North Somerset Lib Dem News
return to headline pagePress Release - Lib Dems: Privatisation Case is not Proved
PRESS RELEASE
FROM
NORTH SOMERSET COUNCIL LIB DEM GROUP
Release: - Immediate
Contact: Cllr Deborah Yamanaka 01934 862109(Home)
The case for privatisation of North Somerset Council's Internal Support Services has still not been proved.
The Tories again presented their weak case for privatisation to the Finance and Performance scrutiny panel which had been specially convened to re-examine the decision of the Council's ruling Executive.
Before privatising any service all councils must conduct a detailed review to explore how the service could be improved in-house.
Unison representative David Horn told the scrutiny panel that the improved in-house solution in the report was very sketchy, and was only produced when the Unions pointed out that it was a legal requirement. More details were needed before it could be properly compared with privatised services.
Among the reasons for choosing the privatisation option, the Council report stated:
"There is a general expectation that councils of the future will employ fewer staff and commission more services from the private and third sectors."
Lib Dem finance spokesman Cllr Chris Howell together with Independent Cllr David Shopland had called the decision in to be re-examined by the scrutiny panel. Cllr Howell said: "I have no idea where this general expectation of privatisation comes from. It is clear that the North Somerset Tories have decided to privatise Finance, Payroll, ICT and HR whether or not it is the best solution for council tax payers."
The Council also expects whichever company wins the contract to invest £2 million in the project, and predicts that the company will make a 3% return.
Cllr Howell added: "With such a low return on investment what company is going to want to take on this project? Even with the low base interest rate, there are banks offering 4% or higher for saving with them."
The Council is spending £380,000 from its reserves to fund the outsourcing project. While in opposition the Tories were critical of any use of reserves, which they said should only be spent on rainy days and not used for funding day to day projects.
Lib Dem leader, Cllr Deborah Yamanaka, said: "In the last decade the Tories were involved in running the Council for all but 18 months.
"Now that they have been back in power for two years they seem less concerned that council tax payers' money is well spent than on promoting Conservative privatisation ideology.
"I do not mind whether services are provided directly by the Council or by private companies. What matters is that services are good and provide value for money.
"But from the details we have seen there is simply not enough evidence to go ahead with privatisation."