In Spring 2017, a coup took place within the Conservative Group at SKDC which led to Cllr Matthew Lee being elected as Leader of the Council. Cllr Lee had only been elected to SKDC two years earlier having previously been a Conservative City Councillor in Peterborough.
One would expect that Cllr Lee would draw on his experience at his previous authority and cross-pollination is healthy, up to a point. However, the extent to which the ideas and even the personnel from Peterborough have been transferred to South Kesteven in astounding.
The first area of innovation/overlap, is in the field of economic development. Soon after the coup, a company called ‘Opportunity Peterborough’ (OP) was engaged as a consultant organisation to assist with the rebranding of SK’s economic development team as ‘InvestSK’. OP was originally the economic development arm of Peterborough City Council and Cllr Matthew Lee was a Director from 2010 to 2013.
In Spring 2018 ‘InvestSK’ became a limited company wholly-owned by SKDC. This decision was going to made without reference to the Overview and Scrutiny Committee so, with the help of four other Councillors, I called it in. A meeting was held to try to explain the motives and purpose of company structure. The nominated Directors are the Leader, the Deputy Leader and the Chief Exec of the Council. “So what?” you might ask. Well, as a department of the Council , the economic development team had to abide by the usual council rules concerning appointments, pensions, etc. but as a limited company they don’t have the same obligations and so it was possible for the Directors of InvestSK Ltd to hire and fire and make policies without reference to normal council procedure. Consequently they were able to appoint a new Chief Executive of InvestSK on a salary of around £100,000/year without any advert, competitive interview of candidate(s) or reference to Employment Committee. Who did they appoint? None other than the CEO of Opportunity Peterborough who had been leading the OP consultancy for the previous 12 months.
The next step of the plan is the creation of a Limited Liability Partnership called ‘DeliverSK’ to push forward the Council’s investment agenda. I use the term ‘plan’ quite loosely as the idea of an LLP had not been mentioned at any previous meetings about economic development or during the budget setting process. This decision was proposed during the summer recess of 2018 and a special meeting of Growth was called at the end of August (I attended and asked lots of questions). The idea is that a funding partner is found to bring in lots of funding to support joint venture satellite companies with the local authority (e.g. LeisureSK, OfficesSK, HousebuildingSK etc)
The recruitment of a funding partner does not strictly involve the delivery of goods or services and therefore does not require an EU compliant procurement process and the decision was delegated to a Cabinet Member. Several potential companies were invited to present proposed strategies for a funding partnership with SKDC and a Guernsey-based company called IAG came top. I googled IAG to see what else they do and, surprise surprise, their Chief Exec is already involved with regeneration activities in Peterborough.
The chart below attempts to show how ‘DeliverSK LLP’ will mirror the existing Peterborough Investment Partnership LLP and how the CEO of IAG is already on the Boards of two of the Peterborough joint ventures. The reality is actually more complicated than the diagram with links to Luxembourg and all sorts but I’ve done the best I can.
The LLP is troublesome to me because I am quite keen on transparency and accountability. DeliverSK will be 50% owned by the public sector and therefore it will not be subject to Freedom of Information requests in the same way as other council companies (including InvestSK). The Peterborough equivalent, PIP, has already attracted criticism on this score.
Finally, let’s look at the personnel* who have been recruited since Cllr Lee’s inauguration:
June 17 – New Chief Executive – Previously worked as Management Consultant for V4 services working with Peterborough City Council.
June 17 – Senior Research and Support Assistant – A lawyer previously working at Peterborough City Council
July 17 – Head of Communications – A consultant employed by SKDC on over £140,000 a year who had previously worked with Peterborough City Council.
June 18 – Head of Arts – A new post created to drive forward the SKDC cultural strategy was offered to a former Artistic Director of the Key Theatre in Peterborough.
October 18 – Assistant Director, Growth – The former Head of Property Services at Peterborough City arrived via secondment to Opportunity Peterborough
October 18 – Chief Executive of InvestSK – previously Chief Executive of Opportunity Peterborough
January 19 – As part of the launch of the Council’s new LLP venture, DeliverSK, SKDC has recruited the Peterborough City Council’s former Director of Growth and Regeneration.
See also: Jobs for the Boys
Informally, staff and Councillors at SKDC have joked that the easiest way to recruit new member of staff is to phone Peterborough City Council. There will come a time when this will stop being funny.
I apologise that this post is quite so long and complicated. I also apologise if I have misrepresented any of the detail; if so, I would be happy to correct if someone can explain more effectively.
*NB For the record, this post is not questioning the abilities or integrity of any individual members of staff, the purpose is to raise concerns over the recruitment and procurement processes and whether they meet the legal requirements regarding transparency, equality, and appointing staff ‘on merit’)