“Builders make billions as housing crisis escalates”

… Multi-million pound executive pay
The rewards enjoyed by bosses are significant.

As well as their £141m wages, Tony Pidgley and Rob Perrins of Berkeley are also sitting on shares in the company worth £440m.

They are not alone. Two executives at Persimmon, another of Britain’s biggest house builders, have shares worth at least £105m as part of their company incentive plan.

Our investigation – published days after the Chancellor Philip Hammond announced more than £5bn of government money would be spent increasing affordable homes and speeding up house building – also shows that Taylor Wimpey CEO Peter Redfern has been paid more than £24m in the past five years. …

… Planning documents kept secret
Previous in-depth reporting by the Bureau highlighted how the UK’s planning system allows developers to reduce their affordable homes targets while keeping their justifications secret.

Developers carry out financial viability assessments for their proposed developments, which often conclude that meeting the affordable housing targets set by local authorities would reduce their profits to a point that the scheme would be worth their while. However those assessments are kept confidential, with even councillors unable to see them.

In order to make sure schemes goes ahead, the local authorities typically reduce their targets or accept payment from the developer in lieu of the affordable homes. That money is supposed to be invested into social and community projects, or the council’s own affordable housing schemes. …

https://www.thebureauinvestigates.com/2016/11/27/uk-housing-crisis-house-prices

Save Our Hospital Services Devon Press Release

DEVON COUNTY COUNCIL UNANIMOUS VOTE TO ‘HALT’ STP

At its meeting on 8 December Devon County Council (DCC) voted unanimously in favour of two motions put by Councillor Brian Greenslade and Councillor Frank Biederman which, together, expressed the deep concern of the council about the impact of proposed cuts to Devon’s Health Services as indicated in the Sustainability and Transformation Plan (STP) for Devon; a claim for fairer funding of these services and the need for local MPs to lobby government to this end.

Cllr. Greenslade points out that Devon County Council is the largest local authority in the South West and, alongside Cllr. Biederman insisted that they will “speak up for the people of Devon who are terrified by the implications of this flawed process…”

The Save Our Hospital Services Devon (SOHS Devon) campaign has been instrumental in bringing this issue to the Council Chamber via lobbying at town and district level, the Health and Well-Being Scrutiny Committee, public meetings and the Red Line and Devon Sees Red demonstrations in Barnstaple and Exeter.

In his address to the DCC on behalf of SOHS Devon Phillip Wearne said that the ‘Success Regime’ and the STP process headed by the same person in Angela Pedder, and operating with the same staff should be considered as one and the same. The ‘Success Regime’/NEW Devon Health Trust is “riddled with conflicts of interest and inherently unfair, especially for North Devon. In sum what is going on is an inside job.” He then explained where these conflicts of interest exist and added “The SOHS Devon campaign is committed to preventing any cuts in our hospital services.”

Liz Wood from the SOHS Devon campaign also addressed the council and identified the threat to acute services at North Devon District Hospital (NDDH), saying “In June Ruth Carnall came to Barnstaple armed with her contradictory and contestable Case for Change document – the product of her own independent healthcare consultancy. . . she and her ‘Success Regime/STP colleagues have stressed one thing: there are no red lines around any hospital services in Barnstaple. . . nothing is ruled out, they warn in concert. That ‘nothing’ includes all our acute services – consultant led maternity, paediatrics, neonatology and stroke.”

The full texts of both the above speeches are available on request.

On 5 December Oxford City Council also rejected this process, noting that the former Head of NHS England’s Commissioning Policy Unit, Julia Simon, has denounced the STP process as ‘shameful’, ‘mad’, ‘ridiculous’ and the plans as ‘full of lies’.

Knowle relocation – the estate agent’s view?

The views below are those of an expert correspondent. Owl, needing only the branch of the nearest tree to call it home, is no expert and is happy to hear from others with different views

The build cost of the new building at Honiton must have increased: there is no way they will build it for less than £7 million.

