The agenda and reports for this meeting can be found on Wirral Council’s website and this blog post includes video of the meeting.
The Chair welcomed everybody to the meeting, after a short discussion about filming he asked for any declarations of interest or party whip. No declarations of interest or party whip were made. The minutes of the meetings held on the 14th February 2013 and on the 30th January were agreed.
Peter Timmins introduced the month 10 report on the overspend. He started by saying that they’d added £1 million to the budget of Adult Social Services, increasing the original overspend from £17 million to £18 million, however due to the spending freeze the overspend was down to just over £7 million, but that the month eleven report was just about to go to the Chief Officer’s Group which would add a further £200,000 reduction to the overspend.
Part 3 (page 9) of the report detailed the risks of overspends in adult and children’s social care and how they were in talks with Cheshire West and Chester Council about shared services. He felt they could do more on procurement to generate savings and clamp down on “rogue purchasing”.
Cllr Gilchrist asked when the report on bad debts would be reported? Peter Timmins said it was going to a Special Cabinet meeting on the April 18th and that it had led to some interesting discoveries about the Pension Fund. He said they were looking at the processes involved.
Cllr Gilchrist asked about the changes in month ten compared to month nine. Peter Timmins said he would give Cllr Gilchrist the budget book which showed three years budgets which he hoped to have ready by the middle of April as it was now in draft form. They had also done a budget training session for councillors and planned to do more of these and were also training officers in budget management with aids to budget management put on their website. He described sending officers to budget management training courses using the metaphor of sending sheep to be dipped.
In a change to the more detailed format, below are brief write ups of three meetings this week.
Sustainable Communities Overview and Scrutiny Committee 29th January 2013
There was a long presentation by Biffa, followed by questions from councillors. The meeting also discussed recycling, dog fouling enforcement, flytipping (including a recent rise in asbestos flytipping), managing highway structures (bridges, culverts etc), libraries, Wirral Heritage Strategy, food hygiene ratings, no cold calling zones and climate change.
Councillors asked Biffa about the recent missed bin collections and how the new changes (winter tyres and snow shoes) affected collections during the recent cold weather. On food hygiene the Food Standards Agency website was highlighted which shows the star rating for the 1,698 food businesses on the Wirral. A councillor was surprised at the nearly two hundred businesses on Wirral with a one star (which means major improvement necessary) or two star (which means improvement necessary) rating, however most businesses had a rating of four or five stars.
The increased use of volunteers in libraries was discussed and the problem of some households in areas at risking of flooding having problems obtaining insurance was also highlighted.
Council Excellence Overview and Scrutiny Committee 30th January 2013
Most of the meeting was a discussion about Wirral Council’s finances including measures to reduce this year’s overspend and how overspends in the past had been paid for by one-off measures that wouldn’t be available in future years. The investigation into Social Services debt was discussed also.
Audit and Risk Management Committee 31st January 2013
The HESPE Action Plan provoked discussion at this meeting. David Armstrong gave a verbal update on it and said that he’d written to all directors and acting directors for an update over the dates in the plan and had received no correspondence to say that they wouldn’t be able to stick to the timescales. The Acting Director of Technical Services had written to him stating there had been no interest from the private sector in consultancy work.
The Action Plan was being monitored by Fiona Johnstone’s department and was going to the Improvement Board and Council Excellence committee as well as being incorporated into Concerto. He assured people of the focus on it and that the actions would be followed through. Cllr Ron Abbey referred to it as a pantomime, saying “Did he or didn’t he?” and asked how much it had cost? Cllr Foulkes said that similar matters were not the remit of their committee, that there’d been two contrary reports, the Audit Commission report and the Penn report. He wanted continuing dialogue with the whistleblowers which he thought was the best way to deal with the matter. Cllr Ron Abbey said he would take that on board. Cllr Foulkes said they needed to find the common ground between the points in the Penn report and the action plan.
Cllr Green welcomed the reassurance, but wanted tests that the actions had been carried out. He said they’d had a range of reports that lessons had been learnt and a culture embedded, so it was useful to have it in writing. He referred to project management problems and who was supposed to be in charge of the Project Board and referred to issues with clarity, responsibility and project management.
Cllr Brighouse said he broadly endorsed the remarks, but the Penn report was ongoing as the recommendations and outcome were still to be resolved and agreed. He said it was appropriate to have some discussion covering the issues and whether there were any governance implications but it was “wrong to pretend there was nothing there”.
The Chair, Cllr Jim Crabtree said there’d be a further report next meeting.
There was also an update given (again by David Armstrong) on proposed changes to the gifts and hospitality/conflicts of interest procedures for officers.
The Council Excellence Overview and Scrutiny Committee was a special meeting with only one main agenda item which was to discuss the 2013/16 Budget proposals which are currently part of a consultation with the public (until 31st January 2013).
The Chair, Cllr John Hale said that in his view the Committee was without a lot of the information he would’ve liked on the Budget options, and that he was “not in agreement with the move to four yearly elections”. He also disagreed with the saving on Destination Marketing as this money “brought an awful lot of visitors to the Wirral” and had spin offs for businesses on the Wirral.
