Month: December 2013

Wirral Council plays the Regeneration Game (badly)

Wirral Council plays the Regeneration Game (badly)

Wirral Council plays the Regeneration Game (badly)

                                

Just before Christmas started Wirral Leaks asked for a guide to the BIG Fund/ISUS/Working Neighbourhood investigation. Well where to start?

BIG stands for business investment grants. ISUS stands for intensive start-up support.

BIG is not to be confused with Think Big (marketed under the rather terrible catchphrase Think Big! Think Wirral). Think BIG was for grants of over £20,000 and as far as I know isn’t included in the whistleblowing allegations. Think BIG had a budget of £300k a year in Wirral Council’s budget from 2009/10 and is now called the Think Big Investment Fund.

Business Investment Grants (for under £20,000) were awarded to companies that were successful in applying for a business investment grant. Grant Thornton (who are also Wirral Council’s auditors) were asked in October 2012 for a quotation for work to look into the whistleblowers’ concerns. As a result of this work, two reports were produced and sent to Wirral Council. One report was on BIG and the other on ISUS.

In response to a question from Nigel Hobro to Cllr Phil Davies at the full Council meeting in July, Wirral Council published the summary of Grant Thornton’s report into the BIG program.

I made a Freedom of Information request for Grant Thornton’s ISUS report in August 2013. On the 23rd September 2013 Wirral Council stated that “the report, which has been reported previously, has been handed over to the Police for their consideration, in accordance with the recommendations contained within the report” and refused providing the report using a s.30 exemption (Investigations and Proceedings conducted by Public Authorities).

I asked for an internal review as the investigation had been carried out by Grant Thornton UK LLP (who isn’t a public authority). Another factor I pointed out was that Wirral Council weren’t bringing criminal proceedings, but instead passing it to the police. I also pointed out that s.30 was a qualified exemption and subject to a public interest test (which Wirral Council hadn’t included in its original reply).

Wirral Council’s response to the internal review was that they still refused to release the report. However they did provide further detail as to why. Firstly they stated that the investigation into the BIG and ISUS program was done independently of Grant Thornton’s role as Wirral Council’s auditors. This was to “review the earlier investigation conducted by the authority’s Internal Audit section and to conduct their own investigation into these allegations” and referred to an assurance by Grant Thornton that their work on BIG & ISUS was independent to that of their work auditing Wirral Council’s accounts.

Wirral Council regarded the work that Grant Thornton had done on BIG and ISUS as on Wirral Council’s behalf, therefore in Wirral Council’s view a s.30 exemption still applied. Stating this in English only a person with a legal background would write “as such Section 30 of the Freedom of Information Act 2000 is still appropriate as the investigation was conducted by an organisation acting on behalf of the organisation.” Despite referring it to the police, Wirral Council gave the impression they hadn’t made their minds up as to whether they would start a criminal prosecution themselves. However if they hadn’t made their mind up already not to institute criminal proceedings on this why refer it to the police?

In a concession though, they did agree with me that the original refusal should have included Wirral Council considering the public interest test. The person doing the internal review did carry out a public interest test (of sorts).

They gave many reasons against disclosure (and none for). The reasons they gave were that they regarding it being in the public interest not to disclose the report were that “the investigatory process is safeguarded“, that it would “undermine an investigation/prosecution of criminal matters“, “dissuade members of the public from reporting potential or actual wrongdoings“, “undermine the prosecution process and the role of the criminal courts” and “could prejudice the right to a fair trial“.

However, there is more than this in this story. As referred to in this previous blog post headlined “Million pound contract between Wirral Council and Enterprise Solutions (NW) Ltd for ISUS scheme was never signed” and referred to at 1.16 to 1.22 of Grant Thornton’s report the contract between Wirral Council and Enterprise Solutions Limited (also known as Wirral Biz) was never signed (a copy of the unsigned contract is linked to from that blog post).

Therefore Enterprise Solutions (NW) Ltd don’t regard it as a binding contract. Enterprise Solutions (NW) Ltd are quoted in Grant Thornton’s report as stating in a letter to Wirral Council from December 2012 “this company has nothing to hide in relation to its involvement in any of the above programmes [one of which was the BIG programme] on which it provided services. We are therefore prepared to grant access on the basis requested, on the understanding that your costs of the exercise are borne by the Council.”

Despite this commitment by Enterprise Solutions (NW) Ltd to Wirral Council by letter in December 2012, that they had “nothing to hide” Grant Thornton state in 1.21 of their report that “we have not been given access to the documentation retained by the company concerning the services it provided under the BIG programme and have, therefore, been unable to discuss these with Enterprise Solutions.”

