War of words over wi-fi plan (From Swindon Advertiser)
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War of words over wi-fi plan
9:10am Tuesday 15th December 2009 in News
COUNCIL leader Rod Bluh has been accused of breaking the rules and risking £450,000 worth of public funds after investing the cash in a private wi-fi company.
The comments came at last night’s heated scrutiny committee meeting, at the Civic offices, where councillors grilled cabinet members about why a decision to loan the money to Digital City UK had been announced in mid-November – without prior consultation.
Part of the meeting revolved around how Digital City UK – which was registered as a company in March 2009 – was able to gain the loan without it being tendered out to other companies.
However most of the discussion concerned the level of risk the council was taking with the money, which will help provide the entire borough with limited free internet access in April and Highworth going live on Wednesday.
Chairman of the committee, Coun Derique Montaut, said there had been a “great deal of concern” over why the issue had not been scrutinised previously.
He said: “Using £450,000 of public sector money in a deal with the private sector is open to risk. Do you think it is right to make this decision off your own back?”
Coun Bluh responded: “This is a commercial decision, in the new world in which we all live more and more commercial decisions will be made.
“An opportunity was put to us, and we were asked if we wanted to invest.
“As a result a whole set of meetings took place and we spent a huge amount of time on this.
“Had we not done it the way we did, the deal would not have gone through. We don’t do anything without considering the implications.
“But we would not have done this had it not been in accordance with council policy.”
Coun Bluh added that he had already received 12 inquiries about the project – including from the Republic of Ireland.
“This is a commercial venture that will bring commercial return. The only affects on capital budgets will be if this loan does not get repaid in full.”
However many members of the public and opposition councillors continued to press Coun Bluh, with Des Moffat (Lab, western) claiming that by not informing the authority’s 59 councillors they had broken the council’s constitution.
Coun Junab Ali (Lab, central) added that he planned to refer the issue to external auditors.
However, Stephen Taylor, the council’s director of law and democratic services, assured the committee that due process had been followed.
Members of the public also had a say asking whether an upgraded service with Digital City UK would cost as little as £7 which is currently on offer from a major internet provider.
Coun Peter Greenhalgh responded: “I am sure they will be offering comparable of better prices.”
Comments(68)
Grimwald
says...
9:28am Tue 15 Dec 09
'Coun Peter Greenhalgh responded: “I am sure they will be offering comparable or better prices.”
You are sure of what Councillor Greenhalgh? You mean that you are party to a £450,000 loan and you do not know how this company intends to trade and on what basis. You are a disgrace and if I have my way you and all Swindon Borough Councillors will be collectively responsible for the repayment of this loan if this company defaults.
It is good that Councillor Junab Ali had the guts to say he would be referring this matter to the district auditor.
Grimwald
says...
9:42am Tue 15 Dec 09
'Chairman of the committee, Coun Derique Montaut, said there had been a “great deal of concern” over why the issue had not been scrutinised previously.
He said: “Using £450,000 of public sector money in a deal with the private sector is open to risk. Do you think it is right to make this decision off your own back?”
Coun Bluh responded: “This is a commercial decision, in the new world in which we all live more and more commercial decisions will be made.
“An opportunity was put to us, and we were asked if we wanted to invest.
“As a result a whole set of meetings took place and we spent a huge amount of time on this.
“Had we not done it the way we did, the deal would not have gone through. We don’t do anything without considering the implications.
“But we would not have done this had it not been in accordance with council policy.”
Coun Bluh added that he had already received 12 inquiries about the project – including from the Republic of Ireland.
“This is a commercial venture that will bring commercial return. The only affects on capital budgets will be if this loan does not get repaid in full.”
However many members of the public and opposition councillors continued to press Coun Bluh, with Des Moffat (Lab, western) claiming that by not informing the authority’s 59 councillors they had broken the council’s constitution. '
This smacks to me of a leader who has become an Autocratic Mayor without offering himself for election as such. Councillor Bluh seems hellbent on avoiding the normal processes in Council and it would appear that only a very few people actually know any details. This renders the rest of the Councillors impotent, ineffective and superfluous and thereby a waste of money.
This new company would undoubtedly not be able to raise funds in its own right from the normal financial institutions so why is Swindon Borough Council offering itself as BBanker?
