Three north and north-east councils are in talks to combine their buying power in a radical experiment that could save them millions of pounds each a year.
In an era of slashing budgets due to government funding cuts, Highland, Aberdeen and Aberdeenshire Councils plan to merge their procurement departments, which are responsible for buying all supplies and equipment.
City and shire officials met last month with the focus on “collaboration, avoiding waste and developing commercial initiatives”.
And next week, on the eve of their next resources committee, Highland councillors will be briefed on the idea by their officials, who have been in conversation with their counterparts to the east.
The entente promises a combined buying power of more than £1billion and cumulative savings of £22million for the three authorities over five years.
Highland Council chiefs say it would “improve staff morale, with more and varied career opportunities to attract and retain good people.”
Speaking to the Press and Journal yesterday, Highland finance director Derek Yule said: “It’s a tremendous opportunity for a whole range of reasons, not purely financial savings but the ability to work collaboratively.”
The north-east councils have acknowledged a “significant similarity” of their spending profiles. They believe the partnership would add muscle to their efforts to address austerity pressures.
Highland officials have been drafting the business case late last year and calculate an annual saving for their authority of £6.8million.
Aberdeenshire’s estimate is £7.3million while Aberdeen City Council (ACC) foresees a yearly saving of £7.8million.
ACC finance convener Willie Young said: “This is the way forward for local government. We feel we’re so far away from the centre that we’re not loved. This gives us a huge opportunity to make savings and be efficient.”
He considers it “a small risk” that such a move would pave the way for widespread centralisation of council responsibilities.
Highland’s 14-strong procurement team would remain in Inverness and five additional jobs would be created if the idea is approved.
Moray Council’s procurement underwent restructuring in 2010 to cut its costs by about £1.8million a year.
A spokesman said: “We’ll continue procurement operations in-house, but will continue our practice of seeking joint working opportunities with neighbouring authorities where further savings are identified.”
