Is Government Reporting Any Good?

 Aberdeen City, Featured, Opinion  3 Responses »
Nov 062012
 

The Iraq war was rubber-stamped despite the wishes of protesting millions; the justification that then Prime Minister Tony Blair used was a report. This report had been notoriously ‘sexed up’ to the extent that the Americans refused to endorse it. Blair aide, the foul-mouthed Alistair Campbell, was one of the main editors of this ‘dodgy dossier’.  Blair stood by its robustness. We all know better now. Suzanne Kelly examines the quality standards of the reports on which life-changing decisions are taken.

Town House1
Closer to home, what kinds of reporting standards are we seeing? Very poor ones, I’m afraid.

A report prepared for Aberdeen FC’s stadium plans for Loirston included a lengthy commentary from MSP Brian Adam, who favoured the project.

Labour MSP Richard Baker’s comments against the stadium were excluded from this report, leaving it unbalanced. At the time, Kate Dean first insisted that Baker missed the deadline, but Baker proved otherwise. Dean later apologised, but by then, the hearing was long finished, and planning permission was granted.

PriceWaterhouse Cooper were hired as consultants for the City Gardens Project. They were paid out of public funds and Scottish Enterprise was involved in the invoicing arrangements.

PwC used a very small sample of business people in its research, yet somehow came to the conclusion that 6500 permanent new jobs would be created by the Granite Web and £122m would flow into Aberdeen every year until 2023, this also due to the Web. These figures were seized on by Vote for the City Gardens Project during the referendum and printed as if they were factual in VftCGP literature.

PwC did quite handsomely from the consultation (£41100 in March 2010, for example), and might well have gained further work from SE, the Aberdeen City Gardens Trust or other involved party, had the Web gone ahead.

When questioned as to the appropriateness of their projections being used in an advertising campaign during the referendum, PwC declined to comment, saying the work had been done for ‘a private client’ – despite the taxpayer picking up the bill.

Had the reports using these figures to justify the Web included further background on the statistics used, and details of the money already paid to PwC? For purposes of transparency and accuracy, one would hope so.
See:  PwC Invoices To Aberdeen Council 

The report sealing the fate of Tullos Hill’s roe deer and many of its other former flora and fauna, was created by the City Council’s Peter Leonard, a senior civil servant in Housing, and by CJ Piper & Associates, an entity related to one Chris Piper, the man who stood to gain tens of thousands of pounds if Phase 2 of the Tree for Every Citizen scheme went ahead.

The report is riddled with bias, not least of which is the assertion that objections to the cull came from a ‘small but vociferous minority’. In reality, 2,500 people signed a petition handed to Aileen Malone, and three community councils representing tens of thousands of citizens, and animal charities including Animal Concern Advice Line and Scottish SPCA condemned the cull.

Piper made some £44000 from the tree scheme. Should the report have noted his obvious financial interest? Definitely.
See: Piper Report re. Tullos Hill: Page 48

It would be bad enough if this kind of bias was an isolated event; it is not. We recently saw a report concluding that elected councillors were treating the city’s administration in a ‘bullying’ manner. The report also claims that councillors don’t fully understand what the administration does.

It is wholly one-sided, despite its assertions to the contrary. If it had been thorough, it surely would have picked up on the many failings of the unelected senior administration, such as the dubious reports going out from their departments.

Councillors on committees will all tell you that they have to make their votes based on the reports before them – reports that are almost all prepared by the administration. Most of these reports are required to adhere to values which have all but lost their meaning. Reports have to relate to ‘vibrant and dynamic’ aspirations, have to prove the programme in question will deliver ‘value for money’, and so on.

From national ‘sexed up’ reports to those on local issues, information given to those who have to vote on their contents must  become more accurate and details of any consultants employed and those involved in preparation must be included in the contents.

At present, Aberdeen’s reporting system relies on a formula which is far from perfect.

There is always an opening section which requires the writer to say whether or not the proposal fits with ‘vibrant/dynamic’ and other archaic criteria. The report writer is supposed to indicate whether or not there are financial implications. In many cases, the financial implications are overlooked.

For instance, we were promised that the Tree for Every Citizen scheme was ‘cost neutral’. Even when the primary report’s author Pete Leonard surely realised the scheme was not cost neutral (ie when the £43800 refund was demanded for the failure of Phase I and when no sponsors came forward to pay for  Phase 2 and its deer cull), no correction was publicly issued or sent to councillors on the Housing Committee.

The failures are mounting up.

Perhaps it is time for report writers to pay less heed to the existing report framework’s demands for rhetoric about ‘vibrancy’ and the like, and be required to ensure that all future reports include a form along these lines:

Preparers

Internal Preparers

  • Author(s)
  • Editor(s) (if any changes made to original author’s report)

External Preparers

  • Name
  • Company
  • Company type: (sole trader, limited company, PLC)
  • Company registration no

Conflict of Interest Issues

  • Financial
  • Fee paid for assistance, consultancy, preparation of this report to date
  • Any additional fee to be paid specific to this report
  • Is there any likelihood the external preparer will be hired for further assistance if this report and/or its recommendations is accepted?
  • Estimate of the extent of further earnings the preparer could earn from acceptance of this report and/or its recommendations

Other

  • Does this report contain any statement or input from a political party or politicians?
  • If so, have other parties been offered an opportunity to give their input?
  • Does the author, editor or preparer have any personal interest in the issues contained in the report?

Exclusions

  • Has the editor deleted any substantial part or parts of the original report? (if so, these must be listed)
  • Does this report cover all of the known, relevant factors pertaining to the issues?

Until we can rely on the information in the reports going to our elected officials, and the impartiality of those involved in preparing them, we will continue to have a flawed system subject to abuse. It’s time for a ‘vibrant and dynamic’ overhaul of our city’s reporting standards – if not the country’s.

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Union Terrace Gardens – The Big Picture

 Aberdeen City, Articles, Community, Environment, Featured, Information, Opinion  No Responses »
Apr 062012
 

If you are of the opinion that the City Garden Project controversy was all about what flavour of city centre park Aberdeen should have – think again. There seems to have been a much bigger picture involved here, and the politics are murky.  Mike Shepherd writes.

The power of the print media in shaping opinion

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The public referendum has been held, and the City Garden Project won by the smallest of margins: 52-48%. Feelings are still poisonous in the city, as it is clear that a marginal result was swung by dubious means.

On the City Garden Project side, unregistered groups spent a disproportionately large sum of money on campaign material, whereas the officially registered groups were restricted to spending about £8,000 only.

Some of the claims made by supporters of the City Garden Project were outrageous and substantially misleading. One newspaper advert is now being investigated by the Advertising Standards Authority.

Even Aberdeen Council were responsible for punting a justification for the City Garden Project with the questionable claim that a new park could create 6,500 new jobs in the city.

The local papers showed a bias in favour of Sir Ian Wood’s project and framed their reports to show one side in a much better light than the other (“Yes, vote for change” or “No, don’t vote for change”). Ludicrous claims were accepted uncritically – such as oil companies leaving Aberdeen if the scheme did not go ahead.

