A recommendation that further consultation on proposals
that part of our transport services should be run by the
private sector was approved by the Executive at its meeting
yesterday (9 June).
Further consultation with trade unions and staff regarding the
proposed transfer of routes to the private sector will also
continue.
There are over 150 home to school routes operating in North
Somerset, these proposals would affect only 19. The rest are
already run successfully by private operators.
The proposals, under consultation, would mean substantial
savings for local tax payers, whilst still maintaining essential
services for users.
Research has shown that savings of at least 20% (£359,000 per
year) could be achieved through the competitive transfer of the
council’s home to school transport and adult social services and
housing routes to the private sector. This would mean the
transfer of some parts of the council’s Transport DSO (Direct
Services Organisation).
Recent testing of some sample routes currently operated by the
DSO, with eight private operators, has shown that substantial
savings of at least 20% can be achieved. It is not feasible for the
council to achieve similar savings by continuing its in-house
provision.
Given the financial challenges facing the council, it is
imperative that where alternatives can deliver savings, without
adversely affecting services, that these opportunities are
taken.
The Transport DSO is an in-house service which currently
costs the council £1.856m to operate.
The service currently directly employs 29 members of staff with
a further 11 employees being procured via short term or temporary
contracts.
The current service provided by the in-house team consists
of:
• 19 home to school transport routes, including
driver;
• 8 adult social service routes including 2 vehicle and
driver;
• Fleet hire administration on certain self drive
arrangements, e.g. pest control, highways;
• Courier service;
• Driver training;
• Operators licence responsibility for the council.
During 2008 a review of the DSO resulted in a planned transfer
of home to school transport routes to the private sector. The
transfer achieved savings which were incorporated into the 2009/10
budget. This year a project board has been considering options for
achieving further savings in the council’s transport
operations.
To test the market a group of seven current DSO operated routes
were selected at random and these details were supplied to a group
of eight current providers of transport in the private sector.
These operators were asked to supply their best competitive
price for operating each route, assuming routes would be let for
3-7 years as is current practice.
So far, responses from these operators indicate that an average
saving of 36% across the routes tested, with all quotes received
being in excess of a 20% saving. These savings may increase as
discounts for operators being awarded multiple routes may also
occur.
If approved, it is anticipated that these proposals could be
implemented in early 2010. This will link in with school term dates
as well.
The future of a number of residual functions, as well as the
overall management of the council transport operations will need to
be determined. These functions include the council’s courier
service and fleet hire administration.
A project board made up of councillors and officers has been set
up and will now meet regularly to progress the actions highlighted
in the report, in particular the HR issues
Discussions with trade unions will continue, in order to
implement a consultation process with trade unions and staff
possibly affected by this.
