The decision to outsource the management – but not the ownership – of the 5,650 council houses in Ellesmere Port and Neston, together with 292 leased properties, was finally reached after a challenge from three-quarters of the opposition Labour group on Cheshire West and Chester Council. DAVID NORBURY reports

The call-in over the housing decision was sparked by Labour group leader and Ellesmere Port councillor Derek Bateman (Central and Westminster).

It followed a decision by the council’s regeneration director, Charlie Seward, to back a recommendation by the Ellesmere Port and Neston housing stock panel that the procurement of an external management service should go ahead.

The panel believes the move ‘offers the best way to ensure tenants and leaseholders receive excellent services in the future and regeneration benefits are maximised’.

Lining up to back Cllr Bateman were former borough leader Cllr Justin Madders (Central and Westminster), former borough housing chairman Cllr Angela Claydon (Grange and Rossmore) and local councillors Paul Donovan (Sutton and Manor), Lynn Clare (Central and Westminster) and Grange and Rossmore councillors Pat Merrick and Tony Sherlock.

They were joined by Chester councillor Alex Tate, representing Blacon, where social housing is provided by the Chester and District Housing Trust.

The decision was opposed at the panel meeting by Cllr Claydon and Cllr Donovan, who asked for their names to be recorded.

Labour argued the contentious issue had not been discussed adequately and that opposition councillors – the housing panel, chaired by Ledsham and Willaston councillor Myles Hogg (Con) has a Tory majority – had not been fully briefed on the consequences.

Labour claimed they were not clear about the costs involved in the change and whether value for money could be assured.

They pointed to interim management arrangements being ‘an excessive burden on the housing revenue account’ and believed temporary staff who were appointed had received ‘excessive remuneration’.

Cheshire West and Chester Council’s community select panel probed reports on the proposed transfer and scrutinised issues including:

The results of consultation on the proposal.

The opportunities given to tenants to express their views.

Improvement works undertaken in the past on the housing stock.

The homes which would be involved in the transfer.

The opportunities for local councillors to attend meetings of the community housing panel.

Tenant representation on it.

Staff consultation and transfer arrangements.

Information provided to councillors on the cost and consequences of the transfer and the cost of consultants involved in the project were also considered.

The select panel agreed it did not wish to offer any advice to Mr Seward on his decision to outsource the service, allowing it to stand.

The next step was taken last Friday when, meeting behind closed doors, councillors agreed the arrangements for identifying a preferred bidder for the contract.

A shortlist of between five and eight organisations is expected to be drawn up by the beginning of May, with the preferred bidder emerging by the end of December.

The successful housing management contractor is expected to take over at the beginning of April 2012, initially for a three-year period.