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We report today on an extreme example of waste in local government, in the borough where Baby P died. In Haringey, nearly £24 million was spent on consultants and architects on its Building Schools for the Future programme, a proportion of the total bill which is more than three times the government guideline level. This is not money that could have protected the child now known as Peter Connelly from the devious mother who, along with her boyfriend and his brother, were convicted of killing him. However, the gap between the appropriate level of spending and the actual figure spent by Haringey does raise questions about the culture of a borough where the official report into Baby P's death found deep-rooted management failings. Shortage of resources for social workers was also mentioned as a factor in the official investigations. And of course, some of the £24 million could have been spent on actual school buildings.
There is a wider question, too, about what town halls think their role should be. Some of the work farmed out to consultants could perhaps have been done by the thousands of staff the council already employs. But frugality has become a thing of the past in local government. Many top town hall salaries have risen to private sector levels even though officials there do not face the pressures of competition in a marketplace. About 20 town hall chief executives receive basic pay higher than the Prime Minister's, with total compensation often exceeding £200,000. They pay themselves these sums because they can.
Councillors, often on substantial allowances, don't stand up to them and council taxpayers have to foot the bill. At next year's London borough elections, voters may wish to take their revenge.
Brussles v the City
The mayor, Boris Johnson, today travels to Brussels to defend key parts of the financial services sector here against an ill-conceived European directive. The venture capital and private equity sectors are thought to employ 7,000 people directly and hedge funds a further 35,000 directly and indirectly, as well as allocating capital which will aid economic recovery. Sir James Sassoon, the banker who has advised both Labour and the Conservatives on City matters, has described the draft directive as both disproportionate and protectionist. Certainly hedge funds' dealings have been controversial but many saw that assets were overvalued during the boom, and were entitled to act accordingly.
Hedge fund fees may be excessive but the funds themselves are a part of properly functioning capital markets, while the private equity and venture capital industry is a vital source of long-term investment. So the potential for damage to the British economy if these activities leave the EU for Switzerland, New York or Singapore is enormous. The Commission has a history of proposing legislation that through incompetence or worse, would damage London as a financial centre, going back at least as far as plans that would have crippled the bond markets here back in the 1990s. The Mayor must do all he can to show that driving business out of London will damage the EU as a whole.
Keep black cabs safe
As a rule, black cabs are a safe, reliable way to get round London. So it is truly disturbing that the Public Carriage Office feels itself unable to stop a convicted killer from gaining his cabbie's licence. Because the individual concerned, whom we cannot name for legal reasons, was detained under the Mental Health Act, his conviction for killing his wife is considered spent. But that will not reassure passengers. Certainly ex-offenders should be encouraged to find jobs, but driving a cab is a special case. Drivers can go where they choose on their own with anyone they pick up. And, as London Assembly member Andrew Boff points out, this highly stressful job is unsuited to those with a history of severe mental health problems. Transport for London's concern that it might be sued if it refuses a licence is no excuse. Passengers must be protected.
Reader views (1)
As the PM holds the most responsible job in the country it is ludicrous that so many in the public sector earn far more than him.
The sickening thing about council chief execs inflated salaries is that for every one earning £200k there are probably at least a dozen on more than £100k.
The PM's salary should be the benchmark for the public sector and all others should be below his. If any of the fat cats disagree then let them try their hand in the private sector, and don't forget the gold plated pension fund that goes hand in hand with these salaries.
- Scotty, Cambridge UK, 02/09/2009 17:49
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