If this was such a stonking business opportunity I am sure we would not even have been involved, it would have happened anyway.
And what is Councillor Bluh up to in his new commercial world? - Building a Disneyland theme park with the Tabernacle Stones as a centrpiece?
Grimwald
says...
9:44am Tue 15 Dec 09
politicrat
says...
9:53am Tue 15 Dec 09
The implications of this loan are tremendous, whilst the porject will provide very little to the Swindon community as an essential service, it will force major cuts in others services that are deemed essentials by many and by any standards.
I am sorry to say this, but I do not believe that it is a wise decision at this stage and I certainly do not agree that it was the right way to make an investment decision with such a large pot of public money without proper consultation
THIS IS OUTRAGEOUS.
Mr Bluh is behaving just like the city bankers, gambling peoples money on futile and risky venture.
any petition for his resignation yet?
Grimwald
says...
10:03am Tue 15 Dec 09
politicrat wrote:But the good people of Dorcan have the opportunity to do something about this next May if the Tories are incapable of reigning in this Swindon 'Fred the Shred'. I don't know anyone who actually wants to vote Tory as a consequence of this mismanagement of our Council. It might not be long before they are decimated and back to where they were in the nineties. Not beyond the bounds of possibility.
Investing £0.5million into a private venture with less than 6months of full credit history, in this climate of economic recession and bugets cuts for the community, is Mr Bluh mad? The implications of this loan are tremendous, whilst the porject will provide very little to the Swindon community as an essential service, it will force major cuts in others services that are deemed essentials by many and by any standards. I am sorry to say this, but I do not believe that it is a wise decision at this stage and I certainly do not agree that it was the right way to make an investment decision with such a large pot of public money without proper consultation THIS IS OUTRAGEOUS. Mr Bluh is behaving just like the city bankers, gambling peoples money on futile and risky venture. any petition for his resignation yet?
politicrat
says...
10:08am Tue 15 Dec 09
Grimwald wrote:I long decided that as a protest against the greed and corruption of our political elite that I will be voting for small parties only in an attempt the break the current "Gentlemen" British politics into pieces and make it more accountable to people.
politicrat wrote: Investing £0.5million into a private venture with less than 6months of full credit history, in this climate of economic recession and bugets cuts for the community, is Mr Bluh mad? The implications of this loan are tremendous, whilst the porject will provide very little to the Swindon community as an essential service, it will force major cuts in others services that are deemed essentials by many and by any standards. I am sorry to say this, but I do not believe that it is a wise decision at this stage and I certainly do not agree that it was the right way to make an investment decision with such a large pot of public money without proper consultation THIS IS OUTRAGEOUS. Mr Bluh is behaving just like the city bankers, gambling peoples money on futile and risky venture. any petition for his resignation yet?But the good people of Dorcan have the opportunity to do something about this next May if the Tories are incapable of reigning in this Swindon 'Fred the Shred'. I don't know anyone who actually wants to vote Tory as a consequence of this mismanagement of our Council. It might not be long before they are decimated and back to where they were in the nineties. Not beyond the bounds of possibility.
politicrat
says...
10:08am Tue 15 Dec 09
Grimwald wrote:I long decided that as a protest against the greed and corruption of our political elite that I will be voting for small parties only in an attempt the break the current "Gentlemen" British politics into pieces and make it more accountable to people.
politicrat wrote: Investing £0.5million into a private venture with less than 6months of full credit history, in this climate of economic recession and bugets cuts for the community, is Mr Bluh mad? The implications of this loan are tremendous, whilst the porject will provide very little to the Swindon community as an essential service, it will force major cuts in others services that are deemed essentials by many and by any standards. I am sorry to say this, but I do not believe that it is a wise decision at this stage and I certainly do not agree that it was the right way to make an investment decision with such a large pot of public money without proper consultation THIS IS OUTRAGEOUS. Mr Bluh is behaving just like the city bankers, gambling peoples money on futile and risky venture. any petition for his resignation yet?But the good people of Dorcan have the opportunity to do something about this next May if the Tories are incapable of reigning in this Swindon 'Fred the Shred'. I don't know anyone who actually wants to vote Tory as a consequence of this mismanagement of our Council. It might not be long before they are decimated and back to where they were in the nineties. Not beyond the bounds of possibility.
