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

Residential Assistant - ASC

Essex County Council
£25081.0000 - £25395.0000 per annum
Residential Assistant - ASCPermanent, Part Time£25,081 up to £25,395 per annum Location
Recuriter: Essex County Council

Consultant Social Worker - Frontline

Durham County Council
Grade 13 - £47,181 - £51,356
Are you an experienced children and families social worker keen to help develop the next generation of social workers in Durham?   Are you passionate Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 11 - £40,777 - £45,091
Applications are invited for a Social Worker within the Easington Locality Team. WHAT IS INVOLVED? Are you a compassionate and dedicated Social Work Durham
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£24,796 pro rata
Lunchtime Supervisor Grade 1, £24,796 pro rata Permanent, term time only, 10 hours per week 11.40 – 1.40 Monday to Friday Required from 11/05/2026   P Durham
Recuriter: Durham County Council

Specialist Autism Pathway Lead

Durham County Council
£42,057 - £51,048 plus TLR2B £5,869 and SEN1 £2,787
Specialist Autism Pathway Lead M5- UPR3 TLR2b with 1 SEN point- £42,057 - £51,048 plus TLR2B £5,869 and SEN1 £2,787 Permanent- Monday 8.45 – 4.30pm Tu Durham
Recuriter: Durham County Council
Linkedin Banner