Council Should Not Give Its Profits to German Company

Summary


IT WAS reported in the Mail (September 24) that a German firm was awarded a Pounds 15m contract from East Riding Council to run the council's administration service and had a pledge to create 600 new jobs as part of that contract.

Four hundred and fifty council staff transferred to the company at that time. But as the council has run its own administration for many years, is it more cost effective to council taxpayers for the council to give Pounds 15m to a private firm to run that service? No private firm would ever enter in to a contract unless it made money from it, but why should a council service, paid for with public money, make a profit for a German company? What profit can be made must be made to reduce council tax bills and not be paid to directors in a private German firm.

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Extract


Council Should Not Give Its Profits to German Company

Although the firm pledged to create 600 new jobs,...

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