When is a council service not a council service? For more than a year now, Glasgow's museums, galleries, libraries and sports facilities have been run by a charitable trust, Culture and Sport Glasgow. It has been deemed a success, saving £7.7m in a year as a result of the tax breaks gained from its charitable status and a survey of users showing that satisfaction with the facilities had increased.
When is a council service not a council service? For more than a year now, Glasgow's museums, galleries, libraries and sports facilities have been run by a charitable trust, Culture and Sport Glasgow. It has been deemed a success, saving £7.7m in a year as a result of the tax breaks gained from its charitable status and a survey of users showing that satisfaction with the facilities had increased.
The latest proposal in a series of similar moves, however, is of a markedly different order. Glasgow City Council plans to transfer more than 8000 direct and care services (DACS) staff to a limited liability partnership (LLP). That would take the day-to-day management of a wide range of services including home helps for the elderly, school crossing patrols, janitors, cleaners, catering staff and those who monitor community alarms, out of direct council control. Although the new partnership would be wholly-owned by the council, it would operate under a strategic board consisting of four councillors (including the chair who has a casting vote) and three DACS executives.
The board will be answerable to key council committees, but users of the services and other council tax payers are likely to find a large gap in local government accountability. If there is a complaint about the home help service which is not addressed, who do they complain to? Will their local councillors have any power if they are not on the partnership board?
The rationale behind what will be the largest transfer of council services in the UK is economic. Glasgow's direct and care services department has a rolling deficit of £17m in the years 2005 to 2008. This is due to the equal pay settlement which required the majority of its staff, who are women on low pay rates, to be awarded substantial pay rises.
However, the shortfall means that DACS fell foul of the last remnant of the compulsory competitive tendering system, a requirement that "significant trading organisations" (such as DACS) must break even over three years. The council therefore faces the theoretical prospect of having to put the services out to tender from private companies.
The response to the likelihood of that process resulting in job losses has been the proposal for the partnership, which will allow all staff to be transferred and to retain their terms and conditions.
The partnership plan suggests DACS could make a profit of £500,000 within three years by contracting services to other authorities. That would provide funds for additional investment, but seems over-optimistic in the current climate.
Arm's-length partnerships have proved successful in property maintenance, with the reincarnation of the former direct labour organisation as City Building and similar bodies to run the markets and car parks all resulting in improved facilities. Judging the success of provision of care, however, is more complex. Home care was intended to give elderly and infirm people a better quality of life than residential care, but that is not the case if people are forced to go to bed at 6.30pm because there are not enough staff to go round. Local government must provide value for money, but retaining control is the key to quality as the Scottish Government has recognised in deciding to return all hospital cleaning and catering to in-house services.
As an employer, the council also has a duty to its staff, but in this instance it must first provide the appropriate quality of care to its most vulnerable residents and accountability to its electors.

















