REPORT TO CABINET
20 September 2005
TITLE OF REPORT: Birtley Town Council – Arrangements for Transfer of Services and Employees to Gateshead Council
REPORT OF: Maureen Kesteven, Strategic Director, Legal & Corporate Services
EXECUTIVE SUMMARY
Government ministers have accepted this Council’s recommendation to abolish Birtley Town Council, with effect from 1 April 2006. The recommendation followed an extensive consultation exercise and referendum.
Throughout the review the Council has made it clear that, in the event of abolition, it would take over all the Town Council’s employees on their existing terms and conditions and it would continue to provide the existing service from the Birtley Leisure Centre and allotments. That commitment remains unchanged. Arrangements for the transfer of the Town Council’s services, employees, assets and liabilities have now been put in hand.
Policy Context
1.
The aim is to continue to provide excellent services to local people in accordance with the Council’s medium-term objectives set out in Towards 2010. The proposals in this report also give effect to the wishes of local people.
Consultation
2. An extensive programme of consultation with local people took place between January 2001 and January 2003. Consultation with the Town Council’s workforce is in hand.
Implications
3. The Strategic Director, Finance and ICT confirms that the overall precept for Birtley Town Council for 2005/06 was £160,760 which indicates the current running costs of the Council. An analysis of the Town Council’s assets and liabilities and other associated financial issues including potential opportunities for efficiencies is currently ongoing. Following this exercise any financial implications to this Council will need to be considered within the policy and service planning cycle for 2006/07. Other implications are dealt with in Appendix 1.
Recommendations
4. The Cabinet is asked to approve the arrangements being put in place for the transfer to this Council of Birtley Town Council’s services, employees, assets and liabilities.
For the following reasons:
(i) To ensure that there is a smooth transition and that a high quality of service continues to be provided to local people.
(ii) To enable the Council to comply with its obligations under the Transfer of Undertakings (Protection of Employment) Regulations.
CONTACT: Jonathan Rew extension 2120 PLAN REF: 413
APPENDIX 1
Background
1. In 2000, Birtley Town Council decided to initiate a review, on Best Value principles, of the role and future of the Town Council. Gateshead Council officers facilitated the review at the Town Council’s request. From January 2001 onwards, extensive consultation took place with local residents through focus groups and open meetings. In November 2002 Electoral Reform Services conducted a referendum of all Birtley electors; on a turnout of just over 50%, 68.7% voted in favour of abolishing the Town Council and transferring its services, employees, assets and liabilities to Gateshead Council, and 31.3% voted against.
2. Gateshead Council then carried out a formal parish review under the Local Government and Rating Act 1997. Following the review the Cabinet agreed, in March 2003, to submit a formal recommendation to the Office of the Deputy Prime Minister that the parish of Birtley and Birtley Town Council be abolished and its services, employees, assets and liabilities be transferred to Gateshead Council.
3. On 27 June 2005 Jim Fitzpatrick MP, Parliamentary Under Secretary in the Deputy Prime Minister’s Office, announced that he had accepted the Council’s recommendation, with the expectation that abolition would take effect on 1 April 2006.
Proposal
4. In July 2002 Gateshead Council gave an undertaking that if the review of the Town Council resulted in its abolition, it would accept the transfer of the services, employees, assets and liabilities of the Town Council on the following terms:
· Continuation of existing service levels
· Transfer of employees on existing terms and conditions
· Transfer of all assets (including balances) as well as liabilities
· Existing grants to community groups to be guaranteed for 3 years, pending review
5. That commitment remains unchanged. Work is therefore proceeding to effect the abolition of the Town Council, and ensure a smooth transition of services from the Town Council to Gateshead Council, in accordance with the Council’s commitment.
6. The ODPM is preparing a draft Order to abolish the parish of Birtley and will shortly consult on this.
7. The Leaders of the Town Council and Gateshead Council have sent a joint letter to all employees to reassure them about their future. Under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) both the Town Council as the transferring organisation, and Gateshead Council as the receiving organisation, have an obligation to consult the workforce and their trade union representatives on the detailed arrangements for the transfer. Work is currently in hand on collating information on the terms and conditions of the employees concerned so that the required consultation can take place.
8. Information is also being gathered on the services provided by the Town Council, including grants to community groups, and on its accounts, assets and liabilities.
Consultation
9. As detailed above, there has already been extensive consultation with local people. Statutory consultation with the workforce and its representatives will shortly take place.
Alternative Options
10. As these proposals will give effect to the wishes of local people, no alternative options are put forward.
Implications of Recommended Option
11. Equal Opportunities Implications - Nil
12. Crime and Disorder Implications - Nil
13. Environmental Implications - Nil
14. Human Rights Implications – As the proposals in this report will ensure the continuation of existing services and employment, the human rights of individuals will not be affected.
15. Ward Implications – Birtley, Lamesley
Background Information
16. The following background information has been used in preparing this report:
· Report to Cabinet, 18 March 2003
· Report to Birtley Town Council, 26 July 2005
· Letter from Office of the Deputy Prime Minister, 27 June 2005
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