Whistleblowers assembled in Committee Room 1 to hear apologies from Wirral Council over a toxic whistleblowing saga involving secrecy, national, local and regional government, internal and external audit, the private sector, ££££s, senior managers, contracts and Wirral Council

Whistleblowers assembled in Committee Room 1 to hear apologies from Wirral Council over a toxic whistleblowing saga involving secrecy, national, local and regional government, internal and external audit, the private sector, ££££s, senior managers, contracts and Wirral Council

Whistleblowers assembled in Committee Room 1 to hear apologies from Wirral Council over a toxic whistleblowing saga involving secrecy, national, local and regional government, internal and external audit, the private sector, ££££s, senior managers, contracts and Wirral Council

                                                 

Nigel Hobro (standing) addresses a special meeting of the Audit and Risk Management Committee of Wirral Council 8th October 2014 L to R Cllr Adam Sykes, Cllr David Elderton, Andrew Mossop, Surjit Tour, Nigel Hobro (c) John Brace
Nigel Hobro (standing) addresses the Audit and Risk Management Committee of Wirral Council 8th October 2014 L to R Cllr Adam Sykes, Cllr David Elderton, Andrew Mossop, Surjit Tour, Nigel Hobro (c) John Brace | still taken from video

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Above is a playlist of all parts of the Audit and Risk Management Committee (Wirral Council) meeting of 8th October 2014 held in Committee Room 1, Wallasey Town Hall starting at 6.00pm (apologies for recording problems)

Audit and Risk Management Committee
Cllr Jim Crabtree (Chair, Labour)
Cllr Ron Abbey (Vice-Chair, Labour)
Cllr Paul Doughty (Labour)
Cllr Matthew Patrick (Labour)
Cllr John Hale (Conservative spokesperson)
Cllr Adam Sykes (Conservative)
Cllr David Elderton (Conservative)
Cllr Stuart Kelly (Lib Dem spokesperson)

The Audit and Risk Management Committee of Wirral Council met for a special meeting about BIG/ISUS on the evening of 8th October 2014 whilst a thunderstorm raged outside Wallasey Town Hall. This was a continuing from its adjourned special meeting about the same topic on 22nd July 2014. For details of what happened at its meeting of the 22nd July 2014 see my earlier blog post Incredible first 5 minutes of Wirral Council councillors’ public meeting to discuss BIG & ISUS investigations.

The meeting started with a minute of silence for Mark Delap. Mark Delap was one of the Wirral Council employees that used to take minutes at its public meetings and had died recently.

After the minute of silence was over, the Chair asked for declarations of interest.

Cllr Matthew Patrick declared an interest due to a friendship with Nigel Hobro’s son (Nigel Hobro is one of the whistleblowers and spoke during the meeting itself).

Surjit Tour gave some brief advice to Cllr Matthew Patrick as to whether his interest was personal or prejudicial.

The Chair thanked Surjit Tour for the advice he had given to Cllr Matthew Patrick.

The Chair, Cllr Jim Crabtree then explained that there had been a lot of allegations since the issue had first been raised in 2011. There was a large volume of paperwork for the meeting, however details were redacted to protect businesses and companies. Also the names of officers and other people were blacked out. He also referred to commercial sensitivities and how they had gone to proper steps to protect identities.

He reminded people of the risk of legal challenge and Wirral Council’s liabilities. Cllr Crabtree asked everyone not to name names and continued by saying that any issues Wirral Council officers had addressed, they had done on behalf of the Council.

Cllr Stuart Kelly asked a question on the information that was redacted. He referred to a challenge to paragraph j, that was redacted in the papers to the July meeting, but was now provided. He wanted assurance from the legal officer Surjit Tour that the redactions were only in the categories as just outlined by the Chair.

Mr. Tour explained that the redactions had taken place to make sure that nobody by reasonable inquiry and information already in the public domain could piece together who or what the redacted information referred to and who the people redacted were. He added that in some cases it was unfortunately necessary to redact a lot of information mindful of what was already in the public domain, people could “fill in the gaps” which would expose Wirral Council to a liability.

The Chair invited Nigel Hobro to speak for at most fifteen minutes.

