Cllr George Davies | A blog about Wirral Council, Wirral Council's councillors & officers

Did Wirral Council’s Pensions Committee really approve the accounts of the £6.9 billion Merseyside Pension Fund?

Pensions Committee (Merseyside Pension Fund) 15th September 2015 Left Peter Wallach Head of Pensions Right Cllr Paul Doughty Chair of the Pensions Committee

Below is a copy of my statutory objection to the approval of the accounts of the Merseyside Pension Fund (a £6.9 billion pension fund that form part of Wirral Council’s accounts) which go to Wirral Council and its auditors Grant Thornton.

It’s rather dull and technical, but in the interests of openness and transparency I am publishing it below. It relates to yesterday’s meeting of the Pensions Committee that can be viewed below. I was so cheesed off I made two spelling mistakes in the email (a corrected version is below).

Plus ça change, plus c’est la même chose!

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Wirral Council’s Pension Committee public meeting of the 15th September 2015 Part 1 of 2 (Merseyside Pension Fund)

I reckon receiving this email will probably be about as welcome at Wirral Council as someone breaking wind in an open plan office. However such is life! The press are independent for a reason!

Subject: Statutory objection to Pensions Committee approval of Merseyside Pension Fund Accounts for 2014/15

CC: Pat Philips
CC: Colin Hughes
CC: Surjit Tour
CC: Peter Wallach
CC: Joe Blott
CC: Tom Sault

CC: Cllr Paul Doughty
CC: Cllr Ann McLachlan
CC: Cllr George Davies
CC: Cllr Treena Johnson (email address unknown)
CC: Cllr Adrian Jones
CC: Cllr Brian Kenny
CC: Cllr Geoffrey Watt
CC: Cllr Kathy Hodson
CC: Cllr Cherry Povall
CC: Cllr Pat Cleary
CC: Cllr Anita Leech

CC: Cllr Nick Crofts (Liverpool City Council)
CC: Cllr John Fulham (St Helens Council)
CC: Cllr William Weightman (Knowsley Council)
CC: Paulette Lappin (Sefton Council)

CC: Cllr Jim Crabtree
CC: Cllr Ron Abbey
CC: Cllr Chris Blakeley
CC: Cllr Angela Davies
CC: Cllr David Elderton
CC: Cllr Phil Gilchrist
CC: Cllr John Hale
CC: Cllr Matthew Patrick

CC: Fiona Blatcher
CC: Heather Green
CC: Chris Blakemore

Dear all,

I am a local government elector in the Wirral Metropolitan Borough Council area and make this statutory objection to the Pensions Committee approval of the the Merseyside Pension Fund Accounts for 2014/15 (see Audit Commission Act 1998, s.16).

For the purposes of clarity to the auditor this is a statutory objection to a matter not in relation to a matter covered by Audit Commission Act 1998, s.17-18 but Audit Commission Act 1998, s.8.

As required I am sending a copy of this objection to the auditor, those I have contact details for on Wirral Council’s Pensions Committee (I do not have an email address for Cllr Treena Johnson), Wirral Council’s Audit and Risk Management Committee and those tasked with corporate governance at Wirral Council such as the Monitoring Officer Mr. Tour, the Head of Pensions Peter Wallach, the Strategic Director for Transformation and Resources Joe Blott and Tom Sault the Acting 151 Officer as well as other relevant people.

I do not have contact details for some on the Pensions Committee. I am sending this to the officer who took the minutes of the Pensions Committee meeting on the 14th September 2015 in the hope that it can be forwarded to those I do not have contact details for (the non-councillor members and Cllr Treena Johnson).

As this is a rather technical objection, I provide below a summary of the key points.

However I first need to declare an interest. I have a close family relative who is currently paid a pension by Merseyside Pension Fund, therefore a close interest in the corporate governance of the Fund being done properly.

On the 14th September 2015, I and three other members of the public (two of whom were employed by Grant Thornton and are Wirral Council’s auditors) attended a public meeting of Wirral Council’s Pensions Committee.

