Council deal yields profit of �54,000
A COUNCIL'S bank account is set to receive a �54,000 boost as part of deal set up when many frontline services were transferred to a new company.Waveney District Council is in line for the windfall payment as a result of a profit-sharing arrangement set up when a contract to provide services such as bin collections, street cleaning, car parking and the upkeep of parks was awarded to Norfolk County Services (NCS).
A COUNCIL'S bank account is set to receive a �54,000 boost as part of deal set up when many frontline services were transferred to a new company.
Waveney District Council is in line for the windfall payment as a result of a profit-sharing arrangement set up when a contract to provide services such as bin collections, street cleaning, car parking and the upkeep of parks was awarded to Norfolk County Services (NCS).
As a result, a new joint venture company known as Waveney Norse was formed and a report on its first six months of operation has just been published.
The report, written by Waveney Norse's general manager Andy Wilson-Sutter, said: 'The initial partnership agreement included the provision of all of the existing services with the emphasis on providing continuous improvement over a period of years.
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'However, to provide the funding to enable this continuous improvement, it is necessary to expand the business by providing additional services to the residents and business community of Waveney.'
He added: 'Since the partnership commenced in July 2008, the company has secured �135,000 worth of new business and has delivered direct cost savings of �178,000. These direct cost savings include �47,000 on staff costs, �45,000 on procurement, �72,000 on insurance and transport, and other efficiency savings.'
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Because Waveney Norse is a joint venture company, the district council still has a direct say in its operations and can plough the profit-share cash back into services.
The transfer of services saw 192 council workers join the new company, with no redundancies.
A council spokesman said the subsequent savings on staff costs came through natural wastage and reorganisation and had not involved enforced job losses.
The Conservative-led council decided to transfer many of its frontline operations as part of its new enabling agenda to use outside bodies to provide more efficient services.
A 15-year contract worth �120m was awarded to NCS, which is owned by Norfolk County Council, and Waveney Norse started operating in July last year.
At the time Stephen Ardley, Waveney portfolio holder for health and well-being, said the deal would 'ensure continuous improvement and sustainability of services'.
However, some opposition councillors expressed concerns about bringing in an outside operator to run services.