Is Lyndale School under threat just so Wirral Council can provide a further £2 million to a company that already has plenty?

Is Lyndale School under threat just so Wirral Council can provide a further £2 million to a company that already has plenty?

Is Lyndale School under threat just so Wirral Council can provide a further £2 million to a company that already has plenty?

                                             

Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School L to R Cllr Stuart Whittingham, Cllr Tony Smith, Cllr Bernie Mooney and Lyndzay Roberts
Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School L to R Cllr Stuart Whittingham, Cllr Tony Smith (Cabinet Member for Children and Family Services), Cllr Bernie Mooney and Lyndzay Roberts

Last Thursday morning I visited Lyndale School in Eastham. This was my first visit, although regular readers of this blog will know that I have written extensively on the topic and filmed many public meetings of Wirral Council on the many stages involving its potential closure in January 2016.

Regular readers of this blog will also know that despite promises made in February 2014 by senior officers at a call in that matters would be dealt with in a completely “open and transparent” way, that the recent 13 page letter received from Surjit Tour turned down a request for a meeting between myself and Wirral Council on this matter.

Thankfully the Lyndale School appears to be behaving in a far more “open and transparent” way than Wirral Council is!

I wanted to start this piece by describing my impressions of the school as some of my observations about a visit to Lyndale School raise further unanswered questions.

On the same plot of land as the Lyndale School is also Eastham Youth Centre. Clearly the current consultation is about the Lyndale School, however I know relatively little about this Youth Centre. Is this Youth Centre open, closed, working or threatened with closure itself? I don’t really know the answer to that question and would appreciate somebody better informed, or more closely connected to Eastham than I to leave a comment.

Moving to the Lyndale School itself, it looks from the outside like many other primary schools do on the Wirral. Unlike when I went to school in the 1980/1990s where there literally was an “open door” policy at primary schools, these days (as is common with all other schools on the Wirral now) you need to press a buzzer on an intercom system to be let in.

There is then a reception area on the right, which at the time of my visit had many stuffed toy animals on the counter. To the left is a visitors book for visitors to sign and visitors badges on which the names of visitors can be written. On the wall is also a photo of each member of staff who works there and their job title.

My personal view on the latter point, is that organisations that do such a thing, tend to be more open and transparent than those who try to hide behind a bewildering, faceless and largely unaccountable bureaucracy.

As we had both been walking up from Eastham Rake train station, someone we both knew, who lives in Eastham had been passing in their car and had kindly offered us both a lift to the Lyndale School. So we both arrived earlier than I expected, which gave me a chance to see people coming and going for a while and how things were going. Despite the pressures the Lyndale School is going through, staff were professional and the “open door” policy referred to at the call in I saw in action as one of the parents arrived while we were waiting. If a decision is made to close the Lyndale School, this is one of the matters that the parents of the children at Lyndale School have expressed concern about as they cannot see this in operation at the other schools suggested.

There is obviously a lot of trust that exists between the parents of children at Lyndale School and the staff there. Certainly there is (despite the stress the School is under because of the political issues) a lot of goodwill between the parents and staff at the school. That’s something that never appears on Wirral Council’s balance sheet as it’s something that can’t be quantified. This is part of the reason the parents of children at Lyndale School want the School to stay as it is, as they don’t see the same ethos at Lyndale School at either Stanley School or Elleray Park.

Echoing what I have heard Julia Hassall (Director of Children’s Services at Wirral Council) say many times, I will also make the following point. Some schools are closed down because they are “failing schools”. Lyndale School doesn’t fall into that category and that is not one of the reasons behind the consultations on its closure. I wish to make that as clear as I can (as has Julia Hassall at many public meetings). The view from the public can be to jump to the conclusion that schools are only threatened with closure because things at them are going pear-shaped. This is not the case at Lyndale School and I will also point out that no final decision on closure of Lyndale School has yet been made by Wirral Council’s Cabinet.

I have referred before in articles describing Lyndale School as a “hospital school” as personally I think it is probably a more accurate description of what goes on in Lyndale School. Think of the political fuss that would happen if say in the lead up to a General Election (and I’ll point out now that I know of no such plans) that there was a consultation on closing the children’s ward and the hospital school at Arrowe Park Hospital? Think of it purely from that perspective and you can perhaps see how emotional an issue it is for both the people directly involved and the wider community.

There are many new matters involving Lyndale School I could write about but instead I will explain what I was at Lyndale School for. There was a very interesting meeting of the Friends of Lyndale School Association held there which was a private meeting, so there is a limit about what I will write here about it.

However, I had better explain what and who the Friends of Lyndale School Association are. The Friends of Lyndale School Association are a small charity set up in March of this year and registered with the Charity Commission in June. Their charitable objects are:

To advance the education of pupils in the school in particular by:
developing effective relationships between the staff, parents and others associated with the school;
engaging in activities or providing facilities or equipment which support the school and advance the education of the pupils.

It’s hard to describe exactly what the Friends of Lyndale School Association is, but the closest easily understood comparison to it, is a parent-teacher association or PTA for the Lyndale School. As with all PTAs they raise money to be spent on their charitable objects and you can (if you wish) donate to them online on the webpage on Justgiving website for the Friends of Lyndale School Association.

If the Lyndale School closes, the Friends of Lyndale School Association have made it clear that any remaining funds would be donated to Claire House (which is a children’s hospice on the Wirral). The Wirral Globe are also printing interviews with the parents of Lyndale School (which if you wish to read the first three are on the Wirral Globe website starting here, continuing here and the most recent one is and I will at this stage (and I don’t often do this about someone else in the local media) thank Emma Rigby of the Wirral Globe for her reporting in the Wirral Globe of this story.

Yesterday evening there was supposed to be a meeting of all councillors at Wirral Council. However as most people probably know already a lot of public sector unions went on strike and that meeting was shifted to the evening of the 20th October 2014. One of the matters on the agenda is a minority report (no not the film Minority Report with Tom Cruise this refers to something different) but a minority report about the recent Lyndale School call in.

In fact there are five minority reports about various matters. There is one about the Lyndale School call in submitted by various councillors in the Conservative Group that you can read on Wirral Council’s website. The minority report procedure hasn’t been used for a long time and I think most people are unsure whether it’s an item that could trigger a debate or whether it would just be voted on. Had it not been for the strike yesterday, this would probably have already happened.

After the call in meeting on 2nd October 2014, the second consultation on closure of Lyndale School should’ve started as the Cabinet delegated this matter to Julia Hassall. She therefore probably knows more the timescales than I do. As far as I know (and Wirral Council’s constitution has been through a lot of changes in the past few years), a decision of a call in committee is still implemented by officers even if a minority report is submitted to the next Council meeting (which should’ve taken place yesterday evening but was I would guess put back a week because of the strike).

My concerns about the entire process in this matter over the last year and how this has all been done I’ve written about before. I am not going to repeat myself here. There are however concerns about corporate governance at Wirral Council about this matter that I haven’t expressed in public.

Personally I think it is a crying shame, that on an issue as sensitive as Lyndale School, that all political parties now represented on Wirral Council (whether Labour, Conservative, Lib Dem or Green) can’t come to an agreement (behind closed doors if need be) to pause this whole process and have a review.

Wirral Council claim that they can’t keep the Lyndale School open in 2015-16 due to a shortfall between what the Lyndale School predicts they will need and what Wirral Council is willing to give them. The shortfall will be
~£190,000.

