£600,000 storm over aborted contract

OPPOSITION councillors in a Yorkshire city have called for greater transparency on consultancy fees after it emerged more than £600,000 of taxpayers' cash has been spent on an aborted contract aimed at saving millions of pounds.
By The Newsroom
Published 24th Feb 2010, 10:37 BST
Updated 24th Feb 2010, 10:37 BST

York Council spent the six-figure sum on consultants from Northgate Kendric Ash (NKA) who were tasked with overseeing a project to shave 15m off the authority's spending over the next three years.

The scale of the financial cost to the city's taxpayers emerged yesterday after NKA withdrew its staff in December following a dispute over the contract.

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The leader of York Council's Labour group, David Scott, said: "This is a very significant amount of money at a time when the council is looking at making job losses.

"We need to end this unwanted culture of employing consultants that is a substantial drain on the council's financial resources.

"When there are occasions where outside expert help is needed, there should be greater transparency from the outset so that everyone is aware how much money is being spent."

Northgate Public Services' managing director of citizen services, Joe Bradley, maintained that the 602,459 fees were "significantly outweighed" by the savings delivered.

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Council leader Andrew Waller admitted more consultants could be drafted in for the project but stressed it remained within budget after 1m had been set aside.

He added: "We are aware that we need to make substantial efficiencies in the way the council works. We will use the people best placed to deliver these savings for the taxpayer."

Related topics:YorkshireLabour