Thwarted While Querying The Lampton 360 Finances

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John Todd writes about corporate governance in this week's blog

John Todd (centre) with fellow councillors

I'm a councillor for the Chiswick Homefields ward.
Since re-election, I remain on the Planning Committee, the Pension Panel and have joined the Chiswick House and Gardens Trust (CHGT). I've passed all The Pension Regulator's exams for trustees; it's a subject I really enjoy.

The CHGT role is a real education and pleasure. Fellow trustees are so experienced about the history of the house and gardens and provide valued guidance and expertise when necessary. Geraldine King, the head gardener, and her brilliant team of regular colleagues and devoted volunteers keep the walled garden and other areas in such good condition.

Rebecca, one of the bee keepers, recently showed me the hives and, as I approached, one of the bees decided to sting me on the neck! One of the queens was absent, was the reason given.

Doing fairly well in the recent camellia competition gives me a scintilla of gardening credibility but Ruth, my wife, is the expert.

New chairman for the Chiswick Area Forum

I will be elected chairman of the Chiswick Area Forum at its next meeting on 25th June at 7pm at Chiswick Town Hall. The Agenda is now published and includes a late item with TfL personnel attending to address the dreadful traffic congestion initiated by the closure of Hammersmith Bridge. Fatima -Zahra Yusef a pupil of Chiswick School and a recently elected Member of the Youth Parliament has agreed to join me and my colleagues on this occasion.

Digging deep into potholes funding

My main role in our Conservative group of councillors is to monitor and shadow Hounslow Council's finances and expenditure. Cabinet papers published monthly provide outturn detail in various degrees of disclosure. I also meet with members of the finance team and accountants who are most helpful.

On Tuesday last, the full council met and I submitted a question and motion. My question, to Cllr Lambert, was:

"One of the Key Pledges of the Hounslow Labour Party Manifesto was to 'Invest £2 million to fix potholes in local roads - and invite residents to nominate the roads that need it'. To date, after one year and numerous referrals by residents to LBH, including representations made at council meetings, only £10,000 (0.5%) of the £2m promised has been used to discharge this hollow pledge. Would you kindly clarify when residents and businesses can see action by Hounslow Highways to address the ongoing issue of potholes remaining left unrepaired?"

Cllr Lambert mentioned possible work on 20 roads but fudged confirming expenditure. Hounslow Highways tells me there are 173 under-depth potholes reported since May 1918.

Motion Inadequate Corporate Governance

At cabinet on 11th June LBH published reports on the governance, or rather the lack of it, of our wholly-owned trading companies initiated in 2016 and yet to make a profit.

I submitted the following motion which was neutered by Cllr Lambert, who is responsible for these trading entities, and seconded by Cllr Curran, the leader of the council, who on more than one occasion mentions the need for transparency and financial prudence. Every penny counts, etc.

Amendments to motions: Agenda item 14
Proposed by Cllr John Todd and seconded by Cllr Sam Hearn An amendment has been proposed in relation to the motion at agenda item 16, as follows: Proposed by Councillor Guy Lambert and Seconded by Cllr Steve Curran "Amend the motion in the following way:

DELETE the following: "The Conservative Group note the material corporate governance and transparency irregularities and omissions in the overall oversight and control of the financial activities of the Lampton group of companies identified in the 11 June Cabinet reports CX 372, 348 and 345 but promised by April 2019 by the Cabinet Member at the October 2018 Borough Council. The same Cabinet papers fail to provide any Lampton financial data in CEX 376 the Outturn report and there has been no performance report. Furthermore, the business plan for Lampton recycle 360 presents operating costs in excess of the council budget by £0.9m. This Council therefore requires the Cabinet Member, Cllr Lambert, to submit to the Cabinet at its next meeting in July full financial and performance data from each of the Lampton entities."

REPLACE the text with the following: "Council notes the overhaul of the governance and reporting reforms agreed by Cabinet on 11th June 2019. It welcomes this revised approach to the oversight of the Lampton360 companies now they are fully established as providers of operational services to the Council. All entities of Lampton360 will operate in accordance with business plans during 2019/20 and we call upon Cabinet to monitor progress against these, including financially, each quarter, commencing with a Q1 (quarter one) review in September Cabinet.

After I refused to accept the amendment the Labour group endorsed the amendment. Cllr Curran then asked for the motion to be put, which terminated any discussion.

The Cabinet governance report highlighted 'serious' failing in governance including the absence of any business plans for 2018/2019, a failure to report financial performance to Cabinet. No KPI's and other issues. By way of example the Lampton recycling company still hasn't a contract with LBH, despite being created in 2016, and is frequently given financial help to keep it solvent. Our recycling rate languishes at 30%

In 2018 I'd highlighted these diverse matters at council and was promised action by April 2019.

In June 2019 the cabinet outturn report stated, 'The 2018/19 Lampton360 outturn position will be reported to the Lampton360 Board in May and to Cabinet thereafter'. If the data was available in May why is the council leader and cabinet colleague asking us to wait until September?

Neither our Overview and Scrutiny Committee, who were tasked at the outset to monitor, nor our Audit Committee, probed and challenged these trading companies.

The collective amount of capital and revenue provided to these companies by LBH is in excess of £50m. No profit, many losing money - one in excess of £250,000.

Rather than plead guilty to incompetence, Cabinet members seek obfuscation by sharp practice in submitting an unhelpful creative motion.

I've sent Cllr Curran the Council Leader a copy of the National Audit Office paper on Local Authority Governance.

We'll continue to monitor though.

Coalo Ltd

A Lampton company separate from the trading companies mentioned above is to change its name to Coalo Ltd. They say their operations are hampered by a high level ambiguity and confusion associated with the Lampton brand. Their senior management and Board using a brand framework selected the new name. Coalo is the latin translation for Nurture and Sustain. The related logo has a strap line' Making it Work' with vibrant colours that emphasise energy. Of course this will involve changes to the livery of the existing fleet, signage and uniforms. No cost is given for this exercise.

In brief

Drinking fountains

Back Common refurbishment. Delighted to learn that the existing water supply is live. The wonderful ornate taps, now missing, were taken away by our contractor for repair.
Turnham Green. Rebecca Frayn, chairman of the Friends of Turnham Green, has now got funding for a fountain and we hope to get funding for another.

Barnes Railway Bridge proposed footway

* We need to do a river survey pre-construction.
* Recently met at Waterloo station with Network Rail to get a BAPA (a basic asset protection agreement).
* Substantial funding received from TfL.

Case work

* Loads. Vermin, planning issues and parking queries.

Councillor John Todd

• Chiswick Area Forum: Tuesday, 25 June (papers will be published a week before)
• Chiswick surgeries: Every Saturday from 9.30am to 10.30am at Chiswick library, upstairs in a private room.
• Gunnersbury surgeries: First Saturday of the month from 10am to 11am at The Triangle Club, The Ridgeway, W3 8LN, usually a group discussion but privacy can be arranged.

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June 23, 2019