1. That each service should be judged on its merits for its suitability for insourcing.

Agreed. The Insourcing Group is looking in detail at each service. It has already recommended that Trading Standards is more suitable for a countrywide collaboration. It also believes that any insourcing arrangement should allow for other services to be considered for inclusion.

2. That the development of partnership arrangements, if appropriate, should reflect the aims and objectives of individual services within the corporate context.

Agreed. Evaluation criteria are being developed in Tameside for the Council's overall objectives of the growth of good quality employment and within this context for the individual services. It is recognised that individual services have different strengths and weaknesses and different needs in terms of resources, expertise and investment. Whilst recognising the point made at 6.1.2.5. that the capital cost and often higher salaries make it impossible to return the services in-house.

3. Should services be found suitable for insourcing, the Panel favours the model of a Joint Venture Company for more effective partnership working and recommends that the Council strongly consider this model of partnership for its insourcing arrangements.

This is the Council's position. In fact in order to grow business the Council must trade through some kind of company. The precise legal conduct of such a joint venture Is still being worked on.

4. The Panel recommends that the contract is sufficiently flexible to accommodate changes arising out of continual improvement and to respond positively to external conditions and new working practices.

The Insource Group has proposed heads of terms for an "improvement contract" which cover these points and should apply to any situation where services are delivered on behalf of the Council in whole or part by third parties. We are also aware of the recent proposal for a "code of practice" issued by the ODPM to tackle two tier work forces in local government.

5. The Panel recommends that the Council ensures it has sufficient resources to utilise on the contracting process in particular, the necessary mix of skills to identify where expert advice is needed.

This is a well-timed recommendation. It is recognised that the membership of the Insource Group needs to change to include the necessary expertise and effort to do this job well. It is clear that we currently do not have all the expertise we need in-house. And indeed we have made a start by the recruitment of a legal specialist on procurement.

6. The Panel recommends that genuine and rigorous risk analysis is undertaken at the earliest opportunity.

Agreed. The Council's Audit Manager has joined the Insource Group and has the task of undertaking together a rigorous risk analysis. At the same time and linked with this, the Borough Treasurer who has also joined the group and is undertaking an options appraisal which involves a risk analysis of the options open to the Council.

7. The Panel favours an employment model whereby the Council can protect or improve terms and conditions and including pension rights and finds that a JVC model can best secure this control. The Scrutiny Panel recommends the Council strongly consider this model of partnership for its insourcing arrangements.

This was one of the basic principles laid down in the Cabinet Report (23/10/02) and it is one to which the insourcing process is adhering. In line with this, we will be evaluating different methods of achieving this. For related comments about JVCs see 3 above.

7. (8) The Council should ensure it is effectively communicating with employees and members at all levels, particularly those that will be directly affected by the new working arrangements.

This also is one of the basic principles laid down in the Cabinet Report (23/10/02). A Communications Plan will be available shortly. In the meantime, managers of affected services have been involved in the insourcing meetings and there are notes of these meetings from which they can brief staff. A briefing note has gone to all members and staff. An article appeared in the Wire and Trades Unions have been updated.