Showing posts with label Capita. Show all posts
Showing posts with label Capita. Show all posts

Thursday, 30 May 2019

From Outsourcing to Insourcing!

THE GUARDIAN today quotes a report by the Association for Public Service Excellence (APSE) published today, shows that Stoke is far from unusual, with 77% of UK councils planning to bring services back in-house this year. And the report calculates that between 2016 and 2018, at least 220 local government contracts have been brought back into council control.

Outsourcing began under Margaret Thatcher with compulsory competitive tendering back in the 1980s and was embraced wholeheartely by New Labour. Now attitudes seem to be hardening against contracting out. “What we are seeing is a 40-year experiment in public service delivery being put under the microscope,” says Tom Sasse, a senior researcher at the Institute for Government.
The Labour party has pledged that under a Labour government all frontline services would be provided by the public sector, from railways to social care. Even the Conservative government has been forced to look again at outsourcing, renationalising probation services after outsourcing them disastrously failed. And in the NHS, the cervical cancer screening programme for England will be brought back into the health service later this year, after Capita failed to send more than 40,000 women screening invitations and reminder letters to have a smear test.

“A catalogue of failure has shown that private providers have struggled to generate profit and deliver services of the standards that the community expects,” says Paul Evans, director of NHS Support Federation.

“The rise in insourcing shows that commissioners are being forced to recognise this. Not all contracts display problems, but experience now shows that the risk is high.'
For many public sector bodies, bringing services back in-house is increasingly a pragmatic way to cut costs and improve quality. “On its own, it is not an absolute panacea, but there are significant advantages to bringing services back in-house,” says John Tizard, a former Capita executive and now a strategic adviser on public services.

According to today’s report, 78% of local authorities believe insourcing gives them more flexibility, two-thirds say it also saves money, and more than half say it has improved the quality of the service while simplifying how it is managed.
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Friday, 16 March 2018

Protesting the Chop & Sheffield's Trees

Labour Council outsources tree felling to Amey / Ferrovial*

The outsource companies currently contracted to Sheffield City Council include:
  • Amey manage the city's 'Streets Ahead' project including management of highways.
  • Kier Sheffield maintains and repairs the social housing stock.**
  • Veolia manages household waste disposal.
  • Capita provides HR, payroll and IT services for council employees. ***

*       Amey, is a subsidiary of the massive Spanish company grupo Ferrovial
**     Kier is one of the seven companies that in 2015 admitted to blacklisting building workers.
***  Capita has been compared to Carillion, and its share price has plunged from around £11 to £2 in just two years and it dropped out of the FTSE 100 last March.
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OVER 5,000 trees have been cut down in Sheffield since 2012, as part the city council's £2bn Streets Ahead project with the excuse of improving roads and footpaths in the city.

The council, which is planting sapling trees after removing existing mature ones, insists the trees earmarked for felling are either 'dangerous, dead, diseased, dying, damaging or discriminatory'.

Yet it seems many of the trees condemned by the council as 'damaging' or 'discriminatory' are healthy specimens which campaigners say should be saved.  They say that alterations should be made to surrounding pavements and roads instead.

Today an event 'Get Off Our Tree!' is being held at Sheffield City Hall.  Also playing are local artists The Everly Pregnant Brothers, lead singer of Reverend and the Makers, Jon McClure, and former Pulp drummer Nick Banks and the Compare is Jason Cocker , who was interviewed on Radio Four's 'Today' program.

These are just some of Sheffield’s tree protesters, members of local groups coordinated by the Sheffield Tree Action Groups (Stag), which are claiming that this is another example of local government gone wrong.  Stag have made it their mission to protect the trees from council-backed felling crews in what is often hailed, with more than a pinch of Yorkshire hyperbole, as Europe’s greenest city.

Labour Council's PFI Contract

The fellings are part of a 25-year, £2.2bn Private Finance Initiative (PFI) contract.  Signed in 2012 between the Labour-led council and a private company, Amey, the Streets Ahead programme is intended to upgrade 'the condition of our city’s roads, pavements, streetlights, bridges …'  –  no small feat in a place that was known as 'pothole city'.

The contract has serious implications for the city’s 36,000 roadside trees, which have in effect been privatised until the late 2030s. Amey, a subsidiary of the massive Spanish company Ferrovial, has so far removed around 5,350, including oaks, elms and limes. Alison Teal, a local Green party councillor, believes she knows why many were chosen:  'I can only assume that because it’s a 25-year contract, they’re felling mature trees because they are more expensive. They cause pavement and road disruption and a hell of a lot of leaves fall off them.'

Loose and wonky kerbstones and cracked pavements owing to tree roots are among the reasons given for the fellings.  But there is a belief among the Sheffield protesters that the 14 alternatives priced into Amey’s contract – from flexible paving to root pruning and pollarding – are being underused.

The council says it only resorts to removing trees if they are 'dangerous, dying, diseased, dead, damaging or discriminatory' (meaning that they damage pavements and potentially obstruct disabled residents).  Of the eight mature limes destroyed on Rustlings Road, however, the council’s own independent tree panel found that seven were in good condition with a good life expectancy.

The heavy redaction of the contract between Amey and Sheffield council doesn’t help clarify things.  With many details kept from the public in the name of 'commercial confidentiality', there is no way of verifying, for instance, the council’s warnings of “catastrophic financial consequences” if the fellings are delayed.  The gaps leave room for conjecture about why the PFI deal isn’t being called off, or its terms renegotiated.  Protesters think they have found legal reasons that would allow the council to annul the contract – a recent petition focuses on Amey’s alleged failure to disclose a 2011 health and safety conviction following the death of an employee.  A council spokesperson said it was aware of the death before the contract was awarded, but it failed to provide written evidence of that knowledge in response to Freedom of Information requests made by campaigners.


