Lighting blunder costs £6 million

Thursday, February 05, 2009, 08:00

A 'flaw' that will cost council tax payers more than £6 million has been revealed after a six-year fight by a local politician.

Labour councillor Ian Robertson this week welcomed an admission by Walsall Council that its PFI contract with street lighting contractor Amey will cost an additional £6.25 million by the time it runs out in 2028.

A recent report for the neighbourhoods scrutiny and performance panel revealed that advertising on street lights in the borough had only brought in £8138.32 since 2003 when the council signed the contract with Amey.

The advertising was supposed to bring in £7 million over 25 years to help pay Amey, which replaced and now maintains 25,000 street lights.

A confidential clause in the PFI deal said the council would pay Amey if the advertising plan failed.

Cllr Roberston said that amounted to the company getting council tax payers' money for doing nothing.

"It was a very good contract for street lighting," he said.

"But it had this flaw in it and we are all paying for it now."

The report to the scrutiny panel says the projected income for advertising was only £750,000 by 2028 – leaving a £6.25 million shortfall.

Cllr Robertson, who represents the Blakenall ward, welcomed the publication of the figures and said the council had not always been so open.

"Councillors first learned the real cost when the information was put on 'pink' (confidential) papers and they were then made to hand them back in so they could be destroyed," he said.

At one point in his six-year fight he was told he could face suspension if spoke out, leading to claims he was being gagged.

Despite repeated requests, Walsall Council failed to comment.

















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