22nd February 2006

Oxford City Council Green Group today condemned the decision taken by a

combined vote of the Labour and Liberal Democrat groups to outsource the

Council's council tax collection function to a consortium including a private

'external provider'. The decision, taken at the budget meeting on

Monday 20th February, saw only the Green Group councillors voting against

the proposal.

An infamous example of the dangers of private outsourcing of council

functions is provided by Capita, a company believed to be likely to bid

for the Oxford City Council contract.

Capita Group are one of the largest private handlers of outsourced public

services in the UK, and despite record profits have gained a dubious

reputation due to examples of mismanagement in the Criminal Records

Bureau, Lambeth Borough, Bromley Borough, and other major contracts. A

contract to run Oxford City Council's 'out of hours' council tax collection

service was awarded to Capita last month, and Monday's decision massively

expands the involvement of 'external providers' in Oxford's council tax

process. If the proposal is enacted, Oxford will enter into a consortium with

two other Oxfordshire district councils, all of whom are outsourcing their

collection function to private companies.

Cllr Matt Sellwood, who is the Green Party member of Oxford City Council's

Executive Board, commented: "This is an absolutely outrageous decision.

Capita are known amongst many as 'Crapita', and for good reason - they and

other such private outsourcing companies have an appalling record of mismanagement, and Capita were the company responsible for the delays and chaos of teacher vetting in the Criminal Records Bureau several years ago. Lambeth Borough Council were forced to terminate their multi-million pound contract with Capita because of massive problems, and

I am astounded that the Labour administration has chosen to go down this route, with Liberal Democrat support."

Cllr Sellwood continued: "Even if the private sector manage to run this

contract competently, the problems of outsourcing council tax collection

cannot be escaped. Democratic control over the conduct of their employees in

pursuing debtors will be lost, and vulnerable people will be hounded by

a private company concerned only with meeting targets and increasing its

profits. What is more, the operation is likely to be run from

call centres outside Oxfordshire, by people who have never even been to

Oxford, and who know nothing about our council. Of course the City Council

needs to increase its rate of collection, but this is entirely the wrong

way to go about it. The Green Group will fight this decision in every

way possible."

Cllr Craig Simmons, who is Leader of the Green Group, explained: "Rather

than this privatisation, the Green Group has suggested ways in which the

City Council's Revenues and Benefits operation can be made more efficient.

In our budget this year we included £50,000 worth of savings from

increasing homeworking for council tax collection employees - a step that

would increase staff morale, reduce carbon emissions, and keep the council

tax operation 'in house'. We are deeply saddened that the administration

chose to enrich a private company instead."

FMI contact Cllr Matt Sellwood on 07974745529 or Cllr Craig Simmons on

01865 202257