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Firm told it can pass on congestion charge bills
Leaseholders will have to fork out again despite row over profits
A LUCRATIVE £8 million contract has been awarded to the building firm which earlier this year was accused of making a profit from the congestion charge by passing on inflated bills to Islington leaseholders.
J Murphy and Sons has won a 61-week Homes for Islington (HfI) contract to install 322 kitchens and 70 bathrooms to bring properties up to the government’s Decent Homes Standard.
The firm will also carry out electrical work, external decoration and replace windows, door-entry systems and roofs.
Under the new contract, Murphy will continue to include in leaseholders’ bills congestion charges incurred by its vehicles – plus an administrative fee on top. This arrangement has brought complaints from leaseholders that the firm is making a profit out of the congestion charge.
John Phillips, HfI’s director of property services, has defended the decision to allow the firm to continue to pass on the charges.
He said: “Constructors working on sites within the congestion zone will incur added expense bringing materials and equipment to site. We recognise this and our contract allows for constructors to claim for the congestion charges for legitimate vehicles.
“We have recently looked into this issue in some detail and believe it is fair to allow this to continue. We are not working to change or amend our contracts with our contractors.”
In March, an invoice leaked to the Tribune showed Murphy was charging a total of £10,000 more than its congestion charge costs.
The invoice showed that, over a 61-week contract, the firm was charging a total of £19,520 for eight staff cars to travel to work every day.
A spokeswoman for the firm said the calculations made by leaseholders on the St Luke’s estate in Finsbury of the profit from the congestion charges were “misleading”.
But Brian Potter, chairman of Islington Leaseholders’ Forum, claimed this week he was given assurances that all contractors would be warned not to charge or make a profit from the congestion charge.
Mr Potter said: “I am extremely disappointed to hear that Murphy can continue billing Islington leaseholders and making a profit from this.”
He added: “This issue is not just about expenses. It is about the impact on the environment.
“Ken Livingstone says all transport has to be as green as possible, so continuing to use large, non-green vehicles, and to charge for it, is immoral.
“If Islington really meant to go green they would insist that all their contractors only use green vehicles and would save on the congestion charge.”
He pointed out that Kier, Islington’s maintenance contractors, did this. “Why can’t everyone else?” he asked. |
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