Opinion divided on Unity Partnership

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.”