Not Naughty But Norse - Radical Plan for Middlesborough Services

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23 January 2015 | Updated 01 January 1970

Plans for sharing council services have been proposed by Middlesbrough Council that would see a joint venture with Norse. If approved, it could affect the employment conditions of 1,400 workers with them being transferred to Norse - a firm that specialises in creating joint venture companies with local authorities. The original co-ownership is with Norfolk County Council.

The services being considered for this arrangement are immense and currently include:

• Building maintenance
• Building cleaning and caretaking
• Bus station management
• Security and CCTV
• Pest control
• Bereavement services
• Ayresome Industries
• School catering
• Waste disposal contract management
• Environmental education and enforcement
• Green waste collection
• Parks management and maintenance
• Highways inspection and maintenance
• Strategic property management.

The council has said that the proposed changes could, theoretically be implemented in six weeks but employee union, Unison, has complained that this would be hurried and unfair to workers involved. “We believed that this idea was at its early stages of consideration and much more work was needed before there would be a final decision – that it was too early for details to be shared with us,” said Ian Campbell, Branch Secretary.

For its part, the council argues that due to cuts to local government, radical changes are required. If the new arrangement is voted through by the Labour dominated council, 50% of any surplus would be returned to the local authority but how it would be able to make this, is unclear at this time.

Norse

2014 proved to be the most successful year to date for Norse Commercial Services in terms of forming new local authority Joint Venture Companies. The company added three new JVCs in the twelve month period, together adding to the company’s annual turnover to the tune of £32 million. Norse’s turnover from these partnerships with councils around the country now accounts for around £108 million a year.

New agreements with Great Yarmouth Borough Council and Newport City Council, together with a partnership with seven Norfolk Councils for waste recycling, mean that the company now operates 14 such commercial arrangements with local authorities.

These business models deliver a diverse range of services including cleaning, catering, building and grounds maintenance, caretaking, household and trade waste collection, recycling, facilities management, street cleansing, security, transport, printing and car parks.

“With local authority budgets under ever-increasing pressure, the Norse partnership model offers them significant cost efficiencies whilst securing hard-pressed front line services,” says Director Geoff Tucker. “Over the last five years we have saved the public sector more than £70 million, protected vital services and secured thousands of jobs.”

Managing Director Peter Hawes has already forecast further JVC announcements over the coming year. “Our public sector ethos combined with commercial flair is proving so attractive that we are constantly in discussion with councils looking at new ways of squaring the cost reduction/service delivery circle. We are at advanced stages of negotiation with a number of local authorities across the country and we expect to set up more partnerships in 2015,” he said.

With these agreements usually set up for a ten-year term, along with its contractual work Norse now has a forward order book in excess of £2 billion.

Picture: Middlesbrough Council is proposing to transfer many of its services to a jointly owned body co-owned with Norfolk County Council.

Article written by Mike Gannon | Published 23 January 2015

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