 Thatcherite Law Used by Labour Council

Many cite “the battle for Rustlings Road” as a turning point – following a pre-dawn raid and scenes that the former local MP Nick Clegg described as “something you’d expect in Putin’s Russia”, pensioners were arrested for peacefully protesting. Eight trees were chopped down.
It has been a long and gnarly road to today’s situation, with frustrations running high.  In 2016, arrests of peaceful protesters started under the 1992 Trade Union and Labour Relations Act, which criminalises anyone who persistently stops someone from carrying out lawful work – in this case, tree surgeons contracted by Amey.

'We have the harsh irony of Thatcherite anti-union law being used by a Labour council against its own citizens,' says Ian Rotherham, professor of environmental geography at Sheffield Hallam university.  'Only about 30 years on from Orgreave, our local councillors seem to not see the bitter twist in all this.'

We have the harsh irony of Thatcherite anti-union law being used by a Labour council against its own citizens.

None of those arrested have ever been prosecuted, however, with the Crown Prosecution Service saying there was insufficient evidence.  Then, last summer, the council brought an injunction against nine named protesters – including the Greens Alison Teal, and Brook, as well as 'persons unknown'.   It prohibits protesters from entering safety zones around condemned trees, or encouraging others to do so, either on social media or in person.

Labour's 'One Party State' !

In Ms. Teal’s opinion of local democracy is low – and no wonder, after a year in which the council on which she sits took her to court for breaking the injunction, only for the case to be thrown out'This is a one-party state,' she says. 'Sheffield has 84 councillors; 56 are Labour.  They can’t be outvoted.'  She mentions Nasima Akther, a Labour councillor who defied the whip to abstain on a vote about the fellings.  'For her courage she was suspended from the party.  It’s bullying and she subsequently resigned.'
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Wednesday, 31 January 2018

THE WORSHIP OF DIVIDENDS

Dividends:  Holcroft Castings to Carillion & Capita  

 George Orwell said, I believe it was in 'The Lion & the Unicorn',
that 'England is a family with the wrong people at the top'.  
 The kind of people he had in mind were those who
spent their lives 'living off their dividends'.
IN the early 1980s, I was an electrical shop steward at Holcroft Castings & Forgings in Rochdale, which was in turn part of the Reynold Chain PLC group, and armed with a report from the Labour Research Department, I went to a meeting of shop stewards with middle management, and I questioned the high dividends being paid to shareholders by the company.  After an outburst from one manager called Eric Huff, the chair of the middle managers a bloke called Tommy Swan said that as he didn't understand 'dividends' he wasn't prepared to discuss them in the context of our pay claim.

Today, it is the reduction of shareholder dividends to a fetish that is being blamed for the collapse of Carillion, and the danger to business generally is now being blamed on the culture of the glorification of dividends.  

Last Saturday, in the FT, Miles Johnson wrote an article entitled 'Carillion collapse offers warning to dividend fetishists', arguing:
'Like many companies listed in the UK, Carillion held up its dividend payments as evidence of success and corporate virility.  In its 2016 annual report, the group finance director Zafar Khan boasted how "the board has increased the dividend in each of the 16 years since the formation of the company in 1999".'

No doubt it was this kind of smoke and mirrors that deluded the leader of Tameside Council and chair of the Greater Manchester Pension Fund, Kieran Quinn, into thinking that Carillion had the Midas touch and could do no wrong.  Certainly his bedazzlement with dividends can only explain his overwhelming passion for Carillion, which led him last August to urge other councils in Greater Manchester to engage more closely with the now derelict company?

Capita cuts Carillion risk by suspending dividends

This morning  in the FT the journalist Matthew Vincent writes:  'Capita copies Serco to avoid becoming Carillion'.

This morning the FT journalist Matthew Vincent asks:  ' 'What’s the most frustrating job in corporate Britain today?'

Then he answers his own question:  'Apart from middle manager at Carillion asking why on earth did the directors keep bidding for contracts?  And keep overlooking the pension deficit?  And keep reassuring the so-called auditors?  Arguably, it’s middle manager at any other UK outsourcer, trying to address similar questions.' 


Today his FT report continues:  'Capita [which today has] issued a profit warning for 2018 and new chief executive Jonathan Lewis - who only started in December - admitted that the outsourcing group had become “too complex” and “driven by a short-term focus” while “lacking operational discipline and financial flexibility”.  Mr Lewis has therefore suspended the dividend - a source of anger over misplaced priorities at Carillion - and instigated an overhaul of Capita’s finances.  This will involve sales of non-core assets and a emergency rights issue to raise as much as £700m from investors later this year. That is even bigger than the £500m fundraising needed at rival Serco a few years ago.  Dividends will not resume until the company is “generating sustainable free cash flow”,'

We all should clue-up on the dangers of overgenerous dividend payments and what is called 'short-termism' in the boardroom.  We shouldn't be like the middle manager Tommy Swan, who I knew as a shop steward while negotiating wages etc. at Holcroft Castings in the 1980s, and who seemed positively proud to not have grasped what shareholder dividends were.
 https://www.ft.com/content/f9a21332-065b-11e8-9650-9c0ad2d7c5b5
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