To be continued…

However below are some of my personal observations about this meeting I’ve started writing up above and a bit of a compare and contrast with two different special meetings of the Audit and Risk Management Committee held years apart (but both dealing with Wirral Council’s response to whistleblowers (one internal, one external).

It shows how history has a habit of endlessly repeating itself and is based on my opinion as one of the few people who was actually present at both meetings.

There are similarities between this public meeting and an earlier public meeting many years ago of the Audit and Risk Management Committee to decide on a response to the whistleblowing of former Wirral Council employee Martin Morton. Back then (years ago) there were arguments by politicians over a series of meetings over how much money should be paid back to those that were overcharged and to what year you go back to with the refunds.

Even when refunds were agreed by politicians, Wirral Council took so long that some of the people involved had died and in order cases (the ones that were still alive) the amounts were so large, that Wirral Council officers didn’t want to pay the people involved because they thought it would have a knock on effect on their benefits and officers doubted that some of the people had the capacity to be able to look after their own financial affairs.

Sadly the decision back then was fudged (which is partly what led to the problems later). Martin Morton’s concerns were also far, far wider than the overcharging issue, his concerns also involved allegations of the misuse of public money to fund organisations with links to serious and organised crime, serious allegations of serious crimes against vulnerable people who had apparently at the time not been investigated thoroughly enough, woefully poor corporate governance at Wirral Council, terribly weak political oversight due to put it frankly chaos back then and ultimately Mr Morton paid a personal price because people in Wirral Council tried to repeatedly punish him for daring to blow the whistle. Due to the large financial amounts involved, Cabinet had to sign off on the large expenditure that resulted.

One day before the AKA report was finally released to the public, the two middle managers involved in this matter were each paid a six figure sum each to leave Wirral Council.

At the earlier meeting (and at least one person on the Audit and Risk Management Committee is the same person as back then), the Chair back then accused one politician (Cllr Ron Abbey) of either not reading the papers for the meeting as they were asking questions that were already answered there or of completely misunderstanding what they had read (if they had read them). At this time the Chair was of a different political party to the Labour councillor (Cllr Ron Abbey) & in the interests of impartiality (with absolutely no offence meant towards one of my local councillors Cllr Jim Crabtree) many other local authorities have an unwritten rule that the Chair of the Audit and Risk Management Committee is not from the same political party as the ruling administration to ensure independence.

Knowing Cllr Crabtree as I do, I know that even if a councillor stepped out of line at a meeting he was chairing, even if the councillor was from the same political party as he was, Cllr Crabtree’s personality is such that he would frankly realise that it’s in the “public interest” to hold his fellow councillors to account even if he would have to be careful how he did this in public.

After it seems part of the reasons why Labour got a small majority on Wirral Council is because councillors from that party woke up the news that the Wirral public expected them to hold other politicians to account in public even if these were other councillors from the same political party.

Bill Norman (who left in somewhat mysterious circumstances in 2012) was the legal adviser to that earlier Audit and Risk Committee meeting years ago, not Surjit Tour as it is now. The issue of blacking out all the names (and other details) in the published papers was addressed by Bill Norman then with broadly similar reasons given to those given by Mr. Tour many years later. However I will point out that the culture of legal practice is such that confidentiality, especially when it comes to active proceedings is extremely important to maintain!

At the time this written material authored by Mr. Morton included in the papers for the meeting was also redacted, so this aspect of whistleblowing hasn’t changed much at all over the years at Wirral Council.

Wirral Council, back then and as it seems now has a fear of being sued. Although if they were open and transparent wouldn’t Wirral Council welcome judicial oversight of their decisions as it would give Wirral Council the chance for someone independent to look at it and the opportunity to defend themselves in court if they had done nothing wrong?

Perhaps it’s unfair to say a fear of being sued, it’s a fear at Wirral Council of being sued and losing and the results that flow from that which could be a combination of large financial penalties (or other things) as well as the fact that court reporters such as myself or the publications they publish in can’t actually be sued under British law for court reporting as long as we comply with the few rules that apply as court reporting attracts absolute privilege. All court hearings whether public or private are recorded by the court on tape anyway and in theory transcripts can be ordered.

