Saturday, 27 September 2008

Ministers, Civil servants PFI gravy train

Ministers and Civil servants on the PFI gravy train online only


Alan Milburn, Health Secretary from 1998 to 2003

Alan Milburn is listed in his declaration of members’ interests at the House of Commons as a director of Covidien, which describes itself as “a $10bn global healthcare products leader”. He is also a member of Lloydspharmacy’s Healthcare Advisory Panel. Milburn is an advisor to the European advisory panel of leading private equity firm Bridgepoint, which specialises in healthcare investments. Milburn declares his income from these senior appointments as over £30,000 a year from Bridgepoint; over £25,000 from Lloydspharmacy; nothing listed for Covidien; and a further over £20,000 as an advisor to Pepsico.


Charles Clarke Education Secretary from 2002 to 2004 Home Secretary from 2004 to 2006

Charles Clarke a non-executive director of the LJ Group, which supplies teaching materials and equipment to schools and training services, including through the Government Building Schools for the Future programme, which Clarke initiated as education and skills secretary in February 2004. Clarke is a consultant to KPMG on public sector reform, for whom he wrote a booklet promoting the use of co-payments – service user contributions – to the NHS and other public services.

He also advises Charles Street Securities investment bankers/private equity fund managers. In addition, Clarke is a consultant to Beachcroft LLP, a legal firm that specialises in advising PFI/PPP deals.


Patricia Hewitt Health Secretary from 2005 to 2007

Patricia Hewitt is now senior adviser to Cinven, a private equity-backed private hospitals and healthcare group (payment, over £55,000 pa). She is also special consultant (payment over £45,000 pa) to AllianceBoots, which is owned by private equity firm KKR. In addition, Hewitt is a director of BT Group, which is providingbusiness outsourcing, IT and telecoms services to a range of public bodies. Hewitt established the telecoms and media regulator Ofcom in an earlier job as secretary of state for trade and industry and was in charge of the National Programme for IT – in which BT won one of the largest contracts – while secretary of state for health. According to BT’s submission of details to the US Securities and Exchange Commission, Hewitt will be paid an initial £60,000, but with an expected increase as she takes on more responsibilities, in return for working at least 22 days a year.


David Blunkett Home Secretary from 2001 to 2004 Education Secretary from 1997 to 2001 and Work and Pensions secretary in 2005

David Blunkett is now an advisor on business development to A4e Ltd, for which he is entitled to be paid at least £25,000 a year, but which (according tohis Parliamentary declaration of interests) he has not yet been paid. A4e describes itself as a “market leader in global public service reform”.


Lord Warner Health Minister from 2003 to 2007

Lord Warner had specific responsibility for reform of the NHS – overseeing the introduction of more private sector involvement. Since he stepped down from that role he has taken on a directorship with UK HealthGateway and is chairman of the Government Sector Advisory Panel for Xansa plc – a leading provider of business outsource services to public bodies and holder of the £1bn NHS’s shared business service centre contract, providing accounting and finance services to the NHS. Lord Warner is also an advisor to Byotrol (a provider of micro biological health treatments), Apax Partners Worldwide (a private equity firm, with strong connections to the Government and which has invested heavily in health providers seeking contracts with the NHS), Deloitte (an accountancy and consultancy firm, with large incomes from government agencies) and DLA Piper (a legal firm, which, like Deloitte, specialises in advising on private contracting to the public sector). Lord Warner remains influential within the NHS as chair of the NHS London Provider Agency.


Hilary Armstrong secretary of state for local government from 1997 to 2001 for the Cabinet Office from 2006 to 2007

Hilary Armstrong has recently taken a position as chair of wastecompany SITA’s advisory committee.


Nick Raynsford a Local Government and Housing minister from 1997 to 2005

Nick Raynsford is now non-executive chairman of local authority recruitment agency Rockpools PLC and of Hometrack, a lettings service.


