Why did Merseyside Fire and Rescue Authority pay a PR company £250 a day?

Peter Rushton Merseyside Fire and Rescue Authority fire station merger consultation meeting Greasby 10th November 2014

On the right of the photo above is Peter Rushton. He’s chairing a public consultation meeting in Greasby last year, one of the public meetings held to consult with the public on the closure of West Kirby and Upton stations and a replacement fire station at Greasby. It’s a still from this video I took of the public consultation meeting.

He introduces himself as “I’m Peter Rushton from Merseyside Fire and Rescue Service”. What I don’t think the public knew then (or perhaps know now) is that Peter Rushton had a contract with Merseyside Fire and Rescue Authority through his service company Peter Rushton Consultancy Limited.

His contract has a secrecy clause which states:

"Publicity

10.8 Neither the Authority nor the Supplier shall publicise in any media or public announcement information regarding the terms of the Contract, or the Service supplied, without the prior written consent of the other party in either case such consent not to be unreasonably withheld."

However I’m skipping ahead a little here and I’d like to briefly make a point about how this contract was awarded. The contract originally for six months (although it was later extended for a further six months) was for a value of £12,500 and started on the 8th April 2014.

Peter Rushton Consultancy Limited was only incorporated a fortnight before being awarded the contract. Merseyside Fire and Rescue Authority’s constitution at the time required that for contracts of this value that two written quotations had to be obtained first. Merseyside Fire and Rescue Authority’s constitution required there to be a report if this isn’t the case and 3.3 of their contract standing orders detailed the procedure to be followed:

"For procurement projects under £172,514 for Goods and Services and £4,322,012 for Works, the Head of Procurement or their nominated deputy, and a Director must approve any exemption, prior to any commitment being given by the Authority to any supplier. The Chief Fire Officer will keep a register of exemptions granted detailing the nature and value of the contract, the circumstances justifying the exemption and the name of the contractor awarded the contract."

However what was the contract actually for? That’s detailed in an attachment to the contract. A day was defined earlier in the contract as meaning 7 hours of work.

Contract Merseyside Fire and Rescue Authority and Peter Rushton Consultancy Limited page 11

Contract Ref: RFQ/15/14

ATTACHMENT 1

SPECIFICATION OF SERVICES

Background

MFRA is in the process of merging 8 fire stations into 4 as part of a major service reengineering exercise to deliver large scale savings. This will necessitate a large programme of internal and external consultancy.

Project Scope/Deliverables

The service required is to deliver professional communications expertise, a communications strategy and support to the following people during the process:-

CFO and Exec team
Director of Strategy and Performance who leads the restructured corporate communications team in house

It will include devising and over-seeing the implementation of a comprehensive communication strategy with all stakeholders to effectively help deliver 4 fire station mergers.

The work will require (but is not limited to) attendance at the following meetings which may take place outside normal office hours:-

Internal PO briefings
Public consultation meetings both open and facilitated
To chair open public consultation meetings
Briefings with stakeholders in the area including MPs, councillors
IRMP meetings

The services will also provide for the following:-

Play a leading role in delivering two events
Long Service & Bravery Awards
The official opening of the Joint Control Centre
Assist Principle Officers on all PO Briefings
Provide strategic communication advice to Principle Officers

Plus any other duties in relation to the station merger programmes as requested by the Director of Strategy and Performance.

Timescales and fees

Timescales
The Services will be provided over a maximum of 8 days per a calendar month for a period of six months from the commencement date with an option to extend on the same or different terms which would be agreed between the parties prior to any extension period.

Times, days and hours of the service to be agreed between the parties in advance of any attendance.

Fees

The daily rate for the provision of the Services is £250 plus any pre-agreed expenses.
Total fee is £12,000 + expenses.

