Local authority companies ” should not have many council board members” – so why run the company?

Owl says: If councillors and officers are no good at running commercial companies – why are they being created?

“Local authority-run companies should avoid having too many council members on executive boards to ensure commercial success, CIPFA’s annual conference was told.

The advice on governance was issued today by Mike Britch, chief executive of Norse Group, a firm with a £300m turnover wholly owned by Norfolk County Council, at a workshop on councils and commercialism.

He told delegates the presence of too many members on executive boards could hamper the agility that a small and focused board needed to efficiently deliver services in a commercial environment.

Britch said: “You can’t run a commercial service as a department of a local authority, that means you have to get yourself from under the shackles of a 151 [financial] officer, the monitoring officer and everybody else who wants to reduce what they perceive as the risk to their shareholders.

“You need to have commercial and operational freedom to trade and to make the decisions you need to make.” …”

http://www.publicfinance.co.uk/news/2017/07/local-authority-run-companies-should-avoid-too-many-council-board-members

Sidmouth Port Royal plans – improvement or defacement?

From Save our Sidmouth:

“Sidmouth seafront: improved or defaced by councils’ Port Royal plans? NOW is the time to make your views known

East Devon District Council (EDDC) and Sidmouth Town Council (STC) have progressed their joint Port Royal Scoping Study, to produce a single option for public consultation. As suggested in our most recent posts, the redevelopment proposed has caused controversy, with heavy criticism on planning grounds and on unsuitability. Various letters to the press have been copied to SOS, and will be posted on this website, for your information.

Two new web pages describe the situation, and include thought-provoking photomontages:

http://drillhall.rescue.historic-sidmouth.uk/port-royal-regeneration-consultation

and

http://drillhall.rescue.historic-sidmouth.uk/port-royal-regeneration-consultation-photomontages

Local resident, Mary Walden-Thill, warns, ”The first meeting of Sidmouth Town Council after the Survey closes, is on the 14th of August. It is very likely that they will make their decision on the redevelopment at this meeting. Once the decision is made the ‘gateway’ closes and it will be extremely difficult to reconsider, it may even require a legal appeal.” (
The Terms are very clear … see:

http://drillhall.rescue.historic-sidmouth.uk/scoping-exercise

Many agree with her that there seems ”no reason why the area could not be improved without resorting to a huge block containing apartments”, and are questioning why the consultation only offers one option.

NOW is the time to let your Councillor representative(s) know your views, by

a.contacting them directly . STC contact details from the council website are listed below, for your convenience.

and

b. completing the brief public consultation survey still open online until 5pm on 31st July 2017, at this link
http://eastdevon.gov.uk/port-royal-consultation/

Sidmouth Town Councillors
Chairman IAN MCKENZIE-EDWARDS, Sidford Ward, ijsmck_ed@hotmail.co.uk
Deputy Chairman John Dyson, South Ward, jdyson@eastdevon.gov.uk
Ian Barlow, Salcombe Regis Ward, wootans@aol.com
David Barratt, Salcombe Regis Ward, davidbarratt@btinternet.com
Sheila Kerridge, West Ward, martin.kerridge@btinternet.com
Jack Brokenshire, Sidford Ward, patandjack42@hotmail.co.uk
Louise Cole, West Ward, louisecolesidmouthtowncouncil@outlook.com
Kelvin Dent, South Ward, kelvinrdent@gmail.com
Michael Earthey, North Ward, michael.earthey@tesco.net
John Hollick, Sidbury Ward, john.hollick@uwclub.net
Stuart Hughes, North Ward, stuart.hughes@devon.gov.uk
Gareth Jones, Sidbury Ward, tgjones46@gmail.com
Marc Kilsbie, East Ward, marc-sidmouthtc@hotmail.com
Dawn Manley, North Ward, dawn.manleytownc@gmail.com
Frances Newth, East Ward, fnewth@icloud.com
Simon Pollentine, Primley Ward, simon_sheelagh_simon@tiscali.co.uk
John Rayson, West Ward, johnwrayson@btinternet.com
Jeff Turner, Primley Ward, jeffreyturner391@btinternet.com
Paul Wright, South Ward, paul_wright_sidmouth_town_council@hotmail.com

South Hams and West Devon district councils consider merger

Owl says: presumably this is not an option open to East Devon District Council, as no council would want to merge with one that is going to take out a big loan for its own new headquarters.