Some may say for a large local Council (covering a population of ~320,000), whilst obviously they have their own organisational reputation to consider, that they seem unduly concerned at times at reputation management (although this is also a preoccupation of political parties) rather than dealing with matters in an entirely open and transparent way. There is a blurry line between the individual reputations of senior managers and politicians on one hand and the organisational reputation of the organisations they are either employed by or are elected to represent the views of the public at.

Some of the reports that went to the most meeting the day before yesterday, have been the subject of previous articles by me and FOI requests.

You can read my FOI request (25/8/13) for the report on ISUS here, which was refused on 23/9/13 and refused at internal review on 24/10/13. That external audit report can be read as part of the committee’s papers (see agenda item 2 and the links from this page on Wirral Council’s website if you wish to do.

Had the responses to those FOI requests been forthcoming and Wirral Council provided the information within weeks a lot more would have been in the public domain before the July and October meetings in 2014 of the Audit and Risk Management Committee meetings. Wirral Council instead chose to rely on exemptions to suppress the information and knew I was unlikely to appeal to ICO, as if I had I’d probably still be waiting for a decision!

Excessive secrecy just makes the public and press suspect that there’s a deliberate cover up or Wirral Council has done something it’s ashamed or embarrassed about. Usually the answer is a little more complicated than a conspiracy.

The Merseyside police investigation (which resulted in no charges) was used as an excuse by Wirral Council to deny FOI requests, not just about the one Grant Thornton recommended was referred to the police, but information in general about the other aspects too.

Wirral Council was recommended by the forensic arm of its external auditors to refer one very minor matter to the police. Wirral Council did and this was then used this as an excuse to delay and prevent further scrutiny. The police response (and I summarise) was that based on what they were told that there was insufficient evidence to charge somebody (or somebodies) with a crime. Remember criminal charges require basically two elements, proof that the alleged crime occurred and also generally for most criminal matters mens rea (proof of a “guilty mind” too). The latter is often harder to prove than the former, which is why defendants sometimes plead not guilty in order to get a jury trial! As Wirral Council actually carries out criminal prosecutions through the Wirral Magistrates Courts, I’m sure someone there who is actually aware of these matters!

This article is getting rather long and at the two thousand word mark I am somewhat digressing into related matters, although obviously it is not as long as the papers for that meeting which come in at the length of a medium-sized novel!

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Expense claim forms for Councillor Stuart Kelly (Wirral Council) 2013 to 2014

Expense claim forms for Councillor Stuart Kelly (Wirral Council) 2013 to 2014

Expense claim forms for Councillor Stuart Kelly (Wirral Council) 2013 to 2014

                                                       

Councillor Stuart Kelly is a Liberal Democrat councillor for Oxton ward. He is also their spokesperson on the Audit and Risk Management Committee (which at the time of writing) will be meeting tomorrow evening to sign off on Wirral Council’s accounts for 2013-14 (which include his own expenses claims) totalling hundreds of millions of pounds.

So, having received specialised audit training and being the spokesperson for audit on Wirral Council for his party do all his expense claims add up? No he claimed too much by £0.40p for travelling to a meeting in Birkenhead as 3 * 40p does not equal £1.60. How embarrassing for Councillor Stuart Kelly (but thankfully this risk of overpayments was noticed before it was paid)? However we all make mistakes.

On the plus side he is one of the few councillors that type their expenses claims, which as some councillors have handwriting that is very difficult to decipher helps a lot with comprehension. Councillor Stuart Kelly’s claim forms are below.