But the big ‘economy with the truth’ is that relocation will be achieved for less than £10 million, because the costs of moving will be very high, not least for compensation to staff for having to travel further to work. Steve Pratten (the relocation consultant) alone is going to cost £1 million by the time the project ends and then there is all the officer time (never, ever costed by EDDC), and legal fees.

The real numbers, in my personal opinion (writes the correspondent) are likely to be:

Exmouth refurbishment:
£2 million

New Build at Honiton:
£11 million
(West Dorset’s new HQ was smaller three years ago and cost £10 million +)

Steve Pratten:
£1 million

Staff Compensation:
£1 million

Officer Time:
£2 million

Legal and other consultants:
£1 million

The move itself (physically relocating, plus things like new notepaper, equipment, etc):
£2 million

And, significantly, the immediate loss in asset value (the new building will only have a value of £2-3 million).

So subtract that figure from the asset value of Knowle (£7.5 million ):
loss of £5 million

Total: £25 million.

The improvements at Exmouth might give a modest boost to the value of the building, say £0.5 million, so a total cost of £24.5 million.

These figures are conservative. In truth, the ultimate cost is probably going to be higher. The ‘officer time’ figure of £2 million looks very low for example. It would not be at all surprising if the ultimate cost is of the order of £30 million.

The refurbishment of the modern buildings at Knowle was estimated at less than £2 million, which looks incredibly good value by comparison.

The refusal of the Pegasus application, together with the current upheaval over local government reorganisation in Devon, offer a clear opportunity to think again.

Cabinet on Wednesday might see the first signs of cracks appearing.

“Shock figures show Tory plans are ‘making social care worse’ “

The full extent of the crisis facing social care is revealed by an Observer investigation which demonstrates the government’s flagship policy to keep elderly people out of hospital is failing in most parts of the country.

The findings – amid claims from senior NHS figures that “we are going backwards in many places” – come as ministers face calls to provide an urgent injection of extra cash to local councils to avoid services buckling under increasing financial pressure.

The Tory chair of the Commons select committee on health, Sarah Wollaston, said ministers should act immediately to prevent more suffering for elderly people, their families and other patients.

She also demanded all-party talks on the future of the NHS and social care. “We are at a tipping point,” she said. “We are seeing indications of the great stresses in the system and these need addressing now.”

Underfunded and overstretched – the crisis in care for the elderly
The Observer’s investigation reveals that the landmark government scheme designed to relieve the strain on overcrowded hospitals – the Better Care Fund – is failing to deliver its aims of keeping older people healthy at home and so cutting “bedblocking”, despite £4bn a year being poured into it.

Theresa May and the health secretary, Jeremy Hunt, have repeatedly claimed that the fund, and a separate policy of allowing councils to raise more money for social care by increasing council tax, are jointly addressing the spiralling problems in social care.

Responses to freedom of information requests submitted to 151 local councils reveal that in England 58% of targets for improving care in people’s homes and local communities were missed.

In another blow to ministers, new figures from the King’s Fund think-tank show English councils will raise just a fraction of the sums required to plug gaps in their budgets by increasing council tax bills. …

https://www.theguardian.com/society/2016/dec/10/tory-plans-making-social-care-worse

Politics South West: pigs ears, economy with the truth and foxes

Click here

http://www.bbc.co.uk/iplayer/episode/b08401p5/sunday-politics-south-west-11122016

for more on the Bermuda … whoops … Golden Triangle LEP described by one MP as a “pig’s ear” … (with Sajid David denying saying something that it is shown he said)

Angela Peddar of the [Lack of] Success Regime saying that it has no plans to cut anything … and then talks about cutting services …

Bringing back fox-hunting (so important in this crisis-ridden world …

and more promises on rail lines and avoiding flooding.

Best get a stiff drink first … it isn’t pretty.

Those relocation numbers STILL don’t add up (bigly) EDDC!

25 March 2015 extraordinary Meeting regarding Relocation:

‘Councillor Moulding emphasised the cost savings that would be achieved and highlighted key figures:

• The Knowle Site offer price agreed is £7-8m • Exmouth Town Hall modernisation will cost in the region of £1m • New Offices at Honiton will cost in the region of £7m • The Council will secure relocation in total for under £10m’

So it’s a £669,000 increase, not £408,000.

A 69% increase in costs in less than two years, without a brick being laid!

EDDC progress: move from an old building – to an old building!

EDDC moves from Knowle because it is an old building (although most of it is modern and big enough to meet all their accommodation needs) and moves to Exmouth Town Hall – an old building – all of it old.

And the reason given why the costs are rising?

Exmouth Town Hall is … an old building.

Which begs questions:

A. Did EDDC expect costs to be higher than they estimated when making their calculations to move?

or

B. Did EDDC expect costs not to rise when they made their calculations to move?

and

which of these two scenarios is the worst one!

What goes around comes around …. in EDDC la-la land

One of the reasons given for increased costs at Exmouth Town Hall – finding asbestos in the building.

One reason given for moving from Knowle – you guessed it – asbestos in the building.

Yes, Minister!

The “Golden Triangle LEP”

Some suggestions already made for our newest LEP:

Dairy farming to cease forthwith and be replaced by commercial poppy growing – this will increase the value of agricultural land, slow housing development and be better for the environment.

Dartmouth to be twinned with the Mekong Delta, Exeter to be twinned with Bangkok, Plymouth with Chiang Rai.

All remaining NHS community hospitals to be turned into drug rehabilitation centres.

Who counts the pennies at EDDC?

£1.6 million (minimum) overspend on Queen’s Drive, Exmouth
£400,000 (minimum) underestimate on Exmouth Town Hall refurbishment
£300,000 (minimum) not collected in Section 106 payments

£2 million … and still a quarter of the financial year to go.

Hello, KPMG, hello …..

Extra £408,000 needed for Exmouth Town Hall refurbishment – estimate did not include things like rewiring and new boiler!

This report asks members to approve the refurbishment of Exmouth Town Hall before Gateway 7 is reached in relation to planning permission on the Knowle site. The request is for a budget of £1.669m, this is an increase of £0.408m for this part of the project but overall net costs are expected to still be within the overall relocation budget.

It is a members’ decision whether to decide to proceed and approve the expenditure of £1.669m on Exmouth Town Hall refurbishment for the operational reasons outlined in this report. This decision needs to be under the clear understanding of the financial risk involved; a worst case position of no capital receipt from the Knowle to offset capital costs and no certainty of the associated savings obtained from operating from a new building in Honiton.

The borrowing impact on the Council should no receipt be forthcoming at all would be a £1.669m loan requiring an annual payment of £69,000 over 40 years to fully cover off both the loan sum and interest.

Mitigation against this financial risk is that the Knowle site has been allocated in the Local Plan for housing thereby giving some certainty of a capital receipt, if not now but in the future. Refusal of planning permission for the Pegasus Life proposal will add delay to the project but the Knowle retains a continued Local Plan allocation and capital value as a brownfield site for residential development. On this basis a more reasonable assumption at this point would be the requirement of short-term financing until a receipt is forthcoming. On that basis assuming a 3 year period of short-term financing this would incur an annual cost of £18,000 a year being interest only, if alternatively internal funds were used this would result in a loss of interest equating to £14,000 a year. …

AND THESE ARE COSTS EDDC DID NOT FACTOR IN TO EXMOUTH REFURBISHMENT COSTS:

…  The previous figure was an estimated cost without full survey and confirmed contractor figures. The refined cost reflects the detailed building investigations, requirements of the planning authority and the actual price negotiated with the contractor.

The Town Hall is an old building combining different extensions over time. Costing the works on an existing building is less predictable than new build.

Expectations that some existing services could be retained have not been met and detailed surveys and investigations of the building have shown it to be in need of full services replacement alongside repair, redecoration and structural improvements.

Key additional cost elements are:

o Full rewiring
o Replacement of central heating and boiler system.
o Improved hot water provision
o Additional kitchen facilities on first floor
o Provision of mechanical ventilation
o Improvement of natural ventilation,
o Removal of asbestos and dealing with lead paint.
o Improved security provision.
o Better access within the building.
o Improved signage
o ETH will be refurbished to a high standard. It will be decorated and equipped in the same way as the new HQ. The reception areas in particular will have a similar look and range of facilities for our customers.

Click to access item-14-relocation-report.pdf

£3 billion to go to Saudi Arabia to build up UK defence presence

No doubt Swire, in his capacity as Chairman of the Conservative Middle East Council, is there with BoJo.

And that’s £3 billion which the NHS will never see.

Devolution for Dummies

Owl THINKS these are the current choices:

Heart of the South West LEP – except Exeter, East Devon and Exeter are refusing to play. Does not include an elected mayor at present.

Greater South West – proposed by Communities Minister Sajid David – which seems to stretch from Dorset in the east, Somerset to the north and Cornwall in the south – and any other bits left out of other Devolution deals around that area. Does include an elected mayor.

Greater Exeter Travel to Work Area – East Devon, Exeter, Mid-Devon and Teignbridge – as proposed at the secretive Greater Exeter Visioning Board. Silent about whether it includes an elected mayor.

All permutations include adding unelected business people and a single focus – economic growth.

No-one seems to have put a simple unitary Devon in the melting pot, or a unitary combination chosen from a Devon/Cornwall/Dorset pick-and-mix. Nor has anyone spelled out the constitutional basis for these changes.

But it’s probably only a matter of time!

Could it be more complicated? Hardly.
Will it get sorted so that it benefits anyone but big businesses? Answers on a postcard to Paul Diviani, Leader, East Devon District Council!

Torbay wants in to the “Golden Triangle” ( let’s hope it isn’t a Bermuda Triangle!)

“A ‘GOLDEN Triangle’ of local authorities could lead South Devon to a new and prosperous future with government investment running into hundreds of millions of pounds.

That’s the belief of Torbay Council ruling Conservative Group leader David Thomas who has confirmed that very preliminary talks have been held to change the way councils are run in South Devon and the county.

Under the new structure Torbay and Plymouth would unite and then invite Exeter to join the devolution party as a ‘real Trinity’ for the future.

But one politician reportedly against a new ‘super’ South Devon council is Torbay mayor Gordon Oliver who has decided to snub the talks. He is believed to be still firmly behind working with Devon County Council who, with other partners, have already submitted a devolution bid of their own.

Cllr Thomas revealed: “I had a phone call to ask if I would attend an informal meeting of the chief executives and leaders of Torbay, Plymouth and Exeter councils.

“The leader in Torbay is Mayor Oliver. I was asked as leader of the majority group because anything that moves forward will be a council decision.

“Once I was invited the mayor made it clear that that he did not wish to attend the meeting. He sent out an email saying he was not attending and that he did not want to deal with Exeter and Plymouth. He was only interested in a Devon unitary authority.”

“The deal that we would look at bidding for would be £1billion for the local economy and it would bring decision making into the South West.

“”This could be the opportunity for a Golden Triangle, a real trinity. I can only speak for Torbay. The only way this can work is if the two unitariies, Torbay and Plymouth, work together. Exeter can be asked to join shortly afterwards. Any other districts may be part and parcel of this.”

He said under the new potential deal, the councils will not change. The new authority would sit above. But he said part of the devolution deal is that they would have to have an elected leader, commissionaire or mayor.

Cllr Thomas said: “These are very early days, but the rules of the game as set out by the government minister is that if you want devolution powers you have to an elected leader. You have to have to have that if you want the Full Monty.”

He claimed some of the local authorities in the Devon/Somerset devolution deal do not want to have an elected mayor at the helm and he added: “My view is why would you not want to investigate the opportunities here?

“I cannot understand why the elected leader or any councillor would not want to investigate this potential route on the table. We all know the problems we have in Torbay including deprivation and declining budgets. This is an opportunity to resolve some of those issues.”

