New deal for Joint Venture contract

LIVERPOOL City Council is set to refresh its Joint Venture contract with BT after securing an improved deal.  Liverpool Direct Limited was formed in 2001 and runs the City Council’s ICT service, contact centre, One Stop Shops, together with Human Resources and Payroll, the revenues and benefits services, and the social care service, Careline.

In June 2010, Council Leader Joe Anderson challenged BT to bring forward proposals to refresh the contract, specifically taking into account:-

► The significant financial challenges facing the city

►  The creation of employment opportunities for local people

►  Providing support for deprived communities

The council carried out a detailed Value for Money review which concluded the joint venture provides very good quality services and that the cost is not unfavourable with others, although benchmarking was not easy due to the innovative nature of the contract.

Following months of detailed and intense negotiations, and an evaluation of the refresh proposal by independent auditors Ernst and Young, the Cabinet will be asked to approve the final offer at a meeting on Wednesday, 29 June 2011.

In addition to a £9 million discount on the cost of the contract and £17.5 million of investment in ICT, BT has agreed to spend £18 million on a number of projects which will create jobs and fund housing and social care projects between now and 2017.

The key points of the proposal are:-

►  £1 million per year for an Apprenticeship Fund, which will generate up to 65 posts annually. They will be 2 or 3 year contracts and aimed at local residents, graduates from the city’s universities or those returning home from other higher education establishments.

►  A total of £12 million to support social care, social housing or community development between now and 2017 (£9 million from 2012-2015). The council will decide where and how the money is spent, and it can be match funded.

►  A price reduction on the contract of £9 million phased between 2011 and 2017, which the city council can direct to other priorities. This is made up of £2 million for 2012/13 and £1.5 million for the remaining years.

►  A share of third party business generated by the partnership for the city council, estimated to be worth £1 million, including payment of money already generated.

►  Sponsorship of £1 million over the remaining contract period for a city council project. For example, BT currently sponsor the Convention Centre in a deal which ends next year in 2012.

►  £17.5 million to be invested by BT in ICT improvement projects such as replacement computers, software system improvements (for example in adult services) and website improvements.

In addition, £100k will be spent on community initiatives, and BT will write off potential legal contractual claims they estimate at £56 million, eg:- non-payment of money they have spent on systems and areas of business that weren’t transferred into the contract which formed part of the original 2001 agreement.

Council Leader Joe Anderson said:- “This is a contract that was not of our making, and one of the first things I did when I became Leader was review it and ask BT to come forward with new proposals to rebalance it and make it more of a genuine partnership.  I was pleased with their positive response, and am satisfied that the proposed deal will see us get a better deal for council tax payers.  This is not just about getting cash savings and improving services, but also creating additional opportunities which will benefit the city at a time when our budget is under extreme pressure due to severe spending cuts from central government. I am therefore pleased that the deal addresses our priorities as an administration, including the creation of hundreds of apprenticeships and funding for social care, housing and community projects which will genuinely make a difference to the lives of many in our city.  This marks a fresh start for our relationship with BT, and I am committed to making sure the whole council is able to continue scrutinising the partnership to make sure it delivers for Liverpool.”

Governance of the partnership will be strengthened in the council’s favour, with the local authority increasing its shareholding from 19.9% to 40%.  The number of council directors on the Board will be increased from 1 to 3 including an independent non-executive director, and a partnership framework will be created to make sure there is an effective working relationship.

New targets will also be set, including an aim of 98% of customers having their problems resolved first time when they visit a One Stop Shop, and a target of answering at least 90% of calls to Careline.  Improved council tax collection and individual corporate debt collection rates will also be set, and it is estimated these and other targets will generate an extra £10 million per year for the council.

Deputy Council Leader and Cabinet member for Finance, Councillor Paul Brant, said:- “Liverpool Direct was not our creation, and in opposition I was keen for the contract to be opened up to more scrutiny as I believed it could deliver better value for money.   We have used the last year to work with BT in a positive manner to negotiate some significant changes which have reassured me that the contract is now more open and transparent.  We have also sought independent advice from auditors to make sure that we are getting a fair deal.  I am confident that this is a good outcome, given the situation we inherited and the current financial climate.”

The joint venture contract is due to end on 31 March 2017.

Email our news room with your views on this to news24@southportreporter.com and let us know what you think about this deal.

