Wednesday, 07 January 2009

Keep shared chief executive, councils told

A CONTROVERSIAL decision by Allerdale council to employ a part-time chief executive should be a permanent arrangement, say consultants.

LEADER: Allerdale’s Coun Joe Milburn

The authority came under fire from opposition councillors earlier this year for employing Carlisle City Council boss Maggie Mooney as its part-time temporary chief executive to replace outgoing chief executive Gillian Bishop.

Ms Mooney is contracted to Allerdale until February.

The councils commissioned Serco Consulting to undertake a six-week review into the shared leadership.

Its report to the councils said the preferred option was to carry on with the arrangement.

It added that the councils should merge its management teams to save about £1.1 million a year.

It said: “Placing the current arrangement on a permanent basis would save over £166,000 in year one and a recurring £116,000 per annum thereafter.

“We recommend that the two authorities, while retaining their distinct sovereignties, and remaining open to collaboration with other councils in Cumbria, should agree a joint reform programme for the next two years.

“The merged senior management team would secure an annual saving of more than £1.1 million.

“To ensure this, the authorities should make appropriate provisions for redundancy and early retirements.

“This option could be the most attractive from the point of view of both authorities on a range of grounds.”

The 82-page report added that cutting jobs would help both councils save money.

It said: “This is essential for the viability of both authorities, which are currently high cost relative to benchmarks and have issues of over-staffing.”

Consultants said neither council performs well on financial management and both have been criticised over costs in their audits.

It added: “The primary reason however for the authorities’ ongoing issues around cost concerns staffing levels.

“While Vale of White Horse District Council with a population of around 116,000 employs fewer than 400 staff, Allerdale has 415, while Carlisle has 824.

“Allerdale members are aware that drastic reductions in staffing numbers are needed unless balances are to be eroded.

“Carlisle has attempted to address its financial challenges but is on course to miss its targets substantially, leading either to balance erosion or service cuts.

“There is no prospect of government largesse for the foreseeable future.

“In short, without a radical reconfiguration of how both authorities provide services, including more realistic levels of staffing, they will continue to face annual fire-fighting and death by a thousand cuts.”

The report, including the future of the £130,000-a-year chief executive position, will be discussed during a special full council meeting on January 13.

Allerdale council leader Joe Milburn said: “We have received Serco Consulting’s recommendations, which we now need to consider and discuss. No decision has been made at this stage.”

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