He said he had spoken to his group and they are ‘on board.’ He said he had also talked to opposition group leaders and, although they have yet to take it to their members, they have said personally the options should be explored.

http://www.torquayheraldexpress.co.uk/golden-triangle-could-lead-south-devon-to-new-future-worth-hundreds-of-millions-of-pounds/story-29971579-detail/story.html

So, “a route on the table” and he’s on board! Imagine if only the 3 councils ganged up – where would they have their HQ!

Devolution: more information on the Guy Fawkes-style plotting …

http://www.exeterexpressandecho.co.uk/plans-for-super-mayor-for-plymouth-and-exeter-discussed-at-meeting/story-29971551-detail/story.html

“Hinkley Point designers face fraud inquiry”

The company that designed Britain’s proposed £18 billion nuclear plant is facing a criminal investigation on suspicion of aggravated fraud, forgery and endangering life.

Prosecutors in Paris have opened an inquiry into allegations that a factory owned by Areva, the French nuclear group, has been falsifying safety tests for decades.

The factory has already made one key component for the reactors planned at Hinkley Point in Somerset but this was scrapped amid safety fears and a replacement was ordered from Japan. The Hinkley Point reactors were designed by Areva and are being built by Électricité de France (EDF), the state-owned company.

EDF is poised to take over the factory at the centre of the inquiry, which may be asked to make further components for the Somerset reactors, a Paris source claimed. The Hinkley Point project, in which EDF has a two-thirds stake and China General Nuclear Power Group the remaining third, is designed to produce seven per cent of Britain’s electricity.

Critics say that the criminal investigation raises searching questions about the trustworthiness of the French engineers behind the scheme.

“From a British background, it is inconceivable that nuclear safety documents should be falsified,” said Paul Dorfman, honorary senior research fellow at University College London’s Energy Institute.

“How can one be assured of the quality of key nuclear materials given the fact that the French have been falsifying documents and installing faulty equipment that is key to nuclear safety?”

The investigation comes after the discovery of a flaw in a 116-tonne reactor pressure vessel installed in a project at Flamanville in Normandy.

The French Nuclear Safety Authority has ordered tests to determine whether the component could crack and cause a nuclear accident. The watchdog says that it will decide next year whether to allow the plant to open. Prosecutors were told of the flaw, which involves an unexpectedly high level of carbon in the steel.

Prosecutors in Paris said that a criminal investigation had been launched into claims that the Areva factory at Le Creusot in Burgundy, which made the component, deliberately faked the safety tests.

The factory made a reactor vessel head of the same kind for Hinkley Point. This has had to be cut up and subjected to checks to determine the extent of the risks caused by the excess carbon.

EDF said it was confident that its Normandy plant would get the green light. After discovering the problem at Flamanville, an inquiry was launched at Le Creusot factory, which revealed evidence that safety tests had been falsified over the past 60 years. The investigation initially concerned 400 files but was subsequently extended to 9,000.

France’s nuclear watchdog said that 87 “irregularities” had been detected so far, either in nuclear components or in the casing used for their transportation.

Inspectors said that documents stating that the components were safe were based on the wrong figures.

Prosecutors believe that the irregularities might have resulted from a deliberate attempt to cover up a safety risk. About 20 of the irregularities involved components intended to be used in the new reactor in Flamanville. The rest were proposed for reactors already operating in France. A further inspection by the nuclear watchdog found that components made in Japan had the same problem of excess carbon.

Pierre-Franck Chevet, chairman of the European Nuclear Safety Regulators Group, said: “We are facing a serious anomaly.”

EDF was ordered to undertake emergency tests on 18 of its 58 French reactors to determine whether they were safe. All but four have now been given permission to re-start.

A spokeswoman for Areva said that the company would co-operate fully with the investigation.

https://www.thetimes.co.uk/article/hinkley-point-designers-face-fraud-inquiry-p5fs686wm

And now ANOTHER potential devolution deal to add to the mix! This one with government approval?


Sajid Javid Speaking on the Exeter University campus in October, said:

“Some in Cornwall see their county as distinct from the rest of the region, a special case that should be handled separately from everywhere east of the Tamar.

