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Executive To Consider Revised Joint Venture Proposal

Byadmin

Mar 12, 2015 #Middlesbrough

UPDATED proposals for the future delivery of a range of key services are to be considered by Middlesbrough Council’s Executive next week.

 

Approval to examine the merits of creating a Joint Venture Company (JVC) to manage delivery of the 27 services that currently comprise the Environment, Property and Commercial Services Department was first put to Executive in January.

 

Central to the proposed partnership is a commitment to creating new jobs and apprenticeships alongside the development of external business and funding streams.

 

An initial appraisal involving managers, Trade Unions and Councillors looked at a range of service delivery models and determined a partnership arrangement with established local authority-owned joint venture company Norse Commercial Services was most likely to be the best model for delivery of the services in question in the future.

 

Norse is wholly owned by Norfolk County Council and has existing joint venture partnerships with more than 20 local authorities including Barnsley, Devon and Medway.

 

The services – responsible for the maintenance and enhancement of public buildings, streets, parks and open spaces, as well as a number of commercially-focused services – must achieve savings of more than £3.6 million over the next three financial years.

 

The first stage of the exercise to consider the benefits of such an arrangement has concluded that nine services – including Bus Station management, CCTV, waste disposal contract management and commercial property management and with a current annual budget of just under £14 million – should not be included in the JVC.

 

Further work will now be undertaken in relation to the 18 remaining services to further understand the potential benefits that a joint venture for some, or all, of these services would deliver.

 

The services in question include building maintenance, school catering, refuse, recycling and green waste collection, parks management and highways maintenance – which have annual budgets totalling more than £21 million.

 

The overarching aim of a joint venture is to deliver significant financial benefits as the Council adapts to meet the severe budgetary pressures that lie ahead.

 

Under the proposed model, staff terms and conditions would be protected and agreements with Trade Unions recognised.

 

The JVC – managed by a Board of seven Directors including three Middlesbrough Council representatives – would be co-owned by Middlesbrough Council (20%) and Norse (80%), with the Council retaining 50% of any operating profit.

 

Councillor Tracy Harvey, Executive Member for Environment, said: “The budgetary pressures we face are immense, and require a completely new approach to the way we deliver key services to ensure we make the most of the resources available to us.

 

“The aim of the JVC is to combine the ethos of public service with commercial flair, in line with the Council’s long-term vision and ensuring value for money for local Council Tax payers.

 

“The emphasis will be on partnership working, with a commitment to grow external business and create new jobs, apprenticeships and funding streams.”

 

Following the development of detailed business cases, the Executive will decide if the JVC model should be adopted.

 

  • The updated proposals will be considered at the next meeting of the Council’s Executive on Tuesday, March 17.

By admin