I have written on this blog before that Wirral Council could easily find this small amount of money if they wished and move it around from existing budgets if the political will was there. In fact papers that went the Wirral Schools Forum last week showed that through reductions in this year’s budget they found ~£2 million. So where’s this money going? It’ll be put in a reserve and used next year to go to Wirral Schools Services Limited who have a PFI Schools contract for various schools (and two city learning centres) with Wirral Council as part of a ~£12 million/year contribution.

Wirral School Services Limited’s account show that for 2014 they had £1.93 million in cash assets, which is £6.33 million in assets minus their £4.39 million in liabilities.

What’s amazing is that a Labour Council, who trumpets its “socialist values” in election leaflets, it is seemingly happy to make £2 million of cuts in year to the Wirral Council’s Schools Budget for this year (which obviously need Wirral Schools Forum approval and Cabinet approval) to help plug a financial gap in the 2015-16 Schools PFI contract, but when it comes to an amount ten times smaller than that to be found no report I’ve seen so far even lists finding the money to keep Lyndale School open in 2015-16 (from such as underspends in existing budgets) as an alternative option!?

Despite the words of Wirral Council in the past that they would put vulnerable people such as the pupils of Lyndale School first, it seems that the school is under threat whilst capitalist greed gobbles up the available funds. If Wirral Council so wished, it could either end or renegotiate the Schools PFI contract. The schools system should not be run to feed the profits of private companies!!! Nor should vulnerable children have such a low priority!!! These are two of my main frustrations with the current situation.

I will repeat again, if you wish to donate to the Friends of Lyndale School Association you can here. The Justgiving website takes a 5% cut of all donations and charges £18 a month to the Friends of Lyndale School Association. However the other 95% (minus £18/month) is paid directly to them.

I know I will continue to get criticism (and I really don’t mind comments on this blog attacking me) from some quarters for how I’m reporting the Lyndale School issue, there has been however nothing so far that convinces me that all the decisions taken by Wirral Council so far have either been taken in the right way or for the right reasons. If everything was done so far “by the book” and in an “open and transparent” way, I would not be as irked by how the matter has happened as I am.

On a personal note, I realise there has been a deterioration in relations between Wirral Council and those associated with the Lyndale School. If other special schools on the Wirral think they will escape whilst Wirral Council’s focus is on Lyndale School, they will need to have a drastic rethink and not bury their heads in the sand. I will repeat here what I said at Lyndale School on Thursday.

There is a current consultation that the government is running on the draft Schools and Early Years Finance (England) Regulations 2014. These are the regulations (a type of law) that Wirral Council has to conform to when setting schools’ budgets annually.

At the moment, because of a part of the law known as the “minimum funding guarantee”, for this 2014-15 year Wirral Council could not drop school budgets such as Lyndale Schools by more than 1.5% based on what their previous year’s budget allocation was.

However the draft regulations being consulted on, whereas they (in draft form) keep the minimum funding guarantee for mainstream schools, get rid of the current minimum funding guarantee for special schools. Personally and I’m going to get quite political now, I think it is morally wrong to protect mainstream funding for mainstream schools, but at the same time allow local councils to (if they so wish) to totally change the budget (and therefore nature) of special schools which can in extreme cases ultimately force them to close. Obviously the draft regulations may be altered post consultation, but you can respond to that consultation run by the Department of Education here. That consultation closes this Friday (17th October) at 5.00pm.

If the new regulations (following consultation) abolish the existing legal protections for special school budgets, it will be perfectly legal for local councils (such as Wirral Council) to come up with a schools funding formula for 2015-16 that leads not just to the potential closure of schools such as the Lyndale School but dramatically changes the funding allocated to other special schools as the new banding system was agreed earlier this year at a call in a controversial 8:7 vote.

Wirral Council has shifted money out of the agreed budget for special schools to cross subsidise other parts of the education system, such as PFI. This is of course entirely legal if officers get the necessary approvals from the Wirral Schools Forum and others. However in other local authorities, an underspend in the special education side of matters would not be used to plug financial holes and financial instability elsewhere. Other Schools Forums take the prudent approach that underspends on the special educational needs side are put in financial reserves earmarked for that area of education.

The spare capacity such as underspends of money that was agreed should be spent in the special schools system, has instead been used to cross subsidise other parts of Wirral Council’s Schools Budget. The money however always seems to flow out of the special schools system and never back to it. Had these political decisions not been made, there would be more than enough money to keep Lyndale School open (at least for the 2015-16 year and possibly beyond). However instead the influence of a large company such as Wirral Schools Services Limited with large financial reserves has been listened to, whilst the pleas of Lyndale School parents merely to continue with what they already have, have so far been met with a lack of political will to explore alternative options and a knee jerk reaction to blame the situation on the Coalition government, the Church of England and even the Lyndale School itself, without apparently getting across to the public the personal responsibility that politicians at Wirral Council must take for each decision they make.

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What does an election year, Cllr Phil Davies, the Schools PFI contract, Lyndale School and the Wirral Schools Forum have in common?

What does an election year, Cllr Phil Davies, the Schools PFI contract, Lyndale School and the Wirral Schools Forum have in common?

What does an election year, Cllr Phil Davies, the Schools PFI contract and Lyndale School have in common?

                                                 

Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School L to R Cllr Stuart Whittingham, Cllr Tony Smith, Cllr Bernie Mooney and Lyndzay Roberts
Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School which was reviewed by the Coordinating Committee on 2nd October 2014 L to R Cllr Stuart Whittingham, Cllr Tony Smith (Cabinet Member for Children and Family Services), Cllr Bernie Mooney and Lyndzay Roberts

Added at 8/10 12:04 In response to a reader comment about this article, I am at the start of this adding a declaration of interest, in that my wife Leonora has the liability for Council Tax at the property we both reside. Council Tax is mentioned in this article. However it is already public knowledge that we both reside on the Wirral.

Earlier this year on the 16th June 2014 I made a FOI (Freedom of Information Act) request to Wirral Council for the PFI (private finance initiative) contract Wirral Council has for various schools (eight secondary, one primary and two City Learning Centres). That request was turned down on 9th July 2014 with the Council claiming section 43 (commercial interests) applied to the information. I requested an internal review of that decision on 9th July 2014 and am still waiting three months later for the result of that internal review!

In August 2014, as part of the 2013/14 audit using a right I have under s.15 of the Audit Commission Act 1998, I also requested a copy of the Schools PFI contract.

The next month (September 2014) I was asked to come and collect a paper copy of the contract from a Wirral Council building in Hamilton Square, Birkenhead, which it later turns out is incomplete and missing at least a few hundred pages (which I suppose is to be expected when you’re dealing with Wirral Council)!

One of the duller sides of journalism and blogging is the amount of reading you have to do to write properly about the topics you’re writing articles on. An alternative route is to just use a lot of quotes from experts. After all when I write about matters, people leave comments and sometimes ask follow-up questions in the comments or by email so I try and familiarise myself with the topic I’m writing about first so this can be easily done. This contract runs to 2031, costs ~£12 million a year and is with a company called Wirral School Services Limited (and others).

The day before yesterday I ploughed through the rest of the Schools PFI contract Wirral Council has with Wirral Schools Services Limited (at least the bit of it I have and isn’t missing). Some of the is haven’t been dotted and the ts crossed on the pages I have and there is a large chunk of it that is missing there are some bits I am unsure of. I’ve asked for the rest but how long that will take I’m not sure!

