UNISON Analysis of Business Case for Local Authority Trading Company

Dear Councillors

RE: UNISON Analysis of Business Case for Local Authority Trading Company

Please find enclosed copy of our report here

The Council business case is 198 pages and was only released for consultation with our members and members of the public late on Monday 16 May 2011. We have prepared a brief response to highlight our concerns and proposals which I hope you will take time to read and consider. Local Authority Trading Companies are relatively new service delivery model hence our concern about rushing through a proposal which affects social care services. Earlier this week were informed that another LATC Chelsea Care has gone into liquidation. I am enclosing the full report and leave you with four key points: Value for money Value for money was not proven in the draft business plan and exclusion of the financial chapter from the published version of the plan, makes it impossible for service users, staff and trade unions to examine and challenge the viability and sustainability of the business case. Risks Risks for service users and staff have been deliberately understated because the Council is fixated with developing the LATC model so that it can “assess the commercial viability of other services before any longer-term decision is taken regarding their divestment.” The Council’s strategy is to transfer risks to service users and staff, so it can relinquish responsibility for service provision and employer obligations. We understand that Chelsea Care, a London Borough of Kensington and Chelsea LATC, has allegedly gone bankrupt! Serious shortcomings A Business Case should provide a strategic, economic, financial, operational and management case for a change in service delivery, investment or a specific project. Shortcomings identified in the trade union Interim Critique have not been addressed. Lack of market analysis A decision is being taken to establish a trading company without a clear understanding of the sector or market within which the company will operate. The Council seeks to commercialise services, yet fails to be fully prepared for the commercial consequences. Best wishes John Burgess Branch Secretary. Barnet UNISON Standing up for staff and public services Not for onward transmission in whole or part without permission

Local Authority Trading Company (LATC) goes bankrupt!

News reached the branch yesterday that Chelsea Cares a LATC has allegedly gone bankrupt!  We are seeking confirmation on this breaking news and the implications for service users and staff.

Please Note: On 24 May at Cabinet Resources Committee, members o fthis committee are going to agree to transfer all of their adult social care services into a LATC.

UNISON responses to legionella issue in Barnet Care Homes

Dear officer

Thanks for the response I have read your responses and I have a number of further questions:

 

In relation to question 1 I have been told that a day care service user contracted ‘legionnaire’s disease’ and it was this that led to the legionella check in all of the homes. Can you confirm this is the case? Furthermore you mention that “Barnet public health team has undertaken a look-back exercise” why only for eight months and not a full calendar year? In terms of this exercise did they forget or miss out Merrivale for some other reason?

 

In relation to question 2, I note that in the improvement notice Catalyst you make the following suggestion:

“You should appoint a ‘responsible person’ to take managerial responsibility and provide supervision for the implementation of precautions.”

 

This is of particular importance since the recent incident at Apthorp Lodge identified that there was a lack of communication between Catalyst, Fremantle, Kier and Musketeer. Due to the complexity of your arrangements at these care homes it is imperative that you identify clear lines of responsibilities and reporting arrangements for each of these parties.”

 

There four organisations mentioned in the above statement do they not have any health & safety responsibilities to the residents, staff and members of the public?

 

In relation to question 3 it is now three months since we were alerted by the Director of Adult Social Services to the legionella issue. Can you confirm that all three homes are now clear of any legionella infection?

 

In relation to question 4, whilst I am glad to hear we are checking for legionella, can you confirm who is paying for these checks and how long will they continue?

 

In relation to question 6 I assume from the fact you have served an ‘Improvement notice that their previous risk assessments were unsatisfactory?

·         When was the last risk assessment taken for each home ?

·         What do you mean by elevated levels of legionella?

·         What is an acceptable level legionella if as you say ‘Legionella bacteria are ubiquitous’

 

In relation to question 8, now that I understand the technical application of the term ‘outbreak’ I will endeavour not to use it in this case. If someone had approached me much earlier I would have amended my public reports to my members. At the weekend a member of the public alerted me to a story in Glasgow about what I believe is a legionella outbreak:

 

“A rise in the number of people with Legionnaires Disease in Glasgow is being investigated.

 

The NHS Greater Glasgow and Clyde Public Health Protection Unit are to study the increase in the number of people being diagnosed.

 

Five people have recently tested positive, including an elderly man with underlying medical conditions who died last week”

 

As there are a number of investigations going on without the involvement of the trade unions you must understand that this matter is of concern both for our members, residents and members of the public. If my request for a public inquiry had been agreed we may be all been clearer about what went wrong and what mechanisms will be in place to ensure this does not happen again.

