The Chief Officer Environmental & Operational Services, presented the report which advised that following the decision of the Social Affairs Select Committee on 26 March 2013 and confirmed by Cabinet to continue the pest control service, as existing, until 2014, maximising income by charges and additional commercial sector work, whilst remaining competitive, but accepting that the service would produce a net deficit on the trading accounts of an average of £12,000 per annum; and that a further review of the service be carried out in October 2013 to consider exposing the service to competitive tender.  This report provided that further review as requested and reported that that the tender result would identify the most financially advantageous price of delivering the pest control service, and would compare the price submitted by the in-house service with prices offered by the private sector.  This would inform Members of the cost of continuing to provide a pest control service.

A Member commented that it was a service the public expected from the Council though he understood that it was discretionary, if it could be provided at a cost that did not adversely impact on the Council’s budget then he was keen to see it continue and agreed with the recommendations.  Another Member was not happy that the Council was competing against the private sector and did not see what could be gained from going out to tender and that the services was making a loss, was discretionary and so should just be ceased a further Member supported this.. 

The Chief Officer Environmental & Operational Services replied that it was a public service and should not be judged on cost recovery basis, there was discretion to charge and maximise income.  The services also currently offered a reduction in fees for those on means tested benefits.  Going out to tender would help assess the situation and provide Members with all the relevant information they would need to make an informed decision.  The results of the tender process, if agreed, would be brought back to Committee in July 2013.  At the moment any loss was absorbed by the direct services trading account and did not affect the general fund.  In response to a question concerning the officers’ morale, he replied that they were aware of the threat of the service ceasing and highest praise to them they had continued to be flexible, and had reduced costs by working long hours without overtime and by taking the time off in lieu in the slower winter months along with their annual leave.  He believed that if the service was compulsorily competitively tendered they would go for redundancy rather than a TUPE arrangement.  However he believed that they would be confident of being the successful tender.

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty and that a decision to cease delivery of the service or contracting out to a private company may have a detrimental affect on residents receiving means tested benefits as discounts currently offered may not be available.  Steps that could be taken to mitigate this would be a requirement within the tender process to require the ‘contractor’ to provide a discount on pest control treatments to families on means tested benefits and provision for this subsidy within future council budgets as a growth item.

Resolved:  That it be recommended to Cabinet that the pest control service be exposed to competitive tender, for a three year contract and that the results of the tender be reported back to the Planning and Environment Advisory Committee for consideration.