The contract has many boring details that even I find dull to read that I hope even you dear reader would not really find particularly interesting, such as details about school boilers, how many square metres rooms are in various schools on the Wirral & what colours the hot and cold water pipes are (although knowing my luck I’ll end up with a comment from an interested heating engineer telling me how much they’d love to read a detailed article about the building maintenance side of schools).

The Schools PFI contract also has the level of detail of the full names, NI numbers, dates of birth and other details of various employees employed to work at these schools such as cleaners and other staff. Wirral Council also runs the multi-£billion Merseyside Pension Fund, so there is an admission agreement with Merseyside Pension Fund to do with pension rights. There are pages and pages of details about staff as part of an admission agreement with Merseyside Pension Fund. I will however not be publishing such detailed information on living people as it would be a goldmine for ID fraudsters and the height of irresponsible journalism to publish dates of birth, NI numbers and names for large numbers of people!

In order to explain, I need to first write a summary about what this Schools PFI contract is about. This is based mainly on the index.

Part of it is a series of leases to Wirral Council for nine schools and other type of educational premises called city learning centres covered by the contract. At the end of the contract (2031 or earlier if the contract is terminated or modified) ownership of the schools and City Learning Centres reverts back to Wirral Council. Part of the contract is also for services provided at the schools and City Learning Centres such as school meals, caretaking, repairs to the buildings et cetera. Some information on this goes to the schools themselves, some to Wirral Council. There is also a joint liaison committee set up with people from Wirral Council and the contractor.

There are also variations within the contract to account for differences between the schools, for example from memory* (*the caveat is I don’t always remember things correctly and haven’t double checked this against the contract again) I think Leasowe Primary School uses a slightly different system for school meals to the other secondary schools.

Some of the contract also relates to transitional provisions from the previous supplier Jarvis. This applied really in the early stages of the contract.

It’s all very long and very complicated and unless you have an interest in the area or are involved with Wirral Council, one of the nine schools (which are Leasowe Primary, Bebington High, University Academy of Birkenhead (formerly called Park High), South Wirral High, Weatherhead High, Hilbre High, Prenton High, Wallasey High and Wirral Grammar Girls) or two City Learning Centres (Wallasey City Learning Centre and Hilbre City Learning Centre) involved or the contractors in some way it’s probably not very interesting to you. It also interestingly falls into the set of contracts that Wirral Council will be legally required to publish at some future stage in the coming weeks.

The contract is so long and heavy (even with the missing pages) that I had to familiarise myself with our manual handling procedures just to figure out how to lift it up (and am grateful to myself that I didn’t drop it on my foot).

The first section marked “Private and confidential” is an agreement between Wirral Borough Council [1] and Wirral Schools Services Limited [2] dated 9/9/2004 and is called “Deed of Amendment and Restatement relating to Wirral Schools PFI project”. Addleshaw Goddard (a law firm) are mentioned at the bottom which are I presume are the law firm that drafted it. This section is 10 pages. This was when it was renegotiated in 2004.

So Section 1 – “Deed of Amendment and Restatement relating to Wirral Schools PFI project” 9/9/2004 10 pages

Then there’s section two, which is a “CONFORMED COPY” of a project agreement dated 27/3/2001 between Wirral Borough Council and Wirral Schools Services Limited which was amended and restated pursuant to the “Deed of Amendment and Restatement” (I’ve just mentioned) dated 9/9/2004. Rowe & Maw or 20 Black Friars Lane, London are at the bottom of the title page, their ref is 617/343/476/27909.1. Rowe & Maw were a legal firm based in London, they then became Mayer, Brown, Rowe & Maw in 2002 and in 2007 shortened their name to Mayer Brown. Apparently now they are the 22nd largest law firm in the world.

Section 2 – “Project Agreement amended and restated pursuant to a Deed of Amendment and Restatement dates 9/9/2014” dated 27/3/2001 198 pages

Schedule 1 (Volume 1 of the schedules) between Wirral Borough Council and Wirral School Services Limited is mainly series of headleases and underleases for various schools:

Pt 1 Bebington Headlease (16 pages and refers to Land Registry title MS435412)
Pt 2 Hilbre Headlease (16 pages and refers to Land Registry title MS435411)
Pt 3 Park High Headlease (15 pages and refers to Land Registry title MS435414)
Pt 4 Prenton High Headlease (8 pages) * note the copy I have been given is partially incomplete as this is missing pg 9 and schedules 1-4
Pt 5 South Wirral High Headlease (15 pages and refers to Land Registry MS435824)
Pt 6 Wallasey Headlease * missing
Pt 7 “Not used”
Pt 8 Weatherhead Headlease * missing
Pt 9 Wirral Girls Headlease * missing
Pt 10 Bebington Underlease * missing
Pt 11 Hilbre Underlease * missing
Pt 12 Park High Underlease * missing
Pt 13 Prenton High Underlease * missing
Pt 14 South Wirral High Underlease * missing
Pt 15 Wallasey Underlease * missing
Pt 16 “Not used”
Pt 17 Weatherhead Underlease * missing
Pt 18 Wirral Girls Underlease * missing
Pt 19 Plans * missing

This comes to only 55 pages supplied out of an estimated 280 which is hardly a way for a Council to comply with its requirements under the audit legislation is it!? Hopefully they treat Grant Thornton (their external auditors better than this)!

Schedule 2 and 3 following it are then completely missing. I wonder at times if Wirral Council can’t do something simple like actually making a copy of a contract for the purposes of the 2013/14 audit without messing it up, what else are they getting wrong (are they deliberately trying to hide something)?

These are:

Schedule 2 Financial Matters * completely missing all parts 1-8
Part 1 Lenders Direct Agreement * missing
Part 2 The Council’s Design and Building Contract Direct Agreement * missing
Part 3 The Council’s Support Services Management Direct Agreement * missing
Part 4 Design and Building Contract Performance Guarantee * missing
Part 5 Support Services Management Agreement Performance Guarantee * missing
Part 6 Initial Senior Funding Agreements * missing
Part 7 Other Initial Funding Agreements * missing
Part 8 Rules for Refinancing * missing

Schedule 3 Works * completely missing parts 1-10 and appendices
Part 1 Design Development Procedure * missing
Part 2 Prohibited Materials * missing
Part 3 Schedule of Key Dates * missing
Part 4 Outline Design Documents * missing
Part 5 The Completion Standards * missing
Part 6 Decant Programme Methodology * missing
Appendix 1 Decant Programme: Park High * missing
Appendix 2 Decant: Further Obligations * missing
Part 7 Handback Requirements * missing
Part 8 Project Programme * missing
Part 9 Construction Site Rules * missing
Part 10 Handback Survey * missing

Schedule 4 between Wirral Borough Council and Wirral School Services Limited is to do with Payments and is split into:

Cover pages (2)
Part 1 Definitions (11 pages, definitions from “Agreed Market Testing Proposal” to “Zone Drawings)
Part 2 Services Contract Payment (5 pages)
Part 3 Performance Deduction Look-up Table (1 page)
Part 4 Table of Service Units per School (1 page) GSUs for each school totalling 28,047 GSUs
Part 5 Monitoring (7 pages)
Part 6 Utility Services (5 pages)
Part 7 Third Party Use (4 pages) dealing with issues such as vending machines
Part 7A Catering (6 pages)
Part 8 Value for Money Testing (12 pages)
Appendix 1 Form of Performance and Payment Report (45 pages) These are examples of the payment reports that go to each school either from Jarvis Workspace FM or Wirral Schools Services Limited.