 

I would hope everyone agrees there has been a narrow escape and no one was infected. I am a little worried by your response where you say

 

“All that has happened at these care homes is that Legionella bacteria have been found in the water supply and routine action has been taken to deal with this.”

 

As I don’t know if the homes have been given the all clear it does appear that routine action has not been sufficient and suggests there are further problems.

 

In relation to question 9, I am concerned to read that despite what you describe as comprehensive attempts to deal with the legionella Catalyst are still not able to give an ‘all clear’. It does suggest the problem is more serious than was first indicated in the letter to staff in February.

 

In relation to question 10 it is clear that this matter is not a routine operation but a more complex situation which is contradictory to your response to question 8.

 

In relation to question 11, the improvement notice was served on 16 March and Catalyst had to respond by 7 April 2011.

 

I note that Failure to comply with this Improvement Notice is an offence as provided by Section 33(1)(g) of the Health and Safety at Work etc. Act 1974 and s.33 (2A) of this Act renders the offender liable on summary conviction to imprisonment for a term not exceeding 6 months, or to a fine not exceeding £20,000, or both, or, on conviction on indictment, to imprisonment for a term not exceeding 2 years, or a fine, or both

 

Can you confirm that they have complied with the notice and if not what action is going to be taken to ensure they comply.

 

Best wishes

John Burgess

Branch Secretary.

Standing up for staff and public services

Barnet Alliance for Public Services

UNISON submit Competitive Dialogue Protocol to all Barnet Councillors

Dear Councillors

Barnet UNISON has submitted a Competitive Dialogue (CD) Protocol which sets out our expectations for staff and trade union engagement to the Deputy Chief Executive and Director of Commercial Services. I have enclosed the draft Corporate Procurement Policy we submitted in October 2009 as it sets out our views on engagement and process for a Corporate Procurement policy and the draft Trade Union Proposal ‘Guidance for Contractor’. The CD protocol would sit within the Corporate Procurement Strategy.

As always these documents are proposals sent with the intention we can find a basis to agree a process of what is a high profile and widely scrutinised procedure.

If any councillor wishes to seek clarification on any of these reports please do not hesitate to contact me. The above reports have been circulated to UNISON members for comment.

Best wishes

John Burgess

Branch Secretary.

Barnet UNISON

Standing up for staff and public services

To view Protocol click here

To view UNISON Draft Corporate Procurement Policy click here

To view Trade Union Proposal “Equality and Fairness in Procurement Guidance for Contractors” click here

Privatisation madness condemned by Coalition Government?

Madness by Madness

Some days I think is it me or has the world gone completely mad, do members have these sorts of days?

So my music video for this week is Madness by Madness

http://www.youtube.com/watch?v=vh8J1istSg8

Privatisation Special??

Today I have been inundated by emails highlighting a number of reports about privatisation of public services. It is very, very clear from reading flawed options appraisals and business cases for the One Barnet no evidence has been produced to substantiate the exaggerated claims that privatisation of Barnet Council services and staff will deliver savings.

Barnet UNISON has produced almost 30 detailed reports on easyCouncil and recently submitted two detailed reports on the business case for the privatisation of Development and Regulatory Services (DRS).

I want to quickly remind members of what the reports said

Professor Dexter Whitfield (European Services Strategy Unit, Adjunct Associate Professor, University of Adelaide, with over 35 years experience of planning, researching and analysing local authority policy documents in Britain and overseas) was commissioned by Barnet UNISON three years ago to provide consultancy support for the Easycouncil/Future Shape/One Barnet programme you can view his reports here.

Dexter Whitfield said this about the DRS business case:

·         “The DRS Business Case has a superficial appearance of authenticity but is fundamentally not fit for purpose and elected members have a duty to decide it is non-compliant.”

·          “There is clearly a high risk that user charges will be increased in order to achieve the income generation targets.”

 

Adrian Waite (Independent Consultancy Services) was commissioned by Barnet UNISON to examine the financial aspects of the business case. Adrian is a highly experienced and respected local government finance expert. He has held a number of senior roles in local authorities including Director of Finance and s151 Officer and is a fully qualified member of the Chartered Institute of Public Finance and Accountancy.

