By Brian Norgate,
We are amazed here at Southampton that has just gone through the worst
industrial dispute of any Council which was only resolved at the 2012 election
where the Tory council lost control as the residents Southampton voted in
sixteen Labour Councillors that Barnet Council could use our Council as an
endorsement for the Capita contract.
I have to praise the former Southampton Tory administration
eight years ago for part of their negotiations with Capita, as they built in
"Breaks" in to the contract with Capita at years 3 and 7 and subsequent 5 year
terms, even though the performance is reviewed each year and errors corrected
for over/under charging", to my knowledge other Councils including Hampshire
County Council and Swindon Council have Break clauses in their contracts,
everyone would agree this is a pre requiste for any contract and standard in
contractual agreements.
Listening to the debate at
Barnet Council it comes across as either the Tory administration don't do detail
or don't comprehend or worse turned a blind eye to what the contract with Capita
is all about, to start at the begining its not
the Torys money, its the rate payers and as Abraham Lincoln said "poverty is not
having the ability to say No", from this all the financial information used with
public money should be openly declared. including all Capitas costings, I know
they claim to save 100million but so could anyone, you must remember that when
negotiating with public money you must get the best deal that would pass the
test of not knowing whether you were the council, Capita, suppliers or tax
payers that is a Councillors public duty.
Once you accept its public money there can be no hidden
accounting, "warts and all" said Cromwell yet at Southampton that doesn't appear
to be the case, most budget books tell you a story rather than the all the
facts, an account may have more money in than declared as only the declared
spend/income can be shown, Councillors asking for the books to be opened will be
sent a tag line "Before these figures are
disclosed to an external requester we should confirm with legal if this is
appropriate information to provide" or similar statement. now thats not British
justice or fair play is it, that is a form of poverty
for the people of
Barnet Capitas fees whether Professional, additional or standard contract should
be publically declared in the budget book and in the mid term finance statement,
exit strategies should have an accrual in the budget book should there be clause
in the contract for " Lost Future profits" and Costs for ending the contract
or
similar liabilities. so should revised budgets but I could provide a
shopping list. I was a trustee on the Railway pension scheme from 1998 to 2004
and all of these are known and in good negotiated contracts and thats what you
need to look for in Barnet.
I know many companies
took independent advice which was openly declared to the pension trustees and
pensioners so they could have faith in the contract and that they could not
potentially be held to ransom when the break in the contract was being
negotiated, our actuarries went through these details with a fine eye for detail
and its what i would have been expected to hear the Barnet cabinet speeches and
very concerned i did not. whats missing is the biggest liabilty you have to
worry about.
Yes people will ask
questions but fully declaring all the information they may later use in their
defence is their public duty, if they with hold information which is against
audit commission rules they potentially could be liable for the
losses,
Its interesting that
none of the other councils Capita negotiated with are mentioned several other
councils here in Hampshire have declined Capitas contracts whether thats in
part
or in full as Barnet
appearing to be going do, I have been involved with five local councils three
went with Capita and two declined.
The two Councils that
declined both agreed it was cheaper in house and the contract with Capita was
too complicated to get out off in making their decisions, even though things may
have changed recently i understand they have not.
working with the Southampton MP i raised the subject of
several budget issues Capita were involved with, two of these are the Exford
road Housing development and Meggeson Avenue housing developments in
Southampton, we did a Freedom of information request as they were not shown in
the budget book and were stalled sites, 260 propoerties
had tenants decanted
for regeneration and Council rent and rates was lost over a three year period of
�1.5million, but this wasnt the total losses and didnt include all the lost
revenue or Capitas costs, this is not how public money should be dealt with
"warts and all".
So 260 empty proerties in Southampton, our housing list
went from 7k to 9k in the same period, do you think everyone in Southampton
would give you the same recommendation surely if Southampton or any other
Council was in negotiations to take their options to use the Break in the
contracts you would have been told
Another contract with
was the refurbisment of kitchen and bathrooms on the Harefield and Bitterne
estates, I was shocked to see in the Council minutes that an overspend of
�109,000 in one year but thats all the breakdown the public got as to what had
gone wrong. surely you take out one bathroom/kitchen you fit one bath room
kitchen thats what you pay for so how come there is a retro fitting clause,
which ended soon after it became public knowledge
from this came strange stories about Southampton work being
done by Capita was done elsewhere, for example Lambeth Council who have a Capita
contract part of the work is done at Southampton and in the Barnet contract
some of their work is being done at Southampton whilst Some of Southamptons work
is being done either at Portsmouth or elsewhere,Capitas newest office
block is at Lakeside Portsmouth and during the negotiations its reported that
officers were told by Capita Portsmouth would be potentially be working on
Hampshire CC and other local councils as well as London councils, this is surely
the strangest part of the contracts, whilst i accept David Cammerons Governent
failures are down to the fact they dont do detail it must have spread to their
tory Councils.
I got a call from a
Portsmouth Council officer who said hows the Capita contract going at
Southampton as Portsmouth Council were in negotiations with Capita,
Surely I said the the Portsmouth Council officer as we sat on Portsdown
hill over looking Portsmouth - doesnt that worry you being told the work you
have a duty of care to protect is potentially going to be moved around the
Country and lose the local connection, during the industrial dispute at
Southampton i asked what figure the council estimated a month they had lost in
goodwill from the staff, an officer told me he would not be surprised if it was
half a million a month. this goes to the central point of these negotiations
because there are clauses potentially not declared in the contract as shown by
the need to contact the council legal department to see if all the figures could
be released.
so in the
Warts and all theory, if there was a contract point that if a certain
level of acvitivity rose above 50% for more than a couple of months the work
would be transfered back to the council officers to do, how can you tell if the
work is being done at Southampton or else where.
Capita do what they
say they are going to do and are a good socially responsible company as I have
worked well with them at Salisbury,I dont claim to know it all but its a very
different view here from Southampton as you were led to believe no ringing
endorsement, so unless you know the whole deal and fully comprehend the
implication the Bell tolls for you Barnet ignore it at your peril
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Guest Blogs are always welcome at the Barnet Eye
1
This week is “CAPITA WEEK” in the London Borough of
Barnet. Following the decision of the cabinet of Barnet Council to award CAPITA
a £750 million outsourcing contract, which will destroy 300 jobs in the
Borough, the local blogs are spending a week investigating the record of Capita
at other local authorites. 