Contract Merseyside Fire and Rescue Authority and Peter Rushton Consultancy Limited page 12

Contract Ref: RFQ/15/14

ATTACHMENT 2

FEES AND INVOICING SCHEDULE

Peter Rushton will undertake the activities as per the Specification in Attachment 1 during the period 8^th April 2014 to 7^th October 2014 based on a commitment of 8 days per a calendar month. For the avoidance of doubt, the Authority shall only be charged for days actually undertaken by the Supplier.
48 days will be undertaken during the six month period at the standard day rate of £250. The total value of this contract (including any pre-agreed expenses) is therefore £12,000.
The Authority will apply a ceiling to the Travel & Accommodation Expenses Rates payable to the Supplier of £500 for the six month period. Expenses must be approved by the Authority in advance of being incurred and shall be payable at the Authority’s approved rates in force at the time of Contract award. The Supplier will be required to provide copies of relevant accommodation and travel receipts.
Consolidated invoices shall be presented every 4 weeks clearly detailing the dates on which activities were undertaken and itemising any expenses claimed which were incurred during the same 4 week period.
The Authority shall pay the Supplier the sums due under the Contract, on 30 day payment terms, from receipt of a true and valid invoice.

All invoices should be submitted to:

Merseyside Fire and Rescue Authority
Exchequer Services Department
Bridle Road
Bootle
Merseyside
L30 4YD

Contract Merseyside Fire and Rescue Authority and Peter Rushton Consultancy Limited page 13

Contract Ref: RFQ/15/14

AS WITNESS the hands of the parties

Signed by and on behalf of the Authority (In Caps): MERSEYSIDE FIRE AND RESCUE AUTHORITY JANET HENSHAW

Signature: (Janet Henshaw’s signature)

Date: 08/04/2014

Signed by the Supplier (In Caps): PETER RUSHTON CONSULTANCY LIMITED
Signature: (Peter Rushton’s signature)
Date: 08.04.2014

The six month contract was then extended for a further six months (see below).

Contract Merseyside Fire and Rescue Authority and Peter Rushton Consultancy Limited addendum page 1 of 2

Contract Merseyside Fire and Rescue Authority and Peter Rushton Consultancy Limited addendum page 2 of 2

Finally, the last report to the Merseyside Fire and Rescue Authority on the outcome of the consultation to close Upton and West Kirby fire stations with a new fire station at Saughall Massie mentioned many of the expenses that related to the consultation, but nothing was in that report about this contract. If the cost of this contract had been included in the report, there should’ve been an extra £6,250 mentioned in the report (£25,000 divided by four is £6,250).

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Why did Merseyside Fire and Rescue Service pay a consultant £2,500/day + expenses?

Principea Consulting Ltd Training Expenses invoice £2901 06p Merseyside Fire and Rescue Service

The above invoice was paid by Merseyside Fire and Rescue Service for a speaker from Principea Consulting Limited for a training event called Exercise Black Swan.

The first part £401.06 is for travel expenses that break down to these categories on the invoice.

£11.60 Single fare on hovercraft to Southsea
£80.00 taxi to/from Southampton Airport
£136.96 Air Fare return to Manchester
£166.50 Two nights in the Premier Inn in Liverpool
£6.00 Single return on fast catamaran

Total £401.06

The second part of the invoice is £2,500 for Speakers Fee for presentation on 3^rd of May 2013 (although this might be a typo and possibly should read 2014) and detailed as for the development and leadership of Exercise Black Swan. The rest of the invoice deals with VAT.

So, if I’ve read this invoice correctly Merseyside Fire and Rescue Service paid for someone to speak at a one-day training event the sum of £2,500, plus their travel and accommodation expenses of £401.06? Does anyone reading know what Exercise Black Swan was?

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£millions for PFI fire stations was borrowed from French and German banks

The three boxes on the left are the PFI fire stations contract

There are many people who know more about accountancy than I do. I look forward to reading their comments on this. Below are links to the funding documents, which is part of the Merseyside Fire and Rescue Authority PFI fire stations contract that I wrote about yesterday. I received a copy of the contract from Merseyside Fire and Rescue Service when I exercised a right under s.15 of the Audit Commission Act 1998 c.18 to inspect and receive copies of the contract.

