A matter of trust

Deborah McGurran The Politics Show East

Not all is well, down on Luton's Marsh Farm Estate. We investigate the background to a number of failing projects, resignations and accusations of poor management in the estate's Community Development Trust ...

The Marsh Farm estate in Luton was built in the 1960s and probably gets its name from local marshland which was once divided into farms.

Changing that name has been one of the ideas linked to its regeneration since it received New Deal for Communities (NDC) funding in 2001.

It gets me so angry because people come down here as consultants and they're earning in one year, more than these people in Marsh Farm would ever earn in a lifetime Jaqueline Blackett

The estate has been perceived as a trouble spot since riots in 1992 and 1995 gave the area a bad name.

The government earmarked £48m for the project and gave Luton Borough Council the job of overseeing the financial management.

Failures

The Marsh Farm Community Development Trust was set up to create projects to regenerate the estate, so far, £27m has been spent.

In 2003, a report, commissioned by Luton Council, highlighted financial irregularities.

The report published concerns over large sums of money that were not properly accounted for.

Our investigations show that there has been a catalogue of problems with the trust, 41 directors having resigned in five years.

Many of its projects have failed.

NDC funding addresses deprivation Key indices include improve job prospects reduce crime address educational under-achievement improve health improve housing and the environment

Two million pounds has been spent with little to show for it, and £3m has been spent on consultants' fees.

Critical voice

Former director, Jaqueline Blackett said: "As a director, I cannot recall, in recent years, seeing financial statements.

"The board of directors are responsible for the running of the trust and if anything goes wrong, it falls back on them, but you know, they are powerless.

"It gets me so angry because people come down here as consultants and they're earning in one year, more than these people in Marsh Farm would ever earn in a lifetime and that cannot be right."

Trust responds

With hindsight, you can always spend money better and you can always make better judgements Colette McKeaveney

Colette McKeaveney, a current trust member, replied on behalf of the trust, saying: "The question over whether the board's been told how much consultants are paid has not come up because there's not been concern about it, in the sense that people we have got here have come to do a particular job.

"If they are here to do a job and it is the only way that we can employ them, then I don't think that there's a lot of choice in that particular matter. You have to pay them what they cost.

"With hindsight, you can always spend money better and you can always make better judgements. As time has gone on, we have got better at making good judgements on these projects.

The National Audit Office reviews trust performance They examine how effectively have the community been engaged? how well has it developed robust operating processes, such as financial auditing and recording of its own successes and failures has it built strong partnerships with local and national government, the police and the health service? are its projects sustainable and delivering the intended benefits?

"Each project has to go through a rigorous appraisal process that is more robust than it was in the early days. Projects in the early days wouldn't go through now."

We will be asking whether this it a good use of public finances and has it really benefited the people for whom it was originally intended.

Let us know on the e-mail form below what your thoughts are...

Join the Politics Show team on Sunday 15 July 2007 at 12:00 BST on BBC One.

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The Politics Show finishes this weekend and is off air for the summer. We will return on Sunday 16 September 2007, after we have extracted the sand from between our toes... so enjoy your summer too...

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