“Two Devon councils are considering a merger into one authority in a bid to save money – but the move could see your council tax increase.

South Hams and West Devon councils are considering joining forces, with a formal proposal to be put to councillors later this month, to make up for a budget shortfall of £1.9million each year after 2020.

South Hams leader John Tucker says there would be “severe consequences” if he cannot produce a balanced budget, suggesting his council could “run out of money”, reports plymouthherald.

“We know that there are some key concerns that the public will have, and in the proposal you will see how we plan to address those concerns,” he said.

“The biggest one for our residents in South Hams is likely to be the difference between our council tax rate and West Devon’s, which is approximately £63 a year on a band D property.

“If the proposal goes ahead we would need to bring the two council tax charges to the same level and this may mean that South Hams residents will see an increase over the next few years, until they are at the same level.

“In the proposal we have laid out some different options for how this could be dealt with.

“If we do not do this, there is a risk that South Hams will run out of money after 2020, due to the lack of funding, we therefore want to make sure we consider all options to continue funding those services we know are vital to our local communities.”

The merger could save up to £500,000 every year, excluding extra income from council tax.

“These savings would not be made through cuts to services, but because a single council will cost less to operate,” a spokesman said.

“Over the last few months a working group of councillors from both authorities, with representatives from across the political parties in South Hams and West Devon, have been exploring if the creation of one new council would be possible.”

http://www.devonlive.com/average-63-council-tax-hike-for-devon-residents-as-councils-plan-to-merge/story-30433679-detail/story.html

Private companies are better than public ownership? You must be joking!

“Battersea Power Station builder Carillion has shocked the City with a devastating profit warning after an £845 million hit on a clutch of contracts and spiralling debts left it vulnerable to a takeover.

The company — whose chief executive Richard Howson has stepped down immediately — has axed its dividend this year and is desperately looking to prop up its creaking balance sheet by selling off parts of the business.

Carillion’s debt pile is likely to soar to £800 million this year and interim boss Keith Cochrane said that “no option is off the table” for the company, whose shares tumbled by 30%, or 62.5p, to 129.6p today.

RBC analyst Andrew Gibb said: “In our view, the group would need to raise a significant amount — £500 million-plus — to restore stability. And in the near term, we would expect others to be running the slide rule over the business.”

Carillion — whose roster of projects included the conversion of London’s power station into flats — called in accountants KPMG to review nearly 60 contracts earlier this year after deteriorating cashflows.

A host of major players including Sir Paul Marshall’s Marshall Wace, fund giant Blackrock and George Soros’s SFM UK had lined up big bets against Carillion, borrowing shares in the firm to sell in the market in the hope of buying them back more cheaply later and booking a profit.

Three major public-private partnership contracts — the Midland Metropolitan Hospital in Smethwick, Merseyside’s Royal Liverpool Hospital, and an Aberdeen road project — are understood to be behind the bulk of the UK’s £375 million losses. Its £470 million writedowns in overseas markets are driven by losses on a major project in Doha, Qatar.

The business slashed guidance on revenues this year to between £4.8 billion and £5 billion and is pulling out of public-private partnership construction deals altogether after the shock blow. It is also withdrawing from construction markets in Qatar, Saudi Arabia and Egypt and only pursuing jobs in future “via lower-risk procurement routes”.

“The decision to cancel this year’s dividend will save £80 million and Carillion also plans to raise £125 million through “non-core” sell-offs over the next 12 months in a bid to ease the pressure on the balance sheet. “

http://www.standard.co.uk/business/carillion-in-crisis-as-contract-bungles-deal-845-million-blow-a3584146.html

Budleigh “health hub” advertises its rooms for rent

Even the vaguest association with “health” that you can get people to pay for seems to be acceptable.

And lots of rooms for rent as the NHS appears to be using very few of them.

“Floor plans for Budleigh health hub revealed

Individuals and organisations in Budleigh Salterton are being urged to come forward to take rooms at the town’s new health and wellbeing hub.

The hub, which will be managed by Westbank, is currently under construction on the site of the former Budleigh hospital.

