Agenda item - Special Needs Transport 3

Report of the Corporate Director of Children and Families.

RESOLVED: That

(1) the provision of special needs transport services, to include all routes to and out of borough schools and colleges and in-borough mainstream schools and colleges, be further outsourced;

(2) in the event these measures do not achieve the necessary savings as set out in the report, the Corporate Director of Children and Families, in consultation with the relevant Portfolio Holders, be authorised to make a decision to fully or partially outsource the transport arrangements for one of the special schools, most probably Shaftesbury High School;

(3) the letting of a second transport provider framework contract to allow new providers to assist in the outsourcing referred to above be agreed.

Reason for Decision: The Council had set a two year balanced budget that addressed the loss in government grants and safeguarded essential front-line services. Harrow Council has listened to the views of service users, staff, stakeholders and trades’ unions in altering plans from a full to a partial outsourcing. The Trade Union, Unison, has produced an alterative proposal that officers have analysed and discussed in detail which has in part enabled a recommendation to be made to Cabinet.

If the service was to be externalised to a larger extent, a second framework would be needed to provide resilience in the supply chain, sustainable growth in small suppliers and the inclusion of more local and community based organisations in future transport provision.

Alternative Options Considered and Rejected: As set out in the report.

Conflict of Interest relating to the matter declared by Cabinet Member / Dispensation Granted: None.

Cabinet received a report of the Corporate Director of Children and Families, which set out the results of the consultations with staff, service users and trade unions on the proposed changes to the Special Needs Transport Service. The intention was to let a new framework contract for transport provision.

The Portfolio Holder for Children, Schools and Families introduced the report and informed Cabinet of the consultation process undertaken following the referral back by the Call-In Sub-Committee of the initial decision taken by Cabinet in April 2013. As a listening administration they had worked closely with the Unions and staff with a view to reviewing the original proposals and she thanked the Unions for their contributions to the process, including their draft proposals. The Portfolio Holder outlined the saving that would be achieved and referred to the further possible outsourcing.

The Divisional Director of Special Needs Service referred to the comments of the Portfolio Holder and the amended proposals following consultations. He too outlined the need for further outsourcing should this become necessary if the required savings were not achieved.

A non-voting non-Executive Cabinet Member referred to the lamentable consultation and asked why the initial consultation had been poor. He questioned whether the outsourcing would be on a rolling basis. In response, the Divisional Director stated that the outsourcing would take place over a couple of years but the detail needed to be defined. He added that the framework under which the outsourcing would operate would be published, subject to the rules of procurement. It would also be guided by how the families chose to use the services.

The same non-voting non-Executive Cabinet Member asked why partial outsourcing had not previously been considered, as it generally helped retain expertise. He also asked if the final outcome had changed since the consultations. The Member was of the view that it would have been helpful if opportunity costs had been included in the report together with how the concerns of staff had been addressed in relation to their transfer under TUPE. He asked if the process would create resilience in the supply chain and whether it would be advisable to do this now. He also expressed concern about the impact of the proposals on the vulnerable.

The Divisional Director and the Corporate Director of Children and Families replied that, on reflection, the initial consultation had been rushed and the report considered in April 2013 ought to have been postponed to a future Cabinet meeting. The fundamental difference between the two reports was an agreed way forward on a partial outsourcing, which had involved work with the Unions and schools. This was underpinned by the need to ensure flexibility to meet future needs. Together with the Portfolio Holder, the Corporate Director, informed Cabinet that safeguarding of children was an important issue and priority and that, in Harrow, ‘quality’ checks had been instigated. The safe transport of children was imperative and a quality service needed to be in place in order to meet the standards set. In relation to staffing issues, extensive discussions had taken place and a variety of different concerns had been discussed with staff. The arrangements under TUPE would apply but other avenues were being explored.

The Divisional Director added that partial outsourcing would lead to a change in the nature of work which would become more focused on monitoring external providers but it was not expected that work would increase. The business case outlined the savings to be achieved. With any change programme, officers worked initially with estimated figures and, if savings were not achieved, a decision on outsourcing the transport arrangements in relation to Shaftesbury School would need to be considered.

The Corporate Director informed Cabinet that the existing high quality service was valued by the users but her Directorate had to identify savings. Work with a number of key providers was underway.