This meeting was filmed by myself and published shortly after, see

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and

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One of the functions of the Pensions Committee as detailed in Wirral Council’s constitution is to approve the statement of accounts and financial statements of the Merseyside Pension Fund and recommend these to the Audit and Risk Management Committee.

This is because the Merseyside Pension Fund forms part of Wirral Council’s accounts. There is a statutory deadline to approve the statement of accounts for the 2014/15 financial year by the 30th September 2015.

As mentioned at the Pensions Committee itself by one of the councillors this Fund is valued at ~£6.9 billion.

Item 4 and 5 on the agenda of that meeting were the pension fund accounts 2014/15 and draft annual report.

As the Pensions Committee is a public meeting of a local authority, legislation that governs public meetings applies to it. The statement of accounts formed part of a document known as the “Report & Accounts 2014/15” which was given to those on the Pensions Committee present on the afternoon of the meeting itself.

Please note the reference below to principal council, by virtue of Local Government Act 1972, s.100E also apply to committees and sub-committees of a principal council. The Pensions Committee is a committee of a principal council.

Local Government Act 1972, s.100B(4), is quite clear on the procedure that should be followed in the case of agenda items that are not open to inspection by members of the public five clear days before the meeting.

(4) An item of business may not be considered at a meeting of a principal council unless either—

(a) a copy of the agenda including the item (or a copy of the item) is open to inspection by members of the public in pursuance of subsection (1) above for at least [five clear days] before the meeting or, where the meeting is convened at shorter notice, from the time the meeting is convened; or

(b) by reason of special circumstances, which shall be specified in the minutes, the chairman of the meeting is of the opinion that the item should be considered at the meeting as a matter of urgency.

It is clear that the Report & Accounts 2014/15 for the Merseyside Pension Fund did not fall under the description in s. 100B (4)(a) and therefore the procedure in 100B(4)(b) applies. The Chairman of the Pensions Committee Cllr Paul Doughty did not specify at the meeting itself his opinion that the item should be considered as a matter of urgency, nor would the reasons for this be specified in the minutes.

This is an important corporate governance safeguard written into legislation.

Firstly, if the documents are not made available to the public five clear days before the meeting, the public and press cannot scrutinise them. Secondly (as was mentioned at the meeting itself) at least one councillor expressed the view that half an hour was insufficient to scrutinise a highly technical 46 page document.

This is not a one off occurrence. Officers in previous years have frankly played these games of brinkmanship with accounts routinely handed to those tasked with corporate governance to approve on the evening of the meeting itself. The safeguard above in s.100(4)(b) above, details a procedure to be followed if the matter is urgent.

Therefore my objection is that because of what I have detailed above, the Pensions Committee did not approve the statement of accounts for the Merseyside Pension Fund because:

(a) the report was late and
(b) it is clear from the legislation that a procedural step was missed making the decision ultra vires.

I am however not an unreasonable person and suggest the following course of corrective action. If this is followed I will happily withdraw my objection.

i) That the Pensions Committee holds a further meeting between now and 30th September 2015.
ii) The Audit and Risk Management Committee recommendation is altered (agenda item 12 meeting of the 22nd September 2015) to be conditional on the meeting outlined in i) and the same for any Cabinet meeting that has to approve the same item
iii) That at this special meeting it considers the items referred to in this objection in a way that is not open to legal challenge or perceived to be ultra vires and that the information for this meeting is published on Wirral Council’s website five clear days before the meeting.

As Wirral Council’s auditors Grant Thornton will no doubt make clear, the matter that forms this objections needs to be resolved before the accounts are signed off. I look forward to reading and hearing responses to this objection.

However as this is a perceived serious corporate governance failing, I am making this objection public.

Yours sincerely,

John Brace

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Cabinet agrees new 5 year plan for Wirral and makes pledges on increasing tourism jobs and house building

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Councillor George Davies pledged to build and improve 7,000 houses by 2020 as part of Cabinet's new 5 year plan — Councillor George Davies pledged to build and improve 7,000 houses by 2020 as part of Cabinet’s new 5 year plan

Wirral Council’s Cabinet have agreed a new five year plan. No longer called the Corporate Plan, the new name for it is Wirral Council Plan: A 2020 Vision.

In introducing the new plan Cllr Phil Davies commented, “but I now think we are broadly akin to a normal council but I think the challenge now is for us to move to become an outstanding council”.

On the plan’s targets he said “this is not just warm words, this is specific targets and commitments that we can measure ourselves against” and “we need to recognise that the Tory government is in power for another five years, I wish that were different but that’s the reality, but we can’t use that as an excuse to do nothing. I think we’ve got a duty to our constituents, our residents to use the resources we’ve got to deliver these priorities”.

So what are the priorities in the new 2020 Vision? They are:

Ensure every child has the best possible start in life;
Equip all our residents with the skills to enable them to secure quality jobs;
Create economic opportunities by attracting enterprise and investment;
Treat everybody with respect and dignity in older age;
Strive to close the gap in health inequalities and
Look after our environment for future generations to enjoy.

Following Cllr Phil Davies’ introduction, each Cabinet Member gave examples from their own Cabinet portfolio of what would improve.

Cllr George Davies (Cabinet Member for Neighbourhoods, Housing and Engagement) said, “everybody no matter who they are deserves a good quality home that’s warm, secure and fit for all residents”. He went on to promise more care homes and supported living accommodation which he described as “vital” for an ageing population. Cllr George Davies pledged that by 2020 they would “build and improve 7,000 houses”.

Cabinet Member for the Economy Pat Hackett referred to £250 million of private sector investment over the next five years and highlighted a number of projects including Wirral Waters and a new golf resort at Hoylake.

Cllr Adrian Jones (Support Services) remarked, “We’ve emerged from a terrible period similar to the Dark Ages and in only three years we’ve changed it from perhaps what was widely perceived as a basket case to a Council (a large part of the credit goes not to politicians but to officers who are sitting here at the back of the room) because they’ve driven it from being the Council that’s absolutely the lowest ever Council of the year to a shining example to be looked on in other parts of the country to be learned from and emulated.”

The Cabinet Member for Adult Social Care and Public Health (Cllr Chris Jones) described the plan as “fantastic” and welcomed the announcement by Cllr George Davies to build more care homes and supported accommodation.

Other Cabinet Members also welcomed the plan in their areas of transport, education and the environment.

As Councillor Chris Meaden (Cabinet Member for Leisure Sport and Culture) wasn’t present, Cllr Phil Davies highlighted their aspirations to increase the tourism sector on the Wirral and commented on the economic benefit to the Wirral of both the Open Golf tournament in 2014 and the more recent Three Queens event.

Cabinet agreed to recommend the new plan to a meeting of all Wirral Council councillors who will meet on Monday 13th July.

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Frank Field's election campaign spent £254.40 on balloon gas but what else was money spent on?

Frank Field’s election campaign spent £254.40 on balloon gas but what else was money spent on?

Today I went to Wallasey Town Hall and inspected several candidates’ election returns for the 2015 elections. Below are the pages from Frank Field’s campaign.

Unlike the local election where there is just one period that expenditure and donations need to be declared for, in a General Election there are two periods called “campaigns”. The “long campaign” is from 19th December 2014 to the date the person became a candidate. The “short campaign” is from the date they became a candidate to polling day.

Frank Fields’ campaign spent £31 during the long campaign (£19 on a mobile phone and £12 with WordPress for a website). However during the long campaign he received a £1,000 donation from USDAW (the Union of Shop, Distributive and Allied Workers).

During the short campaign £7,651.25 was spent (£1,200 on an advertising wraparound in the Wirral Globe, £4,794.35 on leaflets, £35.50 on taxis, £500 on the deposit, £254.40 on balloon gas, £437 on a market stall, £400 on office space in the Lauries Centre, £30 on topping up the mobile phone (presumably the one bought during the long campaign).

In the short campaign, the Birkenhead Constituency Labour Party donated £6,675.75, the Communication Worker’s Union £90 plus there were also two donations from individuals for £100 and £250. Updated 22nd June 2015: Wirral Council has been in touch and said that the names of the individual donors being blacked out was a mistake. £100 was donated by Ken Tasker and the £250 by Abhii Mantgani. These total £7,115.75.