Floor plans have been released for the facility, which is due to open later this year.

Westbank is now looking for people and organisations to register their interest in taking rooms at the hub.

A spokesman for Westbank said: “We would like to offer a range of services which reflects the local community needs and as such are seeking expressions of interest from as many people/organisations as possible.

“Please can interested parties look at our website for more information to discuss things further.”

According to the floor plans, there will be a café in the main reception, three NHS clinical rooms, a nursery, a kitchen and a day service room.

There will also be two multi-use rooms measuring around 26sqm, as well as rooms dedicated to the hub and Westbank.

The second floor will have five more multi-use rooms, two NHS clinical rooms, as well as a smaller room earmarked for audiology.

A kitchen and a restroom are also planned for staff on the first floor, as well as a fitness and rehabilitation room and more office space for Westbank.”

http://www.exmouthjournal.co.uk/news/floor-plans-for-budleigh-health-hub-revealed-1-5096997

Seaton: the seafront development people DO want – but there’s no money

http://www.devonlive.com/revisions-made-to-multi-million-pound-seafront-redevelopment-plans/story-30414274-detail/story.html

Well, we have all to first pay for a seafront development Exmouth doesn’t want and then we all have to pay for EDDC’s flash new offices and then … who knows?

Seaton always seems to be the poor relation.

Come on Mr Parish – get your fingers out!

Relocation: the sums just don’t add up

So Mark Williams says that ‘We have an asset that will appreciate in value’.

First of all, it may not, but more importantly, the increasing value of the Knowle as an asset has always been excluded from EDDC’s calculations.

Finally, after seven or eight years, EDDC have recognised that the Knowle is a capital asset that is likely to increase in value.

Even when the figures were manipulated to show the move as ‘cost neutral’, that façade was only maintained because the value of the Knowle (at least £7.5 million) was equated to the value of the new HQ at Honiton (valued by JLL at £2-3 million). Since then, of course, ‘cost neutral’ has gone out of the window.

So we now have the proceeds of sale = £7.5 million – possibly, assuming in these trying times a sale is even possible.

Cost of replacement buildings = £10 million (Honiton) + Exmouth £1.7 million + Manstone £1 million = £12.7 million.

Net loss £5.2 million.

Plus new road at Honiton = £225,000.

Plus admin costs to date = £2 million.

Plus costs of moving = say £3 million. (New equipment, staff compensation, etc.

Plus loss of asset value = £7.5 million – £2.5 million = £5 million.

Total loss is now in this scenario about £15.5 million.

This is all to achieve gains in running costs. However, estimates for Manstone were never included. The cost of running three HQs rather than one will be higher because of increased travelling, and commuting between sites.

Were Option 3 to be pursued, and the modern buildings improved at a cost of £1 million to £1.5 million, then the ‘new’ Knowle would be a very cheaply run building.

The £2 million already spent on admin cannot be recovered, so that is a sunk cost.

So pursuing Option 3 would cost £12 million less, and almost certainly reduce running costs. And leave EDDC with a far nicer building than a cheap and uninspiring shed of offices on an industrial estate at Honiton.

The above assumes that EDDC’s numbers are correct, but we all know that the cost of relocating will rise as the scheme is pursued, and we no longer have the guarantee of Pegasus money coming through. Plus, of course, EDDC may feel the need to employ even more consultants!

So, we will not see any change out of £20 million. And there will be no savings as to running costs compared to Option 3.

All this at a time of local government reorganisation.

Real numbers: not EDDC’s strongest point …

Views wanted on East Devon street trading

Owl says: make no mistake this is simply an EDDC cash cow. Instead of having a few regulated streets where outdoor trading can take place with a licence, this extends to ALL streets – bringing in more income for the council but potentially setting permanent traders with increased overheads (including business rates) against temporary traders without them.

No problem in vibrant, thriving towns but a big problem elsewhere. Except Sidmouth where local traders were so vehemently against it, the plan was dropped for that town only.

“District bosses are consulting on their latest plans for new street trading rules.

East Devon District Council (EDDC) is proposing to designate the whole of the district as a consent street, meaning street traders would have to apply to the council for a licence to trade.

However, following its initial consultation, EDDC now plans to exclude Sidmouth.

