A FIERCE debate over how decisions were made to spend £450,000 of council tax payers’ money on the wi-fi scheme erupted at last night’s full council meeting.

Labour councillors accused the Tory administration of brokering the deal to provide a town-wide wi-fi network in secret and questioned whether the council should have considered other firms to deliver the scheme.

But cabinet members insisted all checks and balances had been carried out and maintained the council needed to find innovative ways to raise funds.

Coun Bob Wright (Lab, Central) called for more engagement with industry consultants to evaluate the loan given to Digital City UK, of which Swindon Council has a one third share holding, and what risk there is to the tax payer.

He said: “The Labour group is not opposed to wi-fi but it is important to look at how these decisions were made.

“I would like to have seen the same advantage that was given to Digital City being given to other competitors so that we know what we are getting is giving the best benefit for the town and the best value for money.”

Coun Wright said he was concerned that other competitors would drop their prices to undercut Digital City.

“Just because you are first does not mean that you are going to be the best,” he said.

But Coun Mark Edwards, lead member for finance, said the real risk was that Digital City could have gone to another council.

He said: “We are a council that is cash-strapped. We have no money. We have got to make investments that will make us a return.”

Council leader Rod Bluh said the scheme had already reaped rewards for Swindon in raising its profile and attracting interest from businesses and other councils.

He said: “This is a zero cost investment for the council. We have paid nothing for our share in this company. This is a superb deal.

“In the unlikely event that the council doesn’t make its money back the council would still own the network. Aqovia (the IT firm delivering the scheme) would lose out.”

Lib Dem leader Coun Stan Pajak welcomed the deal but said the public still needed more information and proposed a public debate over the issue.

A Labour motion calling for a further review of the process behind the wi-fi deal was defeated, with several backbench Tories and independent councillors abstaining.