Privatisation – another big company seeks rescue – the one building EDDC HQ!

Owl says: Has the message still not got through? Privatise, give your directors MASSIVE salaries and bonuses, look after your shareholders. Then, when it all goes belly-up either (a) get the government (ie us) to bail you out or (b) let your government clients (ie us) go to the wall!

“Interserve: Major government contractor ‘seeks second rescue deal’

One of the UK’s largest providers of public services is seeking a rescue deal as it struggles with £500m of debt, according to the Financial Times.
Interserve, which works in prisons, schools, hospitals and on the roads, said it might look for new investment or sell off part of the business.
Workers at the Foreign Office and the NHS are among Interserve’s tens of thousands of UK employees.

The government said it supported the company’s long-term recovery plan.
The Financial Times reported that the company was looking for a deal to refinance its debt which would mean lenders taking a significant loss while public shareholders would be “virtually wiped out”.

Its share price dropped to a 30-year low last month.

Despite lucrative contracts in the Middle East and its wide range of work in the UK, the company has continued to lose money since March, when it agreed an earlier rescue deal.

Its troubles have been blamed on cancellations and delays in its construction contracts as well as struggling waste-to-energy projects in Derby and Glasgow.

Interserve claims its prospects are improving, and says it will increase profits this year.

What does Interserve do?

From its origins in dredging and construction, the company has diversified into wide range of services, such as health care and catering, for clients in government and industry.

At King George Hospital in east London, for instance, Interserve has a £35 million contract for for cleaning, security, meals, waste management and maintenance.

Its infrastructure projects include improving the M5 Junction 6 near Bristol, refurbishing the Rotherham Interchange bus station in Yorkshire, and upgrading sewers and water pipes for Northumbrian Water.

But Interserve is also the largest provider of probation services in England and Wales, supervising about 40,000 “medium-low risk offenders” for the Ministry of Justice.

In a statement, Interserve said: “The fundamentals of the business are strong and the board is focused on ensuring Interserve has the right financial structure to support its future success.”

The company said its options included bringing “new capital into the business and progressing the disposal of non-core businesses “.

Interserve’s difficulties follow the collapse of Carillion in January 2018, which put thousands of jobs at risk and cost taxpayers £148m.

Government reassures over Interserve

Following that, the government launched a pilot of “living wills” for contractors, so that critical services can be taken over in the event of a crisis. Interserve is one of five suppliers taking part.

A Cabinet Office spokesperson said: “We monitor the financial health of all of our strategic suppliers, including Interserve, and have regular discussions with the company’s management. The company successfully raised new debt facilities earlier this year, and we fully support them in their long term recovery plan.”

https://www.bbc.co.uk/news/uk-46494465

“The fight against fast food continues …” but … but …

Cranbrook Town Council wants to block a kebab van from selling food in The town:
https://www.midweekherald.co.uk/news/the-fight-against-fast-food-continues-cranbrook-councillors-object-to-kebab-van-s-seven-days-a-week-trading-bid-1-5807445

Cranbrook has only a pub for eating out, which sells a mix of what is crudely called “healthy food” and junk food:
https://www.cranberry-farm.co.uk/our-food/?menu=513118

Cranbrook is installing outdoor barbecues at its “country park” where no doubt junk food will be cooked:
https://www.midweekherald.co.uk/news/plans-for-outdoor-barbecues-to-be-installed-in-cranbrook-before-easter-2019-but-council-is-looking-to-share-the-cost-1-5810127

Is it fair to try to stop the van? A poll says 58% want it.

EDDC liberalised street trading rules to encourage more street trading.

Confusing!

Ottery Community Hospital – a campaigner speaks on council in-fighting

Text of address to Ottery Town Council by Philip Algar, a long-term campaigner for the Ottery hospital, including its in-patient beds:

“OSMTC 29th NOVEMBER 2018

As an interested member of the public, I have attended almost all the town council meetings over the last few years. During that time, I have seen the councillors confront many issues, some trivial and some serious. However, I have not seen a collective, note the word “collective”, and timely public effort by the council as a whole to support those of us who have been campaigning to save the Ottery hospital. I can think of nothing that is more important to the local people than having access to a well-located modern greatly-valued hospital and this, surely, justifies your collective support. Why has such support been missing?

Whenever the subject of the hospital’s future has been included on the town council agenda, the main speaker, often the only speaker, has been one councillor, who, quite correctly, has said that she does not speak for the council but for a group of which she is a leading member.

As recently as last August, I asked the council to adopt an official and supportive role but nothing happened and, as far as I know, my suggestion that the hospital should become a community asset, which was rejected by EDDC, was not challenged by this council, even although such status has, I am told, been granted to other hospitals. I had suggested in advance that it might be wise to devise a response in anticipation of a negative decision.
All this is why I shall no longer be attending your meetings which will be good news for many of you. Furthermore, the well-intentioned and hard-working unofficial groups have failed to make much progress with the official bodies and, apparently, admit this. That said, it would be helpful if they were more communicative with the public.

