Why is Merseytravel spending £57,000 + VAT to monitor this blog? Yesterday I wrote a story headlined, "Will the 20 councillors on Merseytravel mothball the Mersey Ferry terminal at Woodside?". Of course as Wirral Council (from council tax on Wirral residents and other sources) is budgeted to send Merseytravel £26.264 million this year, you … Continue reading “Why is Merseytravel spending £57,000 + VAT to monitor this blog?”
Why is Merseytravel spending £57,000 + VAT to monitor this blog?
Of course as Wirral Council (from council tax on Wirral residents and other sources) is budgeted to send Merseytravel £26.264 million this year, you may wonder how Merseytravel has been spending this money?
Below is an invoice to Merseytravel for £19,000/year + VAT (part of a 3 year deal) with Vocus UK Ltd (a company that monitors the media). Part of that is spent on monitoring this blog and arguing with me if they read something that they don’t like! Of course Merseytravel could subscribe to this blog via email for free, but instead the public sector spends this large sum instead.
I realise £19,000 + VAT a year is a drop in the ocean as far as budgets are concerned, but some would think that when there are cuts to be made that this sort of spending should fall in the discretionary category, but then for Merseytravel management possibly managing their reputation is not something that would be put forward for cuts?
Merseytravel Vocus UK Ltd invoice £22800 March 2014 thumbnail
Just out of interest here’s what Merseytravel get for their money (unless people are really interested in this topic I won’t publish the whole contract).
The Merseytravel signatures on the below documents are Frank Rogers (Interim Chief Executive and the Lead Officer for Transport/author of the Mersey Ferries report in yesterday’s story). The other signature is of Louise Outram who is Merseytravel’s Head of Legal and Committee Services. As usual the thumbnails link to higher resolution versions of the documents.
Merseytravel Vocus subscription agreement 2013 £4226 page 1 of 2 thumbnailMerseytravel Vocus subscription agreement 2013 £14857.50 page 2 of 2Merseytravel Vocus UK Ltd subscription agreement 2014 to 2017 £57000 thumbnail
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Will the 20 councillors on Merseytravel mothball the Mersey Ferry terminal at Woodside?
MV Snowdrop (one of the iconic Mersey Ferries) on the River Mersey with Liverpool skyline in the background
One of the reasons I have had not had all twelve days of Christmas off, is because next week there are two Merseytravel public meetings.
The one on the afternoon of Thursday 7th January (starting at 2.00pm in the Authority Room, 1st floor, Merseytravel Headquarters, No. 1 Mann Island, Liverpool, L3 1BP) is a meeting of all twenty councillors on the Merseytravel Committee (which is now part of the Liverpool City Region Combined Authority). This committee has councillors from Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral. You might point out that although being called Merseytravel, Halton isn’t in Merseyside but Cheshire (but it is part of the Combined Authority).
The Wirral representatives on Merseytravel are Cllr Ron Abbey (Labour), Cllr Jerry Williams (Labour), Cllr Steve Foulkes (Labour) and Cllr Les Rowlands (Conservative (the two opposition councillors who aren’t in the Labour Party of which he’s one call themselves the Merseytravel Alliance)).
It’s not a long agenda and I am looking forward to the Merseyrail question and answer session, but as you’ve probably guessed this piece is going to be about the Mersey Ferries.
Somebody at Merseytravel paid consultants called Mott McDonald to write a report on the Mersey Ferries. You can read the covering report and consultant’s report on Merseytravel’s website. Mott McDonald also involved two other firms of consultants Peter Brett Associates and Graham & Woolnough.
The bit in the consultants’ report that has been causing a lot of political concern this side of the River Mersey is the part that states,
"Unfortunately, due to the extensive capital investment required in the near future, it is recommended that Woodside terminal is mothballed and the pier infrastructure removed."
Obviously this would mean if that was ever decided that the Mersey Ferry would just go between the Pier Head in Liverpool and Seacombe. I presume if that happened that would mean the end of the U-Boat Story tourist attraction which is part of that complex too (all about a German submarine called U-534), the cafe there and Birkenhead would lose out on visitors.
There is an emotional connection people have this side of the water to the Mersey Ferries and I’m sure there are people still alive that remember when it stopped at New Brighton and New Brighton was a bustling seaside resort.
One of the councillors on the Merseytravel Committee, Cllr Jerry Williams is the Heritage Champion and I’m sure he could wax lyrical about how important the Mersey Ferries are for Wirral’s tourism.
For the last twenty-six years the running of the Mersey Ferries has been through a company controlled by Merseytravel called Mersey Ferries Limited. I quote from its latest accounts:
"The results of the company for the year show a loss on ordinary activities before tax of £230,468 (2014 – £243,486). This loss is wholly attributable to the trading activity of the tourism-related business (Spaceport and U534) as the core transport activity continues to receive revenue support grant from its parent undertaking."
