Mouchel Group Plc. : Bournemouth's Mouchel Partnership to be extended (06/01/2012)

06 January 2012

Today, Bournemouth's Cabinet agreed to ratify its previous decision (12/10/11) to outsource the operation of the Council's Human Resources & Organisational Development and Finance departments to its incremental partner Mouchel. The transfer will take place on 1st February 2012.

Cabinet considered a detailed independent risk assessment based on Mouchel Group plc's audited financial statements for the year ended 31/07/11, along with an impartial review of the risk management and contract governance arrangements that are already in place.

Council Deputy Leader and Cabinet Member for Resources Cllr John Beesley said, "We are extending this contract having undertaken a great deal of background work.  The independent reviews acknowledge that all the relevant issues have been fully faced and dealt with by the Council, and that robust measures have been put in place to plan for a variety of risks, including a strong exit strategy in the event of needing to bring services back in house.  The independent reviews have commended the Council's governance and risk management processes relating to the incremental partnership.  It is this comprehensive approach that has led to the Council retaining £135,000 to cover the potential cost of bringing HR and Finance back in house, should Mouchel fail, together with other significantly improved contractual measures which are commercially sensitive, to safeguard the Council's position." 

Cllr Beesley continued, "Obviously, we do not believe that this will become necessary, as we have confidence in Mouchel's ability going forward.  By that, I mean that we have confidence that Mouchel will be able to meet their recently stated banking requirements, be able to deliver significant investment in the Finance service IT infrastructure in Bournemouth and provide HR and Payroll services to the Council to the standards we are specifying in the contract.  All this comes with the benefit of a net saving to the Council of £2.2 million over the life of the contract."  He added, "I should stress that this decision is about improving central, largely internal services, and of course saving money as well.  By doing this, it allows us to continue our approach of not cutting front line services, which would have a more direct impact on our residents."

He concluded, "It is easy for those opposed to change to focus on recent issues with Mouchel's financial position.  In response, I should highlight that service levels already being achieved by Mouchel in the services currently provided - IT, Facilities Management, and Revenues & Benefits - are in line with contractual obligations.  It is also worth pointing out that we are aware of a number of areas of new business that Mouchel plc has recently won including a Department for Transport £60m infrastructure scheme and a successful application to the Department for Education's project management and education services supplier lists.  This demonstrates that we are certainly not alone in our belief that Mouchel plc can and will continue to deliver excellent services in the future."

Around 100 staff work within Bournemouth's HR and Finance departments.  They would transfer to Mouchel on 1st February, under TUPE rules.  A number of workshop sessions are planned for staff to keep them fully up to date with progress.