Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts

Friday, 23 October 2009

Hart attack: NHS 'spends £1bn of budget badly'

A billion pounds of the annual Welsh health budget is not being spent properly, according to finance chiefs. Full story here.


Welsh assembly members have been told that some patients are taking up beds needlessly, while others needed to be in hospital but were not.

Paul Davies, of the All Wales Directors of NHS, said a fifth of the £5bn annual health budget was not used correctly, with "extremely costly" mistakes.

The Welsh Assembly Government has been asked to comment.

Mr Davies told the assembly finance committee:
Far too many patients end up in the wrong place, either being hospitalised when they shouldn't be, or they stay in hospital too long, or they stay in primary care, and they should be in hospital.

All these mistakes .... [are] extremely costly, very expensive.

We believe there is at least 20% that we are not doing appropriately within the total budget, that if we did then we would see that improvement come through.

There's £1bn that we're not utilising appropriately.

Tuesday, 14 July 2009

Come in card number XXX [take your pick], your time is up

The civil service spending scandal contd.

As this news resulted from a Liberal Democrat freedom of information request, Kirsty Williams, leader of the Welsh Liberal Democrats had lot to say on the matter (slowing down a little, Western Mail - move your ar*e):

I am extremely concerned by the information I have seen. Every taxpayer in Wales deserves an explanation from the Labour-Plaid Government. While we’re in the middle of a recession, it’s disgusting to know that public officials are flying first class, staying in the most expensive hotels, eating in the best restaurants – all at the swipe of the Welsh credit card.

Of course we should sell Wales overseas, of course that costs money, but these figures suggest a runaway culture of credit card spending.

Ms Williams added:

One credit card holder spent nearly £70,000 in a year on air travel alone. Welsh taxpayers have paid the very luxurious Oberoi Hotel group in India £6,590 this year alone. Staff at the New York office spent £3,537.79 at Macy’s department store and £6,036 at Ikea. The Sydney office spent £5,722 on taxis.

At the same time we can see somebody claiming for 89p spent at McDonald’s in Swansea, and claims for coffees at Starbucks cafes all over the world. Every Welsh taxpayer deserves to see this document, just as they should see politicians’ expenses. It’s a lack of transparency that leads to the sorts of activity these worldwide credit card bills reveal.

Ms Williams called on the Assembly Government to explain why taxpayers’ money was being spent in this way.

The Minister for Economy and Transport has some serious questions to answer: What, if any, procedures are in place to monitor and police spending? What kind of guidance allows civil servants to take first class flights and live this superstar lifestyle? How can we be sure that all of this activity directly generates investment into Wales? Quite frankly, what on earth is going on and what will be done about this?

The spending details revealed included:

“Card Holder 181” (Hong Kong) spent nearly £22,000 in 12 months on luxurious hotels all around the word including cities like Tokyo, Sydney, Mumbai, New Delhi, Bangalore and Cardiff, staying in hotels like the Hilton, the Oberoi, Westin, Grand Hyatt and the Ritz Carlton. The card holder also spent nearly £70,000 in 12 months on flights.

“Card Holder 708” (New York) spent £9,071.13 in various stores including Ikea, The Land of Nod (children’s bedroom furniture), Macy’s and West Elm (affordable modern furniture). They
are all soft furnishing stores. Card holders at the New York office, based in the Chrysler Building, spent over £3,500 at an Irish pub and Restaurant (‘Clancy’s’) just a few streets from the office building itself.

“Card Holder 314” (New York) spent £2,500 in the teen section of the famous Pottery Barn department store. PBteen is described as “a new catalogue in the Pottery Barn family.” The brand offers products in five key categories: furniture, rugs, lighting, bedding and accessories. PBteen includes hip, exclusively designed lifestyle collections bedrooms, study and lounge areas.

“Card Holder 450” (New York) spent £7,092.73 on air travel, £1,042.33 on taxis, £3,912.07 on hotels across the United States, £2,056.60 on food in restaurants across the US including high-end NewYork eateries. One example involved a bill of £599.42 in Margarita Murphy’s. The same card holder spent £347.11 at Duane Reade, a chain of drug and convenience stores in NewYork. In total, this card holder spent £17,265.71 over 12 months.

“Card Holder 459” (Dubai) spent £26,179.99 with Horizon Tours LLC, a tour operator, as well as £5,786.87 on hotels.