Cllr Phil Gilchrist (Lib Dem spokesperson) arrived and apologised for being late. The Chair asked Cllr Stuart Wittingham if he had any comments to make?
Cllr Wittingham said he was pleased that most of the savings were to the back office and that he wasn’t saying that the front line wouldn’t be affected. He had no comments to make on a four yearly election cycle but described it as a “substantial saving”.
The Chair said it was not a very substantial saving “at the cost of democracy” and that there was still “insufficient information”. He’d be moving to note matters with the exception of the four yearly elections that he was opposed to and the 100% cut to Destination Marketing, which he said supported major activities and brought in thousands of visitors to the Borough.
Cllr Hale had asked what the Pest Control reduction meant and that the answer given was that it would result in their staff being reduced from five to four. He said it also meant that the home insulation program which had only met 59% of its target wouldn’t be able to continue with the rest. However £50,000 would be kept in the Budget for fuel poverty.
Cllr Gilchrist said that previously when the Council had let people retire or take voluntary redundancy, there had been criteria that had had to be looked at such as the need to pass on their expertise or whether it would cause a problem for the service if they left, he asked if officers had discussed the rationale for restructuring?
The Chair asked Chris Hyams to answer the question.
She said the proposals were either for a restructure or service changes. In the case of a restructure, Chris Hyams said that they would seek volunteers first, but may need to move to compulsory redundancies. In order to maximise redeployment opportunities they would look for volunteers across the organisation. They couldn’t let people go where their jobs were required, but would be looking at things on a proposal by proposal basis.
Cllr Gilchrist made a further comment about redundancies.
Chris Hyams responded said the strategy had been to seek voluntary leavers, but ensuring they had the capacity in the services to let them go “at the appropriate time”. She gave the example of letting volunteers go in day services and redeploying people from residential to day services. However the voluntary leavers couldn’t leave until the redeployed workers were ready to move into their posts. She said they wanted to do it quick enough that they were not incurring the need for more savings, but at a time that was right taking into account their notice periods and with due consultation and process.
The Chair asked about suppliers.
The Wirral Council officer responded by saying, “Yeah Chair, thanks Chair, one of the one of the issues that had been identified through the work that the Local Government Association are doing with us with on the Improvement Plan is a weakness in procurement, how the Council procures its related goods and services. There are a number of processes that we can improve upon, one of the issues is that we have a purchase order system, but the majority of purchases don’t go through that purchase order system. So we believe that by improving the governance of that system to actually make it so that 90% goes through that purchase order system, we’ll be able to negotiate with suppliers and get a better deal. Hopefully the volume issue, we will get a better deal.
We’re also looking at how we actually manage our procurement function. One of the things that we’re doing is basically is to have overall category managers, which have an area of spend rather than the generic purchasing officers. A category manager would have an area of spend for instance Adult Social Services and become knowledgeable in that field and achieve savings with suppliers. We feel that the evidence from other councils is that we’re not getting value for money now just now and that the savings are achievable if we can actually both improve our processes and improve maybe we carry out procurement with these category managers.
It’s a process that’s used in the private sector and maybe we’ll use it in the public sector. We’re looking at best practice elsewhere, we’re getting advice both from other Councils and from the Local Government Association, now we actually need a step change in getting more out of our procurement activity because clearly with the financial challenges that the Council’s facing we’ve got to get more for less in effect and we believe that we can actually achieve the savings in procurement.”
The Council Excellence Overview and Scrutiny Committee agreed (except for Cllr Gilchrist) to recommend to Council Scheme 1 to replace Council Tax Benefit which from April 2013 will be called Local Council Tax Support Scheme.
Those who are now in receipt of a state pension, war pension, disability premium or disabled child premium won’t see any change to their current entitlement. Working age claimants (apart from those groups just mentioned) will find the most Council Tax Support they can receive will be limited to 78% of the Council Tax liability.
Council Tax Support will only be awarded to those with savings under £6,000, rather than the current savings limit of under £16,000. Backdated claims will be stopped and the flat-rate Non-Dependant deduction set to £9.90 per a week.
Wirral Council’s Cabinet have also considered the proposed scheme and also recommended Scheme 1 to Council.
Normally the papers for a meeting have to be (it’s a legal requirement) published five days before a meeting on Wirral Council’s website expect in certain exceptional circumstances.
However when your report is the snappily titled Revenue Monitoring 2012/13 Month 4 (July 2012) detailing exactly why Wirral Council has a projected £14.4 million overspend (or at least it did at the end of July 2012, let’s hope it’s not more now two months later), it’s understandable why somebody wouldn’t want this going out with the regular agenda through the post to councillors on the Council Excellence Overview and Scrutiny Committee before the next meeting on Monday.
In fact publishing on Friday afternoon is a time-honoured way to “bury bad news”, and believe me the news is bad and explains the matters that led to the spending freeze about three weeks ago. By the time anybody has read it and has any questions, most of the relevant Monday to Friday 9-5 Council officers will be enjoying the weekend.
The advantage of course to the online version is it’s in colour, whereas to save costs the Council prints things in black and white (although obviously the lucky few councillors recently given iPads will be able to view it in colour).