To take part in the consultation, visit http://www.eastdevon.gov.uk/streettrading, or to obtain a paper copy call 01395 517569. The closing date for responses is April 26.”

http://www.exmouthjournal.co.uk/news/views_wanted_on_east_devon_street_trading_rules_1_4935920

Exmouth seafront family business to be evicted for “regeneration”

“The owner of an Exmouth café has been left ‘heartbroken’ after being forced to close following plans to build a multi-million pound development on the seafront.

The family-run Harbour View Café and Chip Shop is set to disappear from the seafront after 40 years of trading, following East Devon District Council’s plans to build new development called Queen’s Drive Leisure Area. …

… Dawn said that they first found out about the development plans eight years ago.

She said: “The initial plan was that all of the independent businesses would be involved in the new development.

“I don’t know when that changed because it all went very quiet for a while, and then by 2014 we were given a formal notice and the council said we had to leave by September that year.

“At that point we had to decide whether we wanted to take it further and go to court or to agree to the end of the lease. And because we didn’t have the resources to take the fight all the way we had no other option but to agree to it.”

Since that point Dawn said that the council had given them an extension of their lease, but now that has ended and 2017 will be the last season. “I am grateful that the doors aren’t closed yet, but we did think that we would have at least another year of trading,” she added.

“The council have told us that we need to be out by the end of August, but I just wish we knew why. For the business to close in the peak of summer is the worst time for us as we will be so busy.

“We also have 19 members of staff that we will have to make redundant and we will still have to pay our mortgage somehow after August.

“Obviously we would love to keep Harbour View alive and we are currently looking for a new home. But it just scares me to know what the development is going to look like in three years’ time as I don’t know what I will be looking at.” …

… A spokeswoman for East Devon District Council said: “Change isn’t always easy to accept but Exmouth is a growing town with residents and visitors whose desires and expectations are changing as well. The council is committed to giving townspeople and visitors more and better attractions and facilities and that includes the Queen’s Drive site. Exmouth is the biggest town in Devon and it is starting to up its game.

“The café operators have known for two years that the Council is taking the site back and we have during that time supported them with a further season extension and free rent. We did this so that they have time to prepare to leave and plan for the future of their business.

“Mamhead Slipway, the Strand, the Premier Inn and M&S are all signs that Exmouth is embracing change and benefiting from new assets. A café at Orcombe Point could be next. Meanwhile Queen’s Drive investment is getting back on track.

“When the Council takes the Harbour View Cafe site back at the end of August we will also be preparing to move the road and car park and consultation will be under way on the water sports centre. For the Harbour View site in particular, once the council has it back, then we have the freedom to consider the best way forward and the best timing to bring a new and fresh eating place to what is one of the finest locations in the south west. …

http://www.devonlive.com/family-run-exmouth-caf-to-close-after-40-years-due-to-seafront-redevelopment-plans/story-30194144-detail/story.html

Public services unsustainable and will bounce from crisis to crisis say think-tanks

“The UK faces the prospect of failing public services and breached spending controls unless urgent action is taken, the Institute for Government and CIPFA have warned.

The think-tank has partnered with the accountancy body to deliver an assessment of key public services in light of increasing cuts imposed by central government.

The Performance Tracker review concludes that until recently, Whitehall was able to maintain the performance of public services while cutting spending. However, the report highlighted that the government’s own data indicates the existing approach has “run out of steam.”

The authors urged the chancellor Philip Hammond to demonstrate in next week’s Budget that his spending decisions were based on “realistic assessments”.

They added that, in the near future, the government risks “bouncing from spending crisis to crisis” against the backdrop of contentious and potentially divisive Brexit negotiations.

The report identified the key pressures on adult social care, hospitals and the prison services. It noted that people were waiting longer for critical hospital services such as A&E and cancer treatments, and highlighted delays in transferring people from hospitals into social care have risen by 40% since 2014. Meanwhile, violence in prisons has risen sharply, with assaults on staff increasing by 61% in two years.

Among the recommendations made by the report was for the assumptions behind government’s spending decisions to be subject to independent scrutiny. As such, Whitehall should consider creating an institution similar to the Office for Budget Responsibility for public spending, which could help “embed efficiency within public sector decision making and prevent wishful thinking.”