Given this lamentable situation, it was hardly surprising that three councillors, backed by a county councillor, suggested setting up a semi-official working group to solve the crisis. Three councillors voted in favour and six, according to the draft minutes of the meeting, abstained.
I was astonished to learn that, allegedly, some councillors construed this as a defeat for the trio. That is breathtaking and worthy of Private Eye. If this is true, it also exposes a level of ignorance that calls into question the competence of those involved. If it is not true, I withdraw this comment immediately.

Now, despite an objective explanation from Dr. Margaret Hall, explaining that, effectively, NHS groups, apparently, will only discuss matters with official groups or those under the aegis of the council, you still chose to organise this meeting, at an unusual time when so many residents are at work. I note the comments that this meeting was planned as councillors were attending a finance meeting. The claim by the abstainers, that they did not have sufficient information, has already been undermined by Dr. Hall’s contribution so why have another meeting?

This, presumably, is an effort to overturn the initial decision on the creation of a working group. The agenda also raises the possibility of supporting a decision that has already been agreed after a vote of three to nil, and which has now been explained by Dr. Hall. I find the possibility that organising a meeting to consider reversing the democratically-taken decision to be a truly ludicrous waste of time and totally unnecessary.
Those who were penalised by the decision to remove inpatient beds and now face the prospect that the hospital may not even become a hub, deserve much more from their councillors.”

End: 29.11.18

Swire and Rudd – a marriage made in …

Multiple sightings of our esteemed MP lurking in the background – almost seeming to try to duck out of shot – of early TV news items featuring Amber Rudd spouting today’s riff on Brexit.

Swire has already been described as “a state sanctioned dissident” and Rudd is known to be quite prepared to do May’s dirty work:
https://eastdevonwatch.org/2018/12/07/swire-state-sanctioned-dissident/

So, are they dirty working today WITH May or AGAINST her?

Be careful Mrs May – keeping your friends close but your enemies even closer has its failings. And Owl thinks he has never forgiven you for ousting him from his “job” at the Foreign Office, cosying up to the sheiks of the Saudi Arabian peninsula and his favourite islands, The Maldives. Which he still does but in the very much less prestigious ‘job” of Chairman of the Conservative Middle East Council.

“Laybys in Cranbrook are being used by lorry drivers to ‘entertain’ women”

Owl LOVES the comment from the DCC officer: ““I know this is not a popular thing to suggest, but the people who bought the houses bought them in full knowledge of the layby” but Owl thinks they expected the LORRIES to be laid by, not ladies being laid by lorry drivers!

“Two laybys that lorry drivers are using to ‘entertain’ female companions will be closed.

The laybys, right in the middle of Cranbrook, are also being used a public toilet, for boy racers to congregate and play loud music and swear, and the proximity to houses mean that lorry drivers can see into homes from their cabs.

Unanimous agreement was given by councillors to close the laybys and for Devon County Council’s Highways officers to come up with a solution.

Cllr Ray Bloxham, who brought the proposal to Friday’s East Devon Highways and Traffic Orders Committee, said that the laybys used to be in a rural location but now are right in the middle of Cranbrook, and homes are now located immediately adjacent to the laybys.

He said: “The two laybys in question are now principally used by HGVs for overnight parking as a free car park. This results in considerable disturbance to adjacent households and there have been a series of complaints about noise disturbance especially overnight from refrigerated units and from engines being started and left running during the early hours. There have been ancillary complaints about anti-social behaviour by drivers using the hedgerow as a toilet and other unpleasant behaviours.

“The complaints by local residents have been referred to both Environmental Health at East Devon District Council and to Highways, and the only solution that was put forward and supported by highways department was to close the laybys.”

He added that there was organised lorry parking less than a mile away in Clyst Honiton, but there is a fee for it, so they prefer to park for free.

A resident of Roman Way, which is just 15m away over a hedge from the layby, said that they are facing anti-social behaviour ‘night and day’.

She said: “There are privacy issues as from their cabs, they can see into our residences, while the anti-social behaviour is disturbing out sleep. One lorry driver ‘entertained’ a female companion in his cab overnight and she left at 5.30am in the morning – this is the kind of behaviour we want to end.

“Some of the drivers urinate and use the hedge as a toilet, and they leave litter there which attracts vermin, and at night you get boy racers there and they play music and swear loudly.

“It is a real nuisance and causes health risks to us and our children. It doesn’t support the healthy town concept and for us as residents, the issues are very real. If you lived in our home and had this every day and night, you would realise the issues that we are facing at the moment.”

Mike Jones, Senior Devon County Council Traffic Officer, said that the laybys were on the road so lorry drivers do have a place to stop. He added that the road is a diversion route for the A30 and the road does need marshalling facilities and laybys are a useful thing to have, before saying: “I know this is not a popular thing to suggest, but the people who bought the houses bought them in full knowledge of the layby.”

But Cllr Richard Scott said that was an inappropriate argument to make, as it would be the same as saying if you bought a house next to a field, then it could never be built on. He said that if that argument was used, then Cranbrook itself would never have been built.

Cllr Phil Twiss said that he fully supported the laybys being closed to vehicles, but said that as a cyclist who used the road, those laybys are a handy little refuge to stop and have a drink or check tyres. He said: “I agree that we should close them, but officers need to go away and come up with a practical solution.”

The East Devon HATOC unanimously agreed that the two laybys, located on opposite sides of the highway alongside the B3174 at Cranbrook, approximately 100m west of Parsons Lane, be closed to vehicular use, either by the introduction of a Traffic Regulation Order, or a different solution that the highways department could identify which meant moving the kerb line.”

https://www.devonlive.com/news/devon-news/laybys-cranbrook-being-used-lorry-2303961

“Developers Have Used A Legal Loophole To Dodge Building 10,000 Affordable Homes”

“Developers have dodged providing more than 10,000 affordable homes due to the government’s failure to close a loophole in the law, HuffPost UK can reveal.

Using ‘permitted development rights’, builders have sidestepped their duty to provide affordable homes when they convert non-residential buildings like office blocks.

The rules were designed to speed up the planning process, as they allow developers to transform a property without having to apply for town halls’ planning permission – something which could see council chiefs demand social housing as part of planning conditions.

Housing charity Shelter handed an analysis to HuffPost which shows that 10,340 affordable homes have been lost over the last three years in England as a result.

Polly Neate, chief executive, said: “With hundreds of thousands of people homeless today, it’s obvious that we need as many social homes as we can get. But despite this, the government is now considering new plans that could supercharge a social housing get out clause for developers.

“Developers shouldn’t have a license to dodge social housing when so many are without a home they can afford. Instead of creating a social housing black hole, the government should halt these plans and bring down the cost of land to build the social homes we need.”

The government says the rules simplify the planning process, but for every 10 homes built using the conversion rules, three affordable homes have been lost.

As the housing crisis deepens, ministers are now considering a new plan which could allow developers to further exploit the rules.

Using the same legal mechanism, developers may be able to demolish and replace commercial buildings.

Labour’s shadow housing secretary, John Healey said the government must act.

“We can’t make housing more affordable if we don’t build more affordable homes, but Conservative ministers are letting developers cash in without making any contribution to the community,” he said.

We can’t make housing more affordable if we don’t build more affordable homes Labour shadow housing minister, John Healey
“These changes have given developers a free hand to dodge their duty to build homes that are affordable to local people.”

A spokeswoman for the Ministry of Housing, Communities and Local Government underlined that more than 32,000 homes had been provided using permitted development rights.

“We’re committed to speeding up the planning system to help deliver the homes the country needs,” she said.

“By introducing additional permitted development rules we’re providing flexibility, reducing bureaucracy and making the most effective use of existing buildings.

“Our £9bn affordable homes programme is set to deliver 250,000 affordable homes by March 2022 and we’re scrapping councils’ borrowing caps, setting them free to build a new generation of council housing.”

https://www.huffingtonpost.co.uk/entry/exclusive-legal-loophole-let-developers-dodge-building-10000-affordable-homes_uk_5c0a5b6ee4b0de79357bc719

“Motability firm boss quits after news of £2.2m bonus”

Owl says: Bet May and her cronies HATE the National Audit Office!

“The boss of the business that leases cars to people with disabilities on behalf of the Motability charity is stepping down after it emerged he is set to receive a £2.2m bonus on top of his seven-figure salary.

Mike Betts, the chief executive of Motability Operations, came under fire earlier this year after MPs called his annual £1.7m pay package “totally unacceptable”.

A report by the government spending watchdog, the National Audit Office (NAO), published on Friday says as well as his “generous” remuneration, Betts is in line for a previously undisclosed performance bonus worth about £2.2m.

Following the report, Motability Operations announced that Betts would stand down from his position by May 2020, while the group’s chairman, Neil Johnson, would retire in April 2019.

In a statement, Motability Operations said: “After 16 years in the business, Motability Operations chief executive Mike Betts and the board of Motability Operations Group plc have agreed that, following the implementation of actions agreed as an outcome of the NAO review, and working to help the new chairman settle in, a suitable successor will be found, and Mike will step down from the board, no later than May 2020.

“The board is clear that recommendations made by the NAO will benefit from Mr Betts’ experience and skills to see them through.”

The Motability scheme enables disabled people to lease adapted cars using their enhanced mobility disability benefits – either disability living allowance or its successor, the personal independence payment. It currently helps about 614,000 people, many of whom would otherwise struggle to afford a vehicle.

The NAO is critical of the performance plan put in place for Betts and his fellow directors in 2008, saying that the targets meant to incentivise “excellent performance” were set at levels below what the company was achieving when the scheme was introduced.

The targets were “easily exceeded” and in the first seven years of the plan, five executive directors received “generous” remuneration of £15.3m in total, a near fourfold increase for what the NAO suggests was unexceptional performance. …”

https://www.theguardian.com/society/2018/dec/07/motability-firm-boss-to-get-22m-bonus-on-top-of-17m-salary

Swire: “state-sanctioned dissident”!

Owl loves the description of Swire!

“The plain fact is that the Brexiteers and the DUP are unbiddable, unshakeable and unpersuadeable. The usual tricks of last minute concessions just aren’t working. Last night was a case in point, as the new amendment to give Stormont and MPs a say over the customs ‘backstop’ was tabled by state-sanctioned dissidents Hugo Swire, Richard Graham and Bob Neill. …”

Source: WUgh Zone, Huffington Post

Chaos mounts on best way to save Ottery hospital – together or apart

Owl says: what a dreadful thing to make this issue an area for political point-scoring and petty feuds!

