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Anger from firms over wi-fi decision (From Swindon Advertiser)
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Anger from firms over wi-fi decision
9:30pm Thursday 17th December 2009 in News
Fill in our wi-fi survey and let us know what you think of the plan.
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.”
Comments(53)
the one from sevenhampton
says...
10:12pm Thu 17 Dec 09
itsamess
says...
10:16pm Thu 17 Dec 09
Bobfm
says...
8:07am Fri 18 Dec 09
It would be prudent for the police to get involved, at least to secure documents before the 'midnight shredding' takes place.
The problem of course with that as I see is that all the local statutory agencies sit alongside Blur and Hunt on the Swindon Strategic Partnership, together with other councillors and council officials.
Swindon Strategic Partnership Board Members
Roderick Bluh, Leader of Swindon Borough Council & Chair of the Partnership Board
Rikki Hunt, Director of Smart Mobile Solutions UK, local Swindon based business
Richard Sheard, Regional Director of West of England, Government Office South West
Tony Bray, Area Director, South West of England Regional Development Agency
John Popowicz, Chief Fire Officer, Wiltshire Fire and Rescue
Lyn Hill-Tout, Chief Executive Swindon & Marlborough NHS Trust
Glen Leat, Senior External Relations Manager, Gloucestershire, Wiltshire & Swindon Job Centre
Jan Downie, Learning & Skills Council
Gavin Jones, Chief Executive of Swindon Borough Council
Caroline Fowles, Chief Executive, Swindon Primary Care Trust and Group Director Housing & Social Care, Swindon Borough Council
Paul Howlett, Chief Superintendent, Divisional Commander, Wiltshire & Swindon Police
John Gilbert, Group Director Children's Services, Swindon Borough Council
Celia Carrington, Deputy Chief Executive & Group Director Environment & Regeneration, Swindon Borough Council
Diana Fulbrook, Chief Officer, Wiltshire Probation Service
Vacancy, Chief Executive Voluntary Action Swindon
Tom Charnock, Chair Overview & Monitoring Group (observer)
Fionuala Foley, Deputy Leader Swindon Borough Council.
This is a mess Swindon could do without, loads of positive publicity followed by allegations of malpractice, will certainly scupper any chance of this project being expanded to other towns, and thus SBC losing tax payers money
Given that Rod Blur has been instrumental in this fiasco it is time he consider his position. Integrity would dictate he stands down at least until an independent investigation.
Ian13
says...
8:11am Fri 18 Dec 09
.
“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.
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
says...
9:09am Fri 18 Dec 09
1. The money was business support funds, not for SBC to pay bills. It wasn't their money.
2. The event was sold as being free to Swindon. It then turned out all bar two of the businesses in the event complex were parachuted in under the BBC's preferred suppliers.
As for the 'future' benefit, it is claimed. You know as well as I do that many sectors yours and mine included have just seen an incredible downturn, and the latest SW data shows that is continuing.
politicrat
says...
9:28am Fri 18 Dec 09
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.
yagetmeblood
says...
9:28am Fri 18 Dec 09
Al Smith
says...
9:42am Fri 18 Dec 09
-
Because if the big broadband/WiFi providers suspect this could be the case and decide to get involved it would get very messy.
Bobfm
says...
9:52am Fri 18 Dec 09
I would have thought the Tory, 'mother ship' would have been a little more cautious over this rather than applaud simply because it is a Tory Council.
The Real Bev
says...
9:57am Fri 18 Dec 09
dc the 2nd
says...
10:01am Fri 18 Dec 09
politicrat
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!!!!
The real problem is the accountability of our elected representatives and the decision making process.
Failing to answer these 2 serious flaws in our democratic system will always undermine the integrity of our representatives and the way they make decisions on our behalf.
Change the system!!! not the people....
itsamess
says...
10:34am Fri 18 Dec 09
Bobfm
says...
11:23am Fri 18 Dec 09
Perhaps the Chief Executive would like to answer, oh no I forgot he is on the SSP also.
carleah
says...
11:47am Fri 18 Dec 09
DAVE0242
says...
12:08pm Fri 18 Dec 09
What next?
Bobfm
says...
12:20pm Fri 18 Dec 09
They are competing with local business with an unfair advantage. It is only when something of this magnitude and potential disaster comes to light that is it seen.
stfcphil
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
says...
12:34pm Fri 18 Dec 09
Are they doing their best, they tell us there is a shortfall in the budget of 12 million, old peoples services are to be cut, disability services are to be cut, and then hay presto they borrow 450k, to lend to a company run by an 'associate of councillors, which has no trading history, who then sub it out to a company which is Indian owned who then sub out more services to a company in Maidenhead.
Meanwhile one of the IT centres of Swindon talent is not even asked. No they are not doing OK.
Red Man
says...
1:07pm Fri 18 Dec 09
politicrat
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.
Taxpayers money is to be used for the good of the community.
