Shropshire Council's road repair contract decision is explained

Ringway has spoken out on its decision not to seek an extension to its six-year contract, which also jointly covers Cheshire and Chester councils, when it expires in 2018.

Shropshire Council Leadere, Malcolm Pate, revealed that the firm would not be continuing when he spoke at a meeting of full council last month.

The company, which has been criticised for its operation of the contract, now says the agreement, worth around £42 million a year, which was signed in 2011, "has left many commercial issues to be resolved".

Ringway had the option to seek a four-year extension to the contract.

Company spokesman Seabury Salmon, confirmed the company's role in deciding not to seek a contract extension.

He said: "The contract with Shropshire Council will run for its full term of six years until March 31, 2018. Following agreement with the council we will not pursue extensions to this contract. The existing contract has not operated as we envisaged at tender stage as a combined highway authority and there have been a number of significant changes to the way the service is delivered. This has left many commercial issues to be resolved and we also understand that the authority wishes to review the operating model for the new contract."

The company has also said that the decision not to seek a contract renewal had partly been taken because it has not been listed for work beyond 2018, something which would have an impact on its staffing numbers.

It has also defended its performance saying it has reached a "very high level".

Mr Salmon said: "The published performance on the Shropshire Contract has continued at a very high level for the past annual period and we are committed to continuing this performance through to the end of the contract in 2018."

Ringway describes itself as one of the leading providers of highway services in the UK, saying it is "renowned for consistently delivering cost-effective performance and sustainable, innovative solutions."

However, there have been a number of problems with the Shropshire contract, as confirmed by Councillor Simon Jones, cabinet member for highways.

During a meeting last year councillor Jones revealed that "high level meetings" had taken place after a number of operational issues.

He said: "The relationship with the contractor has been rocky in the past. There have been high level meetings ongoing with the contractor and I can quite confidently say we are now in a position where things are improving."