I

Adrian Waite said this about the DRS business case

“During the thirty years that I have worked in local government finance as a local government officer and management consultant, including some time as Finance Director of a Borough Council, I have seen and written many business cases, business plans and options appraisals.”

“This business case is remarkable for the apparent lack of robust evidence to support its main conclusions that £28million of savings and increased income is achievable and that this can only be delivered through outsourcing.”

To read Dexter Whitfield’s report click here

To Read Adrian Waite’s report click here

 

Back to the articles

It has been astonishing to read the number of articles about the risks of privatisation in the national media. I had to keep checking that they had not been written by UNISON

“The government was not prepared to run the political risk of fully transferring services to the private sector”  Note of a meeting between Cabinet Office Minister Francis Maude and CBI director John Cridland

Lots of members believe that One Barnet is simply political ideological. Have a read of the following articles see what you think.

1. Outsourcing ‘not an inevitable response’ to austerity, says Socitm report

new warning note about the risks of outsourcing IT appears in a briefing from Socitm Insight, the research arm of the public sector IT managers’ association.

Costs of Outsourcing – Uncovering the Real Risks accepts that there are good reasons for outsourcing, especially for smaller organisations. However, outsourcing a major component of the ICT service, or even the whole service, “is a major commitment and fraught with risk”.

According to the report, Socitm’s benchmarking service, which has compared costs and user satisfaction over a decade, shows that, when comparing the costs for any service; most elements will be more expensive if outsourced. The risks associated with benchmarking begin at the tender stage when suppliers will benefit from being experts at the process of negotiating contract terms, in contrast with the local authority that will go to market only rarely for a major outsourcing, the report says.

The briefing also counsels public services to avoid the mistake of outsourcing information assets alongside their technology.

‘Outsourcing should not be considered an inevitable response to austerity’ says Martin Greenwood, author of Cost of outsourcing. ‘Even smaller organisations that need to gain economies of scale, and struggle to keep up to date with technological development, should consider collaboration and sharing with other local public services as a genuine alternative. If they do take the plunge into outsourcing, they should make sure they are aware of the pitfalls and know how to avoid them.’

Costs of outsourcing – uncovering the real risks, is available free of charge to Socitm Insight subscribers, and can be downloaded from www.socitm.net.

2. Socitm report highlights outsourcing risks

The report, ‘Costs of Outsourcing – Uncovering the Real Risks’, examines the risks in detail and offers advice about how to tackle them.

“How to make outsourcing pay for client and supplier Socitm points out that although there are often good reasons for outsourcing, especially for smaller organisations unable to benefit from economies of scale or afford to change technology as regularly as their larger competitors, outsourcing a major component of an ICT service is fraught with risk……”

It goes on to say

“It also argues that when comparing the costs for any service, most elements will be more expensive over a 10-year period if outsourced. This may seem counter intuitive, but report author Martin Greenwood said: “It is a myth that outsourcing is cheaper, across most areas it is more expensive and people outsource for a range of reasons other than cost.”

Further adding

“Another risk lies with outsourcing information assets alongside technology, as the ability to exploit these is a key source of efficiency savings and even advocates of outsourcing advise against this.”

To read full article: http://www.computing.co.uk/ctg/news/2049497/socitm-report-highlights-outsourcing-risks#ixzz1LOcn7ycX

3. Coalition scales back privatisation plans over ‘excess profit making’ fears

The government has privately admitted it is scaling back its plans to privatise swaths of the public sector for fear of appearing to be in favour of private companies excessively profiting from the taxpayer.

A leaked memo of a meeting between business chiefs and the minister for the Cabinet Office, Francis Maude, says there will be “no return to the 1990s” and wholesale outsourcing. Maude is preparing a white paper on public services – delayed since February – setting out the future direction of public services, which is expected to contain plans to match private sector companies to charities and volunteer groups to run public services.

Read full article here

4. Plans to outsource public services ‘scaled back’

“The government is scaling back plans to use the private sector to deliver public services, the BBC has learned.

Leaked documents suggest ministers have decided the “wholesale outsourcing” of public services to the private sector would be politically “unpalatable”.

Ministers instead want to use more charities, social enterprises and employee-owned “mutual” organisations.

Outsourcing was meant to be a key part of the government’s drive to cut costs and reduce the UK’s budget deficit.

The note, obtained by the BBC, is marked “strictly private and confidential” and was drawn up by the CBI as a record of the meeting.