Support_British_Manufacturing
says...
10:18am Tue 15 Dec 09
I presume this is not an interest free loan, if it is not what interest will the tax payer get in return should this be successful?
2 Hrs a day is a waste of time, I like most people have a broadband connection which is pretty good value, I also have a mobile broadband dongle should I need to use the Net out and about (and it works outside Swindon and Highworth).
“I am sure they will be offering comparable of better prices.” - What a great statement, do you think that Digital City UK can compete with the might of Virgin Media, BT, Sky and the rest of the Mobile operators with their Mobile Broadband packages. I don't think so.
Robh
says...
10:31am Tue 15 Dec 09
Synergie
says...
10:31am Tue 15 Dec 09
Grimwald
says...
10:42am Tue 15 Dec 09
I believe wanabe Justin Tomlinson wants this for his Abbey Meads ward so why should you deny him?
snoopers
says...
10:54am Tue 15 Dec 09
Quite a number of you bloggers and commentators shot me down in flames saying I was one of those Swindoners who was against change and growth.
It is YOUR money that has been spent with a company who is not even trading yet.
Let us not forget that SBC has a 35% share in this company so they have not just simply loaned our money, they have invested it.
I am sure that Mr Bluh has done his own due diligance. I would be interested to find out who the other parties are and what their history is.
If this project see's the light of day and is successful it appears to be giving a private company and unfair advantage , using taxpayers money in the market place. Your local PC repair man will be rendered jobless for a start and how many of them does Swindon have?
This is happening all the time. BT is charging all telephone line customers an extra 50p on their bills to fund broadband being put into rural areas. WIll BT be sharing its profits with us when they have had us fund the infrastructure which will allow them to charge each customer £10-£35 a month in broadband fees?
Good luck Highworth.
real -life
says...
11:02am Tue 15 Dec 09
More importantly why are we wasting all this money having 59 councillors for a town the size of Swindon? As for making Commercial decisions, the New Swindon Company and Crapita come to mind as 2 very big bad diecisions which are costing the tax payer £millions and will continue to do so as they give us crap services for massive profit for their benefit. If we do vote these idiots out next year what is to say we wont get worse in their place?
Grimwald
says...
11:11am Tue 15 Dec 09
It is Done Deal, that is why we are talking about it retrospectively and why Councillors are angry about it. It only remains to be seen as to whether or not it is a success and if it isn't what the consequences will be? I don't think Councillor Bluh will remain long if it fails.
swindon_mini
says...
11:45am Tue 15 Dec 09
Bobfm
says...
11:49am Tue 15 Dec 09
I ask this question is this the same Rikki Hunt who is on the board of the Swindon Strategic Partnership, and a Director of Smart Mobile Solutions UK, who sits along with Councillor Blur.
Ironically one the the SSP's guiding principles is 'Openness and transparency – of process and decision making'.
SockPuppet
says...
11:55am Tue 15 Dec 09
trustnopolitician
says...
11:57am Tue 15 Dec 09
He should also indicate details of any risk asessment which SBC carried out.
I fear the answer is likely to be none in both cases.
Whatever was "invested" would have been better spent on protecting essential services in Swindon. Wi Fi cannot remotely be described as an essential service.
The only organisation likely to benefit is the company with whom Mr Bluh and his ill advised Conservative colleagues have"got into bed" with
politicrat
says...
12:03pm Tue 15 Dec 09
trustnopolitician wrote:exactly! and this demonstrate that left right and centre our politicians are far from being Cincinnatus.
Mr Bluh should publish all details of due diligence undertaken in the project. He should also indicate details of any risk asessment which SBC carried out. I fear the answer is likely to be none in both cases. Whatever was "invested" would have been better spent on protecting essential services in Swindon. Wi Fi cannot remotely be described as an essential service. The only organisation likely to benefit is the company with whom Mr Bluh and his ill advised Conservative colleagues have"got into bed" with
The only interests they represent and serve are their own!
Time to rid our country of the Old Politics and start afresh with small parties.
trustnopolitician
says...
12:32pm Tue 15 Dec 09
A good start would be to get rid of all 59 Councillors.
How about a Swindon Council for Swindon People candidate next election.
Grimwald
says...
12:34pm Tue 15 Dec 09
SockPuppet wrote:I wonder what the legal status of councillors will be if it fails?
