Jonathan Werran 30 August 2012

Bournemouth forced to ‘insource’ following Mouchel restructure

Bournemouth Council is facing calls to bring back its workforce in-house after troubled contractor Mouchel went into administration as part of a restructuring deal.

Demands to ‘insource’ council staff follow a controversial £300m deal with Mouchel approved by councillors last October. Under the contract, Bournemouth added its human resources and finance departments to existing outsourced arrangements for IT, revenues and benefits and facilities management.

Having raised concerns in an email sent to councillors ahead of the crucial vote approving the deal, Bournemouth’s chief accountant, Stephen Parker, was suspended on full pay until reinstated this April.

Leader of Bournemouth’s independent group, Cllr Anne Rey said: ‘We were against it as opposition councillors and we were proved right. We wouldn’t be going into partnership with this company now on such a big scale.

‘They had all the warnings and I think everything should come back in-house now and give the opportunity to the staff to say how they could do better,’ said Cllr Rey

Under the terms of Mouchel’s restructure, which followed last Friday’s rejection by shareholders of a £87m debt for stock deal, its assets were sold to MRBL Ltd, a new firm owned by its main bank lenders and management. Mouchel chief executive, Grant Rumbles, said the restructuring would secure the long-term future of the firm and help preserve 8,000 jobs.

In response, leader of Bournemouth Council, Cllr John Beesley, said: ‘Of course, we continue to manage, monitor and review the contract closely, to ensure that service targets are being met within the agreed contract price, so guaranteeing ongoing savings to the council.

‘It essentially remains business as usual for our incremental partnership and our relationship with MRBL remains strong as they continue to deliver.’

Elsewhere, a spokesman for Milton Keynes Council, which last week announced it would radically alter its contract with Mouchel, claimed it would be ‘business as usual’ despite the restructure. Around 700 of Milton Keynes’ employees in various services – including revenues and benefits, highways, ICT and property – will be brought back in-house under the new arrangements.

A council spokesman said: ‘While the council has a business continuity plan in place to deal with a number of scenarios, Mouchel’s news does not in fact affect how we currently deliver services in Milton Keynes, or the proposals to transfer services and staff which we talked about earlier this month.’

SIGN UP
For your free daily news bulletin
Highways jobs

Minerals Monitoring and Compliance Officer

Durham County Council
Grade 9 £35,412 to £39,152 per annum
We are looking for an experienced individual who has the knowledge of service planning issues relating to development management and monitoring / comp Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824
We have a permanent post available within the Pathways Service - which provides day services Monday to Friday to adults with complex needs. We have 1 Peterlee
Recuriter: Durham County Council

Classroom Teacher

Durham County Council
£37,101 - £45, 352
Classroom Teacher (across KS1 and LKS2) Required to start 1st September 2026   The children, staff and governors of Sedgefield Primary are looking to Sedgefield
Recuriter: Durham County Council

Class Teacher- EYFS Lead

Durham County Council
£45, 352 - £51,048
The children, staff and governors of Sedgefield Primary are looking to appoint an enthusiastic and hard-working Reception Teacher to join our strong t Sedgefield
Recuriter: Durham County Council

Teaching Assistant

Durham County Council
£26,403 - £28,598
At Howletch Lane we are commited to providing a nurturing and inclusive environment where every child can thrive academically, socially and emotionall Peterlee
Recuriter: Durham County Council
Linkedin Banner