Rob Whiteman, chief executive of CIPFA, said: “We know that for some parts of the public sector resources are stretched and that those working to deliver services are up against it. What is crucial is that we make the best possible use of the funds available.”

A thorough understanding of how organisations are run and services provided was key, “using this information to think strategically and creatively about improving policy decision making, which will ultimately improve service delivery.”

Julian McCrae, deputy director of the IfG, added the government was entering a cycle of “crisis, cash, repeat.” He emphasised the new report was not a call for money but rather, “a call for better financial planning” and reforms robust enough to endure public scrutiny.

“It is fundamental to increasing the effectiveness of these public services that ministers, officials and the public know how well government is performing, and use this information to guide decisions,” he stated.

http://www.publicfinance.co.uk/news/2017/02/cipfa-and-ifg-issue-pre-budget-warning-over-public-service-sustainability

New business rates 19% higher for NHS hospitals, 9.6% higher for private hospitals

“People are saying local authorities shouldn’t have to develop local funding solutions to the meeting the rising costs of adult social care. This article reveals another challenging irony in the context of the devolution of financial responsibility. Local authorities are going to become increasingly dependent on business rates and yet by so doing they will potentially, as an unintended consequence, drive up the costs of healthcare in their localities.

In a world where we have been able to do so many technically brilliant things we must be capable of finding a better way forward than the chaos, which is beginning to embed itself at the heart of the way we pay for our services. There is a strong argument to suggest this policy, when allied to ongoing cuts to central Government funding for local authorities involves taking money out of the NHS to fill the gap left by Government cuts. This article tells us:

The government is under growing pressure to stop a sharp increase in business rates for hospitals that threatens to increase the strain on the NHS.

Changes to the business rates system mean that the 1,249 NHS hospitals liable for the property tax will see their bills increasing by £322m, or 21%, over the next five years from April.

However, a growing number of politicians are calling for the government to reconsider the tax hike for hospitals, including making them eligible for the same 80% discount that charities enjoy.

Some private healthcare providers, such as Nuffield Health, already enjoy an 80% discount because they are registered as charities. Furthermore, the business rates that the 581 private hospitals do pay will not increase as much as it will for hospitals.

The rateable value of private hospitals has increased by 9.6% in the last revaluation while NHS hospitals have seen a 19.8% rise, according to research by the property consultant CVS.

The cross-party group of politicians who have already expressed concern about the tax rise for hospitals include Steve McCabe, Labour MP for Birmingham Selly Oak, Royston Smith, Conservative MP for Southampton Itchen, and Annie Wells, Conservative and Unionist MSP for Glasgow.”

https://www.theguardian.com/society/2017/feb/15/government-urged-stop-tax-hikes-nhs-hospitals-business-rates

“Budleigh fishermen’s fury at 350% shed rent hike”

If any of the fisherman voted Tory at district elections, they really should have expected this!

“Users of the sheds, used by many to store vital equipment and petrol for their boats, have been told they face having to pay more than four times their usual ground rent.

Landowner East Devon District Council (EDDC) has written to the fishermen to inform them that, when their current annual licence expires in April, renewal will cost £450 instead of £100.

Former town mayor Roger Pym, 72, has been fishing on the seafront for 50 years and still helps his son Sam, 43, with the business.

He said: “I’m furious – we’re being ripped off. It appears to me that they are trying to price all the fishing fraternity out for extra beach huts.
f
“You don’t need to have a beach hut. If you have one, it’s for pleasure. We need to have a shed as we have a 16ft boat with crab pots.”

Dave Perkins, 60, has been fishing full-time on Budleigh beach for 12 years.

He said: “I expected prices to go up, but to suddenly get a jump of that amount is silly.

“The thing is they’re trying to put it down as commercial ground rent to be in line with all commercial rents, but not all the huts are used by commercial fishermen.

“Nothing is supplied with the sheds – no water, no electricity, no amenities.

“With everything else, with trying to fish on the beach, to get this thrown at us is ridiculous.”

Current Budleigh town mayor Chris Kitson said: “I support the fishermen that have been there on our beach for years and this is not acceptable to have these hikes in rent imposed on them.”

