MULTI-MILLION pound plans to transform local government in York and North Yorkshire will cost jobs, a leading public service union has claimed.

UNISON has urged nine councils in York and North Yorkshire to reconsider their proposed deal with York IT company Agilisys to open a centre bringing "high tech solutions" to local government, or "e-government".

City of York Council and North Yorkshire County Council are both involved.

UNISON has also written to the Treasury with its objections, and has raised concerns over Agilisys's lack of experience in local government.

Regional officer Phil Booth said: "The plan would lead to the direct loss of jobs in the nine York and North Yorkshire councils.

"The company's approach would benefit itself rather than the end users, the citizens of North Yorkshire."

The proposed deal would be to provide a range of "e-government" products and services for the nine councils.

Residents would be able to make one-stop phone calls, send e-mails or make interactive internet calls to deal with their local authority concerns.

An "e-government" showroom, dubbed Access 24:7, has been set up by Agilisys at Heworth, and was opened last month by the York MP, Hugh Bayley.

Charles Mindenhall, Agilisys's chief operations officer, said that the proposals would create jobs, not cost them.

Mr Mindenhall said: "The project would stimulate the local economy and bring more jobs to the area. At the same time, the improved access to services will mean there is likely to be growth in services overall. Both of which will mean an increase in the number of people working for the local authorities.

"This project has already resulted in the creation of more than 100 jobs at Agilisys and many more will be created across North Yorkshire as this project proceeds."

Quentin Macdonald, City of York Council's executive member for resources, said the proposals were part of the national move towards "e-government".

Coun Macdonald said they were part of the move to meet a central government ruling that states that all council services must be available electronically by December 31, 2005.

He admitted the move to "e-government" would mean change in the council system - but said it would be handled carefully.

"I want it to be evolutionary, not revolutionary," Coun Macdonald added.

Simon Wiles, the city council's director of resources, said the council did not anticipate any redundancies from the project.

Updated: 08:39 Friday, October 24, 2003