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).
Now I’m not saying people shouldn’t pay Council Tax, however thanks to decisions made by Wirral Council’s Cabinet, households that hadn’t paid Council Tax before because they had got 100% Council Tax Benefit, suddenly had to pay a whopping 22% (this figure is from memory and applies (I’m massively simplifying here as there are people who don’t have to pay Council Tax too) to households of people of working age with nobody of state pension age and above). This led to an increase in people not paying, which led naturally to an increase in Magistrates’ Court cases filed by Wirral Council.
The Magistrates’ Court is of course where my father used to work before he retired and located just off Hamilton Square in Birkenhead and Tranmere ward, which by sheer coincidence is the ward where Wirral Council’s Leader of the Council/Cabinet Member for Finance Cllr Phil Davies represents.
At the time this change was planned and going out to consultation I warned Wirral Council in public meetings that this would need to lead to an increase in bad debt provision and their own costs!
Council Tax is one of the few taxes you can get locked up for in this country for not paying. Thus returning us to the concept of the “debtors prison” in Victorian England.
However the question is, how many people who literally couldn’t pay Council Tax, even if Wirral Council got a court order is Wirral Council going to the trouble of launching criminal cases over that costs the taxpayer money?
Bear in mind that this is a monthly invoice. Although the statement is in the name of LM Burns, it does somewhat remind me of the character of Charles Montgomery Burns in the Simpsons or as he would say “Release The Hounds!”
This is the court fee element, Wirral Council add this, plus their own internal legal costs to the outstanding Council Tax bill, which means by the end the Council Tax bill that they couldn’t pay before is even larger! Oh and thanks to Wirral Council, those who couldn’t pay end up at the end of the process with a criminal record, making it harder for them to get certain jobs to pay off their Council Tax debt!
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