Man holding and axe

Isle of Wight council fails to detail impact of PFI cuts despite repeated requests

The Isle of Wight Council has slashed more than £600,000 from the Highways PFI budget with a series of service cuts — including reducing CCTV monitoring, street cleaning, grass cutting and winter maintenance.

In April, the council said it had found £11 million worth of savings over the remaining 18 years of the contract. It hopes to cut the budget by £40 million overall.

£608,000 of cuts so far
At this month’s scrutiny committee meeting, Island Roads and council officers said they had cut £608,000 so far and provided a list showing the extent of the cuts.

Despite repeated requests for savings figures in each area, and details of how the cuts will be implemented — how much money reducing the gritting routes will save, for example, or which roads will no longer be cleaned as often — the council has failed to provide any specifics.

Evans: ‘Quite a hefty target to achieve’
Dave Evans, the council’s strategic manager for highways and transport, said it was ‘quite a hefty target to achieve’ in a contract that had already been agreed.

The council hopes the measures will save a further £900,000 by April, 2020 — £450,000 by the end of the month.

The return of JJ
The initial £11 million cuts were identified by Jay Jayasundara. The former Highways PFI council officer has returned to County Hall as a consultant, to find savings in the contract he originally put together.

The council said last July he would be paid £70,000 for the work. In fact, he was paid £130,000 for eight months’ work, including £750 a month for accommodation costs, and will remain on the council payroll until April.

Cuts to CCTV control room
One of the most controversial cuts has been to the CCTV control room at Island Roads’ headquarters — every monitoring job was axed, although the council said the footage could still be accessed if it was needed.

The Highways PFI project has come under fire in recent months after the council said it was not obliged to resurface every road within the first seven years of the contract — contrary to claims made when the contract was signed.

Only 65 per cent of the 818km road network has been treated to date, before the core investment period comes to an end next year.

Where the cuts take place
Services cut to improve savings include:

  • Reduced CCTV Service
  • Street Cleansing and Grass Cutting
  • Review of Street Furniture, Signs and Markings
  • Winter Maintenance
  • Events Traffic Management
  • Additional Drainage Services
  • Trimming and Dimming of Street Lights
  • Traffic Modelling and Counting
  • Rail Bridges and Structures
  • District Responders Day Work
  • Gritting Routes

Article edit
17.10: Headline amended from ‘refused’ to ‘failed’


This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which OnTheWight is taking part in. Some alterations and additions may be been made by OnTheWight. Ed

Image: Abby Savage on Unsplash under CC BY 2.0

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Colin
24, October 2019 11:29 am

Beggars belief.

This was billed as the best thing since sliced bread by Eddie Giles and co not many years ago. Going to sort the island’s roads once and for all for a generation.

So it was such a good contract that everything is hidden from view as commercial secrecy and no-one is allowed to know anything about it.

The whole lot stinks.

Geoff Brodie
Reply to  Colin
24, October 2019 12:54 pm

‘And co’ – by which you mean David Pugh, former leader of the IW Council and current Chairman of the IW Conservative Association.

peterj
24, October 2019 12:00 pm

Jay Jayasundara has been paid at least £260,000 since returning to the PFI teat in 2018, according to the IWC’s published spending data. He is currently receiving just over £16,000 a month.

chausettes
Reply to  peterj
24, October 2019 12:48 pm

Jay Jayasundara – utterly unaccountable as far as I can tell.

Spartacus
Reply to  peterj
25, October 2019 10:47 am

Need to pull the plug on this one

greenhey
24, October 2019 12:31 pm

Much as I understand the frustration about this, perhaps it helps to point out that this arrangement mirrors what central government has been doing for years. In outsourcing in general, there are a number of practices of dubious integrity. For example, companies bid low to get a contract, then don’t deliver and because the client is now dependent on the outsourcer, it pays them extra amounts to… Read more »

chausettes
24, October 2019 12:46 pm

I said it yesterday in a post on another IW Council-related story, and I’ll say it again today: Cllr Stewart has to go. The whole of the current administration is an absolute farce. If somebody told you a pay-cut was a ‘saving’, you’d rightly argue that is at least disingenuous – so why does the current Council leadership assume Island residents will accept service cuts as ‘budget… Read more »

Spartacus
Reply to  chausettes
25, October 2019 10:46 am

Cllr Stewart has to go, I will vote for that and the rest of his cabinet

tyke
24, October 2019 2:10 pm

It’s a shame Cllr Brodie and others didn’t ask at budget setting time exactly what the £1 million of savings mentioned in the papers actually looked like on the ground. The council has been allowed to bring about these surreptitious cuts through lack of scrutiny. Our council is two-bob across the chamber.

johnr
24, October 2019 2:38 pm

Only 65 per cent of the 818km road network has been treated to date, before the core investment period comes to an end next year. And a large proportion of this needs repairing already. Probably would have been better off in a lot of cases with the old ‘Tar & Chippings’ top dressing. As for the £608,000 saving, they probably had to do this to pay Jay… Read more »

alisonjane
24, October 2019 5:21 pm

Just how much longer is this farce of the IOW Council going to be allowed to continue for? ‘Making savings’ whilst putting drivers lives at risk by not gritting certain roads, in order to pay an extortionate amount to the man who drew up the original contract! You just couldn’t make this up….jobs for the boys on the grandest scale. So the IOW Council is ‘saving’ approximately… Read more »

Phil Jordan
24, October 2019 7:18 pm

Whilst it is not a ‘lie’ to say not all roads would be surfaced under the PFI – that’s was the case – it’s highly disingenuous to suggest that the current achievements by the provider under the CIP are contractually acceptable. They are not. The truth is that under the contractual arrangement and enshrined through the ‘Method Statement’ which exists as part of the service delivery provision,… Read more »

peterj
Reply to  Phil Jordan
24, October 2019 7:35 pm

Many thanks for your insight Phil, you obviously have a lot of knowledge regarding this contract.

Is there anything we mere citizens can do? Is it worth a complaint to the Local Government Ombudsman for example? Or perhaps there is a better course of action worth taking?

Benny C
Reply to  Phil Jordan
24, October 2019 11:37 pm

Serious allegations in there. Yet no Councillors ever step up and refer this upwards. That means either there’s no smoking gun or they are ok about it all. For my money Id say it’s pretty evident that IOWC got caught out by a document they didn’t really understand when they signed it. The lawyers encircling these large complex contracts are all magic circle, they are sh*t hot.… Read more »

Phil Jordan
Reply to  Benny C
25, October 2019 7:55 am

BC: Overall, the contract is a flawed document that (actually) doesn’t really suit either parties. A mediation process (a legal process embedded in the contract for conflict resolution) returned a completely undecided outcome over one specific area of the contract delivery clauses (actually… the network asset register) and both parties were left in legal limbo over it. There’s much that could be said – and has been… Read more »

Benny C
Reply to  Phil Jordan
25, October 2019 10:27 am

Thanks that’s a very clear explanation of complex points. So is it possible that certain IOW Councillors or agents acting for them have been interfering in the contractors progress and are now being cited as reasons why the contract performance isn’t being met? (for instance altering a strategic works schedule to accommodate improving a road in a particular ward earlier than planned). I agree a higher forensic… Read more »

Benny C
Reply to  Benny C
25, October 2019 10:31 am

PS loving the axe photo! I’m slightly surprised not to see a very small Dave Stewart, complete with dayglo red tie, waving hopefully and grinning inanely in one corner of the picture.

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