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

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Arts Officer Exhibitions – Maternity Cover

London Borough of Richmond upon Thames and London Borough of Wandsworth
£37,602 - £45,564
Arts Officer (Exhibitions) – Maternit... Twickenham, Greater London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Traveller Site Officer

Oxfordshire County Council
46142 - 49282
About Us Oxfordshire County Council is seeking a Traveller Site Officer to join our small but brilliant, Gypsy and Traveller Service. We aim to deliver an outstanding service that is community focused, trusted, and inclusive, as well as promoting fairness Kidlington
Recuriter: Oxfordshire County Council

Financial Assessment Officer

Oxfordshire County Council
31537 - 34434
Work location
Recuriter: Oxfordshire County Council

Senior Voluntary Sector Grants and Project Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767
Senior Voluntary Sector Grants and Proj... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner