29 October - Helping the local economy and financing the national one
In a clear sign of impending senility I was surprised to see Councillor Andy Dourmoush
chairing October’s Finance Scrutiny meeting. I was under the impression that he
was still persona-non-grata for not being entirely convinced by
the auditor’s Good News Story
a year ago. As the most successful - only? - businessman on the Council who better to keep an eye on its finances?
However it seems I had entirely forgotten last July’s Finance meeting report.
It is good to be reminded that Ahmet is back.
The first Agenda item was entitled Social Values which is an obscure way of
describing responsible local procurement policies designed to benefit Bexley people whenever possible.
Councillor
Frazer Brooks (Conservative, Falconwood & Welling) asked how such local contracts
are monitored and if penalties are imposed on any business which may not live up to
their promises. It was at first said that it is too early to comment on either point
but the Finance Director stepped in to say that monitoring will be carried out.
Labour Leader Councillor Borella asked how local people were benefitting
economically but there was no obvious answer. (Misoperation of microphones might have been a factor.)
Councillor
Larry Ferguson (Labour, Thamesmead East) expanded on Frazer Brooks question by asking if contracts
could be rescinded for not fulfilling local contractual obligations. The Finance
Director said that such a move would likely prove to be unviable. How quickly
could a contract be replaced? Cabinet Member David Leaf thought that sometimes
companies would find themselves unable to fulfill local provisions and if
contracts were tighter might increase their prices to counter such eventualities.
The Chairman appeared to take a tougher line and said “penalty clauses must be
controlled to give the best possible services to residents”.
Councillor Cameron Smith (St. Mary’s & St. James) asked how local is balanced against best value. The
Finance Director said contracts are weighted towards price. “70% price based.”
Social Care Services may be tipped in the other direction.
Councillor Daniel Francis (Labour, Belvedere) said that some contractors
sub-contract especially in the field of temporary accommodation. How could
that work? Councillor Francis was promised an answer later and the Chairman
asked for it to embrace all contracts not just those related to accommodation.
The next item was entitled Bexley’s Borrowing Strategy and
it envisages “additional external borrowing over the next few years”.
Councillor Francis asked when it was written because the financial situation was changing by the
hour. (The meeting was held the day before Prime Minister Truss threw in the towel.)
The answer was that the figures provided referred to 9th August and it was admitted that nothing had improved since
then. Bexley was paying even more interest while debtless Bromley was paying
nothing. 24 London boroughs are in a worse borrowing position than Bexley.
Councillor Peter Reader (Conservative, West Heath) mischievously wondered in which direction Croydon’s £1·52
billion debt would go now that the borough has gone Conservative and likewise Wandsworth’s £69
million now that Labour is in charge. Bexley is on £250 million and has not
taken on any new borrowing over the past three. Nothing since September 2019.
Cabinet Member David Leaf said that Croydon is a warning to anyone thinking of voting for a Labour Council.
The Chairman concluded that things are changing so quickly that updated versions
of the Strategy should be provided to the Committee via training sessions at the earliest opportunity.
He also suggested that with future borrowing inevitable it might be wise to go
earlier rather than wait until the last minute when interest rates would likely be higher.