PUBLICLY FUNDED V PRIVATISATION
Firms are being invited to provide debt advice to people after shock news that CAB is to lose 50 per cent of their funding
Private companies could be invited to bid to provide debt advice services to the public on behalf of North Lanarkshire Council.
A note in the council’s recent transportation committee meeting stated there would be an opportunity for ‘third sector’ organisations to bid on their own, or jointly, to provide independent advice services on behalf of the council.
It is unclear at this stage whether or not an open or closed tender process.
However, an open tender means that any organisation can bid to run the service including private and profitmaking organisations.
However, the potential privitisation of the service has sparked fury among volunteers at Motherwell and Wishaw Citizens Advice Bureau.
The group are set to have their funding cut by the council by 50 per cent.
A CAB source told the Wishaw Press: “In other areas, private companies have been successful in tendering to deliver what were traditionally CAB services and then subsequently sub contracted the work to CAB.
“In one instance, this decision had to be reversed due to perceived failure of the new contract.
“The council have said that the third sector will be able to take part in a consultation process that determines the assessment criteria used in the tendering process.
“While we very much welcome this invitation, the council cannot provide any reassurances regarding the outcome of a tendering process, as this is governed by strict tendering and procurement legislation.”
From October 1, the Money Advice team within North Lanarkshire Council will be the only source of face-to-face debt advice in North Lanarkshire.
Last year CAB’s across No rt h Lanarkshire collectively supported 1457 clients with multiple debts, while the council supported 874.
David Hut ch i s o n , cha i rman of Nor th Lanarkshire CAB, said: “We do not believe that the people of North Lanarkshire would support the council’s proposals to reduce CAB funding by 50 per cent nor run the risk that a private profit-making organisation wins the new contract to deliver advice in the region.
“The only way to stop these proposals is to express your concerns to your local councillor.”
A spokesman for North Lanarkshire Council said: “The review of advice services is ongoing, with input from all the agencies concerned. However, it is important to stress that no decisions have been taken about the report and proposition considered by the Transformation Committee earlier this year.
“Once the review – which is detailed – is fully completed, further recommendations will be made to the Policy and Resources Committee. It is therefore far too early to speculate about any of the outcomes of the review, including commissioning aspects.”
Review of advice services is on-going NL Council Only way to stop these proposals is express concerns to your local councillor . . .