SNUPI merger update from Richard McGloin

As many of you will be aware, the TUCO AGM last July gave the Chairman's Group a mandate to explore the possibility of a merger between TUCO purchasing and Scottish and Northern University Purchasing Initiative (SNUPI). Comprehensive talks have taken place with SNUPI during this period on the shape of any future purchasing organisation, and, as part of this process, TUCO has been seeking legal advice about its tax and VAT status should it move into any new arrangement in the future.

This process has taken longer than expected and has raised several questions as to how the organisation is managed; not just with regards to purchasing but also all other elements of TUCO's business (e.g. training and competitions). Further advice is being taken to ensure the best interest of the organisation is served, and it is imperative that any changes allow the organisation to develop all aspects of its work.

Furthermore, I also wrote to you late last year to inform you of the agreement to collaborate with SNUPI in a joint process to tender for the Ambient and Chilled contract. This was seen as an opportunity for both organisations, and the completion of this joint tender was planned to coincide (subject to members’ approval) with any future merger in early August.

At the Chairman's Group this week it was agreed that TUCO is currently not in a position to make recommendations on proposals for a merger between both organisations to our members. Therefore we will not be able to meet the August deadline, and it was agreed that the best interests of TUCO would not be served by proceeding with the joint tender at this time, and that we should withdraw from the process with immediate effect.

In the interim, to ensure members’ purchasing interests are protected, discussions will take place with CEL whose contract ends on October 2009, to extend their current contract. We have also instructed CEL to tender the Ambient and Chilled contract; it is intended to have a contract in place for August.

Merger talks will continue with SNUPI and I intend to use the AGM at the
University of Birmingham in July to discuss further and update members
on the position at that time. If you have any questions please don't hesitate to contact myself or the following people

r.mcgloin@shu.ac.uk

j.main@rhul.ac.uk

j.barker@bton.ac.uk

barry.trahar@bristol.ac.uk

Best Regards

Richard.