I had been advised by an expert that:

 “Newspapers are very powerful at shaping public opinion”

and:

 “You will need the support of a PR company during the campaign.”

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It was very good advice, but in practice not something that a campaign group of limited influence and funds could realistically put in place. Yet, it was clear from canvassing in the street that the combined effort of relentless advertising, the glossy brochures and the press bias was having an effect.
Whereas many would stop and give me a considered analysis of how they would vote, a large minority were reflecting City Garden propaganda back at me, phrases recognizable from glossy brochures or Evening Express headlines.

Our society today is witnessing a battle between democracy and political lobbyists / PR companies. Out of this, democracy is not doing that well. It’s a shock to see this writ large in Aberdeen, but at least the Gardens Referendum result has made this crystal clear to any thinking person in the city.

Local politics

After two years of campaigning to keep the Gardens, I have been able to observe how local politics works. It is clear that the current council administration is very business friendly and they will tend to make decisions that primarily favour business interests. At just about every council meeting you will hear the phrase “Aberdeen is open for business.”

Local democracy commonly involves a conflict between what business wants and what is in the interests of the general public. For example, if Aberdeen Airport is allowed to land flights at night, Dyce residents will get woken up by the noise. The conflict between business and public interests came to the fore after the consultation on Sir Ian Wood’s scheme two years ago. Over 50 local businessmen wrote to the council asking for the result to be ignored:

‘due to misunderstanding of the project among the public’

and an ‘inability’ to appreciate its impact. The council – to their shame – did this. The current Council administration (an SNP / Lib Dem coalition) appears to favour business almost every time.

There are a number of reasons why business gets its own way with the council. Many councillors are instinctively business friendly and will tend to support projects that are favoured by local commercial interests. This is certainly true of the Conservatives on the council and of many councillors from the other parties too.

There is also a powerful business lobby. Businessmen make up two thirds of the Aberdeen City and Shire Economic Forum (ACSEF), a “public-private partnership that drives economic development in the region”. Funded by both Aberdeen City and Aberdeenshire Councils, ACSEF is a non-elected body that have been given a significant degree of control over local economic policy. There is no doubt that ACSEF exerts power and influence over the activities of both councils.

  advanced societies work by a system of checks and balances between moneyed interests and the public regard

ACSEF were involved with the City Garden Project in the early days and described it as one of their flagship projects. Two of the board members, including the Chairman Tom Smith, are directors of the Aberdeen City Garden Trust, the group that organised the architectural competition and who hope to take the project forward to completion.

Extensive networking appears to go on amongst the “great and the good”. Politicians, local businessmen, council officials and senior figures in local organisations turn up and meet at parties, functions, charity events and business meetings. One Freedom of Information request gives an indication of how much hospitality is provided to council officials for instance:
http://www.whatdotheyknow.com/request/76531/response/199821

To the worldly wise, this will not come as a surprise. However, advanced societies work by a system of checks and balances between moneyed interests and the public regard. This does not appear to be working too well in Aberdeen.

The SNP and the City Garden Project

The SNP have been intimately involved with the City Garden Project since its inception. Alex Salmond was present at the project launch  in 2008.
http://www.eveningexpress.co.uk/Article.aspx/933616

But only recently have both Alex Salmond and Callum McCaig, the SNP leader in the council, explicitly endorsed the City Garden Project.

Yet, the majority of SNP councillors have supported it throughout (the notable exception being Clr. Muriel Jaffray). This is clear from the voting records every time the project has come up for debate in the Council. The SNP support has been instrumental for the progress of the City Garden Project through successive council votes.

  Major businessmen such as David Murray, Brian Souter, Jim McColl and Martin Gilbert have now endorsed the SNP.

The SNP have a reputation for populist politics and it may seem surprising that they have embraced such a controversial project for the city. I believe that there is a much bigger picture here, and one that takes precedent over local politics. The SNP are essentially a single-issue party; they want independence for Scotland. The realpolitik of the SNP is that much of what they do is focussed towards this end.

A key aim for the SNP has been to secure the support of major business figures in Scotland. This is partly financial; the party has no natural source of funds apart from membership fees, but they are also trying to secure influence leading up to and beyond any independence date. Major businessmen such as David Murray, Brian Souter, Jim McColl and Martin Gilbert have now endorsed the SNP.

Sir Brian Souter, founder of the bus company Stagecoach, caused controversy when he donated £500,000 to the SNP in 2007. Shortly afterwards, the SNP dropped an election commitment to bus re-regulation, although they denied that there was any connection to Sir Brian Souter’s donation.

Sir Ian Wood has not given open support to the SNP, yet the SNP continue to court the billionaire’s favour. Not only has Alex Salmond given his own backing to the City Garden Project, the machinery of Government has also been used to bankroll the scheme.

Scottish Enterprise funded the public consultation two years ago and also allowed grant money to be used for the technical feasibility study. Although the public rejected Sir Ian Wood’s project in the consultation, it didn’t stop Scottish Enterprise from giving Aberdeen City Garden Trust £375,000 of public money from its available funds for major infrastructure projects.

Another niggly problem has been the concerns of Audit Scotland

The Scottish Government are keen to provide investment money for the project through TIF funding. Yet it has been established that the initial proposal did not rank very highly by comparison to other investment and infrastructure projects elsewhere in Scotland.

The Scottish Futures Trust, who carried out the ranking, has refused to make their calculations public in spite of Freedom of Information requests to do so. Another niggly problem has been the concerns of Audit Scotland, who have questioned the long term capability of the indebted Aberdeen Council to pay back a risky loan for the project.

The proposed use of valuable investment and infrastructure funds for something as trivial as building a new park is shocking. The business case is dubious and the council can’t afford the risk. Political considerations seem to have taken precedence to a strict business evaluation on the Aberdeen TIF case.

Sir Ian Wood discussed independence recently and gave an indication of what he wants from the Scottish Government:

“The Wood Group will not endorse a Yes or No vote on independence. But Sir Ian added: “What’s key is the extent to which our clients, and to some extent ourselves, anticipate that a Scottish Government would continue with a similar oil and gas policy to the UK.

“The suggestion right now, from the discussions I’ve heard, is that there’s a lot of overlap between the present Scottish Government’s thinking on the development of the oil and gas industry and the UK government’s thinking.”

He went on:

 “What’s important – and I think the First Minister realises this – is that they must provide as much clarity as possible over the next two years towards the vote in 2014, so that we minimise the uncertainty.”
http://www.scotsman.com/captains-of-industry-and-finance-join-clamour-for-clarity

I have no doubt that this will happen.

The SNP are hoping to secure a majority at the council elections on May 3rd. This is possible, but as a one-issue party they tend to do better in national elections than local elections. They are also heavily identified with the Union Terrace Gardens issue and this appeared to have cost them votes in the Scottish elections last year.
https://aberdeenvoice.com/2011/05/the-election-the-utg-effect/

If they do not get a majority, this raises the intriguing possibility of an administration run by a Labour-SNP coalition. The Lib-Dems are likely to see their vote collapse outside the West End of the city. The Labour group are vehemently opposed to the City Garden Project and it could be that a condition for agreeing to form a coalition is that the scheme is dropped.