Cllr Stuart Kelly expenses claim 2013 2014 page 1
Cllr Stuart Kelly expenses claim 2013 2014 page 1
Cllr Stuart Kelly expenses claim 2013 2014 page 2
Cllr Stuart Kelly expenses claim 2013 2014 page 2
Cllr Stuart Kelly expenses claim 2013 2014 page 3
Cllr Stuart Kelly expenses claim 2013 2014 page 3
Cllr Stuart Kelly expenses claim 2013 2014 page 4
Cllr Stuart Kelly expenses claim 2013 2014 page 4
Cllr Stuart Kelly expenses claim 2013 2014 page 5
Cllr Stuart Kelly expenses claim 2013 2014 page 5
Cllr Stuart Kelly expenses claim 2013 2014 page 6
Cllr Stuart Kelly expenses claim 2013 2014 page 6
Cllr Stuart Kelly expenses claim 2013 2014 page 7
Cllr Stuart Kelly expenses claim 2013 2014 page 7
Cllr Stuart Kelly expenses claim 2013 2014 page 8
Cllr Stuart Kelly expenses claim 2013 2014 page 8

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Wirral Council valued Lyndale School land and buildings at £2,696,103.00 in February 2013

Wirral Council valued Lyndale School land and buildings at £2,696,103.00 in February 2013

Wirral Council valued Lyndale School land and buildings at £2,696,103.00 in February 2013

                                                   

Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School L to R Cllr Stuart Whittingham, Cllr Tony Smith, Cllr Bernie Mooney and Lyndzay Roberts
Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School L to R Cllr Stuart Whittingham, Cllr Tony Smith (Cabinet Member for Children and Family Services), Cllr Bernie Mooney and Lyndzay Roberts

One of the issues that was raised during the consultation on Lyndale School (and the call in) was how much The Lyndale School would be worth to Wirral Council as an asset if in the future the school was closed, declared a surplus asset and sold by Wirral Council? The 2012/13 asset register assigns a value to the buildings of £1,788,103.00 and land of 908,000.00 (total £2,696,103.00) valued on 22nd February 2013 (as part of its regular quinquennial or five yearly valuation).

A summary of the responses given by David Armstrong at the meetings I was at (such as the consultation meeting in June and the February call in) was that he personally had deliberately not visited the site to avoid the rumour spreading that Wirral Council was disposing of the site and that there were hoops Wirral Council would have to jump through before even getting to that stage, three of those being a decision that the school would have to close, then declared a surplus asset by a politician/s and permissions from the Secretary of State too before even reaching the stage where they could dispose of it.

The issue of the extra capital work on other schools (which costs the council money) to provide extra places for the Lyndale School children if it closed was known and quantified as obviously building work has to start well in advance of being completed due to obtaining planning permission, contract tender rules (such as getting quotes and bids for the work) and the fact that building work on schools tends to be done during school holidays to prevent disruption to what schools are there to do.

What’s interesting is in a recent response to a Freedom of Information request to former councillor Ian Lewis, Wirral Council have (finally) released the 2012/13 asset register. I read the 2012/13 asset register this morning and it does contain an entry for The Lyndale School. Bear in mind this is for the 2012/13 local authority year (1/4/2012 to 30/3/2013) which was audited as part of the audit of that year (12/13)’s accounts at some point between 1/4/13 and 30/9/13.

As is well known already, formal plans to close the Lyndale School became known to the public around December 2013 but there were rumours of closure plans before then. The entry for The Lyndale School is as follows:

RAM Ref Building 000341
RAM Ref Land 000342
NLPG 42069200
Address The Lyndale School
Street Lyndale Avenue
Town Eastham
Postcode CH62 8DE
Description Special School
Controlling Department CYPD
Asset Type PPE
Status Land and buildings
Valuation Basis (See below for definitions) FV(DRC)
Buildings Value (Required for DRC and EUV valuations only) 1,788,103.00
Land Value (Required for DRC and EUV valuations only) 908,000.00
Value (Applies to MV entries only)
Asset Value 2,696,103.00
Value addition check ok
Asset Life Years (Required for DRC & EUV valuations only) 30
Date of revaluation 22/2/2013
Date assets physically verified (if not – state reason) 22/2/2013
Valuer Sarah Duncan
Comments
Valuation year 2012/13
Valuation required 12/13 y
Valuation reasons Quinquennial
Disposal reason
Disposal proceeds
Revisions made y
Is property held solely to earn rentals or for capital appreciation or both?
Is property used in the production or supply of goods or services or for administrative purposes?
Is property for sale in the ordinary course of operations?
Is earning rentals the outcome of a council policy (e.g. regeneration policy)?
Is the property social housing?
Investment Property Classification Not Investment
AHFS Criterion 1: Available for immediate sale, etc?
AHFS Criterion 2: Sale highly probably, etc?
AHFS Criterion 3: Actively marketed?
AHFS Criterion 4: Expected to qualift for recognition as a completed sale within 1 year of date of classification?
AHFS Classification Not AHFS

This entry in the asset register of course raises a lot of questions. A regular five yearly revaluation was done on the Lyndale School in February 2013. Any valuation (if a further one was done) between 1st April 2013 and 30th March 2014 would be on the 2013/14 asset register.

