Bournemouth council to boost revenue through set-up of own building company

UNDER CONSTRUCTION: Bournemouth council is setting up its own building company

Cllr Robert Lawton

First published in News by

BOURNEMOUTH council is planning to boost its coffers by setting up its own building company, offering a range of services to paying customers.

A new council-owned trading company called Bournemouth Building Maintenance Ltd will operate commercially in the private sector, offering a variety of services including home adaptations, building refurbishments, bathroom and kitchen installations and electrical work.

The council claims this will generate much-needed income and create jobs and apprenticeships locally but it will also provide extra competition for builders at a time when the economy is still struggling.

The proposals were approved by cabinet members on March 26 and the company is expected to start trading in May.

A total of 82 staff currently employed by Mouchel are set to be transferred into the company on a labour-only basis.

Additional tradespeople and apprentices will be recruited to meet any additional demand, it has been confirmed.

The council’s business plan projects a net profit of £143,000 in 2014/15, rising to £590,000 in 2020/21.

Cllr Robert Lawton, cabinet member for housing, said: “This is a really exciting initiative for the council.

“We already have a very well established, successful and skilled council building maintenance team and we want to build on that success and expand the services into the private sector.

“Not only would this generate much-needed income for the council but it would also help stimulate the local economy by providing jobs and apprenticeships in the building trade.”

Comments (10)

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1:33pm Fri 28 Mar 14

kalebmoledirt says...

There is ample evidence that they can,t run a bath .why do they imagine they can do better than the people who are struggling to get back after the recession. Or is just a way of employing the councillors that are likely to be redundant after the next elections
There is ample evidence that they can,t run a bath .why do they imagine they can do better than the people who are struggling to get back after the recession. Or is just a way of employing the councillors that are likely to be redundant after the next elections kalebmoledirt
  • Score: 2

1:46pm Fri 28 Mar 14

High Treason says...

I bet they get planning passed very quickly and will they pay the going rate we have to pay. Pay to have the plans approved, if you are lucky and pay for a building inspector to pop in now and then.
I bet they get planning passed very quickly and will they pay the going rate we have to pay. Pay to have the plans approved, if you are lucky and pay for a building inspector to pop in now and then. High Treason
  • Score: 1

3:14pm Fri 28 Mar 14

RM says...

Mr Bodger the Builder - are these on the days when he's not acting the part of Mr Blank-Cheque the Banker? The mind boggles at the picture that presents. Obviously branching out in case the LG Elections don't go quite as planned.
Mr Bodger the Builder - are these on the days when he's not acting the part of Mr Blank-Cheque the Banker? The mind boggles at the picture that presents. Obviously branching out in case the LG Elections don't go quite as planned. RM
  • Score: -1

3:17pm Fri 28 Mar 14

BmthNewshound says...

Clearly didn't like my initial comment, a touch sensitive when it comes to the question of Bournemouth Councils record on openness and transparency.
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There seems to be a pattern of council services being transferred into various styles of arms length business - trust, CIC and Ltd Co, which make it virtually impossible to ensure that there can be public scrutiny of the finances to ensure that these "arms length" bodies are being run in the public interest.
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If the maintenance arm of the council is being turned into a separate limited liability company does this mean that contracts for maintenance of council owned buildings will have to be put out for tender and that the new council owned business may not be awarded the tender.
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Will the taxpayer be expected to subsidise the new company until it makes a profit. What safeguards will there be to ensure that the company doesn't undertake private work at a loss ?
Clearly didn't like my initial comment, a touch sensitive when it comes to the question of Bournemouth Councils record on openness and transparency. . There seems to be a pattern of council services being transferred into various styles of arms length business - trust, CIC and Ltd Co, which make it virtually impossible to ensure that there can be public scrutiny of the finances to ensure that these "arms length" bodies are being run in the public interest. . If the maintenance arm of the council is being turned into a separate limited liability company does this mean that contracts for maintenance of council owned buildings will have to be put out for tender and that the new council owned business may not be awarded the tender. . Will the taxpayer be expected to subsidise the new company until it makes a profit. What safeguards will there be to ensure that the company doesn't undertake private work at a loss ? BmthNewshound
  • Score: 3

6:15pm Fri 28 Mar 14

Old Colonial says...

Councils have no business being in competition with anyone. For a start they cannot possibly have the same cost base as a commercial operation. This stinks, like a lot of things coming out of the Town Hall.
Councils have no business being in competition with anyone. For a start they cannot possibly have the same cost base as a commercial operation. This stinks, like a lot of things coming out of the Town Hall. Old Colonial
  • Score: 0

7:09pm Fri 28 Mar 14

Lord Spring says...

Could they knock the VAT off for cash.
Could they knock the VAT off for cash. Lord Spring
  • Score: 0

7:23pm Fri 28 Mar 14

kalebmoledirt says...

Is this a project for local jobs for local people
Is this a project for local jobs for local people kalebmoledirt
  • Score: 0

7:54pm Fri 28 Mar 14

muscliffman says...

RM wrote:
Mr Bodger the Builder - are these on the days when he's not acting the part of Mr Blank-Cheque the Banker? The mind boggles at the picture that presents. Obviously branching out in case the LG Elections don't go quite as planned.
I did hear a whisper that the trading names have been agreed for both these Bournemouth Council ventures, Building Solutions and Mortgage Solutions, I wonder if they will set up a planning consultancy next?
[quote][p][bold]RM[/bold] wrote: Mr Bodger the Builder - are these on the days when he's not acting the part of Mr Blank-Cheque the Banker? The mind boggles at the picture that presents. Obviously branching out in case the LG Elections don't go quite as planned.[/p][/quote]I did hear a whisper that the trading names have been agreed for both these Bournemouth Council ventures, Building Solutions and Mortgage Solutions, I wonder if they will set up a planning consultancy next? muscliffman
  • Score: 0

11:11am Sat 29 Mar 14

SFF says...

This is a strange story. Wondered why they were so happy to demolish the BCCA to cram in those little houses. if they are becoming property developers this has got to be a conflict of interest. They put through planning applications against the wishes of the community for their own building projects? Who is to regulate them and protect us from stealing community assets?
This is a strange story. Wondered why they were so happy to demolish the BCCA to cram in those little houses. if they are becoming property developers this has got to be a conflict of interest. They put through planning applications against the wishes of the community for their own building projects? Who is to regulate them and protect us from stealing community assets? SFF
  • Score: -1

2:59pm Sat 29 Mar 14

billy bumble says...

How many Councillors are directors??
How many Councillors are directors?? billy bumble
  • Score: 0

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