Ian McCartney Trade Minister from 1997 to 1999 and again from 2006 to 2007

Ian McCartney is a senior adviser to the US Fluor Corporation, an energy contractor that is believed to have ambitions to win nuclear clean-up contracts in the UK. McCartney is paid at least £110,000 a year for his advice. The former Department of Trade and Industry had responsibility for energy policy.

Washington fields mercenary army in Iraq

It also revealed a large body of mercenaries operating throughout Iraq. ... Fluor, won a $1.1 billion (£617 million) deal last month to help restore Iraq’s ...
www.wsws.org/articles/2004/may2004/merc-m05.shtml

Stephen Byers Trade and industry secretary from 1998 to 2001

Stephen Byers is now non-executive chairman of water treatment company ACWA and Ritz Climate Offset Company.


Richard Caborn Trade minister from 1999 to 2001

Richard Caborn is now a consultant to AMEC assisting them with their work in the nuclear industry. His payment for this is at least £70,000 a year. He is also a former sports minister and now a consultant to the Fitness Industry Association, for which he is paid at least £10,000 a year.


Brian Wilson Energy minister from 2001 to 2003

Brian Wilson is now a non-executive director of AMEC Nuclear and is UK chairman of the renewables company, Airtricity.


Stephen Ladyman transport minister from 2005 to 2007

Stephen Ladyman is now an adviser to It is Holdings, a company selling traffic information, for which he is paid at least £10,000 a year.


Frank Field welfare reform minister from 1997 to 1998

Frank Field is now a director of Medicash, which operates a healthcare cash plan.


Sir Michael Barber former head of the Prime Minister’s Delivery Unit

Michael Barber oversaw publicsector reforms in health, education, transport, policing, the criminal justice system and asylum/immigration. He is now the expert partner in consulting firm McKinsey’s Global Public Sector Practice.


Baroness Sally Morgan

Sally Morgan was a close aide to Tony Blair when he was Prime Minister and she was director of government relations in Downing Street and subsequently was made a minister and a member of the House of Lords. She is now a director of the largest care home operator in the UK, Southern Cross, which has expanded substantially as a result of government reforms to the structure and funding of social care. She is a member of the advisory panel of Lloyds Pharmacy, which is expected to bid for contracts under the Department of Health's £1.25bn

Alternative Provider Medical Services programme. Morgan is also a director of Carphone Warehouse.


Sir Gerry Loughran

Sir Gerry Loughran was head of the Northern Ireland civil service from 2000 to 2002. After retiring he took on a number of private sector directorships. These included Phoenix Natural Gas, which is owned by the Terra Firma private equity firm, and he soon became

chairman upon joining the board. While a senior civil servant, Loughran chaired the Strategy 2010 project,57 to sell and leaseback the civil service property portfolio. After leaving the civil service, Loughran became a director and chairman of Partenaire, where he led the company’s (unsuccessful) bid to win the £2bn Workplace 2010 contract that resulted from Strategy 2010.


Lord Wilson of Dinton

Lord Wilson of Dinton was, as Sir Richard Wilson, head of the Home Civil Service and secretary to the Cabinet – as such he had the overall responsibility for seeing that the Prime Minister’s policies on public sector reform were carried out. He was afterwards appointed a director of Xansa (now part of the Steria group), one of the main providers of business process outsourcing services to the public sector.


Lord Turnbull

Lord Wilson’s successor as head of the Home Civil Service was Sir Andrew Turnbull, now Lord Turnbull. Lord Turnbull’s current directorships include British Land (active in the PFI/PPP market), Prudential (also active in the market) and Frontier Economics (which advises private sector clients on public sector reform). Turnbull is also chairman of Brevan Howard Global, an investment management company.


