PARTNERSHIP WORKING

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PARTNERSHIP WORKING

• Arthur Morris
• Risk Management Partners Ltd.

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Headlines

• Radio 4-LB Southwark private sector takes over
  LEA
• First mass housing transfer in trouble Scottish
  Borders Housing
• Edinburgh Schools PPP under threat
• Health Set up comes apart Barking Dagenham
  Primary Care Trust
• Norfolk breaks ties with Capita
• Neighbourhood Watch
• Council for Racial Equality

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AGENDA

• What is partnership working
• Why use partnership agency working
• Common types of modern partnerships
• Other types of partnership working

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Common types of modern partnerships

• Strategic Service partnerships
• PFI
• Health
• Crime an Disorder
• Local Strategic Partnerships (England)

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Strategic Service Partnerships (1)

• Complex bundles of tasks/services
• Value can be 20m plus
• 10 years or more
• Long term perspective on needs, costs, solutions
• Shared risks/rewards
• Problem resolution methods
• Joint governance
• Capable of change/development

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Strategic Service Partnerships 2

• ODPM to establish a task force to review
• Over-reliance can affect councils skill base
• Difficult to respond to demographic changes over
  20 or 30 years
• Risk of failure if right team not deployed at the
  start
• Can live or die by attitudes to risk management
• Get to grips with risk at the outset
• Core conflict of cheapest option vs. need for
  profit

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PFI partnerships

• On or Off balance sheet finance, long term
• Strongest in Schools, Housing, Hospitals and
  Defence, 500 schemes to date, 24 local authority
  projects in Scotland
• New focus on urban regeneration, waste management
  and social housing and multi agency projects
• Used for major capital projects with ongoing
  maintenance and defined outputs
• Recent Audit Commission report -failure to
  include important risks in project specifications

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PFI Partnerships (2)

• Allows risk to to be shared with private sector,
  seek an optimal apportionment of risk
• A range of parties, council (and) participants in
  multi agency project, funders, construction
  contractors and operators
• Model Treasury contract
• Limitations of Special Purpose Vehicles (SPVs)
• Private sector cap is the project equity and debt

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PFI Partnerships (3)

• Key success factors
• Good track record of project delivery
• Getting the right team in place
• Effort in explaining service to potential
  partners
• What level of service you will specify
• Be as flexible as you can

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PFI Projects (4)

• Retained risks
• Capacity
• Change in needs
• Usage
• inflation

• Transferred risks
• Service delivery standards
• Costs overrun in construction
• Timely completion
• Industrial action
• Physical damage
• Some usage risks

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Health partnerships

• Focus of Laming enquiry into Victoria Climbie
• Children's Trusts Health, Social Care and
  Education
• Local Primary Care Trusts with joint arrangements
  and joint commissioning
• Some involve NHS staff transferring to Councils
  and vice versa, or secondments
• Mental Health Partnerships

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Health partnerships (2)

• Model protocol PL EL PI Clinical Negligence
• Sole or joint responsibility (anticipates mostly
  sole responsibility)
• Exchange of information and claims co-operation
• Joint attempt to apportion liability
• Dispute process
• Involve insurers

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Crime and Disorder

• Police
• Youth Offending Teams
• Community Wardens
• Issues about sharing information and data
  protection/confidentiality
• Most use a claims protocol similar to the Health
  model where individual partner is responsible for
  direct losses and a sharing mechanism for shared
  losses

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Local Strategic Partnerships (England)

• 88 most deprived areas
• Local Authority as lead, residents, Voluntary
  bodies, Faith organisations, businesses,
  statutory agencies
• Prepare and implement community strategy
• Coordinate local plans
• Work with agencies to set targets to reverse
  decline
• Forum for Police, Health, etc to work together
  to meet community needs

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Local Strategic Partnership (2)

• Southwark
• Youth work
• Police in schools
• Support for young victims
• Home-visiting by Police and community Health
  service

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Other ways of partnership working

• Unincorporated Association
• Group working or working party
• Trust
• Incorporation through
• Company limited by Guarantee
• Industrial/Provident association
• Company with share capital
• Client/Contractor

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Critical issues for other bases of joint working

• 1 Basis of joint working
• 2 Legal status and capacity of partners
• 3 Nature and status of any appointment
• 4 What will the joint working actually do
• 5 What are the potential liabilities
• 6 Consider the most appropriate insurance solution

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The near future

• Consultation on proposed Community Interest
  Companies
• Consultation on indemnity to members and officers
  (England)

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CONCLUSION

• Rapid learning curve
• Issues about strategic service partnerships
• Evolution of PFI
• Model contracts in health partnerships
• Joint working on crime and disorder
• Increasing joint working generally which can be a
  legal minefield if not thought through at the
  outset