One of the central complaints about PFI scheme the country over, is that lots of the money ‘raised’ though PFI is drained away in paying PFI experts and consultants.
Reading a delegated decision notice published by the IW council today, it appears that the first stop for the PFI Gravy Train will be County Hall.
The Isle of Wight Council plans to put aside £3million to get to the point where the roads project can start work – yes, you read that right, START.
The way that they phrase it
To this end the Council has committed £3,000,000 over the next three years to enable us to strengthen our own resources and to procure the necessary external expertise (legal, financial and
technical) to enable us to progress through the Outline Business Case phase, procurement phase and the start up phase.
Big Salaries
They are projecting that annual costs for the newly created PFI team will be
PFI Programme Director £130,000
PFI Project Manager x 2 £120,000
PFI Support Officer £22,000
That’s £272,000 per year for the initial team with all of these people reporting to the Director of Environment and Neighbourhoods, Stuart Love.
With the project work expected to actually start in Nov 2011, those PFI staff, if appointed this year, will be collecting at least three years salary before the actual roads contract starts. With the team the council has initially suggested, that’s a combined salary’s of £816,000 BEFORE the project starts.
Not a bad gig eh?
Let’s hope the council makes them sign a contract with a minimum number of years of service, unlike Joe ‘two-years and I’m off’ Duckworth did. Without a contract of at least 3-5 years, all of the experience gathered in the lead up to the start of the project will be lost.
It’s gonna happen
It’s also laughable to suggest that the council has any intention of not going ahead and doing this.
They list the two options for the decision as
- Option 1 – Do Nothing.
- Option 2 – Implement the proposed PFI structure.
With the ‘Risk Management’ section following with “Failure to implement the proposed structure will prevent the PFI project from progressing.”
No choice then really.
More PFI coming to the Island?
It would seem unlikely that the council would be putting a PFI director in place if the IW council doesn’t intend to enter into more PFI arrangements.
