Members of the council’s executive committee last week voted to cease work on exploring the joint venture after nearly three years of speculation– on the grounds that it would not ‘fully deliver’ an arrangement that meets the unitary authority’s needs.
Set up by Norfolk county council, Norse is a wholly-owned joint company and operates in partnership with around 20 local authorities across England.
The decision comes after the committee initially approved plans to enter formal talks with Norse over the transfer of its waste collection service – as well as operations including highways maintenance, pest control and bereavement services – at a meeting in January 2015.
At present, Middlesbrough’s kerbside refuse and recycling collections are handled by private contractor Biffa, which are picked up weekly and fortnightly respectively.
The arrangement had been anticipated to be completed by May, however councillors called for a review of the decision in February claiming it had been ‘rushed through’ (see letsrecycle.com story).
Incompatible
A report presented to the committee on June 16 by executive member for the environment councillor Tracy Harvey said that the joint venture is ‘no longer compatible’, and would see Norse hold the majority of shares in the new company and a majority on all of the decision making bodies if green lit.
It adds that Norse relies on a ‘partnership approach’ which would not give Middlesbrough council the ‘certainty it would require’ on a contractual commitment to creating new jobs and funds to reinvest in council services.
The executive committee report concludes: “It is unlikely that a mutually satisfactory agreement can be reached with Norse in relation to a joint venture in Middlesbrough then continuing with the business case work would be a poor use of Council resources and prolong uncertainty for the employees potentially affected by this proposal. Such an approach would also leave the Council open to accusations of negotiating in bad faith with the potential partner.”
Costs
By seeking to partner with Norse, the council had hoped to cut down on time and financial cost involved in private sector procurements. More than 1,000 management and frontline staff were to be transferred to the new venture between Norse and the council under TUPE legislation.
But the outcome will now see Middlesbrough council return to the drawing board in order to meet its ‘challenging’ saving targets, with £3.6 million required across its environment, property and commercial services over the next three years.
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