4 I
AhENoAtTlEM)k, NORTH LANARKSHIRE COUNCIL ~
To: POLICY & RESOURCES COMMITTEE
1. Introduction
1.1 The Scottish Office has recently published for information and consultation a document entitled "Open and Accountable: Public Bodies in Scotland" which seeks to provide information on executive Non-Departmental Public Bodies and similar bodies such as health authorities in Scotland.
1.2 The document sets out plans to improve openness through increased accessibility and new appointment procedures: and identifies steps undertaken within the Scottish Office and public bodies to improve their management and supervision.
1.3 COSLA has circulated the document to local authorities and invited comments on the consultation paper by 9 September 1996 in order to assist COSLA in preparing its response to the document.
1.4 A copy of the Scottish Office paper is annexed as Appendix 1. Although the paper is consultative insofar as the Secretary of State has made clear that he will consider carefully all views on the document which are received, in large measure, the document is drafted in such a way as to give factual information on steps which have been taken or decisions taken within the Scottish Office in relation to improvement of the management and supervision of these public bodies.
1.5 The document firstly seeks to describe the non-departmental public bodies which are the principal subject of the document, identifying that "quangos" is a commonly used general term to cover nationalised industries, public corporations and NHS bodies in addition to non- departmental public bodies.
1.6 The document is intended to cover the non-departmental public bodies (NDPBs) with executive responsibilities in Scotland and NHS bodies (Health Boards and Trusts).
1.7 In addition the document also examines arrangements for supervision of the twenty two local enterprise companies (LECs) and also looks at the supervision of the water and sewerage authorities. 4 1 2
2. NDPBs
2.1 The document identifies that there are thirty nine executive NDPBs for which the Secretary of State is responsible and sets out the arrangements for accountability which the Secretary of States explains is kept under continuous review by the Government. The paper identifies that increased Parliamentary and public awareness of NDPBs activities in recent years has led to greater scrutiny by Government and increased guidance both for sponsoring Government departments and for NDPBs.
2.2 Overall these public authorities account for some €5.7 billion of expenditure in Scotland.
2.3 The document sets out the wide variety of arrangements which have traditionally existed for ministerial supervision of NDPBs and explains that a review within the Scottish Office in 1994 has led to greater consistency of oversight, the setting of targets for strategic relationships with NDPBs, better articulation of the respective roles of NDPBs and sponsoring Government departments and training for NDPB board members and Scottish Office sponsors.
2.4 These arrangements are set out in the document from which it is clear that there has been a variety of accounting mechanisms between NDPBs and sponsoring departments which the Scottish Office is now seeking to standardise on a consistent basis. The basis of this accountability is that NDPBs and their boards are answerable to Ministers who are in turn answerable to Parliament. The document establishes that NDPBs operate under specific conditions which may be based in statute but, in any event, are set out by operating arrangements with sponsoring departments with regular reviews at least at five yearly intervals. In addition to setting out the audit arrangements, the senior official of NDPBs is given responsibility for ensuring that the authority acts properly and regularly and with due regard for value for money.
2.5 Since 1994 a Code of Practice on Government Information has set out requirements in relation to openness, the keys principles of which require the authority:-
- to give full facts and analysis with major policy decisions
- to open up internal guidelines about dealings with the public
- to give reasons with administrative decisions
- to provide information under the Citizen's Charter about public services, and
- to answer requests for information.
2.6 However the document establishes that not all NDPBs are subject to the mandatory requirements of an overriding code and many are subject to encouragement by the sponsoring departments rather than mandatory requirement.
2.7 The document sets out the intention of the Scottish Office to prepare a best practice guide on openness and accessibility with a view to all NDPBs having a code allowing for access "as appropriate" and with the intention of maximising information available about the authority's activities. This may be compared with the statutory requirements which are prescriptive on local authorities in relation to publication of a wide variety of information including public accessibility to Council and committee agendas, minutes, background papers as well as the public's right to attend meetings unless particular statutory reasons allow for exclusion of public access. 3
3. Reviews
3.1 NDPBs are reviewed by sponsoring departments at regular intervals, normally five years and the outcome of these reviews is publicly announced, usually through Parliament. The document establishes that for the future these reviews will continue to be conducted in accordance with principles of increasing openness and consultation, with the reviews being publicised and views being invited from interested parties, and with the involvement of external participants.