“Fighting for the future of Ottery Hospital should be ‘top priority’ says residents as they called for more support and transparency from town councillors.

The council chamber was filled to capacity for an extraordinary meeting re-examining a decision by the town council to support or rescind a motion to set up a hospital working group.

The proposal was passed at the start of the month, with many councillors abstaining as they said they did not have enough information.

Residents speaking at the meeting last Thursday said they felt there was lack of support from the council and were baffled to revisit the decision due to the weight and transparency a working group could show.

Stewart Lucas told members the council contributed hugely to the community but needed to listen to concerns as the town’s population continued to grow.

He said: “I for one believe the protection and the support of our local community hospital is an issue that should be right at the very top of the priorities of the council, and I feel the people of this town deserve to know that is a priority and that their feelings and opinions are valued and taken into consideration and that there is full transparency.”

Last week, health ministers gave firm reassurances the hospital has 
a ‘sustainable future’ but resident Ian Dowler said there needed 
to be more than a ‘glimmer of hope’.

Mr Dowler said: “Ottery does need to retain, not just the hospital services that it has at the moment but it needs to expand and utilise the space that’s there.

“With people living longer, Coleridge (Medical Centre) is bursting at the seams. Surely common sense would dictate that an overspill surgery be created at the hospital among other health departments, which would take some of the pressure off the RD&E?

“We need to take affirmative and positive action and no longer rely or applaud these sad and pathetic reasonings that all shall be well. It’s not acceptable.”

Councillors voted to defer making a decision until February to allow organisations involved in saving the hospital to meet and gather information.

Cllr Glyn Dobson said: “We all want to save the hospital, perhaps we want to do it in different ways. The health and care forum is doing a good job, there are five councillors on there and the results have come out this week in the Houses of Parliament that Ottery St Mary Hospital has a good chance of staying open.”

https://www.sidmouthherald.co.uk/news/calls-to-make-ottery-hospital-top-priority-following-debate-for-need-for-working-group-1-5808858

EDDC Independents call for action on poverty

Owl says: prediction – watch all these motions get watered down or struck out by block+voting Tories!

“Pressure to provide more help to struggling families, affected by benefit changes and low wages, is mounting on council bosses.

A motion calling for action will be put forward to East Devon District Council (EDDC) at a meeting on Wednesday (December 12).

The move looks to bring two reports before the authority, from the UK Equalities and Human Rights Commission and the UN Special Rapporteur, which put a spotlight on the impact of benefits changes and spending cuts on people in the UK.

The motion has been proposed by Councillor Cathy Gardner, of East Devon Alliance.

She said EDDC was due to receive a report on the potential impact on residents in East Devon and the need for further support, helping those affected by the roll-out of Universal Credit (UC) and supporting homelessness prevention and food banks.

Cllr Gardner added: “Residents in East Devon are not immune from these effects and in fact the rollout of Universal Credit is already having an effect.

“We have seen two homeless people die since 2015, both in Sidmouth.

“An increasing number of people, some with children are relying on foodbanks in all our towns, including Sidmouth, Honiton, Axminster, Seaton Ottery and Exmouth.”

The news comes in the same week that organisers of the Sid Valley Food Bank said that more people were needing help every week. And the numbers of people needing help were higher than they had ever been.

Co-ordinator Andie Milne said the top five reasons were:

• Delays in benefit changing transferring to UC, which could be up to 5 weeks.
• Repayment of loan provided in the case of delayed UC payment.
• Low wages and difficulties paying private rent over the housing benefit cap.
• Zero hour contracts – reduction in hours/sickness.
• Low wage unable to have contingency funds for unexpected expenditure – very noticeable with families needing to but school uniform, coping with school holidays, car repairs, winter bills and household repairs.

Cllr Garnder said: “I’m calling for the council to review whether more support is needed by people in East Devon and whether it can be provided.

“If the council does not have sufficient resources, then we must call on Government to review funding and make changes to Universal Credit. EDDC have statutory obligations, especially for housing, and it’s likely that increased demand will not be met.

“There is an urgent need to provide more social housing as well as support families who are at risk of homelessness.”

Cllr Gardner said there currently were five verified rough sleepers in East Devon – including the gentleman on Sidmouth seafront.

She added there were 27 households in temporary accommodation via EDDC – made up of 16 singles and 11 families, eight single people and two families in supported accommodation in Honiton, eight singles and two families in B and B accommodation, one family in a private sector lease property and six families in the council’s own housing stock that is being used as temporary accommodation.

Cllr Gardner said EDDC was required to help families and individuals in need of housing and was doing so, but Government cuts would likely mean it would not able to provide all the support it does or would want to in the coming years.

An EDDC spokesperson said: “This is one of three motions that are on the council agenda and officers of the council will take any necessary action arising from the council’s consideration of the motions and the decisions that are taken.”

https://www.sidmouthherald.co.uk/news/calls-for-help-for-struggling-families-1-5809034

NHS: Ministers want NHS head to promise he can run the service with unicorns

Owl says: Actually the government just wants him to lie for their next manifesto – and then, when it all comes tumbling down, they will then probably fire him – for lying.