A spokesman for the Assembly’s top civil servant, Permanent Secretary Dame Gillian Morgan, said: “Any claim incurred on behalf of the Assembly Government must fully comply with strict authorisation and audit requirements.
Given the global nature of their role, International Business Wales (IBW) staff based overseas need to travel to pursue every viable business opportunity. Over the past few years, the number of offices in America and South East Asia has been reduced, and officials now cover a number of countries from their base. While this has led to a significant reduction in the cost of offices, it has inevitably led to an increase in travel associated costs.

However, we are clearly aware of the need to restrict any expenditure to ensure absolute value for money, and overall travel and subsistence costs for IBW are over 30% below the level incurred by the former WDA.

IBW exists to attract job-creating investment from around the world to Wales. It also supports Welsh companies in winning overseas business. Just this year alone, IBW has organised 37 trade missions for Welsh companies, including the recent successful trade mission to Washington DC which was attended by 80 companies from Wales.”

As we have proved with the recent first Ashes Test in Wales, it is essential that we seize every opportunity to raise our profile and generate business opportunities for Wales – particularly during the current global recession

Without demonstrating what may or may not have been achieved for money spent... cost... £750k.

Laying claim to the recent success in staging the first Ashes Test in Wales... cost... priceless cheek.

Blaming the level of credit card bills on a 'necessary expenditure' without evidence of any real benefit, and backing it up with 'it's lower than what the WDA would've spent' ...cost... PRICELESS AND SPEECHLESS.

Tuesday, 7 July 2009

Holtham tells them what they want to hear...*

A commission considering the way the assembly government is funded says Wales is losing out by £300m a year.

The commission chair, economist Gerald Holtham, warned the underfunding could reach £8.5bn over the next decade, or £2,900 for everyone living in Wales.

The report, for Welsh ministers, concludes that a new funding formula is needed to reflect the actual cost of providing services for Wales.

A further report on taxation and borrowing powers will follow next year.

The commission was established as part of the coalition deal between Labour and Plaid Cymru after the assembly election two years ago.

Mr Holtham said the Barnett formula, drawn up by the Labour government in the late 1970s, was "arbitrary" and in "urgent need of reform".

When the UK government increases funding for departments such as health and education in England, the formula is used to decide how much money the devolved governments in Cardiff, Edinburgh and Belfast receive.

The needs-based system the commission favours would take into account factors such as the age of the population and levels of poverty.

Mr Holtham admitted the commission did not suggest any "magic bullet" to replace the Barnett system.

He indicated the commission's second report, due around the middle of 2010, would include research on what should be included in a new needs based formula.

*... and what the rest of us already expected.

The Commission will be:

Looking at the pros and cons of the present formula-based approach to the distribution of public expenditure resources to the Welsh Assembly Government; and identifying possible alternative funding mechanisms including the scope for the Welsh Assembly Government to have tax varying powers as well as greater powers to borrow.

Timetable

The Commission began work in autumn 2008 and reported to the Welsh Assembly Government Ministers on the first part of its remit in July 2009.

The Commission is due to report to the Assembly Government on the second part of its work in summer 2010.

Wednesday, 11 February 2009

Welsh Assembly Government: Money for old rope

Couldn't help but post on news that has proved me, and many others right when posting back in October 2008.


The new civil service layer of Director General civil servants have now been appointed in the Welsh Assembly Government. As previously mentioned, this is part of the new Permanent Secretary's [Gillian Morgan] managment structure, which does have some merits and has seen some backing of those higher up and lower down in the Cathays Park food chain.

But of these new posts that bring an ample award of around £130,000 a year, three have rather strangely (hint of sarcasm identified) gone to internal candidates, some of who it has to be said are not exactly showered in management praise and glory. For some unknown reason a £55,000 + recruitment exercise has ended up employing three people already employed internally at the next grade down in the senior civil service [Head of Department].

One appointment does disturb me slightly.

Civil Servants are not perfect, but to appoint a man who has masterminded and single-handedly steered the staff of the Welsh Assembly Government towards a largely disappointing performance management system; the ASPB merger which led to unequal status among civil servants of the same grade; not to mention equal opportunities and other fiascos (take your pick), is largely a disgraceful act.

It is generally agreed among staff that Human Resources policy has been a disaster and particularly since 2006 - in short, a disaster since appointment. If this was a newspaper headline it would read, "Overall Head of Recruitment Gets Recruited". Surprise!

If it wasn't for my planned family holiday, this unwelcome news of neo-nepotism would have me sick to my Welsh core.

The Welsh Assembly Government has announced the appointment of new Director Generals and a Non Executive Director to its new senior management board - known as the Strategic Delivery and Performance Board.

Clive Bates (aged 47) is currently Head of the United Nations Environment Programme in Sudan and has been appointed Director General for Sustainable Futures.

Christine Daws is being promoted from her current post as Director of Finance to the Welsh Assembly Government to the new Finance Director General position.

Emyr Roberts will take up the post of Director General for Public Services and Local Government Delivery. He is currently Director of the Department for Social Justice and Local Government and has extensive experience which includes a period as Chief Executive of the Welsh European Funding Office.

Bernard Galton has been appointed as Director General for People, Places and Corporate Services following five years as Director of HR at the Welsh Assembly Government and a long career as an HR professional, primarily within the Ministry of Defence.

James Turner will replace Sir Adrian Webb as a Non Executive Director. Mr Turner has had an international business career and joined the Welsh Development Agency in the mid 1990’s as International Managing Director. Ten years ago, he established his own consultancy business undertaking board-level interim assignments and in this capacity was interim Chief Executive at the Arts Council of Wales during 2007. An experienced Non Executive Director, James Turner has served on the boards of a number of private companies and public sector organisations.

The appointments follow a tough recruitment process involving external assessors and complete the new, smaller and more focused Strategic Delivery and Performance Board which Permanent Secretary Dame Gillian Morgan announced in October 2008.

Gill Morgan said:
I’m really pleased to have completed recruitment to this new, smaller Board with the appointment of very high calibre people. I believe a smaller senior team will help us reduce complexity in the organisation and make it easier for us to join up across portfolios. Now more than ever we need to be able to support Ministers in tackling the things that make the most difference to the people of Wales.

First Minister Rhodri Morgan said:
My warmest congratulations to Emyr and Bernard. Their appointments complete a line-up of strong management serving the Welsh Assembly Government through the challenging times we face.

The new Board will be in place by the beginning of April. Chaired by the Permanent Secretary, the Board will include six Director Generals (DGs), together with the Chief Executive of the NHS.

The changes will be accomplished within existing resources and there will be no additional cost to the organisation's running cost budget.

Monday, 13 October 2008

Switzerland is known for chocolate, cheese, taxation, and banking

In light of the Icelandic issue, Nick Bourne AM recalls a question from a recent meeting of the Assembly Finance Committee that was raised by Labour AM Huw Lewis.

"Astoundingly, though money tends to be drawn down from Whitehall, neither the minister nor his officials did not know in response to questions from Huw Lewis where WAG banked nor how much was held in the accounts - reassuring isn’t it?"
This has unexpectedly prompted Rhodri Morgan to take action, and could it be the reason why he's taken a trip to Switzerland days before an All-Wales economic summit meeting? After all, he doesn't seem to be there for the joyous singing of hymns.

What's that pin number again?

Wednesday, 23 July 2008

Balancing the books on public finances in Wales

Professor Dylan Jones-Evans kindly took me up on my offer of considering what has been the biggest waste of public money.

If I keep this to the field of economic development in Wales, we could be here all day. However, to be really naughty over this one, you could argue that the £200k or so that WAG spent on having a full-time North Wales Director and Director of Enterprise since 2006 was a monumental waste of money as she has now been replaced by another senior colleague doing this part-time on top of another major job (Director of IBW).

The spin over the new part-time position is that 'it gives North Wales a direct voice in Cardiff" although the real reason is that that the economic development division simply do not have the money for a replacement appointment having overspent by millions on transport (BBC, there's a story for you if you bothered to do any research!)

Worryingly, this arrangement seems to be working out extremely well than the previous arrangement, which may show that we have too many civil servants in the Assembly at a senior level.

I can certainly think of one or two who certainly would not be missed as they seem to spend more time counting paperclips than worrying about the fact that unemployment has increased by its largest amount since the last recession and Wales is facing its biggest economic crisis in years.

More significantly, this behaviour by senior civil servants in DET is certainly having an effect, quite wrongly, on the reputation of the Minister within the business community. He is being seen as weak and in thrall to his civil servants which is probably unfair to an individual who brokered one of the most significant political deals ever made in Wales.

Certainly, Andrew Davies may thank his old department for providing a potential solution to balancing the books on public finances in Wales.

This leads me nicely onto another topical post:

Wales' biggest winners: Criticism of bonuses awarded to top civil servants in Wales

Update 24 July 2008 07:57 from Dylan Jones-Evans:

Miss Wagstaff. Let me elaborate further.

Every day I deal with excellent civil servants, largely at a middle manager level who work extremely hard, care about their jobs and the effect they have on Wales. I doubt if any qualified for a bonus last year.

They are a credit to the Assembly and Wales and the work they undertake. However, they are drowning in a miasma of unnecessary bureaucracy and hierarchical decision making which is largely a result of prevarication, inaction and lack of vision by senior colleagues (with a few notable exceptions).

I am hopeful, given her pronouncements to date, that the new Permanent Secretary will begin to deal with this issue, as Wales deserves a dynamic civil service that does the country credit. Certainly, if we began to see real and sustainable improvements in health, education and the economy, no-one would begrudge any bonuses to every civil servant in Wales.

Tuesday, 15 July 2008

Missing tax billions scandal

The UK government's policy of cutting thousands of jobs in HM Revenue and Customs (HMRC) flies in the face of the latest research that shows the UK is losing £42 billion in unpaid taxes.

The publication of a hopefully unbiased Trade Union Congress report earlier this year demonstrates that these missing billions could be used to transform public services and take millions of children and pensioners out of poverty.

It simply doesn't make sense to cut staff when more not less staff are required to recover these billions in lost taxes.

Monday, 14 July 2008

The Best Waste of £200k of Public Money: Meme

Matt Wardman believes it's time for a Meme and he could be right. I've been tagged and it all started with this:

This morning Tom Harris MP proposed that the Howden and Haltemprice by-election was a monumental “waste of public money” of the order of “two hundred grand”. I differ; it is well worth it.
Matt's suggestions for the most monumental waste of £200k include:

The £200k costs being paid by the taxpayer for Ann Winterton MP and Nicholas Winterton MPs to rent their London house from themselves, and the death duty tax dodge that goes with it. The £200k estimated to have been spent by Mr Speaker Michael Martin on Legal Fees in order to keep MP’s expense details concealed from the public. The £200k of public money spent on each 0.04% of the £500 million just written off by the M.O.D. over the Special Forces Helicopters disaster.

I haven't seen the figure quoted in the Welsh budget but THIS public relations exercise isn't going to be cheap.

I’ll tag:
Cambria Politico, Cynical Dragon, Dylan Jones-Evans, Ordovicius, Peter Black AM, David Cornock (BBC Journalist), Three Line Whip, Iain Dale's Diary, and J. Arthur MacNumpty

Update: Italian chairs and desks formed part of a total spend of £880,000 on furnishing the new Caerphilly Council headquarters at Tredomen Business Park in Ystrad Mynach.

Talk about taking it to the next level.

Monday, 30 June 2008

The life of a lowly worker

"It would be nice not to have to worry about money but it is always on my mind"..."I don't really go out a lot."

"I enjoy my job, but I am unsure how long I can afford to continue in it."

Monthly budget:

Rent £270
Car £85
Council tax £85
Mobile phone £15
Home phone £25
Food £80
Credit card £100
Going out £80
Savings £100
Other (clothes, toiletries etc.) £160
Total £1000
Take home pay £1000
BALANCE £0

[Anonymous]

Thursday, 19 June 2008

Small, clever country

At the end of last week the Assembly Government spin-machine was in action, reporting the First Minister's visit to a small, clever country (they mean Wales. Ed.). Perhaps he ought to visit the offices of the Higher Education Funding Council for Wales to discuss the deficit in public funding of universities in Wales.

According to HEFCW, compared with England (a large, clever country) the deficit rose from £40million in 2005 to £61million in 2006. It is predicted to rise to £70million for 2007.

Tuesday, 4 March 2008

Blogging will be light

I guess this new found experiment does take up a lot of time when you get going. Blogging will be light over the next few weeks as I'm having to deal with a few family matters in addition to spending even more time with the family in the process, which is a blessing in disguise.

I leave you in the capable hands of Dotcommentator and Senedd Whip, and note that the freebie and first-to-do culture of the Welsh Assembly Government hasn't diminished. Nice gesture, but will it impact on budgets? - I can think of plenty of areas that the money could be spent on within the NHS (or other policy areas) and so can you, but suppose an easy-pleasing headline-grabber is needed by Welsh Labour pre-election. God help us!

You can still contact me in the usual places, if not by email (top right).

Pippa x

Friday, 14 December 2007

Local Government Funding: Conwy in Call my Bluff

Well, it had to happen. In what seems like a classic example of call my bluff, Conwy County Borough Council attempts to stick its two fingers up to the Welsh Assembly Government - You've failed to give us a fair settlement, so if you can pay for that, then you can maybe pay for this.

The council which will welcome next year's Urdd Eisteddfod does not know if it can afford the £300,000 it has promised to the event.

Originally, Conwy Council had said it would give the money towards the costs of festival in Penrhyn Bay in May. But council leader Goronwy Edwards said financial constraints meant the council had to reassess all its spending.

The Urdd said any loss of support would be a "blow" and facilities would have to be reassessed.

Councillor Edwards said:

The council had promised £300,000 to the eisteddfod two to three years ago, but at the moment because of our settlement, we have to look at all our spending and make sure that council services are maintained... the council was having to reassess all its spending, and not just on the Eisteddfod.

We only received a settlement of 1.1% in the budget, which is very low, and so the money available to sustain services is much lower.

No discussion has yet taken place on financial support, but the council's scrutiny committee has refused other applications for assistance, including one from the Royal Welsh Show. "Things are very tight but I do hope that the council will be able to keep our promise to the Urdd," said Mr Edwards. "The last thing we want to do is not give the money, but council services must come first."

A meeting has been arranged next Wednesday with the Welsh Assembly Government to discuss the council's financial settlement.

It's safe to assume that it won't come to this, but you have to hand it to Council Leader Goronwy Edwards - who must be displaying one proud smirk at the moment - for this clever move. Councillors up and down the country must be kicking themselves that they couldn't come up with something before Conwy, in order to be the first to drive the knife in.

Tuesday, 6 November 2007

Alun Cairns AM is in the chair and means business

Alun Cairns AM and Chair of the Assembly's Finance Committee has spoken frankly on his blog about scrutiny of the 'One Wales' budget.

He talks about the failure of scrutiny in past Assembly Committees and the need for all this to change with the current set up. He also mentions his previous 'scraps' with Minister Andrew Davies, and the how the committee will effectively tackle scrutiny of the budget over the coming weeks.

He goes on to say:

The big challenge for me is to see how the priorities in ‘One Wales’ are to be reflected in government’s budget. This is the time to scrutinise the affordability or the extent of commitments. Commitments have also been made on the money saved from the bonfire if the Quangos and I suspect some members will want to look for evidence that the figures are being achieved.

Being serious, I take the role as chairman of the committee seriously and will act independently and in a balanced way; however, we need to couple this with the general lack of scrutiny in the past and anyone (ministers in particular) giving evidence should be able to answer the basic premise of funding priority
following One Wales.

Alun has spoken about his commitment to the function of the committee and his role. As a 'Scottish' terrier known for biting the nether regions of past Labour Government Ministers in the Assembly, we could be in for an interesting month or so.

Monday, 5 November 2007

Andrew Davies' first ‘One Wales’ budget, ‘A bigger bang for the Welsh buck’

They really should sack the Communications Officer that came up with that headline.

Summary

The total Departmental Expenditure Limit for 2008-09 is £14 billion. This is split between Main Expenditure Groups (MEGs) as follows:

  • Health and Social Services - £5.7 billion;
  • Social Justice and Local Government - £4.2 billion;
  • Environment, Sustainability and Housing - £734 million;
  • Rural Affairs - £148 million;
  • Economy and Transport - £1.2 billion;
  • Children, Education, Lifelong Learning and Skills - £1.8 billion;
  • Heritage - £155 million;
  • Central Administration - £329 million;
  • Other Ministerial Services - £10 million;
  • Central Match Funding - £30 million; and
  • Public Services and Performance - £59 million.

Full details can now be read here.

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