Tangled LEP webs …

Recent comment on EDW:

“Please note that the man who claims to have “initiated the East Devon Business Forum” is on the HotSWLEP panel, together with his CEO, and that the former joined the LEP when the East Devon Business Forum disbanded following the exposure and [subsequent resignation of] fellow EDBF member Cllr G Brown in 2013.”

[And also note another member of the LEP is former EDDC Regeneration Supremo Karim Hassan, now CEO of Exeter City Council. Diviani and Hassan will be in charge of all the extra housing that the LEP says the two counties need – nearly 180,000 of them].

What an interesting Constitution our Local Enterprise Partnership has!

The full application for our LEP to be a Community Interest Company (!) was submitted on 6 February 2014, so our councillors and business people were working on this for a full 18 months before letting anyone know what they were doing.

The full document is here:

application-pdf

A few things to note:

There are a lot of blank spaces in the application!

It is a 53 page document and the Constitution commences on page 22.

Community Interest Companies are supposed to “lock” their assets so that, if the company is disbanded, they are firstly offered back to the community that is supposed to be interested. However:

3.1 says they must be transferred at full consideration but if article 3.3 is satisfied this will not apply. Article 3.3 says that assets can be disposed of at less than full consideration!

The “Object” of the company is that the Company is to “carry on activities which benefit the community and in particular (without limitation) which contribute to the economic growth and increased prosperity of Devon, Somerset, Plymouth and Torbay with a view in particular (without limitation) to creating better and more sustainable jobs.”

Article 9 basically says that Directors can delegate anything to anyone and can change the terms of delegation at any time.

Article 18 says that if Directors have a conflict of interest they should absent themselves from those parts of the meeting in which they occur. HOWEVER:

Other directors decide whether that particular director has a conflict of interest and

Article 19 says that even if a director seems to have a conflict of interest directors can allow that the Director CAN take part and vote in the matter on which they have a conflict of interest – it is up to the Directors to decide about that too!

Article 32: ANYONE CAN APPLY TO BECOME A “STAKEHOLDER” BUT DIRECTORS CAN REMOVE ANY SUCH ENTITY IF IT IS “IN THE BEST INTERESTS OF THE COMPANY”.

Article 52: Minutes must be taken of all proceedings, etc and they must be kept for at least 10 years.

Our Local Enterprise Partnership members declarations of interest

And very interesting they are too!

http://www.heartofswlep.co.uk/board-members%E2%80%99-conflicts-interest

“Iain Duncan Smith: the latest MP to pretend council cuts are not his fault”

“If you’re unaware of the extraordinary budgetary challenges faced by local authorities, it must mean that you live on another planet – or you’re Iain Duncan Smith. Despite being firmly ensconced at the heart of an austerity-obsessed government, the secretary of state for work and pensions appears blissfully unaware of the way cuts are implemented by councils in and around his Chingford and Woodford Green constituency. Much like his boss David Cameron, when he expressed horror in a letter to his local council about the level of cuts it was making.

Last week, Duncan Smith came in for fierce criticism after he accused Enfield council of failing to adequately manage funding cuts when it faced a backlash to plans to cut youth services. In what Doug Taylor, the leader of Enfield council, describes as an incredibly ill-informed and inappropriate intervention, the minister told the Enfield Independent:

If you look at the successful local authorities, they are the people who have worked out what the vitally important things are that they do, and have managed to get through this process without savaging the things that really matter. My only advice to local council[s] is that if you get the balance right, you should be able to manage this in a way that is not headline news – doing it with better efficiency. It is like any company, you always face the issue of whether what you spend outweighs what you earn. Headline cuts are not the way to go.”

That such a senior and high profile member of the cabinet – with no official brief for local government – has ostensibly suggested that councils could avoid gruelling financial situations if only they were better at managing budgets, has understandably angered local politicians.

In the case of Enfield, which has had to make savings of £118m since 2010 – 49% in real terms according to a council spokeswoman – Duncan Smith’s proclamations are an affront.

Taylor insists that Enfield, like councils all over the country, has gone to great lengths to increase efficiency before even contemplating cuts to frontline services. He says the annual funding the council receives from central government has been cut by an average of £700 for every household in the borough in the past five years, and that efficiencies are no longer enough. “The £56m we need to find [as a result of the last spending review] is more than we currently spend annually on cleaning the streets, collecting the bins and lighting our streets,” he says.

Local MP Joan Ryan is particularly scathing of the secretary of state’s statement. “Iain Duncan Smith knows nothing about Enfield – that much is clear,” she says. “IDS should get his facts right, given his local authority – Waltham Forest – has also made substantial cuts. I recommend less sermonising and a better understanding of his own policies.”

Enfield’s population is rising, like many other parts of London, pushing up demand for local services and making the financial juggling act of delivering more with fewer resources even harder. Duncan Smith’s ill-informed pontifications, Taylor says, are an exercise in power without responsibility; it will be interesting to see if the MP takes Taylor up on an open invitation to visit the council and see for himself what is actually going on.

It’s bad enough that Duncan Smith is using his position to hammer councils on efficiency when he hasn’t discussed the facts with them, but let’s also not forget the impact of welfare reform. Benefit policy upheavals, for which he was architect-in-chief, have contributed immensely to the increased demand for support from local authorities just when they’re least able to provide it.

Oh, and don’t forget either that when Cameron needed to avert a backbench rebellion and magically found a £300m pot of cash to chuck at Tory councils, there were no assertions that they should improve their budget management skills instead.

Ever since local government cuts began rolling out the government has shrewdly made it look like it’s somehow nothing to do with Westminster. Duncan Smith’s latest jibe is yet another illustration of how conveniently misleading this strategy continues to be.”