Agenda item

Mr N J C Chard, Cabinet Member for Finance, and Mr K Harlock, Director of Commercial Services, will attend the meeting from 11.30 am to 12.30 pm to answer Members’ questions on this item.

(1)       The Committee welcomed Mr N J C Chard, Cabinet Member for Finance, and Mr K Harlock, Director of Commercial Services, to the meeting.

(2)       The Chairman stated that, in addition to the briefing note that had been provided by the Director of Commercial Services, he had received and circulated documentation from the trade unions to Committee Members.

(3)       In response to a question from the Chairman, Mr Harlock stated that the total number of deliveries that could be made from the West Malling Depot dropped significantly once drivers had to go beyond the boundaries of Kent and, in particular, through the Dartford Tunnel and into Essex and beyond.  He stated that it was not the intention to use a third party carrier for a delivery that was just over the boundary of Kent but that the outsourcing of deliveries further afield had become necessary to enable the Council to keep to its target of making deliveries the next day.

(4)       In response to a question from Mr Smyth, Mr Harlock stated that a great deal of work had gone into preparing the specification for the outsourced deliveries and he was confident that the third party provider would be able to perform well in relation to next day delivery.  He added that customer satisfaction remained an essential aspect of any outsourcing and he assured the Committee that he would deal effectively with any complaints from customers about poor customer service.

(5)       In relation to a further question from Mr Smyth, Mr Harlock explained that the negotiations and discussions with affected staff had been carried out in accordance with KCC procedures.  He added that the new arrangements were due to commence on 1 June 2008 and that TUPE applied to the affected staff.

(6)       Mr Chard stated that there were enormous practical and environmental benefits for the proposed outsourcing.  He assured Members that the specification for the new arrangements was robust, a clear risk analysis had been completed, all of the relevant negotiations with affected staff had been carried out in accordance with KCC procedures, TUPE applied to affected staff and there were no compulsory redundancies.

(7)       In response to a question from the Chairman, Mr Harlock confirmed that consultation with Members had been minimal as the proposal was regarded as “business as usual” in accordance with the business plan for Commercial Services.  He added that he was a supporter of in-house provision, where appropriate, and that he would have retained this particular service in-house if it could be justified in value for money terms.

(8)       In response to a further question from the Chairman with regard to the environmental aspects, Mr Harlock confirmed that the outsourcing of these services would result in a significant reduction in carbon emissions, possibly up to 60%, although he accepted that this calculation had been made on the basis of a number of assumptions.

(9)       In response to further questions from Members about the affected staff, Mr Harlock confirmed that discussions were ongoing in the lead up to the introduction of the new arrangements in June and that staff would be offered support beyond that.  The Chairman expressed his gratitude that staff were being kept fully informed.

(10)     RESOLVED that:-

(a)       no comment be made on the specific decision relating to the outsourcing of delivery services beyond the boundaries of Kent;

(b)       the Corporate Policy Overview Committee and the Informal Member Group on Budgetary Issues be asked to monitor the activities of Commercial Services in relation to the objectives and targets contained within their business plan, together with issues relating to customer satisfaction and value for money;

(c)        the Director of Commercial Services be commended for achieving increased income for the Council, helping to keep the cost of Council Tax down.