Furniture project a step nearer...

[perseus]

http://www.hartlepoolmail.co.uk/news/local/furniture-scheme-to-fight-debt-1-4702382

The 'genius' furniture project that was tagged onto the ping pong budget seems a step nearer. Basically tax payers money going on free dishwashers for people on benefits.

The tender process to find a host for the project starts in September.

What's the betting to 50k will go to an organisation based at West View and/or Manor? or perhaps a 'new' charity started by 'someone'? I don't suppose there's any chance it'll go to the citizens advice to look after, or to the co-op to run along side existing schemes?

I really hope this is done properly so that it actually ends up doing what its supposed to do. (Not that I agree with it, but if it's happening, it should be done right). What are the chances of which ever organisation gets hold of the money buying in washing machines for £200 a pop, then 'selling' them on for £400 to be paid back at £2 a week for 4 years or some such lunacy. That way after 4 years there'll be £100,000 knocking around.

Schemes like this must be so easy to abuse. For example, if i was dodgy (which i'm no,t but if i was) i'd bid for the contract at a stupidly low tender. If you then buy 125 fridges at £200 a go, you've spent £25,000 of your £50,000.

A dodgy invoice stating that the fridges were in fact £400 a go a you have receipts for £50,000 (all the money has 'gone', but £25k has gone 'missing'). IF by some miracle the 125 households who get a fridge pay back the £400 + say £100 in interest each (on the drip weekly over a few years) you've got yourself £62,500 back (plus the £25,000 that you didn't spend in the first place). So thats maybe the thick end of £100,000 that an organisation could click for for essentially giving away, and doing the admin for, £25,000 worth of fridges. . . . simples.

[Julie noted]

mk 1; You could be right in your assumptions.
However, I would hazard a guess that they will be 'sold on' at a loss (or at the most 'cost' price).     The famous 'loss leader'. 
In this scenario, to curry favour with the residents of the E, F, G, H, I, J, K, L, M, N, blocks, Owton Manor. 

I drove past the Owton Manor Residents office today and saw a decrepit old mini bus parked on the front.
If that is theirs, can anyone remember how much it was on the books as costing? It appeared to have a scrap value of circa £100. 

[Stig of the Seaton Dump]

Such schemes are so naive.

I remember Seaton Lane council houses being fitted out with new kitchens.

They were being sold off at one end before the other end had theirs fitted allegedly.

I hope my cynicism is proved wrong.

[The Great Dictator]

Its only available to the low life that can't afford a fridge but can vote Labour.

[for fawkes sake]

The £50,000 is to fund an 'administrator' over two years; it's not to fund any actual purchases. People will still have to get loans from other sources like the Credit Union which they could have done anyway. In my view, this is all a totally unnecessary project which simply duplicates what is already there. I fully expect the money to find its way to Owton Manor as the end result of another fake 'tendering' process. 

[The Great Dictator]

Why can't they go to Currys like any other normal person, why do they have to be wet nursed ?

[steveL]

The suppposed justification for this is to stop people who can't get credit through the usual route going instead to the likes of Brighthouse and their extortionate interest rates and 'extended warranties'. That sounds fair enough to me until you realise that there already are plenty of alternatives - the Credit Union being the obvious one. The Credit Union was set up with the help of HBC but I gather Mad Marge fell out with those running it because they didn't want her on the board.

The Housing Associations run similar schemes, as does the Coop. The Coop scheme is an interesting one in that people can use the Coop website to choose what they want and finance it through low interest loans from Credit Unions. There really is no need to re-invent the wheel here and certainly no need to spend £50,000 administering a new scheme. I too am expecting this money to head towards the Manor.

[Julie noted]

Nice try perseus. In a perfect world (or even a semi perfect world) that would happen. What this malignant lot will do is word the contract to suit the manor cronies.
They would make sure PHF didn't even get a sniff.

[Julie noted]

I reckon you're right, perseus. As soon as they get in they pay homage to the chairman, have 1/2 hour reading pravda, daily mirror and (for those that can read words of multi syllables) the daily telegraph.
Then it's on to High Tax Hartlepool.
Simples.

[brassed off monkey]

I wouldn`t bet against the£50,000 ending up in the pocket of a Labour / Manor acolyte, this scheme is just one more example, if one were needed, that the "Voluntary Sector" is wide open to abuse.

The sad thing is that this kind of activity gives a bad name to the many genuine Voluntary Organisations & the people who give freely of their time & energy to help others.

The mayor & his cabinet should veto this particularly odious proposal, but i wont hold my breath.

[steveL]

I think the local Credit Union has been something of a success story and I'm baffled as to why it would not be the focus of any additional efforts towards financial inclusion. I walked passed it the other day and noticed a poster in the window inviting people to 'Ask Us About Our Electrical Goods Scheme'. There is obvious duplication going on here and something of a personal vendetta by the looks of it.

[steveL]

This subject is up for Cabinet discussion this Monday coming - 9:30am in the Council Chamber

[rabbit]

As is stated here several times, the Credit Union is a source for low rate loans and a link to the purchase of "White Goods", via the Coop. The prices for "White Goods" provided by the Coop are stated to be competitive with those available from other outlets. However they will not be given away. The Credit Union does not appear to provide direct help either for the supply of cut price/ free furniture.

Here, the route for those in need of furniture (and appliances) is provided by the Owton Fens Community Association who took over the role from the Settlement Furniture Services, who had to close in Dec 2009 as they had run out of cash!. The new service was opened by our MP, Ian Wright in 2011 as the Mail shows:

http://www.hartlepoolmail.co.uk/community/service_will_be_fully_furnished_1_3562769

Perhaps the OFCA is finding a similar difficulty in the present climate of running a similar operation without the granting of some financial input.

Perhaps 50,000 pounds would help a little?

[marky]

Not sure if I follow that post Rabbit. The new scheme is set to provide new furniture/white goods, not second hand and the route is through finance provided by third party organisations like the credit union. The point being that anyone can already approach the credit union for a low cost loan which enables people to shop around for the best deal. The credit union already removes the need for people to resort to the likes of Brighthouse - provided it has the necessary finance.
The problem for the credit union is that it can only lend out at the rate of the repayments coming in as it doesn't have enough 'float' to meet the current demand. If the £50,000 was given to the credit union (as a loan and not a grant to cover administration which is the current proposal) then that £50,000 would allow the credit union to expand its service to more people without more money being wasted on additional administartion.

[rabbit]

Marky: The Mail article does not state that the items offered under the scheme would be new.

Perseus: I am not implying that the OMCA would be the best route for the new arrangement.

In fact I am suggesting that like their predecessors, perhaps cash flow is a problem. and 50.000 pounds would help them out (whether or not I agree with such a funding!)

Also if the furniture/white goods items in the proposed Furniture Project are used or recycled then I cannot understand the Council re-inventing the wheel.