Privatisation is still on course

9:00am Thursday 22nd March 2007

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FINAL talks that could lead to the privatisation of key council services and up to 700 jobs were last night given the go ahead by South-ampton councillors.

Ignoring pleas from Labour councillors and unions, who staged a vocal demonstration of the steps of the Civic Centre, the Tories and ruling Liberal Democrats appointed Capita, a business "outsourcing" specialist, as the company to take on the job.

Southampton City Council will now thrash out the remaining details of a ten-year contract that would include services such as IT, customer care, property, human resources, payroll, council tax and benefits.

It could lead to the creation of a "regional business hub" that would act as an external call centre for the city council and could be used by other councils and services.

Proposing the move, council leader Adrian Vinson called it a "quantum leap in services" that would transform the council's financial prospects.

He said everyone was agreed that "no change was not an option", but recent strike action by 2,000 Unison members did not instill confidence that unions could deliver the "cultural change" needed for an in-house alternative.

Unions and the Labour group had argued the council could make the same savings and benefits by overhauling and modernising services themselves.

Labour also accused Lib Dems of breaking promises about phasing the privatisation in stages.

Flashing a black tie, Labour finance spokesman Peter Marsh-Jenks said: "This could be the funeral of huge swathes of council services."

He called the proposal a "dog's dinner" and threatened a post-May election Labour administration would obstruct any deal by all lawful means.

Labour leader June Bridle added: "No change is not an option, but it doesn't have to be this change."

Tory leader Alec Samuels said it would not be a funeral or shotgun wedding but a "happy marriage".

He said the deal would bring vital investment, better prospects and more opportunities for staff, and better services and value for taxpayers.

Branding the Labour councillors "old Labour" Cllr Samuels drew a rapturous applause from his opponents.

He deplored their threats of "coercion, intimidation and sabotage."

Cllr Vinson went on to label the Labour group "wreckers" who were "unfit" to mange the council.

Earlier Unison regional organiser Steve Brasier said told councillors the deal, dubbed a "strategic services partnership", was about driving down costs and maximising benefits for Capita shareholders.

Unison branch secretary Mike Tucker said councillors had chosen to ignore the views of the staff they employed.

"Councillor Vinson almost blamed the staff for having to use the private sector," he said.

Unison members - about one-sixth of the total council workforce - will now start a policy of non-co-operation from Wednesday.

The financial details of the proposed partnership were discussed behind closed doors during the three-hour debate.

Negotiations with Capita, which holds many large Government and council contracts elsewhere, will continue with a view to signing a contract in July.

Services and jobs could then be transferred on October 1.