...wonder what the legal status is of not going out to tender....
trustnopolitician
says...
12:35pm Tue 15 Dec 09
A good start would be to get rid of all 59 Councillors.
How about a Swindon Council for Swindon People candidate next election.
DAVE0242
says...
12:35pm Tue 15 Dec 09
DAVE0242
says...
12:38pm Tue 15 Dec 09
Grimwald
says...
12:46pm Tue 15 Dec 09
politicrat
says...
12:54pm Tue 15 Dec 09
Grimwald wrote:This is exactly the sort of recall system that we need to have in place in the UK. There should be no reasons why we should suffer politicians incompetence until the next election.
oh for all out elections next May. Can we have a vote of no confidence in our Council or are we saddled with this lot for the next three years?
I believe that we should have town referendum on defined specific issues and yes there is always the possibility to have a council made up of ordinary citizens, in the like we see in courts with popular jury.
This is used extensively in Switzerland were direct democracy is applied to the letter.
snoopers
says...
1:01pm Tue 15 Dec 09
Casual Observer
says...
1:12pm Tue 15 Dec 09
Bobfm
says...
1:25pm Tue 15 Dec 09
As for the council voting system, it is argued that electing councillors in small blocks over a 3 year period ensures continuity of services. What it also does is ensure Swindon cannot have a change of council control for years on end. Even if all the seats in 2010 go to another party SBC will still be Tory controlled.
Support_British_Manufacturing
says...
1:30pm Tue 15 Dec 09
Casual Observer wrote:This article does nothing to convince me otherwise to what I already thought - Local Council = Corruption.
Jobs for the boys
politicrat
says...
1:38pm Tue 15 Dec 09
Bobfm wrote:I think that there are a lot of good ideas emaning from smaller parties because they do not come from the political establishment which has the sacrosaint mission to keep the status quo.
Exactly the system that UKIP have allocated for a number of years long before the LibLabCon, started talking local democracy. As for the council voting system, it is argued that electing councillors in small blocks over a 3 year period ensures continuity of services. What it also does is ensure Swindon cannot have a change of council control for years on end. Even if all the seats in 2010 go to another party SBC will still be Tory controlled.
Maybe it would be good to see UKIP among other small parties seating in Parliement forcing the LibLabCon to break from their centuries old Gentlemen Politics.
Now regarding the Council, as you have clearly said, having the council chamber voted in ina 3 years cycle, is hardly a recipe for Change and therefore there can never be a significant change of direction in the way we manage our Town.
As described above already, it is the Politicians wish to keep the status quo and so any idea of political change even democratically induced is not welcomed so goes the vicious circle.
Rusty23
says...
1:40pm Tue 15 Dec 09
Considering the damage they did to Swindon council some years ago it is good that there is so few of them.
Those of us in Oxfordshire really envy this forward thinking and hope it will arrive here soon enough.
Fantastic move by the towns leadership.
Support_British_Manufacturing
says...
1:53pm Tue 15 Dec 09
Rusty23 wrote:What if it goes sour? This is money out of the public sector, our money. It actually does not matter to you in Shrivenham but clearly matters to people who have been adding their comments here today.
You have to wonder which century you Labour councillors come from. Talk about out of touch. Considering the damage they did to Swindon council some years ago it is good that there is so few of them. Those of us in Oxfordshire really envy this forward thinking and hope it will arrive here soon enough. Fantastic move by the towns leadership.
Popcorn
says...
1:57pm Tue 15 Dec 09
Yes the town development has been affected, to quote the Labour Party Creed', because of the 'Global Recession'.
However Labour Council members ran this town for years that is why the town needs rebuilding to start with.
Support_British_Manufacturing
says...
2:07pm Tue 15 Dec 09
Popcorn wrote:"Call me Dave" will be in charge next year, so we will be all saved!
I am amazed at the attitude of some Swindonians. There is no doubt times are very hard. However criticising the Council for wanting to be at the forefront of this innovation is very shortsighted. Wills and Snelgrove were quick to run the scheme down. In view of the disastrous state our country is in, due to their Party's gross mismanagement of the Tax Payers money, they need to look closer to home when querying value for money. Snelgrove and Wills have, in my opinion, never put the needs of the people of Swindon before their Party Leadership. Hence we have no proper Post Office, Farepack customers are still out of pocket etc. etc. Yes the town development has been affected, to quote the Labour Party Creed', because of the 'Global Recession'. However Labour Council members ran this town for years that is why the town needs rebuilding to start with.
