Report says council may have been too secretive over sale of Plymouth Citybus

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Tuesday, June 29, 2010
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This is Devon

A £19,000 report into the controversial sell-off of Plymouth Citybus has left city councillors still in the dark.

The council sold its 100 per cent shareholding in the bus company to Go-Ahead, a national transport company, after months of top-secret negotiations last year.

The sale attracted fierce opposition from Labour councillors and MPs, who stood shoulder to shoulder with union protesters.

Now the city council has been criticised by its auditors, Grant Thornton, for being too cautious over information it released during the negotiations.

In a report which cost the council £19,388, Grant Thornton says: "The council should consider whether it was too cautious over some of the information excluded."

Barrie Morris from Grant Thornton told the audit committee yesterday: "The project was very complex and done over a tight timescale.

"It was done in secrecy and perhaps the council was too cautious about giving out information."

Council officers said they had 'considered' Grant Thornton's findings and decided that in the context they were handled 'appropriately.

Councillor Tudor Evans, the Labour group leader on the city council, said: "It was both commercially and politically sensitive. But this council is a grown-up council and it has handled sensitive and confidential issues before.

"The council has to strike a balance between openness and commercial confidentiality.

"I don't feel able to endorse this report because I know I haven't been asked about the scrutiny process.

"I was at a scrutiny meeting where Councillor Ian Bowyer [Cabinet member for budget and finance] decided not to answer questions on the Citybus project.

"There were cases where paperwork wasn't available to us. I found that frustrating in holding the executive to account."

Mr Evans said he did not feel that Labour members had had their say.

Conservative councillor Jack Thompson said: "The auditors have come to the conclusion that there was too much information withheld, but what was the alternative? If there had been too much, it could have been a disaster."

Citybus was put up for sale in June 2009, and officers dealt with ten initial inquiries. That was whittled down to five companies which were invited to bid. Eventually Go-Ahead emerged as the winner, and the sell-off was approved by the full council in November last year.

The council set aside up to £946,000 to pay for the sell-off process. In the end it spent just over £670,000, a saving of £294,445.

Committee chairman Peter Berrow and Mr Evans agreed to hold a meeting to discuss what lessons should be learned from the Citybus sale.

In the meantime, the committee merely 'noted' the auditor's report.

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11 Comments

  • Profile image for This is Devon

    by David, Plymouth

    Wednesday, June 30 2010, 12:48AM

    “So our councillors are still in the dark...

    What I find worrying is that nobody is concerned or wants to comment on the vast sums of taxpayers money on this ?

    Ok then, let's spend another £20,000 on another report to put our councillors in the light...”

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    by when you growing that moustache pengelly?, plymouth

    Tuesday, June 29 2010, 11:50PM

    “Maybeeee, if we cut Pengelly's wages to £5.70 an hour, it would save us all alot of money. And then force her the decision over creating a high blood pressure problem in the traffic mayhem and paying £12 a day to park or the wonderful alternative that is Plymouth city bus our 'premier bus company for local people' (so local it barely serves the Royal parade) at a bargain price of £52 per month...How's the tache Viv?”

  • Profile image for This is Devon

    by Hermes (and Thelemia), Plymouth

    Tuesday, June 29 2010, 11:31PM

    “Plymouth Corporation Transport
    My Victorianed Plymouth Eden
    Council, Council, haven't you done well again; a thing

    In subtext in your speech; never lies such more undone
    Guardian indeed in will in Plymouth's trust
    Every ancentral inheritence in breathren breath gone

    Sold you say; and at what price did rack and pinion cage fetch?
    Secrets, in kept, closed walls towered economy regret
    Drink, drink! Says land ahoy Drake: transport my honour ashore

    Barrelled rum in first thirst, Council?
    Et your friends? Fed off poor?
    Brunel, success, a tramway in Regina Regloria

    A Council morte de future vision dark
    400 years to last in our Plymouth City?
    Where art in 100 years; Molly Malone housed sweet pretty

    All marshes, in watch, towered brethren, unitary town, gated East
    In Plymouth, united, water, food, transport
    Guardianed each Pilgrim argyled each least
    :;.shoulder”

  • Profile image for This is Devon

    by It was a done deal., Plymouth

    Tuesday, June 29 2010, 8:22PM

    “Isn't it strange that even before a decision had been made re. the sale of City Bus, Go Ahead had "loaned" them umpteen double deckers!! mmmm!”

  • Profile image for This is Devon

    by johnno, pennycomequick

    Tuesday, June 29 2010, 8:14PM

    “The sale of City Bus was one big sham , the leader of this Tory Council ignored the people of Plymouth , that wanted to keep this valuable asset ,
    Yet still she was voted in at the last local elections , as for the voters of Plymstock , I hope you never get your swimming pool , you keep her in power”

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    by ada, plymouth

    Tuesday, June 29 2010, 5:30PM

    “could someone explain to me why they our going to alter the times of the six thirty bus from whitliegh sat mornings to dockyard when knowing the workers start at seven thirty . the new times will be six fifty five it will not be in time this means my son will have to rely on his dad to get himto work adding his dad is seventy two summer ok but not in winterdont these bus people find out the works starting times wake up city bus”

  • Profile image for This is Devon

    by David, Plymouth

    Tuesday, June 29 2010, 5:11PM

    “Keep Calm and Carry On”

  • Profile image for This is Devon

    by CB, PLYMOUTH

    Tuesday, June 29 2010, 4:07PM

    “Secrecy REALLY!! I am shocked.
    It is obvious then as it is now that the day it was revealed that Pengelly had ordered a report looking into the value of City Bus SHE and nobody else had decided to sell. No objection, protest or petions were going to swerve her from the course that would lead to her getting the money she needed for the Life Centre. All so she could get her name on a corner stone.

    She promised in her election campaign to LISTEN to the people of plymouth. LIES
    She promised that City Bus was in SAFE HANDS with a Tory council.LIES

    She walked out of meetings where Citybus Union reps asked her questions and refused to turn up to other public meetings.

    When CityBus was sold we were told there would be no job loses, LIES

    no loss of service LIES

    Perhaps when the centre is opened the corner stone should say

    THIS STONE WAS PLACED BY COUNCILLOR VIVIAN PENGELLY DURING BUILDING OF THE LIECENTRE”

  • Profile image for This is Devon

    by ian, Plymouth

    Tuesday, June 29 2010, 3:02PM

    “There should not have been any secrecy at all, when it comes to the sale of a public asset. Only dodgy deals need secrecy dare say the whole truth of who has personally benefitted from this sale in one way or another will eventually come out. Time will tell!”

  • Profile image for This is Devon

    by David, Plymouth

    Tuesday, June 29 2010, 10:09AM

    “These figures are outrageous, £690,000, can we have the report and the breakdown of the expenditure for the £670,000 and £19,000.

    This is after all public money they are spending / waseing !!. Perhaps the council can make these available on their website ?”

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