Tuesday 19 June 2018

£20,000 Returning Officer fees - time to revisit the issue?


Earlier this year I mentioned the council's pay policy and the eye-watering levels of senior pay contained within. During the budget debate a month earlier, a Labour councillor had raised the subject of the chief executive's pay in the Chamber and its remarkable generosity compared to that of the prime minister. This unholy transgression resulted in a sour and outraged email from the chief executive, clearly irritated that the subject had been brought up, and picked up by the press; it was, he said, "entirely unwholesome and distasteful"...

The council's draft accounts have just been published and show an increase in the chief executive's salary from £170,424 to a whopping £191,699. The difference, around £20,000, is for Returning Officer fees for the Local Elections held in May 2017.
The figures do not include similar fees for the General Election which are paid direct by the government, not the council. Nor do they include other perks such as free use of publicly funded resources, facilities and staff time for his own private and personal use. (Nor does it include, of course, £165 a month from me..).

Extract from Statement of Accounts 2017/18
To put this into some real-world perspective, £20,000 equates to what would be considered a decent annual wage in Carmarthenshire, and in fact the median annual pay for all council employees works out at around £21,000.

Labour have been quiet on the subject but a few years back Plaid Cymru, largely initiated by former AM Rhodri Glyn Thomas, called for the end of these additional election fees, unsuccessfully it turned out, but in January 2015 stated a clear Plaid policy on the subject;

"Plaid Cymru believes there should be no additional fees paid to Council senior officers for undertaking Returning Officer duties at election time. Swansea Council does not pay their chief executive a penny to undertake election duties, and we do not see why others should pocket up to tens of thousands of pounds in addition to their very well paid jobs."

I'm not sure what's happened to this policy in 'Plaid-run' Carmarthenshire, presumably Emlyn Dole hasn't found the courage to broach the subject with Mr James...though given the latter's preoccupation with his own wallet it's fairly clear how he would react to such an impertinent suggestion...

From the accounts we also learn that the Director of Communities and deputy chief executive Jake Morgan comes in at a not-very-close second on £156,000. This figure includes pension contributions of £20,000. Mr James has not been part of the pension scheme since the tax avoiding arrangement was exposed back in 2014. Neither the pension cash, nor the illegal libel indemnity have ever been repaid.

Other figures in the accounts show £2.8m paid out in exit packages which includes £687,738 for just six members of senior staff. Altogether, in the past two years, nearly a million pounds has been paid out in exit packages for eight members of the top brass. There are 21 senior officers in the £90,000 to £191,699 pay scale.
The total pay for the 74 councillors comes to £1.23m, plus expenses, which this year have jumped from £42,702 to £50,554.

A Labour motion to marginally reduce £123,000 per year salaries for two new director posts was defeated late last year by Plaid and the Independents, helped along, incidentally, by an entirely unwholesome and distasteful intervention by the chief executive... However, at Cardiff Council, in 2015, a Plaid Cymru motion to slash chief executive pay from £170k to £100k was defeated by Labour.
Meanwhile, Cllr Dole tells us that frontline services are now 'cut to the bone'.

With the current stalemate over excessive senior pay, what about tackling those Returning Officer fees? At £20,000 a throw, it's time to revisit the issue.

Monday 18 June 2018

News round-up - Family Court, City Deals, swamps, and more - updated Carmarthen West

Update 23rd June
Carmarthen West (see below)
The Carmarthenshire Herald has asked the council for details of the planning agreement with Carmarthen Promotions Ltd and reports in this week's paper that;
"The council has declined to release the full text of the planning agreement, some of the provisions of which it is only keen to trumpet to its own ends, claiming that its content is - remarkably in the circumstances of its own press release on the topic - subject to commercial confidentiality"
As for the details of the legal charge, the Herald reports that its value is £1.6m and suggests that the council have possibly taken over the bank loan, which was also £1.6m, but the council is only third in line for payment. As I mentioned below, the company's last accounts showed a net current liabilities of quarter of a million pounds.
This whole project, (not just these 250 homes), including the link road, has been ongoing for several years now, dogged by delays, legal wrangles and compulsory purchase orders and as usual, there has been precious little information, including the overall cost, or the deals done, released to the public.
Like many County Hall projects, it would no doubt benefit from the attention of external forensic auditors...

* * *

Family Court Judgement
Carmarthenshire Council have been in the news again following the publication of a damning judgement from the Family Court. The case centred around an 8 year old child and whether or not he should be returned to the care of his mother, the council and the appointed guardian were opposing the move. The council lost the case and came under scathing criticism from the judge over the quality of both their written and oral evidence.

The judgement is well worth a read. Evidence from one "so-called expert witness", was simply theoretic and should never have been admissible. A 44-page statement from one social worker was described by the judge as "swathes" of "rhetoric and generalisations" and "inconsequential, trivial and insubstantial".

The judgement can be read in full here

Swansea Bay City Deal
Full council met last Wednesday for their monthly meeting and quietly nodded through the legal framework for the City Deal. Bearing in mind that the council is already £400m in debt, no one questioned the unknown level of borrowing which will required, or if it was affordable, or whether there were contingency plans should the mysterious investors go bust, or pull out; or, well, anything much at all really.

As chief executive Mark James is leading the whole thing, with Emlyn Dole as the mouthpiece, rebellion, or anything more that a polite enquiry was always going to be unlikely and Mr James, along with the finance director, was given extended delegated power not to trouble the pretty heads of councillors with the finer details. To be honest I'd err on the side of caution when it comes to Mr James and documents... Linda Rees Jones, Carmarthenshire's Monitoring Officer and the chief executive's legal protector is also, we learn, the Monitoring Officer for the City Deal. You may recall that Carmarthenshire's internal legal advice was once famously, and accurately described as 'cavalier' and 'incompetent'. It most certainly still is.
What could possibly go wrong?

The Agreement now has to be approved by the other three councils; Swansea, Neath Port Talbot and Pembrokeshire. I hope their councillors take a slightly more 'risk based' approach to what is, essentially, a very expensive PFI scheme. After all, it was only two weeks ago that Emlyn Dole said that "services have now been cut to the bone, and now it is almost impossible to safeguard our frontline services".

Meanwhile, down at the Delta Lakes swamp, the planning application (by Arup, on behalf of the council) for the Mark James 'Wellness Village', part of the City Deal, is not going quite according to plan with NRW threatening to object to the application unless their concerns are addressed. These concerns include "requirements for flood risk, protected species, designated sites, drainage and air quality and conditions on geoscience, landscape and pollution prevention." Which covers just about everything.

The site, which is contaminated, partially on a flood plain and part of Llanelli's creaking sewage system, is directly adjacent to several designated sites; Carmarthen Bay and Estuaries SAC, Burry Inlet Special Protection Area (SPA) and RAMSAR, Burry Inlet and Loughor Estuary Special Site of Scientific Interest (SSSI), Pyllau Machynys SSSI and Pwll Lagoon SSSI.
Nothing is insurmountable of course, if you throw enough taxpayers' money at it, or, as in the case of the council's usual preferred option, deny all and carry on regardless.

Another project, Yr Egin 'cultural hub' in Carmarthen is now complete, it is not known how much has been paid out by the council or if there are any ongoing costs. We do know though that they paid £110,000 per acre for 19 acres of land for the Carmarthen West Road to enable the development, and that S4C, the flagship tenant is having trouble tempting its staff relocate to the wild west.
It's probably only a matter of time before the council starts renting office space...

Digital divide
Three and a half years ago Carmarthenshire councillors voted to go 'paperless' and have the reams of agendas, minutes and documents delivered electronically. iPads and software were duly purchased at considerable outlay and ongoing cost, and provided to all 74 councillors.

A report to the quaintly titled Democratic Committee last Monday, see here, revealed that, after three and a half years, only four councillors had actually gone 'paperless'. The rest, we assume, are either still working out how to turn their tablets on, given them to the grandkids or becoming Candy Crush experts. There had been 'hiccups', apparently.

I don't think there are many outfits, in this day and age, public or private, which continue to use small forests of timber, buckets of ink and eye-watering postage costs to impart information to their organisation. Apart from Carmarthenshire Council.

Carmarthen West Development
As mentioned above the Council have been shelling out a small fortune to progress the Carms West development of 1200 homes and the associated Carms West Link Road. One application, for around 250 homes, originally submitted in 2013, was, despite numerous objections including lack of demand, approved in February 2017 (See my post here which gives further background) but this was conditional on the completion of a S106 agreement. Presumably that has now been agreed as the decision notice has now been released.
The developer, Carmarthen Promotions Ltd is, oddly, based in Norfolk with a Lord, no less, as one of the Directors. The last published accounts indicate a loss of £252,000 in 2016/17. What I find odd is that, according to Companies House, as of the 6th June this year the council now have a legal charge over the company on the land. The company already has a bank loan of £1.6m secured on the land and there are two further legal charges which have priority over the council.

The council's legal charge is either connected to the S106 agreement or is security for a loan. If the council have given Carmarthen Promotions Ltd a loan it would be interesting to know why, how much, and on what terms. If it's part of the S106 then any return from the development is likely to take a very long time, if ever. Incidentally, in 2016 the same directors set up another company, Carmarthen Promotions (North) Ltd which is also running at a loss.
Curious.

Public Audit
It's nearly that time of year again when the law allows you to take yourself down to County Hall and inspect the council's accounts and "all books, deeds, contracts, bills, vouchers and receipts relating thereto", well, those that have escaped the Presidential Shredder anyway... The inspection period runs from the 5th July and the 1st August.
Unlike English councils, the requirement to publish monthly spending details over £500 doesn't apply to Wales and this puts the interested public on the back foot. In Carmarthenshire we are left with trying to decipher generalised quarterly budget reports or going through tortuous freedom of information requests. With the growing profusion of arms-length companies and outsourced services even these avenues are becoming blocked.

So, if you have an area of interest, or even suspect there's been some creative accounting or an unlawful payment or two, the details of how to exercise your right to inspect can be found here.