Cornwall Council presses ahead with private sector plans
Cornwall Council is pushing ahead with controversial plans to set up a private sector partnership that would see them bidding for contracts outside of the county.
The authority says the "groundbreaking" project could help to retain and create up to 400 jobs in Cornwall over the next seven years at the same time as saving almost £2.5 million of council taxpayers' money.
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Alec Robertson
But opposition members claim local residents will lose out to "pie in the sky" contract bidding elsewhere in the country with a private sector company who will "cream off the profits".
Plans to set up an organisation to share and outsource some council services were initially considered last November.
These services could include payroll, invoice processing, libraries, one-stop shops, council tax billing and collection and assessments for housing, care and free school meals.
The council now hopes to enter into a procurement process – potentially with local health partners – to select a strategic partner, with a view to then establishing a joint venture trading company.
If approved, the move could eventually mean hundreds of council staff transferring into the employment of the new organisation.
The council's cabinet is being recommended to support the option when it is formally considered on Wednesday.
Council leader Alec Robertson said: "This is a genuinely ground breaking proposal which would see the council working with partners to improve services and deliver greater value for money for people in Cornwall.
"Any suggestion that this is selling off council services is totally untrue. By creating a new 'shared services' company in Cornwall, we would help protect both existing public sector employment and could create hundreds of new permanent, well-paid jobs.
"The trading joint venture model would enable us to retain control of these services for people in Cornwall at the same time as ensuring that any new jobs are based here."
But Alex Folkes, deputy leader of the Liberal Democrat group, said: "This plan is full of 'coulds' and 'maybes'.
"What the Conservative leader of the council is not saying is that it will cost at least half a million pounds to set up the new company and there is no guarantee that it will win any contracts at all.
"Cornwall Council should be concentrating on delivering the best possible service to the people of Cornwall at an affordable cost, not pie in the sky bids to win contracts in Lambeth, Leeds or Lossiemouth.
"Many local authorities are already doing work for their neighbours but without a private sector partner which will cream off the profits.
"Cornwall's so-called unique approach appears to be based on helping big consultancy firms."
The estimated initial cost of procurement is £375,000.








12 Comments
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by Doitdreckley
Sunday, July 10 2011, 1:24PM
“While Cornwall could be quite successful at this there is an ironic danger that other Councils will lose jobs that are externalised down here.”
by TheodoreV
Sunday, July 10 2011, 1:07PM
“The "Serco-effect"?”
by SystemThinker
Sunday, July 10 2011, 11:59AM
“ALL of the evidence to support shared services comes from within the shared services industry (IT consultancies, consultancies selling shared service advice and legal firms setting-up the contracts).
All of the evidence is based upon estimates for savings (with projections to make the profits sounds big). The estimated savings are never met and the costs always increase.
South West One shared services were predicted to save £176 million over 7 years. In reality Southwest One has recorded a pre-tax loss over its three financial years, with the last reported at £16.5m. It is claimed t have saved £3.3 million in cashable savings, but even these are questionable. The number of errors within the services are significant, with duplicate payments sitting at £772,000 and a struggle to manage £12.9m in outstanding debts.
This week Western Australia followed Queensland in ending its shared services. It was claimed that it would save $58 million a year and instead cost $444 million dollars (no savings). It is estimated that it will cost taxpayers between $1 - $2 billion dollars to rectify.
In Queesland the shared services were plagued with problems. Tens of thousands of employees were under or over-paid. In one case $100,000 dollars. It was ended last year.
The last shared services program in South Australia is under severe threat. It has a very high turnover of staff. Perhaps they can read the writing on the wall.
The theory behind shared services is very flawed. There can be small savings from the sale of buildings, but these are small and are offset by damage caused to service quality.
It often requires standardization of services, or further automation. This makes services dumb and inflexible, unable to respond to the human beings demands for help.
Costs will go up and the taxpayer will be left holding the can.
To read further please see
http://tinyurl.com/4xdufwj”
by diogenes23
Sunday, July 10 2011, 9:19AM
“@ GIRLHELSTON
If Robertson's own pub business was such a success why did he leave it in order to take a job as a Bar Steward in a private drinking club that you have described as 'a complete loss making white elephant'?