I sincerely do not think that spending half a million pound on this venture when having to struggle with a budget hole and possible cuts to essential services is a wise decision.
In times of hardship, money should be used to support the community.
bilzinCdS
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
says...
4:06pm Fri 18 Dec 09
Robh
says...
4:11pm Fri 18 Dec 09
All in all the whole thing stinks but then what do you expect with that man at the centre.
Grimwald
says...
4:22pm Fri 18 Dec 09
Robh
says...
4:22pm Fri 18 Dec 09
The council was being "very helpful" in introducing the partners to potential public sector users. "We will win them over based on price and service," said Hunt.
Says it all.
Grimwald
says...
4:25pm Fri 18 Dec 09
'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.'
I have just one question for Rod Bluh.
You are a public servant who has commited, without discussion, £450,000 of Swindon's. Just how much money of your own have you committed to this company?
Grimwald
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
says...
4:43pm Fri 18 Dec 09
Also for clarity I am not as an individual or as the FSB Chair seeking legal advice around this matter, I have however advised the many FSB members who have voiced their concerns regarding the legality of this venture to use the FSB benefits they receive as members and speak directly to the legal team or elevate this concern to our policy department located in our London offices.
The key questions I am seeking clarity around on behalf of the concerned FSB members who have raised this issue with me are:
1: Will Aqovia or any of the other solution providers named in this process be offering IT support to business users, if so then why has taxpayers money been used to promote this private business entity?
2: Given the extensive involvement of private business owners and council members disclosed in an earlier post does a conflict of interest not exist between private enterprise and local government? How is this arrangement being scrutinized on behalf of the taxpayer? And will we be required to undertake a freedom of information request or will the council disclose all details around this matter promptly so that the public can review all of the decisions undertaken during this process?
3: What will the council’s response be in the event that jobs are lost from local IT providers (which there are many) because a business elevated with an unfair advantage as the primary provider of “free internet”, funded by loans issued from the taxpayer, is able to operate with a chokepoint for IT services throughout the borough?
4: The business charter signed up to by over one hundred and sixty businesses in Swindon and by the local council states that one of its commitments is that Swindon Borough Council will support the local business community by promoting local procurement. They say they will Provide opportunities for local suppliers to bid for Council contracts and Advertise all major Council tenders on the www.buywiltshire.co.
uk website. I would argue that this was a major opportunity and I am sure that the town does have adequate expertise within the town, and the tendering process, by its very nature would have allowed the council to carry out adequate due diligence. They also say in that document that they will “Keep companies up to date on local plans and ensure that business views are represented;”
Aqovia are London based and Intamac are London based.
What happened to that process? We (the members of the FSB) do not consider the retroactive inclusion of local business to be in the spirit of this agreement.
Grimwald
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.
In that case would you please send your donation to the council !!
Grimwald
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.
Looks like 'Rodgate' is alive and well and that Councillor Bluh is doing iretrievable damage to his reputation and one asks the question as to how long he remain leader now?
FSB Chairman
says...
4:57pm Fri 18 Dec 09
Grimwald
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
says...
5:35pm Fri 18 Dec 09
'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. '
I am glad Councillor Bluh recognises this because as leader he has played no part in this whatsoever. It has been done by the Procurment Advisory Group who is made up entirely of Back Benchers who hold the Cabinet to account.
This wi-fi deal has not been discussed at any time by PAG in fact at Scrutiny Councillor Edwards, Lead Member for Financial Resources, confirmed that it had not gone to PAG. I am told this is matter of public record.
Bobfm
says...
5:37pm Fri 18 Dec 09
That aside this is corrupt by any definition it is clear that the FSB have lost their bottle not for the fist time, not of course a Masonic Hand shake issue, I am told.
Wellfire
says...
5:41pm Fri 18 Dec 09
Bobfm
says...
5:43pm Fri 18 Dec 09
Grimwald
says...
5:46pm Fri 18 Dec 09
'£450,000 is very small.'
Councillor Bluh's arogance staggers me. How can £450,000 be regarded as being so small? £450,000 is not a small amount of money at any stretch of the imagination but I suppose it would be if you were Councillor Bluh looking down from the FOC eleventh floor of the DMJ made available to the wi-fi people.
Bobfm
says...
5:52pm Fri 18 Dec 09
Draw cash, security word. Love it.
Grimwald
says...
5:53pm Fri 18 Dec 09
'I wish to reiterate my own personal feeling that a free wifi mesh for Swindon represents a truly innovative opportunity for all citizens and visitors to this town; however I do not accept that it should be implemented “at any cost to the taxpayer”.'
I do so hope that you are going to see this through this time. I know that with Rod Bluh and Rikki Hunt being powerful members of the SSEP it must be difficult for you but as Chairman I hope you will defend your members.
Grimwald
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
says...
12:42am Sat 19 Dec 09
When he was dumped from what he thought was a done deal he pulled out of STFC almost destroying it. You may be aware of the recent scare for STFC about having to repay a loan. Guess who was involved?
itsamess
says...
