The long road to privatisation of streets management in Birmingham
Six years ago, Mike Whitby declared his outright opposition to the Birmingham highways PFI on the grounds that it would remove responsibility for road repairs from direct council control.
It was a strange thing for the then-leader of the council’s opposition Conservative group to say. After all, you would expect the Tories to be in favour of privatisation.
There again, Birmingham in 2003 was going through one of its Alice in Wonderland phases, where nothing was quite as it seemed.
The Labour-controlled council, under the leadership of Sir Albert Bore, was intent on pushing through the PFI – effectively privatising every road and pavement in Birmingham for 25 years. Bravely, he fought off opposition from many left-wing Labour councillors, arguing that the only way the city would ever be likely to secure enough money to put the roads in a decent state of repair was by inviting private sector bids.
Coun Whitby and the Conservatives were cast in the unlikely light of the party committed to keeping the city’s under-performing street services in the public sector, They were backed by Liberal Democrat councillors, who also opposed PFI “on principle”.
All of that changed in June 2004, when a Conservative-Liberal Democrat coalition took control of the council from Labour.
Those who had spoken so forcefully against PFI were now faced with either abandoning the project, or trying to make it work. They chose the latter course, announcing in September 2004 that the coalition would work with the Department for Transport to secure a PFI deal.
Mike Whitby, by now leader of the council, moved seamlessly from “principled” opponent to an outspoken supporter of PFI.
Eight original bidders have been whittled down to a winner – Amey, which is expected to take responsibility for improving and managing the roads in spring 2010.
The announcement also highlights the impotency of trade unions at Birmingham City Council.
Despite much huffing and puffing, with a claim by union leaders in 2004 that 98 per cent of roads staff would strike if the PFI went ahead, there has not been a hint of industrial action. As was the case with the council’s pay and grading review, monumental change will take place whatever the unions think about it.
About 300 workers will be transferred to Amey under the Tupe regulations, enabling them to keep the same pay and conditions for a limited period of time.
But with Amey under pressure to make a profit out of the contract, there is little doubt that the workforce will feel the wind of change before long.
No one is saying how much Amey expects to make from the deal – financial forecasts are bound by commercial confidentiality clauses.
