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9:30pm Thursday 17th December 2009
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A BUSINESS association is weighing up its legal options after accusing the council of giving an non-Swindon firm a ‘wi-fi monopoly’ in town.
The legal advice has been sought from the Federation for Small Business (FSB) on behalf of one of its Swindon members amid claims that at least five Swindon-based IT firms, with wi-fi capabilities, should have been given procurement opportunities.
Emma Faramarzi, chair of the FSB’s Swindon Branch, has said this is the second time in seven months the council has spent public investment money – totalling almost £1m – outside the town.
“Swindon council has assured local businesses under the business charter that we would be consulted - especially after £500,000 was spent during the Big Weekend fiasco,” she said. “That money should have been reserved to help businesses recover the recession, same as the £450,000 going towards wi-fi.”
The scheme, which is to offer free internet for two hours a day to the entire borough in April, and went live in Highworth on Wednesday, has been delivered by Rod Bluh, leader of the council – promising great benefit for residents and businesses in Swindon.
However, it was condemned by local IT companies.
Chris Watts, who owns Fourtiers, a Swindon based IT firm, has lambasted the council’s moves, questioning what due diligence was taken in the lead-up to taxpayers’ money being spent.
He said: “The council didn’t seek advice from any business experts or independent consultants to see if this was a wise decision.
“It appears the only people involved in this are a few councillors, and the businessmen who could make a huge gains from this.
“They’re hiding behind a wall of commercial confidentiality, however it’s standard practice to sign non-disclosure agreements in order to find out if the investment it sound – especially if like the council they have no experience.”
The 42-year-old said he would expect experts to question whether investing the money in a company that hopes to compete with giants like Sky, Virgin and BT was wise.
He added that experts would have ensured a number of details would be looked into – including how many people in town are signed up to Sky, something Coun Bluh has failed to disclose whether he knows or not.
He added: “Why is the council investing Swindon taxpayers’ money into an out-of-town firm – which has yet to file its first year accounts?
“From a legal aspect I would want to know whether the council has given a unfair advantage to Digital City UK, by gifting them free offices, permission to put up transmitters, nation and worldwide publicity, access into everyone’s homes, and half a million worth of investment to boot.
“I know many people who would love to put up boxes – but I clearly can’t without council permission – the market in Swindon is now skewed.”
Councillor Junab Ali (Lab, Central) has now officially referred the issue to the Audit Commission.
Councillor Rod Bluh's response
Rod Bluh, Swindon Borough Council leader, said: “I am disappointed and surprised that the Federation of Small Businesses has not embraced this scheme, especially as it will bring great benefits to
residents and businesses alike.
“Digital City has its registered office in Swindon and has already used one Swindon firm to help install equipment. Digital City is in active discussions with another Swindon company to provide long term business support and is talking with other local firms about different services.
“Talks are also ongoing with a young local entrepreneur who is coming up with a fantastic application that can be used on the network and it is envisaged that many of the 50 to 100 applications provided by the project will be developed by local businesses.
“As I outlined in scrutiny, this is not business as usual. Local authorities are going to be forced to make commercial decisions to maintain their budgets.
“The money invested in Digital City cannot be used to plug a gap in our budget or operating services, it forms part of a sum we would normally invest in order to get a better return for the council. The money investment in Digital City is in the form of a loan repayable with commercial rates of interest.
“As for whether due diligence was followed, of course we looked at the risks and exposure of the investment. There is absolutely no requirement for us to seek third party independent advice. We have successfully concluded many multi-million deals and transactions and, as a result, have built up a high level of legal, commercial and technical expertise. In fact, many other local authorities and public bodies actually come to us for advice. So in light of these deals £450,000 is very small and we did not see the need to pay consultants to advise us on this. Our financial management of the council has put us as the third best unitary in the country.
“We have never had a previous Wi-Fi partner. We have been looking at providing free Wi-Fi for the last three years as part of ‘Swindon’s Digital Challenge Proposal’ and it is only recently we have been approached by Digital City UK who had a technical partnership with aQovia. They came to us because they wanted to set up services to sell in Swindon and we invested in them, so we have not disadvantaged any other businesses in Swindon.
“Let us be clear on one thing, this is a huge opportunity for Swindon. Not only are there real benefits in terms of social inclusion, but our town has received global publicity because of this project. Swindon has been beamed out to Russia and China and we expect our economy to benefit from this exposure.
“Any companies that do feel they can support the project should send an email to info@getsignal.co.uk.”
the one from sevenhampton, highworth says...