Complicating the matter further, Wirral Council was also in receipt of money from the (since abolished) North West Development Agency in the form of grants. This was for the ISUS (intensive startup side of things). The first ninety pages of the contract with the North West Development Agency is here and a further thirty-six pages here.

The North West Development Agency money given to Wirral Council under the terms in the contract (one hundred and twenty-six pages isn’t the whole contract as there were pages on publicity requirements I haven’t scanned in yet) came from Europe. Just to complicate things even further, Wirral Council also used Working Neighbourhood Funds money to fund these programs.

The whistleblowers’ concerns were that companies that didn’t qualify for grants were given them. On the BIG side, applications were first reviewed by the BIG Panel then the award of the grants were agreed by Wirral Council’s Cabinet (not part of public meetings of Cabinet but in private after the press and public were excluded) due to “commercial confidentiality“.

Grant Thornton looked into the applications of six companies that had applied for business investment grants. In five of these they found “financial anomalies” which were not explained to the BIG Panels. Four of these five were “significant anomalies” which had not been brought to the BIG Panel’s attention. The types of anomalies are outlined in 2.33 but ranged from accounts that indicated that the applicant had paid unlawful dividends (contrary to the Companies Acts) to balance sheets were one year’s opening balance didn’t match the previous year’s closing balance.

One applicant had included a £500 grant from Wirral Council in its accounts, which had been received four months before the accounting period that the accounts covered. Grant Thornton recommended that out of the six applications it looked at that Wirral Council should claw back the grant to the company referred to as BIG6 and refer that application to the police (which happened at some point earlier this year).

I asked Merseyside Police some questions in September about their investigation in September. The reply I got from a Detective Chief Inspector Gareth Thompson was “This matter is currently in the hands of Wirral Borough Council and any requests for information you have should be directed to them, perhaps by way of a Fredom of Information enquiry” (yes freedom is spelt incorrectly in the reply, but to be fair to Detective Chief Inspector Gareth Thompson I would guess that freedom is a word used very rarely by police officers).

This blog post contains a transcript of the answer given to Nigel Hobro by Cllr Phil Davies back in July 2013.

So who knows what’ll happen next in this overly complicated saga? Who knows? Certainly my attempts to make inquiries have been stonewalled (apart from the contracts which I’ve published). However there is an unconfirmed rumour that DCLG (the Department for Communities and Local Government) are going to clawback grant money from Wirral Council in 2014 which could come to a six-figure amount.

So there you have it, nearly everything I know about the BIG/ISUS saga and Wirral Council.

If you click on any of these buttons below, you’ll be doing me a favour by sharing this article with other people. Thanks:

Secrets about Wirral Council’s Birkenhead Town Centre Regeneration revealed

Secrets revealed about Wirral Council’s Birkenhead Town Centre Regeneration plans and Neptune

Secrets revealed about Wirral Council’s Birkenhead Town Centre Regeneration plans and Neptune

                             

Indicative illustration of Neptune Development Limited’s masterplan for Birkenhead Town Centre
Indicative illustration of Neptune Development Limited’s masterplan for Birkenhead Town Centre

Earlier this year I made a Freedom of Information request for the procurement advice that Wirral Council received from Peter Oldham QC and also Weightmans’ partner Sean Crotty about the regeneration of Birkenhead Town Centre.

A Rosemary Lyon (one of Wirral Council’s in-house solicitors) refused this request on grounds of commercial confidentiality (its own and other third parties). She stated that providing the information would “adversely affect its [Wirral Council’s] bargaining position concerning potential regeneration of Birkenhead Town Centre which would result in less effective use of public money” and “make it less likely that companies or individuals would provide the Council with commercially sensitive information in the future and consequently undermine the ability of the Council to fulfil its role”. They even went so far as to claim that releasing the information “would adversely affect the course of justice”.

However, this blog post is the story behind what went on behind the scenes that Wirral Council clearly (according to the response to my Freedom of Information Act request) didn’t want to be disclosed to the public or written about in the media for reasons I will go into below.

On the 16th July 2013, the Leader of Wirral Council Cllr Phil Davies (under delegated decision making powers meaning that he made the decision on his own) gave his agreement to a “preferred development agreement” with Neptune Developments Limited to “allow them to work up a comprehensive redevelopment proposal for Birkenhead Town Centre incorporating Council owned land on Europa Boulevard and involving the re-modelling and offer of Birkenhead Market”.

In the report seen by Cllr Phil Davies before reaching his decision reference was made to “a commitment to develop a clear master plan for Birkenhead Town Centre” in the 2013/16 Corporate Plan. Reference was also made to the previous offer to Wirral Council in 2010 by William Tar Developments to build a casino on two out of three plots of land owned by the Council on Europa Boulevard. That offer was rejected in September 2010.

However what’s not been known widely by the public until now is that “At the same time and in response to the marketing exercise Neptune Developments Limited (NDL) submitted a proposal requesting that the Council move away from disposing of the sites separately and instead work with them to develop a wider regeneration scheme for Birkenhead. NDL had already secured an interest on a vacant site on Conway Street and they suggested that this coupled with Council owned land on Europa Boulevard could be combined to allow a more comprehensive redevelopment scheme to be worked up and in turn would give a far greater regeneration impact than if the sites were developed separately” and that “negotiations have been continuing with NDL since the completion of the marketing exercise”.

Detailed below is Neptune’s proposal,

“Neptune proposes that the project is taken forward on the basis of a two stage agreement. The first, which is the subject of this Report, will involve granting NDL Preferred Developer Status which will be extendible to a period of 12 months and will be subject to NDL meeting the following performance targets:


  • Work up the Master-plan into a detailed implementation strategy for approval by the Council

  • Working with the Council, NDL will develop proposals which will reposition the town as a retail and leisure destination

  • NDL will negotiate further site acquisitions if necessary to deliver the agreed strategy.”

Subject to securing Members (Ed – Members means councillors) approval to the Strategy and Master-plan NDL would then be required to enter into a second Conditional Development Agreement which would commit them, at their own risk, to work up the proposals into a position were they could be implemented and to deliver the returns that are needed to secure the wider regeneration of this part of the Town.

It is proposed that the Conditional Development Agreement with NDL will be structured to ensure the Council receives the best value obtainable for the 3 sites on Europa Boulevard which will be determined by an independent valuation and all works will be undertaken on an open book basis with NDL working on a fixed developer return on cost which varies depending on the nature of the risk.”

In a section titled “Other options considered” it’s basically stated that no other options were considered because NDL has an interest in the land needed to build Birkenhead Market on once its moved.

“An initial assessment of the NDL proposals confirms that if delivered the scheme will have the potential to revitalise an important part of Birkenhead Town centre delivering a far greater regeneration impact than if the sites identified in this report were developed out separately. No other options have therefore been considered as NDL has already secured an interest in the balance of the land that is needed to deliver the re-provided market.”

The section on consultation states this “There will be a need to carry out extensive consultation on the scheme prior and during the detailed planning process. This will be carried out jointly between the Council and NDL.”

The section on legal implications refers to the advice that my Freedom of Information request in September was about (and refused). Once again Members means councillors.

“7.1 In the event that Members want to pursue this proposal and to ensure that it is compliant with current EU procurement law, Officers have sought advice from Weightmans LLP and Counsel about its legality.

7.2 The advice has now been received and it concludes that the Council would at this stage be able to enter into a Stage 1 Preferred Development Agreement on the proviso that a final test of lawfulness is carried out when the Stage 1 work has been completed and the detailed arrangements can be assessed.

7.3 NDL is aware of this advice and would be prepared to complete the first stage obligations at risk to allow the final lawfulness test to be undertaken when the scheme has been fully worked up.”

In other words Wirral Council’s happy to pass on the advice it received (at a cost of £7,404 of taxpayer’s money) to Neptune Development Limited to help them in a commercial venture as it may result in Wirral Council receiving money in the future for land in Birkenhead that it doesn’t want.

According to this article in the Wirral Globe in July 2013 Wirral Council wants to rebuild Birkenhead Market and move it.

Neptune Development Limited clearly as they have “already secured an interest on a vacant site on Conway Street” have a commercial interest in any master plan proposals and would be able to “negotiate further site acquisitions” in advance of the master plan becoming public knowledge.

Doesn’t this all sum up how Wirral Council tries to operate though and considering the public interest in the regeneration of Birkenhead Town Centre being done in accordance with EU procurement law do you dear reader think I should make a further Freedom of Information request to Wirral Council for the advice they received from Peter Oldham QC and Sean Crotty of Weightmans in relation to this matter in the hope that they would provide it this time?

P.S. If anyone would like to have a stab at translating ”all works will be undertaken on an open book basis with NDL working on a fixed developer return on cost which varies depending on the nature of the risk” into plain English that can be understood by the average person please leave a comment!

If you click on any of these buttons below, you’ll be doing me a favour by sharing this article with other people. Thanks:

Cllr Williams “lack of personal accountability for the numerous errors of judgement made by officers & councillors”

Cllr Williams “lack of personal accountability for the numerous errors of judgement made by officers & councillors”

Cllr Williams “lack of personal accountability for the numerous errors of judgement made by officers & councillors”

                   

Please accept YouTube cookies to play this video. By accepting you will be accessing content from YouTube, a service provided by an external third party.

