After the publication of the Mathew Street report, David Bartlett looks at where Liverpool now stands in its preparations for 2008

LIVERPOOL’S reign as European Capital of Culture starts in just 40 days, but in the wake of the Mathew Street report, how healthy is the relationship between senior management in the council and the Culture Company?

The publication of the report was supposed to draw a line under the fiasco, enabling the city to move forward with renewed optimism.

Most plans are now in place, an impressive list of events has been unveiled and excitement is growing.

But while many feel the city has moved in the right direction, the publication of the report has served to highlight a continuing schism between the upper echelons of the council and Cul-ture Company, both of whom will be crucial in delivering the flagship year.

Last night the fall-out was showing little signs of abating as regeneration leader Mike Storey implied Culture Company chief executive Jason Harborow should take responsibility for the affair.

It followed an attack by council leader Warren Bradley on Mr Harborow’s leadership on Friday.

Mr Harborow is in his eighth week of sick leave and is due to return in around two weeks.

He was cleared in the report, but both Cllr Bradley and Cllr Storey – the two most powerful men in the current administra-tion – have suggested they hold him responsible for the last minute cancellation of the August Bank Holiday festival.

In his absence the North West Development Agency has drafted in its top figures to ensure smooth running and television supremo Phil Redmond is heading the cultural side of things.

The NWDA’s chairman Bryan Gray now chairs the slimmed down Culture Company board while Bernice Law, also from the NWDA, is in charge of operations at the Culture Company.

Last night a Culture Company source allied to Mr Harborow said the embattled chief executive was disappointed by the sustained attacks on him.

“Jason is determined to come back to get on with the job,” said the source.

The report mainly blamed former events manager Lee Forde and ex-operations manager Chris Green for the last minute cancellation.

A breakdown in communication between the pair, after Cllrs Storey and Bradley had £100,000 cut from the festival’s budget, led to the cancellation said the report.

But some are worried the break-down in the relationship between Mr Harborow and Cllrs Storey and Bradley could lead to similar embarrassments next year.

“It leaves us with a real worry that the major figures are clearly at odds and loggerheads with each other,” said Labour leader Joe Anderson.

“I would not be surprised if Mr Harborow now decides after these statements and the fact he has been exonerated that he has got clear grounds for constructive dismissal.”

That presents the potential of a damaging legal scuffle at the height of Culture year should Mr Harborow’s lawyers feel he has a claim for constructive dismissal.

Town Hall observers can’t believe Liverpool can be involved in a second public squabble between top people within the space of just a few years.

In 2005 Cllr Storey, then council leader, and then chief executive Sir David Henshaw, were at the centre of another damaging rift.

One council source said last night: “A lot is riding on next May’s council elections, when the Lib-Dems could see their majority fall to one or two. It is not imposs-ible for us to have a hung council, and if that happens people will be demanding political scalps.

“What is needed is for all sides in this to bury the hatchet and get on with the job, there is too much at stake for Liverpool to allow this infighting to continue.”

davidbartlett