Sir Peter Gershon

Sir Peter Gershon was brought in by The Treasury in 1998 to reduce government expenditure and improve efficiency – he conducted a series of reviews in the period to 2004. He became a civil servant in 2000 as founding chief executive of the Office of Government Commerce. Sir Peter is now executive chairman of Vertex, one of the largest suppliers of business outsourcing services to the UK public sector. He is also non-executive chairman of the General Healthcare Group, the largest private healthcare group in the UK – owned by the private equity group Apax Partners and the South African healthcare company Netcare, which has ISTC and other supply contracts with the NHS. In August 2008 Sir Peter completed a review of ICT procurement policy for the Australian government.58


Chris Woodhead

Following his period as chief inspector of schools, Chris Woodhead set-up the Cognita group of independent schools, using funds supplied by a private equity firm, Englefield Capital.


Sir Steve Robson

Sir Steve Robson was one of the most controversial senior civil servants of recent years, who oversaw the privatisation of British Rail on behalf of Sir John Major. Robson went on to become second permanent secretary at HM Treasury until he retired in 2001. During his earlier career, he was seconded to 3i while remaining a civil servant. He oversaw the Government’s policy on PPPs while serving the current Government at the Treasury. Since retiring, Sir Steve has been a director at Partnerships UK, JP Morgan Cazenove (a global

bank), Xstrata (a mining group) and the Royal Bank of Scotland (one of the leading investors in PPPs) and is a member of the Chairman’s Advisory Committee at the accountancy and consultancy firm KPMG (a leading adviser to PPP and PFI schemes).


Simon Stevens

Simon Stevens was Tony Blair’s health advisor within 10 Downing Street and, with Alan Milburn, was the key architect of the NHS reform programme. He is now chairman of UnitedHealth UK, which has won contracts with the NHS to manage and advise primary

care trusts. The company’s executive director, previously chief executive, was, until late 2007, Dr Richard Smith, a former editor of the British Medical Journal. He is now working for UnitedHealth in the US.


Tom Granatir

Another US-based healthcare group with serious aspirations in the UK is Humana Europe. Its director of policy and research in the UK is Tom Granatir, who was seconded for six months to the NHS in its Health Inequalities Unit and was then seconded on a separate assignment with the influential health think-tank, the King’s Fund.


Darren Murphy

Darren Murphy was a special advisor to Prime Minister Tony Blair from May 1997 to September 2005. After a period as head of government relations and external affairs for AstraZeneca UK Murphy became managing director at the London office of lobbying firm APCO whose clients include most of the private healthcare firms bidding to run Independent Sector Treatment Centres.

Adam Ingrams

Former long serving armed forces minister Adam Ingrams appointment as £50,000 a year consultant EDS, is just reward for 6 years at the MoD helping booster the firms buisiness.


ED's notable successes in recent years include a £250m contract to take the forces payroll (with predictably disasterous results so far) membershiop of the Metrix consortium negotiating a £12bn (and rising) PFI deal to privatise military training and a 4bn contract won in 2004 to overhaul all military and civilian defence IT......

Monday, 30 June 2008

leadership challenge over St Athan policy

The battle for the presidency of Plaid Cymru kicks off with the party’s three MPs leading the charge to dislodge Dafydd Iwan from the post. Dr Iwan, a keen advocate of Welsh Independence, will face a challenge from Plaid’s leader at Westminster, Elfyn Llwyd.

I am puzzled by the support of SCOTTISH First Minister Alex Salmond for Elfyn Llwyd’s. Mr Llwyd said the party “needed to be singing from the same hymn sheet”, suggesting there were differences between MPs and the presidency over the St Athan military base in the Vale of Glamorgan – supported by Plaid MPs but opposed by the party’s presidency.

