Stephen Gilbert
Main Page: Stephen Gilbert (Liberal Democrat - St Austell and Newquay)Department Debates - View all Stephen Gilbert's debates with the Leader of the House
(12 years ago)
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John McDonnell (Hayes and Harlington) (Lab)
I wish to draw attention to the mismanagement and—some fear—worse of contracts by Hillingdon council and to call on the Secretary of State for Communities and Local Government to send in commissioners to take control of the council, clean up its affairs and restore confidence in local government in my area. For some time, I have raised in the House my constituents’ concerns about the administrative competence and probity of Hillingdon council, but recent events have confirmed the need for more serious and urgent action.
The recent background is as follows. Two years ago, I learned of Hillingdon council’s proposal to demolish a residential home for the elderly in my constituency called Triscott House and to rebuild it as a modern elderly care facility. The elderly residents were decanted to other establishments, and the new facility was to open in September 2011, but the unit was not ready. Many of the elderly people who had been allocated a place in the new residential home were promised that there would be only a short delay. Ten months later, in July 2012, the home was still not open, and I was contacted by the families of the elderly people who were promised a place. The situation was extremely distressing. A lady in her 90s, with all her belongings packed in packing cases, was waiting to move, in tears. She had been promised, month after month, that her move was imminent. Others in their 80s and 90s were equally upset at the delay. I made representations to the council on behalf of them and their worried families. I, too, was promised that the situation was being resolved and each month told that the move was to take place. Eventually, the new facility opened, after a 14-month delay and dreadful distress caused to my constituents.
Rumours were flying in the area about the delay, and I called for an independent investigation into the catastrophic failure of the council to deliver the new facility on time. The council refused. There was coverage in the local press, and after that I was sent anonymously information on the cause of the delay. Information is difficult to retrieve from Hillingdon council because the administration places any reports that expose failings or poor administration—or worse—in the secret element of its cabinet meetings. It argues that this is done on grounds of commercial confidentiality, but it is certain that it is to cover up incompetence and possibly worse. In this case, the information I received confirmed that the delay to the new elderly care facility was because of a dispute with the contractor for the project.
The contractor was a company undertaking another contract for the council that required additional expenditure. The contractor was told to load the cost of that additional work on to the bill for Triscott House, the residential home for the elderly, and then told to charge the amount as “design fees”. Effectively, this was laundering money from one contract to another to the builder. Other works were undertaken by the contractor on other sites, it appears without contracts, and also charged to the Triscott elderly care home account, again as design fees.
Major contracts are approved either by the leader of the council or a cabinet member, and the responsibility for overseeing the performance of council officers in relation to such projects lies with the leader of the council or cabinet members. The question I have been asked by residents is what those people were doing when all this was going on.
After the exposure of the Triscott House fiasco in the local press, the floodgates opened, with information being sent anonymously or by residents about other council contracts. The information revealed that the new swimming pool leisure centre, recently constructed in my constituency at a cost of £30 million, began construction without a contract, only by exchange of letters of intent. Now the centre has sprung leaks, and without a contract the council is exposed to the cost of repairs.
Five years ago, and again in 2010, I raised the disgracefully poor performance of the council contractor with regard to the repair and refurbishment of Avondale flats in my area, which resulted in one of my constituents, Mr Bernard Fagan, being injured and then compensated by the council. It has now been revealed that, as we suspected, there were irregularities in the award and administration of these housing maintenance contracts. They do not comply with council standing orders.
Complaints have repeatedly been made about the delays to adaptations funded by the disability facilities grants. Concerns have now been raised that there were irregularities in the process for awarding those contracts. Another Hillingdon resident has contacted me because he has challenged the council over its expenditure of £1.17 million on three consultants since April 2010, which the council legal services department has now confirmed was without tendering, with no specification for the works and with no contracts.
