Bernard Ginns: Business Link has some work to do to justify its £35million

A WHILE ago I asked the hard-working and driven chief executive of a Yorkshire plc what he did to relax. Before he could answer, his finance director jumped in and said: "Write strategy documents."

We all laughed, though I'm not sure he was joking. It is something that we are all guilty of. Last week, for instance, I was enjoying a well-earned holiday, but I still found my mind wandering to work-related subjects.

In between changing nappies, haircuts and MOTs, my thoughts returned to a story I've spent a lot of time on over the last few months. It concerns Business Link Yorkshire, the taxpayer-funded support organisation.

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One of the benefits of having a break is that it gives you time to reflect away from the hustle and bustle of daily newspaper journalism. You can ponder some of the bigger questions that sometimes get lost in the diurnal grind. For example, does Yorkshire need Business Link?

At the most basic level, it seems right that there should be a service to provide advice to people who want to set up businesses. There are many rules and regulations that must be abided; tax laws to be adhered to, etc. It seems intuitively correct that there should be one place for people to go for all this information.

The question is how many layers on top are needed. Does Yorkshire need a service with 400 employees that costs the taxpayer 35m a year, or 95,000 a day?

According to Yorkshire Forward, it does. Business Link, which is delivered in this region through a private company called Y&H IDB, provides good value for money, according to Simon Hill, the executive director of business at Yorkshire Forward.

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He also believes Business Link will be safe under a Tory government. Mr Hill said: "I think it will be seen as core business for government for the future. Remember, Business Link effectively is a service which was invented by Michael Heseltine under the Conservative government and has stood the test of change of political government over many years."

He added: "I think, like all businesses and all organisations, it will be pushed to be more efficient, to do more with less money and every part of the public sector will have to do that.

"It needs to look at use of new technology, use of the web, effective call centre operations, all the things that we are currently doing."

Business Link represents Yorkshire Forward's largest single contract. As such, its success or failure is key to the future of the regional development agency, which will come under the microscope if the Tories win power.

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As I reported last month, Business Link has come under pressure to raise its game following problems with a 1.4m computer system that didn't work properly, falling customer satisfaction levels, an inability to recruit suitable staff and the departure of two directors from the senior management team.

More worrying though was the admission by Business Link's chief executive Helen West that the organisation had made mistakes in its handling of public contracts.

She told me two complaints had been made about the organisation's procurement process. I asked Business Link if it would share the findings of an internal investigation into those complaints.

A spokeswoman said: "Our internal audits are very rigorous and are conducted by members of the senior team. The formal outcome of the internal investigation concluded that there was no evidence of wrongdoing or 'a jobs for the boys' culture. However, the report's conclusions also highlighted a need to tighten our processes; actions which we have already implemented.

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"Unfortunately, it is not Business Link policy to release internal audits so we cannot comply with your request. In working with Yorkshire Forward, to whom we are accountable for our processes and procedures, we are now working to ensure that we strengthen our procurement processes and broaden our supplier base."

This refusal rankles, though it does not surprise me. Refusing to release the full findings of the investigation may avoid some unfavourable headlines in the short term, but will do nothing to instil confidence in the long-term.

If you are spending public money, you have a duty to the taxpayer to make sure that you are totally transparent. Lack of transparency creates an impression that an organisation has something to hide, which may or may not be the case here.

Ms West and Mr Hill came clean that there were problems with procurement, but only after a journalist contacted them. Without my inquiries, would they have taken any action?

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I'm sure Business Link has helped some businesses get off the ground. I'm sure it has helped create and protect some jobs.

I'm sure it has lots of committed employees who work hard to provide a decent service.

But in these increasingly austere times, we need to make sure that every penny of public money is spent carefully, wisely and openly.

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