Councils seek consultants to guide through merger process

THE joint chief executives of Rochdale and Oldham Councils have said that a new document issued for consultants to come up with structures and implement a formal merger of the two organisations is not a formal tender but a ‘soft marketing test exercise’.

Chairlie Parker and Roger Ellis said that the purpose of document’s purpose was to “seek expressions of interest from partners who may be able to support and offer their expertise in helping to deliver the joint working proposals”.

“Its purpose is to seek expressions of interest from partners who may be able to support and offer their expertise in helping to deliver the joint-working proposals.

The document states that the two organisations will retain separate political structures but is looking at integration at every other level of the organisation – from a joint chief executive’s post through its management teams and service delivery arms.

“There is limited precedent of this level of radical integration within the Local Government sector,” it states. “However, it is not unusual in the private sector where this scale of collaboration and integration takes place regularly to drive efficiency and innovation to create a competitive advantage.”

The second phase will involve the design of new management structures and governance for the combined organisation, as well as helping with its implementation. Payments would be linked “to agreed milestones and on proven delivery of agreed outcomes”.

“The figure of £20 million mentioned within this document merely refers to the anticipated savings that we will hope to make to the public purse – although we expect the actual figure to be greater than this,” the pair said in a statement.

“Any decision to proceed with joint-working would have to be taken by members of both local authorities. There is no firm political or financial commitment to anything at this stage.”

Both Oldham and Rochdale councils have announced major redundancy programmes linked to budget cuts over the past 12 months.

In February, Oldham Council announced that it is to cut around 800 jobs in a bid to shave £23m of this year’s budget and a further £15m off next year.

Rochdale Council, meanwhile, is looking to cut 750 posts in a bid to save £64m from this year’s budget. Its chief executive, Roger Ellis, has already applied for voluntary early retirement. He is one of three executive directors out of a team of six expected to leave the council, while nine of its eighteen service director posts are to be abolished.

Although there are currently only two councils involved in the project, it remains open to all ten AGMA authorities and there is the potential for consultants to advise other councils on combining functions.

Companies interested in providing consultancy services for the restructuring need to submit expressions of interest to the council by July 5. More information can be found at tendering portal The Chest – https://www.thechest.nwce.gov.uk.