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Contents Page Independent Review Panel Getting it Right for Wales An independent review of the current arrangements for the financial support of Assembly Members July 2009 The National Assembly for Wales is the democratically elected body that represents the interests of Wales and its people, makes laws for Wales and holds the Welsh Government to account. An electronic copy of this report can be found on the National Assembly’s website: www.assemblywales.org National Assembly for Wales Independent Review Panel Getting it Right for Wales An independent review of the current arrangements for the financial support of Assembly Members July 2009 Independent Review Panel Members Sir Roger Jones, a business entrepreneur, and a former Governor of the BBC and former Chairman of Welsh Development Agency, is Chair to the Panel. He is also a past Chairman of the Institute of Directors Wales, and Chairman of the Committee for Wales of the National Trust. Sir Roger is currently the Pro-Chancellor and holds the Chair of Council at Swansea University. He was awarded an OBE in 1996 for his services to the pharmaceutical industry and was knighted in the 2005 New Year honours’ list. He is also The Republic of Estonia’s first honorary consul in Wales. Jackie Nickson until recently was Human Resources Manager for the Opagus Group Limited. Previously she worked for British Gas in Wales and in their Corporate Centre in London. Her expertise is the introduction of HR policies to meet the strategic aims of the organisation. She specialises in recruitment and selection, Equal Opportunities, recruitment from continental Europe, training and development of graduates, ‘fast tracking’ and relocation of employees. In addition Jackie works as an Independent Member of Misconduct Panels for the Police Authority. Jackie is also an Affiliate Member of the Chartered Institute of Personnel and Development. Nigel Rudd is a former Chief Executive of the East Midlands Regional Assembly. Prior to that, he was at the helm at Corby Borough Council for five years. A champion of regeneration issues, Mr Rudd has worked widely at national levels with Ministers, with regional politicians and local Councillors. He has worked with a number of public-private sector partnerships and forums, covering economic review and policy development. He has been an Advisory Member of the National Centre for Public Scrutiny, providing support for scrutiny work in government, health and other sectors and is a Non-Executive Director for Studentforce, the graduate placement agency. Dafydd Wigley has experience of providing strategic leadership in the private and voluntary sectors and in the political arena. From his 27 year period as MP for Caernarfon and as an AM in the first National Assembly, he has an insight into relevant issues. As chair of the Audit Committee of the Assembly, he has experience of Value-for- Money exercises. His industrial experience as a former Chief Cost Accountant of Mars Ltd and Financial Controller of Hoover Ltd is also relevant. He chaired the Audit Committee of S4C (2003-06) and currently chairs the Advisory Board of Bangor University School of Business. He was Plaid Cymru President, 1991-2000. Acknowledgements The Panel acknowledges the support it has received from: Secretariat Christopher Reading, Clerk Annette Stafford, Deputy Clerk Catherine Domican, Secretarial Support Helen Finlayson, Secretarial Support Research Professor Laura McAllister, University of Liverpool Dr Alys Thomas, Members’ Research Service Independent Legal Adviser Emyr Lewis, Morgan Cole Chair’s Foreword It has been a pleasure to serve as Chair of the Independent Review Panel. The Assembly Commission gave us the challenging task of delivering a system of financial support for Assembly Members that is fair and transparent and which represents value for money. The fact that this review was necessary does not imply any criticism of the National Assembly for Wales or its Members. When we started our work, we could not have anticipated the dramatic events still unfolding in Westminster. Whilst being aware of the review of the Westminster system currently being undertaken by the Committee on Standards in Public Life, our inquiry is completely independent. One of our key recommendations is that the coupling between the pay of Assembly Members and that of Members of Parliament should be broken. We consider it neither appropriate nor desirable that the current direct link be maintained. We applaud the Presiding Officer and the Assembly Commission for having the foresight to establish this review last summer. The Commission has already published comprehensive information on Assembly Members’ expenses claims and will do so regularly from now on. Transparency is the key to a fair system that commands public confidence. Assembly Members work hard for the people of Wales and deserve their respect. Our deliberations have been guided by a set of principles that are set out in this report. In framing our recommendations, I feel we have been radical but fair. We have taken a broad view of our remit, not just tinkering with the current system but giving it a major overhaul. Most of our key recommendations will take effect before the next National Assembly election in May 2011. We hope that Assembly Members will take all our recommendations to heart and start the process of change now, particularly regarding the need for more training and development for themselves and their staff. I wish to thank the Panel members and our support staff for their hard work. I would also like to thank all those who took the time to submit evidence, either in writing or in person. I am particularly grateful to current and former Assembly Members and their staff for their constructive support. Our recommendations will deliver a first class system of financial support for Assembly Members. When implemented, our recommendations will enable the Assembly to develop as a learning organisation and be appropriate for Wales going forward. I commend this report to the Assembly Commission. Sir Roger Jones Contents Chapter 1: Executive Summary......................................................................1 Chapter 2: Our Approach ............................................................................17 Chapter 3: Principles...................................................................................26 Chapter 4: Context and Capacity.................................................................31 Chapter 5: Pay, Pensions and Arrangements on Leaving Office....................47 Chapter 6: Residential Accommodation.......................................................71 Chapter 7: Office Accommodation...............................................................85 Chapter 8: Assembly Members’ Employees ...............................................102 Chapter 9: Training and Development.......................................................129 Chapter 10: Information and Communication Technology.........................142 Chapter 11: Travel ....................................................................................150 Chapter 12: Administration, Audit and Standards......................................162 Chapter 13: Implementation and Transitional Arrangements and Financial Matters ...................................................................................176 Appendix 1: Salaries and Allowances Determination 2009 and Determination 2006 (Section 18) ...................................................................183 Appendix 2: National Assembly for Wales Strategic Goals..........................219 Appendix 3: Legislative Framework...........................................................221 Appendix 4: Schedule of Consultation Responses .....................................223 Appendix 5: Schedule of Witnesses ...........................................................225 Appendix 6: Code of Conduct for Assembly Members ...............................227 Appendix 7: Expenditure on Pay and Allowances 2008-09.........................234 Appendix 8: Comparative Salaries for United Kingdom Politicians .............235 Appendix 9: Salary Procedures – International Comparisons......................239 Appendix 10: Abstract from Members’ Pension Scheme Handbook ...........240 Appendix 11: Location of Regional and Constituency Offices (Maps) .........257 Appendix 12: Staff Handbook – (Proposed Contents).................................259 Appendix 13: Employment of Family Members (Draft Standing Order).......263 Appendix 14: Vehicle Operating Costs ......................................................266 Appendix 15: Note from the Auditor General ............................................267 Appendix 16: Audit Process – Suggested Timetable ..................................273 Chapter 1: Executive Summary 1.1 This report reviews the current arrangements for the financial support of Assembly Members. It recommends improvements to deliver a package of pay and expenses that is right for the National Assembly for Wales moving forward into its second decade and beyond. The recommendations are aimed at providing a complete system of financial support for Assembly Members which is robust and fit for purpose. The Panel’s recommendations are set out at the end of this Executive Summary, and the reasoning behind them is set out in the relevant chapters. 1.2 There is no doubt in our minds that Assembly Members must be given the means to ensure that they can undertake the role for which they have been elected. Equally,
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