Middlesbrough council’s executive approved plans to enter into formal talks with Norse over the transfer of its in-house waste service as well as operations such as highways maintenance, pest control and bereavement services to a partnership between Norse and the council at a meeting on January 20.
Councillors had also considered whether the local authority should look to the private sector as it seeks to cut £5.2 million from its services budget over the next three financial years.
But, the Middlesbrough executive instead opted for a partnership with an ‘established local authority owned joint venture company’ – with Norse having been identified as a suitable candidate due to its ‘proven track record in expanding commercial opportunities’.
By seeking to partner with a local authority owned contractor the council is hoping to cut down on the time and financial cost involved in procuring contracts to the private sector.
Joint venture
It had been anticipated that should an agreement be reached with Norse over the formation of a joint venture with the council, the switch could be completed by May 2015.
However, the proposal has now been called in for review, after councillors claimed that it was being ‘rushed through’ by the local authority’s leadership.
In a submission to the council’s monitoring officer, one councillor wrote: “This is a multi-million pound contract per year, yet this council is seeking to have it rushed through in just 13 weeks. Whilst we keep an open mind at this stage as to whether or not we feel this is right for Middlesbrough it has to be said that ‘rushing’ this through without proper and thorough consideration is a mistake, one that the town could repent if it goes wrong.
“Other Norse operations, such as Medway Norse, took nine months for the initial investigations to consider if it was suitable for them, why is it that Middlesbrough are seeking to rush this important piece of work through?”
Norse
Norse Commercial Services is a wholly-owned joint venture company set up by Norfolk county council and operates in partnership with around 20 local authorities across England. The firm first began discussions with Middlesbrough in late 2012.
Under the proposals, more than 1,000 management and front-line staff would transfer to a new joint venture between Norse and the council under TUPE legislation.
Commenting on the proposals, councillor Tracy Harvey, Middlesbrough’s executive member for environment, said: “We are facing yet more severe cuts to our budgets over the next three years and beyond, so it is only right that we explore our strategic approach to the way we deliver key services to ensure we make the most of the resources at our disposal.
“The proposed joint venture would effectively remain a public sector organisation, with the emphasis firmly on partnership working rather than contracting or outsourcing.
“This approach has the potential to protect and even enhance future service provision in these important service areas.”
Councillors will review the decision passed by the executive at the meeting next week (February 10).
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