The difference between expenditure and donations for this period was £535.50 was met by the candidate.

However I will point out that in the short campaign there was still £969 unspent from the donation from USDAW.

The documents submitted as his election expenses returns for the short and long period are below.

Birkenhead General Election 2015 election expenses return short campaign page 1

Birkenhead General Election 2015 election expenses return short campaign page 2

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Birkenhead General Election 2015 Declaration election expenses Frank Field

Birkenhead General Election 2015 declaration election expenses George Davies

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Labour councillors on Wirral Council’s Cabinet agree to consultation on master plan for Birkenhead

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You can watch what happened at the Cabinet meeting on the 12th March 2015 above.

Wirral Council Cabinet meeting at Birkenhead Town Hall Thursday 12th March 2015 Left to right Surjit Tour, Cllr Phil Davies and Joe Blott

Wirral Council’s Cabinet met at a different venue to usual (Birkenhead Town Hall). At the start, Councillor Phil Davies wanted to show people the trophy that Wirral Council had received for being “Most Improved Council”. You can see a photo of when they received the award on the Local Government Chronicle website, but below is a photo of Cllr Phil Davies showing people the award at the Cabinet meeting.

Councillor Phil Davies shows off the Local Government Chronicle award Wirral Council received for being most improved council 12th March 2015

Moving to what was on the agenda, Cabinet recommended the draft pay policy statement to the next Council meeting, the revenue financial monitoring report for month ten was hardly commented on, however various councillors commented on various capital projects.

Kevin Adderley talks to the Property Development Framework report at Cabinet on the 12th March 2015

Kevin Adderley talked to the Property Development Framework report after which the Cabinet agreed the recommendations in the report.

Kevin Adderley talking to the Enterprise Zone report at Cabinet on the 12th March 2015

Mr Adderley then talked to the Enterprise Zone report and again Cabinet agreed the recommendations.

Cabinet agreed a slight increase in the amounts paid to residential and nursing homes and the arrangements for the delivery and commissioning of social care.

Cllr Tony Smith tells Cabinet what the outcome of the consultation on Pensby High School was 12th March 2015

Councillor Tony Smith told Cabinet what the results were of the consultation to merge Pensby High School for Boys with Pensby High School for Girls. Cabinet agreed to move to the next stage of publishing notices.

The draft admission arrangements for primary schools and secondary schools were also agreed.

Cllr Pat Hackett talks at a Cabinet meeting about the master plan for Birkenhead Town Centre

Councillor Pat Hackett spoke to the report recommending a consultation on the masterplan for Birkenhead Town Centre. He referred to an “improved market” and the stage one lockout agreement that the Council had entered into with Neptune Developments Limited. The detail of the proposals were covered in an earlier blog post. Cabinet agreed that Neptune Development Limited were to consult with the public (as well as staff who work at Europa Pools) on the masterplan.

Kevin Adderley pointed out that the Mars Pension Fund had recently advertised the Grange and Pyramids shopping centre in Birkenhead as being for sale. The recommendation to have a consultation was agreed by Cabinet.

A slight increase from April in fees charged to scrap metal dealers was agreed. Cllr George Davies spoke on the report reporting the consultation on licensing of private landlords in four areas on the Wirral. Cabinet agreed to refer the proposals to the Council meeting on the 16th March 2015.

The nominations from Cabinet for Civic Mayor and Deputy Mayor for 2015/16 were as follows:

Civic Mayor: Cllr Les Rowlands
Deputy Mayor: Cllr Pat Hackett

Cabinet then excluded the press and public from the rest of the meeting.

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Councillors recommend that they chose who will receive £thousands for sitting on new Pensions Board

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Above is video of the Pensions Committee meeting of 19th January 2015.

Pensions Committee Wirral Council Merseyside Pension Fund 19th January 2015 L to R Pat Phillips Cllr Geoffrey Watt Cllr Mike Hornby Cllr Chris Carubia Cllr Nick Crofts Cllr Harry Smith

I’ll start this piece by declaring an interest as my father is paid a pension by the Merseyside Pension Fund administered by Wirral Council.

Wirral Council’s Pensions Committee (which form part of the governance arrangements for the Merseyside Pension Fund worth billions of pounds) met yesterday evening. The agenda and reports for this meeting are on Wirral Council’s website.

The first main item on the agenda was the creation of a Pensions Board which I’ve previously written about when it was discussed at a previous meeting of the Pensions Committee last year.

The original recommendation in the report had been “That Members consider the proposals for the Wirral Pension Board set out in this report and the draft Terms of Reference and advise officers of any required amendments before submission for approval and implementation by Wirral Council.”

The Chair of the new Pensions Board will receive £2,751 a year (plus travel & subsistence expenses) and the employer/employee representatives will receive £1375.50 a year (plus travel & subsistence expenses). Just before the meeting started a much more detailed recommendation was handed out. This was agreed at the meeting and is now a recommendation to a future meeting of all Wirral Council councillors. One of the implications of the revised recommendation is that three councillors (who are not on the Pension Committee) will form a selection panel to choose who is on the new Pensions Board.

The complete revised recommendation is below:

“1. Pensions Committee agrees and recommends to Council:

a) the establishment of a Pension Board pursuant to regulations (The Local Government Pension Scheme (Amendment) Regulations 2014) in accordance with the Terms of Reference set out in appendix 1, subject to the membership being agreed by Council and the Terms of Reference being amended to confirm that the board shall be quorate providing a minimum of 4 members are present.

b) that the Pension Board shall have the authority to do anything which is calculated to facilitate, or is conducive or incidental to, the discharge of any of its functions.

c) the establishment of a selection panel by the Council in accordance with appendix 3 to consider and assess applications received and undertake interviews. The selection panel is to make recommendations to Council with regard to appointments to the Board.

d) that the Head of Pension Fund be authorised to implement the administrative arrangements required to undertake a recruitment exercise necessary for the selection and appointment of members to the Board.

e) that the definition of independent member for the purposes of the Board shall be agreed as:

not a current elected member or employee of a participating scheme employer
has not been an elected member or employee of a participating scheme employer in the past 5 years

f) that in respect of the two active member representatives, the initial appointment to the Board for one of the representatives shall be for a term of 6 years and the other for 4 years; that in respect of the two representatives of local authorities, police/fire/transport authorities and parish councils, the initial appointment to the Board for one of the representatives shall be for a term of 6 years and the other for 4 years.

g) that the Pensions Committee (and the Heads of the Pension Fund and of Legal and Member Services after consultation with the Chair of the Pensions Committee prior to the meeting of the Council in March 2015) may recommend to Council changes to the Board and its Terms of Reference having regard to the final form of regulations and statutory guidance.

2. that the Selection Panel’s Terms of Reference as set out in Appendix 3 shall be that:

it shall comprise 3 elected members
it shall not consist of current Pensions Committee members
There shall be two advisors to the selection panel: the Head of Pension Fund and a representative from the Fund’s external auditors.

3. That the following amendments be made to the Board’s terms of reference set out in appendix 1.

a) Section 3 “Members of the Board shall cease to be a member of the Board if they do not attend two consecutive meetings and fail to tender apologies which are accepted by the Board” be substituted for “Other than by ceasing to be eligible as set out above, a Board member may only be removed from office during a term of appointment by the majority agreement of all of the other members. The removal of the independent member requires the consent of the Scheme Manager”.

b) Section 3 the following shall be added: “In the event of the independent member not being available for a Board meeting, a Vice Chair for that meeting shall be determined by the Board members”.

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Did Wirral Council’s Pensions Committee really approve the accounts of the £6.9 billion Merseyside Pension Fund?

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Cabinet agrees new 5 year plan for Wirral and makes pledges on increasing tourism jobs and house building

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Frank Field’s election campaign spent £254.40 on balloon gas but what else was money spent on?

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Labour councillors on Wirral Council’s Cabinet agree to consultation on master plan for Birkenhead

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Councillors recommend that they chose who will receive £thousands for sitting on new Pensions Board

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