However let’s have a look at the highlights and the slightly strange use of statistics and selective quoting of facts. The overspend for months 1 and 2 of Financial Year 2012/2013 seem to be missing from the graph, with no explanation given in the report as to why. However the projected overspends don’t seem to originate from the Department of Finance (who predict a £2.5 million overspend), but the two “usual subjects” of DASS (Department of Adult Social Services) at over £10 million of overspend and CYPD (Children and Young Peoples Department) at around £5 million.
Even the Department of Law, HR and Asset Management headed during some of this period by Bill Norman is projecting a £2 million overspend.
The report of course mentioned that the Labour Cabinet’s response this year has been to spend a further £677,000.
So how does this breakdown compare to what the Budget should be (according to report anyway)? The answer in the report is £3 million over budget on employee spend, £1.3 million overspend on premises and an £11.5 million overspend on “supplies and services”.
Well apart from about seven minutes of exempt session, I was present during the whole of the Council Excellence meeting last night.
During those seven minutes (spent in the lobby), the Deputy Mayor of Wirral, Cllr Gerry Ellis arrived (the picture below isn’t from last night but a recent Area Forum that he chaired).
After the Deputy Mayor left to a Mayor’s dinner for Wirral Award recipients, Mike Collins of the Wirral Council’s Community Patrol arrived with a 13-year old youth in tow, who was there to apologise to the a member of the facilities staff because it was alleged he (that is the youth, rather than Mr. Collins or the Deputy Mayor) had thrown stones at cars in the car park.
Mike Collins, Community Patrol said to the youth, “I’m not going to do anything else today, if I come across you again, or the staff have a problem with you again, I’ll be knocking on your door and I’ll be knocking on the school’s door so I’ll speak to the headteacher as well if anything happens with you. Go on and tell your mates to do the same.”
Chris Hyams continued by saying that the restructures had gone to the Employment & Appointments Committee and in the Finance department there had been a number of new posts since the Early Voluntary Redundancy program started.
She referred councillors to paragraph 7.1 as there was an error in the number given for new posts. Chris Hyams said the report states 100, but it should be 104 due to the 4 posts in the Law, Human Resources and Asset Management department.
Another error was also highlighted by Chris Hyams as a 3 should read 7. She did point out that some new posts are not related to Early Voluntary Redundancy/Voluntary Severance and out of the 104 new posts, 81 were related to the Early Voluntary Redundancy/Voluntary Severance program.
Chris Hyams said that the posts had been advertised internally, with “strict vacancy controls”. Once they had tried internal recruitment, then they would go externally. The Finance Department had a mix of internal and external advertising as there were risks in failure to appointing to positions such as service provision being put at risk. There was a process of remodelling which explains why posts had been vacated, but then filled.
Cllr Phil Gilchrist asked about Metro, referred to in 6.2 (paragraph 2) and a meeting in September. He said he’d also like a response to further questions, an update over the deleted posts and why some people had left when they oughtn’t to while their job was still there?
Chris Hyams said yes the post was required, but they were let go at their request. Metro provided a service to schools and worked differently. There had been a review of the service and requirements which had led to employees being replaced and less temporary staff.
She talked about the changes and remodelling as well as the Early Voluntary Retirement/Voluntary Severance process. Chris Hyams referred to the savings and number of employees as well as the £2 million for remodelling. She said that the £2 million was to support management and remodelling of services delivered. She said that departments made bids to the Strategic Change Programme Board for new posts or to add money to existing posts (such as changing them to a higher grade post).
Cllr Alan Brighouse (Vice-Chair) arrives.
Chris Hyams referred to paragraph 5 and the issue of people on part-time hours or subject to a job share. She said they had deleted 719 FTE equivalent posts, which equated to 765 FTE posts deleted. Chris Hyams said it was a “work in progress”, as the information had to go on the system and be signed off.
She said paragraph 6 dealt with refilled posts, where people had been moved into a post. This had been part of the decision-making where people had been allowed to leave. If they had a person they couldn’t lose, another person would be “bumped” into a post. This didn’t lead to a 100% saving, but could be 80% or 70% as the person moving posts led to a saving in the post they left behind. She said this was complicated and referred to the 104 new posts. People had been asked to leave because of the restructure, but there was a “one bump rule” which allowed another post to be saved. The bumps exception was Metro in the Children and Young People’s Department.
The Chair welcomed everybody to the meeting, after a short discussion about filming he asked for any declarations of interest or party whip. No declarations of interest or party whip were made. The minutes of the meetings held on the 14th February 2013 and on the 30th January were agreed.
Peter Timmins introduced the month 10 report on the overspend. He started by saying that they’d added £1 million to the budget of Adult Social Services, increasing the original overspend from £17 million to £18 million, however due to the spending freeze the overspend was down to just over £7 million, but that the month eleven report was just about to go to the Chief Officer’s Group which would add a further £200,000 reduction to the overspend.
Cllr Gilchrist asked when the report on bad debts would be reported? Peter Timmins said it was going to a Special Cabinet meeting on the April 18th and that it had led to some interesting discoveries about the Pension Fund. He said they were looking at the processes involved.
