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EPPING FOREST: Fears over privatisation of council services


PRIVATISATION plans for public services including care homes and schools could have "dreadful consequences", the council has been warned.

Essex County Council has invited private companies to bid for multi-billion pound contract to provide "any and all council services".

The move has attracted stinging criticism from trade unions, politicians and service users.

Denise Yapp, 59, the Unison representative at the now-closed Sherrell House care home in Fencepiece Road, Chigwell, says its transfer from the public to the private sector led to a "catalogue of errors".

Sherrell House was one of 10 care homes taken over by private company in 2005, and one of four which was closed following disputes over employment terms.

Mrs Yapp said: "Staff were asked to sign contracts which cut pay to minimum wage, ended sick pay, increased the length of their shifts and cut holiday entitlement.

"That led to a lot of legally-challenged redundancies, and the positions were filled workers from overseas who worked hard but had limited English and struggled to care for patients with conditions such as Alzhiemer's.

"It was a total disaster, and I fear these plans for other services could also lead to some dreadful consequences."

Her sentiments were echoed by Graham Hayden, 44, of Ivy Chimneys, Epping, who recently led opposition to a private company's plans to close his local sports hall.

He said: "Ultimately a private company is concerned with making a service profitable, and that usually means bad news for communities who want services to be run as an investment in community, and not as an opportunity to make money."

Tom Smith-Hughes, the leader of the Liberal Democrats at Essex County Council, criticised a lack of consultation with councillors or staff over the scheme.

He added: "Many outsourcing exercises have been undertaken by both this council and others around the country, which have proved catastrophic failures. Indeed as we speak, Essex County Council is exiting from its partnership with BT and transferring all its IT service back to the council.”

The backlash follows an advert placed in the Official Journal of the European by the county council, which says: "It is our intention that following a contract award the partner will have the potential to provide any or all of the council's services, provided that a robust business case, benchmarking and best value test is passed.

"These services will include, but are not limited to corporate and back office functions, environmental services, social care and school-related services."

Lord Hanningfield, the leader of Essex County Council, said no decisions have been made, and added: "Our aim is to deliver £200m of savings to enable us to keep council tax at an absolute minimum as we have done this year.

"We will also act decisively when we judge that any contract is not delivering value for money and will take appropriate action."

Comments(4)

Claridger says...
10:32am Fri 6 Feb 09

Kier, contrary to popular belief has worked wonders in Waltham Forest. The streets have never been cleaner and we see more sweepers than PCSO's. day and night, rain or shine, an excellent service and less mattresses and fridges dumped down our roads.

James Vorster says...
11:23am Fri 6 Feb 09

This is a very very bad idea, it will brinh nothing but trouble.

James Vorster says...
11:40am Fri 6 Feb 09

I would personally rather have a rise in council tax (which I don’t think his will stop) and keep public services in the public domain; also if they sell of everything then why do we need to pay the council a tax, as they will no longer be offering us any services?!

Essex County Council has already proven sell of services doesn’t work, they outsourced there IT to BT, which was such a failure that they cancelled the contract and now BT are suing!

danbrett says...
12:12pm Fri 6 Feb 09

It depends on how the privatisation is managed. Privatisation per se is not necessarily a bad thing. BT and BA were evidently better in private hands, whereas rail and water privatisation have not gone well from the customer's perspective.

I don't mind a private company taking over a service if it has a good track-record and the contract is not awarded purely on a cost basis. What alarms me is that Hanningfield wants to contract out "any and all" services to a private company. It seems he wants to just dump a whole range of services - social services, education, highways, etc - in the private sector to achieve cost savings. This makes me think that he hasn't got his mind on service improvement and that, even if we get a few quid off our council tax, we will all lose out as a result of this dogma.

Contracts with the private sector are notoriously difficult to exit and often end in litigation - obviously, because a business will want to hold on to a profitable revenue stream. When services are in the public sector there is direct management accountability to the council, but this is highly diluted when it comes to the private sector.

Hanningfield makes me anxious because it often seems that his policies are made up on the back of a napkin after a long liquid lunch in Chelmsford, then carried out because he can rely on a massive and docile Tory majority. There is radical thinking and there is lunacy and I think Hanningfield tends towards the latter.

Voters at the forthcoming council elections should not have their mind on national politics but on what is happening at County Hall.


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