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Digital City (UK) Ltd, R.I.P.

Hard on the news that John Richard ‘Rikki’ Hunt has filed for bankruptcy, comes the news that Digital City (UK) Ltd is now in the process of being struck off the register of companies. So that’s £½M of Swindon taxpayers’ money gone, despite the assurances of the Messrs Bluh and Perkins that the equipment installed by the company and the use that could be made of that was worth more than the loan to them from Swindon Borough Council, that it was a no-lose proposition. How a patchy wireless internet service for Highworth, and nowhere other than Highworth, could be worth £½M is hard to see, but that is all we got for the money our councillors squandered on our behalf on this project.

Lest we forget, here are a few things said about this failed adventure with our money by Mr Bluh in December 2009.

This is a commercial decision, in the new world in which we all live more and more commercial decisions will be made. An opportunity was put to us, and we were asked if we wanted to invest…. This is a commercial venture that will bring commercial return. The only affects on capital budgets will be if this loan does not get repaid in full…. To get a reasonable level of council tax and to go forward we have been required to find savings and efficiencies. We are doing everything that is humanly possible to keep this ship afloat.

The ship was holed below the waterline before Mr Bluh squandered our money on it, and is now sinking rapidly to the bottom of the ocean. There were many that brought this to the attention of our arrogant council leadership at the time. They wilfully chose not to listen. Now it will be us, the council taxpayers, rather than those councillors personally, that will be paying for their financial stupidity.

The fall and fall of Rikki Hunt

Once upon a time, not so long ago, the likes of Mr Bluh and Mr Perkins were fond of telling the people of Swindon what a great person they thought Mr John Richard ‘Rikki’ Hunt was. How they thought he was a great person to be leading a company to which they had loaned almost £½M of Swindon taxpayers’ money because, in their view, he was a very experienced business man from which Swindon would benefit.

Of course not all experience is equal. Eddie ‘The Eagle’ Edwards had much experience of ski-jumping… and of coming last. Mr Hunt has now managed the same feat as a business man, going bankrupt to the tune of over £1M, including over £400,000 to the tax-man. As he filed for bankruptcy on 8 March this year, it also puts some perspective on his apparent generosity in ‘gifting’ to Swindon Borough Council his stake in the failed wi-fi company for which he had convinced the aforementioned gullible councillors to part with our money. It would have been no financial loss to him, only to his creditors.

Mr Hunt’s involvement with wifi company Digital City (UK) Ltd was via a consultancy company he set up for that purpose, Avidity Consulting Ltd. That company is now in the process of being struck off the register of companies. How much Avidity received from Digital City — and so indirectly from Swindon taxpayers — for its consultancy services has never been revealed. Also of note, before anyone is overcome with sympathy for Mr Hunt’s predicament, is that his wife, Laura Hunt, is not bankrupt, remaining a company director. For the Hunts, Rikki’s bankruptcy may be little more than a minor business inconvenience, rather than a case of serious financial hardship.

Pulling a fast-one on takeaways

It seems that Mr Heenan has taken the political silly season to heart. It difficult to see any other explanation for his apparent sudden disliking for takeaways.

Mr Heenan has been involved in development control , having been on Swindon Borough Council’s Planning Committee — more recently as committee chairman — since he was in his political nappies. He would be aware, one would hope, of the contents of his council’s Core Strategy, which requires local retail centres in all new developments to be in close proximity to other community facilities. In particular, if you look at any of the maps for new developments around Swindon in Part 4 of the strategy, you will see that each one has the ‘local centre’ and primary school located together. Any retail development outside of the the local centre is strongly discouraged by the strategy.

Yet now, Mr Heenan has proposed that fast-food takeaways be banned within ¼ mile of any school, as a ‘contribution’ to reducing child obesity. So you wouldn’t be able to open a takeaway anywhere outside of a local centre, nor within ¼ mile of a school, yet all new local centres would be within ¼ mile of a school.

Now komadori is only a very occasional eater of takeaways — about once per month — but they are an essential part of of any local community centre, along with a small general store, a pub and, quite often, a hairdressers. If there was evidence to support Mr Heenan’s ideas, perhaps it would be reasonable, but there is no hint of evidence in the agenda for the meeting at which Mr Heenan proposed this idea. And if takeaways should be banned, then what about general stores that sell sweets to children? And what about all those parents that drive their children to school — why not ban petrol station shops from selling junk food as well, in case the parents stop-off on the way and buy their kids something unhealthy? If Mr Heenan’s really concerned about children’s health, why not ban parking and waiting near schools, so that all children have to walk to school? All of these suggestions would be regarded by some as ridiculous, yet all could have just as big an effect on children’s health.

Mr Heenan’s proposal is bereft of logic. To me this looks no more than a quick-fried policy, cooked-up in a hurry and quickly served to grab some summer headlines.

The road still travelled… false alarm on the buses

Back in March, Stagecoach in Swindon and Thamesdown Transport started making noises about planned cuts in subsidy from Swindon Borough Council, bemoaning the dire effect it would have on evening and Sunday services. At the time I listed all the council subsidised bus services that might be effected, 11 in total. In April, both companies were still complaining. The council reinstated funding to just one service — the number 24 that runs through the resolutely blue-voting Lawns area.

The end result? Has there been a decimation of evening and Sunday services? No. In fact, not much change at all. The axe has been taken to evening bus services on the No. 11 and No. 19 and… that’s it. With Thamesdown Transport seemingly continuing to run all its other formerly subsidised services on a commercial basis, and Stagecoach now announcing it will do the same, there’s not much change at all. That’ll be no comfort to residents of East Wichel, Pinehurst and Greenmeadow who are now deprived of evening services on the No. 11, nor to those of Eastleaze, Shaw, Nine Elms, Peatmoor and Sparcells who have lost the evening services of the No. 19. But compared with how bad the bus companies were claiming it would be, the damage is very limited.

One could almost be forgiven for wondering whether the bus companies have been taking tax-payer subsidies for years for services that were actually profitable.

A pub for East Wichel

Artist impression of Marston’s East Wichel pub

Today the Adver has reported that Marston’s Inns has submitted a planning application for a pub at East Wichel. Despite what the Adver says, I can’t yet find the planning application on Swindon Borough Council’s website. The only information on it I can find is in the minutes of the March meeting of the Wichelstowe developers’ community forum.

East Wichel pub plans. Click for larger image.What this pub won’t be is one that’s at the centre of the community. It’s on a plot — designated as a ‘commercial plot’ in the East Wichel masterplan — right at the edge of the development. Indeed, once Blackhorse Bridge across the motorway is opened, it’ll be not much closer for most East Wichel residents than the Check Inn in North Wroughton — the two pubs will stand almost opposite each other separated by the M4. With the new pub including a 180 seat restaurant — dwarfing the Check Inn’s 30 seat dining area — it’s clearly aiming to serve rather more than just the local community.

The Check Inn has had a fairly chequered history of late, with landlord’s struggling to make a success of it — Fuller’s are advertising it to let at the moment. A vast new pub nearby, just across the motorway, may be good for the residents of East Wichel, but for those of North Wroughton it’s likely to bring further disappointment.

Swindon Borough Councillor attendance rates 2010

After a couple of years of improvement, attendance rates of councillors at Swindon Borough Council meetings stagnated in 2010. On average, across all councillors the attendance rate was 84%, which is not a significant change from 2009 when the rate was 85%.

In terms of attendance rates, the top 5 councillors of 2010 were:

Another 16 councillors attended over 90% of the meetings they were recorded against, a decrease from 22 who were in that position in 2009. Three councillors attended over 50 meetings during the year, including two of those with attendance rates above 90%.

The councillors with the worst attendance rates (60% or less) in 2010 were:

Of those, three ceased to be councillors last May, whilst Mr Dobie, Mr Smith and Mr Wiltshire are saving themselves from having to explain their poor attendance by not seeking re-election at the elections later this week — consistent poor attendance since they were last elected in the cases of Mr Dobie and Mr Wiltshire. That leaves Ms Heenan, elected only in May 2010, who clearly has a lot to learn about attendance at council meetings from her son Mr Heenan. Compared with 2009, although the number of councillors not attending many of their meetings is little changed, for those councillors in this group their individual attendance rates have got far worse.

The figures are derived by taking an entry in a meeting attendance page of ‘Present’ or ‘In attendance’ as meaning the councillor was there, and any other entry as meaning that they should have been there but weren’t. Full details of all Swindon Borough Councillors’ 2010 meeting attendance rates are available in the archive.

The road less travelled… from June

Sunday services… departing soon.In a generally downbeat service update from Stagecoach in Swindon, where service 7 gets an increase in frequency, but many others are either reduced or axed altogether (R.I.P. the No 54 bus, killed off less than a year after it was re-routed to avoid West Swindon), comes advanced warning of further cuts to come.

Sunday services in the Swindon urban area
We regret that as a result of the total withdrawal of Swindon Borough Council funding for evening and Sunday bus services in Swindon that further changes will have to be introduced from Sunday 5th June 2011 and full details will be given nearer the time.

That’s quite a lot of services that are going to get a rather short back and sides unless Thamesdown and Stagecoach decide they can run them without subsidy. Currently in the evenings services 6, 7, 11, 16, 19, 20, 24, 29 and 72 and on Sundays services 6, 7, 8, 11A, 16, 17 (partly), 19 and 29 are subsidised by Swindon Borough Council.

Now I appreciate that providing a bus as a publicly subsided late night taxi is not a good use of taxpayers’ money — and many of these subsidised bus services do run with none or just one passenger on board — but a few are quite busy. Keeping a bus service running just for the sake of the one service in the middle of the evening that loads well with people heading into town for a night out may not be a viable proposition. But the blanket cut of evening and Sunday services looks like a cut made in haste, rather than a cut done with consideration for where the money could most effectively be saved.

Bailing out before a bail out

It is normal practice in any private sector company for the executive to have shares either in that company or, is a subsidiary of some larger organisation, in the parent company. For companies traded on a stock market it is often mandatory for the directors to own shares in their company. That way it ensures that their own well-being is most likely to be guaranteed by them ensuring the well-being of their fellow shareholders. A director without shares in their company — according to the accepted logic — is more likely to perform acts of reckless self-interest that damages the company that employs them.

So when Mr John Richard ‘Rikki’ Hunt claims he is going to ‘gift’ his 30% stake in his failing wifi company Digital City (UK) Ltd to Swindon Borough Council, should that be seen as an act of generosity? No. Given that the company has been unable to keep up its loan repayments to the council, and that it has failed almost every target it has set itself, its debatable whether those shares are worth anything anyway. And now Mr Hunt wishes to remain chief executive of the company he’s lead to failure, yet without the financial incentive almost every other company deems essential to ensure a chief executive does their best for the shareholders. That would seem to be a recipe for financial disaster, though Mr Hunt seems to already have achieved that in a fairly comprehensive manner.

Mr Hunt claims that his company was damaged by public criticism.

There has been a lot of effect on the business with the public noise and debates that have gone on… the kind that is politically damaging to us and the aggression towards the project.

Is political discussion really a surprise when he went looking for funding from politicians? And lets be clear, there has been no ‘aggression’ towards ‘the project’, only to the secretive way in which the decision was made to pour the money of Swindon taxpayers into a company that on the evidence available to those taxpayers at the time had no track record in its industry, no credible plans, and no understanding of the market it was entering. The criticisms remain valid, and the taxpayers of Swindon are currently £½M poorer as a result.

The responsibilities of a director

When Mr Perkins was appointed as a director of Digital City (UK) Ltd last year, I was told by Mr Bluh that he was selected to represent Swindon Borough Council on the company’s board because of his skill and experience in business. The company of which Mr Perkins is a director has failed to make payments on its loan from the council… and that failure pre-dated by a month Mr Perkins claiming that payments were still being made. According to Mr Perkins, that’s all fine and dandy.

I was asked in December whether it was up to date with its payments, and I said yes — because that’s what I had been told. When I made that statement it was correct, based on the information I had at the time.

Perhaps it’s time that Mr Perkins reminded himself of his obligations under the Companies Act 2006.

(1) A director of a company must exercise reasonable care, skill and diligence.
(2) This means the care, skill and diligence that would be exercised by a reasonably diligent person with—
(a) the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by the director in relation to the company, and
(b) the general knowledge, skill and experience that the director has.

At the moment, Mr Perkins’s diligence in checking his facts before making public statements about Digital City (UK) Ltd appears to be falling far short of reasonable expectations.

It’s as though I’d never been away…

Sometimes, returning from a long absence is like awakening from a hibernation: everything is new and fresh. A new beginning. But then there’s times like now when it seems that nothing’s changed.

So what’s not new? Fanciful predictions that the old College building will soon be demolished continue to be peddled by our less-able councillors. Now — as last summer — Mr John Richard ‘Rikki’ Hunt, is begging for money for his tin-pot wifi company that’s taken almost £½M of our money and delivered virtually nothing in return, failing on its commitments whilst it does so.

And the unifying feature of it all? Mr Perkins spouting unadulterated rubbish. For example, Mr Perkins on the old College site:

We’ve been in discussions with the developer for the last few weeks. If that goes through, we’ll start removing the college from Swindon. Hopefully it’ll be going ahead by April.

Would that be April 2012? As the rather more rational Mr Bawden notes, we’ve heard this all before… many times.

We were talking about it when I stepped down. Now five years later, we’re still talking about it! It’s no good saying: it’s all the economy. Until two or three years ago, the economy was going like a rocket…. I get more and more frustrated walking around the town centre, I feel we just don’t really know what to do with it.

Quite. But hey, we’ll soon have yet another person at the council’s expense — over £45,000 of expense — puffing out a smoke screen about grand plans for nothing much in the town centre, when Forward Swindon appoints a new Head of Communications and Marketing.

Mr Perkins on wifi is no more logical, despite his alleged business acumen.

No business in its first year is completely trouble free and most of Highworth is still operating and the technical problems are mostly sorted out.

Given that Digital City (UK) Ltd originally claimed that their wifi in Highworth would be fully functional by 15 January… last year, even someone as politically warped as Mr Perkins should be able to see that’s as shining an example of failure as one could ever hope to see. They may brand themselves as ‘Get Signal’, but in Swindon getting Digital City (UK) Ltd’s signal is one thing you’re guaranteed not to do.

However, things don’t always go as you plan in business, particularly when you are dealing with something that is innovative.

As many have noted — but Mr Perkins and his colleagues choose to ignore — there’s nothing innovative about wifi. Seemingly the only thing innovative about this project has been the company’s ability to pull the wool over the eyes of the likes of Mr Perkins and walk away with £½M of our money whilst delivering almost nothing in return.

Mr Perkins also flatters himself when inviting people to talk with him.

I wish people would come and talk to us if they have a problem, but it has to be in a positive way. Going through reports to find things that are not 100 per cent right is not helpful — business doesn’t operate like that.

As anyone who has seen Mr Perkins in the council chamber will know, taking a positive approach with him is not something he rewards. Mr Perkins in the council chamber has just one mode of operation, a loud-mouthed, bad tempered yob, shouting down anyone he disagrees with, spitting with fury and hatred.

Swindon Borough Council has repeatedly waived the conditions it applied to its loan to Digital City (UK) Ltd. If Mr Perkins isn’t happy with the council being legitimately held to account over how it’s spent our money, then he really shouldn’t be a councillor.