I’ve left out 4.7 (Bank Account Mandates) as this contains details of sort codes and account numbers with specimen signatures for those accounts. It’s probably better that such information isn’t published!

I find these financial documents rather confusing to understand as they use a lot of jargon. To me it seems to be an agreement to borrow up to £50,436,936 between now and 2038 from two banks (Dexia Crédit Local (a Franco-Belgian bank) and Norddeutsche Landesbank Girozentrale (a German bank)). The banks then charge interest on the money borrowed.

If anyone can tell me what the interest rate is being charged by the banks for this money (based on the documents below), please leave a comment. I’ve tried reading these documents to figure it out but it seems to be made deliberately obscure (probably because it’s a variable rather than fixed amount).

4.1 Loan Facilities Agreement

4.2 Funders PA Direct Agreement

4.3 Construction Direct Agreement

4.4 FM Direct Agreement

4.6 Account Mandate Agreement

4.8 STID

4.9 Noteholder Subscription Agreement

4.10 ProjCo Loan Note Instrument

4.11.1 Dexia ISDA

4.11.2 Nord LB ISDA

4.12 Agency Fee Letter

4.13 Arrangement Fee Letter

4.14 Equity Guarantee

4.15 Intermediate Loan Note Instrument

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REVEALED: Minutes of the “secret” public meeting that privatised 7 of Merseyside’s fire stations

REVEALED: Minutes of the "secret" public meeting that privatised 7 of Merseyside’s fire stations

REVEALED: Minutes of the “secret” public meeting that privatised 7 of Merseyside’s fire stations

A long time ago, in a county far,
far away….

It is a period of strife.
The rebel Conservative
and Lib Dem parties,
have won their first General
Election victory against
the Labour government.

During the battle, rebel
parties managed to steal secret
plans to the Labour government’s
ultimate weapon, private finance
initiatives, a financial device
with enough power to
cause mass privatisation.

Pursued by no one,
John Brace races home aboard a train,
with the secret plans that show
the Merseyside people which Labour
councillors signed up to this.

A long time ago there was a public meeting of the Merseyside Fire and Rescue Authority. This meeting took place on Tuesday 21st September 2010. However you won’t find this meeting on Merseyside Fire and Rescue Authority’s website and even the minutes of this meeting are on the instructions of councillors are to be kept a big secret.

So for the first time, in an exclusive for this blog here are partial minutes of that meeting when councillors agreed to a massive PFI contract for many of Merseyside’s fire stations (Belle Vale, Birkenhead, Bootle & Netherton, Formby, Kirkdale, Newton Le Willows & Southport). Merseyside Fire and Rescue Authority would pay the PFI contractor not just for rebuilding these fire stations, but for running these fire stations for many years after. The payments to the contractors made by Merseyside Fire and Rescue Authority increase each year under a formula linked to the rise in the Retail Price Index. The contracts that councillors agreed to at the meeting below make up the first three boxes on the left of the photo below.

The three boxes on the left comprise the PFI fire stations contract

NOT FOR PUBLICATION

This report contains EXEMPT information by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972

MERSEYSIDE FIRE AND RESCUE AUTHORITY

SPECIAL MEETING

21^st September 2010

PRESENT: Councillors Tony Newman (Chair), Jimmy Mahon, Dave Hanratty, Sharon Sullivan, Les Byrom, Colin Strickland, Robbie Ayres, Barbara Murray, Ted Grannell, Denise Roberts, Linda Maloney, Lesley Rennie, Gerry Ellis, Martyn Barber, Steve Niblock and Eddie Clein.

Apologies for absence were received from: Councillors Jimmy Kendrick and Andrew Blackburn Independent Member Keith Pickup

1. Preliminary Matters

The Authority considered if there were any declarations of interest, matters of urgency or items that may require the exclusion of the press and public because of the possibility of the disclosure of exempt information.

(a) The following declarations of interest were made in relation to items of business on the agenda:

Councillors Linda Maloney and Robbie Ayres declared an interest in Agenda Item 3 – CFO/138/10 – PFI Project Final Sign Off, as they both sit on St Helens Council Planning Committee.
Councillor Mahon also declared an interest to this item as he sits on Sefton Council’s Planning Committee.

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(c) the following items of business required the exclusion of the press and public because of the possibility of the disclosure of exempt information:

Agenda Item 3 – CFO/138/10 – PFI Project Final Sign Off.
This report contains EXEMPT information by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.
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2. Minutes of the Previous Meeting

The minutes of the previous meeting of the Authority, held on 24^th June 2010 were approved as a correct record and signed accordingly by the Chair.

3. PFI Project Presentation

It was requested by the Assistant Chief Executive & Treasurer that Mr Skarratts – Fire Brigades Union representative be permitted to stay for the presentation and discussion of this item.

The Assistant Chief Executive and Treasurer and Mr. Schofield – PFI Project Manager gave a Power Point presentation to the Authority explaining the history of the Project from conception to the current day.

During the presentation Members were asked if they had a preference when building work was to commence as the building trade closes down for two weeks over the Christmas period.

Resolved that:

(a) Members had no preference when the building work was to commence as it would seem pointless to start work mid December then to close it down again.

(b) Noted that Balfour Beatty had confirmed they would do their utmost to drive the work forward to catch up and meet the deadline.

4. PFI Project Final Sign Off
(CFO/138/10)

This Minute is EXEMPT under paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.

Members considered Report CFO/138/10 of the Assistant Chief Executive & Treasurer concerning the Final Sign Off of the North West Fire & Rescue Services Private Finance Initiative Project.

Resolved that:

(a) The Final Business Case be noted and endorsed, and its submission to CLG be approved;

(b) Arrangements for the North West Fire & Rescue Services PFI Project be approved on the basis of the financial terms and general principles contained within the report;

The Project Agreement and its Schedules, being the principal agreement to be entered into between the Authority, Cumbria County Council and Lancashire Combined Fire Authorities (“the Authorities”) and Balfour Beatty Fire and Rescue NW Limited (“Project Co.”);
The Direct Agreement, being the agreement entered into between the Authorities, Nord LB and Dexia (“the Funders”) and Project Co. (“the Direct Agreement”);
The Collateral Agreements to be entered into between the parties set out below:
– The Authorities, Mansell Construction Services and Project Co.;

– The Authorities, Border Construction and Project Co.;

– The Authorities, Balfour Beatty Workplace and Project Co.;

– The Authorities, Blue Sky Architects and Project Co.;

– The Authorities, and any other principal building sub-contractors or relevant members of the professional team; and

– Any other Collateral Agreements required under the terms of the Project Agreement.
The Independent Certifier Deed of Appointment to be entered into between the Authorities, Project Co., the Funders and Gleeds;
The Co-operation Agreement being the agreement being entered into between (1) the Authority, (2) Cumbria County Council, and (3) Lancashire Combined Fire Authority in relation to the relationship between the Authorities for the duration of the Project (“the Co-operation Agreement”); and
Any other agreements, certificates, acknowledgements, waivers, notices, letters or other documents incidental to the documents listed above or otherwise necessary or desirable in connection with the Project.

(d) The Assistant Chief Executive & Treasurer (Kieran Timmins), or in his absence, the Director of Finance (Ian Cummins), be authorised to certify that the following contracts are intra vires in accordance with the Local Government (Contracts) Act 1997:

the Project Agreement and its Schedules; and
the Direct Agreement

(e) the Chief Executive & Chief Fire Office (Anthony McGuirk) or the Deputy Chief Executive & Deputy Chief Fire Officer (Michael Hagan) or the Assistant Chief Fire Office (Daniel Stephens) or the Assistant Chief Executive & Treasurer (Kieran Timmins) or the Director of Legal Services and Monitoring Office (Janet Henshaw) or the Deputy Clerk (Sarah Bourne) be authorised to execute the Agreements under seal on behalf of the Authority and agree that their execution of the Agreements should conclusively demonstrate approval by the Authority of the Agreements in their final form;

(f) the Chief Executive & Chief Fire Officer (Anthony McGuirk) or the Deputy Chief Executive & Deputy Chief Fire Officer (Michael Hagen) or the Assistant Chief Fire Officer (Daniel Stephens) or the Assistant Chief Executive & Treasurer (Kieran Timmins) or the Director of Legal Services and Monitoring Office (Janet Henshaw) or the Deputy Clerk (Sarah Bourne) (“the Relevant Officers”) as appropriate be authorised to take all necessary action in connection with the agreements, in consultation with Dickinson Dees LLP, the Authority’s legal advisers in relation to this Project; and in consultation with the Chairman of the Authority, or in his absence, the Deputy Chairman of the Authority;

(g) the Authority will indemnify any of the Relevant Officers in respect of any claims and costs relating to the contract arragements, provided that the Relevant Officer has acted reasonably and within the ordinary course of their duties.

(h) the Authority request the PFI Project Team to monitor the use of local economy and report back.

(i) Members placed their appreciation on record to the PFI Project Team for seeing the project through for the Authority.

(j) the Chief Executive & Chief Fire Officer placed his thanks on behalf of Officers to the Authority for supporting the PFI Project.

(k) noted that Kensington Fire Station was now complete; and

(l) requested information regarding Toxteth Community Hubs to be circulated to Members.

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Date of Next Meeting

Thursday 30^th December 2010.

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Which St Helens councillor claimed £12 for a salmon dinner and a drink of Coke?

Cllr Linda Maloney (Vice Chair of the Merseyside Fire and Rescue Authority) 30th June 2015 — **Cllr Linda Maloney (Vice Chair of the Merseyside Fire and Rescue Authority) on the left of the photo speaking at a public meeting on the 30th June 2015**

Continues from Which Wirral councillor claimed £50 on taxis to and from a public meeting?.

Pictured on the left of the photo above is Councillor Linda Maloney who is a Labour councillor from St Helens. She is also Vice-Chair of the Merseyside Fire and Rescue Authority.

Last year she received a basic allowance from St. Helens Council of £7,626, plus a basic allowance of £8,070 as she is on Merseyside Fire and Rescue Authority and a further £12,105 as she is Vice-Chair of the Merseyside Fire and Rescue Authority.

Despite receiving £27,800 from the taxpayer for her public duties as a councillor (although presumably she wouldn’t receive all of this as some would go on Income Tax and National Insurance), she still claimed from the taxpayer for a salmon dinner and a drink of Coke at a total cost of £12 at a time when there are many people in Merseyside reliant on handouts from food banks!

Councillor Linda Maloney expense claim page 1 of 3

Councillor Linda Maloney expense claim page 2 of 3

Councillor Linda Maloney expense claim page 3 of 3

Sadly we were only allowed to inspect photocopies of the expense claims and receipts. As you can see from the receipts above, like Cllr Steve Niblock she also claims for journeys by taxi. Unfortunately the receipts obscure the reasons given on her expenses form for this expenditure.

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Why did Merseyside Fire and Rescue Authority pay a PR company £250 a day?

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Why did Merseyside Fire and Rescue Service pay a consultant £2,500/day + expenses?

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£millions for PFI fire stations was borrowed from French and German banks

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REVEALED: Minutes of the “secret” public meeting that privatised 7 of Merseyside’s fire stations

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Which St Helens councillor claimed £12 for a salmon dinner and a drink of Coke?

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