Saturday, 13 August 2011

Sharing support services...

I see that the business case developed for seven of the eight Clyde Valley Councils to share support services has come in for criticism from Unison both at an Inverclyde and Scottish level.

I should make it absolutely clear that the Council Administration has an entirely open mind on whether or not this model is the way forward. Over the coming weeks the business case will be subjected to detailed review by officers and scrutiny by elected members. Full consultation will take place with the trade unions and affected employees, with their views informing the decision that will be taken by elected members.

At the same time officers, again in consultation with employees and their representatives, will develop alternative savings proposals that will be assessed against the business case for sharing services with other Clyde Valley Councils.

This having been said: it is worth remembering the context in which the Clyde Valley Councils have been looking at sharing services.

We have faced, and are very likely to continue to face, significant cuts in funding from the Scottish Government and the effective removal of our power to vary local taxation. In order to try and sustain front line services the pressure is on us to make ongoing efficiency savings, which inevitably means a reduction in the number of employees in particular service areas.

There is a view within Government that significant efficiencies could be secured by Councils sharing services. There is also a view that similar or even greater efficiencies could be achieved by merging Councils.

The risk if Councils do not voluntarily enter into service sharing arrangements, along the lines proposed for the Clyde Valley, is that smaller Councils, such as Inverclyde, will be forced to merge with larger neighbours.

Some people might argue that this would be a sensible way forward. I remain to be convinced that it would be in the long-term interests of the people of Inverclyde.

If there is a fear on the part of unions that jobs in Inverclyde could be relocated elsewhere under a shared service model I would suggest that the risk of this would be even greater if the Council was subsumed into a Greater Renfrewshire Council.

This is a huge decision for the Council. It is important that we get it right.




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