Opposition politicians were left “incensed” after being blocked from asking Newcastle’s Labour leader about the stripping of a council contract from a firm he is linked to.
Liberal Democrat Nick Cott has issued a call for “clarity and transparency”, after the Chronicle revealed this week that Orca LGS Solutions had lost a building contract with Newcastle City Council. The company, which is behind an unfinished modular housing development in Gosforth, has ties to council leader Nick Kemp, who has previously lobbied the local authority on its behalf.
A furious Coun Cott demanded at a council meeting on Wednesday night that the Labour chief make a statement about his involvement with Orca, but civic centre officials refused to put his question on the agenda on the grounds that it “did not relate to a strategic or policy issue”. The opposition group leader called the blocking of his request “very concerning”, while the authority insists that all of its protocols have been followed correctly.
Read More: Construction firm with links to Newcastle Labour leader stripped of council housing contract
The city council confirmed this week that Orca had lost its contract as it was “not meeting required contractual performance”. Coun Kemp’s LinkedIn profile states that he has been Orca’s “Director of New Business and Housing Strategy” since 2018.
However, he is not directly employed by Orca – they have instead been a client of his PR and lobbying agency, NKA Public Affairs. In emails seen by the Chronicle, Coun Kemp had told council staff last year that Orca offered a “fantastic opportunity” and was “keen to develop a strong relationship” with the authority.
Coun Cott told Wednesday’s meeting that the council “needs to be seen as transparent” and that he was “very surprised that nothing has been said about this issue”. Lord mayor Karen Robinson, herself a Liberal Democrat councillor, told him that it was not the time or place to discuss the Orca matter.
Coun Cott told the Chronicle that he was “incensed that my legitimate question has not been allowed to be presented”, calling on Coun Kemp to explain “his precise involvement with Orca, including financial interests”. He said: “The important things are clarity and transparency; all the facts need to be made public so that residents can be reassured.”
Coun Cott added: “We need to know what the cost to the council will be of severing ties to Orca and whether they can be recovered. The public will not understand why this question was refused.”
This summer, Coun Kemp was the subject of a public complaint regarding the fact that his role with Orca is not declared on the council’s register of interests. That was dismissed on the grounds that he is not directly employed by them and was given his title for the purposes of “outward facing activity”, with the council saying that Coun Kemp had not previously been required to register details of all the organisations that NKA provides services for.
The council has also moved to clarify that the decision to award Orca’s contract to build at Aln Crescent in Gosforth and Broomy Hill in Throckley was not ratified at a cabinet meeting in November 2019, but was in fact made several weeks prior, though a report to that meeting does reference those sites. Coun Kemp was present at the cabinet meeting and did not declare an interest, though the council again said he was not required to do so.
A Newcastle City Council spokesperson said: “Standing orders allow members to ask questions of the leader and cabinet members at council about strategic and policy issues. However, the question which Coun Cott proposed did not relate to a strategic or policy issue and so was not acceptable under standing orders.
“The decision by the council to award the construction contracts to Orca LGS Solutions Ltd for the Aln Crescent and Broomy Hill sites was not made at the cabinet meeting on November 18, 2019. That decision had already been made by the then deputy leader on 25 October 25, 2019. The decision was recorded on the council’s delegated decision system and notified to all councillors at that time.
“At its meeting on November 18, 2019, cabinet received an update report on the delivery of the council’s housing plan. The report referred to a number of developments, including those at the Aln Crescent and Broomy Hill sites, and how they were being delivered. However, Coun Kemp and other cabinet members made no decision about the award of contracts for these particular sites at that meeting because that decision had already been made.
“Therefore, Coun Kemp was not required by the code of conduct for members to declare any interest in the matter at cabinet in November 2019. All council processes have been followed.”
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