As the costs of the new trains rise, Merseytravel’s lawyers buy drinks and you’re paying for it (as well as taxis, wi-fi on trains and other expenses)!

As the costs of the new trains rise, Merseytravel’s lawyers buy drinks and you’re paying for it (as well as taxis, wi-fi on trains and other expenses)!

As the costs of the new trains rise, Merseytravel’s lawyers buy drinks and you’re paying for it (as well as taxis, wi-fi on trains and other expenses)!

                                          

A picture of one of the new trains ordered by Merseytravel from Stadler
A picture of one of the new trains ordered by Merseytravel from Stadler

Last Friday, Merseytravel answered a FOI request of mine for various invoices.
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Why are Bombardier suing Merseytravel over the contract for new trains?

Why are Bombardier suing Merseytravel over the contract for new trains?

Why are Bombardier suing Merseytravel over the contract for new trains?

                                           

Councillor Steve Foulkes (Lead Member for Finance and Organisational Development) (left) at a Merseytravel Committee meeting
Councillor Steve Foulkes (Lead Member for Finance and Organisational Development) (left) at a Merseytravel Committee meeting

Edited 26.11.17 to include link to Hansard report of parliamentary debate and also text of first two pages of Particulars of Claim.

I’ve written previously about the large sum that Merseytravel is spending to defend a legal challenge brought by Bombardier over the procurement of new trains on the Merseyrail network.

You can read a decision by The Hon Mr Justice Coulson as to whether the Particulars of Claim are confidential here. That decision decides that the Particulars of Claim are not confidential.
Continue reading “Why are Bombardier suing Merseytravel over the contract for new trains?”

Wirral Council’s councillors decided on backdated pay rises for 4 councillors costing an extra £34,226 a year!

Wirral Council’s councillors decided on backdated pay rises for 4 councillors costing an extra £34,226 a year!

Wirral Council’s councillors decided on backdated pay rises for 4 councillors costing an extra £34,226 a year!

                                          

Councillor Steve Foulkes (centre) 16th October 2017 voting to give himself a backdated £10,108 pay rise
Councillor Steve Foulkes (centre) 16th October 2017 voting to give himself a backdated £10,108 pay rise

Wirral Council councillors on Monday evening voted to give four councillors a backdated pay rise costing Wirral Council an extra £34,226 a year.

Councillors from Wirral Council (Councillors Abbey, Foulkes, Rowlands and Jerry Williams) on the Liverpool City Region Combined Authority Transport Committee (formerly called the Merseytravel Committee) will now receive a backdated basic allowance for their work on the Transport Committee annually of £5,675 each.

On top of the basic allowance of £5,675 (backdated to May) three councillors received extra amounts too. Cllr Les Rowlands received an extra £2,660 as Opposition Spokesperson, Cllr Steve Foulkes an extra £4,433 as Lead Member for Finance and Organisational Development and Cllr Ron Abbey an extra £4,433 as Lead Member for Bus.

A report of the Independent Panel on Member’s Allowances stated that prior to May “the allowances paid to the four Wirral Members were paid by the Council and reimbursed by Merseytravel” but went on to explain that after May 2017 Merseytravel would no longer do this and it would become a decision for individual councils.

Despite a legal requirement to publish the total amounts Wirral Council pays to individual councillors as soon as reasonably practicable after the end of a year it appears from this page on Wirral Council’s website that it has not yet done so for the 2016-17 year.

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Council (Wirral Council) 16th October 2017 Agenda item 11C Members Allowance Scheme

Earlier in the same public meeting, councillors heard from UNISON trade union representative Paddy Cleary who supported a Notice of Motion that called for the “immediate end of public sector pay restraint”.

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What are Merseytravel’s legal fees to defend a legal challenge to the £272 million rolling stock contract?

What are Merseytravel’s legal fees to defend a legal challenge to the £272 million rolling stock contract?

What are Merseytravel’s legal fees to defend a legal challenge to the £272 million rolling stock contract?

                                     

During the 2016-17 audit (which covers the start of April 2016 to the end of March 2017), I requested to inspect various invoices paid by Merseytravel and the Liverpool City Region Combined Authority and have since picked up copies from their headquarters.

In December 2016, a large rolling stock contract (for new trains) was agreed by councillors on the Liverpool City Region Combined Authority to be awarded to Stadler Bussnang AG. Stadler Bussnang AG will charge £272,424,952.00 for the new trains.

An unsuccessful bidder (Bombardier) brought a challenge to how the procurement decision had been arrived at and large invoices for legal work from DLA Piper UK LLP have been submitted to Merseytravel’s Rolling Stock Director (David Powell).

The thumbnails of invoices below each link to a higher resolution image for the same invoice.

Invoice 413 from DLA Piper UK LLP (invoice 54833489) dated 31st January 2017 is for £231,124.96. This is for the matter, “Fleet Replacement Project”. This is broken down to “To our fees for professional services” of £187,013.80 + VAT, followed by the following expenses, search fees (£2.00 + VAT), subsistence (£152.68 + VAT), travel (£5,195.65 + VAT) and Vroom Plus (£240 + VAT).

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Why will Merseyrail services be disrupted on the 8th, 10th and 23rd July 2017 due to strike action?

Why will Merseyrail services be disrupted on the 8th, 10th and 23rd July 2017 due to strike action?

Why will Merseyrail services be disrupted on the 8th, 10th and 23rd July 2017 due to strike action?

                              

Bidston Train Station (Borderlands Line) 13th August 2016 (John Brace)
Bidston Train Station (Borderlands Line) 13th August 2016 (John Brace)

Merseyrail employees who are part of the National Union of Rail, Maritime and Transport Workers (RMT) are striking on Saturday 8th July 2017, Monday 10th July 2017 and Sunday 23rd July 2017.

Although Merseyrail are hoping to run to a reduced timetable on strike days (which means Merseyrail trains will not stop at many stations on the Wirral and be less frequent at the others) the entire train network was known to be stopped completely on a strike day earlier this year in March for safety reasons.

Trains on the Bidston to Wrexham Central line which is run by Arriva Trains Wales won’t be affected by this strike. Although people planning to connect at Bidston to a Merseyrail train during one of the three strike days will be.

There is also a strike by Northern Rail staff planned for the 8th July 2017, 9th July 2017 and 10th July 2017 which will result in a reduced service (on Merseyside this is generally services that go to and from Liverpool Lime Street). Further details on their reduced timetable are on Northern Rail’s website.

The Merseyrail and Northern Rail strikes are caused by a dispute between employers and the union over new trains in 2020 which will be staffed only by a driver and not a driver and guard as at present.

The lost revenue to Merseyrail during each strike day is estimated by the RMT union at £139,000 a day (plus the cost of contingency arrangements).

Under the franchise agreement between Merseytravel and Merseyrail, the public sector will pay Merseyrail for the lost profits due to industrial action.

So for the three strike days this is estimated at £417,000 (plus contingency arrangements) paid for out of the Liverpool City Region Combined Authority budget (who control Merseytravel).

Last year in a private meeting councillors on the LCRCA Merseytravel Committee and Council Leaders on the LCRCA agreed to the contract for new trains.

On Monday 10th July (one of the strike days) Liverpool City Council’s Constitutional Issues Committee meets to decide on a recommendation to pay the Chair of the Merseytravel Committee Cllr Liam Robinson £29,983 a year for his role on the Merseytravel Committee (in addition to amounts he receives as a Liverpool City Council councillor).

Cllr Liam Robinson is also the portfolio holder for Transport on the Liverpool City Region Combined Authority which meets next week on Friday 14th July 2017.

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