Cllr Phil Davies stands down as Chair of the Liverpool City Region Combined Authority

Cllr Phil Davies stands down as Chair of the Liverpool City Region Combined Authority                                                             This morning the dramatic news that Cllr Phil Davies is stepping down as Chair of the Liverpool City Region Combined Authority was made public. In a statement Cllr Phil Davies said, "I felt now was the right moment to rebalance … Continue reading “Cllr Phil Davies stands down as Chair of the Liverpool City Region Combined Authority”

Cllr Phil Davies stands down as Chair of the Liverpool City Region Combined Authority

                                                           

Councillor Phil Davies chairing a meeting of the Liverpool City Region Combined Authority earlier this year
Councillor Phil Davies chairing a meeting of the Liverpool City Region Combined Authority earlier this year

This morning the dramatic news that Cllr Phil Davies is stepping down as Chair of the Liverpool City Region Combined Authority was made public. In a statement Cllr Phil Davies said, "I felt now was the right moment to rebalance my time in favour of my duties as Wirral Council Leader."

Councillor Phil Davies (Leader of Wirral Council pictured above) has been Chair since the Combined Authority’s since the first meeting of the Combined Authority on April Fool’s Day in 2014. Those with long memories will remember that Mayor Joe Anderson (pictured below) expected to be elected Chair at that meeting and was unhappy at how Cllr Phil Davies was elected.

Mayor Anderson was elected Mayor of Liverpool in 2012 and is expected to be the Labour candidate in an election for a second term of office as Liverpool’s Mayor in 2016. As a result of the devolution deal announced last month, there will be a public election for the Mayor of Merseyside in May 2017. Mayor Anderson has announced his intention to seek the Labour nomination for Mayor of Merseyside and if he is elected Chair of the Combined Authority at Friday’s meeting this will help his chances.

Mayor Joe Anderson speaking at a meeting of Liverpool City Council (8th April 2015)
Mayor Joe Anderson speaking at a meeting of Liverpool City Council (8th April 2015)

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KPMG (external auditors) advise councillors that report nearly finished on objection to Merseytravel’s 2014/15 accounts

KPMG (external auditors) advise councillors that report nearly finished on objection to Merseytravel’s 2014/15 accounts

KPMG (external auditors) advise councillors that report nearly finished on objection to Merseytravel’s 2014/15 accounts

                                                   

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Liverpool City Region Combined Authority Audit Committee 3rd November 2015

John Fogarty speaking at the Liverpool City Region Combined Authority Audit Committee 3rd November 2015 about risk management
John Fogarty speaking at the Liverpool City Region Combined Authority Audit Committee 3rd November 2015 about risk management

Risk management was a subject John Fogarty tried very hard to be interesting about by making topical references to Thomas Cook, TalkTalk and Volkswagen, however he was completely unaware that he was being upstaged by a couple in the background flirting while waiting for the lift (as pictured above).

That is the most interesting introduction I can make to a write-up of yesterday’s Audit Committee meeting. You can read the reports for the public meeting on Merseytravel’s website.

The one Wirral Council councillor on the Audit Committee (Cllr Mike Sullivan) wasn’t present and didn’t send his apologies. The other five councillors on the Committee were there (the Chair Cllr Anthony Carr (Sefton Council), Deputy Chair Cllr Nina Killen (Sefton Council), Cllr Andy Moorhead (Knowsley Council), Cllr Rob Polhill (Halton Borough Council) and Cllr Pam Thomas (Liverpool City Council)).

On the agenda were three main items a presentation by John Fogarty (Treasurer to the Liverpool City Region Combined Authority) on risk management, a quarterly update on internal audit work and the final item was a report from the Treasurer on the final accounts for 2014/15 (which had two appendices the draft report to those charged with governance from the external auditors KPMG and the Annual Audit Letter 2014/15.

Although one of those reports only mentions one formal objection (I referred to the objection I made here), there is still another formal objection to the accounts.

As Merseytravel and the Liverpool City Region Combined Authority are audited separately (although this Audit Committee covers both bodies), I would guess that this relates to the matter discussed at Merseytravel’s meeting on the 1st October 2015 and minuted in this way (Members means councillors)Finally the Director advised of an objection raised by a member of the public in relation to a historical item from the accounts relating to the internal transfer of funds between two Merseytravel services. The outcome of this matter could be reported to Members once resolved. Councillor Abbey asked that it be placed on record that such complaints did result in a cost to council taxpayers as they required investigation by external auditors.

The external auditors (KPMG) confirmed at yesterday’s meeting that they are in the process of writing a report on that matter and hope to report back soon, however did confirm that the matter the objection related to doesn’t pass the threshold of materiality.

Due to the unresolved objection, the accounts haven’t been closed by the statutory deadline of the 30th September 2015.

There is not much else interesting I could write about the Audit Committee meeting (although video of the meeting can be watched below).

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Liverpool City Region Combined Authority Audit Committee 3rd November 2015

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Why did 2 missing words from the Liverpool City Region Combined Authority 2014/15 accounts end up costing YOU £4,755?

Why did 2 missing words from the Liverpool City Region Combined Authority 2014/15 accounts end up costing YOU £4,755?

Why did 2 missing words from the Liverpool City Region Combined Authority 2014/15 accounts end up costing YOU £4,755?

                                                  

Councillor Phil Davies (Chair) at a meeting earlier this year of the Liverpool City Region Combined Authority

In the interests of openness and transparency here is an email I’ve just written. We’ll see what happens tomorrow morning. You can read the objection that led to the KPMG (the external auditors for the Liverpool City Region Combined Authority) increasing their bill by £4,755 here.


To
Councillor Anthony Carr (Chair) anthony.carr@councillors.sefton.gov.uk
Councillor Nina Killen (Deputy Chair) nina.killen@councillors.sefton.gov.uk
Councillor Andy Moorhead andy.moorhead@knowsley.gov.uk
Councillor Rob Polhill rob.polhill@halton.gov.uk
Councillor Mike Sullivan mikesullivan@wirral.gov.uk
Councillor Pam Thomas pamela.thomas@liverpool.gov.uk

Subject: Liverpool City Region Combined Authority Audit Committee meeting (3rd November 2015) item 6 LCRCA Final Accounts 2014/15

Dear all,

I have read the reports for tomorrow’s meeting and as you are the people on the Audit Committee there to represent the people of Merseyside I wish to make the following points to you.

If you wish me to explain at the public meeting itself why I made the objection I am happy to do so, but as you will understand in this email what I stated in the objection is the tip of a larger iceberg.

Firstly, the same error was also made in the Merseytravel accounts (I think since Merseytravel’s Audit and Governance Sub-Committee was disbanded you are also responsible for Merseytravel’s accounts too). I know someone else made an objection to the Merseytravel accounts (I didn’t), but had I made the same objection to the Merseytravel accounts too as this would’ve added an extra ~£5k to your audit costs.

As it’s never been made clear to me if the same error in Merseytravel’s accounts was also corrected, I would appreciate an answer to that point.

There are other points about the accounts that I did not raise in my objection, that you as the Audit Committee should be made aware of.

The accounts for 2014/15 and accompanying reports refer to the Accounts and Audit Regulations 2015. However the Accounts and Audit Regulations 2015 only apply to financial years from 2015/16 onwards, therefore this is another error.

Finally, I am concerned that the system of internal controls at the LCRCA, the external auditor or the councillors approving the accounts did not spot this or the matters relating to my objection.

I hope at the meeting tomorrow you will exercise some scrutiny as to what happened and why and put into place controls to prevent it happening in the future.

Yours sincerely,

John Brace

P.S. I will clarify what it stated on page 11 of the auditor’s report.

The accounts in their original form didn’t comply with legal requirements. It’s been acknowledged by the auditors and officers they were wrong. The point about the external auditors applying to the court for a declaration that the accounts are unlawful is therefore moot as they’ve been changed.

However it is important that councillors consider the reasons behind the objection in a public interest report, otherwise the people tasked with corporate governance will be in the dark as to what was wrong, why it had to be changed and be aware to check for this next year. I hope I have made this clear.

P.P.S On another audit related note, as the LCRCA now has a website, the Local Government (Transparency Requirements) (England) Regulations 2015 make it a legal requirement that certain information is published on its website (such as payments over £500 for example the payment to the auditors).

Currently this is being done on Merseytravel’s website, which makes it very hard to find the LCRCA payments amongst the Merseytravel ones. I would like the Audit Committee to please find out why this information isn’t published on the LCRCA website as it would aid with better openness and transparency about what the LCRCA is doing.

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Is the whole price/prize point about Merseyside’s Mayor actually a load of rubbish?

Is the whole price/prize point about Merseyside’s Mayor actually a load of rubbish?

Is the whole price/prize point about Merseyside’s Mayor actually a load of rubbish?