The “Union” in Union Terrace Gardens refers to the union of the United Kingdom and Ireland in 1800. Perhaps it is ironic that the park has ostensibly become a pawn in the big game of Scottish independence. It would be immensely sad if this was the case. Aberdeen’s heritage could end up sacrificed for the sake of political wheeling and dealing.

This would not bode well for a future Scotland. As Paul Scofield, playing Thomas More, said in A Man For All Seasons:

“I think that when statesmen forsake their own private conscience for the sake of their public duties, they lead their country by a short route to chaos.”

The Great City Gardens Project Gravy Train

 Aberdeen City, Articles, Community, Featured, Information, Opinion  No Responses »
Feb 282012
 

A person might think that a chamber of commerce exists to promote local businesses.  Here in Aberdeen this is true as well.  But as Aberdeen Voice’s Suzanne Kelly learns – the taxpayer is funding at least some of the PR work  for the City Gardens  Project – and the Chamber of Commerce and ACSEF seem to be leading the City Council by the nose.

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The proposed City Gardens Project/Granite Web is a contentious idea which would see a mix of public and private interests building huge, granite ramps over Union Terrace Gardens.
While this idea may not even get off the ground, it has been a gold mine for some fortunate businesses via the Aberdeen & Grampian Chamber of Commerce – at the taxpayer’s expense.

This article will primarily deal with money that the City Council was invoiced by the Chamber of Commerce for PR-related work.  Before doing so, a little recap of other financial facts will add perspective.

PriceWaterhouse Coopers have come up with some grandiose projections including the creation of some 6,500 permanent jobs and £122 million flowing into Aberdeen every year until c. 2023:  all because of the granite web.  PriceWaterhouse Coopers were first paid £41,000 and change for TIF-related work in March 2010.  Other invoices followed, and so far I have been shown by Scottish Enterprise £71,000 worth of PwC invoices.

These invoices are made out to Scottish Enterprise, and Scottish Enterprise is funded by the taxpayer.  Unfortunately, these projections have been seized upon  by the press and turned into ‘facts’  (The Press & Journal published these and other items in a box entitled ‘facts and figures’ on 19 January next to an article about the PwC projections and the garden’s many projected benefits).

The unelected and free-spending and secretive ‘Vote for the City Gardens Project Group’ have likewise promoted these figures in their literature as being reliable facts as well.  They are projections, and arguably very optimistic ones at that.  Whether or not these glowing projections (that we will have more permanent jobs from our web than London expects from its 2012 Olympics) are based on the fact that PwC is being paid by the side that wants to build the web is something the referendum voters may wish to ponder.

A Freedom of Information request I lodged with Scottish Enterprise some time ago revealed (details of which I have previously published) included:-

Item Description Date Amount
1 Technical Feasibility Study to undertake an engineering, cost and design appraisal of the development options for UTG, each incorporating an arts centre. Jun 2009 £162k
2 Architect, Design & Project management fees for a Contemporary Arts Centre project Feb 09/May 10 £226k
3 Consultation Report – City Square Project.. Mar 2010 £113,915
4 Union Terrace Gardens (TIF)-Tax Increment Financing Mar 10
Oct 10
Nov 10		 £71,959.65
5 Scottish Enterprise holds 22 copies of invoices relating to ACSEF approved spend for activities relating to stakeholder engagement, events management, and communcations. [sic] 2009-10
2010-11		 £51,766.60
£22,712.72

(source – Scottish Enterprise email exchange with Suzanne Kelly May 2011)

While this £648,000 was being spent, Aberdeen City Council was battling with potential job and service cuts in order to balance its books.  It seems that these costs have largely been paid by the taxpayer via Scottish Enterprise and other vehicles, and I can find nothing to show that the Wood Family Trust, which has offered £50,000,000 to further the project, has paid towards any of these costs.  The PR and promotional invoices referred to at Item 5 have been paid by the Aberdeen City taxpayer.

Before moving on to Item 5, which is the subject of this article, some of these other items are worth a further glance.

At Item 2 you will notice we are now talking about some kind of ‘Contemporary Arts Centre project’ – is Peacock already being edged out of the picture at this point?

Item 4 would seem to correspond to PriceWaterhouse Coopers invoices which I referred to.  How much more money has been spent on PWC since this May 2011 exchange is unknown.

From what I have been subsequently sent by Scottish Enterprise, the bulk of the invoices at Item 5 were from the Aberdeen & Grampian Chamber of Commerce to the City Council.  In the words of Scottish Enterprise:-

  • 9 invoices relate to financial year 2009/10 – these total £51,766.60
  • 16 invoices relate to financial year 2010/11 – these total £36,692.95. This total is higher than the original figure stated due to the invoices received after the date of that response
  • There has been no spend on the City Garden Project from the ACSEF budget during the current financial year  (SK notes – it is only February – there is time)

(source – Scottish Enterprise email to Suzanne Kelly February 2012)

Arguably a mere £88,459 is small change as Aberdeen City contemplates borrowing £92,000,000 (minimum) if the project goes ahead. However, this is money which the City paid from its own budgets – it is taxpayer money.  Should a financially-pressured city use pubic money for propaganda purposes – PR, events and photos designed to promote the City Garden Project?  Is the Wood Family Trust contributing any money towards these expenses yet?  I simply do not know.

A spreadsheet of the expenses comprising Item 5 can be found online at http://oldsusannahsjournal.yolasite.com/  I would recommend looking at these 50 or so items.

If you look at the wording in the table above, ACSEF is apparently approving this expenditure.  ACSEF is a public-private quango, and at the time of writing, Stewart Milne is on its board.  He owns the Triple Kirks land adjacent to Union Terrace Gardens, and he wants to turn this landmark into an office complex which will likely enrich him if it goes ahead in my opinion.

Despite several emails, no one in a position of power has the slightest qualm with Mr Milne potentially having a conflict of interest.    Why precisely ACSEF is allowed to commission and recommend for payment invoices to the City Council is a matter I personally find worrying.

Virtually none of the invoices from the Chamber to the City specify who / what company actually performed the services in question.  What company got all the PR work?  Who took the photos?  I do note that Zoe Corsi of the BIG Partnership is on the Chamber’s Board of Directors – as are other key players such as Tom Smith, one of the two directors of the private entity, Aberdeen City Gardens Trust.  This company seems to be in the thick of the decision-making processes; it is apparently the company which is holding onto the results of the design finalist public vote – which it refuses to release at present.

The taxpayer apparently paid for that exhibition and the public vote – and yet a private company seems to be withholding the results.  The argument has been put forth that it is no longer relevant.  Many people took the opportunity to write on the voting papers that they were against all the schemes and wanted the gardens retained and improved.

The public should have had this ‘no’ option at the final selection vote, but it seems councillors who asked for a ‘no’ option were outmoded by the Project Management Board (note – see the website listed previously for details of how all these companies and entities have interesting personnel overlaps).

