Reporting Back From The Bimonthly Bunfight

Last Monday saw another knockabout Council meeting. We discussed serious issues; the Icelandic bank deposits, SEN transport, how the Council communicates with local residents amongst others. However, there is no decision making and it was apparent that the LibDems are too busy looking forward to elections in 18 months time to address the issues head on. Instead we were treated to some political grandstanding that bore little relation to the matters at hand. I guess this is what happens when a small number of LibDem councillors keep the decision making in their own hands, barely bothering to throw any scraps to their backbench colleagues. Their view is that by spending a few thousand on no smoking signs in Beddington playgrounds, residents will forgive them for the half a million wasted on the green garden waste fiasco and the inflation busting increases in council tax that they rely on us not noticing buried deep in our bank statements each month.

The video covers the salient points. One of the questions asked that I didn’t cover was about the Heritage lamp posts in Cheam with a LibDem councillor blaming Boris Johnson personally for the threat to their future. This did not take into account Boris’ personal attention to the matter after Steve O’Connell, local Conservative GLA member asked him a question in Mayor’s Question Time on my request. A conversation with people in Boris’ office opened up a new dialogue with the Council which looks like resulting in a satisfactory outcome for Carshalton and Cheam who are both affected by the same problem. Meanwhile, the Sutton LibDem MP has had his photo taken waving a petition that is yet to surface beneath a Cheam lamp. As a resident who wants to see Sutton change for the better, I’ll take action over showboating and empty promises any day.

The Iceman Cometh

The Iceman Cometh

I was talking to a member of my family after the demise of Icesave, the UK trading arm of Icelandic bank Landsbanki. He is self employed and asked a pertinent question that hasn’t been raised until now.

We know that individual depositors have been guaranteed their money back which is good. European legislation states that bank compensation schemes should pay out within 3 months which is also good.

However what about self-employed people that have set money aside to pay their tax bill? What happens if they haven’t been refunded their money by then? Will HM Revenue and Customs come running after them?

The answer seems to be yes. Shailesh Vara MP, Shadow Deputy Leader of the House, asked this very question to the Chancellor. A junior minister replied that you may be able to arrange an extension but will be charged a ‘competitive’ interest rate.

It is important to note that Shailesh Vara has exposed another bit of disjointed thinking by the Government. Landsbanki is only in administration not liquidation. There is a subtle but vast difference between the two, not least because the compensation scheme doesn’t even start until the latter occurs. The latest statement on the Icesave website explains that the process will start on or around November 3rd. If the Government pull their finger out, we might not need to get to the position when we see the effects of this problem. However, I’m a sceptical old Hector by nature when it comes to Government wheels turning. The three months won’t be up until 3rd of February if the process even starts on time. We’ll see.

NHS Snub Carshalton Residents

NHS Snub Carshalton Residents

Sutton & Merton NHS Primary Care Trust have delivered a blow to residents living around Carshalton Park by scrapping plans to build a new Intermediary Care Hospital on the War Memorial site, instead seeking to flog the land off for £2.1m.

For years, residents and ward councillors were promised faithfully that the land would be used for healthcare and their fears that it would be redeveloped were unfounded. Unfortunately those promises were hollow.

I have promised to keep residents up to date. Unfortunately, I found out about the sale, not from the PCT but from a Beddington councillor who had been informed at another meeting. I had smelt a rat when I saw the site strangely absent from the latest proposals for changes to healthcare in Sutton and Merton, Better Healthcare Closer To Home.

The proposals as a whole will largely benefit residents in the ward with the new Shotfield clinic in Wallington and rebuilding of part of St Helier hospital but Sutton will largely lose out to residents in Merton after their local MP spent well over £70,000 of taxpayers’ money on postage campaigning for her constituency. The Labour Government have rewarded her with the majority of the new facilities being in the north of the area covered by the Trust in places that I have only just recently heard of through my role as councillor, despite living here for all of my adult life.

The NHS will have to gen up on local strategic planning before trying to push through a major development. The parcel of land sits between a Conservation area and an area marked as low-density housing on strategic planning maps.

As we come close to the 90th anniversary of the end of the First World War, it is disappointing to think that a healthcare site built through public subscription might be replaced by a memorial to the fallen by identikit modern housing. I’ll keep you posted as I hear more.

Justifying our existence

Justifying our existence

Politicians have always tried to influence the behaviour of the electorate, whether by carrot or stick. I rarely like the stick approach and I can appreciate some efforts to attempt to nudge people in a certain direction, for example walking rather than driving, health prevention rather than cure etc. However, the ‘ban’ on smoking near playgrounds seems a typically worthy but pointless exercise that is endemic in local government.

I don’t smoke but I would have voted against the ban on smoking in enclosed areas as I am instinctively against banning things, believing people should be able to exercise choice. I get fed up with politicians treating people like idiots in one breath and then, should they be wanting something from them like a vote, feting them as having the collective wisdom of Solomon. Similarly, local Liberals cannot decide whether they want to do what their party name says on the tin or give in to an authoritarian craving – the second half of their moniker, ‘Democrat’ went by the wayside a long time ago.

