A COUNCIL has pulled out of a major deal with Mouchel just as Bournemouth enters a very similar one.

Rochdale leader Cllr Colin Lambert told the Echo: “In the light of our experiences, I find a deal like Bournemouth’s amazing.”

His council had discovered it was charged £2,000 for laptops costing around £600.

Mouchel has agreed to leave the £180million deal, which was supposed to last 15 years.

The council handed over its highways, property, IT, contact centre and payroll departments in 2006.

However the only part likely to remain in private hands, depending on final agreements, is a call centre.

Other local controversies included a £700 charge for a blue plaque to honour the town’s late MP Sir Cyril Smith, later cut to less than £100 after furious councillors intervened.

In another case, the council was asked to pay £1,500 to mark out traffic regulations on a road, then an extra £2,000 to oversee the work.

The council audited the deal and believes it can save £2million to £4million a year by doing the work itself.

Cllr Lambert said it held “numerous meetings” with Mouchel staff.

Bournemouth last year signed a £150 million deal with Mouchel to outsource 350 staff and the IT, facilities management, revenues and benefits departments.

A second deal to transfer 100 staff from human resources and finance is awaiting the completion of a risk assessment by KPMG.

Bournemouth’s chief executive Pam Donnellan said: “All information that is available will be considered as part of our independent financial analysis.”

Mouchel revealed a £65million loss this month and its shares have fallen to four per cent of their 2009 level.

A spokesman said the Rochdale decision was amicable and mutual.

They said: “Since the contract was agreed, the economic climate has fundamentally changed making it increasingly difficult to deliver job growth in property and highways to the council and unprofitable for Mouchel.

“To date, the Impact Partnership’s annual charges for the core agreed services have remained in line with the projected contract. “However, the annual fee has increased as a result of the council placing additional project work with the partnership.”

Council leader Cllr Peter Charon could not be contacted for comment.

Bournemouth’s Labour group leader Ben Grower said: “I am as surprised as the Rochdale leader that we are going into further arrangements.

“But it shows there’s absolutely no problem with taking services back in-house.”