Agenda item

This report sets out for comment proposals to combine the management of Environment Services provided by Hammersmith & Fulham and Kensington & Chelsea as agreed at the Cabinet meeting on 20 June 2011.

The Committee gave consideration to proposals to combine the management of Environment Services with those of Kensington & Chelsea.

Members noted that the Cabinet, at its meeting on 20 June 2011, had agreed the development of a bi borough approach with a new joint senior management structure in place by June 2012 and the introduction of combined services by March 2014. The intention was to reduce costs through the merger of management teams rather than reductions to frontline services. While there was no direct departmental fit with regard to provision of services in the two Boroughs, the scope broadly encompassed the majority of the Environment and Residents Services departments in Hammersmith & Fulham and Kensington & Chelsea’s Transport and Leisure Department.

Nigel Pallace, Director of Environment, set out details of the proposed services, structures, principles, implementation and delivery vehicles, programme governance, estimated savings and timelines.

It was reported that there would be a 48% reduction in the three top tiers of management across the two authorities with the 29.5 senior management staff in scope reduced over three years to 15.5, resulting in a saving of approximately £1.33m less £175,000 attributed to capital and other sources in the tier three transport and highways posts at Hammersmith & Fulham. Two Directors would be appointed. Subject to the due process it was anticipated that these would be Nigel Pallace and Lyn Carpenter with Mr Pallace managing shared services half the time and sole Hammersmith and Fulham services for the remainder, whilst Ms Carpenter worked whole time in a shared capacity.

Mr Pallace emphasised that for the moment this was merely a headline integration of senior management and not a combination of services. Indicative figures suggested, however, the potential for a further £1.970m in savings through the merger of services and support by 2014/15. It was anticipated that the move towards shared services would be incremental.

The Committee was informed that although it had not proved possible to include Westminster City Council in the arrangements due to its operating models and contractual commitments, there was scope for it to participate at a later date.

In response to a question from Councillor Lisa Homan, Nigel Pallace confirmed that Planning services were out of scope of the new arrangements. There had been a desire to ensure they continued to be provided locally due to their sensitivity to place. Licensing services were subject to similar considerations and, although part of the joint management structure, would continue to operate independently.

Councillor Homan sought reassurances that the proposals would not give rise to potential conflicts of interest for Officers with dual reporting responsibilities. Mr Pallace emphasised that no participating authority would be denied access to independent advice if required. The problem had not arisen in the five years during which the two Councils had shared an Assistant Director of Highways and Engineering.

Councillor Homan further enquired as to the compatibility of IT systems. Nigel Pallace acknowledged that the integration of systems was a major challenge. In the long term the intention was to operate common IT platforms but an exact match was not required to manage services in the first instance. The existing wide variation in systems within Hammersmith & Fulham had not prevented the efficient delivery of services.