So, Merseytravel needs to run/market Spaceport and U534 better, whether this means asking people who buy Mersey Ferry tickets if they’d also like to purchase a ticket for Spaceport/U534 and/or just better publicity/marketing anyway Merseytravel have been criticised in the past by their auditors for the tourism side of matters.
However a more detailed look at the accounts shows that Mersey Ferries Limited employ 52 staff (an annual wage bill of £1.6 million) but Mersey Ferries Limited don’t own the Mersey Ferries or the terminals at Woodside, Seacombe and the Liverpool Pier Head.
These assets (the boats and the terminals) are owned by Merseytravel.
I am now going to make a comparison to the business I’m in as this point is raised in the consultant’s report.
As you can’t get to and from a lot of the public meetings I report on by public transport, sadly some means of private transport is vital.
Being somebody with a bit of foresight I put money aside out of what I earn in case there was a major capital expenditure on that front. Sure enough last year the car failed its MOT and I had the money to buy another at a cost of £2,500 (because I’d had the foresight to put money aside). It was only sensible from a management perspective to do this. Of course in the public sector, it would probably be a risk on a risk register.
Merseytravel (according to the consultant’s report) is in the same situation. The Mersey Ferries are getting older, so are the terminals and both are costing more to repair. However being consultants they seem to view everything through the lens of a business and the private sector, all about making money when the public sector isn’t like that.
The sensible thing would’ve been to have a reserve capital fund to pay for these types of issues. I’ll hear on Thursday afternoon more detail.
However back to the Mersey Ferries, from a political perspective Birkenhead’s politicians are united (including Rt Hon Frank Field MP) that mothballing Woodside is frankly (no pun intended) a bad idea.
Now you will probably ask, is this going to be like the annual vote on whether to put up the Mersey Tunnel tolls? Wirral’s four representatives huff and puff and say what a bad idea it will be, vote against it but are then outvoted by the rest of the Merseytravel councillors? Who knows?
However the Mersey Tunnels are why the Mersey Ferries aren’t as well used as they used to be. The Mersey Tunnels were built using borrowed money. In fact if we look at Halton, £470 million was found (who knows what the final cost will be) for a bridge over the River Mersey there.
Compared to the cost of a new bridge, the costs of keeping the ferries and terminals going seem quite small.
When there’s a political will to do something the money can be found!
Indeed the report states having the Mersey Ferries brings wider economic benefits to the City Region.
Now there will be a future, more detailed reports about the Mersey Ferries brought to a future meeting of Merseytravel.
I am going to make a point I have already made at the cost of perhaps sounding unpopular. There is a large surplus on tunnel tolls used to prop up Merseytravel’s budget and save it going cap in hand to the local councils for more money.
My view was that as the Mersey Tunnels (built on borrowed money) adversely affected the popularity and viability of the Mersey Ferries that one should subsidise the other. As I’ve already pointed out the Mersey Ferries are a big draw to tourists and bring wider economic benefits to the region.
The tunnel tolls (which are decided by the Liverpool City Region Combined Authority on the recommendation of Merseytravel) have of course been a thorny political issue for a long time. Many people feeling that politicians have forever promised at election time that one day they will be scrapped but that they never are. Indeed political promises were made in the lead up to the General Election and the Combined Authority requested a report (which seems to be a long time in the writing).
However I am going to state my own personal viewpoint now. Whatever the rights and wrongs are over the Mersey Tunnel tolls, it’s one of the few things that Merseytravel/Liverpool City Region Combined Authority can control as the district council treasurers would no doubt be against an increase in the levy on the district councils (yes I realise budgets are ultimately decided by politicians). Although transport (due to the economic benefits it brings) is a priority from national government, Merseytravel can’t expect large increases in its grant.
Mersey Ferries compete against the trains, buses and other forms of transport that go through the Mersey Tunnels. However tourism is a big part of the economy in these parts. Blue Badge tourist guides take groups of people on the Mersey Ferries and transport has always been subsidised. Transport brings economic benefits.
However the consultants don’t see the big picture. They just see it like running a private business whose aim is to make a profit, the public sector ethos is not like that. The public sector runs services for the benefit of the public paid for through taxes.
It would be very sad if the Mersey Ferry terminal at Woodside was lost because of the short-sighted nature of consultants. Yes I was born in Birkenhead and most people see the Mersey Ferries at Woodside as part of the fabric of Birkenhead.
I realise what I have stated about Mersey Tunnel tolls will not be popular, I’m not advocating that they should go up. I just feel that as the Mersey Tunnels were built with borrowed money that it’s an unfair form of competition to the detriment of the Mersey Ferries. Hundreds of millions can be found to build a new bridge across the Mersey, yet much smaller amounts to keep the Mersey Ferries and terminals going can’t? It doesn’t make sense.
If you have any comments or a view on all this, please leave a comment below. If you’d like to come along to the public meeting on Thursday 7th January 2015, the meeting will start at 2.00pm in the Authority Room, 1st floor, Merseytravel Headquarters, No. 1 Mann Island, Liverpool, L3 1BP.
