Cabinet to recommend next stage of externalisation of Construction Services Unit

Cumbria County Council's Cabinet has agreed to seek expressions of interest from potential purchasers for the Construction Unit of Cumbria Contract Services, an in-house business. The decision is the next step in the Council's Invest to Save & Improve initiative and follows a decision by the County Council in September 2002 agreeing that work be done on a potential externalisation of the Unit. If this ultimately results in a sale of the Unit then it is expected completion would be by July or August 2004. A sale would represent a real opportunity for the long-term development of the business given trading restraints placed on it by being within Local Government. As part of any sale, the Council would expect to enter into a detailed contract with the purchaser to protect the quality of work undertaken for the Council and to ensure value for money. 

County Council Leader, Rex Toft, explains the position regarding the intended externalisation: 

"We have for some time, through the Invest to Save & Improve programme, been looking at the potential sale of the Construction Unit business. Cabinet will recommend to the next meeting of the County Council on the 24th July that we look in detail at how the sale can be progressed and seek tenders from interested bidders. Matters are at a very early stage at present but the best interests of employees will be important in how we develop any eventual sale and contract. 

This approach is a real opportunity for the business to build a long-term positive future, free from the restraints of operating within Local Government, and that must be in the best interests of employees, the local economy and taxpayers. 

The Construction business provides a wide range of front line services for the County Council such as roads/maintenance, street lighting, grounds maintenance and fleet operations. As experience has shown with other businesses within local government they need to operate freely within the market place if they are to secure long-term growth and capital investment. 

If we can negotiate a sale that protects the long term future of the business by securing the investment needed as well as providing a net significant capital receipt for the County Council; and through a contractual arrangement that protects our staff and the quality and value for money of services delivered by the new purchaser then we will be acting in everyone's interest."