It says: “The minister’s messages were clear cut… the government is committed to transforming services, but this would not be a return to the 1990s with wholesale outsourcing to the private sector – this would be unpalatable to the present administration.

“The government was not prepared to run the political risk of fully transferring services to the private sector with the result that they could be accused of being naive or allowing excess profit making by private sector firms.”

To view full article click here http://www.bbc.co.uk/news/uk-politics-13273932

5. Leaked government documents suggest shared services are the future

Leaked documents have cast doubt on the government’s enthusiasm towards wholesale outsourcing to help it cut public sector costs and suggest that joint ventures would be a more palatable remedy to excessive government costs.

According to a BBC report, leaked documents suggest ministers view the wholesale outsourcing of public services to private companies as “unpalatable”.

To view full article click here http://www.computerweekly.com/Articles/2011/05/04/246579/Leaked-government-documents-suggest-shared-services-are-the.htm

Re-vamped LGPS Campaign News launched!

Welcome to the re-vamped LGPS Campaign News – now known as ‘LGPS – Protect Our Pensions’. UNISON is campaigning hard to protect all the pension schemes to which UNISON members belong, but ‘LGPS – Protect Our Pensions’ will focus solely on our campaign to protect the LGPS.

 

‘Protect Our Pensions’ Bulletins 1 and 2 and eFocus have brought you up-to-date with the latest news about the Hutton Review and the Budget. LGPS contacts and branches with LGPS members should also have received copies of the leaflets produced for the joint union LGPS campaign; Ten key facts, Myths exposed, 2011 budget and Why the LGPS pension tax must be stopped (copy attached). If you haven’t seen them, you can view/download the leaflets at:

 

http://www.unison.org.uk/acrobat/19833.pdf

http://www.unison.org.uk/acrobat/19834.pdf

http://www.unison.org.uk/acrobat/19835.pdf

http://www.unison.org.uk/acrobat/19836.pdf

 

Make sure you get copies – ordered using the order form attached. Use them in your campaigning with other LGPS unions locally!

To view full document click here

Your Pension- What you can do to defend them

Colleagues

The attached model letter asks MPs to support the following Early Day Motions (EDMs):

The attached model letter asks MPs to support the following Early Day Motions (EDMs):

1629 in the name of Ed Miliband opposes the permanent change from RPI to CPI for public service pensions

1032 in the name of John Robertson questioning the change from RPI to CPI for pensions and benefits

1625 in the name of John McDonnell praying against the govt’s statutory instrument to make the RPI to CPI change for public service pensions

It’s important that MPs support these EDMs, therefore, I would urge you all to send this letter to your MP.  If you are unsure about the name of your MP please visit the http://www.theyworkforyou.com/ website.

Ouch!!!!SouthwestOne – IBM & Somerset County Council

Over the last three years there have been a number of updates about the IBM takeover (SoutwestOne) of public services in Somerset.

We have previously reported that SouthwestOne was not delivering and reportedly made a loss of up to £16 million last year.

Today we have a short video of a news report providing more details which further support Barnet UNISON’s view that One Barnet programme is playing high risks and not recognises the serious fundamental risks of these type of strategic partnerships.

The Conservative party Leader in this video claims that if they could rip up the contract they would be able to save £58 million! They are re-negotiating the contract but you don’t mess with companies like IBM.

I wouldn’t want to be a tax payer in Somerset!

To view video click here

“Barnet Council in-house services could deliver £1 Trillion in savings over the next 100 years!”

Media spokesperson for Barnet UNISON ‘Handsoff Christian Anderson’ said that after consulting with members and retired members they had looked at the books and believe the savings are genuine.

Handsoff who has joined Barnet UNISON after working as a consultant for an Emperor (in a land far far away) said that he had made successful similar claims in his previous job. When pressed by local journalists he refuted accusations that his consultancy advice to the Emperor had been undermined by a little boy who noticed that the Emperor was in fact walking about in the nude!

Handsoff has pledged to draft a fairytale report and hand it to all Barnet councilllors at their Big Party on 17 May at Hendon Town Hall.

“We don’t have any evidence and we don’t know what we are doing but you just have to trust that we are right, just look at our claim £1,000,000,000 that is a lot of money and it all goes back into the community.”

Barnet UNISON unofficial auditor Rip Van Winkle after hearing the claims is reported as saying he “will have to sleep on it” before deciding if he can sign off the fairytale report.

Look out for further announcements from Barnet UNISON Easter Bunny later this week.

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