“The head of the NHS and the government are at loggerheads over how much the health service can be improved for the £20.5bn extra Theresa May has pledged to give it, the Guardian can reveal.

Simon Stevens, the chief executive of NHS England, has been having major disagreements behind the scenes in recent weeks with Downing Street, the Treasury and Department of Health and Social Care about how much the forthcoming NHS long-term plan can promise to boost care.

“Tension” and “difficulties” have emerged during detailed horsetrading between the two sides amid sharp differences of opinion over the extent of the document’s ambitions, well-placed NHS and Whitehall sources have told the Guardian.

Negotiations have left ministers “fed up” and “deeply irritated” that Stevens is refusing to include explicit guarantees they believe will reassure voters that the service will improve dramatically over the next five years thanks to the extra money.

The plan, which will set out how the extra money will be spent, had been due to come out earlier this week but was delayed and is likely to finally appear in the week after next, subject to events at Westminster and further discussions between Stevens and ministers about its contents.

Ministers have told NHS England the plan should include specific annual improvements it will promise to make every year between 2019-20 and 2023-24 in its most challenging areas.

They want milestones written into it spelling out how close in percentage terms the NHS will get every year to once again meeting key waiting time targets covering A&E care, cancer treatment and planned operations, and also by how much the service’s dire finances will be turned round.

However, Stevens has left ministers frustrated by telling them privately that their ambitions are not realistic. Allies say he believes the £20.5bn more by 2023-24 is not enough for hospitals to get waiting times back on track after years of struggling to meet them and simultaneously honour headline-grabbing promises May and Philip Hammond have made recently, ahead of the plan being published, to expand and improve cancer and mental health care. They also want the money to pay for care to be transformed, with a major expansion of out-of-hospital services.

NHS England set up 14 different “workstreams” in the summer to draw up detailed proposals for how key areas of care needed to change to improve the nation’s health and keep the NHS sustainable, given the pressures of the ageing and growing population.

Stevens’s realism about the limits of the plan’s ambition has been reinforced by that process identifying improvements that would between them cost £80bn a year extra, four times the £20.5bn May has pledged. That has forced him to order a drastic culling of those proposals that are too costly to include in the plan.

Stevens has also warned them that the NHS’s chronic lack of staff – it is short of 103,000 doctors, nurses and other personnel – will also make it hard to drive the measurable progress they are seeking. Gaping holes in the NHS workforce are “dreadful and getting worse”, one senior figure said.

“Simon wants one thing and the politicians want another. The Treasury want to pin him to the floor over the action he will take to get all the waiting time targets back on track over the next few years, and he is resisting that. He wants flexibility,” said one source close to the discussions.

The Treasury is particularly exasperated by Stevens’s stance. But allies of the NHS chief say that he does not want to have his hands tied, sign up to timescales for progress that are likely to prove impossible to meet and to open himself up to criticism in the future for not delivering them.

One ally said: “The Treasury are the ones who are especially looking for high-profile and concrete improvements in care that the government can sell to the public in return for the £20bn. There is a lot of anxiety [among NHS leaders] because everyone knows the extra money is barely enough to maintain current standards, let alone transform services.”

Stevens is understood to feel unable to make public his reservations about how much progress ministers should expect for the £20.5bn given that he welcomed the money – which May gave to mark the NHS’s 70th birthday in July – at the time as “a change of gear, a step up” after eight years of tiny 1% annual increases. Its budget will rise from £115bn now to £135bn in April 2023.

Another NHS leader said: “Ministers want all the key targets back to where they used to be, the £1bn annual deficit down to zero and a host of new commitments delivered, all within the 3.4% annual budget rises over the next five years that the £20bn involves. But the numbers, and the whole thing, just don’t add up. You simply can’t get all those improvements on those timescales on 3.4%. It isn’t deliverable. But that’s what the government wants.”

NHS Improvement, the service’s financial regulator, is helping to draw up the plan. It warned last week that hospitals had already overspent by £1.23bn by the end of September, halfway through the service’s financial year, and that it may take five years to restore waiting time performance.

Niall Dickson, chief executive of the NHS Confederation, which represents organisations across the healthcare sector, urged ministers and the public to be realistic.

“The NHS long-term plan is a vital opportunity to improve patient care and change the way we deliver services to the public. But we should not underestimate how difficult it will be to recover performance on waiting times and to move NHS trusts and other organisations back into the black.

“We must be realistic about what is possible within the extra £20bn – the last thing we need is to set local services up to fail. And, above all, we will need a plan for securing the staff we need to respond to changing healthcare needs.”

NHS England denied a rift, saying: “The NHS, patient groups, clinicians and government are working closely together to finalise the NHS long term plan ready for publication before Christmas.” The Department of Health and Social Care also said there was no dispute, and they were “working closely with NHS England and NHS Improvement to develop an ambitious long term plan for our health service.”

https://www.theguardian.com/society/2018/dec/06/ministers-and-nhs-england-chief-at-loggerheads-over-targets

Outsourcing: Carillion and potential crimes affecting councils

“The collapse of the construction giant Carillion has hit the headlines again as auditing failures among the Big Four accountants have come to light. For many, the real impacts (and horrors) of the collapse are only now emerging.

