NHS Western Isles invited to attend nursery meeting

A committee at Comhairle nan Eilean Siar has adjourned to allow an invitation to NHS Western Isles to attend the meeting to explain its decision to withdraw funding for the Little Teddies nursery.

The Education and Children’s Services Committee was discussing the issue yesterday but decided there seemed to be significant differences between the information the Committee had and what the Health Board were saying.

As a result they decided to re-convene next week and invite Members of the Health Board and senior management to the meeting to explain their reasoning on withdrawing their element of the funding.

“41 pre-schoolchildren”

Committee Chair Morag Munro said: “It is only reasonable that the Health Board are given the opportunity to give their side of this issue and that Councillors, and the public, have the fullest, accurate, information. The Comhairle entered into an agreement with the Health Board to provide this vital service. Now the Health Board has withdrawn from that agreement and jobs and the service are at risk. The Health Board knew the service would have to be subsidised and yet they agreed to the SLA. They have been kept informed all along the way of the financial position, despite some of their statements to the contrary.

The Comhairle is looking at what alternative arrangements can be made but we still want to hear from the Health Board why they have put these jobs and the essential service that is provided for parents, and indeed their own workforce, at risk.”

Comhairle nan Eilean Siar took over the management of Little Teddies after NHS Western Isles experienced difficulties in running the service and asked the Comhairle to help. Staff were transferred to the employment of the Comhairle.

In July 2008 a Service Level Agreement (SLA) was signed by both NHS Western Isles and Comhairle nan Eilean Siar.

Within the SLA it was proposed that 41 pre-schoolchildren places be offered 52.5 hours a week, 50 weeks of the year.

“£30,000 overspend”

It was accepted that the nursery would run at a deficit. Both NHS Western Isles and the Comhairle accepted equal financial responsibility and agreed a £494,869 budget inclusive of a subsidy of £155,000.

Several factors then contributed to an overspend which at the time of the NHS withdrawal, was anticipated would be in the region of £40,000 for the year 2009/10. Previously there had been no overspend on the SLA. The 2009/10 overspend was as a result of paying increased salaries because of Single Status, maternity leaves and high rates of staff sickness. NHS Western Isles was kept fully informed of the likely deficit. At a financial meeting as early as June 2009 the deficit was identified and reported to NHS Western Isles.

This overspend is now nearer £30,000 due to a better than expected financial performance.

Approximately 12 Comhairle families (14 children) and 31 NHS Western Isles families (34 children) currently use the service. 45 families (51 children) working at other organisations use the service.

The Comhairle has confirmed that it remains willing to contribute its share of the £155,000 subsidy and its share of the £30,000 overspend.

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