On 8 June, 2012, the District Auditor issued a public interest report on the awarding and management of the Highways and Engineering Services Contract, under Section 8 of the Audit Commission Act 1998.

Attached is a report of the Acting Chief Executive, to which is attached the Public Interest Report. Council is required to consider the public interest report; and is invited to consider the recommendations set out in the Acting Chief Executive’s report.

The Council received and considered the Public Interest Report in relation to the Highways and Engineering Services Contract (‘PIR’) dated 8 June 2012.

The Leader of the Council made the following statement in relation to the PIR:

“ This report details significant failings in the corporate governance surrounding the award of the Council’s Highways and Engineering Services contract (HESPE) in 2008. I would like to begin by thanking the District Auditor for all the work that he and his team have carried out in concluding this report. It is rare for a Council Leader to welcome a Public Interest Report – particularly one that deals with concerns that go to the very heart of the Governance of Wirral Council, but I do. This Council has received a number of critical reports over the past few years – I will not detail them again. They are familiar to us all.

What is clear is that collectively we have failed to face up to our mistakes. We have not in the past viewed critical reports, or indeed concerns raised by whistleblowers, as opportunities to improve. We have produced detailed action plans that we have failed to implement properly, and have failed to ensure those who need to are held to account.

It is my duty, together with the other Party Leaders and every single member of this Council to ensure that this report is dealt with very differently. I take this opportunity to thank Jeff Green and Tom Harney for their co-operation and support in dealing with this matter.

This Council meeting is not ‘business as usual’. It’s important that the way in which we deal with this report sends a clear message that the culture of this organization is changing. In the future we will learn from our mistakes. We will put the interests of our residents at the very centre of all that we do. We will respect those who complain, treat them with respect and act on and learn from what they tell us. Item 8 on tonight’s Agenda deals with how we will proceed to investigate further the role of our Statutory Officers in this matter. It is important however to remember that the action taken to suspend four senior officers in connection with issues raised by the PIR is a neutral act that will enable the Council to investigate matters fully and properly. It would not be appropriate to discuss this report at any length at this time given the rights of the individuals concerned. Suffice to say that those who should be held accountable will be. I therefore wish to move the following resolution which the Head of Legal & Member Services has circulated to all members:

Firstly, that Council acknowledges and accepts the findings and all the recommendations set out in the Public Interest Report.That we refer the report for further consideration to the Executive, appropriate committees and sub-committees of the Council and the Council’s Improvement Board (or any other relevant body considered appropriate by the Executive).

That Council agrees to amend the terms of reference of the Improvement Board to include consideration of the Public Interest Report as part of our Improvement Plan, and assist the Council as necessary to address and deal with the findings and recommendations set out in the PIR.

That we note the actions already taken by the Council in relation to the PIR and our commitment to take all necessary steps to improve our corporate governance arrangements.

In closing, when I became Leader of the Council, I made it clear that in order to move the Council forward it was necessary to address honestly and openly where failings had occurred in the past. That is why, following discussions with Jeff Green and Tom Harney, I have already taken appropriate actions. These actions were difficult for me personally, but I took them because I believe they are in the interests of the Council and this Borough. As Leader, I am determined that, working in partnership with all elected members and the Improvement Board, our Improvement journey gathers pace. The appointment of Graham Burgess, our new Chief Executive, ratified earlier by Council, is a key step in this process. I know that the other two Leaders wish to make a statement, but I would commend this motion to Council and hope that it can be endorsed unanimously”.

The following resolution was moved and agreed:

Resolved (unanimously) – That Council

(1)  acknowledges and accepts the findings and recommendations set out in the Report in the Public Interest: Highways and Engineering Services Contract;

(2)  refers the PIR for further consideration to the Executive and appropriate committees and sub-committees of the Council and to the Council’s Improvement Board (or any other relevant body/group considered appropriate by the Executive);

(3)  agrees to the amendment of the terms of reference of the Improvement Board to include consideration of the PIR as part of the Improvement Plan, and assist the Council (as necessary) address/deal with the findings and recommendations set out in the PIR;

(4)  notes the actions already taken by the Council in relation to the PIR and the commitment of the Council to take all necessary steps to improve its corporate governance arrangements.