I have raised these issues with my local councillors in the ward I live in, but they are unable to respond to me as virtually all these issues have been forced on to the secret part of the cabinet agenda by the ruling councillors. My local councillors have been threatened with the criminal law if they discuss matters with me. However, my ward councillor has informed me that he has written to the chief executive, the borough solicitor and the leader of the council to urge that the district auditor and the police are now brought in to investigate these activities. So far he has received a truculent reply from the leader of the council, claiming that it is an attack on staff. It is not an attack on staff: it is an attempt to hold councillors and senior well-paid officers to account.
The situation has gone beyond anything that is acceptable. Up to £50 million of work and contracts are now associated with irregularities in Hillingdon. My constituents and local tax payers are suffering now and cannot wait any longer for redress. At meeting after meeting, residents are alleging backhanders, brown envelopes and various fiddles. I have no answer for them. We need action now, and that is why I am urging the Secretary of State to send in commissioners to clean up this mess. Before I came to this place, I was in local government for 20 years. I have not seen anything on this scale since the 1980s, when some activities caused so much concern in local government. There may be reasons why contracts were not awarded and why a £30 million swimming pool was done with a letter of intent. If those reasons are valid, then fair enough. However, my understanding is that they have opened up the council to real risk. The scale of mismanagement is appalling.
People know me in this House for my independence of mind. I do not care whether this council is controlled by Labour, the Conservatives or Liberal Democrats. If this was happening under any political administration, I would be saying the same thing. We need action now. We cannot rely on the existing administration to tackle these issues. That is why I think the drastic step of the Secretary of State sending in commissioners to clean this stable out, which I have never called for before anywhere, is absolutely essential if we are to retain any confidence in local government and local administration in my community.
Stephen Gilbert (St Austell and Newquay) (LD)
It is always a pleasure to speak in these end-of-term Adjournment debates. Their value has just been aptly demonstrated by the hon. Member for Hayes and Harlington (John McDonnell), who has sent a chilling note through the Chamber, and a warning call that I hope the authorities will listen to. It is always a great pleasure to hear my hon. Friend the Member for Southend West (Mr Amess), with his tour de force of constituency issues. Sadly, I can take no pleasure in having to raise in this House access to flood insurance and support for flood-hit local authorities yet again.
Last night, we saw torrential rain across the south-west cause considerable damage to businesses and homes, and disruption on many key travel routes. In my constituency, the villages of Par, Bugle, St Blazey, Gorran Haven and Mevagissey have been flooded again. Across Cornwall, other communities in Polbathic, Altarnun, St Keverne and Gunwalloe have all been hit too. This is not uncommon for the people of Cornwall—just four weeks ago we were hit with flooding. The House may remember that shortly after the general election in 2010 Cornwall was hit with serious flooding too, occasioning the Prime Minister to join me in some of the communities I have just mentioned.
I would like to take this opportunity to extend my thanks and give praise to the work of the emergency services overnight—the firefighters, the police, ambulance workers across Cornwall and the south-west, and the 100 Cornwall council staff—who were out all night helping people to move to safety, and trying to minimise the damage to properties and to life. However, we are not out of the woods yet. The Met Office and the Environment Agency are predicting continued severe weather in the south-west. The EA currently has 19 flood warnings and 52 flood alerts across the region—stark warnings about large swathes of the south-west being at imminent flood risk due to the saturation levels already in the ground.
It is clear that we cannot always build flood defences that will protect people against all eventualities. I am sure that if the hon. Member for Brent North (Barry Gardiner) was in his place—he is an assiduous campaigner on environmental issues—he would agree that with climate change we will see increasingly unpredictable weather across our country for years to come. However, we in this House should be able to ensure that everybody has access to insurance when the worst happens. That sounds very simple, but the Government, flood groups and insurers have been grappling with the problem for a long time and seem no closer to resolving it. The typical cost of flood damage to a home is approximately £30,000, and approximately 200,000 homes are at risk of flooding.
