Could County Hall become a super-centre?

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Monday, February 08, 2010
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This is Nottingham

NOTTS County Council could become a "super-centre" for office work currently done by other local authorities.

The move would see the county take on human resources (HR), finance and payroll tasks from other authorities – and some believe this could pave the way for local authority mergers here.

The departments which deal with HR, finance and payroll still rely on paperwork but would be updated with the latest computer software if changes are agreed.

Some £8.3m has been put away by the county council to cover the so-called "change programme".

The plan should ultimately save money for every local authority involved – but this could come at the cost of jobs.

There would be demolition work at County Hall to create open-plan offices in the main building.

The idea was floated after the authority halted plans to share back-office work with Leicestershire County Council.

Tim Gregory, County Hall director of corporate services, denied the latest plan were a step towards unitary status, or mergers, in Notts.

He said: "We are convinced that we have to change our business systems. Our HR system and finance is antiquated.

"We are one of the few local authorities that has not done something about its business systems.

"Nearly all of the big authorities have had to move towards this.

"It is not as if we can continue as we are. We are very, very old-fashioned. We have got to find a very significant amount of money. We have got to improve the organisation and drive out cost.

"I would like to be able to offer services to other people but I don't think our systems are strong enough.

"We have not got to the point of making that decision. We will be putting more detail on the council papers later."

He said: "There will be further job changes in subsequent years. These changes will be part of those indicative numbers.

"It will impact on the way we manage the business across the whole organisation."

Council chief executive Mick Burrows said: "We need to invest to save. This means spending now to save on our annual running costs over the next few years and beyond.

"We are initially proposing to allocate £8.3m. The programme will directly affect the way we work, how we operate as a business and how we will provide services in the future.

"The main costs will be for staffing, the purchasing and implementing of new financial, IT and human resources systems and an internal staff restructure."

Lib Dem leader Coun Jason Zadrozny said: "It is one of those ideas that sounds very good, if it's about sharing services – but whether it is deliverable is questionable.

"They may make savings but they don't know by how much.

"I think it is unlikely that this is a step towards unitary status by the council but it would make it easier if unitary status was on the agenda."

chris.birkle@nottinghameveningpost.co.uk

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  • Profile image for This is Nottingham

    by mr glum, on me bum

    Monday, February 08 2010, 11:05PM

    “shouldn't that read "SOUP CENTRE"? they'd even mess that up!”

  • Profile image for This is Nottingham

    by Albert, In the Bunker

    Monday, February 08 2010, 6:05PM

    “Dave,

    There are many examples of where outsourcing goes wrong.

    A particular case being a major UK company who outsourced their HR. It now costs them at least £9 for each phone call just to report a person going on sick leave. They tell their own managers to deal with things in-house, and not to ring the outsource HR company to save money!

    Discipline cases can easily clock up bills in the thousands, training costs have gone through the roof, but the HR company managed to get their client locked-into a 10-year contract they cannot escape from.

    Then there are the companies who outsourced payrolls, and who have seen names and bank details being sold-on. Would you trust a company who did this with your details? And bear in mind that many of them use cheap labour in other countries to do all the processing. so no gain in jobs in this country either.

    Better to get the councils to pool resources and do it themselves. They could add in centralised purchasing, like ESPO do for other councils, and save a few more quid that way.”

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    by Sarah, Nottingham

    Monday, February 08 2010, 4:49PM

    “Its all politics at the end of the day, the Tories get in and all of a sudden eveythings out of date. Well thats not what the independant Audit commission said when they classed it as a 4 Star Authority last year.

    Lets also not forget it was the previous labour regime that first proposed outsourcing and the last review of local goverment was carried out by the last conservative goverment who implement the current structure in Notts. As regards outsourcing HR, Finance and payroll to the private sector well the experience of places like Lincolnshire CC would suggest the grass is not always greener”

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    by dave, south of the river

    Monday, February 08 2010, 2:18PM

    “So, they don't have the technology or other infrastructure, their skills are probably equally back-level (out of date) but they expect to be able to create a cenre of excellence for other authorities to use. Whilst this is possible, I don't give it much chance of success. Better to outsource these "shared services" e.g. H, Payroll and IT to the private sector who are already set up to do it - this is increasingly normal practise in industry. Local authorities are there to provide services to the community, not to become major services employers.”

  • Profile image for This is Nottingham

    by JB, Ashfield

    Monday, February 08 2010, 1:37PM

    “Oh well, at least we know what the budget is all about now. They need the money to create bigger offices for themselves.”

  • Profile image for This is Nottingham

    by Nick, Notts

    Monday, February 08 2010, 11:30AM

    “Time for the proper reorganisation of local Government in the county. The conurbation to be a greater Nottingham unitary authority and everything else in the county to be unitary. Savings on loads of levels and some chance of proper representation for those "county" areas of the conurbation. This was proposed by David Kirkham some time ago and seems like good common sense.”

  • Profile image for This is Nottingham

    by Pete, Red Dear AB

    Monday, February 08 2010, 9:33AM

    “DEPORT THEM!”

  • Profile image for This is Nottingham

    by Albert, In the Bunker

    Monday, February 08 2010, 9:19AM

    “It makes sense to do away with duplication on a local level, when it's our money that is funding it. Centralising common functions like this could achieve an economy of scale that would reduce costs without any impact on services.

    But I'm gobsmacked to read the claim that "HR, finance and payroll still rely on paperwork", considering how many years the councils have had computer systems in place.

    I know the wheels of local government move slowly, but they've had over thirty years that I know, of to move basic stuff like that from paper onto computers.”

  • Profile image for This is Nottingham

    by Mr. Sensible, The Real World

    Monday, February 08 2010, 8:07AM

    “So much for more local democracy...”

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