THE prospects for Worcester City Contract Services are uncertain after questions were raised about its viability.

A draft report on the future of Contract Services - which employs around 230 people - will be presented to the city council's policy and resources committee next Wednesday, August 30.

"We're losing work and we're no longer viable," admitted the department's chief, Keith Middleton.

He said Contract Services, which was formed in 1989, had lost out because several key functions had been transferred.

The department used to carry out agency work for Severn Trent but the water company has taken on workers formerly employed by Worcester City Council.

Highways maintenance will no longer be a city council job from next year.

Worcestershire County Council has awarded the contract to a firm called Raynesway, and from March 2001, the council will lose responsibility for gritting as well as repairing roads within Worcester.

A question mark also hangs over the department's offices in The Butts, as Kimberley Developments wants to develop the land next to the former cattle market and build houses, as well as a superstore for Asda.

Mr Middleton, who has worked for Contract Services since it was formed from the public works department 11 years ago, said he was waiting to see whether he and other senior staff would be made redundant.

"You can't have a director if there is no department to direct," he said.

"There will always be a need for manual staff, because someone's got to empty bins and sweep the streets, but any redundancies should be minimal."

Workers might be split into groups and transferred to "client" departments at Worcester City Council, said Mr Middleton.

Members of the policy and resources committee will hear a further report in October before deciding on whether to disband Contract Services.