£35m housing contracts announced

DGHP took over control of council properties in 2003

The companies which beat Dumfries and Galloway Council in the bidding process for three housing contracts worth about £35m have been announced.

Connaught Plc in Glasgow, Saltire Facilities Management in Cumbernauld and ISS Waterers Landscape in Kilmarnock were the successful firms.

The loss of the Dumfries and Galloway Housing Partnership contracts has sparked job fears in the council.

DGHP said the move would improve the quality of service for 11,000 tenants.

The council transferred its homes to the housing partnership in 2003.

At that time, DGHP entered into a five-year deal with the authority's combined services department to carry out repairs and grounds maintenance.

Robust process

However, those contracts were put out to tender in June this year as they are due to run out in April 2008.

It subsequently emerged that the council had been unsuccessful in earning any of the three contracts.

That prompted an internal investigation into how the authority had missed out.

The council has since said it was satisfied that a "robust procurement process" had been followed for the contracts it lost.

However, some councillors have voiced concern that the decision paves the way for other services to be given to private firms.

Any council workers affected by the deals will transfer to the new employers and have their pay and conditions protected by employment law.