I think politicians on the Cabinet will probably agree to enter into negotiations with Biffa tonight (even though Labour’s tendency in the past has been to bring back services in-house), if only just to keep their options open in October 2014. Quite what the Rt Hon Frank Field MP’s views on this latest development in the Biffa saga are at the time of writing unknown.

Coming up next today: What Wirral Council’s Cabinet is planning to do about Children’s Centres.

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