Schedule 5 is the Accommodation Services Output Specifications (82 pages long)

Schedule 6 is the Support Services Output Specifications
Part 1 Building and Asset Management Output Specifications (12 pages)
Part 2 Support Services Requirements and Performance Tables (59 pages)
Part 3 Service Level Agreements (such as control of pests) (141 pages)
Part 4 Service Level Agreements Alteration Procedure (4 pages)

Schedule 7 Reports and Records
Part 1 Reports (3 pages)
Part 2 Records (2 pages)

Schedule 8 Variations
Variation Notice (1 page)

Schedule 9 Insurance (2 pages)
Part 1 The Part 1 Insurance Period (10 pages) deals with construction all risks, business interruption insurance & public liability insurance
Part 2 The Part 2 Insurance Period (8 pages) deals with property all risks insurance, business interruption insurance & public liability insurance
Appendix 1 Endorsements (4 pages)
Appendix 2 Broker’s Letter of Undertaking (4 pages)
Appendix 3 Business Interruption Insurance – the Authority’s Obligations as Insurer (4 pages)
Appendix 4 Schedule of Insured Parties (2 pages)

Schedule 10 Liaison Committee (4 pages)

Schedule 11 Compensation on Termination
Part 1 Definitions (6 pages)
Part 2 Project Co Default (6 pages)
Part 3 Authority Default (2 pages)
Part 4 Notice by the Authority (8 pages)
Part 5 Fore Majeure, Uninsurability and Planning Challenge (1 page)
Part 6 Corrupt Gifts (1 page)

Schedule 12 Dispute Resolution Wirral Borough Council & Wirral School Services Limited
Cover pages (2 pages)
Dispute Resolution (9 pages)

Schedule 13 Senior Representatives (1 page)

Schedule 14 Compensation Events (2 pages)

Schedule 15 Methodology for Asbestos (2 pages)
Appendix 1 MB Wirral Policy (16 pages)
Appendix 2 Asbestos Survey Risk Assessment (6 pages)

Schedule 16 Liquidated Damages (2 pages)

Schedule 17 Quality Systems
Part 1 Design and Build Period Quality System (24 pages)
Part 2 Operational Period Quality System
Appendix 1 A Quality Policy (1 page)
Appendix 2 B Certificate of Approval (2 pages)
Appendix 3 C Proposed QA Implementation Plan (1 page)
Appendix 4 D Contact Directory (1 page)
Appendix 5 E Local Procedures (1 page)

Schedule 18 Employees
Part 1 Employee Information (6 pages)
Part 2 Terms and Conditions of Employment (1 page)

Schedule 19 Admission Agreements and Bonds
Part 1 Jarvis Workspace FM Limited (Wirral Borough Council and Jarvis Workspace FM Limited and Wirral Schools Services Limited) Merseyside Pension Fund Admission Agreement with Transferee Admission Body (15 pages)
Part 2 Compass Group PLC
(Wirral Borough Council and Compass Group PLC and ??? ) MPF Admission Agreement with Transferee Admission Body (12 pages)
(Wirral Borough Council and Compass Group PLC and ???) Agreement for a bond and indemnity in respect of sums due under an admission agreement arising from the premature termination of a best value arrangement (8 pages)
Part 3 MTL Commercial Limited (22 pages)

Part 3 is an admission agreement to the Merseyside Pension Fund between Wirral Borough Council, MTL Commercial Limited and Merseyside Pension Fund from 2001. This also relates to an unfilled in guarantor (which I will have to assume is Compass Group PLC), MTL Commercial Limited and Wirral Borough Council as well as a bond and indemnity. This admission agreement also relates to Jarvis Workspace FM Limited. This is one of the schedules which includes pages and pages and pages of staff surnames (organised alphabetically by staff surname), initials for staff names, NI (National Insurance) numbers, post titles, pension and birth dates et cetera. However on the copy I was supplied with much has been left incomplete such as the date the agreement was agreed in 2001, the office address of MTL Commercial Limited and much other detail is missing too such as director and secretary signatures.

The end of schedule 19 is an agreement between Wirral Borough Council and MTL Commercial Ltd and ???? which is titled “Agreement for a bond and indemnity in respect of sums due under an admission agreement arising from the premature termination of a best value arrangement”. This too is incomplete and unsigned.

Schedule 19 – Admission agreement (Merseyside Pension Fund/ Wirral Borough Council/MTL Commercial Limited) – 22 pages

Schedule 20 is a one page staff security protocol which details the information staff have to provide on any criminal matters and also references they have to provide before getting a job. There is also information detailed here that they have to provide to their employer during their employment if things change.

Schedule 21 is “operational site rules” – 19 pages long

Schedule 22 is a “draft transitional services agreement” which is an agreement for the supply of transitional services between Wirral Borough Council and Jarvis Workspace FM Limited which is 145 pages long

Schedule 23 is about the City Learning Centre (8 pages long)

Schedule 24 is the “non moveable equipment schedule of rates” (5 pages)

***

As the contract is so long, has been supplied incomplete and falls within the category that Wirral Council should be publishing within a matter of weeks, I won’t be scanning in the whole contract and publishing it! If there are any sections you would like me to publish though (that aren’t in the missing sections) please leave a comment or send me an email.

It is going to be discussed at the Wirral Schools Forum meeting tonight as the Wirral Schools Forum is being asked to make £2.3 million of in year savings to pay for it (which is in addition to the £600,000 of savings made earlier this year to pay for PFI), see report of Julia Hassall (Director of Children’s Services) here and an appendix showing its effect (if agreed) on the 2014-15 Schools Budget.

Just to make it clear the amount paid under the PFI contract isn’t going up by £2.5 million a year as it’s pegged to increases based on RPI.

The ratio between December 2013 RPI and December 2012 RPI was an increase of 2.674%.

There is then an “efficiency factor” of 10% built into the contract.

So, 90% * 2.674% = 2.4066%

So the yearly increase this year in PFI costs is in the region of ~£289,000 . Next year’s increase will be known when the RPI data for December 2014 is published.

So why ask is the Wirral Schools Forum being asked to make £2.3 million of cuts in year (2014-15), in addition to the £600,000 of cuts earlier this year for the Schools PFI contract then and what is this actually going to fund instead?

Well last year there was a 0% rise in the Council Tax (after a budget was prepared a few months before showing a 2% rise). Yes a freeze on Council Tax means Wirral Council got a grant which equates to a 1% rise. I presume for the financial year 2015/16 based on statements previously made by Cllr Phil Davies that senior officers at Wirral Council are also planning for a 0% rise for 2015/16 (although we’ll all find that out for sure over the next few months at a Council meeting as plans are sometimes subject to change).

It’s also interesting to note that Cllr Phil Davies (who is the Cabinet Member for Finance/Leader of the Council) four year term of office comes to an end in May 2014 so this is an “election year” for him (presuming he wishes to stand again which by all the recent press articles about Cllr Phil Davies related to Birkenhead & Tranmere means it is likely that Labour have picked him as the candidate for this area already). What better way for Cllr Phil Davies to get himself elected by telling the voters of Birkenhead and Tranmere that he has frozen their Council Tax (helpfully leaving out in leaflets to the voters in Birkenhead and Tranmere the inconvenient facts that this will come at the expense of cuts made this year (pending Wirral Schools Forum approval) to the money spent on pupils with a disability, statements, support for Special Educational Needs, maintenance of school buildings, axing funding for the School Sports Coordinator & use of swimming baths (although this two last items may be funded in future by schools directly themselves through the traded services) and other in year cuts to the Schools Budget)? Oh and also another inconvenient truth that thanks to cuts made by his Cabinet to Council Tax support many in Birkenhead & Tranmere are now having to pay 22% of their Council Tax bill whereas previously they had to pay nothing as 100% of their bill was covered by Council Tax Benefit?

After all, if Cllr Phil Davies is challenged between now and the elections in May about why he is making all these cuts by presumably the Conservatives, Lib Dems or Green Party, he based on past experience of his answers to this very question will probably blame the need to make any cuts to Wirral Council’s budget on the Coalition (Tory and Lib Dem) government, which of course absolves himself of any responsibility for these “difficult decisions”. This is of course is conveniently leaving out the fact that:

a) Wirral Council decides itself whether it wants to freeze Council Tax, rise it or decrease it each year. There is a majority Labour administration in charge of Wirral Council since 2012 so they make these decisions on the budget, Labour decided the 2013/14 budget, the 2014/15 budget and will decide the 2015/16 budget. If Labour want a Council Tax rise over x%* (a figure set by the government each year which was set last year at 2%) they have to win a referendum of the people and
b) that these are all locally made decisions over how the money is spent and that he’s the Cabinet Member for Finance (therefore he is the politician with democratic accountability to the public (and other politicians) for tax and spending decisions).

Of course there are some that would also say that these plans have come from senior officers at Wirral Council, not the Cabinet Member himself and will ask well is it a case of the officer tail wagging the Labour dog instead of the other way round? However senior officers at Wirral Council and politicians do surprise, surprise work together! These large in year changes to the agreed budget do also show as Cllr Stuart Kelly (Lib Dem audit spokesperson) quite recently pointed out at a recent public meeting that in his opinion this year’s (14/15) budget isn’t stable if changes are being made in year!

In fact at this point a £3 million overspend is predicted by the end of the year! I’m also curious as to why the date of the next Council meeting has been shifted from the 13th October 2014 to 20th October 2014. I’m sure it can’t be just because I tabled a question and they need an extra week to answer! If anyone knows the answer to that mystery please leave a comment?

Here’s an interesting question that stems from all this though. Despite the flim flam and contradictory statements over Lyndale School, is the price of Cllr Phil Davies getting reelected in May 2015 in Birkenhead & Tranmere the closure of Lyndale School (in Eastham) or is he just “rubber stamping” plans of senior officers?

After all the closure of Lyndale School currently pencilled in for January 2016 (if agreed by Cabinet later this year) won’t actually happen until after the May 2015 elections have taken place.

Can the many Labour councillors on Wirral Council seriously sleep at night knowing all this or are some behind closed doors expressing their disquiet about how this has played out in private meetings (especially the ones facing the electorate in May 2015)? Are Labour councillors worried that being directly involved in a decision about Lyndale (whether Cabinet or call in) will either affect their ability to be reselected by their fellow party members or indeed their future election prospects when they face the public at election time? Does this also explain why so many Labour deputies were sent to the Coordinating Committee meeting about Lyndale School last week? It’s all very mysterious isn’t it as one can only guess at what happens behind closed doors!?

I know the Cabinet decision to consult on axing Children’s Centres (currently on hold due to Conservative councillors calling it in) isn’t going down well with some Labour Party members (to put it mildly). That decision (made in the last few weeks by Cabinet) “called in” by Conservative councillors (Councillor Paul Hayes seems to be fast becoming the “call in councillor” and is going to be reviewed at a special meeting of the Coordinating Committee on the 15th October 2014 starting at 5.00pm (you can read the papers for that decision here).

Will Labour councillors decide that enough is enough when it comes to children’s centres, or will they agree with the Labour Cabinet and agree to start a consultation on closing them?

We’ll just have to wait and see! Please leave a comment on the above as I am interested to read your views!

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Marvin the Martian returns to try to understand the incredible Lyndale School situation and the £1 million SEN budget cut

Marvin the Martian returns to try to understand the incredible Lyndale School situation and the £1 million SEN budget cut

Marvin the Martian returns to try to understand the incredible Lyndale School situation and the £1 million SEN budget cut

                                                  

Marvin the Martian from Disney's Looney Tunes
Marvin the Martian from Disney’s Looney Tunes

The below is a fictional interview with Marvin the Martian about Lyndale School. Marvin the Martian is trademarked to Warner Brothers Entertainment. Our legal team point out their trademark doesn’t actually cover its use on blogs but in case they try to argue this blog is an “entertainment service”, it isn’t, so no laughing! Yes I mean it, not even a smile! We also point out it’s not an infringing use of class 9 of this trademark as that refers to its use on goods rather than virtually.

We rely on s.30 of the Copyright, Designs and Patents Act 1988 and class this as “fair dealing” due to the acknowledgement above. As the The Copyright and Rights in Performances (Quotation and Parody) Regulations 2014 have come into force earlier this month, we’ll rely on this too and the new section 30A on parody.

JOHN BRACE: Thanks once again for agreeing to be interviewed about Lyndale School. We asked Wirral Council for a meeting about Lyndale School but they declined.

MARVIN THE MARTIAN: You’re welcome. Well that is a shame I was looking forward to finally meeting people from Wirral Council that I have seen on your video broadcasts. Why do your politicians think they can get away with making decisions like this?

JOHN BRACE: They believe they’re doing the right thing in making “difficult decisions” that are “unpopular”. Also many are what’s in “safe seats”, and many of them (if they choose to do so) will not have to face the public in an election for many years to come.

MARVIN THE MARTIAN: But they’re still subject to laws right, that meeting last Thursday the people making the decision didn’t have the required statutory guidance for decision makers which includes the SEN Improvement Test as part of the papers for that meeting?

JOHN BRACE: Well the politicians could have adjourned the meeting and received the correct documents but they chose not to. However you can’t expect politicians to know what they’re doing. They’re elected to look at things from the public perspective and rely on officer advice in such matters. Anyway preparing the papers for a meeting is an officer function in consultation with the Chair.

MARVIN THE MARTIAN: You can’t blame this on the committee services officer Lyndzay Roberts though as she only includes in the papers for the meeting what she’s been given in time for it to be published and on that subject why do they keep picking the committee services officer who is a wheelchair user for the Lyndale School meetings?

JOHN BRACE: I’m afraid I can’t read people’s minds and would prefer not to answer that question.

MARVIN THE MARTIAN: Ahh the “Lynn Wright” defence eh? How much do you get paid then?

JOHN BRACE: Not enough to be answering questions from fictional characters about difficult subjects and I’m assuming your second question is a joke! I know what I got paid last year, so does HMRC. I can estimate what I will get paid this year but as I’m on a fixed amount plus an element that is related to performance, I literally could only tell you it’s above £x,xxx/year. I’m also not sure if you mean gross or net salary as a certain proportion of my earnings I don’t get as they are paid in taxes. I have income from sources other than my salary though.

