Council leader has no answer to LibDem questions

1.22.31pm BST (GMT +0100) Mon 16th Apr 2007

Council leader John Dean was left searching for words when Liberal Democrat councillor Nigel Quinton tackled him on the vexed question of housing maintenance contracts. Asked why councillors had still not been provided with a business case to justify the decision to put maintenance services out to tender Cllr Dean acknowledged that this had taken time, but was glad to report that it had now been sent out. But Cllr Quinton's supplementary question, in which he listed the failings of the "business case", left Cllr Dean floundering.

The points he could not answer were as follows:

• The plan does not address the question of why the existing contracts should be terminated now, two years earlier than planned;

• There is no option analysis, to assess what sort of contract would be appropriate, as recommended by national guidelines, and demanded by the scrutiny sub-committee;

• Nor an analysis of the cost benefit of a new contract, nor the costs of procurement;

• Finally it does not address the exclusion of DSO from tendering.

The final straw came when Cllr Quinton pointed out that the only savings quantified in the report - some £200,000 of potential overhead savings - are virtually wiped out by an increase in overheads charged to the general account of £150,000 per annum.

The leader of the council was left with no answer, and could only promise one in writing later.

Afterwards, Cllr Quinton said "This issue is not just about a worrying lack of business process - we are talking here about the biggest contract this council has entered into since the Slough Estates affair more than 20 years ago, with a value of £100 million or more. We believe the administration is pushing this through in their usual arrogant manner, without stopping to think. There is a real danger that a currently very strong part of council services is changed for the sake of a political ideology and that business risks are taken without proper consideration of the consequences."

Facts to ponder:

Housing Maintenance services are currently shared between Mears and the in-house maintenance team (DSO). Approval ratings for both are in excess of 95%, and the DSO team make a profit for the council.

In November 2006, with virtually no consultation or warning, the council announced that it was going to terminate these contracts two years ahead of schedule, and seek to unify this work in one contract over 15 years.

This decision was called in by Cllr Quinton with the support of Labour councillors and a scrutiny sub-committee was set up. This met and reported before Christmas with a deeply critical report that left the council leader allegedly "spitting feathers". Tory members of the sub-committee were forced to distance themselves from the published report, and Cllr Dean insisted a further meeting be held where he could be present to answer questions. This took place in late January and both reports went to cabinet in February.

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For further information contact Nigel Quinton - 07971 860415 - or Tony Skottowe - 01707 324828 (0789 196 3469).