10:12pm Thu 17 Dec 09
itsamess, swindon says...
10:16pm Thu 17 Dec 09
Bobfm, South Marston says...
8:07am Fri 18 Dec 09
Ian13, Swindon says...
8:11am Fri 18 Dec 09
yagetmeblood, says...
8:45am Fri 18 Dec 09
Ian13 wrote:So what your saying is that funds given by central government to SBC to assisting Swindon businesses through these hard times when banks are withholding loans was better used for a good old knees up in the park. Its no excuss. If i got a loan from the bank for a new car and then spent is all on drink, curry and good times, i might have someone to answer to. Yagetme
Emma Faramarzi, chair of the FSB’s Swindon Branch, has said this is the second time in seven months the council has spent public investment money – totalling almost £1m – outside the town. . “Swindon council has assured local businesses under the business charter that we would be consulted - especially after £500,000 was spent during the Big Weekend fiasco,” she said. “That money should have been reserved to help businesses recover the recession, same as the £450,000 going towards wi-fi.” . The Big Weekend was a very successful and high profile event for Swindon, locally and nationally. I am heartily sick of so much negativity about Swindon all the time.
Bobfm, South Marston says...
9:09am Fri 18 Dec 09
politicrat, swindon says...
9:28am Fri 18 Dec 09
yagetmeblood, says...
9:28am Fri 18 Dec 09
Al Smith, Swindon says...
9:42am Fri 18 Dec 09
Bobfm, South Marston says...
9:52am Fri 18 Dec 09
The Real Bev, Swindon says...
9:57am Fri 18 Dec 09
dc the 2nd, old town says...
10:01am Fri 18 Dec 09
politicrat, swindon says...
10:20am Fri 18 Dec 09
The Real Bev wrote:It is not so much the people at the council that are the problem (despite all their obvious imperfections)
Typical SBC yet again!!! what P...es me off is that most of you normal logical thinking people making your comments on this board could run this council like clockwork.....but we end up with a load of w…..s who don’t seem to have a clue!!! oh and by the way how much is this new fountain costing....oh and did SBC consult with local builders and designers on that too???? Mmmm me thinks probably not!!!!
itsamess, swindon says...
10:34am Fri 18 Dec 09
Bobfm, South Marston says...
11:23am Fri 18 Dec 09
carleah, swindon/eldene says...
11:47am Fri 18 Dec 09
DAVE0242, Swindon South says...
12:08pm Fri 18 Dec 09
Bobfm, South Marston says...
12:20pm Fri 18 Dec 09
stfcphil, Swindon says...
12:28pm Fri 18 Dec 09
carleah wrote:Oh dear. You are either a council employee, or the subject of a clear council oversight which allows you not to pay any Council Tax. If this is the best they can do then that is reason enough alone to get rid of all of them.
just give SBC a break as they do their best and ive seen alot worse in other towns so they are not all bad considering!
Bobfm, South Marston says...
12:34pm Fri 18 Dec 09
Red Man, Highworth says...
1:07pm Fri 18 Dec 09
politicrat, swindon says...
2:37pm Fri 18 Dec 09
Red Man wrote:you migt well be right, but thats not the point.
You never know the council could make a good amount of money out of this scheme. I live in Highworth and the free internet will be for 2 hours a day. Any time spent that is over 2 hours will cost the user a few extra quid. They may also bring out a monthy usage charge so if people want to replace there exciting broadband with this new council run scheme they can pay monthly for it. Lets not think about it as 450K down the pan but a investment that may well pay for itself.
bilzinCdS, Nerja says...
3:55pm Fri 18 Dec 09
stfcphil wrote:Might like to ask carleah just where she lives in the UK ?
carleah wrote:Oh dear. You are either a council employee, or the subject of a clear council oversight which allows you not to pay any Council Tax. If this is the best they can do then that is reason enough alone to get rid of all of them.
just give SBC a break as they do their best and ive seen alot worse in other towns so they are not all bad considering!
Robh, Swindon says...
4:06pm Fri 18 Dec 09
Robh, Swindon says...
4:11pm Fri 18 Dec 09
Grimwald, Swindon says...
4:22pm Fri 18 Dec 09
Robh, Swindon says...
4:22pm Fri 18 Dec 09
Grimwald, Swindon says...
4:25pm Fri 18 Dec 09
Grimwald, Swindon says...