The last Government agreed a statement of principles—a five-year agreement—that meant that flood insurance had to be included in house insurance. It was a worthy goal and a good step forward, but it was not perfect. For example, it did not apply to homes built after October 2009 and, more importantly, made little attempt to help those in the severest flood-risk areas, which was bewildering, frankly. Despite that, however, that statement of principles was a worthy effort to ensure that when flooding hit a community, people were able to rebuild their lives. Unfortunately, it expires next June, and at the moment the House is yet to see any concrete proposals for how this important issue will be dealt with after that point. Communities across the country, including those that I represent, are already struggling to get affordable flood-risk insurance, even though it might technically be available. I urge my right hon. Friend to look into this issue and ensure that the proposals come forward in a timely way and can be adequately debated by the House.
I have raised before my concerns about the Bellwin scheme—the threshold at which central Government support comes in to help local authorities hit by flooding. In Cornwall council’s case, the existing Bellwin scheme has a threshold of 0.2%, which is currently £1.41 million, as the amount it must defray before any assistance is forthcoming from central Government. This scheme is outdated and does not seem to make any allowance for the new unitary authorities. If Cornwall still had a two-tier local authority system, that threshold would be just £58,000. That, coupled with tight rules limiting funding to the additional costs incurred in dealing with the immediate emergency only, basically means that the likelihood of an emergency incurring eligible expenditure greater than the threshold is now significantly less than if the two-tier were still in place. We need to modernise and update the Bellwin scheme. Cornwall is also a fire and rescue authority, but the scheme does not factor in those parts of the country where the principal local authority is on a unitary basis and also the fire and rescue authority.
I turn to the final reason why I would like my right hon. Friend to investigate whether the Bellwin scheme can be reconsidered. Why is the dedicated schools grant used in the calculation of when a threshold is reached by a local authority? It is another instance of where the Bellwin scheme has not kept pace with the change in how local government across our nation is administered. At the moment, Cornwall council estimates repair costs of £2.5 million on the highways alone. When flooding occurs, it is not only a threat to life, but it destroys homes, wrecks businesses and leaves a significant clear-up operation in its wake, and that operation often falls to the local authority to fund.
The biggest Christmas present for all those across the country facing flooding risk would be to ensure that, as we go into next year, flood insurance is available and affordable, and that, when floods hit, local authorities have the support they need from the House and the Government to ensure that the clean-up can happen in the swiftest possible way.
Guy Opperman (Hexham) (Con)
Northumberland has much that it could teach the rest of Britain. My constituency is home to a vast number of civic groups, charities and volunteer organisations and people who give up their time to get involved, help their communities and improve people’s lives. They are passionate about the place in which they live. From the team in Tarset who organised the first oil-buying groups, pioneered a bastle trail and created the famous Murray henge, to Joan Russell, who runs her fantastic community allotment in Prudhoe, and Tom Martin, who led the creation of a community orchard in Wylam, there is a real sense of engagement, of getting involved and of local people creating the community they want.
Of all the places in the country that would engage in the concept, spirit and actuality of localism, this is the place. Indeed, when the previous Labour Government wanted to get rid of the district councils and move to a single unitary authority, the people robustly said that they would like to keep Tynedale and Castle Morpeth. The Labour Government famously held a consultation, complete with referendum, lost it and pressed on regardless. As a result, we now have Northumberland county council in its current form.
The Conservative party manifesto in 2010 promised specifically that
“people in each neighbourhood will be able to”
choose
“what kind of development they want”.
In 2010, I found that that commitment to localism resonated loud and clear with local voters, who wanted a better kind of local politics. Very rarely if ever do Government know best on local issues. For the first time since Queen Victoria sat on the throne—not dissimilar to you, Mr Deputy Speaker—this Government’s Localism Act 2011 saw real power going from Government back to the people, putting into reverse gear 100 years of centralisation. My simple phrase is: “Trust the people”. The Localism Act 2011 did just that.
