Vincent Cable MP has written to Charles Clarke, the Education Secretary; Steven Norris, the Chairman of Jarvis; and Gillian Norton, Chief Executive of the Council about the "chaos" created locally by the financial difficulties of Jarvis, which is unable or unwilling to pay sub-contractors to complete work under the Private Finance Initiative contract.

Said Dr Cable: "In particular, Trafalgar Junior School has substantial areas of the school out of action because Jarvis has failed to complete construction work as required under its contract.

"I warned ministers in Parliament five months ago that the Jarvis crisis could have damaging consequences for schools unless the Government and local councils developed a strategy to deal with it. But the problem has been allowed to drift.

"Jarvis is barely keeping afloat and does so by starving its sub-contractors of cash so that they, then, cannot complete work.

"At Trafalgar parts of the school are immobilised because Jarvis cannot get themselves into a position to organise the connecting up of a gas cooker or check a lift. The company is an absolute disgrace and I have suggested to the Council that instead of hoping and praying they should take decisive action by appointing a new contractor to replace Jarvis who will finish the work. And the Secretary of State should take initiative at a national level to resolve the crisis.

"It is not right that children's education should continue to be disrupted. The Government and the Council cannot just allow the situation to drift."

Cllr Geoffrey Samuel, Cabinet Member for Schools, has responded to Dr Cable.

"There is no question of drift," he said. "Personally I have been in contact with the Chairman (Steve Norris) and met the relevant Director at the school last week. Officers and I are doing our best to ensure that the work is completed.

"However we are all aware of the present financial situation of the Company. Therefore we are dealing with the Banks (who are, in the last resort, liable) as well as with Jarvis. We are advised that the prospects of an early solution are reasonable."

Cllr Samuel continued: "I fear that Dr. Cable has no understanding whatsoever of the contractual situation with regard to PFIs and it would have beeen preferable if he had attempted to understand the situation rather than make wild statements which are designed to secure personal publicity rather than help resolve a complex and delicate situation."

Monday, November 22, 2004

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