Some in Poole and Bournemouth associate themselves more closely with Southampton, Portsmouth and the M3 corridor than with rural Dorset.
And then there the traditional, often historic, rivalries and tensions that you find in any region.

One county looking down on another.

A smaller one mistrusting a larger neighbour.

Urban areas versus rural ones.

And so on.

If we’re going to make a success of the South West, that whole attitude has to change.

And that’s why today’s conference is so important.

It’s about recognising that this region can achieve MORE TOGETHER THAN APART.

About long-term strategic thinking and planning that benefits everyone – NOT PROMOTING ONE AREA AT THE EXPENSE OF ANOTHER.”

He was speaking at the creation of the “South West Growth charter Group” (spearheaded by leadership of the Pennon Group, owners of the utility company South West Water). Encouraged, this group pulled together a charter for the South West covering all the four counties in a matter of days and sent it to the Secretary of State for Communities and Local Government (Javid) ahead of the autumn statement.

This strongly suggest that neither the Exeter and Plymouth nor the Heart of the South West bids might be going anywhere (one is too parochial, the other hasn’t got a mayor). $64,000 question is who will get how much from the £191 million allocated to South West LEP in the autumn statement?

https://www.gov.uk/government/speeches/a-south-west-that-works-for-everybody

PS Can anyone explain to Owl why the head of the local monopoly water company with its captive customers and charging astronomic bills is the right choice to lead a regional growth plan?

More on those devolution shennanigans!

Robert Vint, South Hams Lib Dem, DCC:

“We’re slowly piecing this together… Apparently Exeter City, Plymouth City & East Devon Council don’t want to be part of the HOTSW scheme and want to set up their own unitary authority – presumably with their own unitary Mayor. South Hams have apparently just been invited to join but West Devon have not. John Tucker says that SHDC [South Hams District Council] have not been involved in these discussions but that Torbay City and Teignbridge Council have. It seems odd that all the South Devon councils except South Hams & West Devon knew about this. There’s apparently a meeting of chairs of councils today where this will all come up. All very cloak & dagger!!”

STOP PRESS: have Exeter and Plymouth just killed off the Devon and Somerset LEP?

BBC Spotlight just now (iPlayer soon and probably at 6 pm)

Martyn Oates reported many councillors angry that they had no idea of the “southern Devon” supermayor bid.

AND, he said, there was an attempt to get unanimous approval of a bid to retain the current Devon and Somerset LEP which Plymouth and Exeter refused to support.

Spotlight: BBC Spotlight today

Exeter/Plymouth/Torbay super- mayor? Meeting in Cullompton today

“Council leaders from across south Devon are understood to be discussing plans for a “super-mayor” at a meeting today.

Leaders from Plymouth, Exeter and Torbay councils are meeting in Cullompton to discuss a bid for devolution.

It is thought that a central part of the proposal is to create a single authority stretching from Exeter to Plymouth, and including Torbay.

The authority would be run by an elected mayor.

At the South West Growth Summit in Exeter in October Sajid Javid, the Communities Secretary, told local politicians that they could forget any meaningful devolution unless they embraced the idea of an elected mayor for the whole region.

In private tweets yesterday Peter Doyle, head of external affairs for Devon County Council, wrote: “The very odd Southern Devon unitary plan will make tomorrow’s Heart of SW devolution meeting interesting to say the least.

“Hard to see any sense in breaking Devon into two unitary councils. Huge reorganisation costs, duplicates county council services, zero savings.”

http://www.plymouthherald.co.uk/plymouth-could-get-an-elected-super-mayor/story-29970966-detail/story.html#UJzDE8H1jAitmWS5.99

TWO unitary authorities? What’s left apart from North Devon? Does “Exeter” include East Devon or not? And where does the LEP fit in, if at all?

Of course, we, the council tax payers, will be the last to know!

And bet your bottom dollar the “same old” (vested interest) politicians and (vested interest) business people, same troughs, same snouts.