Clwyd County Council plans sale of DSO

CLWYD County Council is considering selling off Clwyd Commercial Services - the direct service organisation (DSO) responsible for school meals, cleaning and ground and vehicle maintenance.

The option is one of three being examined by the council's commercial services board as a result of a disastrous financial year in which the DSO is expected to make a £1.5m loss, of which £1m is accounted for by school meals.

The other options are to continue with the DSO in its present form after instituting certain safeguards, or to separate the services and then look at different solutions for each.

A consultancy is believed to have been appointed to approach contract caterers to see whether they would be interested in either buying the DSO or taking over its contracts.

Both BET Catering Services and CCG Services told Caterer they would be interested in talking to Clwyd if they were approached by the council.

A total of six options were presented in the private consultant's report, which is believed to have led to the resignation a fortnight ago of the DSO's director, Paul King (Caterer, 3 February).

The report is said to put much of the blame for the loss on an increase in school meal prices last year and a drop in quality.

The number of children buying meals tailed off and turnover is believed to have dropped from £7m in 1992-93 to £4.5m in 1993-94.

Tom Jones, chairman of the council's commercial services board, described the DSO's situation as serious, but said the council would take only "considered action" in consultation with trade unions and customers.