Does Alex Salmond support the government policy made in Westminster to privatise military training? Would he support a policy which would hinder the future Independence of Scotland, I don't think so. I would be surprised that anyone who wants more independence for their country would submit willingly to a policy of intense militarisation and happily welcome the prospect of a regime like Burma for instance, on paying the right fees, get its soldiers trained here.
Would Alex Salmond agree with the MoD that the training of private contractors and foreign armies is actually about making a stable world for our children’s children?
Private Eye (no 1213) reports a confidential “post meeting readout” of deliberations, on the St Athan project, led by deputy chief of defence staff (personnel) Vice Admiral Peter Wilkinson exposes “major AFFORDABILITY issues” requiring a “realistic contingency plan”

Hinting at serious difficulties on the deal, the “affordability gap” could not be disclosed even to the project board as it was too “sensitive”. More alarming still was a list of 15 significant risks with the project, training that fails to meet requirement of operational commands and is not of a sufficiently high standard.

Existing defence trainers appear unwilling to move to a new defence academy at St Athan, south Wales, from their existing bases (72% have said they won’t)

Certain risks are deemed “intolerable”. The scheme depends on missing millions from the sale of sites at Arborfield and Bordon where if planning permission for housing isn’t obtained soon, sites will be much less valuable, “impacting on the affordability of the project as a whole”.

New government accounting rules are due to bring PFI investments on balance sheet leaving the deal losing its off balance sheet PFI magic. The consequence of this would be to make the project unaffordable.

I wrote to Elfyn Llwyd and in Feb this year he replied rather unsatisfactorily; "Plaid Cymru recently debated St Athan in the context of its Defence Policy at National Council. After a very interesting and detailed debate it was decided that this would be a constituent of a conventional defence policy. My personal view is that, although Plaid is not a pacifist party many Plaid members hold that view. I am not a pacifist as such and believe that Wales should play its full part in defending as opposed to conducting any aggressive military policy." http://stathanmilitaryacademypoliticians.blogspot.com/search?q=+Elfyn+Llwyd%2C+

He hasn’t raised this matter in parliament. He hasn’t raised any of the issues above despite him claim that he is anti privatisation at least.

Sunday, 16 March 2008

Inexperienced politicans & Rhodri Morgan

Inexperienced politicians and the messes they make By Matthew Sinclair She counts among her "achievements" Railtrack's renationalisation, the selling of Qinetiq for a fraction of its true value, and the disastrous creation of Metronet. This one-woman disaster zone has cost the taxpayer several hundred ...The TaxPayers' Alliance - Better... - http://tpa.typepad.com/bettergovernment/

Best quote ever from House of Commons questioning of civil servants involved in Quinetiq sale. MP Richard Bacon: "MR WOOLEY ARE YOU A CHARTERED ACCOUNTANT ?
"Woolley: "I AM NOT"
Bacon: "ARE YOU A QUALIFIED FINANCIAL PERSON OF ANY KIND ? DO YOU HAVE ANY FINANCIAL QUALIFICATIONS ?"
Woolley: "I DO NOT HAVE ANY FINANCIAL QUALIFICATIONS"
Bacon: "WHAT IS YOUR JOB ?"
Woolley: "I AM THE FINANCE DIRECTOR OF THE MOD"

Rhodri Morgan - Don’t worry about Plaid Daily Post, UK - 18 Feb 2008
He criticised Plaid vice president and MEP Jill Evans for attacking the proposed multi-million pounds Defence Training Academy in St Athan, south Wales, ...So who is Rhodri listening to?

Friday, 7 March 2008

massive privatisation of military training -

Bloglith Jill Evans / Jill Evans' Blog
By Cangen Bontnewydd Branch, Plaid Cymru(Cangen Bontnewydd Branch, Plaid Cymru)
Justice Group. The subject was the proposed military training academy at St Athan. This is a massive privatisation of military training - putting it into the hands of private companies. You can read about the issue in more detail in the ...
Plaid Cymru, Cangen Bontnewydd Branch - http://plaidcymrubont.blogspot.com/

Wednesday, 5 March 2008

Paul Murphy St Athan project nothing to do with him!



Q. Did the 'Wales Office' not have to approve the St Athan PFI?
Paul Murphy : Written Answers - Wales: Departmental Private Finance Initiative (3 Mar 2008)
The Wales Office has not initiated or approved any private finance initiative projects in the last
threeyears.

