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Shared council plan scrapped
Reporter: MARINA BERRY and RICHARD HOOTON
Date online: 19 July 2011
OLDHAM Council has pulled out of controversial plans to share a management team with Rochdale.
The councils spent months preparing for joint working in a bid to save at least £20million through shared services — setting up a joint advisory committee, advertising for external advisers and discussing sharing a chief executive.
But Oldham has performed a dramatic U-turn with council leader Jim McMahon telling Cabinet last night that it was clear the two boroughs had a “different appetite” not only for the scale of the scheme but for its timescale.
The Labour leader said: “Before April we embarked on a challenging programme to integrate management services. There has been a significant amount of work carried out by members and officers from both sides to bring things together. But we will not be progressing with the original agreement.
“We will work together where we have natural synergy and services, but the most important thing for Oldham is to make sure the long-term stability of the council is protected.
“In these challenging economic times we need the right people in post to move this borough forward. We are confident that the team we have in Oldham is the right one to take Oldham forward.”
Oldham’s Lib-Dem opposition leader Howard Sykes, who kick-started the process before losing power in May, said it was a wasted opportunity that would have saved millions of pounds. He added: “I have been told there’s been some reluctance by colleagues in Rochdale to agree with what’s needed to achieve the proposition that makes it unworkable.
“I left all this in order. It was all teed up and ready to go and I don’t understand what’s happened.
“I think it’s a big ball dropped. Partnership working with Rochdale would have delivered a huge saving for both councils over the next few years that won’t happen now and savings will have to be found elsewhere.”
He predicted it spelt the end of joint-working, joint-management and a joint chief executive between the councils.
In an email to staff, Oldham Council chief executive Charlie Parker said: “Regrettably, following discussions between members and officers in both Oldham and Rochdale, both authorities have decided not to move forward with these proposals at this time.
“As part of our ongoing work to identify the budget savings we need over the next three years we will continue to talk to other authorities, including Rochdale, about opportunities to work together.”
Rochdale Council leader Councillor Colin Lambert said: “We have concluded that we will not be pursuing full integration, the constitutional issue of a shared Chief Executive or a joint and integrated management team.
“We have concluded that this would jeopardise Rochdale being able to retain its sovereignty and maintain strong, democratic accountability. In addition, this could have increased rather than reduced senior management costs at a time when we are being forced to cut services. This is not acceptable.
“However, we will continue to look at joint working opportunities with Oldham, as well as other authorities. We have an excellent track record of working with Oldham, most recently our joint street lighting contract, and we will build on that work wherever possible.”
Comments
well it probably would never have worked anyway!
although a good oppotunity was missed to get rid of some deadwood floating around in the ivory tower wasting money the council doesnt have!
one large super council was not big enough for two chief executives! shame!
what a mess - where is McMahon & Co going to find the millions this venture would have saved? How many staff will now lose their jobs? - how many social workers will go? how many teachers (or schools) will go? The Lib Dems started this process and according to Howard Sykes, all was going ok - but within weeks of taking back control, Labour messed it up. Not totally blaming Oldham Labour, Rochdale Labour are equally to blame - but the common thread is LABOUR.
It's clear that there were too many impassable obstacles, to the realisation of this, otherwise worthy objective. Too great a sense of what each was potentially sacrificing. Back to the drawing board then!
Oh dear. It looks like there's a local difficulty between Labour in Oldham & Rochdale. As Cllr Sykes says, this process went well until Labour got its mitts on it. The statements from their leaders are at odds with each other. Rochdale's is about keeping independence, Oldham are concerned about financial stability. One can imagine what that means!
Both imply that the scheme has no future and yet insist they will pursue it with other councils. What have they got that Oldham and Rochdale haven't?
I work in Rochdale and know just how weak politically they are and probably did not have the guts to go through with it.
Jim tried his best and pulled the plug when he saw just what a mess Rochdale is.
Jim has to tell us know where the savings are coming from. He placed a great deal on this joint bid http://www.oldham-chronicle.co.uk/news-features/8/news-headlines/56832/plan-to-share-services-backed-by-councillors.
Rather than this be determined in a "smoke-filled room" should the people be consulted - in a Referrendum ?
On paper it looked good but the devil was always going to be in the detail. Easy for Sykes to say it's a missed opportunity. He never got down to talking about the detail.
i wonder if the chief execs and the directors of both councils realised that a merger would probably have meant fewer of them were needed and if this had any bearing on the situation.
A perfect example of two labour councils working together? If this attempt at shared services could have saved £20 million then they damn well ought to "get some appetite" and strive to make this work. They owe it to the people of Oldham and Rochdale.
Not a good start for Councillor McMahon & Co.
How can they pass up the chance to save millions with such lame excuses? It sounds a lot like two big egos who wont share power. I see some peopele blaming the executives watching for their jobs but surely the councillors call the shots. If they think I'm up for paying more council tax so they can keep their own empires, they are mistaken.
It very clear that some services can operate across borders if the management and the politicians give this a trial.
Effie60
You are all most spot on. This was teed up and ready to go then along comes Cllr McMahon who within weeks has derailed the whole thing that could have saved millions so we now have to find away to raise the lost millions I can see the Council tax doubling next year which will make more people claim tax relief more lost revenue. Jim you could make a saving by stopping relaying the cobles in Failsworth. Jim it’s a cooperative Council so cooperate and save
Why is it that under the libdems, Rochdale was happy to work together to the benefit of both but as soon as Labour takes control they don’t want anything to do with Oldham it speaks volumes and it’s no good blaming Rochdale reading between the line its Oldham that pulled out. We could be looking at more job losses to make up the lost millions three month in control millions lost
yess great decision
I agree with the council, I want my taxes to fund services and schemes in my area, not places that could be miles away. This appears to me to have been a pathetic PR stunt by the former council that was never going to work, they just wasted more of our cash before the new council saw how bad an idea it was and pulled the plug, well done for U-turning, because this time it was the right thing to do.
This is a missed opportunity. Savings of £20m would have been big strides in the savings BOTH councils have to make. Rochdale's view is it wants to keep in own identity and Oldham is about financial stability, I know which one worries me more, financial stability? I think there is some seriously bad news to come for Oldham Workers.
Oi Owdhamedge', Rochdale is not in a mess it may get bad press but regeneration is going on, we would be getting Metrolink on time if it wasn't for delays in Oldham!!
Can it be Rochdale where not keen on Charlie Parker & Co being foisted on them as their new chief executive ? After all the successes - Vance Miller, new ground for Latics, Tommyfield Market, etc etc - how could this be ?
I think the fact that Rochdale have to claw back far more savings would make Oldham the deal breakers here. I am guessing that Oldham have said they call the shots as they have far less to save, Rochdale were not happy with that.
Proud_Rochdalian, having worked with both councils, as an Oldhamer I would not swap Oldham for Rochdales. Oldham have missed out on being dragged into more bother.
Have Your Say
Officers trying to save their own necks..... Now what is Jim going to do ?? He promised us savings, He promised action of Royton Assembly Hall within seven days when he took office. Perhaps in opposition it was more simple to talk the talk.
By Chron13 @ 19/07/2011 15:25:42