4:28pm Fri 18 Dec 09
the one from sevenhampton wrote:That's a good start then? Doesn't bode well after all the hype!!
dont worry lads and lasses its not working all over highworth there are a lot of black holes queen's avenue is one so it aint as good as they would like you to think.
FSB Chairman, swindon says...
4:43pm Fri 18 Dec 09
Grimwald, Swindon says...
4:45pm Fri 18 Dec 09
Ian13 wrote:So Ian you are quite happy to spend £600,000 of identifiable funding on the 'Big Weekend' when we were told it was going to be cost neutral?
Emma Faramarzi, chair of the FSB’s Swindon Branch, has said this is the second time in seven months the council has spent public investment money – totalling almost £1m – outside the town. . “Swindon council has assured local businesses under the business charter that we would be consulted - especially after £500,000 was spent during the Big Weekend fiasco,” she said. “That money should have been reserved to help businesses recover the recession, same as the £450,000 going towards wi-fi.” . The Big Weekend was a very successful and high profile event for Swindon, locally and nationally. I am heartily sick of so much negativity about Swindon all the time.
Grimwald, Swindon says...
4:56pm Fri 18 Dec 09
politicrat wrote:I don't believe that all the Councillors are in this together at all Politicrat. From what I am told very few if any Councillors outside the 'inner circle' are privy to this deal and have tried without success to gain access to the details and are probably are as informed as the rest of us.
I am surprised to see the reaction of people on this issue. Where have you been for the last 10 years? Our Politicians (supposedly elected representatives) are gambling our money and profiteering from us, with total impunity. I hope that you all be smart enough at th enext election to realise that this is not a Party issue, left right and centre they are all in it together.
FSB Chairman, swindon says...
4:57pm Fri 18 Dec 09
Grimwald, Swindon says...
5:00pm Fri 18 Dec 09
carleah wrote:I don't think so Carleah, the worst should be the criteria here. We should only strive for the best in Swindon, mediocrity, which seems to be endorsed here is just not acceptable.
just give SBC a break as they do their best and ive seen alot worse in other towns so they are not all bad considering!
Grimwald, Swindon says...
5:35pm Fri 18 Dec 09
Bobfm, South Marston says...
5:37pm Fri 18 Dec 09
Wellfire, says...
5:41pm Fri 18 Dec 09
Bobfm, South Marston says...
5:43pm Fri 18 Dec 09
Grimwald, Swindon says...
5:46pm Fri 18 Dec 09
Bobfm, South Marston says...
5:52pm Fri 18 Dec 09
Grimwald, Swindon says...
5:53pm Fri 18 Dec 09
Grimwald, Swindon says...
6:00pm Fri 18 Dec 09
Bobfm wrote:Actually Bob I am reliably informed that at Scrutiny Councillor Edwards who chairs PAG was questioned about this matter. Question: why was this deal not referred to PAG and he gave the answer which was garbled and then said it didn't have to because it was ' a loan'
Wellfire most of the STFC issues were before my time, please cat you enlighten me and I am sure others as to Rikkii Hunts involvement. Ii may put in to perspective this situation. I have spoken to quite a high profile business man earlier today who's opinion of one RH cannot be repeated. Draw cash, security word. Love it.
Wellfire, says...
8:31pm Fri 18 Dec 09
Robh, Swindon says...
12:42am Sat 19 Dec 09
itsamess, swindon says...
8:51am Sat 19 Dec 09
Bobfm, South Marston says...
1:33pm Sat 19 Dec 09
Chris Watts, Swindon says...
3:13pm Sat 19 Dec 09
bilzinCdS, Nerja says...
5:29pm Sat 19 Dec 09
Fight-Corruption, British Virgin Islands says...
8:36pm Sat 19 Dec 09
Bobfm, South Marston says...
8:34am Tue 22 Dec 09
Robh, Swindon says...
9:40am Tue 22 Dec 09
leela, says...
1:41pm Tue 22 Dec 09
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anglopete, Old Town says...
9:54pm Thu 17 Dec 09
Alas, it wouldn't surprise me that the over-enthusiasm of being the first 'free' wi-fi town meant that the options weren't properly assessed. The catch here is that the free wi-fi will only be for 2 hours?
That seemed to have been missed out in the initial release, or did I miss something.
Giving free wi-fi is a good thing, but only as long as it is genuinely free and readily available 24 hours - not discriminating against people that work different hours.
Generally, I think this is a good concept, but the devil may be in the detail.
I am open in case I have missed something!