Grimwald
says...
2:16pm Tue 15 Dec 09
Support_British_Manuand God Help Us - please
facturing wrote:
Popcorn wrote: I am amazed at the attitude of some Swindonians. There is no doubt times are very hard. However criticising the Council for wanting to be at the forefront of this innovation is very shortsighted. Wills and Snelgrove were quick to run the scheme down. In view of the disastrous state our country is in, due to their Party's gross mismanagement of the Tax Payers money, they need to look closer to home when querying value for money. Snelgrove and Wills have, in my opinion, never put the needs of the people of Swindon before their Party Leadership. Hence we have no proper Post Office, Farepack customers are still out of pocket etc. etc. Yes the town development has been affected, to quote the Labour Party Creed', because of the 'Global Recession'. However Labour Council members ran this town for years that is why the town needs rebuilding to start with."Call me Dave" will be in charge next year, so we will be all saved!
You couldn't get a fag paper between either the Conservatives or Labour presently as we have Labour incompetence nationally and Conservative incompetence locally.
Bring on the minorities and people who actually want to do something for Swindon rather than massage their own egos and behave like autocrats.
LHO
says...
2:33pm Tue 15 Dec 09
mug?
says...
2:42pm Tue 15 Dec 09
Grimwald
says...
4:27pm Tue 15 Dec 09
mug? wrote:The question is Mug are you happy to bankrole it out of your Council Tax?
Bent councillors in Swindon? Never. I agree the scheme is half baked, just like GWH and the Swindon Town Centre Redevelopment. In principle it's a good idea. In practice, it is providing a limited service, inferior to what people already have access to, either at home, work, libraries and cyber cafes or from their mobile phones!
Grimwald
says...
4:30pm Tue 15 Dec 09
Bobfm
says...
5:51pm Tue 15 Dec 09
We have a so called independent SSP board member, involved in a project as a participant with a project that financially just not stack up. The majority of all inclusive TV/line rental/free calls/broadband and more runs to less than £10/month in some instance. How can a 2 hour wifi only package with an anticipated £10.month support fee hope to compete.
Aside from that I am hearing from my various contacts in the IT world that local companies were never even approached to become involved.
All in all this is a disaster waiting to happen. I believe I am right in saying that ventures of this nature are covered by the new codes of conduct of due diligence for councils. Do the majority of the councillors know they can be held liable if this goes wrong even 5 or 10 years down the line.
trustnopolitician
says...
6:45pm Tue 15 Dec 09
On reflection if(when) it all goes belly up would the councillors who voted for it refund all the "salaries" and expenses they have been paid to minimise the effect on the taxpayer.
trustnopolitician
says...
6:46pm Tue 15 Dec 09
On reflection if(when) it all goes belly up would the councillors who voted for it refund all the "salaries" and expenses they have been paid to minimise the effect on the taxpayer.
Dirty Barry
says...
8:05pm Tue 15 Dec 09
Lars
says...
8:48pm Tue 15 Dec 09
The Engager
says...
8:56pm Tue 15 Dec 09
Tantivy is due to be closed because of alleged structural problems and not being fit for purpose.
The Engager
says...
10:56pm Tue 15 Dec 09
LHO wrote:And will you have something to whine about if it all goes tits up and £450k of tax payers money is wasted ?
Let the council try and do something positive for the town and the whingers come crawling out of the woodwork
Who will you be holding accountable ?
code word: that-whom (very fitting)
itsamess
says...
10:56pm Tue 15 Dec 09
r more.
Alaughaminute
says...
11:35pm Tue 15 Dec 09
The Engager wrote:Yes I agree with you The engager how do they justify this service.
And what about ploughing £450k into 'Tantivy' a vital respite service for children with disabilities ?
Tantivy is due to be closed because of alleged structural problems and not being fit for purpose.
