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09/01/04 - Cabinet to make recommendation to Council on next stage of Construction Unit's potential externalisation

Thirteen firms have expressed an interest in running Cumbria County Council’s Construction Services business and on 13thJanuary the Council’s Cabinet will be asked to recommend to a meeting of the full Council (22ndJanuary) a shortlist of four firms to bid in the next stage in the process. 

Construction Services provide a wide range of services, such as roads maintenance, street lighting, ground maintenance and vehicle operations. It employs 400 staff and has an annual income of about £25 million before costs.

The decision to explore the externalisation of the service is part of the Council’s innovative Invest to Save and Improve Initiative – this flagship policy aims to improve service delivery and reinvest capital receipts back into improved Council services for Council tax payers.

A report to be considered by Cabinet suggests that the following four firms should be recommended to the Council to be shortlisted:

  •  Accord Plc
  •  Amey Highways Limited
  •  McAlpine Government Services
  •  Raynesway Construction

County Council Leader Rex Toft says:   

“We have seen a high level of interest from major firms across the country who are involved in the Construction business which gives me a lot of confidence in securing a successful future for the business, its employees and the people of Cumbria. This is a real opportunity for the business to build a long-term positive future, free from the restraints of operating within local government.

“The construction business provides a wide range of front line services for the County Council and its externalisation is essential if it is to flourish. Experience has shown with other businesses within local government that they need to operate freely within the market place if they are to secure long-term growth and capital investment.

“We are determined to negotiate an arrangement that protects the long term future of the business and its staff by securing the investment needed as well as providing a net significant capital receipt for the County Council, this we believe is the best way to invest in the future of the business and its workforce. 

“We have kept staff up to date about our plans all the way along and we will continue to work closely with the trade unions to ensure the best interests of the workforce are fully represented throughout negotiations.”