8:51am Sat 19 Dec 09
Bobfm
says...
1:33pm Sat 19 Dec 09
It seems we all misunderstand the role of said committee. It seems the criteria that is laid down is predetermined and thus the committee cannot deviate from it.
If I understood correctly the scrutiny committee could do nothing because the 'proposal' ticked all the boxes, and was also outside of the committees remit.
Ii was also suggested I spoke to Rod Bluh directly but I declined because of course I have instigated a formal complaint and it would now be inappropriate.
I have to say this very much now smacks of councillors covering their backs.
The other thing I learnt is that this money couldn't actually be used for public services, it came from a budget specifically for this type of project. This budget would you believe is £70 million pounds.
Chris Watts
says...
3:13pm Sat 19 Dec 09
Cllr Bluh states that Digital City has a registered office in Swindon which is hardly surprising as SBC are gifting Digital City office space free of charge. Likewise, rent free siting of the 1,400 access points on lamp posts. As Digital City are going to be located in council property, I would not be surprised to find that they will have free gratis use the council networks to route the Digital City Mesh onto the World Wide Web. Again, this would constitute a considerable saving. How much more of a competitive advantage can the Swindon tax payer give Digital City to the detriment of local businesses? If an independent entity wished to install a similar network, the additional overheads that would have to be paid in the real world would very likely mean the business plan being untenable. The £450K loan is still a liability to SBC. With the current interest rates as they are, there is very little return on the council’s loan as disclosed in the council scrutiny meeting. When SBC motioned to invest money into Icelandic banks, the agreed council processes deemed the investment to be of too high a risk and wisely decide against. It was evident from the Council Scrutiny meeting that this process was circumnavigated with, I believe, commercial confidentiality sited. Needless to say, this lack of transparency is of much concern.
In my opinion the £950,000 used for this speculative venture and the Radio 1 big weekend would have been better invested directly into local business, including the “young local entrepreneur” cited by Cllr Bluh allowing him to develop these applications for a much wider internet market and not just the Network City offering that allows Aqovia and SBC to take an unnecessary slice of the profit. I am sure his applications would run over all current broadband solutions. I understand that this money was not earmarked for plugging the gap in public service, but I suspect that is was also not set aside for the speculative machinations of a few investors and a good old knees-up in Lydiard Park .
With regards to the question of not using independent expertise to vet the WiFi proposition, I fail to understand why SBC would spend a vast amount of money for external consultants for the canal project, but nothing for this far more complex business proposition.
I am perplexed at the suggestion from Cllr Bluh that the SBC went with Digital City as they were the only company to come forward with the WiFi solution. I am not surprised there was no competition as there was no tendering process and this deal was conducted out of the public gaze. I only wish that when I approached customers with a network solution that they had the same relaxed attitude and did not seek additional quotations. Business would be easier, but that is not the way the real world works.
I was shocked to discover that the main partner for the much hyped technology that promises to “revolutionise home and business security with remote CCTV” is based in Northampton . If I was a local security company that supplies a similar service that had to compete with the heavily subsidised Digital City I would be very concerned. To get on an equal competitive standing the local security company would also have to sign up with Network City , paying its dues into the Aquovia / SBC pot. A cynical person would liken this to a business protection racket.
As a Director of a small business in Swindon , SBC must understand that I am concerned that in the near future I, and other local businesses, will have to compete with them on an un-even playing field. If it is confirmed that Digital City will be offering competitive services to my own, as suggested on the Aqovia web site, I will certainly seek legal advice.
I currently have many outstanding questions that were lodged with SBC at the Scrutiny Meeting. My concern is, are my answers coming from my council representatives or the major share holders of a competitive company? The position the council finds itself in is untenable and I think that some tough choices will need to be made in the near future.
Chris Watts
Director
Fourtiers Ltd
bilzinCdS
says...
5:29pm Sat 19 Dec 09
Council Leader DEMANDS backing for Wi Fi !!!..
Demands is a bit dictatorish wouldn't you say ??
NO.. If you wish to back this..
It would be very jolly if you backed this..
Pretty please back this..
To paraphrase a certain Mr Trotter...."those who dare DON'T always win Rodney !"
Fight-Corruption
says...
8:36pm Sat 19 Dec 09
My many sources inside the Swindon Borough Council inform me that the first they new of this WiFi investment was reading in media! At a time when many are made redundant and facing harsh cuts to pay.
BobFM, you doing the great job with your articulate intelligence. Please be leader of the people on this issue.
Message to Roderick Bluh: The Public do not trust you. Confidence lost. You think they are the stupid. You underestimate. Resign is to be your only option now.
Bobfm
says...
8:34am Tue 22 Dec 09
Robh
says...
9:40am Tue 22 Dec 09
leela
says...
1:41pm Tue 22 Dec 09
anglopete 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!