Highways PFI savings could result in job losses, but not will not affect road resurfacing

The savings on the PFI contract could result in possible job losses but Island Roads say it’s looking at redeployment and other avenues to keep any compulsory redundancies to a minimum.

Scrabble letters spelling Money:

Following OnTheWight’s report on this over a month ago, here’s the official release issued today by the IWC. Ed


The Isle of Wight Council and Island Roads have agreed initial savings worth more than £11 million following a renegotiation of the highways PFI contract.

The arrangement, which started on 1 April, is a £0.6 million-a-year cost reduction over the next 18 years of the agreement, or £11.4 million in total when index-linked. 

The council, supported by Jay Jayasundara of Jasmine Consulting, is continuing to work with Island Roads to identify further savings that can be implemented from April 2020. When completed, the total savings over the lifetime of the contract could total around £40million. 

Hutchinson: Thanks Island Roads for agreeing
Cllr Stuart Hutchinson, the councillor in charge of council finances, said,

“This arrangement is a substantial contribution to the council delivering its budget strategy and I would like to thank Island Roads for the work it has done to agree it.”

Ward: Savings do not affect road resurfacing and footpath improvements
Cllr Ian Ward, cabinet member for infrastructure and transport, added:

“This very successful contract has transformed our Island roads since it started six years ago, and it will continue to do so. It has delivered some of the best roads in the country and, with these savings, it represents even better value for money for Islanders.

“The savings do not affect road resurfacing and footpath improvements plus high priority maintenance and road safety works, which will continue as required. 

“It does however mean people will find, some aspects of maintenance and services reduced for example, grass verges will not be cut as often to encourage biodiversity, and roadside bins will not be emptied as frequently. However, these changes are an evolution of the original contract as we have discovered the service was better than needed in some areas.” 

Some possible job losses
The arrangement’s implementation will lead to a number of post reductions at Island Roads and its subcontractors, including five from CCTV monitoring and similar numbers in the area of street cleaning and also grass cutting.

CCTV will still function on the Island and Hampshire Constabulary has access to it.

Keep compulsory redundancies to a minimum
In all areas, Island Roads is looking at redeployment and other avenues to keep any compulsory redundancies to a minimum. 

The council has also agreed to look favourably on applications from those affected by redundancy for any jobs it advertises. In practice this means, that if the person meets a council job specification, the authority will guarantee an interview. 

Island Roads: Reduced level of service
Service director at Island Roads, Steve Ashman, said:

“While under this new agreement, we will be providing a reduced level of service, we are confident residents will continue to receive an extensive, high quality programme of highways improvement and maintenance.” 

Image: PT Money under CC BY 2.0

Wednesday, 17th April, 2019 12:16pm

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Filed under: Island-wide, Isle of Wight Council, Isle of Wight News, PFI, Top story

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7 Comments on "Highways PFI savings could result in job losses, but not will not affect road resurfacing"

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Colin
More drivel from the IWC. This contract was sold to the Island as the best thing since sliced bread by the previous tory administration. Not only is it an incomprehensible mess with only the so called architect able to understand it, it clearly never offered value for money if so much money is available to be “saved”. The only people happy with the contract are the financiers… Read more »
CB500

This is not renegotiating. This is cutting. You don’t need a consultant to do that they could have asked a five year old. Jeez, even DC Dave should be able to work that out..

willbarrow

All the so called savings seem to be decided by the consultants and not the people who will be living here when they have all gone back to the mainland with there big cheques.

davimel
I love the small paragraph regarding the CCTV system no longer being monitored. What this means in reality is that all the cameras in newport will just be recording, and any unsociable behaviour, violence or assaults will not be monitored. No one will be able to trace and follow offenders, or even report crimes to the few Police we have left. With Newport becoming a ‘no-go’ area… Read more »
laurentian

“It has delivered some of the best roads in the country”
Like Undercliff Drive?

ukdave

Ha ha, and some of the worst I would argue.

micksey009
Utter nonsense yet again from IWC. Of course it will affect roads resurfacing. Ventnor has been disgracefully overlooked for 6 years while minor lanes and B roads all over the Island have had the full treatment. Perhaps Island Roads are working alphabetically through the towns? Good job I’m not running the IWC. Being kind to them, incompetence rules. Very sad because we’re all having to pay for… Read more »