Biggest cuts in 30 years

Parker: The borough has improved, but there’s a long way to go

IN THE HOTSEAT — CHARLIE PARKER

PART Two of our major question and answer session with Oldham Borough chief executive Charlie Parker. See http://www.oldham-chronicle.co.uk/news-features/8/news-headlines/52295/proud-of-oldhams-progress for part one, yesterday.


Q Can Charlie confirm that OMBC intend to follow the directive from Central Government to make realistic savings rather than implementing additional cost hardship on local residents to plug budget deficits?

A ALL the budget proposals currently under consideration follow an in-depth examination of all our services. The first set of these — known as Tranche 1 — have all been subject to scrutiny and public consultation.

These are fully robust and capable of being implemented in full. Tranche 2 savings were subject to scrutiny last week and public consultation regarding these is ongoing.

Oldham Council has a proven track record of delivering very significant financial savings in the last two years and will need to do so again in the next financial year and beyond. As far as possible we will prioritise continued investment in frontline services and ensure that budget proposals are realistic and achievable with the objective of protecting the vulnerable members of our communities, but we also need to be realistic.

This year’s reductions are the biggest in more than 30 years and, as a result, Oldham Council will need to do things differently.



Q IS it not an indictment of the council’s ability to manage effectively that savings can be made by subcontracting a service to a profit-making organisation?
A The council is robustly reviewing all of its traded services to ensure that they are fully recovering their costs. Through our value for public money programme we are also challenging and reviewing a wide range of services to ensure they represent best value to the council tax payer.

As part of this continuous review working with the private sector can bring additional innovations, capacity and expertise, and we’re fully committed to examining all options that can drive down costs and improve services.

Sometimes, however, the private sector doesn’t deliver either improvements or save money — and we are wise to that. Witness what happened with our street refuse collecting service in the past, for example.

After taking this service back in house, the council has shown it can provide a better and cheaper service. This is very much a process of evaluation and picking horses for courses. Members are not wedded to one option.


Q HOW many directors are to be made redundant during these cuts? If not why not and will they be taking pay cuts?
AWE are aiming to make £1 million in savings at senior leadership level in the council and this will mean making some redundancies. Given the scale of the funding challenge we are facing, colleagues at every level know difficult times lie ahead.

We must inevitably reduce our staffing at all levels across the authority. There is also a pay freeze across the entire public sector for both 2011-12 and 2012-13. I have already reduced the number of executive directors from six to four and — with the forthcoming retirement of Veronica Jackson — the council will also not be directly replacing that particular post.


Q HOW much will the council have to borrow in order to pay their redundancy packages and what will be the total cost of the redundancy payout be to the Oldham taxpayers? How much will need to be borrowed and how long will it take to pay back this amount?


A The gross estimated cost of the redundancies was originally £18.7 million. However, the council doesn’t borrow for specific items — it borrows according to cash need and operates within agreed borrowing limits which are set down by legislation. Until all of our budget proposals have been approved, the full impact relating to specific individuals — and the exact cost — will not be known.

The council has made a further submission to Government for support towards these costs, and we have an initial allocation of £4.814 million agreed.

Capitalisation borrowings should be paid back within the shortest possible period, usually somewhere between one and two years.

Q You arrived in Oldham with a stellar reputation as a mover and a shaker and I understand that you have certainly shaken up the way services are provided in Oldham but when can we expect to see an improvement in the fabric of the town? It seems to be getting shabbier?
A I firmly believe Oldham has a very positive future despite the downturn. The council and its partners are investing in 700 new homes, for example. We’re also putting £100 million into new schools, £10 million into the new Regional Science Centre and — of course — there’s Metrolink, which is going to be transformational.

These are the infrastructure projects that will mean we can truly promote Oldham as a place that offers great homes to live in, great schools, and fantastic transport links so that you can work anywhere in the city region. In time this will help attract new developers, retailers and investors. These are the crucial building blocks that will enable our borough to achieve its potential in these challenging times.

But regeneration also takes time — often 10 years or more. In the coming months we shall be seeking developers to work with us to redevelop Oldham town centre. The arrival of Metrolink in the autumn will provide residents with a very real illustration that change is under way. This and the arrival of trams through the town centre in 2014 is already exciting renewed interest from investors.

They are particularly impressed by Oldham’s role as a major centre for learning at our university and colleges, which means that we have a young and well trained population.

Oldham is also playing a big role in the city region. This is benefiting the borough in a number of ways — including securing a superfast new generation broadband link which will run along the Metrolink line. This will stimulate investment in new 21st century businesses and creating high-quality knowledge based jobs.

We will also be one of the first areas in Greater Manchester to establish charging points to support the network required for electric vehicles. That’s just one part of a major drive towards creating a low carbon economy and stimulating new jobs.

In particular we’re working closely with Oldham College to identify how residents can get the new skills to take advantage of the future low carbon, green jobs.

All that — combined with pushing forward key sites at Hollinwood, supporting businesses and building new homes — shows that we are quietly getting on with changing the face of the borough and making ourselves shovel-ready to capitalise when the economic recovery arrives.

We have also gone from having the worst streets in Greater Manchester to the best. That’s not us verifying that but the Tidy Britain Group. For Britain in Bloom external judges decided our proposals won Best Town in the North-West and there’s been improvements in littering, planting and educational links. If you look around the borough it’s improved, though there’s still a long way to go.


The full text, with more questions, is in tonight’s Chronicle and online in the e-Chron (subscription required)