glasgowLOST
Media quotes regarding Culture and Sport Glasgow and the loss of the Common Good assets.
On the news that the European Commission is to investigate the CSG charity (below)
May 4, 2007
Robert W K Menzies
Commentator"The statement made by a council official (May 3), challenging the European Commission's querying of the proposed Culture and Sport Glasgow Trust, requires a response. There were always serious questions as to the legality of this process under European law. The outline business case (OBC) itself tacitly acknowledges this, albeit in ambiguous statements made by lawyers and tucked away at the back of the document.
What is being created here is a public services concession whereby a stand-alone company is employed to take advantage of tax breaks in the administration and exploitation of public facilities. This has always been a grey area of European procurement, but there is enough case law and guidance available to mount a serious challenge to the legal validity of the current proposal.
Where the concessionaire is operating in a market situation in the provision of such services - i.e., competing with similar leisure providers in the public or private sectors and bearing the risks of market conditions - then a public authority is obliged to put the concession to competitive tendering unless the process is fully in-house. Clearly, an in-house operation is not being proposed here.
What the council has done is set up an artificial company that is nominally controlled by the council as a charitable trust. This trust has a trading subsidiary providing the bulk of its income, but not within the council's full control. The process, therefore, lacks the required competitive tendering element. As such, any notion of the right of access for other potential providers under the treaty articles guaranteeing freedom to provide services is being breached.
While exceptions may be granted, the European Court has invariably thrown out applications seeking exclusivity, even where the activities transferred remained subject to supervision by the official authorities which had at their disposal appropriate means for ensuring protection of the interests entrusted to them.
The belief nurtured within the OBC's text that it's probably OK because-everybody-else-we-spoke-to-is-doing-it-and-nobody's-yet-put-up-a-challenge is irresponsible. Not only are public funds being put at risk but people's jobs could be on the line if the European Court duly confirms the illegality."
On the advertising for a £52K 'Media Manager' as the company's first move (below)
April 13, 2007
Christopher Mason
Leader of the council's LibDem group"This is a very worrying first step for the trust to take. I fear this post will be all about spin - putting out the good news stories and hiding the bad ones. The truth may be very difficult to find, especially as this organisation will be out with city council control.
Dividing the council into different organisations like this will end up being very expensive. Our culture and leisure services did perfectly well under council control."
Prior to the setup of the private company 'Culture and Sport Glasgow (below)
March 30, 2007
A council spokesman
"There are certain things that are commercially sensitive that cannot be discussed in public. Also, these people can only discuss an agenda at one meeting whereas in the council matters can be discussed at two or three different meetings.
There will be an agenda and minutes published. The newsworthy stuff from a meeting will be sent out as a media release."
March 30, 2007
M E Mackenzie
Commentator"The application to become a trust was received by the Office of the Scottish Charity Regulator last December. It agreed to charity status in February and registered the charity Culture and Sport. The charity consists of two parts, as it is also a trading company. The extent of the assets of the trust is not listed; the value in financial terms of the assets is not listed; the existing burdens on these assets, which are legally binding, are not listed. This is confirmed by the risk assessment statement by the council's legal advisers, Burness, who raise a series of potential problems."
March 29, 2007
Mike Kirby
Unison's Glasgow branch secretary"Unison is confident that the democratic control of public services and the management of these services will be removed by what amounts to a tax scam."
Christopher Mason
Leader of the council's LibDem group"Labour have not consulted the people about this transfer and they have no democratic mandate for it."
John Mason
Leader of the council's SNP group:"I believe the establishment of this trust is morally wrong, whatever a judge decides."
Brian Porteous
Director, Genesis Consulting"...thirdly, and most importantly, that the trust should be driven in an innovative fashion with a clear goal of improving the quality and quantity of services for the people of Glasgow and its visitors."
Unison spokesman
"We believe the council's proposals clearly breach the 1887 Public Libraries Act which says that there is a duty on the local council to manage the public libraries, museums and art galleries provided under this legislation.
That statutory duty cannot lawfully be hived off to a charitable trust, as Glasgow proposes to do.
This type of transfer is widely acknowledged as a way of avoiding tax, and this is the only possible advantage. To discard hundreds of hard-working staff, snatch libraries, museums and leisure centres away from the people of Glasgow, and to breach the law in doing it is bad enough. To do it as a tax dodge is worse."
February 3, 2007
John Murdoch
Branch secretary of Unison"This is an evil move, designed to save money, not to benefit services or staff. Staff are extremely concerned about the future under this charitable trust. "
John Mason
Leader of the council's SNP group:"History will look back on this as a fairly tawdry exercise, moving public money from one pocket to another. "
"Like seeing a smashed bus shelter, this leaves me more sad than angry. Part of this city is being sold off."
Christopher Mason
Leader of the council's LibDem group"I find it totally remarkable that, in a week when the Casino Advisory Panel criticised the council for failing to consult in its casino bid, there is no mention of any consultation on this. There is no need to rush this through. We are bringing an end to 200 years of democratic control of these services and it's not a road we should go down."
Keith Baldassara
Pollok Socialist councillor"These facilities are Glasgow's biggest cultural assets. How can we leave them in the hands of a trust run by multi-national businessmen?"
Niall Walker
Independent councillor"These assets the council are hiving off belong to the people of Glasgow. This proposal is immoral. We are told it will save money on council tax. It's a spurious saving and we do not believe it will happen."
January 20, 2007
John Mason
Leader of the council's SNP group:"Why the big hurry? It seems council leader Steven Purcell wants to push many big decisions through before the elections on May 3. This is profoundly undemocratic. Where is the room for consultation? Is this what the citizens of Glasgow want? It would be better to take time, consult, and reflect before making a decision."