4. Management Statements
4.1 As noted earlier, the Scottish Office is moving towards a standardisation or codification of the relationship between sponsoring departments and NDPBs, these being principally governed by Management Statements, being documents prepared by the sponsoring Department in consultation with the NDPB. Management Statements now exist for twenty seven of the thirty nine executive NDPBs for Scotland. It is the declared intention that Management Statements will be in place for the remaining NDPBs by the end of 1996.
5. Code of Best Practice for Board Members
5.1 A model Code of Best Practice for members of public bodies was published by the Government in 1994 and sent to all executive NDPBs in Scotland stating that:-
"public bodies and their boards must at all times observe the highest standards of impartiality, integrity and objectivity in relation to the stewardship of public funds and management of the bodies concerned".
The model Code sought to place obligations on board members to
- comply with all reasonable requests for information
- be accountable for their activities to Parliament, users of their services, individual citizens and
- maximise value for money
5.2 In addition the model Code sought to define responsibilities of the chairman, the corporate responsibility of board members and the responsibilities of individual members.
5.3 Once again a comparison may be drawn with local government where for some years members have been subject to the requirements of the statutory National Code of Local Government Conduct in defining standards of behaviour and conduct in relation to councillors carrying out their duties.
5.4 The Government has accepted, in response the report of the Nolan Committee, that the adoption of a code for board members should be made mandatory. Thirty NDPBs in Scotland already use the model code prepared by the Scottish Office or one they have adapted to their own circumstances: and it is the Secretary of State's intention that all remaining NDPBs should have adopted an appropriate code by April 1997.
5.5 It may be suggested that the adoption of codes of practice which are lacking in statutory authority and which lack a commonly prescribed format for all NDPBs falls short of the prescribed statutory Code which provides uniform guidance for councillors in the way they should approach their duties. 1 4
6. Board Members Conflict of Interest
6.1 The model code issued by the Secretary of State covers the issue of how to deal with conflicts of interest and the code suggests that NDPBs must retain a register of interests for inspection. It is clear that there are a variety of practices within Scottish NDPBs and the document explains that while almost all authorities have explicit arrangements to deal with such matters only half maintain a register of interests and only some of these are either published or available for inspection. It is the Government’s intention that new arrangements for registering interests, including the publication of information, will apply to all Scottish NDPBs.
6.2 Once again a comparison may be made with the prescriptive requirements for a statutory register of members’ interests within local government.
7. The Accounting Officer and Staff Conduct and Training
7.1 The paper sets out the Accounting Officer arrangements in terms of which NDPB Chief Executives are normally designated as Accounting Officers with responsibilities for overall organisation, management and staffing. In addition, the Government has agreed with the recommendations of the Nolan Committee that a Code of Conduct for Staff will be prepared which will be mandatory.
8. Appointments
8.1 The paper assets the Government’s belief in the principle of selection on merit and seeks to ensure that procedures for appointment and selection should be clear and well understood and that appointments should be seen to be free from suggestions of bias. These principles are set out in guidance from the Commissioner for Public Appointments, an office which was established by the Government as a result of one of the earlier recommendations from the Nolan Inquiry Committee. In this respect the document sets out the arrangements for a Health Appointments Advisory Committee to advise the Secretary of State of non-executive appointments to Scottish Health Boards and NHS Trusts. The Secretary of State also declares his intention to establish an Advisory Panel, to be set up by each Scottish Office Department which will be responsible for scrutinising lists of candidates for particular posts. These arrangements will include provision for advertising for candidates when this is considered appropriate.
9. Water and Sewerage Authorities
9.1 The document narrates the accountability framework between the Secretary of State and the Water and Sewerage Authorities where again the Secretary of State is accountable to Parliament for the actions of these authorities.
10. The Enterprise Network
10.1 There is a particular section in the document dealing with the twenty two local enterprise companies and the oversight exercised through Scottish Enterprise and Highland and Islands Enterprise. Local Enterprise companies are not NDPBs insofar as the relationship with central Government differs from NDPBs. For instance none of the LEC members is appointed by the Secretary of State and LEC are private companies limited by guarantee. Nevertheless some of the issues of accountability through Ministers to Parliament are common and the document establishes the accountability arrangements and the five yearly review arrangements which similarly exist with NDPBs. 5
11. NHS Bodies
1 1.1 The Secretary of State's paper comments that the Health Service in Scotland is an industry in its own right with a workforce in excess of one hundred and forty thousand and a turnover exceeding €4 billion. There has been significant change in the last four years in the delivery of health services throughout the country, the most obvious being the establishment of forty seven NHS Trust, providing services under contract to the fifteen territorial Health Boards and GP Fundholders.
