Jobs at risk as advice service loses tender
Dec 7 2007 by Liz Hands, The Journal
FEARS have been voiced over potential job losses after a Northumberland company which employs 105 staff lost its £3m-a-year contract to deliver key advice and counselling services to the county’s young people.
The award-winning Connexions Northumberland Ltd is expected to go into liquidation after being outbid for the contract by Leeds-based provider igen ltd.
Connexions Northumberland provides information, advice and guidance to thousands of young people on career and university choices, how to get into employment and training and on personal, social and health problems.
Yesterday, concerns were voiced over likely job losses and the potential implications of moving the management of the Connexions service out of the North-East. Igen ltd will take over the contract in April after submitting a bid believed to be about £400,000 lower than Connexions Northumberland in a competitive tendering exercise launched by Northumberland County Council in August.
Connexions Northumberland, a Blyth-based not-for-profit company, employs personal advisers who work in schools and colleges, helping young people aged from 13 to 19 to make informed choices about their futures.
Last night, board member Michael Jeans, a borough councillor in Castle Morpeth, said there was genuine concern that some of the administration and management jobs with the company would now move away from the North-East.
“We are concerned that running this service from outside the region will make things difficult to operate properly, especially when it has been run very successfully within Northumberland.
“I very much regret that a local, successful company is going to close, but we will work to get the best possible deal for everybody and try to ensure that the service is not compromised. We see it as a backward step in awarding this contract out of the region.”
County council bosses decided to invite organisations to tender for the contract rather than take the Connexions service in-house. The move followed a decision by the Government to make local authorities responsible for securing the advice service from April 2008.
Last night, Northumberland Connexions chairman, Trevor Jones, said: “The county council’s decision is a great shock and huge disappointment for our 105 employees. The decision to award the contract to an organisation based outside the area will almost certainly lead to a highly successful Northumberland company going into liquidation, with the inevitable loss of some local jobs. At a time when the local economy is in need of a boost, this is particularly upsetting.”
Chief executive Austin McNamara said it was unclear how many of the company’s employees would be affected by the loss of the contract.
A county council spokeswoman said a fair and open tendering process had been held for the Connexions service contract to ensure best value for money. She said the igen ltd bid promised a service that will provide the highest quality provision to young people in the county.
Igen chief executive Steve Higginbotham said: “Until such time as contract discussions with the county council have been concluded, we are unable to comment on specific matters relating to the future arrangements for the provision of the Connexions service from April 2008.”
