2012-2015 budget: the Argyll First evaluation

Posted on February 19, 2012 by newsroom

Argyll First is of the opinion that this was an electioneering budget by the most unpopular administration ever to hold office in Argyll & Bute Council.

The Leader of the Council had received numerous requests from Councillor Philand prior to ‘budget day’ asking for a copy of the final budget proposals. Unfortunately this request was denied.

Ironically, at 10.15am it was brought to our attention that the Leader of the Council, accompanied by the Deputy Leader and Councillor Mulvaney, were pictured in the Helensburgh Advertiser highlighting some of the confirmed budget proposals. This is totally unacceptable.

At 11.00am we attended the Council Chamber where we sat for approximately 2 hours listening to the Leader and the Administration delivering three protracted repetitive speeches.

Having been previously denied prior knowledge of the final content, we requested an adjournment to allow us time to fully consider the final budget proposals. However this request was denied.

The only way we could obtain an adjournment was to support an amendment put forward by Councillor George Freeman and seconded by Councillor Robert McIntyre. The Provost thereafter agreed to an adjournment.

The main emphasis on the key points of the budget was in effect to borrow more money to support additional investment in roads and education.

All things considered, the budget that Councillor Walsh put forward was probably as good as we could expect at this time.

However, during the course of the debate, some members of the administration, in our opinion, tried every trick in the book to wind the opposition up in an attempt to get us to vote against the budget (for political purposes).

We were perceptive enough to see through this ploy.

We are determined to change the way in which the budget is presented to the council (the current cloak and dagger method has to go!).

Councillor Walsh was, in our opinion, astute enough to make most of the hard hitting cuts last year, thereby enabling him to put forward a more attractive pre-election budget .

We maintain that the budget process should be open and transparent and that all proposals (good or bad) should be put on the table for all councillors to scrutinise for an appropriate period of time before budget day.

This will be one of many proposals we intend to put forward to the new administration after May’s elections in an ongoing attempt to create true democracy within Argyll & Bute Council.

Argyll First 19th February 2012

2012-2015 budget: the non-aligned evaluation

Posted on February 19, 2012 by newsroom

Thirty minutes was all the Administration allowed for scrutiny of their budget. With its majority it might as well have been 30 seconds for there was never a doubt that the budget would be adopted unaltered whatever any opposition councillor said. However, it underlined how adverse this Administration is to proper scrutiny.

I took the view that having several alternative budgets was an absolute waste of officers’ time for, as the Council Leader acknowledged, large numbers of people have worked on the budget for the last six months.

I hoped that the collaborative approach of previous years would continue as the best way forward. The Council Leader refused all approaches to getting a consensual budget that could be supported unanimously.

Two things were obvious from this – it was going to be give-away election budget and it was going to be personal.

The established practice since I have been a councillor is for a reasonable adjournment in proceedings after the budget motion has been tabled, to allow for opposition scrutiny of any last minute changes.

The Administration departed from custom and practice and insisted that an instant amendment be tabled before any adjournment.

I had prepared a competent amendment to support my campaign for funding for the Helensburgh Leisure facility. In the event, that was incorporated into the amendment tabled by the Opposition Leader to ensure an adjournment for scrutiny. I was pleased that Administration councillors recanted on their previous untenable position that there was no funding available for this new facility for a decade.

It was difficult to oppose such largesse from the Administration. In an election year suggestions on prudence and longer term financial planning get short shrift.

There will be much publicity about the Council spending plans so I would bring attention to how this was all funded. The three sources that made this such an easy budget were:

There was an extra £12.8m from the Scottish Government through Supporting People funding replacing funding previously given away by the Council Leader at COSLA. This was incorporated into the draft budget and accounts for the net revenue budget surplus of £4.454m.
A reserve designed to offset rising payments in future years to existing schools and waste management PPP (Ed: a form of the notoriously expensive Public Private Partnership funding device) projects had accumulated £14.6m. The budget spent £12.5m of this and took ring-fencing off the rest. The best parallel to this action is that of companies in the 1980’s who spent accumulated pension reserves only to face financial difficulties or failures later as economic conditions changed.
The sale of Council assets in Helensburgh, including the former Hermitage Academy site, the pier head site, Blairvadach House and other surplus properties and assets. In total these could conservatively realise around £20-£30m. There will be uproar in Helensburgh when it becomes apparent that the capital receipts from the sale of the town’s assets (some held in Common Good) are winging their way to Kilmory.

Overall, the budget was not prudent and saw a massive conversion of assets and revenue into capital spending.

It is important to recognise the ambition of the budget but also to realise the increased financial risks to the Council it brings.

I think it is generally recognised that this is a budget that will require significant modification post the election, despite the predictable protestations now.

Whoever forms the next Administration will face a difficult task to deliver all the election promises but it will require a more stable and sustainable solution than this short-term election fix.

James Robb, non-aligned opposition councillor