11.2 The Secretary of State refers to his establishment of an NHS Policy Board for Scotland to assist him in holding central management to account for the achievement of Government policy objectives. The board's membership is to include healthcare professionals and others.
11.3 In terms of accountability, the document recognises the public interest in accountability for decisions made by local health bodies and assets that the delegations of functions and responsibility to health bodies does not diminish their accountability to the Secretary of State. Health Boards are required to adhere to Codes of Practice on Accountability and Openness and reference is made to the arrangements whereby health bodies demonstrate their openness by holding meetings which are open to the public. Reference is made to the fact that each NHS Trust holds at least one public meeting a year and the Secretary of State believes that providing the public with access to such meetings is good practice. The Code of Practice on Openness in the NHS in Scotland advises NHS Trusts that:
"providing the public with access to more frequent general meetings or to Board meetings is good practice already followed by an increasing number of Trusts".
The Secretary of State has asked the Management Executive to write to those Trusts which have not as yet opened their formal meetings to the public to remind them of the advice set down in the Code.
11.4 Once again a comparison may be made with the prescriptive requirements in relation to openness in local government whereby as a general rule meetings are hope to the public who are entitled to have access to papers unless there is particular reason for these being withheld based on statutory grounds and who are entitled to attend meetings and listen to the considerations involved in debate and decision making within councils.
11.5 In relation to access to information it is the Government's intention to ensure greater public access to information about the provision of health services in Scotland and the Government expects that all bodies will responde quickly and positively to requests for information.
11.6 In relation to appointments over three hundred individuals serve in a non-executive function in a Health Board or NHS Trust and the paper explains that over seventy per cent of the most recent appointees came to the attention of the Scottish Office through either responding to advertisement or nominating themselves as candidates.
11.7 As mentioned earlier, a Health Appointments Advisory Committee was established in 1994, currently chaired by the former Lord Provost of Edinburgh and the Secretary of State cites this as demonstrating the openness adopted by the Scottish Office when seeking to make appointments to health bodies. From July 1996 a new Advisory Panel will be formed to advise the Secretary of State on the appointment of chairmen to health bodies in Scotland and its procedures are to follow those earlier described for the Advisory Panels for NDPB appointments. 6
12. Conclusion
12.1 In its conclusion to the paper the Government restates the great importance attached to the maintenance and development of high standards of performance and accountability in public bodies. While the work of the Nolan Committee has given added impetus, the paper asserts that much work has already been undertaken within the Scottish Office and the NDPBs themselves.
12.2 The conclusions to the report re-assert the Secretary of State's intentions to enhance and develop what he regards as best practice on a range of issues and for codifying and standardising the documents setting out the relationship between the Scottish Office as a sponsoring Department and individual NDPBs and similar bodies.
13. Comment
13.1 As noted earlier in this report, while views are invited on the Secretary of State's paper much of the purpose of the paper appears to be predominately to disseminate information rather than canvass for views within local government and elsewhere.
13.2 As also noted earlier COSLA intends to prepare a response on this matter. However the Council would wish to take the opportunity of restating earlier representations, particularly those expressed at the Policy and Resources Committee meeting of 31 October 1995 when the Committee approved a report on a response to the second study by the Nolan Committee of Inquiry, that on Local Public Spending Bodies. In that report the Council wished to endorse the approach being taken by COSLA to emphasise the need to reduce to scope of the "unelected state" and reinforce the view that the controls and standards applied to local authorities should be applied to all organisations in the public sector. The view was also expressed that there should be an emphasis on the significant shift in budgetary resources within recent years out of direct democratic control to appointed bodies or bodies where there is only limited scope for control or influence on behalf of local councils who, as well as being responsible for delivery of a wide range of services, provide a general representation role through a democratic mandate.
13.3 In addition the Council has in the past expressed the view that it is important to examine issues of appointment and accountability of board members as well as the adequacy or otherwise of measures to safeguard any potential conflict of interests. In this respect elected local authority members are subject to detailed accountability both through the democratic process as we1 I as through statutory legal restrictions, the Accounts Commission mechanisms, and, within recent years, the National Code of Local Government Conduct. Local government is now significantly regulated and the Council took the opportunity at an earlier stage to emphasise that controls of at least the same standard should be required elsewhere in the public sector to ensure proper scrutiny and accountability for public funds and decisions on public services.
