AFTER eleven years down the road and with four to go, Thurrock Council and Serco (who provided a number of services to the council) have decided to split up.
As you may know, whether it is a not so happy couple or a footballer, there tends to be a financial implication to any early release clause.
But despite a number of detailed press releases, the one detail that is missing (and yes we have asked) is the one about the money.
Some unconfirmed sources believe that the cost could be a high as £9 million pounds. Others go for a round £5 million.
Any discussion regarding the contract has been held behind closed doors.
For many, the termination brings to an end a number of contracts (Morrison, Europa) that were part of the six year reign of the Thurrock Conservatives.
The original 15-year Strategic Services Partnership (SSP) contract began in 2004, at a time when the financing of local government was in a very different position with growing budgets and before the introduction of austerity savings and budget cuts.
According to the council, it is not an appropriate form of contract to meet the current requirements of Thurrock Council in respect of the available finances or best value and the needs of a private sector partner in the current economic climate.
The termination of the SSP has been agreed by mutual consent of both partners.
Overall Serco has provided appropriate quality services, which have met the requirements of the contract which was negotiated in 2004.
Both the Council and Serco have collaborated on the exit plan to make the transition of services back to the council as smooth and as well-managed as possible.
Sean Hanson, Serco’s Managing Director for Citizen Services, said: “Serco is a leading provider of services to local authorities and is absolutely committed to providing innovative and cost effective services for its customers and over 10 million residents across the UK.
“Unfortunately this old contract with Thurrock Council was no longer fit-for-purpose and it was in the interests of both Thurrock Council and Serco to end our partnership early.
“Our teams have delivered services over the last ten years in support of local residents and I am proud of their achievements. Our priority now is to work with the council to ensure that this transition is as smooth as possible for all concerned.”
Steve Cox, Thurrock Council’s Assistant Chief Executive, said: “A world dominated today by austerity and budget cuts is very different to that envisaged in 2004 when this contract was signed and as we continue to shape a different way forward for Thurrock Council.
“Both Serco and the council came to realise this and a series of tough, but fair negotiations began, culminating in today’s announcement.
“I would like to thank the Commercial Services and Finance teams for the magnificent work they have done to get us here; and I would also like to assure Serco staff that they are welcome back into the Thurrock Council fold.
“There is a considerable amount of transition work to now be jointly undertaken and we look forward to this being completed as planned by 30 November.”
Cllr John Kent, Leader of Thurrock Council said: “There has been much comment about how the world has changed since 2004 when the contract was signed – to that I’d just like to say two things.
“First, it was the then Labour administration which opened negotiations with several organisations about a strategic partnership – they were the in-thing at the time – but I am confident we would not have negotiated such a long agreement with so little built-in flexibility – of course things change.
“Secondly, our preference was for a totally different organisation. We did not support the Tory administration’s switch in July 2004 to a single preferred bidder – down to one from three – believing this limited competition, and so it has proved.
“But what has become clear over the past few years is that the agreement this council signed up to starting on 1 April 2005 – not just a 15-year deal, but with a five-year extension – was too inflexible.
“You can’t blame Vertex, or Serco; a contract is a contract. We highlighted the risks, and as every year went on, those risks increased, and that brings me to today.
“Over the coming months we will be welcoming back Serco staff to Thurrock Council.
They’ve always been working for the people of our borough, but now that link is more direct. I am really looking forward to us having a straighter line of responsibility, of knowing that council agreed policy does not have to go through that extra, external, step.
“The last five years have not been easy for this council – or any public organisation – and this agreement will ease some of those pressures – not all of them by any means, but some.
“And finally, that leads me on to our negotiating team. Barbara Brownlee and her colleagues have done a superb job. I doubt any other people would have been able to negotiate such an excellent deal – one we as a council and representatives of local people are happy with, and one Serco are pleased with too. Well done to them.”