Hands up all those people in Swindon that already have internet in there homes or as part of a TV/telephone package? Hands up all those people that go to their library to use the FREE 2 hour internet accesses? Hands up all those people who really couldn’t give a monkeys for the internet? Hands up all those people that have access via some computer other than there own? Hands up all those people that would just like the internet to surf for ****? Hands up the people that doesn’t have the internet because they cant afford it but could if they didn’t pay so much in council tax? If you are not one of the above this could be translated into your own language. Lets face it if you want it, you already have it available after all this is 2009 not 1936 in the days of Tim Berners-Lee.
I think the money should have been spent on services that to be honest put Swindon to shame. I have a personal and professional interest in many of the services that Swindon offers and I can honestly say compared to other places we have a lot to learn. Rusty23 that goes for Labour, conservative and any other party that wants to step up to the mark
real -life
says...
8:15am Wed 16 Dec 09
I dont think we are criticising this, we are criticising the underhand way things are done around here. Councillors just like the sound of thier own voices and what they can get out of being a Councillor rather than actually doing anythnig useful for the town. But thats true of all politicians, so no change there then!!!! But why do we need 59 noses in the various troughs, surely this could be cut and save money? They dont do what we vote them in to do anyway, so why do we need so many?
Leslit
says...
9:18am Wed 16 Dec 09
He has instigated the knocking down of large swathes of the town, he has bought back the Tabernacle Stones at considerable cost and they are stored at no small cost at the Science Museum. He has now acted to fund a dubious commercial operation that could lose the Council its investment. How many Councils have ever undertaken a commitment with with a private company without discussing the details in full with its members, even in a Private and Confidential forum?
I have, this morning, received an offer of 20mb internet with free evening and weekend calls for £6.50 per month plus a £10.50 line rental or the internet only for £9.00 per using existing line connection. How does our investment, yes it is our money and over which we have no say, in this company offer a viable alternative when the majority of us already have and are committed to other providers?
and finally in these days of legal action if this does go wrong how many of the 59 Councillors are prepared to reimberse the Council Tax Payers of Swindon? If I were a member I would be taking legal advice, but is this all too late anyway because today it is supposed to start in Highworth?
Bobfm
says...
9:30am Wed 16 Dec 09
Has it been switched on next, when I we to see another article claiming how wonderful it is.
Bobfm
says...
9:58am Wed 16 Dec 09
I wish to lodge a formal complaint as to the manner that this matter has been 'forced' on the tax payers of Swindon. To be more specific.
1. A clear conflict of interest in entering into a commercial contract with a company set up by a member of the Swindon Strategic Partnership, Nikki Hunt.
2. The loaning of Council funds (themselves loaned) to a company without a credit history.
3. The Roll out of an inferior service that will not match others already in the market place, and thus will fail commercially.
4. Failure to put this out to tender.
I further request that the full contractual terms between SBC and Digital City be revealed, highlighting any penalty clauses to the detriment of SBC/Rate Payers.
5. Details of any indemnity insurance protecting rate payers.
If this information is not forthcoming I will refer the matter to the LGO.
Robert Feal-Martinez
Casual Observer
says...
10:17am Wed 16 Dec 09
Nostim
says...
10:54am Wed 16 Dec 09
Bobfm
says...
11:03am Wed 16 Dec 09
Robh
says...
11:27am Wed 16 Dec 09
I wait with bated breath for the excuses.
Bobfm
says...
11:27am Wed 16 Dec 09
Is this to become Swindons Climategate....Signa
lgate!!!!!
yagetmeblood
says...
11:27am Wed 16 Dec 09
Casual Observer
says...
11:31am Wed 16 Dec 09
Grimwald
says...
11:46am Wed 16 Dec 09
We might just find out what is going on then?
Bobfm
says...
12:23pm Wed 16 Dec 09
Alaughaminute
says...
1:57pm Wed 16 Dec 09
Leslit wrote:Could I opt out please and have £6.50 off of my council tax each month? I could then take a contract of my choice. My provider would then be responsible for the on going maintenance and responsible for the upkeep. Lets face with all the best will in the world this is not a service we need.
Councillor Bluh is a very nice man and a visionary, but sadly his record is not very good.
He has instigated the knocking down of large swathes of the town, he has bought back the Tabernacle Stones at considerable cost and they are stored at no small cost at the Science Museum. He has now acted to fund a dubious commercial operation that could lose the Council its investment. How many Councils have ever undertaken a commitment with with a private company without discussing the details in full with its members, even in a Private and Confidential forum?
