Cabinet approves BT services venture plan
A controversial project to privatise a number of council services has been approved by the Cornwall Council cabinet. Following contracted negotiations, the council formally issued the invitation to BT to submit a formal tender on March 4, which the phone company has now submitted. BT is set to offer consulting and IT services to councils and businesses in the UK. Under the terms of the contract, BT will deliver guaranteed savings of £17.6m over the ten-year period. The company is also committed to creating 510 new jobs in Cornwall, while protecting its 181 existing jobs in Truro.
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Comments
by IBM_Out
Thursday, March 14 2013, 9:48AM
“http://tinyurl.com/cfokbot
Things run well and efficiently now at Cornwall Council. How can BT guarantee 197 jobs, invest more (Trading investment in bidding for new work – £1.9m plus £7.8m investment in transformation), make savings (£17.4m over 10 years) and run services more efficiently – and make a profit?
The Council says that BT will invest £157.5m in the partnership over 10 years, excluding an additional £16m spent outside Cornwall trying to win bids. The cabinet was told in a report that BT has made an "excellent offer". But is it too good to be true?
It may be that all but one of Cornwall's cabinet councillors, perhaps encouraged by council officers, have been naive. I hope I am proved wrong.
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I do hope that BT didn't employ that old (double glazing) sales trick of guaranteeing a price if deal signed before the end of March?
I struggle to understand that this deal could not wait 8-10 weeks for a new Council and a proper mandate.
Or were the deal proponents in the Council worried that a new Council might not be so keen to privatise valued in-house services?
Beware the Ides of Cornwall in 3-5 years time?
The grass is defintely greener in New Zealand!”