14. Recommendations
14.1 That the Committee note the terms of the document published by the Scottish Office "Open and Accountable: Public Bodies in Scotland", and 7
14.2 That the Committee authorise representations as a response to that document in terms of this report, both to the Scottish Office direct and through COSLA.
Enc
public.bod APPENDIX 1
I THE SCOTTISH OFFICE
Open and Accountable:
Public Bodies in Scotland
JULY 1996 FOREWORD
I have decided to publish this document because of the increasing au'arenesb snJ li\.elv public debare o\'er the accountabiiity and accessibilitv of public hdiej. 1 uish to dispel the misconceptions lvhich surround these bodies. ro shi>\\, my commitment to the continuing pursuit of the highest standards and best practices in their management and supervision, and to y\.e the opportunirv tor the \videst possible expression of \.le\\. on these issues. I \\.ant tc ensure that NDPBs continue to be fullv accountable to those they serve. and are seen to be so.
Public bodies come in many forms. The Scottish Office is responsible tor more executive non-departmental public bodies than any other Go\.ernmenr Department, reflecting the range of the Secretary of State's responsibilities. They perform a \vital role in securing the provision of a wide variety of senicrs. They are held strictly to account for what they spend and their members are expected to contorm to the highest traditions of public service. and give substantially of their time. often for little or nothing in the way of remuneration. Nevertheless their role is not aluavs ivell understood.
I have three aims for this document:
to inform-ir contains facts on a large number of public bodies, and on hoiv thev are controlled, ivhich I hope will be instructive and clear up misunderstandings:
to identi~the steps already taken or being taken by the Go\wnmenr to impro1.e the management and supenrision of public bodies and to set out my plans for further irnproiving openness through increased accessibility and neiv appointments procedures;
to promote discussion. 'nv inviting \.ie\vs on these matters: I wanr to hear from the \\.idest interests. and issue i-l general invitation for comment.
I will consider carefull\ all vie\is 1 receive. it 15 \.er\. much in the public interest that these bodies should operare u.ith the highest integritv and efiiciencv and that their accountabiiiti tor the use of public funds should be clear and unambipuoub
MICHAEL FORSYTH
3 CONTENTS
Page - 1 Introduction
--l Non-Departmental Public Bodies 9
3 The Enterprise Network
4. NHS Bodies 26
5. Conclusion 19
Appendix 1 Executive NDPBs in Scotland 32
.4ppendix 2 Kev Guides and Reference Documents 37
.4ppendix 3 Health Appointments Advisory Comminee 38
Appendix 4 NHS Trusts and Health Boards 39
5 1. INTRODUCTION
1.1 This paper looks at certain public bodies in Scotland and re\.ie\v> rhe key controls under ivhich they operate, hwv these have been changing to retlei: changing public espectations of accountability, how this process is ?;et tc)
continue. uith particular importance attached cc7 greater openness ,nJ accessihiliry. how appointments are made ro these bodies. and ho\v the appointments process is also set to change. again with the introduction ot greater openness to the procedure by tvhich Ministers make their appointments.
1.2 Broadlr speaking a puhlic hod1 is one some or all of whose members are appointed bv Ministers and which: . - has a role in public administration and provision of services. hut - is not a pvemment department. and - operates at arm; length from Ministers
Different terms are used to describe public bodies. "Quangos" is a common general term. It has no single definition. but is often used to cover nationalised industries, public corporations and National Health Service bodies in addition to non-departmental public bcdies. This document concentrates on txvo key groups. Betiveen them they \vi11 account for some f5.7 billion of expenditure irom the Secretary oi State's programmes in 1996-97. These are:
- the non-departmental public bodies ( NPDBs! ivith executi\'e responsibilities in Scotland; and - the NHS bodies-health boards and trusts-through which NHS service?;are delivered in Scotland.
1.3 There are two other type>oi NDPB:
- advison NDPk. uwillv composed ot esperts in a particular field. to advise Xlinisrers and their Departments-Scottish examples are the Building Standards Advisory Committee, the Historic Buildings Council for Scotland and the Parliamentary Boundary Commission; - tribunals. ivhich have an essentially judicial function-Scottish examples are the Children's Panels and the Rent ,4ssessment Panel t'or Scotland.
This document does not consider either of these. They perform a vitally important role. but have tew or no executive responsibilities; and they are not responsible for significant levels of espenditure.
