THE transfer of 1,000 council workers to the payroll of a private company a year ago has been a success, it has been claimed.

Twelve months on, one of the bosses of HBS - Middlesbrough Council's private sector partner - said there was plenty to celebrate.

Regional managing director Tim Lonsdale said the firm has brought new jobs and investment worth almost £9m to Middlesbrough in the first year of its ten-year, £260m contract with the council.

"HBS is here to stay and is making a massive contribution to the local economy, to updating employees' skills and the creation of better quality, accessible services,'' Mr Lonsdale said yesterday.

HBS looks after the council's housing and council tax benefit department and telephone queries. It staffs reception points and provides payroll, personnel and property services.

High points have included:

* The creation of 71 jobs after winning a payroll and personnel services contract for new Government agency, the National Care Standards Commission

* Establishing a single-stop access point for services in the town centre, replacing 12 different reception points

* Almost £5m invested in a new regional business centre

* More than £1m spent on updating and improving the skills of the 900 workers who were transferred.

* An investment of £2.5m on better communications, information and management systems.

Mr Lonsdale said: "In the past year we have invested in people, services and, through the regional business centre, the Middlesbrough and Tees Valley economy.

"In our first 12 months in Middlesbrough, HBS has really put down its roots in the town. We are determined to build on a successful start to a partnership which is already bringing benefits to the town and its citizens.''

He added: "Ensuring better services for the people of Middlesbrough is really the sheet anchor of our business. It's on that performance that the citizens of the town and future customers and partners will judge us. ''

* Redcar and Cleveland Borough Council is in negotiations with a potential private partner, Amey, which is guaranteeing minimum savings of £44.4m over the next ten years and a commitment to creating 622 jobs.