It may be of interest to accountants that the party which actually performed the work not specified on these invoices, and with only a rare exception is VAT ever charged.  It would be interesting to know whether or not the Chamber of Commerce adds any fees or commission charges to the work it is invoicing the City for.

Highlights of the list of invoices include:-

  • £180 paid for a photograph showing ‘inaccessibility of Union Terrace Gardens’
  • over  £25,000 paid for ‘Stakeholder engagement’ events and so on since October 2009 to August 2010
  • £3500 paid to ‘Comedia’ for Charles Landry to attend event / speak
  • Redacted line items and handwritten notes adorn several of the invoices
  • One invoice – No. 42407 shows only one line relating to ‘coach hire’ – this is £246.  However, the total shown on this one page invoice is for £7444 – what has happened?
  • A January 2010 Advertising bill from Aberdeen Press & Journals for £ 2,820 ( See: http://fraserdenholm.blogspot)
  • £11,000 in February 2010 charged from the Chamber to the City for “Development of images, movie, powerpoint and exhibition material for City Square Project as per attached sheets”

As to the redacted text on the invoices, redacted text has started showing up in Project Monitoring  Board minutes and reports again, despite Councillor McCaig’s previous intervention to cease this practice.  One company which has had its name redacted from recent documentation is Brodies.

The value of three Brodies invoices which I received copies of is around £12,000.  One of these invoices from April 2011 is for:

“City Gardens Project – Development Constraints Report (Legal  [sic] To fee for professional services in connection with the preparation of a development constraints report relating to the title of Union Terrace Gardens, Aberdeen, and surrounding land.”

I suppose our City’s in-house legal department cannot be expected to know whether or not it has free title to Union Terrace Gardens.   Happily, experts have demonstrated the land is Common Good Land.  As such, whether any of these garden projects can or should be legitimately carried out will be a big question in the future.

Earlier we saw how ACSEF was allowed to recommend these expenditures; we have seen how the Chamber of Commerce invoices the City for ACSEF-approved costs.  If we were to put in some of the over-lapping names from ACSEF and the Chamber of Commerce into the equation, we would be able to see that:

ACSEF [including Stewart Milne, Jennifer Craw (of Wood Family Trust), Tom Smith (Director, Aberdeen City Gardens Trust), Colin Crosby (Director, Aberdeen City Gardens Trust), Callum McCaig (ACC) ]

approved invoices generated by the Aberdeen & Grampian Chamber of Commerce [Colin Crosby; Zoe Corsi (BIG Partnership) , former director Tom Smith]

for the City Council [Callum McCaig]

to approve to further the aims of the Garden Project (CGP entity members include John Michie, Colin Crosby, Jennifer Craw).

Given the above, I suggest that the time is right for an entire re-think of how this project has been allowed to develop, and a full investigation into the demise of the Peacock plan and an investigation into the genesis of the current state of affairs might not be a bad idea as well.

While this is going on, a local care home has announced it will no longer provide 24/7 on-site staff as there is not enough money.  Residents were told to drink less fluids at night time.

WhaT IF?

 Aberdeen City, Articles, Community, Environment, Information, Opinion  No Responses »
Feb 222012
 

Aberdeen is a city on a downward slide. That makes for uncomfortable reading, doesn’t it? Our gut instinct, being the proud city we are, is to reject this notion out of hand, though deep down we all know it is true, says Graeme Campbell.

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The cause of the rot is not easy to identify. Opinions will differ and any debate would most likely be fierce. It is perhaps best to say the gradual slip in the condition of our once grand and glorious city can be pigeon-holed to two vague categories – poor planning and the slow decline of the energy sector.
Or perhaps over-dependence on it? Two and a half pigeon holes then.

So, avoiding any unhelpful debate surrounding the way we arrived at this point, we must as a city look forward to the best possible route to a future of prosperity. We must look for a plan to return grandeur and pride to the Granite City. 

Our carefully-selected councillors, together with possibly our most successful loon, Sir Ian Wood and the private partnership Aberdeen City and Shire Economic Futures (ACSEF) think the solution to the gradual slip is a new garden. Not exclusively a garden you understand, but a garden with conferencing facilities and a café. To give all credit due, the plans certainly are impressive and whilst perhaps not so impressive in keeping with the architectural fabric of the city, we are, of course, a city not afraid of change.

In the most recent release posted through all city letterboxes, Aberdonians are directed by a host of interested parties to the key point, “You deserve it!” Well yes, most likely. But oddly, relegated to fifth, is what will be the key point for most Aberdonians. Once again we don’t want to admit this but we’re all thinking it, “We can afford it”.

Will Aberdeen City be pushed to the very brink of bankruptcy by this plan, as happened when the city took the bold decision, so long ago, to construct our now famous Union Street granite mile? Probably not. Of course, Sir Ian’s mammoth oil wealth will go some way to meeting the cost of development on the site – and only on this site, he has been quite clear on that point – the further estimated £100m will come from business rates, council tax – of course – and the heinously-complex Scottish Governmental TIF funding mechanism.

Now nobody wishes to be bored to tears by the inane workings of a TIF, so let’s not worry about that. Instead, let’s find out what other places are using TIF to create.

  • North Lanarkshire plans to spend £73m to transform the former Ravenscraig steel site, an area of quite unrivalled deprivation, to the benefit of the many people who live in the area.
  • Argyll and Bute is to extend the North Pier at Oban for £20m, further securing the town’s position as Gateway to the Islands, a major boon to the tourist industry no doubt.
  • Falkirk plans to use its TIF in a far less grand manner, by bringing about strategic road developments and improving the flood defences. Clearly a sound decision.

But the plans which should be of most interest to any outward-looking Aberdonian comfortably seated in Europe’s oil capital, come from Fife. The council there is to spend its modest £17m TIF improving vehicle and marine access to the already-thriving Energy Park Fife, where renewables are already being constructed. I know, that’s not oil, but it is very real, so let’s not sneer. Not content with this, Fife has also begun construction of the Levenmouth Low Carbon Investment Park which is set to become ‘Scotland’s foremost energy park’.

Whilst in Aberdeen we plan to spend £150m on a garden and café.

Is anyone else embarrassed? Our great city, the economic powerhouse of Scotland, is being distracted by plants and trees whilst other towns are going green in a wholly more financially-sound way. This city has the engineering and science skills, brought by the oil industry and our two modern and diverse universities, to become a world leader in the renewables field.

You don’t need to do the math to know a research and development centre, alongside a manufacturing park would be of significantly greater financial gain to the city than the redevelopment of a garden.

This brings us to the question – has the Council considered this? Understandably, Sir Ian may not be keen, but this is about so much more than the oil empires held by the few; this is about the continuing prosperity of the many.

So, as the ballot papers find their way to you, look around the city. Look for the signs of the rot brought about by poor management by those who, for too long, have only looked inwards – decision makers enjoying the security of the formerly-booming local oil industry.

