Privatisation looms? (From Times Series)

Privatisation looms?

8:00am Thursday 27th November 2008

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Public services in the borough could face “mass privatisation” after Barnet Council unveiled controversial cost-cutting measures this week.

The range and scale of services provided directly by the authority is expected to shrink if the Conservative administration succeeds in implementing proposals outlined in the wake of an internal review.

A broad vision for the slimline council of the future was revealed on Tuesday in a report by accountancy firm Pricewaterhouse Coopers (PwC).

In May, PwC consultants were commissioned to provide solutions to help the authority contend with the rising costs of meeting its role against diminishing cash grants from the Government.

The report recommends the authority is shrunk to its “strategic core” and commissions services from “partner organisations,” claiming there needs to be a fundamental rethink on the relationship “between the local state and citizens”.

It states: “In order to maximise the value to citizens of Barnet’s public services, the council should focus its energy on the activities where it alone can add value.

“It should therefore enable other organisations to do those things that they can do as well or better than the council. Fundamentally, the council should conduct those activities that only the council can.”

Although the report only gives a broad direction for the future, and not detailed proposals, critics of the Conservative administration believe it spells a new era of privatisation that will threaten jobs, the quality of services and fiscal accountability.

Councillor Alison Moore, leader of the Labour group, said: “This has got mass privatisation written all over it.

“We were told the report would present different options for council services, but there is only one proposed option — outsourcing.

"It could sound the death knell for public service in the borough and the rise of Barnet plc.

“The danger is that local people will end up paying more for worse services.”

But council leader Mike Freer rejected the claims, saying the plans would mean interaction between other public organisations, such as Barnet Primary Care Trust, to deliver a coordinated response to the challenges they faced.

“This is not mass privatisation,” he said. “The Future Shape model has been prepared in consultation with our staff and users to see how we can deliver our services better.

"It’s about working in partnership with other public sector organisations, the voluntary and private sector to deliver excellent, good-value services to our residents, which are especially important in a downturn.”

The next stage of the project is to develop proposals with potential private, public and voluntary sector partners, at a further cost of £250,000, with PwC reporting back again next June.

A council source said the cabinet was disappointed with the level of savings offered by the proposals, prompting this second, costly stage.

The proposals will be discussed at a cabinet meeting next Wednesday. Members of the Barnet Trade Union Council will protest outside the council offices, in High Road, Whetstone, on that day.

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