Planning is the key aspect of the 2011 Act. It is most welcome for its transformation of the process that people have to deal with. We ripped up the previous top- down regional spatial strategy, which was a Westminster-enforced, target-driven system, which in any event failed to produce any houses, with the lowest house building since 1929. To deliver the change, a local development plan is required from each local authority. The plans will be crucial to deciding planning applications. The Government guidance is that local plans must be in accordance with section 20 of the Planning and Compulsory Purchase Act 2004 and the national planning policy framework. The only mandate is that the authority must complete a plan. Already, 48 local plans have been adopted since May 2011, and more than 65% of councils in the country have published a plan for public consultation. Those are accompanied by more than 100 smaller neighbourhood plans. The vast city of Manchester, for example, went from start to finish in less than 18 months, finishing in the summer of 2012.
Sir Bob Russell (Colchester) (LD)
These are difficult times for local councils, and with further financial constraints confronting them, I pay tribute to the councillors of all political persuasions and officers who find themselves in ever more difficult situations. This is not an experience that I faced as a council leader, but one thing I do understand is the importance of ensuring that public money is not wasted or used for purposes that are inappropriate for a local authority or ultra vires under local government legislation.
In the hope that the Department for Communities and Local Government will pursue the matter with vigour, I bring to the House’s attention the extraordinary situation involving the former leader of Essex county council, whose exploits have been much publicised in recent weeks in local newspapers and on local radio, and in some national newspapers. It has been revealed that, from March 2005 to January 2010, he spent £287,000 using the council tax payer-funded credit card that he had been issued. That equates to a rate of more than £1,000 every week for five years, all tax free. Items of expenditure included 62 overseas visits to such places as Uganda, New Zealand, China and the United States—not places normally associated with the local government activity of Essex county council—often accompanied by council officers and councillors.
I can now reveal, thanks to a Freedom of Information Act request that I made to the council, that the same leader first had a credit card issued in “mid-2002”. On the assumption that his spending pattern in the years from 2002 onwards was the same as that in the five years following the first published item on 9 March 2005—£89.21 for a lunch at the Barda restaurant in Chelmsford for the leader and an unnamed county councillor—it is likely that the leader’s credit card spending to fund his lifestyle of expensive tastes in the UK and overseas, paid for by Essex council tax payers, was in the region of £450,000. His last entry, funded by the good people of Essex, was on 27 January 2010 when, with an unnamed county councillor, he billed £77 for lunch at the Loch Fyne restaurant in Chelmsford. Last week, a motion was put forward at a meeting of Essex county council in respect of the credit card bills of the former leader, who resigned from the council in 2010, but it was not agreed.
I can perhaps best describe what happened by quoting distinguished journalist Mr Simon Heffer, who is a council tax payer in Essex, from his column in the Daily Mail of Saturday 15 December:
“Tory-controlled Essex County Council decided this week not to sue their disgraced former leader…for the £287,000 of ratepayers’ money he spent flying around the world with cronies and dining in style. This is a rash move. In four and a half months, the council is up for re-election. I am appalled that Essex Tories have such a cavalier view of financial accountability. Anyone who votes to put them back into office next May is mad. Did they take this view…because some of them, too, have things on their conscience?”
Simon Heffer may say that; I could not possibly comment.
In fairness, the current leader is a breath of fresh air. He was issued with a credit card on taking over in May 2010, and it was cancelled in August 2011 having never been used. That shows how much the previous leader abused his position and took Essex council tax payers to the tune of circa £450,000 to fund his expensive tastes and lifestyle. It is also fair to say that a new broom at county hall has ensured that new procedures will not allow such a situation to happen again, but it is not enough to clear up the stables—although pigsty might be a more appropriate description.
What has happened needs to be investigated. As the council is not prepared to have an independent investigation—I believe that is important; otherwise all county councillors will be tarred with the same brush—it must be for central Government to do so. Unless there is an independent inquiry, the stench will remain. That is not in the interest of Essex county council, its councillors and officers—a whitewash is not acceptable.
It is difficult to believe that the former leader was able for eight years to live the life of Riley paid for by Essex council tax payers, without others knowing. After all, many of the credit card bills refer to the leader being accompanied more often than not by officers and councillors. Why did the internal audit not notice the monthly credit card payments and ask questions? Why did the external audit not notice and ask questions?
