Agenda item

The Committee received a presentation providing an update on the Authority’s current and future provision of an Information, Advice & Assistance Service and preventative services in relation to statutory duties under the Social Services & Wellbeing Act (Wales) 2014. 

The presentation provided an overview of a future business model for Careline in Carmarthenshire including detailed background and context regarding the reasons for considering a new business model and an overview of the opportunities this presents for the Authority in the future.

Careline takes between 600k-700k calls per year and has a huge customer base.  Well over 80% of its income comes from outside the county with customers including other Local Authorities and National Parks.

A new business model was being proposed to improve income opportunities as the service needs to be self-sufficient.  One of the options being explored is the development of a Local Authority Trading Company which would be wholly owned by the Local Authority.  A detailed business case has been prepared which was currently going through a consultation process.

The following observations/questions were raised on the presentation:-

·       Asked what feedback had been received from staff with regard to moving from working for a Local Authority to what is effectively a private company, the Information, Advice & Assistance Manager explained that the Local Authority Trading Company (LATC) would be wholly owned by the Local Authority and it would be up to them to set the terms and conditions.  An event was held recently for all staff and representatives from the Unions and Human Resources when it was made very clear that the new business model was not the driver for changing terms and conditions in any way.  There were questionnaires available for staff to make any comments regarding the process anonymously;

·       Concern was expressed that a Trading Company was privatisation by another name.  The Information, Advice & Assistance Manager explained that the LATC would have a Management Board which would have to report to the Executive Board on a frequent basis.  The Executive Board would ensure that all the necessary safeguards are in place.  The backing of the Local Authority is incredibly important.  This is not privatisation and if we manage to establish a LATC we will benefit greatly and the money it will bring in could be reinvested in social care;

·       If the LATC is wholly owned by the Local Authority officers were asked why not leave it as it is.  The Information, Advice & Assistance Manager explained that Local Authorities are not permitted to make a profit as they are bound by legislation, however, we need to make a profit and a Trading Company is able to draw down dividends;

·       Asked if the Trading Company would have its own Human Resources and Payroll officers etc. the Information, Advice & Assistance Manager explained that initially the Authority’s internal systems such as HR, Payroll, I.T. etc in order to provide continuity;

·       It was pointed out that a clear marketing plan was required and officers were asked if this had been done.  The Information, Advice & Assistance Manager confirmed that this would need to be done and that the marketing would need to be very strong as the work they would be bidding for would not just be in Wales;

·       Asked if any new employees would be on the same terms and conditions as existing employees, whether they would remain in the offices in Eastgate and whether all employees would be on minimum wage at least, the Committee was advised that the business case makes it very clear that there will be no two tier workforce so all new employees will come in on the same terms and conditions and on minimum wage at the very least.  With regard to Eastgate and being co-located with health colleagues is perfect and the team will be staying there for the time being, however, problems may be encountered with the location in terms of capacity in the future and it may be necessary to look for alternative accommodation, perhaps in the new Wellbeing Village.

RESOLVED that the information be noted.