What’s happening in the week ahead in local government (30/11/15 to 4/12/15)? (Wirral Council, Merseytravel, Merseyside Police and Crime Panel, House of Commons and House of Lords)
Cllr Chris Blakeley addressing Wirral Council Regeneration and Environment committee about a new fire station in Saughall Massie September 2015. A decision in September 2015 was deferred by councillors but will be decided this week.
I thought it would be a good idea to restart a regular feature I used to do on this blog which was looking to the week ahead with a brief summary of what’s happening.
Wirral Council’s Families and Wellbeing Committee meets tomorrow (Tuesday 1st December) at 6.00pm at Wallasey Town Hall. There are no motions on the agenda but councillors will discuss the all age disability strategy and the day services local authority company called Wirral Evolutions.
Wednesday evening sees the high-profile issue of a fire station at Saughall Massie return for a debate by the Regeneration and Environment Committee. Also to be debated is a motion on Wirral’s nuclear industries. The changes to how Wirral Council will deal with objections to traffic regulation orders (already agreed by the Standards and Constitutional Oversight Committee will also be discussed. This public meeting also starts at 6.00p.m.
On Thursday you are literally spoilt for choice for public meetings and if I wished I could probably spend all day filming them!
The Merseyside Police and Crime Panel meets starting at 10.00am in the Council Chamber in Huyton. On the agenda are updates on serious and organised crime, the appropriate adult scheme, sustaining excellence, a home office pilot for mental health nurses to be colocated in custody suites, a night-time levy consultation (the consultation has already finished but just applies to Liverpool and 70% of the levy on licenced premises will go the police for policing Liverpool’s night-time economy), proposals for future Chief Constable recruitment and other routine items.
Other than minutes and the co-option of Cllr Joan Lilly (who replaces the late Cllr Sharp), councillors will hear an update on smart ticketing, discuss the Merseytravel Fees and Charges Review for 2016/17 and a report on delivering an improved bus "offer".
On that last report I should also declare an interest as their current social media policy by my initial reading of the policy/report to councillors seemed to state that Wirral Council employees (unless they can prove some business need such as the press office) were prevented from accessing this blog, the associated Facebook Group, Twitter account and as mentioned in the report itself also video of public meetings of Wirral Council on Youtube. However a reader has left a helpful comment stating that this blog isn’t blocked which is useful information I am interested to know.
I’d better declare a financial interest as Youtube pays me a very small amount in royalties from videos I’ve filmed (and by small I mean £1.10p for October 2015). In fact Wirral Council blocks employees from watching its own Youtube channel.
If the new policy goes ahead, Wirral Council employees will be allowed to read this blog (after writing this a reader left a comment to say they already can despite this blog falling into the social media category) and the above sites that fall into the social media category in their breaks.
However Big Brother, sorry Wirral Council will be watching what they get up to, so who knows what red flags you’ll raise if you read this blog or Wirral Leaks or well something really subversive like Wirral Council’s Youtube channel!
So that’s the round up for the week, I used to also provide a quick overview of what’s happening this week local government wise in two more open and transparent public bodies the House of Commons/House of Lords which you can watch online.
This afternoon starting at 4.00pm the Communities and Local Government Select Committee will discuss the Cities and Local Government Devolution Bill. The Cities and Local Government Devolution Bill has implications for Merseyside over an elected Mayor in 2017 and the devolution changes that have already received a lot of press coverage. As I’ve seen at least one local government officer here in Merseyside refuse to answer politicians’ questions about the government’s side of what’s happening, this looks like an interesting opportunity to hear about what’s happening from another perspective.
Tomorrow starting at 9.25am, the Public Bill Committee will discuss the Housing and Planning Bill. At the same time (starting at 9.30am) the Education Select Committee will discuss Holocaust Education and in the afternoon starting at 3.00pm the Treasury Select Committee will ask questions of the Chancellor on the Comprehensive Spending Review (which is only partly related to local government). In the House of Lords a Select Committee will be discussing the built environment starting at 10 am.
On Wednesday morning starting at 8.55am the Second Delegated Legislation Committee will discuss the Draft Police and Criminal Evidence Act 1984 (Codes of Practice) (Revision of Code E) Order 2015. For those not familiar with police procedure Code E relates to the audio recording of interviews with suspects. Starting at 9.30am the Work and Pensions Select Committee will discuss the local welfare safety net, also at 9.30am the Education Select Committee will discuss regional school commissioners, the Treasury Select Committee will continue debating the Comprehensive Spending Review starting at 2.15pm and the Public Accounts Committee will discuss reform of the rail franchising programme.
Thursday sees more discussion of the Housing and Planning Bill by the Public Bill Committee in two sessions starting at 11.30am and 2.00pm. The House of Lords Select Committee will continue to discuss the built environment and hear from a former Chief Executive of the Planning Inspectorate.
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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
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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
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).
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)).
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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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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