The Island’s Highways PFI contract isn’t ‘currently perfect’, but the man now in charge of overseeing one of the biggest contracts the Isle of Wight Council has ever signed says it is vital that the Island draws maximum benefit from it and works through the issues identified.
Councillor Jon Gilbey has recently been reappointed to the Isle of Wight Council’s Executive as part of a major reshuffle at County Hall following the departure of Cllr Jonathan Bacon as Council Leader.
Cllr Gilbey, a businessman from Shanklin, has been given the responsibility of Major Contracts Management which includes the 25-year private finance initiative contract with Island Roads. The contract, under which the Island’s highways network will be brought up to, and maintained at, an unprecedented standard, was signed in September 2012 and began the following April.
Speaking this week, Cllr Gilbey has told Island Echo:
“I’m pleased to be back on the executive with responsibility for the Highways PFI and I’m grateful the current administration feels I have a value to add to this vital partnership.
“There has been much debate about the contract inherited four years ago and rightly so, as the PFI is a huge project and it is vital that the Island draws maximum benefit from it.
“The reality is, the contract is not currently perfect but, then again, that was never going to be the case – the most comprehensive single contract ever let by the IWC bringing together a range of services previously provided by seven different organisations, it was always going to throw up problems requiring resolution. It is clear to me that some things weren’t included in the contract that possibly should have, and some things were included that possibly should have remained within the remit of the IWC. However for me it is not about such oversights that may exist – it is about how we sensibly work through these issues for the benefit of the Island and its residents. None of the issues identified are insurmountable and we can – and will – work through them.
“As we prepare to do this, it is worth remembering the situation prior to PFI. Our roads were among the very worst, if not the worst, in the country. Resident surveys regularly told us that improving the highways should be the council’s number one priority.
Article continues below this advertisement “The PFI quite simply was the only way we could do this. There was no mechanism, other than through the PFI, to attract the significant investment required to bring about the desired improvements. What the PFI has given us is £260 million in government grant to do this, at a time when councils nationally face a £12 billion shortfall in funding. We should also remember that in 2010 a Government spending review cut funding by 28%.
While next year’s programme of resurfacing is currently being devised, it will again be intensive with greater focus on residential roads. There will be further work on the strategic routes with investigations due to begin shortly to determine the scope of reconstruction work required at Fairlee Road and Forest Road, Newport.
The 2017 programme will also feature 4 major and 20 minor drainage schemes while the footway improvement programme will also be stepped up.
Defending the contract, Cllr Gilbey has continued to say:
“While there are some issues that need to be resolved and interpretations that need to be clarified, we shouldn’t ignore the improvements being delivered. As a result of the existing contract, for example around 300 kilometres of road have been upgraded and 12,000 street lights delivering energy savings directly to the IWC have been installed alongside other assets that are of a higher standard than would be seen nationally elsewhere, the network is also being maintained at a similarly high standard. Yes the contract needs attention but it is wrong to suggest it is fundamentally flawed. Let’s also remember it saves the IWC around £1,000,000 per year when it commenced in April 2013.
Moving forward Cllr Gilbey says that the Council and Island Roads must and will adopt a pragmatic, sensible and professional approach to cost savings:
“What is without doubt, is that the council’s own financial situation has deteriorated dramatically since the contract was conceived and signed, which underlines the need to resolve outstanding issues and to negotiate a service that reflects the council’s current financial position and outlook, but that meets the Island’s needs.
“I would not like to pre-empt yet-to-be-had talks with Island Roads but suffice to say that alongside the currently listed savings options, there are other areas to explore as additions or alternatives, as it is in everyone’s interest that the PFI delivers maximum value. There are also some jointly identified savings which could have been taken some years ago, to be agreed, that would have little or no impact on the ground. It is now high time that decisions should be made for the interest of the IWC and Residents. I will ensure these informed decisions are progressed to deliver the benefits we mutually desire.
“During these forthcoming talks, both the council and Island Roads must and will adopt a pragmatic, sensible and professional approach going forward. We need to arrive at a service that will maintain the local network, that may be at reduced specification, but that is still vastly superior to that inherited by Island Roads and indeed much better than many other local authorities across the country.
“From my short time back in post, and the 3 months I have left, I’ve seen no indication whatsoever that this will not be possible to achieve, and I’m hopeful of a refreshed working relationship and attitude to contract management that will yield an outcome that is in the Island’s best interests”.
Island residents are currently being invited to fill out an Island Roads survey to provide feedback to the contractor. The online survey can be accessed at https://www.surveymonkey.com/r/IOWSchemeSurvey.