YouTube privacy policy

If you accept this notice, your choice will be saved and the page will refresh.

Near the end of the last Council meeting, after most people in the public gallery had left, Council decided to remove the guillotine (had they not done so it would’ve meant going straight to a vote on the motion and amendment without any speeches) for the movers and seconders of the motion on the Improvement Board and the movers and seconders of the amendment on that motion. If you’re not familiar with the conventions of how politicians are referred to in the language of Wirral Council just substitute Members in her speech for councillors.

Cllr Pat Williams (as the seconder of the Lib Dem amendment) made a speech on Wirral Council’s “improvement journey” (a phrase I dislike but couldn’t think of anything better) which can be heard starting at 3:58 on the video clip above.

Cllr Pat Williams (Deputy Leader of the Liberal Democrat Group): Thank you Mr. Mayor. I know it’s the spirit of peace and goodwill but in my opinion the Notice of Motion is too congratulatory and ignores the views expressed at the public meeting on the Improvement Board.

Quite clearly there are still unresolved issues of ongoing concern to the public. There is also a lack of personal accountability for the numerous errors of judgement made by officers and councillors during the period which led to the involvement of the Improvement Board.

To be proud of the quickness of the improvement of any Council in the country is seen as a badge of honour. The fact that this Council was in such a dreadful situation that there was a need for the Improvement Board’s involvement seems to be just accepted without any humility or shame.

Of course any improvement is welcome and to be fair to certain people and Members of the Council, particularly newer Members I don’t doubt their sincerity in wishing that Council becomes an outstanding Council.

However some longer established councillors are going to take some time to be convinced that Wirral Council is on the right track and is going to be willing to keep on the right track and that lessons have been learned by those who got us into the mess in the first place.

Labour encouraged Members to fully engage in the policy and performance committees and visioning events. The committees I believe in part are too big, particularly the Family and Wellbeing Committee and have far to wide an area of responsibility to allow full engagement in monitoring what is going on in various service areas.

The scrutiny reviews which are going to be undertaken have been interesting and very worthwhile. Hopefully they will influence future policy making. However to be done properly, they are very time consuming. In the meantime the ongoing work of the Council is not in my opinion being properly monitored.

The need for much more improvement is necessary. It must not be forgotten that Council exists to serve the people of Wirral. It is so easy to get bogged down in policies and procedures, but if they are not in the best interests of the people that they represent they are not worth the paper they are written on.

And of course Mr. Mayor, we must always consider the well being of staff and ensure that they are treated fairly through this period of ongoing change so that we can all work together to everyone’s mutual benefit.

I would say to the Administration “Good try, but could do better” and we’ll look for more improvements for when the Improvement Board come back and see has actually been achieved. Thank you.

If you click on any of these buttons below, you’ll be doing me a favour by sharing this article with other people. Thanks:

Wirral Council Christmas Question Time (Bah! Humbug! Edition)

Wirral Council Christmas Question Time (Bah! Humbug! Edition)

Wirral Council Christmas Question Time (Bah! Humbug! Edition)

                      

Please accept YouTube cookies to play this video. By accepting you will be accessing content from YouTube, a service provided by an external third party.

YouTube privacy policy

If you accept this notice, your choice will be saved and the page will refresh.

As it’s Christmas Day on the day I write this I thought I’d start first with the question most related to Christmas from Cllr Mike Hornby to Cllr Harry Smith (Cabinet Member for Highways and Transportation) which starts at 0:46 in the video above.

Cllr Mike Hornby, Conservative (Greasby, Frankby and Irby): Thank you Mr. Mayor. Errm, my question to Councillor Harry Smith who doesn’t seem to able to hear me, can you hear me?

Cllr Harry Smith, Cabinet Member for Highways and Transportation: Just about.

Cllr Mike Hornby, Conservative (Greasby, Frankby and Irby): I shall speak up. Is he aware that a large number of small children in my ward are greatly saddened when they learnt that Santa will not be coming to turn on their lights next year? Is he further aware that the once…

Mayor Cllr Dave Mitchell: Is that in relation to the report? Highway services contract, how does that relate to the report? Can I just stop you there and say that I’ve had the great pleasure and I’m sure my Deputy will follow the line we’ve continued for many years regarding the Mayor who’s attended an awful lot of occasions like this where he goes and switches lights on.

Cllr Harry Smith, Cabinet Member for Highways and Transportation: Mr Mayor, Mr Mayor can I just say?

