A COUNCIL chief has refuted claims that services are to be privatised, arguing that the authority will retain ultimate control.

Earlier this month, Middlesbrough Borough Council announced it planned to become the first in the North-East to engage in a "strategic partnership" with a private firm.

Under the scheme the company, due to be selected from four main contenders, will be responsible for delivering an agreed package of council services.

While the council has yet to choose its partner from the ranks of Aimy, Capita, Hyder and PricewaterhouseCoopers, it anticipates that up to 800 jobs could be affected by the transfer of services.

This has prompted fears by current employees that their livelihoods could be at risk.

But John Foster, the council's chief executive, claimed last night that all existing jobs would be safe.

He said there would be no question of the partner "taking over" services.

"If we transfer a job to the private sector, the person who does it will go with it," he said.

"There will be protection for current employees, and their terms and conditions will still apply.

"Ultimately, the partnership arrangement will be overseen by a board which will have members of the council on it.

"Whereas the operational responsibility will rest with the service provider, the council will still be ultimately responsible."

Mr Foster said the scheme will allow the authority to deliver enhanced services in a range of areas.

"We firmly believe that the strategic partnership is a cost-effective and creative way of delivering an improvement in the quality of services provided by Middlesbrough council," he said.