MARVIN THE MARTIAN: Ha ha! OK, I won’t pry too much! Back to Lyndale, what was decided on Thursday?

JOHN BRACE: To uphold the Cabinet decision of 4th September 2014 on a majority 9:6 vote.

MARVIN THE MARTIAN: And remind me what the Cabinet decision of 4th September 2014 was?

JOHN BRACE: Following the first consultation, to have a further second (but different) consultation on closure.

MARVIN THE MARTIAN: I thought they’d just had a consultation!

JOHN BRACE: This is a similar but different sort of consultation.

MARVIN THE MARTIAN: OK, I never realised closing down a school was made so complicated!

JOHN BRACE: A final decision on closure has not yet been made. This is just an “in principle” decision on closure.

MARVIN THE MARTIAN: And how much is this all costing?

JOHN BRACE: Who knows? The school closure/retirement costs budget for this year is £326,000. However it looks like £200,000 of that will be moved to another budget heading soon.

MARVIN THE MARTIAN: Which budget heading?

JOHN BRACE: PFI (private finance initiative).

MARVIN THE MARTIAN: Why’s that?

JOHN BRACE: Well you always have to plan for the worst and hope for the best with school closures, extra call in meetings, delays, legal challenges et cetera. Sometimes that means budget allocated goes unspent which can be used for other things.

MARVIN THE MARTIAN: So they’re not going to use a £200,000 underspend on the school closure budget to keep Lyndale open another year (costing ~£190,000)?

JOHN BRACE: No, pending a decision by the Wirral Schools Forum an underspend on the school closure budget will be spent instead next year on the ~£12 million a year PFI contract.

MARVIN THE MARTIAN: OK, so when does this second consultation on closing Lyndale School start?

JOHN BRACE: Wirral Council officers had authorisation to proceed with implementation of the Cabinet decision of 4th September 2014, once the call in ended on 2nd October 2014. This has been delegated by the Cabinet to Julia Hassall to implement.

Regulation 8 of the Openness of Local Government Bodies Regulations 2014 will require Wirral Council to publish a notice on their website shortly after Julia Hassall implements this decision. This public notice has to contain the date of the decision, a record of the decision and reasons, details of any alternative options considered and rejected and the names of any of the Cabinet that declared a conflict of interest in the decision.

MARVIN THE MARTIAN: Well how likely are Wirral Council to do that?

JOHN BRACE: They probably won’t. They always have great difficulty in complying with their legal requirements (of which there are many).There have been many decisions delegated by councillors to officers taken since these new regulations came into effect near the start of August 2014 ranging from taxi licences to other types of decision. Another part of the same regulations dealt with filming of public meetings, which thankfully settles a long running industrial relations dispute with us and them. As far as I can tell no public notice has been published by officers relating to those yet?

MARVIN THE MARTIAN: Why ever not?

JOHN BRACE: Some of the officers to whom the decisions have been delegated to make don’t have the authorisation to publish public notices on the website through the Modgov system. Also this change to legal requirements (which should’ve been implemented from August) would require a change to working practices which requires consultation with the trade unions through the HR department before implementation. Finally, in the vast majority of cases, there are either existing capacity issues with staffing or the decisions are so minor that nobody’s really apart from myself is paying that much attention whether internally or externally while more interesting things are happening and putting the necessary political pressure on to ensure these new regulations are implemented?

MARVIN THE MARTIAN: Like what is more interesting?

JOHN BRACE: Like officers’ plan to persuade the Wirral Schools Forum on Wednesday evening to make £1 million of in year cuts this year in 2014/15 to (SEN Top Ups/Independent School Fees (£600,000), statements (£200,000) and support for SEN (£200,000)).

MARVIN THE MARTIAN: And why are they proposing to cut a further £1 million from the SEN budget this year?

JOHN BRACE: So they can pay for PFI costs in 2015/16.

MARVIN THE MARTIAN: And why have PFI costs risen so much?

JOHN BRACE: Because a political decision was made a long time ago to take ~£2 million out of the PFI budget for 2015/16 and get schools to pay for it instead through budget cuts. Also the calculation in the contract bases yearly increases in how much is paid based on the RPI value in December of one year compared to the previous year then multiplied by ninety percent. That’s my simple explanation, the contract itself refers to the 90% as 0.9 and has a formula as to how the increases are calculated.

MARVIN THE MARTIAN: So if the other special schools (other than Lyndale) think they’re safe they’re not?

JOHN BRACE: Indeed, their budgets were protected this year by dropping by more than 1.5%. Based on the draft regulations circulated by the government (Schools and Early Years Finance (England) Regulations 2014) as part of the current consultation (which closes on October 17th 2014), for special school that protection (assuming the draft regulations aren’t changed) will end in 2015/16. The department for education can be emailed at 2014SchoolFinanceRegulations.Consultation@education.gsi.gov.uk about the policy side of the consultation, or consultation.unit@education.gsi.gov.uk or by telephone on 0370 000 2288 or by mail to Department for Education, Beth O’Brien, Department for Education, Great Smith Street, London SW1P 3BT. Further detail about the consultation is on the DfE website here and you can respond online to this consultation here.

However for mainstream it looks like the minimum funding guarantee of at least 98.5% of last years budget will continue in some form?

MARVIN THE MARTIAN: So because they can (or assume they can) Wirral Council will target more special schools for cuts in the future?

JOHN BRACE: Probably, but officers don’t decide that however they can recommend that. That’s ultimately decided by the Wirral Schools Forum/councillors.

MARVIN THE MARTIAN: So is the money they’re getting for schools each year, the ~£175 million they get from the government under the direct schools grant going down next year?

JOHN BRACE: No it isn’t, but a financial and purely local decision by Wirral Council has been made to withdraw the extra funding from Wirral Council that paid for the PFI affordability gap. This amounts to £600,000 this year and millions next year (2015/16). The PFI affordability gap is the total PFI expenditure minus the fixed grant minus the costs schools pay for the services under the PFI contract which is next year about £2.6 million.

MARVIN THE MARTIAN: So who was the Cabinet Member that originally agreed to this PFI contract in the first place?

JOHN BRACE: Councillor Phil Davies, the current Leader of Wirral Council.

MARVIN THE MARTIAN: Is there any way out of the contract, when does it end and can it be renegotiated?

JOHN BRACE: Yes, 2031 and yes.

MARVIN THE MARTIAN: So will they try to renegotiate to save money or terminate it?

JOHN BRACE: Probably not no, management were asked this at the last Wirral Schools Forum, however management only know what they’re told about the contract, they’re not managing it on a day to day basis. Terminating it would be expensive as there is still 17 years left to run, renegotiating would be the more likely option of the two if the political will is there.

MARVIN THE MARTIAN: So you’re saying the Wirral School Forum members asked Wirral Council officers that hadn’t actually read the contract?

JOHN BRACE: Judging by their answers probably not, managers don’t do things themselves they delegate tasks such as reading contracts and managing contracts to others, maybe not even people that are directly line managed by them but people lower down the food chain.

You can’t expect a senior manager to read such a long contract. Even if they did, it’s hundreds of pages long. It would be very hard to remember all the details unless they brought an electronic searchable version along to the Wirral Schools Forum on say a tablet computer or alternatively circulated an electronic copy to the members of the Wirral Schools Forum. I suppose as a councillor (and member of the Wirral Schools Forum) Cllr Wendy Clements could ask for a copy if she so wished.

MARVIN THE MARTIAN: So what does the PFI contract actually say about renegotiation?

JOHN BRACE: Wirral Council have to ask the provider (Wirral Schools Services Limited) about changes to the contract and be specific. Wirral Schools Services Limited then have a limited time period in which to respond stating (and I summarise here) whether they agree or not to the changes or not. If they agree they are implemented. However if there is disagreement between Wirral Council and the contractor there is a dispute resolution procedure that can be followed.

MARVIN THE MARTIAN: So are there any changes they have to agree to?

JOHN BRACE: Yes certain changes they have to agree to. For example there was a legislation change recently on free school meals for children under a certain age. As this was a legislation change, Wirral Council can ask for such changes to be implemented so that Wirral Council does not breach its legal obligations.

There are other categories of change that the contractor has to agree to too.

MARVIN THE MARTIAN: Indeed, so could Wirral Council’s legal department come up with similar changes which could result in the total cost being lowered?

JOHN BRACE: Wirral Council’s legal department has issues of its own. Also it in order to implement changes quickly it would require agreement of the contractor Wirral Schools Services Limited. Wirral Council would have to seek appropriate authorisation internally from sufficiently senior officers and if it had large budgetary implications in terms of costs or savings then also authorisation from politicians.

MARVIN THE MARTIAN: So it’s possible?

JOHN BRACE: Anything’s possible. However as the contractor is a large organisation with a turnover off the top of my head of about £62 million, although they are considerably smaller in annual yearly revenue budget than Wirral Council, Wirral Council still get scared of organisations with that sort of financial clout, as well as organisational and legal resources at their disposal.

MARVIN THE MARTIAN: Does current senior management at Wirral Council want to renegotiate the contract?

JOHN BRACE: If the Wirral Schools Forum and/or politicians in the administration asked them to they’d have to to look into the option (which would depending on the option and the savings/cost implication would affect budgets through to 2031). After negotiations, generally officers would bring back options to politicians/Wirral Schools Forum for a meeting. However the Schools PFI contract is complex, it is hard for anyone to understand easily.

If neither of those formally happen, senior management already have enough on their plate already and lack the current internal capacity as they are already negotiating a 7 year extension to a contract of a similar size (~£12 million a year) with Biffa Waste Services Limited.

MARVIN THE MARTIAN: But Biffa is in a different strategic directorate to schools!

JOHN BRACE: Indeed but there are capacity issues at the management level and across the organisation at all levels. This is due to annual leave requirements, illness, other factors and the mere practical constraints of there only ever being so many people to keep all the plates spinning up in the air at once.

MARVIN THE MARTIAN: Oh dear. So what is the likely net result to be?

JOHN BRACE: Instead of renegotiating savings on a contract, Wirral Council in the absence of either strong leadership at either the Wirral Schools Forum level or political level will probably accept the status quo and instead make in year cuts of a further £1 million to special educational needs. Officers will probably point out that they have tried to make sure the cuts don’t adversely affect front line services, but they will!

MARVIN THE MARTIAN: How on Mars do you make £2 million of in year cuts without it affecting frontline services?

JOHN BRACE: Indeed… here is a link to the papers for tomorrow’s Wirral Schools Forum meeting which is a public meeting starting at 6.00pm in the Council Chamber in Wallasey Town Hall.

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Expense claim forms for Councillor Tony Smith 2013 to 2014 reveal mysterious Lyndale School meeting in February 2013

Expense claim forms for Councillor Tony Smith 2013 to 2014 reveal mysterious Lyndale School meeting in February 2013

Expense claim forms for Councillor Tony Smith 2013 to 2014 reveal mysterious Lyndale School meeting in February 2013

                                        

Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School L to R Cllr Stuart Whittingham, Cllr Tony Smith, Cllr Bernie Mooney and Lyndzay Roberts
Councillor Tony Smith (Cabinet Member for Children and Family Services) at the Special Cabinet Meeting of 4th September 2014 to discuss Lyndale School L to R Cllr Stuart Whittingham, Cllr Tony Smith (Cabinet Member for Children and Family Services), Cllr Bernie Mooney and Lyndzay Roberts

Councillor Tony Smith is a Labour Party councillor for Upton ward. He is the Cabinet Member for Children and Family Services. His expense claims relate mileage claims for travel to Cabinet meetings, the Youth Parliament meeting in November 2013, Council meetings, meetings of the Health and Wellbeing Board, meetings of the Schools Forum, meetings of the Children’s Trust Board, attendance at a social workers conference at the Floral Pavilion, the meeting of 5th February 2014 to consider the Lyndale School call ins, meetings of the Youth and Play Service Advisory Committee, a safeguarding meeting at Acre Lane, meetings with staff, training sessions and a meeting with parents and “Mr D” (or possibly “Ms D” or “Mc, D”) at Lyndale School on the 1st February 2013.

Some of his claims were not allowed, all seven disallowed claims relate to Cabinet meetings.

The meeting with parents and the mysterious “Mr D” (or possibly “Ms D” or “Mc, D”) on page 7 at Lyndale School on the 1st February 2013 comes as a surprise to me and this was three weeks before Wirral Council valued the land and buildings at Lyndale School at £2,696,103.00 and many months before the plan for closing the school became known to the public just before Christmas 2013.

Could the mysterious “Mr D” (or possibly “Ms D” or “Mc, D”) referred on page 7 be David Armstrong (Wirral Council’s Assistant Chief Executive/Head of Universal and Infrastructure Services)? Mr David Armstrong has responsibilities for school assets such as the land and buildings is on or does it refer to someone else? Who were the parents and the mysterious “Mr D” (or possibly “Ms D” or “Mc, D”) that Cllr Tony Smith met with at Lyndale School? What was talked about at this meeting and what was it about?

UPDATED 15:51 Lyndale School visitors’ book shows that Cllr Tony Smith, Julia Hassall and Dawn Hughes all signed the visitors’ book around the same time on that day. It is possible that Cllr Tony Smith is referring to parents + Mc (referring to Alison McGovern MP) and D (referring to Dawn Hughes).

Back in February 2014 David Armstrong denied he had visited the school and that anyone else in his team had gone to look at Lyndale School.

David Armstrong stated at a public meeting on the 27th February 2014 “I can honestly say Councillor Fraser that I don’t know the answer because I’ve deliberately because I don’t want it to confuse the debate and become a distraction, we have done no action whatsoever looking at the Lyndale site.

I said to Pat this evening after the parents spoke at the last meeting, I would very much like to have visited the school and have a look around, so I did talk to Pat but also to remind myself about the school as I was a mainstream teacher.

I deliberately haven’t done that because if I go to the school particularly with my current monitoring responsibilities everyone will think I’ve come to look at the building or look at the site or look at the land. I know the area that the site occupies but genuinely myself and no one else in my team that work with me would have come to look at the site. So I couldn’t actually quote that figure tonight.”

and

“I tried to explain, that I am known as the asset person in the Council and currently I have all the baggage and tags that go with that. There has been no work done on looking to dispose of the site.”

Below are the nine pages of expenses forms submitted by Councillor Tony Smith.

Updated 20/10/2014 Wirral Council provided a further six pages of expenses forms for Councillor Tony Smith which can be viewed here.