A. Its not a Welsh PFI. Remember that MC3 package 1 solution was based around Bordon and Cosford and Portsmouth. It was instigated by Mod with Ministerial backing. However the Welsh politicians did help Metrix win the bid by hard lobbying and the WDA provided human resources to METRIX.

Not in our NAME!

BBC NEWS | Wales | Wales bid for UK military academy
Politicians have been in London to make the case for St Athan in the Vale of Glamorgan as the location for a new pan-forces military academy. ...not in my name!

http://news.bbc.co.uk/1/hi/wales/4825632.stm

Same old lies....5,500 jobs ...no way

Speaking at the launch of the bid by Metrix in London on Monday, economic development minister Andrew Davies said the Welsh Assembly Government was "fully supportive".
The creation of 5,500 jobs and with 10,000 trainees being based at the site are estimated to be worth around £58m per year to the area

Even John Smith of pork barel fame and Metrix lacky doesn't agree with those figures.

Metrix has used the most conservative calculations to show that it will create at least 1,500 jobs in the wider community of my constituency of Vale of Glamorgan and south Wales generally.

Saturday, 1 March 2008

Not so many jobs then...John Smith?

I notice that the job figures are going down.. ...down...down...John Smith MP paid for 4 newspaper pages to be published (funded by his parliamentary communications allowance) in the Glamorgan Gem on the 31st Jan 2008 proclaiming that there was to be 5,500 jobs....and has been saying this time and time again since or before Jan 2007. Now it is 3,000 jobs ...maybe ...and we are to believe Metrix???
Will he now apologise for misleading the people of Wales and in his constituency? Will he pay to publish a new more accurate account of the number of jobs available?? Now John Smith MP says we must be careful?....a little late for that noww that the welsh people have been repeatedly told that there will be 5,000 + jobs and that is the basis for ALL the politicians backing it. Time to ask some questions ...the people of Wales deserve better.

John Smith MP in the House of commons
on Thursday 28th Feb says there are only 3,000 jobs...
"However, I shall give the revised figures. There will be roughly just over 1,000 trainers' jobs—in training design and general training provision—just over 1,000 support jobs for training on the site; and 1,000 full-time military jobs on the site. That is approximately—we must be careful—3,000 jobs.

Metrix has used the most conservative calculations to show that it will create at least 1,500 jobs in the wider community of my constituency of Vale of Glamorgan and south Wales generally. Metrix uses a multiplier of 0.5. That means that every new military job—uniform or civilian—that comes to St. Athan will create half a job in the community. The company therefore estimates 1,500 jobs and a total of 4,500. That is down from the original total of 5,500 but I stress that the estimate is conservative. The usual multiplier for military bases that move into an area and provide work is between one and a half and three times the number of military jobs.

The number of jobs that we get in Wales depends on us, not Metrix or anybody else. It depends on our preparedness to take up the jobs and the opportunities that come our way as a result of the process. If one read the BBC website on the day of the announcement, one would have believed that we had lost out. The calculation that I explained does not include the training of at least 6,500 military engineers every year at St. Athan. The jobs that that will create are not even factored in. It is a huge opportunity."

Note that Raytheon armsdealers is a key partner of the Metrix consortium - They mislead people in Northern Ireland ....
Raytheon managers have been in collusion with Invest Northern Ireland officials to evade and ignore the policies of Derry City.
Representatives of the SDLP and Sinn Fein, have repeatedly said that Raytheon gave them explicit assurances that there would be no arms-related production at the Derry plant. The two parties have explained that it was on the basis of these assurances that they welcomed Raytheon to the north west. It is now clear that Raytheon wasn't telling the truth.

Are we sure they are telling the truth here to the Welsh people???