I have, this morning, received an offer of 20mb internet with free evening and weekend calls for £6.50 per month plus a £10.50 line rental or the internet only for £9.00 per using existing line connection. How does our investment, yes it is our money and over which we have no say, in this company offer a viable alternative when the majority of us already have and are committed to other providers?
and finally in these days of legal action if this does go wrong how many of the 59 Councillors are prepared to reimberse the Council Tax Payers of Swindon? If I were a member I would be taking legal advice, but is this all too late anyway because today it is supposed to start in Highworth?
Grimwald
says...
3:31pm Wed 16 Dec 09
Bobfm wrote:Won't it all be too late by then Bob? have you spoken to your MP as well?
Grimwald, having investigated the complaints procedure for LA's, one has to give the Council first 'crack of the whip'. Rest assured, I think the Council know me well enough to know I will not let the issue rest. Interesting having tried to access Mr Hunt's own company, it seems all the web links are down.
Bobfm
says...
1:27pm Thu 17 Dec 09
abbotboy
says...
8:30pm Sat 19 Dec 09
Bobfm
says...
7:38pm Mon 21 Dec 09
Dear Mr Feal-Martinez,
Please find below a response from Cllr Bluh to your email of 16 December.
Douglas Chanda-Campbell
Conservative Group Political Assistant
and Staff Officer to the Cabinet
Swindon Borough Council
01793 463420
09.12.21 RB.dcc.RFM 5891
Dear Mr Feal-Martinez,
Thank you for your email of 16 December which came to me via our customer services section. Please accept this response on behalf of the whole council.
“1. A clear conflict of interest in entering into a commercial contract
with a company set up by a member of the Swindon Strategic Partnership,
Rikki Hunt.”
The legal position was reviewed by our Director of Law and Democratic Services. There is nothing in either the Swindon Strategic Partnership or the Swindon Strategic Economic Partnership constitutions to prohibit a member from entering into a commercial arrangement with the Borough. There is nothing new in the Council providing commercial services that compete with the private sector, for example through owning a bus company or providing sports and leisure services.
“2. The loaning of Council funds (themself loaned) to a company without a
credit history.”
The Council considered the overall risks on the merits of the benefits of the business case and the skills and capabilities that are part of Digital City (UK) Limited before agreeing to invest . We understand that for an innovative project that has never before been implemented in the UK there is a range of risks and we have taken into account the history and background of the partners of Digital City (UK) Limited.
3. The Roll out on an inferior service that will not match others already in the market place, and thus will fail commercially.
The service that Digital City (UK) limited are proposing to roll out is different from others in the market place. It is more flexible and we believe that it will be competitive. Ultimately, it is for the consumer of the service to decide whether the service is providing good value for money and this will be the ultimate test of success or failure.
4. Failure to put this out to tender.
There was no need for the Council to tender this in the market place as it has not entered into a contract with Digital City (UK) Limited for the supply of goods and services to the Council.
I further request that the full contractual terms between SBC and Digital City be revealed, highlighting any penalty clauses to the detriment of SBC/Rate Payers.
The contractual terms between SBC and Digital City (UK) are a matter of commercial confidentiality between the two parties. This is no different to the countless contracts and commercial agreements that the Council enters into and respects the confidentiality of all parties.
We can, however, confirm that there are no penalty clauses in the loan agreement and associated documents that impose or otherwise imply any penalties on Swindon Borough Council of any sort.
5. Details of any indemnity insurance protecting rate payers.
The Council’s insurance policy is based on a overall view of risk and exposure and these are covered by a corporate approach to insurance. We would not normally consider purchasing indemnity insurance on a project by project basis.
If this information is not forthcoming I will refer the matter to the
LGO.
As a resident you are open to apply to the Local Government Ombudsman, but in the first instance you need to exhaust all local appeals. If you have a formal complaint, please could contact our Director of Law and Democratic Service’s office on 01793 463013 to obtain the appropriate form.
Yours sincerely,
Rod's signature
Councillor Roderick Bluh
Leader of the Council
Given my complain went to the Chief Executive of the Council and not the Leader of the Council one questions why the Conservative group commented.
Captain Sensible says...
9:20am Tue 15 Dec 09