TMP chief: We're leaner and fitter for 2008

Jan 4 2008 by David Bartlett, Liverpool Daily Post

Serious financial concerns have emerged at Merseyside’s key investment and tourism body, as David Bartlett reports.

ONE of the first things Lorraine Rogers did when she took the helm as chief executive of The Mersey Partnership was to start a root-and-branch review of its operations.

Last night, she said it would have been surprising if nothing had emerged, but it is unlikely she expected to find the problems she did at Princes Dock on taking over last August.

TMP, the key tourism and investment body for Merseyside, works very closely with North West Development Agency, which provides 60% of its funding.

An internal NWDA financial document obtained by the Daily Post today reveals how TMP has been forced to call the Agency for help and to “implement improved financial governance and controls”.

The document states: “TMP are close to trading insolvently, as they have no access to overdraft facilities or other lines of credit.

“In addition, GONW (Government Office North West) have now concluded . . . that TMP are required to pay £473,000 of ERDF.

“It is essential that TMP look to reducing their over-head base as this currently accounts for approximately 45% of all their income.

“The priority at the mom-ent is to bring all their finan-cial records up to date, and to put in place financial management information systems which will enable them to manage their busi-ness going forward.”

According to the latest published accounts for TMP, it owed at least £2.5m to creditors at the start of the 2007 financial year.

Ms Rogers last night said the backlog was a six-figure sum and pointed out that a lot had changed since the NWDA document was put together.

In November, Roy Morris stood down as chairman of the board after seven years in the job. At the time, the reason for his resignation was to comply with the agency's constitution which prohibits the chairman serving more than two three-year terms of office. This explanation was repeated by Ms Rogers last night.

But a leaked email from board member Maureen Williams to NWDA chief executive Steve Broomhead, in October, reveals she demanded his resignation in response to the financial “mess”.

The announcement of Mr Morris’s departure followed the resignation of TMP's finance director, Mrs Pol Clark, earlier that month.

No explanation for her depart-ure was given at the time, though last night Ms Rogers said Mrs Clark had left following a “short period of illness”.

In her email, Professor Williams suggests staff from the NWDA be sent into TMP to see if the financial director “can be brought up to speed or will need to be strengthened in some way”.

The Daily Post can also today reveal that Geoffrey Piper, deputy chairman of TMP board and chairman of its audit and cor-porate affairs committee, has also resigned.

This is something Prof Williams also demanded in her email to Mr Broomhead.

Ms Rogers said he had been on the board since 1993, and had felt “it right to make way for some new faces”.

“During the course of the review in September/October, it was apparent to me there was effectively a backlog in finance – both in invoices and claims,” she added.