Oxfordshire county council has spent £1.7 million on an audit of the council’s ten-year services contract with the company. It reveals shocking levels of oversight — missing building certificates, fire safety issues, unmet planning conditions — and the scale of the damage done, in health and safety and in financial terms, is breath-taking, especially when you consider the council spent a total of £123 million with Carillion on 602 municipal projects.

We are still to find out exactly what happened behind the scenes, and the results of the Financial Conduct Authority’s (FCA) criminal investigation is hotly anticipated.

The news of the collapse in January was reported alongside photos of the directors’ properties, and details their extravagant pay deals. In June this year the FCA said it was “looking into” allegations of insider trading. Perhaps this was a result of a complaint made in February, by people who say they have been the victims of the directors’ crimes. Increasingly the police are failing to investigate financial crimes, through sheer lack of resources. Will the FCA be able to do any better?

The long story short goes like this: Carillion’s directors had a stack of duties and obligations because they ran a PLC. The huge pay deals are supposed to be there for a reason. One of their many obligations was to keep the market informed of the company’s financial situation. Dishonestly failing to do that is a crime called “misleading statements”. Making misleading statements is related to the crime of insider trading. The point of both crimes is the same: to keep the markets fair. The victims, or at least the people making a complaint against Carillion, are the bosses of a firm called Kiltearn Partners. Kiltearn is an institutional investor: a business which invests large sums in stocks and shares on behalf of lots of smaller investors, such as people putting money into a pension.

In January 2017 Kiltearn owned 10 per cent of Carillion’s shares on behalf of their clients. In March that year Carillion published its 2016 accounts, and everything was painted in rosy colours. Kiltearn staff had no reason to think they should be selling its shares in Carillion. Not until a couple of months later anyway. Because on July 10, 2017, Carillion told the market about a massive problem — there was an £845 million hole in its cash flow. It said it needed to make provision for this, and basically wrote it off. Unsurprisingly the share price tumbled, and Kiltearn was left with the feeling it had been had. Bosses called for an investigation into whether Carillion’s management knew, or should have known, about the cash flow issue — with this statement Kiltearn was reporting a crime.

If there turns out to be solid evidence that the Carillion directors have committed market crimes, it looks likely to follow there will also be evidence that they have committed fraud. It could even be a first prominent outing for “fraud by failing to disclose information”, a section of the Fraud Act 2006.

It will be interesting to see if the FCA has the skill and determination — and ultimately the evidence — to bring the directors to book. In the meantime, it is likely we will continue to see other victims of Carillion’s collapse emerge.”

The author is a barrister at 23 Essex Street

Source: The Times

“Visas for super rich investors scrapped amid crackdown on money laundering”

Owl says: WHAT! The government WASN’T checking the accounts and investments of these people to begin with? Well, who would have guessed!

“The government will suspend golden ticket investment visas, which allow non-EU nationals to stay in the UK if they invest £2m, amid a crackdown on organised crime.

Just buying into UK companies, or buying government bonds, will no longer be enough for Russian oligarchs, Middle Eastern oil barons and other super rich investors to stay in the UK.

The tier 1 investor visas, which gave investors permission to stay in Britain for up to three years, are being scrapped at midnight tomorrow.

The changes will force applicants who want to come to the UK to hire British auditors to comb through their accounts and prove they control the investments.

Around 1,000 people applied for the visas in the past year. …

“I have been clear that we will not tolerate people who do not play by the rules and seek to abuse the system,” immigration minister Caroline Nokes said.

She added: “That is why I am bringing forward these new measures which will make sure that only genuine investors, who intend to support UK businesses, can benefit from our immigration system.” …

http://www.cityam.com/270279/visas-super-rich-investors-scrapped-amid-crackdown-money

“The Government Thinks No-one Will Notice Their Devastation Of Local Government – We Won’t Let That Happen”

“Unless this Government changes tune, elderly people will be lonelier, disabled people will get sicker, vulnerable children will fall through the net.

Despite unprecedented pressure and growing warnings, Councils are bracing themselves for the biggest cuts they’ve had to face since 2010. That is the prospect of the Tories’ local government settlement set to be announced.

The past eight years have seen councils forced to make cuts – but they’ve reached the end of the line, with so-called “non-essential services” being cut to the bone, leading to even deeper reductions to the services that we all rely on like street cleaning, libraries, and children’s centres, and to many of the preventative services that previously reduced the pressure on the NHS and police.

So severe and urgent is the crisis facing our councils, that the UN’s special Rapporteur on extreme poverty and human rights mentioned it in the opening paragraph of his recent report, saying that local authorities had been “gutted by a series of government policies”.

Despite all the warnings, the Government will announce a further 36 per cent cut to local government funding, the largest annual deduction in almost a decade.

Councils of all parties are facing a funding crisis with devastating effects on key public services – children at risk, disabled adults and vulnerable older people – and the services we all rely on, like clean streets, libraries, and children’s centres.

In one of the wealthiest countries in the world, this is an unacceptable position to be in. It is a national scandal that 1.4 million older people are now not getting the necessary help to carry out essential tasks such as washing themselves and dressing – up 20% over the last two years. The deterioration of social care alone will fundamentally damage the fabric of society as we know it. Huge amounts of money have been taken out of the system, despite obvious rising demand.