Cllr Tony Smith expenses claim 2013 2014 page 1
Cllr Tony Smith expenses claim 2013 2014 page 1
Cllr Tony Smith expenses claim 2013 2014 page 2
Cllr Tony Smith expenses claim 2013 2014 page 2
Cllr Tony Smith expenses claim 2013 2014 page 3
Cllr Tony Smith expenses claim 2013 2014 page 3
Cllr Tony Smith expenses claim 2013 2014 page 4
Cllr Tony Smith expenses claim 2013 2014 page 4
Cllr Tony Smith expenses claim 2013 2014 page 5
Cllr Tony Smith expenses claim 2013 2014 page 5
Cllr Tony Smith expenses claim 2013 2014 page 6
Cllr Tony Smith expenses claim 2013 2014 page 6
Cllr Tony Smith expenses claim 2013 2014 page 7
Cllr Tony Smith expenses claim 2013 2014 page 7
Cllr Tony Smith expenses claim 2013 2014 page 8
Cllr Tony Smith expenses claim 2013 2014 page 8
Cllr Tony Smith expenses claim 2013 2014 page 9
Cllr Tony Smith expenses claim 2013 2014 page 9

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The £1,092,160.12 PFI invoice connected to Lyndale School & why Wirral Council can afford to keep Lyndale open

The £1,092,160.12 PFI invoice connected to Lyndale School & why Wirral Council can afford to keep Lyndale open

The £1,092,160.12 PFI invoice connected to Lyndale School & why Wirral Council can afford to keep Lyndale open

                                               

Wirral Schools Services Limted Invoice Wirral Borough Council 12th December 2013 PFI Schools £1,092,160.12

To the left is a £1,092,160.12 invoice for Wirral Council for paying a company called Wirral School Services Limited under a PFI agreement. This is a monthly invoice, so the yearly total comes to about £12 million. As previously reported this is a story about money and education that is rather complex, but does connect to Lyndale School.

The current PFI contract was signed ten years ago, when Cllr Phil Davies was Cabinet Member for this area. It was originally supposed to run for 25 years in 2001 but was extended in 2004.

For many of these years, if I am getting this right, it was funded from general Council resources and not through the Schools Budget. This year £600,000 of costs for the PFI agreement are paid for by an £1.4 million underspend in money that it was agreed would be spent on special educational needs.

Next year, it’s been stated that Wirral Council want to reduce its contribution to the PFI agreement by £2 million, which led to some angry exchanges at a recent Wirral Schools Forum meeting about the consequences of this decision.

Basically it means that for 2015-16 (the year that there’s been the recent consultation on closing Lyndale) that £2 million of extra compensatory savings will have to be found because of a political decision. The actual funding from one year to the next that Wirral Council is receiving for education isn’t really changing that much so this £2 million issue has dare I say it ruffled some feathers.

I state political decision because (yes there was a U-turn on this last year so who knows really) statements already made are that Labour want to freeze Council Tax in 2015-16 at 2014-15 levels.

However, going back to Lyndale School (soon to be discussed at a special Cabinet meeting). This underspend on special educational needs (money already agreed that should be spent in this area) was shifted out of that budget to pay for the PFI costs. I have requested the actual contract between Wirral Council and Wirral School Services Limited, first by a freedom of information request (denied), now as part of the audit (I’m still waiting).

Based on what I do know, I can tell you this. Part of the PFI cost is funded by a fixed grant Wirral Council get of £5.5 million a year. There are facilities management support costs built into the contract that Wirral Council charge the schools for which total about £3.3 million a year. However this leaves a gap of £2.5 million.

Until this year (although strangely at the Lyndale call in officers stated that funding educational items from outside the schools budget would cause problems and as far as I remember somewhat glossed over the fact that they were already doing this to the tune of £millions for the PFI schools), Wirral Council have plugged this gap.

The problem is essentially due to a political decision not to raise Council Tax in 2015-16 and not carry on with this arrangement (diverting an underspend from special educational needs to plug the gap this year) that although the education money Wirral Council receive is hardly changing that from next year (when there’s a General Election on) the cuts to education can be blamed on the national coalition government despite this being a local decision that’s been made.

I’ve looked at what happened in another borough on Merseyside at their Schools Forum when there’s an underspend in special educational needs. The money didn’t get diverted in this way and was carried forward to the next year to be also spent in that budget area.

There’s no legal impediment in money between different budget headings in the schools budget being shifted around in this way, but as far as I can tell not one of the schools covered by the PFI agreement fall into the special schools category (please correct me if I’m wrong on this point). Therefore there is the moral question to be asked should money previously agreed to be spent on special educational needs be diverted to pay for PFI projects in this way?

Obviously if you’re a parent or member of staff at Lyndale School the answer to that would probably be no. Yes, I have somewhat simplified matters and there are complicated factors involved also in schools funding such as the minimum funding guarantee which for example for this year guarantees that the money schools receive from Wirral Council won’t drop by more than 1.5%.

Interestingly as Wirral Council wanted to bring in its “banding” for special educational needs this year, it asked the Education Funding Agency for permission to drop school budgets by more than the minimum funding guarantee (which is a legal requirement) allows. However this request was withdrawn.

There is also a little confusion as to what was agreed by the Wirral Schools Forum in its five bands for special educational needs. There’s £10,000 for each child, then bands depending on need that go up to £16,000 (band five). However band five was never an absolute limit and from what I remember there was flexibility to go above this in certain circumstances. In fact I doubt putting funding into bands would have ever been agreed by the Wirral Schools Forum without that uncapped band.

You see there is an uncapped band that applies to independent schools, non-maintained schools or schools located outside of Wirral. If Lyndale closed and some children were transferred to schools outside of Wirral there wouldn’t be a cap on their education funding. In fact it almost seems wrong to cap funding to Wirral’s special schools, but not outside of the Wirral.

To give an example of a special education school on the Wirral that falls into the independent category, below is a three page invoice to Wirral Council for one term which totals £535,098.00. These fees range from £10,213 a term to £23,361.00 (or over a year would be from ~£31k to £69k per a pupil). Just for comparison, the consultation on closing Lyndale is because ~£33k a child per a year is seen as high, but when you compare that to what children at West Kirby Residential School cost Wirral Council is actually lower.

44 children at West Kirby Residential School cost £535,098 a term (£12,161 a term). There are three terms in a year, so that works out at about £36,483 a child there compared to ~£33k at Lyndale.

The truth is Wirral Council officers have made an artificial comparison between Lyndale School and other special schools were the needs of children (and therefore staffing costs) were far, far less than at Lyndale School which made Lyndale School look expensive by comparison.

What do you think? Below is a heavily redacted invoice (unfortunately as its double-sided some of the redactions come through on the other side) that backs up my argument that Wirral Council does have the money currently to fund special schools at Lyndale levels (or even in the case of West Kirby Residential School above Lyndale levels).

West Kirby Residential School invoice November 2013 Page 1 of 3 £535098
West Kirby Residential School invoice November 2013 Page 1 of 3 £535098
West Kirby Residential School invoice November 2013 Page 2 of 3 £535098
West Kirby Residential School invoice November 2013 Page 2 of 3 £535098
West Kirby Residential School invoice November 2013 Page 3 of 3 £535098
West Kirby Residential School invoice November 2013 Page 3 of 3 £535098

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