Telford & Wrekin to set up another private company

Telford & Wrekin Council are looking for a Commercial Enterprise Manager (salary £58,471 or 12 apprentices) whose job will be to look at following Shropshire Council’s lead and spin off a company to run council services.

The council has already been through this process with the creation of Telford & Wrekin Services (TWS) which it has since sold off to a Spanish company.  The savings expected from spinning off TWS were never realised because the company was set up to run council services without outside work an added bonus.  Giving the work to an established company that specialises in outsourcing would have resulted in cost savings and efficiencies because it would have the economy of scale and expertise elsewhere in the organisation to draw on that TWS didn’t.

It is for this reason that Shropshire Council’s new company and any new company Telford & Wrekin sets up to run council services will fail to realise the potential savings that come from outsourcing.  Telford is home to multi-national outsourcing companies already – Capgemini, EDS, Mitie and Johnson Controls to name but a few – so there is no shortage of examples of how outsourcing works in the real world.

There is no doubt that outsourcing works in both the private and public sectors because there is evidence of it working everywhere but it doesn’t work in the way that Telford & Wrekin have done it with TWS and are planning to do it through this new Commercial Enterprise Manager.

UKIP Telford & Wrekin has a policy of reviewing outsourcing at Telford & Wrekin Council to establish whether it is cost effective and commission a feasibility study into bringing services back in-house.  If the review concludes that outsourcing provides the best value to the taxpayer then we would put contracts out to tender with performance-related pay and if the review finds that providing services in-house provides best value for the taxpayer then we would allow existing contracts to run their course and bring the services back in-house.  What we wouldn’t do is continue to allow services to be delivered through a private company that is focussed on making a profit without any of the economies a large organisation can bring to the deal to make it better value for the taxpayer.

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