Consider what the world, given the current environmental and economic climate, would look to Aberdeen for. Horticultural tips? A show in our new 5000-seat outdoor amphitheatre? Or will they look to Europe’s ENERGY Capital to lead the way to a bright new future of renewable energy? And then, as our city leads the world in technological advancement in the renewables field we will look forward to investment, to jobs and to success.

When the ballot paper lands on your doormat, consider what Aberdonians truly deserve and ensure your vote lets our council know just what you want for your future.

TIF – A Message From America

 Aberdeen City, Articles, Information, News, Opinion  No Responses »
Feb 192012
 

TIF – doesn’t this American innovation in borrowing just sound fantastic?  You get to ‘unlock’ money, re-develop an area, and money comes flooding in.  What could be wrong with that?  Karin Flavill looks across the pond to the home of the junk bond and bad mortgages, and doesn’t like what she sees.

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While arguments rage over the future of Union Terrace Gardens, there’s consensus about one thing.  Tax Increment Funding is a somewhat difficult concept to get to grips with.  Not because the basic definition is complex.

TIF funds development by borrowing against future business tax gains arising as a consequence of that development.   New developments mean new business rates.  The local authority keeps a portion of those business rates (from businesses that wouldn’t have moved into the area but for the development) to repay the loan.

The complexity arises in assessing how this mechanism can be applied in a manner that avoids various potential pitfalls.  TIF is still very much in the experimental stages in the UK, so we lack a domestic reference point to understand how well the process is likely to work from start to finish.

When business is attracted from one area to another by a TIF funded development, it may be at the expense of another area.  This is known as “displacement”.   The area benefiting from TIF is pleased to lure business away with its spanking new TIF-funded development.  The region losing out wants some protection against financial detriment.

The TIF scheme provides that tax increment coming at the expense of another region can’t be retained by the local authority to make TIF repayments.  Like other NDRs, those increments must be sent to Central Government who will pool them with other funds then redistribute the funds equitably among regions.

Rather than being a tool to give cities a competitive edge and win City of Culture status for celebrated developments (the vision currently being promoted in CGP supporters’ referendum campaigns), TIF was first developed in the US as a means of helping regions to improve their most blighted areas.    Gradual shifts away from this philosophy, and increasingly creative ways of arguing blight, have led to many states in the US tightening up legislation to prevent TIF from being awarded except where genuine blight is demonstrated.

Chicago is often cited as example of the TIF scheme being misused to benefit the areas that least need it.  In August last year, a report was released outlining areas for improvement in the operation of TIF in that city.  The report highlighted problems regarding the monitoring of TIF expenditure.

Taxpayers had not been afforded easy access to information that would help them understand the TIF process or to evaluate the performance of the investment.   This reduced transparency of the process.

  although the initial cost proposed was $224.3 million, ultimately the park cost $482.4 million

The harder it is for the ordinary citizen to understand the TIF process and to evaluate the success of the development it funds, the greater the potential for corruption and abuse of the process by those who do understand it, and who can make it work to their own advantage.

That some will seek and gain an advantage through cronyism is an unfortunate element of life from which no city is immune.

In the 1990s, Chicago Mayor Daley (no relation to Arthur) developed a strong attachment to a project that would come to be known as Millennium Park.  A 16-acre landscape situated over an underground parking structure, it was built on top of Railroad tracks in an existing park called Grant Park.  The architect involved was Frank Gehry who had won international acclaim for the Guggenheim Museum in Bilbao.  The Chicago Tribune enthused that:

“The most celebrated architect in the world may soon have a chance to bring Chicago into the 21st Century”.

The park has certainly won many admirers worldwide and is, in many ways, an excellent model for what the City Garden supporters are hoping that project will become.   Properties in the immediate surrounds have become very fashionable and have increased significantly in value.

For others there has been a hefty price tag.  For example, although the initial cost proposed was $224.3 million, ultimately the park cost $482.4 million.  The park has come at a very high price to Chicago residents in terms of cuts to funding of public services and job cuts that were necessitated by the cost of the park.  Salt is rubbed into the wound, on occasion, when the park is closed to the public so that corporate functions may be held there.

UTG hanging flowers
During and after the building of the park, Mayor Daley was frequently criticised for alleged cronyism in the awarding of contracts.   Other areas of the city continued to deteriorate, while their inhabitants observed the increasing wealth and prosperity of those parts of the city that benefited from TIF funded schemes.
Areas that never suffered from true blight in the first place, but which were a focus of interest for developers, politicians, owners of business premises and others who could make the TIF scheme work for them.

In some ways it’s puzzling that we, supposedly a far more socialist nation than the US, are applying a model of TIF so similar to that model which states in the US have been increasingly trying to move away from by drafting legislation that aims to help TIF function in accordance with its original aims.

There has always been a tendency for conservatives to condemn the poor for their reliance on state sponsored welfare, but in recent years have people started questioning more vigorously the exploitation of taxpayer financed schemes by the some of the biggest players in business (players who have traditionally, but not always accurately, been lauded for their self-sufficiency).

TIF deserves close attention for its potential to increase this problem.  Failure to know, or care about, the original philosophy of TIF leaves us less alert to its potential for misuse that could worsen existing inequalities in our society.

The UK version of TIF springs from recommendations in a 2008 report by PWC and Core Group Cities for an alternative method of funding developments in core group cities (the 8 largest regional cities in England).   The report is here.  

It begins with commentary on the economic successes of the core group cities, and highlights continuing problems relating to unemployment and deprivation in some neighbourhoods.    It states an aim to “rejuvenate communities, provide new employment opportunities and stimulate further economic growth.”

  Promoters of the CGP dismiss the possibility of serious overspending as scaremongering

The report then discusses the increasing political emphasis on a devolved approach to economic  development .   A defining aspect of TIF is that it permits local authorities greater autonomy in the matter of funding developments once they have been granted the TIF loan.

For this to happen, they must submit a detailed business plan to the SFT who make recommendations to central government regarding feasibility.

PWC, having been involved in the UK version of TIF from its conception, is ideally positioned  to assist local authorities with the preparation and submission of their business plans.  Finance and Resources Committee meeting minutes from September 2010 discuss PWC’s remit in preparing a TIF business plan for approval by the SFT.  The minutes refer to several important city projects the Council would wish to progress, whether or not the City Garden project went ahead.
See: https://docs.google.com …committees.aberdeencity …pwc+tif+business+plan

“The terms of PWC’s assignment make it clear that they are required to produce a business case that ensures zero financial risk for the Council.”

The Council states that it will make no financial contribution to the City Garden Project.  The development must be funded wholly by private contributions and by the TIF loan and completed within the budget.

Promoters of the CGP dismiss the possibility of serious overspending as scaremongering.  Chicago’s Millennium Park experience demonstrates, however, how this can and does happen.   As a response to such concerns, Sir Ian Wood has pledged an extra £35 million.   It’s not clear what will happen if the cost exceeds this.

Despite ACC’s insistence that PWC present a business case involving zero risk to the Council, the draft business case completed in January of this year contains no such promise.  It focuses on minimising risk and balancing the risks involved in carrying out the project against the risks involved in doing nothing.

Outlining the need to attract investment and talented professionals to Aberdeen to assure future prosperity, the plan refers particularly to the energy industry.  Due to the oil and gas industry being regarded as the primary targets for investment in Aberdeen, and Aberdeen’s existing status as the main centre in Scotland for this industry, PWC anticipate displacement being low (10%).   A low anticipated displacement figure is essential for arguing the likely success of a business plan.

  PWC appears to anticipate investment by that industry increasing in Aberdeen, alongside the increasing depletion of oil and gas reserves

Work is expected to be completed over a 5 year period beginning this year, with TIF borrowing being carried out in stages (the first draw down taking place in 2014).  The proposed development is expected to create approximately 2 million square feet of commercial space and to speed up the development of a further 1.4 million square feet of commercial space.

The CCRS (City Centre Regeneration Scheme) predicts 6,500 new jobs resulting from the development.  It should be noted, though, that that figure is a “by 2039” prediction.

The business plan states:

“Oil and gas reserves will run out over time, perhaps 30 years, and Aberdeen is looking ahead. It knows it needs to adapt its industrial base and re-examine how it creates wealth and prosperity.   Aberdeen is confident it can do so.”

This project is to be completed in 2017, and its success relies significantly on a very low displacement figure of 10%.  In presenting this figure PWC relies on the oil and gas industry, already present in Aberdeen (and therefore not being taken from other areas) being the main sources of increased investment in Aberdeen.   Confusingly, PWC appears to anticipate investment by that industry increasing in Aberdeen, alongside the increasing depletion of oil and gas reserves in the North Sea.

Perhaps in anticipation of confusion about this assertion, much is made of the possibilities relating to renewable energy – an industry Aberdeen must embrace and develop expertise in, regardless of Donald Trump’s views.  The question is whether developments in other areas area will not only compensate for the steadily diminishing presence of the oil industry, but expand to the point where the business plan can work as anticipated.

Regarding the City Garden proposed as a replacement for UTG, the report comments…

“While there is no direct benefit the fact that the City Gardens Project becomes a reality and underpins the CCRS will benefit Aberdeen’s wider population and business community.”

During a recent BBC Scotland debate, campaigner Mike Shepherd (a geologist with years of experience in, and expert knowledge of, the energy sector) was shouted down and jeered at by pro CGP hecklers.  The latter have tended to define opponents of the City Garden Project as tree-huggers and luddites who will be crushed by the wheels of change.   UTG has also been described, throughout the debate, as a dangerous area…despite police reports indicating far lower crime levels in UTG than in surrounding street level areas.

The debate has often been an acrimonious one, featuring conflicts of various kinds.  Already the TIF pilot scheme in the UK form originally advocated by PWC has brought deep divisions to Aberdeen.  It seems set to be promoting a cheerfully unapologetic attitude, amongst some in our community, with regard to social exclusion.

A popularly cited reason for getting rid of UTG is that this will also rid the city centre of people with drug and alcohol related problems.   Presumably, relegating them to more blighted areas that would, were TIF being applied in a manner consistent with its original aims, be the areas actually benefiting from this scheme.

 

Think Of A Number

 Aberdeen City, Aberdeenshire, Articles, Featured, Information, News, Opinion  No Responses »
Jan 272012
 

The business case for TIF and the City Garden Project by Mike Shepherd

The Technical Feasibility Study for the City Square Project was published in 2009. A key problem area was identified early on:

UTG Stair
“The difficulty in quantifying the economic gain is considerable. To describe the benefits in cultural and civic terms and to focus on the future raison d’être of the City of Aberdeen will become the means of explaining the benefits. However it is very difficult to make these benefits seem tangible. Yet this is precisely what will have to be done for a proposal to succeed.”

Three years later, and with the scheme rebranded as the City Garden Project, they are still struggling to give any clear explanation for the economic benefit.

The business case for Tax Incremental Financing (TIF) was presented to Council on Wednesday. TIF is a mechanism whereby a local authority borrows money from central government funds to finance a development project. Any new business rates created by the project are used to pay off the loan and interest. It is intended to act as a self-financing mechanism.

The City Garden Project has a nominal cost of £140m, of which the promised private sector contribution is £70m. Aberdeen City Council is being asked to underwrite a £70m loan through a TIF scheme. This is part of a larger plan to redevelop the city centre which includes knocking down St Nicholas House, the Denburn car park and health centre area.

The TIF business case presented to councillors is, however, seriously flawed.

http://committees.aberdeencity.gov.uk/mgConvert2PDF.aspx?ID=18350

An Attractive Aberdeen

The main justification for the City Garden Project is that it would apparently create a high quality city centre to make Aberdeen more attractive. This is supposed to act to retain and draw in energy and other professionals, together with an increased number of visitors.

“Research shows that talented people choose place rather than job when making location decisions. As an Energy City, Aberdeen competes for skilled people with….areas like Abu Dhabi, Kuala Lumpur, Houston and Perth (Australia).”

Yet, a survey published two months ago makes this claim somewhat questionable.

“ABERDEEN has been rated one of the world’s top cities to live in for the second year in a row, a survey published today reveals.  Quality of life in the Granite City is ranked above that of Hong Kong, Los Angeles, Houston and Dubai in the study, which is used by governments and multinational firms to help decide where to send staff.”

http://www.pressandjournal.co.uk/Article.aspx/2536835

Jobs Creation

Most controversial is the claim that regeneration of the city centre could create 6,500 jobs.

The report sets out how his figure was derived. A questionnaire was sent out by the Council to companies and a small number of interested parties in Aberdeen with the intention of assessing the economic impact of the city centre redevelopment. One of the target groups comprised key developers, land owners and agents. Of the 35 parties in this group, only one replied to the questionnaire. They then contacted all remaining 34 developers by phone. Even then, when directly approached, only six of the 34 were prepared to speak to them.

Unfortunately this question did not garner any responses

The developers were asked ‘to identify the extent to which the delivery of each of the five development schemes would result in uplift in development potential for housing, retail outlets, office space, business units, hotels, tourism and leisure in the City Centre’.

However:

“No respondents identified the project as having any impacts on the development potential for business/industrial units in the City Centre”.

Then:

“The next question in the survey requested developers to provide an indication (in quantifiable terms such as the number of units, square footage etc) of the extent to which the identified benefits would impact upon their organisation’s investment plans and/or objectives. Unfortunately this question did not garner any responses as consultees felt it was too soon and/or complex to attribute impacts in these terms.”

That questionnaire wasn’t that much help then.

“Additionally it was apparent that individual developers and other respondents identified potential uplifts in activity and recognised that the timing of investments would be brought forward as a result of TIF. However, many of these developers still had expectations that, irrespective of future economic conditions or City Centre Regeneration Scheme (CCRS) , their specific sites will be taken forward. It was apparent that individual developers and other respondents identified potential uplifts in activity and recognised that the timing of investments would be brought forward as a result of TIF. However, many of these developers still had expectations that, irrespective of future economic conditions or CCRS, their specific sites will be taken forward.” (HA!)