An EDDC spokeswoman said: “As with all our commercial transactions, we prefer to deal directly with our tenants and we would therefore ask Mr Pym to write to our property services team or to telephone them to discuss the matter of his rent.”

http://www.exmouthjournal.co.uk/news/budleigh_fishermen_s_fury_at_350_shed_rent_hike_1_4864134

Is Mr Cohen up to his job?

Richard Cohen has not had a good year (well, actually he has, as he remains Deputy CEO and Relocation Manager for EDDC).

He came under fire last week for saying (twice) that the DMC had “stymied” relocation plans – though actually if anyone stymied anything it was PegasusLife putting in a planning application that was unfit for purpose.

Just so show this wasn’t a one-off, let us remind ourselves of this is transcript of part of a speech by a well-known Sidmouth businessman with experience of property development, made at a Sid Vale Association Meeting at the Unitarian Church, Sidmouth, 9th December 2014.

The speech begins with a discussion of Cohen’s estimate of total relocation costs at about £10 million.

“The numbers are completely, hopelessly and scandalously wrong. They are useless, they are terrible and have to be challenged vigorously and strenuously. These numbers are rubbish. They don’t include the green travel plan, they don’t include compensation for the staff, they don’t include the cost of the move itself, they don’t include the costs of hubs the other towns and, most importantly, they don’t include the cost of officer time and members time that is involved in all of this.

The expert, Mr Steve Pratten from Davis Langdon, he is going to cost £1million or more on his own. It doesn’t include the legal costs in all this. I say to the District Council that I have estimated the real costs to be £20million. That figure was not disputed – Richard Cohen did not say it was exaggerated – he said he didn’t recognize the number. What that means is that I was bang on the money.

Ladies and gentlemen, we are trusting Richard Cohen to mastermind this whole process and we are assuming that he’s accurate in the mathematical calculations. This is the same man who measured the Knowle 40% smaller than it turned out to be! He got it wrong by 40%. Robin Fuller had to write a paper, he was rubbished in the press and it turned out that he was correct. The Knowle is 40% bigger than Richard Cohen thought it was.

This is the same man who was responsible for four attempts to compose the economic impact assessments rejected by his own planning committee. He can’t get simple mathematics right. This same man tells us that energy prices are going to go ahead for the next 20 years at 10% over inflation. He is alone in the entire world in thinking this. Nobody else believes that including your energy companies who will fix your energy costs for the next four years. That instantly takes £1.5million out of all the savings that are supposed to be made by moving, so he hasn’t even bothered to explore that possibility.

He is also the man who shifted the southern boundary of the Knowle to include the second tier of parkland without telling anybody and in contradiction to the specific instructions of the Development Management Committee. I was told this would not be investigated because the Inspector would look at it, which he would not do because it was not in his remit. So that has never been investigated by anybody at the Knowle.

He did it without managing to record that process; without managing to record any conversation with any individual, without writing a single email, or keeping a single note or sending any kind of correspondence to any third party. Because I made a freedom of information request, and there was nothing there.

He did it unilaterally, on his own, secretly, and he didn’t tell a single soul, and I only found out by accident.

This is not the kind of person I would trust to do these calculations. Now when he says it is going to cost £15.9million to refurbish the Knowle, I would tell him that that’s a load of bunkum. This relates to the entire building, which nobody advocates retaining. Why is anybody working in a bathroom when the Knowle is two and a half times the size of the building EDDC says it needs? How can that be possible? Mr Cohen in his calculations also asserts that there is nil chance, not 1% chance of local government reform in the next 20 years.”

EDDC: what’s more important: protecting essential services or losing money on relocation?

That’s the stark choice facing EDDC councillors tomorrow.

There is NO WAY out of the situation that, relocating to Honiton and Exmouth, will cost an enormous amount of money compared to refurbishing Knowle.

No matter how creative you get with the numbers and how much they are massaged – THAT is the reality.

This is a problem entirely of the majority party’s making:

It willfully neglected Knowle for at least a decade to justify its case for a move:

It deliberately withheld figures on running costs for Knowle to improve its case for a move;

It negligently refused to do a full structural survey on Exmouth Town Hall that massively understated the real cost of refurbishment;

It promised a ” cost neutral” move when that was patently impossible to achieve and where costs have spiralled out of control at dizzying speed;

It wants us to pay a 40 year loan for its new HQ that was never anticipated.

None of this would matter if EDDC was a rich council with vast reserves and a gigantic income.

It is not.

It is a council that is draining its reserves rapidly, selling off its assets at break-neck speed to fund day-to-day costs and whose income, thanks to government cuts, is precarious to say the least.

Yet, almost certainly it will close its eyes, hold its nose, cross its fingers and vote to continue down this path of profligate, ever-increasing expenditure because it is not big enough to admit it made a terrible mistake.

And who will suffer? Not the officers and councillors in their more-expensive-than-ivory tower.

We, the council tax payers, with a debt millstone round our necks for the next 40 years with our diminished or non-existent services.

Your call, councillors, your call.

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 …..

EDDC lack of transparency challenged – again

“EDDC’s transparency challenged over relocation from Sidmouth

06:30 05 December 2016 Stephen Sumner
Jeremy Woodward (front right) with campaigners from Save Our Sidmouth at Knowle in 2014
Jeremy Woodward (front right) with campaigners from Save Our Sidmouth at Knowle in 2014
A transparency campaigner is questioning what district chiefs are ‘so desperate to hide’ after they refused to release correspondence on how a developer for Knowle was selected.

Jeremy Woodward’s Freedom of Information (FoI) requests to East Devon District Council (EDDC) about the decision to sell the site of its headquarters to PegasusLife, and the deal between them, were denied.

He appealed to the Information Commissioner to force the disclosure of two key documents – but the authority again refused as it argues the papers are commercially sensitive. The matter will now go to a tribunal.

Mr Woodward said: “What are they so desperate to hide? Why is the council so determined to avoid being held properly accountable, let alone transparent to its rate-paying electorate?”

The tribunal will not be resolved before PegasusLife’s planning application for a 113-apartment retirement community comes before EDDC’s development management committee (DMC) on Tuesday (December 6).

Mr Woodward added: “This timing seriously puts into question the extent to which the DMC’s decision-making is being compromised. Any information touching on the planning application should be made available to DMC members – and the developer’s contract clearly refers to the planning application.”

He said EDDC would rather incur ‘further embarrassment and potential damage’ to its reputation, as this is the second time it has appealed against a ruling from the Information Commissioner.

Last year, the authority refused to release progress reports Mr Woodward submitted FoI requests for on its relocation project. The eight-month legal battle saw EDDC blasted as ‘discourteous and unhelpful’ and cost taxpayers £11,000 in lawyers’ fees.

After Mr Woodward’s latest challenge, EDDC complied with one of three rulings from the Information Commissioner and revealed that PegasusLife will pay £7,505,000 for the site, subject to planning permission.

A spokesman said EDDC is challenging the ruling on the other two documents on legal and procedural grounds as it believes the Information Commissioner has not applied her own guidance consistently or correctly. It argues that the documents are commercially sensitive – but the spokesman said it has always promised to publish them when this is no longer the case.

The spokesman noted the concerns about the DMC meeting but said contractual terms agreed between two parties is ‘legally an immaterial consideration’ to any planning decision.”

http://www.sidmouthherald.co.uk/news/eddc_s_transparency_challenged_over_relocation_from_sidmouth_1_4801011

Exmouth seafront cost increase – fantasy, incompetent, iconic or ironic!

“Calls have been made for the sacking of the ‘owner’ of the Exmouth Seafront Regeneration Project after costs spiralled from £1.5million to more than £3million.

However, East Devon District Council’s (EDDC) cabinet backed the plans with a majority vote, despite heavy criticism from some councillors.

http://www.exmouthjournal.co.uk/news/seafront_plans_backed_despite_soaring_costs_1_4780508

Rob Longhurst (Ind), Ben Ingham (Ind) and Eileen Wragg (LD) spoke against, saying that it was incompetence.

Ian Chubb said it was worth paying and he was happy paying the extra costs. Unclear whether he meant worth paying despite the increases or worth paying despite the incompetence, but nice of him to offer to fund the increased costs personally.

Phil Twiss said they had to proceed because to stop would be to go backwards. Of course only true because they have destroyed existing attractions before getting the plans right and before knowing the real costs – so they can’t go back.