Highways Agency and North West Traffic Commissioner join forces to tackle litter on region’s motorways

THE Highways Agency has stepped up its campaign to keep motorways and major A roads free of litter. In a new initiative, the Agency has teamed up with HGV industry regulator - North West Traffic Commissioner Beverley Bell - to encourage commercial vehicle operators to ensure their vehicles do not spill litter or debris on to the roads.   HA Traffic Officers and contractors will report any incidents to Mrs Bell who will then warn the operators that their licences could be at risk if their loads are not secured properly.   The initiative could be rolled out across England if it proves to be a success in the North West where last year more than 66,000 sacks of rubbish were collected from motorways.  Roads Minister Mike Penning said:- “Litter on the motorway and trunk road network is a serious issue. Not only is it unsightly it can also be very dangerous for road users. I am pleased that the Traffic Commissioner and the Highways Agency are working together to help tackle this problem in the North West and make journeys and the local environment more pleasant.  Motorways are our safest roads but picking litter from them safely and without having to disrupt traffic is not straightforward. The simplest – and cheapest - solution would be if the rubbish wasn’t dropped in the first place, and I’d urge all motorists to help keep our roads clean.   I also urge the public to report to the Highways Agency (0300 123 5000) any instances of litter being spilled from vehicles, such as lorries carrying skips, on motorways and major A-roads."  North West Traffic Commissioner Beverley Bell, said:- “A major aspect of my role is to ensure that road users, including drivers of heavy goods vehicles, can use the roads safely. As a regulator of the HGV industry, my primary concern is to ensure that drivers and operators demonstrate the highest standards of safety and compliance.  I fully support this initiative for Highways Agency Traffic Officers and contractors to report instances where the drivers of commercial operators have not ensured that their loads are secured effectively and I urge all operators to remind their staff of the safety implications of such incidents. Operators and drivers who are reported to my office may find themselves subject to consideration of disciplinary action.”  A-one+, the Highways Agency’s contractor for south Lancashire, Merseyside, Greater Manchester and Cheshire, is responsible for removing litter and debris from the motorway network on behalf of the Agency. Last year it collected more than 66,000 sacks of rubbish from motorways in the area – much of it shed by commercial vehicles.   Brian Statham, General Manager for A-one+, said:- “Not all roadside litter is casually thrown out of car windows. A large amount of commercial litter is blown from the back of large goods vehicles. Typically, we see large pieces of polythene, plastic and polystyrene wedged in trees and bushes, but there could be serious safety implications if a piece of this material caused other vehicles to swerve or brake suddenly.”

Brits walk a financial tightrope

48% of UK consumers would not last longer than 3 months on their savings if their income suddenly stopped.  The YouGov plc survey, commissioned by Paymentshield, demonstrates a precarious approach to financial planning and highlights the need to implement a financial contingency plan to cover the basic monthly outgoings.   When asked, Brits said they would need on average £875 per month to cover outgoings. However, the weekly job seeker’s allowance for over 25’s is £67.60, highlighting a £605 shortfall in cash each month.  Neil Galjaard, insurance director at Paymentshield, said:- “The survey highlights a worrying trend of UK consumers disregarding their financial future. In today’s climate, this lack of forward planning could land many people in financial hot water if the worst was to happen. Our survey also highlighted only 4% of Brits have income insurance, which combined with the lack of savings, suggests many have no safety net in place at all, and are simply relying on job seeker’s allowance to support them if their savings ran out.”  Galjaard, continues:- “Consumers need to protect themselves, as burying their heads in the sand won’t help. With savings at a low, Brits need to consider alternative measures, such as income protection, to ensure they can cover their monthly outgoings if their income stopped out of the blue due to sickness or redundancies.”

Wow! What a Festival!

OVER| 10 days, with 15 events, in 9 venues and over 3000 people made for one amazing festival.  Audiences at this year’s Prescot Festival were treated to a variety of highly successful events, two of which sold out in advance for the first time in the Festival’s history.  The 7th Annual Prescot Festival of Music and the Arts was the best yet with half the evening events reaching capacity. The Opening Night Barn Dance was a sell out, as was the rare screening of Willy Russell’s ‘Our Day Out’. Prescot Methodist Centre was full for Friday Night is Music Night with L’Orchestra Dell’Arte and bursting at the seams for Bentley Operatic Society in Concert.  At the Parish Church events were no less popular – over 60 singers joined forces to perform excerpts from Haydn’s Creation as part of the Prescot Festival Chorus and the church was once again filled with song when the audience joined in with Liverpool Male Voice Choir for the Last Night of the Proms style Festival Finale. The regular Acoustic & Open Mic. Night and the Schools’ Verse Speaking Festival were popular choices too. New Music was also part of the Festival with Artistic Director Robert Howard’s new setting of the Magnificat and Nunc Dimittis being premiered as part of Choral Evensong. Together with many other new pieces, Robert also had his composition, Journey, premiered at the Notes from a New Era concert.  The Prescot Festival of Music and the Arts was founded by composer, musician and teacher Dr Robert Howard in 2005 as a way of celebrating Prescot’s rich historical and cultural heritage. “It’s been an incredible Festival with advanced ticket sales  being better than ever. We’re fortunate to be able to offer such an affordable Festival which makes all the difference, especially in today’s economic climate.” said Robert.

Plans are already underway for next year’s 8th Annual Prescot Festival of Music and the Arts which will take place from Friday, 15 June 20011 to Sunday, 24 June 2012. Full details will be available on the official website, nearer to the time.