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Opinion divided on Unity Partnership
Reporter: by JANICE BARKER
Date online: 29 July 2010
A £260 million deal which links Oldham Council to a business partner has failed to bring in new work or create jobs and has left the public and councillors confused about who is responsible for some services, says a new report.
The Unity Partnership was set up in 2007 to bring extra investment and greater expertise to council operations.
But councillors on a scrutiny committee will hear tonight that colleagues who have been studying the deal for several months, have 19 recommendations for improvement.
Unity took over 400 council jobs to provide back-office services for the customer-call centre, housing benefit, council-tax collection, building management, highways design, and architectural services.
It was formed when Mouchel Parkman plc, the professional support services group, teamed up with business specialist HBS, and the council.
Tonight’s Performance and Value for Money Select Committee will hear there has been criticism from people using the call centre about delays; confusion over who does what on highways; criticism of the ICT service; a call for improvement and efficiency on building management and services; no significant economies of scale because Unity has not expanded its services, and no new business centre has been built.
On highways, the report calls for more value for money, because Unity is paid a percentage of the schemes, with no incentive to keep costs low. Timescales are also excessive.
Tonight’s meeting will also hear that the council has failed to give guidance and clear direction to Unity in some areas. Its findings will be sent to the Cabinet, for senior councillors to decide on action.
Officers believe there have been improvements in the months since the report was commissioned but the council and Unity declined to comment before the report has been considered tonight.
However Councillor Jim McMahon, Labour Opposition leader, said: “Most reasonable people will be questioning what is in it for the people of Oldham, or the hundreds of staff who were transferred.
“Before the partnership was set up I headed a scrutiny review and warned about the risk this would not be delivered.
“The Labour Group intends to carry out it’s own investigation ahead of any further transfer, and I look forward to the council’s full co-operation.”
Jim McDermott, former convenor for the GMB union at Oldham Council, now a North-West official, said: “The whole episode has been smoke and mirrors with the council paying extortionate recharges to Unity for everything they have to use them for.
“The obscene part of the Unity partnership is the rent-free allowance that the council have granted Unity, while Oldham businesses are genuinely struggling in this economic climate to survive, never mind the new businesses who will not receive similar arrangements as they are try to get up and running.
“Effectively, the people of Oldham are subsidising the shareholders of a private company.”
Comments
If the council need to buy in £260m worth of "greater expertise" then perhaps as a matter of urgency they need to look at their recruitment. If the council officers are not up to the job they should go and possibly take the Value for Money Select Committee with them.
Just take a look at the shambles in Delph with the new school 'safety' zone. Still not finished after months and months. Far more expensive work than was needed.
Well the legecy that Labour and then Cheif Exec Andrew Kilburn (Remember him) lives on. Perhaps we should remember this when voting next May..
I remember when the first phase of this partnership was implemented - along with how much it was going to improve services and save money. I am still yet to be convinced and to top it all Oldham Council is now looking into entering into a second phase of transferring even more services. Let us all know how much the people of Oldham have saved through entering into such a contract then let us decide.
Mr Jim McMahon, Labour Opposition leader, said: “Most reasonable people will be questioning what is in it for the people of Oldham, or the hundreds of staff who were transferred... “Before the partnership was set up I headed a scrutiny review and warned about the risk this would not be delivered...so Mr McMahon why did your lot sign this deal with unity, did they not believe you?...or is it that yet again Labour are trying to blame someone else for something they did..just tell the truth
"the people of Oldham are subsidising the shareholders of a private company"
Couldn't have put it better myself.
There is NOTHING in this for the people of Oldham and everything in it for the private company.
This was a bad idea from the start but like PFI deals, once signed, tough luck. You're stuck with it.
Will those who agreed and designed this contract be held responsible for it?
Chron13. When it was being investigated Kilburn insisted that if it went ahead it had to be with cross party support. In terms of agreeing it the Lib Dems are as culpable as anyone.
Classic example of Labour throwing money at something without any guarantee of success.
The Lib Dems are just as bad with their shut up shop and hide behind legislation tactics when it comes to being scrutinised about policy.
The report says there are 19 recommendations for improvement, so Jim McMahon wants to do his own report just in case the proposals do not suit him and this is the man who says " before the partnership was set up I headed a scrutiny review"
Note before it was set up : now he (Labour) having headed a scrutiny about a Labour idea now wants to run his own review again as it is not working...no problem there then!
Odds it is not his fault at all as usual.
Its findings will be sent to the Cabinet, for senior councillors to decide on action. THAT REALLY WORRIES ME.
Jim McDermott hits it on the nail, but forgets to mention the complete incompetence and the ‘them and use’ of unity partnership, if you have ever talked to then over the phone you quickly realize they don’t know what they are doing, because the other half isn’t talking to them. THEY WANT REMOVING WITH NO PAY OFF
The private sector duped the Council. No Councillor from any of the parties had the bottle to say no because it was Labour Government policy to outsource all the Council services, the private sector can do it better! When will the politicians learn that the private sector is only in it for profit at tax payers expense the Con/Lib Dem. partnership locally and nationally are sill been duped.
The Private Sector lawyers and Accountants made a fortune at Tax Payers expense setting up the Partnership
Unity have been ripping Oldham Council off since the start - same staff who did the job however the prices are extreme - council have to use them - no choice
So who signed such an apparently naff deal on behalf of the people of Oldham??
This shambles is merely a symptom and not the cause. The cause is Labour plundering the pensions pot then refusing to end final salary pensions for the public sector leaving a black hole in funding.
The only way out was to move the jobs to the private sector and ignore the consequnces about poor services. If the public sector has realistic pensions provision none of this would have happened and we would have council controlled, council services.
Have Your Say
yet another quango created in the labour era that didnt work! scrap it! save money and spend it on some more useful!
By fedupoldhamer @ 29/07/2010 11:50:39