City councillors postpone call on privatisation plans
City chiefs have delayed a decision on whether to privatise a tranche of council jobs including janitors, cleaners and caterers – weeks after councillors put back a decision on whether to contract out bin collections.
Two consortiums are in the running to take over the “integrated facilities management” (IFM) contract at the council, which also includes building maintenance and design, porters and security services.
But the city council has confirmed that officials want more time to finalise details of the in-house alternative to privatisation before asking councillors to make a decision. That means that the decision, which had been due to be made next week, will now not be made until December 22.
It comes after councillors agreed to a four-week delay to a decision on the separate “environmental services” contract, including refuse collectors and street cleaners, in order to look closely at the in-house alternative to outsourcing these services to private firm Enterprise.
Trade union leaders said the delay to the IFM contract was a sign that officials were now taking seriously the option of keeping services within the council.
Peter Hunter, regional organiser for the Unison trade union, which has campaigned against the privatisation plan under the banner “Our City’s Not For Sale”, said: “I think now there is a realisation from officials that the chances of privatisation are diminishing.
“They never expected to use the in-house option but it is now becoming clear that is the most likely choice.
“They realise they will have to use some, if not all, of the in-house options so they can’t afford for them to fail.”
Three tranches of services are part of the “alternative business models” programme, where private firms were invited to take part in a project looking at providing services in a different way and delivering savings for the public.
The IFM contract covers £33.2 million of services, compared to £37.6m of services within environmental services.
A third contract, for “corporate and transactional services” including payroll, HR and revenue and benefits, is also due to come before councillors at a meeting on December 22.
For the IFM contract, a joint bid by outsourcing company Shanks and former tram contractor Carillion will compete with a separate joint bid by outsourcing firm Mitie and consultancy Atkins, while officials will also demonstrate what savings are achievable if the services are kept in-house.
Cllr Andrew Burns, leader of the Labour group on the council, said: “There has been a hugely disproportionate amount of money spent on private sector bids and if this is a sign that more time and money is being spent on the in-house options then I welcome that.”
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Comments
There are 18 comments to this article
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Mabozza Ritchie
Tuesday, November 15, 2011 at 11:51 PMRugal You keep banging on about the cleansing Dept and th poor service, but no reference to the fact that the MORI poll that was carried out and has been locked away in a cabinet somewhere in the city chambers, stated that the public were very satisfied with the Refuse collection service...or that at a meeting held last week in Midlothian house.....with a capacity of 100 people...Messrs Turley and Unsworth were given a torrid time by the majority of the public members that attended....because the council tax payers of Edinburgh don't want their money going to pay the shareholders of private companies like Enterprise...a point that the SNP and lib dem councillors just seem to have realised.
Templar75
Tuesday, November 15, 2011 at 08:55 PMWhy don't we privatize councilors instead then the professional would need to do hisher job effectively to stay in the job, non performance would see them sacked without a pension or lump sum.
leithforme
Tuesday, November 15, 2011 at 08:18 PMfirstly I agree completely, nothing should be done until after the election, when the current administration will be rightly kicked out of office forever - they should not be allowed to force through massive long term changes that will affect the council and Edinburgh for years to come - no doubt many of them have already lined up jobs with said companies to offset their imminent unemploymentpending gaol terms for corruption etc; but the crux of the matter is about what is wrong with these services – the management is the problem 100%; if the ‘council’ want to sack all the current management, and bring in new, for lower wages, why are ‘we’, the unions, and the actual staff worried – it’s only the deadwood like Turley that are going, bring it on!
Jams
Tuesday, November 15, 2011 at 06:37 PM#9 - Rugal. I don't disagree with you in principle. I suspect that the whole department could be massively improved by the removal and replacement of about a dozen people (split between both sides). The great "dispute" they had turned into a "who can pee the highest" competition and the real issues got lost in the porcess. However, I think the council are very selective in how they calculate the COST of things (i.e. they lie through their teeth) and I struggle to find any integrity dealings withthe people who elected them. I agree with yuou one the Bin Men - I find them great 90% of the time and as we all have off days, I can forgive them the rest.
The auld lies will nae wash any mair
Tuesday, November 15, 2011 at 04:59 PMI see that Labour are busy on these pages trying to re-write history with their gross untruths again whilst asking us to forget that it was Labour who enthusiastically promoted privatisation all across the UK when they were in government at Westminster and Holyrood. They would also prefer us not to know that it is the preferred position of the SNP to have services provide in-house if they can be proven to be cost effective and efficient which is what is happening in Edinburgh. Plenty evidence of this policy exists across SNP held Councils in Scotland.