                                                  

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Liverpool City Region Combined Authority Scrutiny Panel 28th October 2015 Part 1 of 2

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Liverpool City Region Combined Authority Scrutiny Panel 28th October 2015 Part 2 of 2

Ged Fitzgerald (Chief Executive, Liverpool City Council) tries to explain devolution to a meeting of the Liverpool City Region Combined Authority Scrutiny Panel 28th October 2015
Ged Fitzgerald (Chief Executive, Liverpool City Council) tries to explain devolution to a meeting of the Liverpool City Region Combined Authority Scrutiny Panel 28th October 2015

You can view what was said at a public meeting earlier this week on the subject of devolution for Merseyside above. It’s openly admitted however that the communications/engagement/public relations side of this has been pretty poor.

I will disagree with something that’s been said throughout this process since it doesn’t make sense (although from press reports Cllr Phil Davies has done a U-turn in favour of a Merseyside Mayor).

It’s been stated (in the video above by Ged Fitzgerald, Liverpool City Council Chief Executive and Mayor Joe Anderson before) and again and again that the price of devolution is a Merseyside Mayor. This whole process based on the Cities and Local Government Devolution Bill which is wending its way through parliament.

I realise legislation does get amended, but as it’s on its 8th parliamentary stage out of ten it’s going to be eventually (especially as it’s a government bill) mainly in the form it’s now in.

Here’s the section on an elected Mayor.

It modifies the Local Democracy, Economic Development and Construction Act 2009 to state:

107A 15 Power to provide for election of mayor

(1) The Secretary of State may by order provide for there to be a mayor for the area of a combined authority.
(2) An order under subsection (1) shall not be used as a condition for agreeing to the transfer of local authority or public authority functions.”

In other words what is repeatedly repeated (and perhaps why they’re so bad at communications) doesn’t make sense. The government can’t say we’ll give you this if you have an elected Mayor and the price/prize thing is a load of rubbish. The government can’t do that as the legislation that will underpin this (which has to come into force to trigger the next stage which would result in devolution) makes that unlawful.

With me so far?

The government knows this is going on and I’m sure that it doesn’t make them look favourably on Liverpool when these sorts of political shenanigans to make them look bad, are being played out amongst Merseyside’s more ambitious Labour politicians.

So why would this have got started?

My best educated guess (as trying to make sense about what’s going on with the Liverpool City Region Combined Authority with its poor public relations is like wading through treacle) is a certain Labour politician wants (again) to blame something unpopular in some quarters on a Tory government (even if it isn’t entirely true).

Add to this the ambition in some quarters to actually be Merseyside’s Mayor (because once it’s a done deal all they’ll need is the Labour nomination) gives a motive.

So that’s my opinion. The whole price/prize thing is a politician’s way of deflecting the blame knowing that generally the media won’t inquire too deeply and I think readers of this blog can make a jolly good guess as to who wants to be Merseyside’s Mayor.

Once again Labour are blaming something they want (a Merseyside Mayor) on the government, stating an untruth (that it’s a condition of the devolution deal which it’s not because the legislation would make that unlawful) and hoping everyone will believe it?

Well who do you believe? I’ve outlined above the consistent line that they’re trying to spoon feed the Merseyside public and the press whilst deflecting any attempt at scrutiny by politicians by openly refusing to state how the negotiations are going?

There will be an extraordinary public meeting of all Wirral Council councillors (as well as public meetings of councillors in the other areas of Merseyside and Halton) to discuss the devolution deal. Wirral’s will be held on the 19th November starting at 6.00pm in the Council Chamber at Wallasey Town Hall.

Isn’t it about time the public were told the truth?

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VIDEO: A round-up of local Wirral and Merseyside politics by John Brace (part 2)

VIDEO: A round-up of local Wirral and Merseyside politics by John Brace (part 2)

VIDEO: A round-up of local Wirral and Merseyside politics by John Brace (part 2)

 

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John Brace on local Wirral and Merseyside politics (part 2)

Part 2 of this video series is shorter than part 1.

As before, this transcript of the video will include relevant links. After I recorded the video I found another bundle of papers that make up the BAM Nuttall contract on the scanner. There are also pages Wirral Council didn’t give me because of commercial confidentiality reasons. However I think you get the point that it’s a long contract!


still from a Youtube video about politics part 2 thumbnail
still from a Youtube video about politics part 2 thumbnail

Hello, I’m John Brace and this is the second part of my videos about local politics on Merseyside and on the Wirral.

