SHOULD SEFTON HAVE STUCK WITH KIER ?

mlec

No, NOT the prime minister, but the construction firm, Kier, originally scheduled back in 2022 to complete Southport’s new convention centre (MLEC) for Sefton Council. 

 The Council broke off negotiations with Kier Construction when they as Sefton's preferred partner let the Council know that the project could not be completed for £72M funds made available by the Council for the project. The Council then   spent further time in negotiation with Graham Construction who eventually delivered the same message in spades and were then replaced by a third contractor.

 The Council now is on course three years on to agree a deal with a third major contractor, Vinci, but this time at a price of £106M.

  The key question according to Lib Dem opposition leader on Sefton, Cllr John Pugh, is whether a lack of realism by the Council has cost council taxpayers who now will have to find £54 million to get the project finished. 

"The whole project has been shrouded in unnecessary secrecy from the start, “ says Cllr Pugh , “ but the truth is that it was never a £72M project and the council did not build enough contingency costs into their plans, but in hyper-optimistic mode, thought they could find a builder who could do the whole thing for the money available. While they spent years looking hopelessly for one, inflation racked up. 

The moot question is whether biting the bullet and sticking with Kier in 2024 would have cost less than £106M and enabled us to actually have a Conference Centre not a building site this year. 

The Council can’t of course go back because it demolished the previous Conference Centre and Theatre without knowing whether it could afford to replace it. Southport has been without a Theatre and Conference complex for too long, hurting the town’s economy.” 

Funding for the replacement Conference Centre was originally to be backed by a government grant (32M) , and around £20M each from the City Region and Sefton. Now it looks like the extra £33-£34M has to be found from Sefton taxpayers. £54M will be borrowed in total to be paid back through council tax. This adds to and exceeds the £32M borrowing to buy the Bootle New Strand.

“ It’s not just that secrecy and a dislike of scrutiny is a bad thing itself ”, says the Lib Dem leader. “ The avoidance of transparency and constructive challenge is starting to cost us all serious money.”