South Wales Evening Post - 9 October 2006
A controversial scheme to bring Swansea into the 21st century is not saving anyway near as much money as it was hoped - meaning residents could be hit in the pocket.
The council is relying on its new £83 million eGovernment computer system to save £26 million pounds over the next 10 years, to help pay for the scheme.
It was expected to save £711,000 in its first year, but red-faced bosses have admitted it is likely to miss the target by almost £500,000.
Now unions are warning taxpayers they will have to make up the shortfall or face service cuts.
Jeff Baker, branch secretary for Unison which represents around 6,000 council workers, said: "We warned about the risk of trying to use predicted savings to fund this hugely expensive scheme.
"It had run into financial problems before the deal had even been signed because of a spiralling budget.
"There was also a warning from the district auditor that the council was relying very heavily on achieving the projected savings.
"Now we find out that it is going to be £500,000 short of its first year's savings.
"That money has been budgeted to pay for the system and so it will have to come from somewhere."
The council signed a deal with local IT firm Capgemini to set up and run the new computer system in January.
It is part of a scheme to revolutionise the way it deals with the public and improve customer access.At the time, Councillor Mary Jones, who running the project, admitted that the projected savings for the scheme were a crucial part in paying for it.
She said: "We expect to save millions of pounds during the 10-year contract, which means the programme pays for itself."
But the scheme has been plagued by problems including spiralling costs and the longest strike in local government history.
Council IT staff spent eight weeks protesting against the plans after learning about them in a European trade magazine.
Now it is clear that savings in the first year could be as little as 30 percent of the expected target.Councillor Jones said this week that talks were taking place with IT firm Capgemini about how to address the shortfall.
She added: "We remain committed to improving customer access and levels of service and that is why a decision has already been made to open a new contact centre alongside the new central library, as part of the development of the civic centre.
"A final decision on how to proceed with phase two of the programme has not yet been made, but will need to be considered as part of the council's budget planning."
Your Views
This project was ill concieved from the start. At face to face sessions with staff, Chris Holley and Tim Thoroghgood were asked 'HOW' they could achieve these savings. It was obvious from their 'non' answers they didn't have a clue!!
Simon, Swansea
This is an outright disgrace. If it were a Limited Company being run in this way, then people would be sacked for incompetance. They are blatantly ripping us taxpayers off. Lets hope us voters teach them a lesson at the next election.
Malcolm Graham, Hungry Horse
The Lib Dem run council is throwing millions of our money at the Service @ Swansea project but it doesnt even have the call centre we were promised. Time for a radical rethink or a change at the top. Preferably both.
Alan Pearson, Swansea Marina
Can we now expect a 70% compensation payment in our council tax for the savings that Swansea Council didnt manage to make. Roll on the next elections.
Jan Thomas, Killay
Who the hell is runing things in Swansea Council. Do they seriously think that skating rinks and music events are going to make us forget their ineptitude. Chris Holley and Mary Jones should apologise and resign immediately.
Brian Simpson, Dunvant
This scheme was rushed through in private session just days after former chief executive was suspended. It has never been properly scrutinised by any committee despite costing Council tax-payers millions of pounds. It is a scandal worth the cost of replacing the leisure centre seven time over.
Arthur, Swansea
I'm absolutely appalled that our own Councillors who are supposed to serve us, as tax payers have allowed this project to go ahead when all the warning signs were there before the deal was signed. I hope the people who signed the deal will be held to task and sacked for gross mis-management.
Matthew Eley, Ridgeway