One thing I’ll be talking about today is the Bam Nuttall contract. You may not have heard of Bam Nuttall, but they replaced Colas. If I went into the whole Colas saga and the senior officers that were suspended and paid oodles of money because Wirral Council didn’t quite get it right, well I’d probably use up all the tape on this camera.

But anyway going back to Bam Nuttall, in must have been 2014, Wirral Council signed up to a contract with them and the contract called, let’s see the Highway Services Contract. So for instance stuff to do with road works. Anything I think over a certain amount to do with traffic lights is someone else’s responsibility but I’ve scanned in the first bit of the contract which is here, see that’s the bit I’ve scanned in, but it’s an absolutely massive contract.

This is the next bit, bit not the rest of it! Then there’s this. That makes up the contract.

I have asked Wirral Council not to give me things on paper and to save the planet, not cut down so many trees and give them to me on a CD, but Wirral Council always seem to prefer paper.

Anyway the other thing I’ll be writing about in the near future is, this is some of the invoices I got during the audit for various things. For instance, this one is an invoice for £7,389.50 for the Moscow Ballet doing Giselle at the Floral Pavilion.

Moscow Ballet invoice Wirral Council Floral Pavilion 2014 £7389 50 thumbnail
Moscow Ballet invoice Wirral Council Floral Pavilion 2014 £7389 50 thumbnail

Now you may well say well what’s the point in getting an invoice for that? Well, the taxpayer actually subsidises the Floral Pavilion to a large amount of money.

So whereas for example Wirral Council sees closing down Lyndale School as a priority because they say they don’t have the money, they do have the money to be subsidising the tickets of rich people going to see the ballet at the Floral Pavilion. OK, I could look up the amount later.

The other thing I was going to talk about is Liverpool City Region Combined Authority. Now of course this was only set up in the recent past and has mired itself in all kinds of controversy over the devolution deal, price, prize, all that and elected Member stuff.

Anyway, what I did notice and this came as news to me, even though I report on the Liverpool City Region Combined Authority is that Knowsley Council has set up a website for the Liverpool City Region Combined Authority and they’re currently running a consultation on the things that make up the devolution deal.

Now, firstly before the Liverpool City Region Combined Authority was set up politicians quite categorically said, I’m not going to name the politician here but I’m sure people can find this out, I’ll probably find this out when I write this up on my blog.

They said the Liverpool City Region Combined Authority won’t cost any more money than the existing arrangements. Now registering a website, having a website hosted, dealing with all the stuff to do with a website does cost money! OK, the politicians will probably turn round and say, well this is from existing budgets or something, but it costs money that can’t be spent on something else.

So anyway, when I write this up on the blog, in the transcript I’ll include a link because to be honest it was news to me, it hasn’t been in a report that was submitted to the Combined Authority and as far as I’m concerned the only mention online about it is from Knowsley, whereas the Liverpool City Region Combined Authority is all the councils on Merseyside plus I think Halton and really speaking you shouldn’t just consult with the people of Knowsley, you should be consulting everybody.

So that’s a few things that I’ll be doing, let’s see today’s weather is cold, hence the jumper. When I was looking into market research as to what people want from a blog, one of the things that came up was weather forecasts. Now you’ll be glad to know that unless there’s a big demand I’m not going to start up with a map behind me and little symbols of clouds and sunshine, wind and all that because I really don’t fancy being a weather forecaster probably because people would love turning round and saying, “Well you said it would be sunny today John and now it’s raining!”.

But anyway if you really do want weather forecasts, there’s the Met Office website for that.

So that’s a summary of where I’m up to, this week there are hardly any public meetings because of the half term holidays and of course there’s Halloween at the weekend. One of the things that’s coming up of course is Bonfire Night and the Merseyside Fire and Rescue Service, ok I’m sure people are probably sick of me talking about Merseyside Fire and Rescue Service.

Merseyside Fire and Rescue Service are running, in I think conjunction with Wirral Council, trying to clear up the, say for instance the bits of wood and stuff like that people put together for bonfires because Merseyside Fire and Rescue Service probably really don’t want to be going round putting out a lot of small fires on Bonfire Night.

I mean they’re not being killjoys or anything, there are Council organised fireworks displays and things like that so people can go along. I’m sure there’ll be one in Birkenhead Park this year, people can make the usual jokes about taxpayer’s money going up in smoke, that kind of thing.

But anyway, that’s what I’ll be doing today, I’ve decided to keep it short because typing up these transcripts takes a while, but if there’s anything you want to leave a comment on or you think I should write about then please get in touch.

OK, thanks for listening.

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