Official documents secured under Freedom of Information show North Ayrshire Council’s £380m contract to build four schools using a Public Private Partnership (PPP) was signed by an unelected official, with most councillors denied access to the crucial Final Business Case.
Minutes of a meeting of the Council’s PPP Project Board, held on October 17 2005, record that “For logistical reasons...the contract [is] to be signed by the PPP Project Team Leader”. At the time, the Project Leader was a Council official called Jim Tulips.
However, the minute goes on to say, “Ian Snodgrass recommended that the draft report be amended to authorise himself, as Chief Executive, or his nominee (e.g. the Corporate Director (Educational Services) or the PPP Project Team Leader)” to sign the contract. It is then recorded that “The Board agreed to this revisal.”
The only councillors present at the PPP Board meeting were then senior members of the Labour Executive, David O’Neill and Peter McNamara.
Minutes of a later meeting of the Board record that PPP Project Leader Jim Tulips “highlighted the fact that the full business case is still confidential and would not form part of the report to Committee. It would, however, be made available to the public after financial close.”
At that point, Cllr David O’Neill, then the Leader of the Council, is recorded asking “if elected members could see the final business case.” Cllr O’Neill added, “If not...they should be given as much information as possible in order that an informed decision could be made.”
However, in response, the minute states Mr Tulips, an unelected official, “confirmed that the final business case was for the information of the Project Board only,” adding “the document is currently confidential, as negotiations between the parties are still ongoing. It would only be publicly available after financial close.”
Only three Labour councillors were members of the PPP Project Board and were therefore privy to the content of the £380m Schools contract before it was signed – David O’Neill, Peter McNamara and Sam Taylor. Mr Taylor lost his seat at the Council Election in 2007.
In other previously confidential documents, an e-mail conversation between two Scottish Executive civil servants appears to reveal a strategy to keep North Ayrshire Council in the dark about certain aspects of its own PPP Project.
In the e-mail, dated July 25 2005, Jane Broderick, at the time a Senior Research Officer within the Scottish Executive’s Public Service Performance & Improvement Division, contacts Mr Sandy Rosie, who back then was a senior official in the Government’s Financial Partnerships Unit (FPU), which oversaw PPP Projects in Scotland.
Ms Broderick refers to an article that had appeared in the previous day’s Sunday Herald newspaper, in which then West of Scotland MSP Campbell Martin had raised concerns over North Ayrshire Council’s PPP Project and bids submitted for the contract, particularly one from a company called Comprehensive Estate Services (CES). The e-mail concludes, “Leslie Evans [another civil servant] is meeting councils in Ayrshire tomorrow, including Ian Snodgrass, Chief Executive of North Ayrshire. Can you please advise whether there is anything else she needs to know, any significant sensitivities or lines to take.”
In response, the FPU’s Sandy Rosie says, “The Council has recently announced its preferred bidder, which is not CES. CES is therefore no longer in the running to deliver this project, so SE [Scottish Executive] is content that the council continues to have a project which (subject to all the conditions of funding) should be supported by us in due course.
“FPU and Schools Division are handling a number of PQ [Parliamentary Questions] business on this case so the less said to the council the better!”
North Ayrshire Council proceeded with its £380m Schools PPP Project despite only ever receiving one credible and viable bid for the contract. In other documents secured under freedom of Information legislation, the Council’s own external advisors on the project note at the very first Key Stage Review that the bid from Comprehensive Estate Services was “materially non compliant”.
Although the contract subsequently went to the other bidder, First Class Consortium, it is unlikely a project with only one substantive bid would meet European Union procurement regulations, a requirement of which is that projects must be able to show “genuine competition” for a contract.