Philip Skinner got his words mixed up when he said the plans were iconic but clearly he meant ironic, and thought it was good for Exmouth because they all like doing watersports.

Tom Wright obviously thought the debate was about football not water-sports because he kept referring to the premier league, and said that Exmouth residents should be grateful for the cost increases.

Honestly, Trump or EDDC Tories – not sure which are the greater fantasists!!”

Poor commercial judgement and skills at local authorities worrying

Hot on the heels of news that EDDC’s development costs for Exmouth seafront have more than doubled from £1.5m to £3.2m comes this report:

The increasing scale of commercial activity carried out by local authorities could put council finances at risk, and town halls might lack the necessary skills for such projects, the Public Accounts Committee has warned.

In a report examining the financial sustainability of local government, published today, MPs accused Whitehall of being complacent about the risk to local authority finances.

Today’s “Financial sustainability of local authorities” review highlighted that councils were increasingly undertaking commercial activity intended to generate revenue income from capital investment in properties and businesses in an effort to offset government cuts. This includes projects such as developing houses and commercial units for rent or sale.

But the MPs warned councils may lack experience of such schemes, and council tax bills or other services could be hit if they go wrong. They called on the Department for Communities & Local Government to review the commercial skills in different types of authorities, and provide an update by next summer on the scale and nature of these activities in order to better anticipate risks.

We do not share the department’s confidence that the increased commercial activity in the sector adds no particular risk to the department’s own work,” the report stated. The department should also work with CIPFA to ensure the local government capital finance framework “remains current and continues to reflect developments”.

Committee chair Meg Hillier said funding cuts had led councils to rethink the way they use public money, and the government wanted councils to become largely self-financing, including through business rates retention. However, she warned that poor investment decisions could cost money that might otherwise be spent on public services.

“Our committee has previously highlighted gaps in the commercial skills of the civil service as a factor in the failure of some projects and we have similar concerns about local government,” she stated.

“Local authorities need the skill-set to invest wisely and the department must bear its share of responsibility for ensuring these skills are in place. But more fundamentally, the information central government uses is inadequate for understanding trends and associated risks in local government finance.”

This represented a serious flaw in DCLG’s ability to plan properly for the future and ensure councils are following a sustainable path, she concluded, but the department was complacent about the risk. …

Call for £1 billion fund to protect community assets

“Community action charity Locality has called for a £1bn fund to safeguard public buildings and spaces under threat of sale.

It said in a report Places and Spaces – The future of community asset ownership

Click to access Locality-Places-and-spaces-report-final.pdf

that budget cuts were increasingly forcing local authorities to sell buildings and spaces instead of transferring them for continued use by local residents.

Locality chief executive Tony Armstrong said such sales were “short sighted” and “put communities at risk of permanently losing important public buildings and spaces for the sake of a quick buck.

“Transferring public assets to communities can safeguard them for generations to come,” he said.

Locality said the £1bn fund should comprise £500m from the Dormant Assets Commission, £200m from social investors, £125m each from central government and the Big Lottery Fund and £50m from other funders.

It would use 80% of its money for capital grants and finance, which Locality said was the equivalent of delivering one project per year in every English local authority, while 10% would be devoted to development planning and feasibility studies and the remainder to management and a national advice centre.

Armstrong said the problem of lost public facilities was particularly acute in less affluent areas, where people often lacked skills to negotiate taking facilities over and then running them.”

http://www.publicfinance.co.uk/news/2016/11/locality-calls-ps1bn-fund-protect-public-assets

Exmouth/ EDDC: more of our money down the drain

“A report has highlighted that costs for Exmouth’s Queen’s Drive project have now more than doubled – from £1.5 million to £3.1 million.

The figures come as East Devon District Council (EDDC) continue looking for “fresh ideas” for the biggest chunk of the nine-acre development site – after sacking the previous developer, Moirai, over the summer.

They say they will be consulting with residents, businesses and tourists for this ‘third phase’ of the Queen’s Drive site in Exmouth.

http://www.exeterexpressandecho.co.uk/costs-double-for-exmouth-s-in-limbo-queens-drive-development/story-29858563-detail/story.html