UTG hanging flowers
SO WHAT DID THEY DO NEXT ?

“In balancing these different responses (i.e. CCRS will act as a stimulus to market uplift in general versus developers views that each individual site is likely to be taken forward anyway) the Council, ACGT Enterprises and their advisors have initially assumed a profile of development under the no CCRS scenario whereby:

“None of the cultural, leisure or retail elements of the CCRS projects will be taken forward;

“At least one major site totalling 0.720 million square feet will be taken forward in the anticipated timescales projected by developers regardless of CCRS; and,

“On the remaining sites identified, 1.369 million square feet will go forward without TIF over the 25 year period considered, but such developments will lag, on average, three years behind the profile assumed with CCRS.

“On the remaining sites identified, 2,029 million square feet of development (out of total development potential of 3.468 million square feet) will not go forward without the CCRS, over the proposed 25 year TIF period.”

THIS IS THE KEY BIT

“the Council, ACGT Enterprises and their advisors have initially assumed a profile of development “

AND THEN …

Took the 2,029 million square feet figure, multiplied it by ‘standard job density ratios,’ and came up with 6,500 jobs.

Assumptions?

So what happened next?

“In balancing these different responses (ie CCRS will act as a stimulus to market uplift in general versus developers views that each individual site is likely to be taken forward anyway) the Council, Aberdeen City Garden Trust Enterprises and their advisors have initially assumed a profile of development under the no CCRS scenario whereby:

…. 2,029 million square feet of development (out of total development potential of 3.468 million square feet) will not go forward without the CCRS, over the proposed 25 year TIF period.”

The footage was multiplied by standard figures which relate development area to the number of jobs likely to be created, hence 6,500 jobs.

The key word here is ‘assumed’. An exercise in speculation somehow translated into a press statement that the City Garden Project will create 6,500 jobs. This wild claim led to much scepticism. It was pointed out that the London Olympics are only predicted to create 3,000 new jobs.

The Risks

The discussion on project risks is somewhat lightweight. One concern is the possibility of massive cost over-run on the project. The report even tacitly recognises the possibility:

“It has demonstrated with the redevelopment of Marischal College that it can have a major project delivered on time and under budget. This is a rare accomplishment in such large projects.”

In June 2010, I gave a deputation to a Council meeting where I asked who would pay for any cost over-run on the City Garden Project. The then Chief Executive, Sue Bruce, decreed that the private sector would pay, not the Council. Since that meeting, there has clearly been little progress on the matter. The report mentions that:

“Before entering into any TIF arrangement, ACC will endeavour to structure an arrangement with its private sector contributors that minimises ACC’s risk exposure.”

UTG display
The Council should walk away from the project unless it gets a legally-binding commitment from the private sector to cover all costs of any project over-run. The major financial problems caused in Edinburgh Council as a result of the projected £200m-plus overspend on the trams project should be foremost in councillors’ minds, one would hope.

TIF can be a risky way to borrow money. The risks are understood by the Council:

“For most TIF projects the most significant risk would be in relation to the business rates identified not materialising or being delayed. This would result in ACC having insufficient revenues available through the TIF mechanism to service and repay their borrowings.”

There is another risk. The loan will be in place for a period of 25 years, gradually being paid off, it is hoped, by new business rates. Like a mortgage, interest will accrue on the unpaid part of the loan. The business case assumes an interest rate of 5.2% over the 25 year period. Should interest rates rise by only 1%, then there will be a predicted shortfall of £20.7m left to pay after 25 years.

Careful reading of the TIF business case for the City Garden Project shows that it is based on unexplained assumptions, optimistic extrapolations and will involve financial risk for the Council. Yet the public are being told otherwise.

Tuesday’s ‘Press & Journal’ quoted a City Garden Trust director, who mentioned they had polled 50 people in Aberdeen. Those against the City Garden Project had said the city could not afford the project.

“When the funding was explained and the economic benefits outlined, ten of these people changed their minds. “

This is what I would have told them instead.

“Your house needs doing up, you are heavily in debt, you can barely find the cash for the essentials in life. Should you take out an enormous mortgage for a new patio and garden? No!”

Old Susannah No.58 – The Lie Of The Land

 Aberdeen City, Aberdeenshire, Articles, Community, History, Information, Opinion, Satire and Humour  No Responses »
Nov 142011
 

Old Susannah pays her respects, but is unable to maintain her silence as she takes a look around what has been happening in our vibrant and dynamic city and beyond.

dictionary

Things continue to be vibrant and dynamic this week in the Granite City.  On Friday 11 November some 4o-plus people gathered for a minute’s silence to mark those who fell in war.  Robert Martin who works nearby in Golden Square told me he first started coming to Union Terrace Gardens for the traditional minute of silence a few years back.
“What better, more peaceful place is there in the heart of the City to have the minute of silence,” he commented.

A gardener tried to tell the group they should be at the war memorial instead – he could not understand that we were all happier in the Denburn Valley.

For the record, this was not a celebration of nationalism, or glorification of war; it was a gesture of respect for those who lost their lives in war.  Wouldn’t it be nice if we could just stop killing each other, and sort out economic and social problems another way?  Maybe that day will still come.

Then there was the enjoyable opening night at Peacock for its winter exhibition.  The 400 or so works are on show until 23 December and  are all for sale.  Alicia Bruce is offering small prints of her iconic photo portraits from the Menie Estate which had such a good reception when she exhibited at Peacock.  There are abstracts, portraits, beautiful drawings, and even one or two offerings of mine.

A quick word about litter.

During the week I asked an older man who’d dropped litter to please pick it up.  He explained (with some interesting vocabulary words which I must look up) that ‘he didn’t know me’, ‘he didn’t have to’ and ‘I could not make him.’  It was a very impressive display indeed.

Days later I was at Sainsbury’s Berryden, and groups of students (probably just over 20 people in total) had stopped by the store to get their lunch.  They had wrappers, bags, papers, serviettes, bottles and so on.  And as I waited for a bus, I saw each and every student put their trash in the trashcan near the bus stop.

I am pretty sure they were from St Machar.  My appreciation to them and the other people who do the right thing.  It’s not difficult, it’s not brain surgery.  It does however make a huge difference.

But whatever you were doing this week, everyone’s thoughts were with one brave man who is fighting a valiant struggle of his own.  Yes, Stewart Milne’s case went to the Supreme Court on Thursday.

The Press & Journal had no room for this story on the day, due to the breaking news that geothermal energy exists.  This astonishing front page special even had a picture of a volcano to illustrate it.  I had personally expected a story about a cow with a ladder on its neck, but the geothermal story did the trick, and between it and the massive ads for Milne Homes, no room remained for the little matter of our City being called to the Supreme Court.

Then, Friday, the P&J did run with a story on Milne, which leads neatly to a little definition or two.

Negotiate: (verb, Eng) to settle a conflict or disagreement by compromise.

Those of us who read the Press & Journal story will have felt sorry for Stewart Milne.  He claimed the matter could have been settled had Aberdeen City council accepted his offer of negotiation.

According to the P&J, Stewart Milne Group claimed:

“We have offered to go to independent arbitration on several occasions over a long period of time,”

Usually negotiations happen when both sides have a valid argument or case to make.  To refresh everyone’s memory, the City sold land at Westhill to Mr M for far less than it was worth – the City’s clever business plan was not to sell the land on the open market, but sell directly to Milne (I am sure there was a great reason).

He got a great price on the understanding the City would eventually get any sale profit.  In a really clever and not at all dodgy-looking business manoeuvre, the land moved from one arm of the vast Milne empire to the next, at a cost around £500k –apparently more than what the 11 acres cost in the first place.  This was perfectly normal, and could have happened to anyone.  Quite truthfully, Milne then indicated that there was no profit to share.

This giant poster in no way looks like a desperate advertising ploy, but it does paper over some cracks nicely.

The City and subsequent courts have disagreed with Mr Milne’s logic (shocking!), and rather than enter ‘negotiation’ over the £1.7 million under dispute, the City decided to see the case all the way through.  Milne could have accepted the last court’s verdict, but he appealed all the way to the Supreme Court.  If you’ve only got £60 million, then you’ve got to hold onto every penny these days.

The trial was televised, and although Old Susannah is no legal expert, it didn’t look all that great for Stew.

Now we just have to wait for the outcome – at which point no doubt everyone’s favourite football club owner will immediately give Aberdeen the £1.7 million it is owed, plus court costs.  I think an apology is also due, and hope the City are drafting one to Mr Milne for taking things this far.

This expensive litigation obviously in no way impacts on the role Mr Milne plays in ACSEF, the City and Shire’s invention which is helping us out of economic chaos.  Aside from the bang-up job ACSEF has done so far for our city’s shops, it’s created a brilliant logo for itself, and now has a great big vibrant, dynamic mural at McCombie Court.  This giant poster in no way looks like a desperate advertising ploy, but it does paper over some cracks nicely.

In light of Stewart’s logic concerning negotiation, the next time you get mugged or have your wallet snatched, don’t go to the law.  Just find out who’s got your money and negotiate to get some of it back.  Sorted.

Reading this story about how Stew wanted to negotiate, I wonder if I’m not having déjà vu.  This sense comes from the P&J article some time back, when Milne and everyone’s favourite forum, ACSEF, were taking over Peacock Visual Art’s project and turning it into the great City Garden Scheme.

Just before the final, decisive and divisive voting on the project took place, ACSEF / Milne said that Peacock had been offered some kind of 11th hour alternative, but were unwilling to strike a deal.  Of course if you read the full story, you would have eventually discovered Peacock said ‘we were never contacted about any deal.’

I hope in future any Peacock person, Aberdeen City legal rep, etc. will just ‘negotiate’ when Stewart wants something – it will save the taxpayer lots of money to just go along with him from the start.

In fact, when I think of Loirston Loch, the Triple Kirks glass box scheme, Pittodrie and so on, I wonder if we haven’t just started to say yes to him already.

Geography: (noun) study of terrain, locations, types of environments and areas.

If you are out there, Pete Leonard, Director of Housing, perhaps you might consider a geography lesson or two.  Pete insists Tullos Hill is ‘urban’.  The hill is next to all the lovely industrial estates which have helped make Aberdeen the profitable centre of the universe it is, but the hill just isn’t all that ‘urban’.  It’s covered with plants, grasses, wildlife, pre-historic cairns and so on.

Here in Aberdeen, there is a complete separation of contractors and councillors

On the word of Mr Leonard, I went to Tullos Hill the other day assuming it had been urbanised.   I looked for fast food, a coffee or a monorail ride, but there was nothing of the kind to be found.

It struck me that Ms Malone (who has lately been very, very quiet) might want to look for a new initiative to push. Perhaps if she abandoned the ‘tree for every citizen’ scheme and maybe had ‘a monolith for every citizen’ and/or ‘monorail for every citizen’ scheme, it might increase her popularity.  As I hear it, an improvement in her popularity stakes is currently the only possible direction.

Aside from Tullos, other urban areas in our city are easy to recognise by the well-maintained roads and footpaths, the general cleanliness, the complete lack of any crime, and all the many open local shops.

Corruption: (noun, English) a state of dishonesty, lack of integrity, self-interested behaviour of a person or body in a position of trust.

Edinburgh has faced accusations of council corruption. (“At least it couldn’t happen in Aberdeen!” I can practically hear you say.)

For openers, according to the BBC, the hospitality records are incomplete. ( This contrasts with our city’s up-to-date, perfectly set out, fully inclusive records which seem to indicate some councillors went to absolutely no events whatsoever in 2009 and or 2010).  But that’s the least of Edinburgh’s problems.

Edinburgh’s councillors are in the firing line for ‘possible fraud and serious wrongdoing’ with regard to building works and property.

Audit Scotland could not decide if the city was just a wee bit disorganised, or if there was a whiff of corruption

It also looks like a city councillor had a holiday paid for by a contractor.  Here in Aberdeen, there is a complete separation of contractors and councillors.  In those rare occasions when a councillor is somehow connected to a contractor, then they stay well out of any possible conflict situations.

Some years ago we had our own little trouble with Audit Scotland, you may remember.

They had a few uncertainties after a detailed investigation of our city’s property selling activities.  There were questions as to why so many properties were being sold below value.  Audit Scotland did tell the city to stop selling property at knock-down prices, and otherwise pay attention to details – like who is actually buying your property and what it should sell for.  In the end, Audit Scotland could not decide if the city was just a wee bit disorganised, or if there was a whiff of corruption.  In the end, they invited our local police to look into the issues.

After a completely thorough, detailed investigation, the police found nothing untoward.  Old Susannah is not sure when the investigation was conducted.  Then again, I’m not sure when exactly Stewart Milne Group started advertising on police cars, either.

Next week:  hopefully a Milne court and FOI case update; a fond look back at the careers of John Stewart and Neil Fletcher, who are not going to run for re-election in May.

Stop press:  Christmas Gift Solution:  Tired of the usual old boring gifts – the handbag-sized bottle of vodka, the city council carriage clock or branded pen?  Look no further for your gift requirements:  The City is selling photo prints of its greatest moments.  Rather than taking a picture of St Nicholas House or the ACSEF logo yourself to make a welcome gift for a loved one, just go to the City’s website.

What is the most popular subject on sale?  Why the Lord Provost of course!  There are only about 750 photos of him in action this year but fret not: there are two other years of Lord Provost photos as well.  Make a lovely print on canvas, or can be sent to an artist to create a portrait in oils.  I just might buy a photo of the Lord Provost handing over a gift and turn it into a mug, a mug for some reasons being the first thing that springs to mind.
See: http://aberdeencitycouncil.newsprints.co.uk/

Stop press 2:  there will be a further extension for getting your entries in for the Union Terrace Gardens art competition  – more news soon!