NormaB
Tuesday, November 15, 2011 at 04:08 PMIf the Unions think this delay is to improve the in house bids they are sadly mistaken, it’s to give the private consultants more time to do a hatchet job on them. The ABM team are desperate to privatise anything to justify the 4 million pounds they have squandered on this useless two year love affair with the private profiteers. The chief executive’s problem is that the councillors are all running a mile and her privatisation tendencies are rapidly becoming out of fashion in SNP Scotland. Perhaps an English council might be a better bet for cuts hungry suebru and her merry band of direct-nots. Log on to the jobs sites quickly before you get killed in the stampede or the night of the long knives the Libs will demand to look tough to the voters.
JumboLumbo
Tuesday, November 15, 2011 at 03:15 PMI certainly agree that management of CEC, and Scottish LAs across the board could do with a review. There are too many people being paid a lot of money for little return, in my opinion. Perhaps we need a change in the regulations so that all chief officers throughout Scotland are given contracts limited to five years. Then the market place would be tested to see if better people are available. If the incumbents demonstrate their superiority award them another five-year contract, otherwise goodbye.
AULD REEKY
Tuesday, November 15, 2011 at 03:14 PMKnowing fine well that they are going to be kicked out on their axses why at this stage of their Administration should Jenny and her "pet poodle" Stevieboy (with no balls) be deciding on such issues - they have already done more than enough damage to the repution of the City during their time in office - they should stop now !!!! leave the matter to the next Administration to take a serious look at the situation and take the decisions that may be necessary - I certainly would not trust any decisions this pair of Clowncillors or their respective parties would take on this matter!! roll on May 2012 until we are rid of the vermin in this Council and that includes Opposition clowncillors as well !!!!
local lad
Tuesday, November 15, 2011 at 02:03 PMThis is our capital city and it is run by a bunch of self righteous individuals who think they are always right, in May 2012 the people of Edinburgh should look at the calibre of the individual rather than the colour of their rosette, then the new administration should get rid of the dead wood at senior management level, and put in their place individuals who have a commitment to providing quality public series. You do not need to privatise services to be efficient. Edinburgh is becoming the laughing stock of Europe and Alex Salmond wants independence , this is such a good advert.
Rugal
Tuesday, November 15, 2011 at 02:02 PMJams are they contributing at the moment? If the department is effectively being subsidised by the council tax payers doesn't the council have a legal duty to achieve best value for those CT payers?......If the department in question was providing a good service at a reasonable cost I'd be 100% behind them, but they're not and haven't been for years.....Is it the management or some of the workers who are to blame? I'd say it's both, it's looking likely that we'll keep the service in house at least for the next few years, I'd give them one more chance, either the service improves and saves money or they lose the contract and we bring in a private contractor.....I'm not an old school 1980s Tory but we cannot afford to keep departments in house that are not doing their job and losing money, we simply cannot allow the situation to continue just because that's the way it's always been done......The guys I feel sorry for are the guys who pick up my wheelie bins and recycle buckets, hard working, cheerful, helpful and polite, it's the street sweepers who need a rocket up their proverbial...........YOU KNOW SOMETHING EEN Ed...that rant would look so much better with PARAGRAPHS...
Jams
Tuesday, November 15, 2011 at 01:41 PM'6 - Yes Rugal, but in order to pay tax they must generate profit. The realisation of profit is the primary function of any business and if they get it wrong and cannot provide the service fo rthe cost advertised they will go bust. By that time the council staff will be long gone leaving us at the mercy of the private sector including potentially the same company reformed under another name and charging 50% more for delivering the service. ..........I would also point out that council employees pay tax and if they are not employed they claim benefits. Would we rather have them contributing to the coffers or emptying them?
keyser soze
Tuesday, November 15, 2011 at 01:33 PM#5..Xena.... Are you actually saying the council cleansing dept are working in the interests of the customer, i.e. the tax payer. The service provided has been steadily getting worse over the years, especially the street cleansing. In Edinburgh East the latest CIMS results are are the lowest for a few years and getting worse. Enough is enough .
Rugal
Tuesday, November 15, 2011 at 01:08 PM#5 Remember those private companies will pay tax, and quite a lot of tax, also if you have a private pension your retirement might rely on those companies turning over a profit for their shareholders. keyser soze is right, keep the departments that are well run by hard working council employees, the rest can be privatised. We can get rid of them in a few years if they're not up to the job if we keep the cleansing department in house we'll be stuck with the very poor service we've been receiving for years.
Xena - Warrior Princess
Tuesday, November 15, 2011 at 12:57 PMThis should be postponed till the election next year then the public can have their say. Can anyone name a privatised company that has worked for the customer and not the shareholder?
Rugal
Tuesday, November 15, 2011 at 12:47 PMWhy doesn't the council set up another arms length company to run the cleansing department? They've always been highly successful....#2 So yet another reason not to vote for independence then?
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