Contact John Smith MP smithj@parliament.uk


Friday, 22 February 2008

PCS ST Athan Evidence to the WAG Finance Committee

Thurs 21 st Feb 2008 - The Assembly's finance committee is looking as the role of private investment in public services. It is approaching the subject with an open mind and has no agenda, other than to establish whether services remain operational or at risk and whether they are value for money or not.

A response to the Assembly Finance Committee’s Inquiry into Public-Private Partnerships

FIN(3)-04-08 : Agenda

Finance Committee The agendas, papers and transcripts for each meeting of the Committee can be found here.

The Defence Training Academy

FIN(3)-03-08 : Paper 3 - written evidence submitted to PPP Inquiry by PCS

Read the whole report here
A recent example of a central government PFI deal affecting Wales is the award to the Metrix Consortium of a £19 billion contract to provide training for the armed forces at St Athan in the Vale of Glamorgan. This consists of a programme to:
  • Rationalise defence training across the Ministry of Defence (MoD);
  • Reduce the number of sites where training is conducted;
  • Use a PFI model to build the new training infrastructure to replace the current training and accommodation facilities; and
  • Privatise training support and delivery.

It has generally been welcomed in Wales because of the prospect of thousands of jobs coming to St. Athan and the surrounding area. There are, however, some significant question-marks over the project.

The extent of the jobs gain and savings

The Metrix project originally consisted of two separate packages, which together accounted for an estimated total of 4,000 training staff who would have been in scope for transfer to the private sector, and relocation to St. Athan from numerous locations across the country. It was announced recently, however, that 'Package 2’ - covering logistics, security, intelligence, personnel and policing - is no longer considered economical and has been removed from the scope of the project. This accounts for around 2,000 staff and more sites than Package 1 and therefore calls into question the £2 billion savings that the deal was supposed to deliver

Loss of experience

PCS is extremely concerned about the assumption that the staff providing the services within and around facilities should automatically transfer. In discussions with the MoD, PCS has consistently raised concerns over the risk to defence training of instructional and support staff not transferring to the preferred bidder. Recent transfers indicate that between 80% and 90% of staff will not relocate. Whilst the MoD recognises this as a risk, it has not addressed the scenario, nor indeed offered any solutions. Instead the MoD states that such a risk will transfer to the bidder and is therefore not the concern of the department.

The belief that a single training specialist included in the bidding consortium can deliver the same high standard provided by the current training delivery staff is questionable. If large numbers of training staff were to decide against moving to the private sector, as our indicators suggest, we believe it is unlikely that the bidders could replace them with equally experienced instructors. The project therefore raises the spectre of an incalculable skills drain in specialist training.

Lack of accountability

PCS is concerned that the department will not to be able to control the costs of the project. The contract’s length and the fact that the first breakpoint - unprecedentedly - will not be until 15 years into the contract, will almost certainly lead to spiralling costs. Numerous factors could influence training requirements, including future deployments, new equipment and the quality of new recruits. The changing nature of Britain’s defence response will also impact upon the training requirement, and for these changes the private sector will exact a high financial price. A recent NAO report into MoD contracts noted that over 50% of contracts had to be altered due to changes in specification. In a twenty five year contract in an area as fast moving as defence and its associated training requirement, it is obvious that a large number of contract amendments will be made.

Thursday, 21 February 2008

FIN(3)-03-08 : Agenda

FIN(3)-03-08 : Paper 1 : written evidence submitted to PPP Inquiry by TUC

FIN(3)-03-08 : Paper 2 : written evidence submitted to PPP Inquiry by Unison

FIN(3)-03-08 : Paper 3 - written evidence submitted to PPP Inquiry by PCS

FIN(3)-03-08 : Paper 4 : Written evidence submitted to PPP Inquiry by NUT Cymru (pdf, 290kb)

FIN(3)-03-08 : Paper 5 : written evidence submitted to PPP Inquiry by WLGA (pdf, 116kb)

FIN(3)-03-08 : Paper 6 : Analysis of written evidence received for PPP Inquiry (pdf, 91.7kb)