This is a crisis of the Tories’ creation, but as ever they are pushing the blame on to councils, communities, carers and families. Our councils were the first target when the coalition government came into power, losing 60p out of every £1 that the last Labour Government was spending on local government in 2010.

As a result of these cuts, the Tory-led Local Government Association is predicting that next year, councils will be facing a funding gap of £3.9 billion just to maintain current services, including £1.5 billion gap in adult social care funding.

Instead of showing the leadership that is needed in this crisis, the Government continues to put sticking plaster after sticking plaster, on what is now, an open wound.

Previous local government settlements under this Tory government have been unacceptable, unfair and unhelpful. Unless this Government changes tune, elderly people will be lonelier, disabled people will get sicker, vulnerable children will fall through the net, and our communities will become more unpleasant, unsafe and unattractive places to live. All councils are now reaching breaking point and short term sticking plasters will not keep the wolves from the door for much longer.

Andrew Gwynne is the Shadow Secretary of State, Communities & Local Government and Labour MP for Denton & Reddish”

https://www.huffingtonpost.co.uk/entry/local-council-cuts_uk_5c07d022e4b0a6e4ebda854a

“New homes ‘crumbling due to weak mortar’ : affected householders gagged about repairs

“Hundreds of new properties have been built using weak mortar that does not meet recommended industry standards, the Victoria Derbyshire show has found.

There are reports of homes with the fault on at least 13 estates in the UK.
The full extent of the industry-wide problem is hard to measure as some homeowners have been asked to sign gagging orders to claim compensation.

The industry says mortar performance is a complex issue and can be affected by a number of factors.

One of those homes was owned by Vincent Fascione, 70. He says he was watching football on TV one evening in 2016 when he heard a loud cracking noise from the external walls of his house.

The next morning, he found a sand-like substance all over his front path and driveway. Photographs and video from the time appear to show growing cracks in the mortar holding his bricks together.

Mr Fascione, from Coatbridge outside Glasgow, bought his semi-detached property in 2012 for £112,500.

He complained to the homebuilder, Taylor Wimpey, and to the NHBC, the industry body that signs off and provides the warranty for most new-build houses.

‘Disastrous’

Under NHBC guidelines, mortar in most areas of the UK should be made of one part cement to 5.5 parts sand.

In severe weather areas such as Coatbridge, there should be even more cement in the mix to make it stronger and more durable.

Laboratory tests on samples taken from parts of Mr Fascione’s home showed the amount of sand was almost three times higher than recommended.

“I’m the guy who retired and decided to buy a new-build house,” he said. “I’ll never buy a new-build house again – never. It’s just been disastrous for me.”

After 18 months of complaints, the NHBC bought back Mr Fascione’s home at the market rate and he is living in alternative accommodation.

The organisation said it had done so because the performance of the company it had employed to repair the property had not been good enough and “in consideration of Mr Fascione’s personal circumstances”, not because of the original issue with the mortar.

‘Widespread and serious’

The Victoria Derbyshire Programme has heard about new build properties in at least 13 estates from Scotland to Sussex, built by different companies, with what appears to be a similar problem.

In one single estate in the Scottish borders, it is thought Taylor Wimpey has agreed to replace the mortar in more than 90 separate properties. The homebuilder says an assessment by engineers found “no structural issues” with the homes.

“This is both widespread and serious,” says Phil Waller, a retired construction manager who has blogged about the problem.

“It cannot be explained away by the industry as a few isolated cases.”

Exactly why the weaker building material may have been used is unclear.
In some cases, the housebuilder may have simply used the wrong type of mortar. In other cases, errors may have been made mixing and laying the material on site.

Some construction experts also blame the switch to a new type of factory-mixed mortar, which might pass a different strength test in the laboratory but not always be strong enough in the real world.

Non-disclosure agreements

Faced with what could be an expensive repair bill, many homeowners have been told by their own solicitors not to go public until the issue is resolved.
In some cases, customers have ultimately had their houses bought back by either the homebuilder or the NHBC.

In others, it appears repairs have been made and compensation paid as part of a deal that involves the signing of a non-disclosure agreement or gagging clause.

One homeowner in the north-west of England told the programme: “The only comment I can make is no comment. I’d like to speak out but at the end of the day I have to protect my investment.”

A gagging clause may stop the property owner talking not only to the media but also to neighbours in the estate who may be facing similar problems.

“It’s going on, it’s just not being talked about,” says Mr Waller.
“Non-disclosure agreements should be banned full stop. If it’s all covered up, more victims are likely to be drawn into the net and make the same mistakes.”

An NHBC spokesman said it included a confidentiality clause in a “small number of rare circumstances” but declined to disclose the number.
He added: “We work with builders to help them improve the construction quality of the homes they build. However, it is the builder who is ultimately responsible for the quality of the new homes they build.”
Taylor Wimpey apologised to Mr Fascione for the issues experienced with his home.

A spokesman said: “We are committed to delivering excellent quality homes and achieving high levels of customer satisfaction. On those occasions where issues do arise, we endeavour to resolve those issues as soon as practically possible.”

https://www.bbc.co.uk/news/business-46454844

Tory grandee says Tories should take blame for increase in poverty and he wants no part in it

“Lord Michael Heseltine has warned MPs against voting to “make this country poorer” in the looming House of Commons vote on Theresa May’s Brexit deal.

