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Councils reject 'shared services' Councils reject 'shared services'
(about 2 hours later)
Three councils in south east Wales have rejected plans to deliver shared services with other local authorities.Three councils in south east Wales have rejected plans to deliver shared services with other local authorities.
Welsh councils have been urged by the assembly government to work together more closely to deliver savings.Welsh councils have been urged by the assembly government to work together more closely to deliver savings.
However Wales' biggest council Cardiff, along with Newport and Caerphilly, has decided against providing joint HR, training and payroll services.However Wales' biggest council Cardiff, along with Newport and Caerphilly, has decided against providing joint HR, training and payroll services.
Its leader Rodney Berman said the council could save more money by doing its own internal reorganisation.Its leader Rodney Berman said the council could save more money by doing its own internal reorganisation.
Jeff Jones said there were doubts over the savings the project could make
He told BBC Wales' Politics Show: "The bottom line for us was that, with these particular services, we believe that we can save more money, more quickly, by doing our own internal reorganisation of the services we provide."He told BBC Wales' Politics Show: "The bottom line for us was that, with these particular services, we believe that we can save more money, more quickly, by doing our own internal reorganisation of the services we provide."
Dominic MacAskill, Unison's head of local government in Wales claims that the councils' withdrawal could render the plan unviable, as he believes it makes savings less likely and far less immediate.Dominic MacAskill, Unison's head of local government in Wales claims that the councils' withdrawal could render the plan unviable, as he believes it makes savings less likely and far less immediate.
Jeff Jones said there were doubts over the savings the project could make
He said unions supported the shared services agenda in general but had grave concerns about the accountability of the new arms-length organisation proposed in this instance.He said unions supported the shared services agenda in general but had grave concerns about the accountability of the new arms-length organisation proposed in this instance.
He said: "Currently Rhondda Cynon Taf, a large authority, have yet to make a decision and Blaenau Gwent, a small to medium one, have yet to make a decision.He said: "Currently Rhondda Cynon Taf, a large authority, have yet to make a decision and Blaenau Gwent, a small to medium one, have yet to make a decision.
"I believe that even at present the project would not be viable."I believe that even at present the project would not be viable.
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There has been doubt over how much savings the scheme can make
"But certainly if one of those other authorities yet to make a decision opt out as well then the project certainly would not be able to move off.""But certainly if one of those other authorities yet to make a decision opt out as well then the project certainly would not be able to move off."
The project's senior officer, Bridgend council's chief executive Jo Farrar, said they had not expected all councils to participate and did not expect problems as a result.The project's senior officer, Bridgend council's chief executive Jo Farrar, said they had not expected all councils to participate and did not expect problems as a result.
"When we developed the business case we developed a model for 10 local authorities taking part but also fewer, and both were viable."When we developed the business case we developed a model for 10 local authorities taking part but also fewer, and both were viable.
"So we're confident that it'll still be viable, it'll still go ahead and it'll still be a great project.""So we're confident that it'll still be viable, it'll still go ahead and it'll still be a great project."
Jo Farrar said the business case was viable for few than 10 councilsJo Farrar said the business case was viable for few than 10 councils
The councils which have decided against taking part in the shared service scheme have raised questions about its financial planning.The councils which have decided against taking part in the shared service scheme have raised questions about its financial planning.
With all 10 councils on board it would cost anything up to £32m to put the scheme together.With all 10 councils on board it would cost anything up to £32m to put the scheme together.
But the project's own consultants estimate it would not provide any savings for councils until around 2016.But the project's own consultants estimate it would not provide any savings for councils until around 2016.
Local government consultant and former Bridgend council leader Jeff Jones said some council officers did not have faith in the project's outlined costs and projected savings, even with the promised sweetener of a £10m interest-free loan from the assembly government to help set the scheme up.Local government consultant and former Bridgend council leader Jeff Jones said some council officers did not have faith in the project's outlined costs and projected savings, even with the promised sweetener of a £10m interest-free loan from the assembly government to help set the scheme up.
Mr Jones said: "Some of them are saying there won't be any savings until 2020.Mr Jones said: "Some of them are saying there won't be any savings until 2020.
"If you are in local government, you might not be here in 2020.""If you are in local government, you might not be here in 2020."
Business caseBusiness case
He questioned whether councils would put forward £31m to set up new systems if they believed they could save money within their own authority doing something on a smaller scale.He questioned whether councils would put forward £31m to set up new systems if they believed they could save money within their own authority doing something on a smaller scale.
But Ms Farrar said the business case for the project was prudent and that the borrowing needed to set it up would not come with any additional costs to the council taxpayer.But Ms Farrar said the business case for the project was prudent and that the borrowing needed to set it up would not come with any additional costs to the council taxpayer.
The shared services plan envisages 40 redundancies and 200 redeployments of staff across the various councils.The shared services plan envisages 40 redundancies and 200 redeployments of staff across the various councils.
Trade unions say many staffing questions remain unanswered and said councillors were being asked to transfer staff to a new body without any knowledge of how that body would work.Trade unions say many staffing questions remain unanswered and said councillors were being asked to transfer staff to a new body without any knowledge of how that body would work.
Jo Farrar said what was envisaged was a new public service organisation run by the councils that are participating.Jo Farrar said what was envisaged was a new public service organisation run by the councils that are participating.
She said that the location for the new organisation's headquarters had not been decided, but would be "in an area of low employment" to bring opportunities to the chosen area.She said that the location for the new organisation's headquarters had not been decided, but would be "in an area of low employment" to bring opportunities to the chosen area.
A Welsh Assembly Government spokesperson said it had always been understood that the project would still deliver significant benefits if not all 10 local authorities were involved.A Welsh Assembly Government spokesperson said it had always been understood that the project would still deliver significant benefits if not all 10 local authorities were involved.