The Liberal-dominated Beddington & Wallington Local Committee has agreed to spend £3200 putting up signs politely requesting people not to smoke in playgrounds within their area. There was considerable debate as to what the wording should be as it was felt that the familiar No Smoking sign was inappropriate because the ban had no legal backing. I humbly put forward my own suggested wording in the picture above.

Of course I’m not in favour of people blowing smoke in children’s faces whilst they play on the swings. However, the signs would have to be far bigger and much more wordy if they were to list all inappropriate behaviour by adults in a children’s playground. This smacks of politicians scratching around for something to do. Last year, a pot of ‘Public Realm’ money was introduced in Sutton where local committees could direct some spending in their areas. The total budget was £2m divided between the six areas. I fear that this is an attempt to be seen to be doing something rather than considering whether that £3200 could be better spent elsewhere. Councillors were surprised to hear that each sign would cost £300. They were told that there were four playgrounds and it would be best to put two signs in each. No-one challenged the chairman, who is an accountant by day, when she announced just before voting on the issue that the total spending was £3200. Remember that when you get next year’s council tax bill.

Iceland claims another scalp

Iceland claims another scalp

Whilst the investigation into Sutton’s Icelandic exposure gathers pace, another amazing story hit the press. The Audit Commission, which is the watchdog that looks into council spending, had put £10m of its own money with an Icelandic bank.

The Conservative chairman of Sutton’s Audit committee has convened an emergency meeting for next week to look into our own problems. The committee will consider a review into the matter conducted by someone with considerable financial experience within both local government and the private sector. However, Audit Committee only has a remit to look at the nuts and bolts of whether correct procedures were followed. Political accountability lies within a committee called the Scrutiny Overview Committee which is chaired by a Liberal Democrat. We have insisted that this is looked at as an urgent matter at the next meeting which is on Tuesday 28th October.

As an aside, the photo used to illustrate this post looks remarkably unblocked, thus clearly demonstrating that I sourced it from the Internet rather than taking my hard-earned cash outside with a camera:)

UPDATE: Sutton’s external auditors have changed this year…to the Audit Commission.

Call For Icelandic Losses Investigation

Call For Icelandic Losses Investigation

Sutton’s £5.5m exposure to the Icelandic meltdown was the big topic of discussion at last night’s Executive (Cabinet) meeting. You can see the statement that the Council have issued following UK based Heritable Bank’s slide into administration here.

Tim Crowley, Conservative Finance spokesman has several years of Treasury experience in the City. He addressed the cabinet at the meeting covering the following bullet points:-

  • We, as Conservatives, will do all we can to support any Government initiative to retrieve frozen monies – this is the important thing at this time.
  • Transparency in Sutton Council on this issue is of paramount importance because we are dealing with taxpayers’ public funds and we need to engender confidence and trust. This must be our next priority.
  • This is a reputational issue which could attract attention from other Council services, and potentially overshadow its work elsewhere.
  • As the Opposition we are concerned and disappointed with the public pronouncements in the national media of the Liberal Democrat Treasury Spokesman Dr Vince Cable who has described councils who deposited funds into Icelandic Banks and their subsidiaries as “unbelievably silly”.
  • We also note the comments of The Lord Oakeshott of Seagrove Bay on the Today programme who attacked Tory-lead Winchester Council which had deposited one million pounds into an Icelandic bank’s subsidiary, Heritable, two weeks before the crash as “blind and deaf.”
  • We are disappointed that the national Liberal Democrat leadership has decided to revert to crude political point scoring in a time of crisis, and that by doing so they are undermining laudable efforts by all concerned to get this taxpayers’ money returned.
  • We would prefer to concentrate on investigating under what circumstances we lent this money to Heritable Bank, and to ensure that proper procedures were followed.
  • To enable this to happen it is imperative that all paperwork relating to these transactions be secured and that an independent investigator be seconded to provide the answers to these questions.
  • As the Opposition, we would like hardcopies of all money market transactions that the Council has taken in the last calendar year and the weekly counterparty risk limits to enable informed decisions to be made.
  • Only by us having this paperwork will we be able to ensure that scrutiny process is carried out in comprehensive and competent way.

On the party political point, it is interesting to see Vince Cable quoted in the Telegraph as saying “In a crisis like this I don’t think people would warm terribly to my running around saying ‘I told you so'” The LibDem parliamentary finance team certainly did not warm themselves to Sutton’s Lead Finance Councillor who told Lord Oakeshott yesterday afternoon that his comments were less than helpful.

Although the Cable & Oakeshott double act is an interesting diversion, the matter is too pressing to concentrate on partisan politics. Tim is leading our investigation into the matter with considerable vigour. I am pleased that officers recognise the need for a robust and transparent enquiry. In the meantime, we will continue to support moves to get our money back in order to minimise Sutton taxpayers’ exposure to this. It is important to stress that this loss will not have an immediate impact. I know that some council employees have been spooked by reports of losses in other local authorities affecting payroll. This is not the case here in Sutton.