In a rousing speech on Wednesday afternoon, the Tory former deputy prime minister told the House of Lords that if it votes for slower economic growth, lower tax revenues and lower public spending “those who will suffer most are those least able to bear the strain”.

“I tell you there are no solutions that help the fortunes of the least privileged in the most stressful circumstances,” said the famously pro-Europe politician.

“When the election comes, it will have been a Tory that led the referendum campaign,” Heseltine continued.

“It will have been a Tory government that perpetuated the frozen living standards.

“It will be a Tory government that is blamed for what we are talking about today.”

“I will have no part of it,” he added. …”

https://www.huffingtonpost.co.uk/entry/michael-heseltine-breixt-theresa-may_uk_5c08293ee4b069028dc61a1e

Swire and Parish – more on those votes

A comment on the original post:

“Let’s make sure that everyone is clear what this was all about and why Swire’s & Parish’s votes were fundamentally important.

The issues that these votes related to were as follows:

1. Should the government keep the Attorney General’s legal advice secret so that MPs debate and vote about Brexit could not be an informed vote, but instead would be based on a political interpretation of this legal advice by the Government, in other words an interpretation by government politicians with all the bias towards the outcome they want to see rather than an independent assessment? [Swire and Parish voted to keep the advice secret]

2. Should the Government be allowed to ignore a decision by Parliament that the legal advice should be published in full? In other words, is Government the servant of our MPs or the other way around? Remember, that the only group able to hold the Government to account between general elections is Parliament i.e. MPs – and if Government doesn’t need to be accountable to them, then they are effectively an absolute autocracy, without needing to be accountable to anyone. Scared yet? [Yes, said Swire and Parish – it should ignore the vote]

3. Should the Government – and specifically Mrs May – be allowed to control the Brexit debate in order to give MPs only two choices – a very bad one or an even worse one, and not allow them to debate or vote on the other legally available choices? And to do this to the detriment not only of Parliament but also the people of the UK who have to live with the consequences for at a minimum several decades? [Yes, they voted: only Mrs May and her cabinet of cronies should be allowed to decide what happens next]

In other words, these three votes were not about some minor technicality relating to publication of a specific letter from the Attorney General to the Prime Minister – instead they were about THE FUNDAMENTAL FOUNDATIONS OF DEMOCRACY – that the Government should be able to be held accountable by MPs, and that in the end it is our MPs who take the decisions on behalf of us. [Remember “sovereignty”!]

And that is why both Neil Parish and Hugo Swire’s votes against these motions are so important and so wrong. By now we are all pretty used to Swire and Parish putting Party before People – just look at the awful laws they have voted for which have it the poorest and most vulnerable in our society the hardest. Is it any wonder that the Conservative Party is called “The Nasty Party” by a large proportion of the population?

But these votes were different – they were about putting Party before Democracy itself. Swire and Parish effectively voted for the Government to be unaccountable, and for an absolute autocracy where the Government can do absolutely what they like, regardless of whether MPs agree with it or not. These votes were simply anti-democracy. PERIOD.

Remember, power corrupts – absolute power corrupts absolutely.

So I ask you – yes you, the person reading this comment – do you really want your MP to be voting to give Government ministers absolute power, because that is the first step towards a tyrannical government? Or do you think that above all else, your MP should be voting to preserve democracy? In other words, which is more important to you in the long run – today’s vote or having a genuine democracy? I certainly know my own priority on this.”

“School standards dip across the South West – but nurseries and childminders impress Ofsted”

“An annual report published by schools watchdog Ofsted showed, as of August 31 2018, 87 per cent of primary schools in Devon were judged as good or outstanding – a drop of four per cent compared to August 31 2017.

Seventy-six per cent of secondary schools in Devon were judged good or outstanding, a drop of six per cent.

The report said: “By the end of August 2018, 83 per cent of schools in the South West were judged good or outstanding at their most recent inspection, compared with 86 per cent nationally.

“This was a four percentage points decline for the region compared with August 2017.

“For primary schools, 84 per cent in the region were judged to be good or outstanding, a four percentage points decline compared with August 2017 figures. For secondary schools, 73 per cent were judged to be good or outstanding – below the national figure and a six percentage points decline compared with August 2017.” …

https://www.exmouthjournal.co.uk/news/school-standards-dip-across-the-south-west-but-nurseries-and-childminders-impress-ofsted-1-5806946

“130,000 homeless children to be in temporary lodgings over Christmas”

More than 130,000 homeless children will be living in temporary accommodation over the festive period in Britain, the equivalent of five youngsters in every school, according to estimates by the homelessness charity Shelter.

Nearly 10,000 of those will wake up on Christmas Day in bed and breakfasts, hotels or hostels where in many cases their family will have been put up in a single room, sharing bathrooms and kitchens with other residents.

Overall, 50,000 more children in England, Wales and Scotland are homeless compared with five years ago, a rise of 59%, Shelter says. There have been particularly sharp increases in some affluent, high housing cost Tory heartlands in south-east England. …

https://www.theguardian.com/society/2018/dec/05/130000-homeless-children-to-be-in-temporary-lodgings-over-christmas