Cllr Mike Hornby, Conservative (Greasby, Frankby and Irby): Mr Mayor, I..

Mayor Cllr Dave Mitchell: Just …

Cllr Harry Smith, Cabinet Member for Highways and Transportation: Allow me to say, sorry go on.

Mayor Cllr Dave Mitchell: Please relate your questions to the report.

Cllr Mike Hornby, Conservative (Greasby, Frankby and Irby): I will make a comment. Is Councillor Smith aware that the once jolly Harry is now being referred to as Ebenezer Smith? However, however will you not agree that it is not too late to change any thoughts he has in mind on this matter and that he should become like the Dickens character the spirit of Christmas yet to come?

Mayor Cllr Dave Mitchell: I would like you to try and answer that one.

Cllr Harry Smith, Cabinet Member for Highways and Transportation: Thank you. Err, Mr Mayor the Christmas tree lighting program is no longer part of my portfolio. It’s been dished out to the areas a long time ago and I think really what you have now is the area committees, which will may have the money to afford a program such as that or you could as Claughton and other areas have done approach the local business people who may well be ready to pay for the lighting.

Mayor Cllr Dave Mitchell: Thank you very much for that.

Cllr Harry Smith, Cabinet Member for Highways and Transportation: Mr Mayor, my children, it’s well been known that I am Mr Humble if you know what I mean.

Mayor Cllr Dave Mitchell: That report needs to be noted.

If you click on any of these buttons below, you’ll be doing me a favour by sharing this article with other people. Thanks:

EXCLUSIVE: Letter from Cllr Phil Davies to Cllr Jeff Green about “Wirralgate”

EXCLUSIVE: Letter from Cllr Phil Davies to Cllr Jeff Green about “Wirralgate”

EXCLUSIVE: Letter from Cllr Phil Davies to Cllr Jeff Green about “Wirralgate”

                         

Wirral Council logo

Please reply to:

Councillor Philip L Davies
Leader of Wirral Council

Town Hall, Brighton Street
Wallasey, Wirral
Merseyside, CH44 8ED
Telephone: 0151-691 8539
Fax: 0151-691-2887
Email: phildavies@wirral.gov.uk
Date: 17 December 2013

Councillor J Green
Leader of the Conservative Group
Wallasey Town Hall
Brighton Street
Wallasey
WIRRAL       CH44 8ED

my ref PD0012/DLK

Dear Jeff,

I write in response to your question at Council. I will also copy this response to all Members and ask for it to be published as an appendix to the Council minutes.

A group of individuals approached me about this matter. The individuals did not wish to make a formal complaint regarding the comments allegedly made by one of my Senior Members regarding a Senior Council Officer. However I am absolutely committed to ensuring that all matters of concern are properly investigated and so chose to immediately refer the matter to the Chief Executive.

The Chief Executive instructed the Strategic Director for Transformation and Resources, in his position as Deputy Monitoring Officer, to conduct an investigation and an Independent Investigator was appointed.

The Senior Officer concerned does not wish the investigation report to be made public, and I intend to respect their wishes. However if you would like to see a copy I will ask the Chief Executive to make it available to you. I intend to make the same offer to the Leader of the Liberal Democrats. I have been informed that you have been briefed previously regarding the outcome of that investigation however for clarity I will outline the conclusions.

The Independent Investigator wrote on two occasions to the individuals who had brought this matter to my attention, however they refused to cooperate. All other concerned parties were interviewed, with external legal advisors present. No evidence was made available to the investigation to substantiate a serious allegation regarding inappropriate language.

The Senior Member concerned did make clear that he had made adverse comment regarding a Senior Officer, comments he regrets. The Investigation therefore found there had been a breach of the Council’s Code of Conduct. It concluded that an apology to the Officer concerned and a conciliation process was appropriate. At the request of the Senior Officer the matter has been dealt with in a confidential manner.

We have discussed the issue of improving the culture of this Council and I believe that both myself as Leader, and you as Leader of the Opposition have a crucial role to play in this. I have stated publicly, at Improvement Board and elsewhere, that the number one priority for this Council over the coming months must be to address this once and for all. I do not believe this is a matter for party politics, our staff and the residents of Wirral deserve and expect us to take a lead.

I would therefore again urge you that if you have any evidence of wrong doing, or can encourage others to supply any evidence that exists of wrongdoing, that you work with me to bring this to light. I promise that if this happens a further robust investigation will take place.

Yours sincerely,

Cllr Phil Davies signature

Councillor Phil Davies

If you click on any of these buttons below, you’ll be doing me a favour by sharing this article with other people. Thanks: