IHE president scrutinises local authority use of PFIs

17/03/2015 | HIGHWAYS REPORTERS

The president of the Institute of Highway Engineers (IHE) is concerned about the increasing use of private finance initiatives (PFIs) by local authorities.

Nightingale (pictured), who is a director at JCT Consultancy, spends a large proportion of his working life visiting local authorities to deliver training to their staff in traffic engineering.

Speaking in his blog, the IHE president says it is becoming increasingly apparent that a serious problem is looming with respect to the scrutiny of highway design proposals.

He said: “Over the past year I am getting the same message from all the authorities that I train ‘We simply don’t have enough in house staff and those we do have often lack the skills and experience to fully scrutinise highway proposals properly’.

“Local authority highways departments have always struggled with the disproportionate levels of capital and revenue funding and in recent years revenue cuts of 33% have hit hard. This level of cuts are likely to continue in to the next parliament. Also the increasing use of outsourcing and joint ventures is exacerbating this problem to as yet unseen levels. PFIs, whilst few in number, have brought and are bringing significant opportunities to local authorities to renew dilapidated assets and deliver improvements and the longevity of some of the deals is a welcome step forward giving opportunities to undertake forward planning. The problem with the increasing use of outsourcing and PFIs is they can often result in a rapid skills drain from the authorities they serve.”

Nightingale points out that because local authorities are under severe financial pressure they are often keen to transfer their spending on staff from a revenue to a capital account.

He added: “The easiest way to do this is encourage the transfer of employment to the private consultancies who deliver the services. It’s not always a bad idea and can work well but I am increasingly being told of some of the problems that can result. Consultancies are naturally profit driven and must utilise their assets (including staff) to the maximum. This can sometimes result in the most skilled engineers being used to provide services across several contracts rather than focusing on a geographical area as they did when employed by the local authority. This can result in a loss of real resource to some authorities. The flip side is of course that consultancies can bring additional skills in from elsewhere and enhance the services but I am regularly told that the local authorities value local knowledge highly and they mourn the loss of local engineers taking ownership of local schemes.”

According to Nightingale, this can also lead to relationships between consultancies and local authorities becoming adversarial with cooperation being replaced with a “charge for everything” culture.

He notes: “Ultimately this serves no one and it’s sad to hear. The most worrying concern I am hearing however is that of the increasing lack of ability for local authorities to provide proper scrutiny of schemes and proposals. If the arrangement is to work the local authority may contract out the design work but must retain the duty to set strategies, scrutinise proposals and consider the long-term impacts and of course satisfy the wider local interests including the political. Denuded of skilled staff they are finding this increasingly difficult.

“We need to ensure that our joint ventures are run well, in a spirit of cooperation and that both parties get what they need to deliver quality sustainable solutions. And in simple terms I am being told that we have to find a way to divert and ring fence some of the capital spend to support the employment and training of local authority engineers. This will allow local authorities to retain at least a small core of highly skilled and highly motivated engineers and importantly make provision for succession. Some larger authorities are very good at this, Transport for London have a long standing programme of graduate recruitment and invest heavily in growing talent, Transport for Greater Manchester are also making significant progress. But it costs money and is often the preserve of these large authorities. So why not cooperate, neighbouring authorities could pool resources, what about regional graduate training schemes?”

Highways InProfile

latest magazine issue
Highways jobs

Project Lead - Bridges and Structures WMF3037e

£45,718 to £46,731
We are currently seeking to recruit a Project Lead to join our Bridges and Structures team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Traffic Management Technician - WMF3040e

£27,711 - £28,624
Are you an organised and motivated individual who wants to make a difference to how our roads are managed? Cumbria / Various
Recruiter: Westmorland and Furness Council

Traffic Management Officer - WMF2114e

£37,035 - £37,938
Are you an experienced and motivated professional looking to take the next step in your traffic management career? Cumbria / Various
Recruiter: Westmorland and Furness Council

Senior Transport Planner

£47,532 - £50,574
Royal Greenwich is a borough synonymous with first class modern services Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Technician - Highway Inspector

Grade 8 £28,797 - £30,708 per annum (Pay Award Pending)
Within the Highways Maintenance Team we are looking for an enthusiastic, customer focused and experienced person to join the Service Derbyshire
Recruiter: Derbyshire County Council

Project Delivery Senior Team Leader

£74,480 - £85,964
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification) Glasgow City
Recruiter: Transport Scotland

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
Westmorland and Furness Council is seeking an organised and enthusiastic individual to join our South Lakeland team Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bulky Operative

£25,584.00 - £27,269.00, Grade 5, 37 hours, Permanent.
An opportunity exists in the Council’s Street Scene Services for a Bulky Operative Wakefield, West Yorkshire
Recruiter: Wakefield Council

Project Delivery Team Leader

£57,710 - £71,842
Are you an experienced Chartered Civil Engineer (or equivalent professional qualification). Glasgow City
Recruiter: Transport Scotland

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Shared Service Manager (Waste) North Herts Council

£52000 - £61000 per annum
Shared Service Manager (Waste) North Herts CouncilNorth Herts CouncilPermanent, Full Time£52,866 - £61,866 per annum, plus car allowance (pay award pe England, Hertfordshire, Letchworth Garden City
Recruiter: Essex County Council

Traffic Management Officer - WMF2102e

£37,035 - £37,938
This is a key role supporting the delivery a wide range of traffic and road safety schemes. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Assistant Traffic Management Technician - WMF2104e

£25,584 - £25,992
This is a key support role, helping to deliver a wide range of traffic and road safety schemes across South Lakeland. Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Flood Risk Engineering and Strategy Officer

£49,764 - £55,623
In line with our One Coventry Values, we want to ensure that our communities are represented across our workforce Coventry, West Midlands
Recruiter: Coventry City Council

Senior Integrated Transport Officer

£34,324 - £37,529
Are you an experienced transport planning professional ready to influence strategic policy and drive real change Matlock, Derbyshire
Recruiter: Derbyshire County Council

Roadworker Trainee LGV Driver (3 Posts)

Grade 6 £25,183 - £25,638 per annum (Pay award pending)
We’re looking for Roadworker/trainee LGV drivers to be part of our team undertaking major highway, bridge and related construction and reconstruction Derbyshire
Recruiter: Derbyshire County Council

Engineer

£44,430 - £51,663
This post is within the Highways Design and Delivery Team. London (Greater)
Recruiter: Tower Hamlets London Borough Council

Civil Enforcement Officer - WMF3013e

£27,711 -£28,624
Are you seeking an active and challenging role, part of a friendly and welcoming team? Cumbria / Various
Recruiter: Westmorland and Furness Council

UGO Bus Driver

Up to £25081.00 per annum
UGO Bus DriverPermanent, Part TimeUp to £25,081 per annum (full time equivalent)Location
Recruiter: Essex County Council

Head of Highways Operations

Salary
Somerset Council
Recruiter: Somerset Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW