Council facing £6m bill over blunder
More than £6 million of taxpayers' cash is set to be forked out to a private firm following a blunder by Walsall Council over a street lighting contract, it emerged today.
More than £6 million of taxpayers' cash is set to be forked out to a private firm following a blunder by Walsall Council over a street lighting contract, it emerged today.
The authority is to pay compensation to Amey, one of the country's biggest private finance contractors, after the planning committee did not allow it to place adverts on lamp posts.
The situation was today described as being the result of "plain incompetence" and comes at a time when the Tory-run council is looking to save £12.8 million by cutting jobs and services.
Labour councillor Ian Robertson said: "This has simply come about because of a mistake in the writing of the contract and just plain incompetence.
"I am glad this has finally come out in public and I think it annoyed a lot of people that the council wouldn't admit how much this was likely to cost taxpayers in Walsall.
"It represents yet more bad news in terms of the council's finances and the outcome is certainly bleak.
"Council officers are paid a lot of money not to make mistakes like this, but it is the council taxpayer that suffers when they do."
The situation arose following a contract with Amey in 2003 to replace the borough's 25,000 street lights.
The council agreed at the start of the tie-up that Amey would rake in £7 million through advertising on lamp posts as part of the same deal.
Despite this, the planning committee refused several applications from the company to put up signs on lamp posts and only £8,138 has materialised so far.
A clause in the deal states the council must compensate Amey if the advertising plan did not work.
According to a new report, this could mean an expected £6.25 million will be drained from the accounts by the end of the 26-year agreement.
But Councillor Adrian Andrew, cabinet member for regeneration, said today the figure was "misleading".
He said: "The contract lasts for 26 years and we expect an upturn in the advertising industry that will radically alter that eventual final figure."
By Richard Williams
