Politicians in row over cash crisis

South Wales Evening Post - 6 February 2009

A war of words has broken out between two top city politicians over Swansea Council's huge financial blackhole.

Earlier this week the Post revealed that the £14 million gap in council funds could lead to a loss of 500 jobs over the next three years.

Council leader Chris Holley blamed the situation on the 2.9 per cent rise in the grant funding from the Assembly.

However, Assembly Finance Minister and Swansea West AM Andrew Davies has blamed the Lib Dem-led council.

He said: "Perhaps the Lib Dem administration should have resisted throwing millions at pet projects such as the CapGemini computer system that cost Swansea tax payers nearly £100 million.

"He should also be explaining how he and his administration have mismanaged vital services like the Child and Family Social Services which are now in 'special measures'.

"Or perhaps Councillor Holley should be explaining how his council managed to spend £594,000 on public relations last year, up £75,000 on the previous year's budget.

"Need I remind our Council's leaders that the Assembly Government does not tell them how to spend their budget? Rather than blaming others, why doesn't Councillor Holley and his cabinet take responsibility for how it has spent the people of Swansea's money?"

Now the council leader has hit back at his Labour counterpart.

Councillor Holley said: "I think the finance minister needs to get real.

"We didn't create the £14 million black hole. Who gives the money out? I think the public know the money is given from Westminster to the Assembly and then onto the local authorities. Why have they kept all the money for themselves?

"The uplift in grants across Wales has been so poor it is going to cost jobs," added Councillor Holley.