On 17 October last year, a council spokesman said:
“All employee expenses are subject to audit and public scrutiny”—
but not, presumably, those of the former leader. How is it that the entire finance department and line management within it, leading in due course right into the office of the chief executive, did not notice and draw attention to it? Or is it the case, as has been put to me, that some people did try, but that there was a climate of fear and bullying at county hall? People were afraid to speak out for fear of losing their jobs. This attitude was not confined to the leader, as some councillors and some senior officers were involved. Only an independent inquiry can get into that barrel of apples to identify any rotten ones that are still in place.
I have been advised by a lawyer that he is prepared, at no personal cost to himself, to look at the paperwork and help draft a claim against the council and its officers for an apparent, and I quote,
“breach in fiduciary duty to Essex ratepayers who are owed the opportunity to see these matters rectified.”
It is said that the credit card records from 2002 to 2005 have been destroyed, but I believe the council’s records should still show the total credit card sums claimed by the former leader, even if the individual items cannot be listed. Perhaps the credit card company’s records exist, which an independent inquiry could look at.
The roll-call of countries visited by the former leader between 2005 and 2010 could well make him Britain’s most travelled politician. At 62 visits, that is probably more than the Prime Minister and Foreign Secretary, and it is certainly not what one would expect of the leader of a local authority. Usually with at least one officer, his Cook’s tour reads as follows: United States of America, eight times; Belgium, 15 times; Poland, twice; Croatia and Sri Lanka, twice; Cyprus, Bulgaria and Austria, three times; France, three times; Slovakia and Italy, three times; China, six times; Hungary, Germany, Holland and India, three times; Australia, New Zealand, Uganda, Hong Kong and Finland, twice; Vietnam, Albania and the Bahamas, ending with his last overseas trip to Canada. In December 2005 Essex council tax payers funded the leader, a councillor and an officer to attend the winter Olympics in Italy at a cost of circa £1,400.
Perhaps an example of the leader’s extravagance is a visit he made, accompanied by a council officer, to Hungary on 17 May 2006 for a one-day meeting described as the “First Assembly of European Regions”. Putting to one side the fact that the wonderful county of Essex is not a region, which begs the question why he was there in the first place, the visit was stretched out over a total of five days and involved staying in three separate hotels—two in Budapest, which is 230 km distant from where the one-day conference was held, one of them five-star, with the other described as “art-nouveau extravagance” and “the World’s most famous spa”—having expensive meals at restaurants and hiring a car. This is a grand total, including flights, of £1,530.
Other interesting entries, completely contrary to local government rules and expenditure legitimacy, relate to the council leader using his credit card to pay for attendance at Conservative party conferences for himself and up to three officers of Essex county council, including their travel and hotel accommodation costs. One of his popular watering holes was an establishment in Chelmsford called Muddy Waters where in December 2007 he treated county officers to a meal, paid for by council tax payers, which came to £736. In July 2008, he claimed £42.94 for a Little Chef breakfast. I know that the Little Chef Olympian breakfast is good, but I think customers can get four for the price he paid, as he pigged himself into some sort of record book. Another interesting item is the £327.50 he paid for
“gifts purchased for Transformation Awayday”
from the Crooked House gallery in Lavenham, Suffolk.
That list surely in itself comprises an appalling betrayal of the people of Essex by the then leader of the council, but I must now refer to a further abuse. Throughout this period, the leader was also based at another establishment for which five full-time employees of Essex county council had security passes. A sixth, listed as his secretary in the directory of this other establishment, was actually based at county hall, and taxpayers paid all the office costs. When not on council business, the leader was frequently chauffeured here and there at all times of the day and into the early hours by a car and driver provided by the council. The five council officers were providing services that were not part and parcel of the leader’s position with Essex county council, but the council tax payers of Essex were paying all the costs. It is difficult to estimate what they amounted to over what was an eight-year period.
Stephen Gilbert
Does my hon. Friend agree that these outrageous claims must be properly investigated?