Decision details

The Cabinet Member considered the report of the Planning and Economic Director advising of the current situation with regard to the support and funding for the Merseyside Engineers Laboratory Service (MELS) for which Sefton Council was the lead authority and accountable body on behalf of the five Merseyside Districts; and highlighting the current and future budget situation that impacted on the viability of the Business Unit and hence staff resources.

The report indicated that over recent financial years the volume of commissions placed with MELS by Constituent Authorities had declined; that the Constituent Authorities were all concerned about the increasing demand to cover deficits in the operational budget from revenue budgets at a time when substantial cuts were under consideration and that as a consequence, the future of the service had been reviewed and a number of options considered; and that it was now recommended that taking into account the views of the Constituent Authorities, Sefton Council as lead Authority should give notice to withdraw its consent to be Designated Council and to terminate the formal Agreement.

The report concluded that the proposed termination of the Agreement was considered the appropriate way forward to reduce the unsustainable demands on revenue budgets; and that it should be noted that this would involve a reduction in staff, to be achieved through the Council's normal personnel procedures and if necessary compulsory redundancies.  Under the terms of the Agreement all the Merseyside District Authorities would be responsible for considering redeployment opportunities and to share any costs.

RESOLVED:          That Cabinet be recommended to:

(1)      note the Merseyside Districts Authorities' view that sufficient funding and hence commissions will not be available in the foreseeable future to maintain the Merseyside Engineers Laboratory Services as a viable Business Unit;

(2)      in accordance with the Service Agreement with the Merseyside Districts Authorities, the withdrawal of Sefton Council's consent to act as Designated Council and the termination of the MELS Agreement be approved; and

(3)          officers continue to seek the full co-operation of the partner District Authorities to seek redeployment of the staff and to explore opportunities for the potential future utilisation of these specialist skills and equipment, including by private sector interests.