Shared services do not save money
... at least in the first years
UNISON Scotland has warned that shared services will not
necessarily save local councils money, and indeed could
cost extra money in the short term.
UNISON commented on the publication of the report by Sir
John Arbuthnott that recommends Clyde Valley councils work
more closely together and share services to respond to likely
cuts in funding.
In addition the union brought Sir John and the branches
affected got together to get a clearer understanding of
his recommendations.
Mike Kirby - UNISON’s Scottish Convenor, said, “UNISON
has always been in favour of delivering our public services
efficiently, but all the evidence is that shared services
don’t deliver savings in the short term if at all.
“Indeed as Sir John points out in his report, they mean
increased expense initially as new processes and systems,
accommodation and IT have to be bought. “We are looking
at this report carefully, have produced an initial briefing
- and branches are now approaching their own authorities
to discuss their likely response. Upwards of 76,000 jobs
could be involved.”
UNISON also points out that sharing services can also mean
centralising services, and that this can remove jobs and
accountability from local people. Mike Kirby said, “We need
to ensure that increased efficiency doesn’t come at the
cost of cuts in accountability and damage to local economies.
“If roads need to be repaired in West Dunbartonshire, would
this be better decided locally or in some corporate HQ elsewhere
in the central belt?”
“Often jobs created by public services are very important
for a local economy - particularly in rural areas. There
have been examples abroad where centralisation of services
has damaged that.
“Already in the areas being discussed the percentage of
people claiming work-related benefits is almost 22%, it
is important that we don’t increase the damage that recession
has already brought to ordinary people, or add to the number
of people having to claim benefits.”
An initial briefing on the Arbuthnott report is available
at www.unison-scotland.org.uk/briefings/arbuthnott.pdf.
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