The 2012/13 asset register was audited as part of the 2012/13 accounts over the period 1st April 2013 to 30th September 2013. However the asset register would’ve been available for management purposes well before this audit was complete. Within two months of that audit being complete the public became aware of the plans to close the school.

So management at Wirral Council would’ve had the Lyndale School valuation from February 2013 available in informing their plans (whether they asked for this information to be provided is another question though).

However, as the school and land that The Lyndale School is on is an asset of Wirral Council now used for education (and specifically adapted for use as a special school), surely it makes no economic sense to close it down?

If it’s closed, the costs of the building (Council Tax, maintenance etc) will still be there.

If it’s closed, the children would be moved to another school so staff costs would stay, Wirral Council would be paying for building costs on two buildings then, the school they move to and Lyndale School sitting empty.

If we look back to the closure of Cole Street Primary School in Birkenhead, there was a very long time between the school being closed and it being sold. During this time it appeared to be unused each time I passed it especially after it was declared surplus to requirements.

There is another question this raises though.

Do the capital works on buildings to increase places elsewhere in the schools system so the Lyndale School children have somewhere to go to should the school close exceed the valuation of the Lyndale School?

If they do, then don’t these plans not make any economic sense whatsoever (unless I’m missing something)?!

The Cabinet decision on 4th September to go ahead to the next stage on closing Lyndale School was “called in” by Conservative and Liberal Democrat councillors yesterday (lead signatory Cllr Paul Hayes (Conservative)) and will now not be implemented until there is a future meeting of the Coordinating Committee soon to decide what to do next.

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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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Wirral Council launches Future Council consultation on 17 budget options for £2.5 million savings

Wirral Council launches Future Council consultation on 17 budget options for £2.5 million savings

Wirral Council launches Future Council consultation on 17 budget options for £2.5 million savings

                                                       

Future Council Wirral logo
Future Council Wirral logo

Ed – Update 14:55 9/9/14 to fix 6 incorrect links to the budget options that was helpfully pointed out by a reader.

Yes, it’s another annual consultation on savings from Wirral Council that began yesterday and runs from yesterday to the 31st October 2014. What’s this one on? This is on £2.5 million of cuts that Wirral Council need to make in 2015/16.

Although the documentation refers to £4 million of budget options this seems rounded to the nearest million (the options total £3.75 million). Out of these options about £2.5 million will be chosen (two-thirds by total value).

Here are the documents and links:

Final Full Consultation Pack (this is a 21 page document which covers all options).

The options are then in various “themes” and are below by theme (I’ve also included the amount in pounds next to each option for financial year 2015/16 if that option is chosen).

This means some of the larger savings options are almost certain to go ahead which are those involving community libraries, the all age disability service, youth and play, preventative maintenance (highways and parks), Council Tax Over 70s discount and Girtrell Court.

These six options total £2.566 million of the £2.5 million savings required.

The other eleven options seem less likely to meet with public approval as they will be opposed by (in some cases) large sections of Wirral’s society. Some of them have already been rejected in earlier years following consultation such as charging for car parks at the country parks, school crossing patrols etc.

With the options below I’ve briefly included a sentence or two explaining what it’s about.

Customer Contact

Reduce library opening hours to four hours (10am to 2pm) with these libraries opened either two or three days a week. This option does not seem to apply to the four central libraries or combined libraries/One Stop Shops whose opening hours remain the same.

Delivering Differently Theme

Close four satellite youth centres & end funding Play Scheme.

Managing Demand

Remove 41 school crossing patrols.

Income and Efficiency

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