And if his tenure there was such a success why did he leave?
Robertson has a wafer thin majority within the Conservative minority clique and narrowly avoided being booted out by his fellow Conservatives.
Judging by his behaviour - particularly his deceit over the St Dennis incinerator - he represents no-one but himself, his unelected 'cabinet' of cronies and his friends and fellow Freemasons in business.
The man is an overpaid, anti-democratic, incompetent disgrace, and Cornwall would benefit from his removal from the tax payer funded gravy train.”
by homerjay
Saturday, July 09 2011, 11:17PM
“I would not trust this council and the alleged 'representatives ' further than I could throw them. I thought Walley, Vincent and co. had plumbed new lows with the Unitary, incinerator contract ETC.!!! (you all know what I'm talking about!) But this council will work arm in arm with big business ignoring the views of those of us stupid enough to elect them. The Unitary council is nothing more than the facilitators, the councillors their apologists. The autocratic leader and behind closed doors decission making (I presume after a a hob *** and cosy chat with Kev) is a joke, but the joke is on us all.”
by HoberMallow
Saturday, July 09 2011, 2:16PM
“@ Helston Girl
Your outline of the Lib Dems' intentions in creating Cornwall Council is on the mark, and I share your hope that this party of opportunists are obliterated at the next election.
Cornwall Council was conceived as a gravy train for life for the local political class and that's exactly what it is. Doubtless the Liberals were upset when they lost control and Alec Roberston got the top job - a thousand a week tax free of tax payers money - isn't bad by local standards.
However, Robertson has consistently shown that he is not up to the job. His outright *deceit* over the St Dennis incinerator was just the most recent gaffe. He has talked a lot about 'openness', 'transparency', 'accountability' (and all the other buzzwords) yet in the case of the incinerator he *lied* - there is no other word for it - about his intentions. He publicly supported local residents whilst lobbying secretly against their interests. His duplicitous actions are beneath contempt and when he was exposed as a hypocrite, if he had a shred of honour he would have resigned. He was once an officer (in the armed forces) but, by his own actions, he has shown that - officer or not - he is far less than a gentleman.”
by GIRLHELSTON
Saturday, July 09 2011, 12:36PM
“As a Councillor who ran a very successful and profitable pub business in the real world, and then transformed a club in Helston from a complete loss making white elephant into a thriving and profitable club that goes from strength to strength, then this is absolutely the right person to inject some real world business acumen into the monolith that the Lib dems created called Cornwall Council.
Not one single Lib Dem asked the people of Cornwall if they actually wanted a unitary authority, which by the way the majority of people did not. The Lib Dems saw it as a way to make sure they could run Cornwall for ever, and guess what, the people did not agree.
Good on you, press ahead, create jobs and save us ratepayers some money.
The Conservatives should be proud of a leader who leads.
Ignore the Lib Dem whiners, they will be extinct at the next election.”
by diogenes23
Saturday, July 09 2011, 10:45AM
“Given Councillor Robertson's history of failure in business (failed pub landlord) and his more recent history of deceit over the St Dennis incinerator where he publicly opposed the scheme whilst secretly lobbying for it to be forced through against the democratically expressed wishes of the electorate, it is impossible to know what is *really* proposed.
Cornwall Council has an appalling record of mismanagement in so many areas that it would be near impossible to list them all. Robertson's history of failure and deceit speaks for itself. How much longer can Cornish Conservatives bury their heads in the sand and pretend that this embarrassing old man is anything but a laughing stock and an electoral liability?”
by HoberMallow
Friday, July 08 2011, 4:19PM
“'By creating a new 'shared services' company in Cornwall, we would help protect both existing public sector employment and could create hundreds of new permanent, well-paid jobs.'
There will also be free Unicorn manure to spread on your garden. This will be gift wrapped and personally delivered by the Tooth Fairy.”
by cheekyman_jr
Friday, July 08 2011, 11:57AM
“This is just an excuse for Cornwall Council to justify what undoubtably will be plans to import more troubled families, drug addicts and convicted criminals into Cornwall as part of what will be a contract between CC and whatever local authority/NHS trust ...
We can't trust Robertson, Foulkes or any of those who stand in the council”