7 1 1 .As far as other publicly funded bodies are concerned, the paper also 10oL.s at the arrangements for the supemision ot the 12 local enterprise companies (LECs) The\ have particularh close links with two of Scotland's largest SDPBs- Scottish Enterprise and Highlands and Islands Enterprise4elivering man\ ot their responsibilities for enterprise. environmental and training sen'iceb and
being responsible for a substantial part of the €470m which these two NDPBb H 111 spend in 1996-97 It also looks at the supenision of the water and sewerare authorities.
1.5 This document does not, however. cover housing associations or educational bodies-higher education institutions, further education colleges and the small number of schools directly hnded by The Scottish Office. Their methods of governance are different. They may have substantial sources of income other than the Government. Ofcour'se, they receive significant government funding, and for that reason they work under control arrangements similar to those described later for NDPBs. The controls for schools and further education colleges are operated directly by The Scottish Ogice, those for higher education institutions are in the hands of the Scottish Higher Education Funding Council, itself an NDPB.
1.6 Readers of this booklet will also be interested in the consultation paper which the Government published in March this year responding to the suggestions of the first report of the Committee on Standards in Public Life (The Nolan Committee) on the governance of NDPBs, entitled Spending Public Money : Governance and .4ud1t Issues. Details are given in Appendix 2.
1.7 Views on the matters raised in this paper should be sent by 3C September 1996 to: David Reid The Scottish Office Room 3-D7! Victoria Quav Edinburgh EH6 6QQ
Further copies of' this paper can be obtained from the same address, or by telephoning Q131 244 7419.
1.6 Gnless respondents indicate that they wish all or part of cheir comments to remain coniidential, the Department will follow the normal pracuce of making
available CO the public, on request. copies of [he replies received.
8 I
NON-DEPARTMENTAL PUBLIC BODIES-NDPBs
NDPBs in Scotland
There are 39 executive NDPBs for which the Secretan ot State tor Scotland i> now responsible.- These are listed in Appendix 1. They vaq enormouslv in their sire. their budget and the number of stafi and board members. For example.
Scottish Higher Education Funding Council has the largest expenditure of all Scottish NDPBs--f538m in 1996-9i-but has only 60 staff, since its function is largely to distribute grant to higher education institutions in Scotland.
Scottish Homes will spend some f410m in 1996-9i-and has 1.052 staff reflecting its !vide-ranging work regulating and monitoring housing associations, being landlord for its own housing stock and funding the provision oi other housing in Scotland.
Scottish Enterprise and Highlands and Islands Enterprise halve combined budgets of f479m, but also secure the deliven of local services through local enterprise companies. with combined emploiment oi 1,502
* Scottish Community Education Council has a budget of €0.6m and a stafi-oi 27.
The number ofexecuti~~eNDPBs in Scotland has been decreasing. In 1979 there were 62. Onlv half of those still exist. The table overleaf illustrates how others have developed.
ACCOUNTABILITY
NDPBj operate within a comprehensive tramework oi accountability which is kept under continuous re\.ie!v hs the Government. The main features are set out in the cable on page 11. Increased Parliamentary and public awareness of NDPB activities in recent years has led to even greater scrutiny by Government of the operation of the NDPB sector and increased guidance both for Departments and for NDPBs on the conduct of their business. Some of the main sources oi guidance on 5DPEs and other kes relevant documents are listed in Appendix 7.
9 some. such a> Scottish Enterprise. ha\.e taken on tht. functions of bodies n.ho have been abolished, and ha\,? been given B new remit in line \vith changing Go\.emment !?O/iCV:
s\)nie bociie> combine neiv tunctions ivith the roles of the pasr S t3PEh. norablv Scottish Homes trom the Scottish Speciiil Htrusiiiz .Assaiation. Scottish Kational Herirage ircm rhe CLwnrr\.sicie Commission tor Scotland. and the Scottish Environment Protection Agency. caking on the work ot the Riiser Puritication Boards;
some tn\.ol\.e ne\\' responsibilities of the Secretan of State. notably the Scottish Higher Education Funding Council and the Scottish Arts Council; the responsibilities of Scottish Natural Heritage subsume the functions oi the former Nature Consenancy Council;
some may have a role nhich has been enhanced. such as the former Commijsion for Local Authority Actwnts in Scotland. nhich has become the Accounts Commission for Scotland with the addition of the audit ot'the health service in Scotland to its responsihilities:
some art: comyletelv ne\\., retlectinp changed needs and interests such as the Scottish Water and Sewerage Customers Council and the Scottish Film Council; from .April 1997, the Film Council's role \vi11 change again n.hen ir ooes to form part ot' the new Scottish Screen A,nencv.
1.4 These factars apply \vith particular force to The Scottish Office. with the large numbers oi NDPBs for ivhich it is responsible. In particular. an Efficiency Scrutinv \vas conJucted in The Scottish Office in 1994, to review hou the sponsorship function \va.s pertixmed, and has led to:-
- gearer cnn.rxenci. of oversiehr of NDPBs, based on hest practict. cuidance.
- sertinc- (>t tirm tarcets for achievement OF strategic relationship with NDPBs:
- better articulation oi respecti\.t. roles of Departments and NDPBs:
- traininc for NDPB hoard members and Scottish Office sponsor df.
10 Accountability Framework
- XDPBs and rheir boards ar2 ans~cerable to hlinisrers umho in turn arc ansu,erabie ro Parliament.
- h’DPBs operarc. under specij’ic condiiions. Thsse are ojren set b? scarut? bu! are incariahiy suppiemenred b? operaring arrangements u,ith sponsor Departments. These operating arrangements are currenrl? being codijid as L4anagernent Statements.
- Departments reueu’ the ot4erali operation of the control arrangements. and the body 5 internal financial management ettery five years.
- The Comptrolier and Aud.~to~General audits Departments’ expenditure, including the expenditure it makes avrulable to NDPBs. The adcincludes the arrangements b? the Department for controlhng NDPBs to uhch it pants mone? The Committee of Public Accounrs can examine the Deparmenr on rhe resulrs of the audir
- The Comptroller and Auditor General QL~~Sthe accounts of most NDPBs. and SDPB accomts are generally laid before Parliament nnd are thus open to examinarion by the Committee of Public ,L\ccounrs.
- The Comptroller and Auditor General may cam. out examinations into the idu2 for mone? achiet,ed b? an? hod? urnhose members are appointed by the Crown receiving more than half its income from public funds, and has access, b? aFeement and after consultation with the sponsor Deparrment, etien to those bodies of uhch he is nor external auditor to examine matters ofreguhrir? and propriep. The Committee of Public Accounts may examine the hod? on any reporr by rhe ComprrolleT and Auditor General.
- The senior fuli-rime ofiicial of YDPBs is pen a personal responsibilit? foT snstnn,o that ,YDPBs act proper[>and rephrf? and with due regard for value for mone? Thar offtci~lis ansuerable directl? to the Committee of Public .4ccounrs on these matrers
Access and Op-anness
7 5 It 13 imporrant nor onlv that NDPB bu5iness I> conducted in accordance with the
hlghesr standard,, bur also char it 13 been to be so Withour this reassurance. the impact of other safeguards risks being much less effective This means that
dealings penerall\ need to be conducted in accordance with the principles of
oyennehs Sinct. 19% uhen [he Government implemented the Code (71 Practice
11 on Government Intbrmation, all Scortish NDPBs have been expected to acr In accordance with that code. It IS mandaton for all NDPBs within the jurisdiction ot the Parliamentary Commissioner tor Adminisrrarion.
Key Principles of the Code of Practice on Government Information
to gwe full facts and anal~siswith major polrc? decisions:
to open up intemd guidelines about dealings wirh the public:
to give reusons with adminisnative decisions;
to provide information u& the citizen’s Charter about public services, u$ht they cost, targets, pwfomnce, compbinu and redress;
to answer requests for infortnution. -,.
2.6 Scottish NDPBs aireadv use a wide varietv of means to keep the public informed oi their activities. Manv have drawn up their own codes of practice for providing information--23 had done so bv April this vear. and 27 now publish their corporate plans in addition to their annual reports. Others publish newsletters or other iniormation on their activities or on board discussions or hold public meetings. The diverse nature oi NDPBs and their business means that a completely uniform set of arrangements is not appropriate. The Nolan Committee recognised this in their discussion of NDPB openness In their first report. but, in accepting the Committee’s recommendation on this subject and endorsing the Committee’s “Standard of Best Practice for Openness”, the Government agreed that sponsor Departments should encourage NDPBs to follow best practice and work KO bring the standards of all UF to chose of the best
2.7 The Secretarv of State wants ‘to see the business of the NDPBs for which he is responsible conducted in as open a manner as possible. The Scottish Office will therefore prepare a best practice guide on openness and accessibility by NDPBs,with a view to all NDPBs having a code which
- will allow for access as appropriate to each bodv both bv those concerned with the work 01 idiviaual NDPBs and by those whose interest is of a more general nature; and
- will maximise the information available about their activities and decisions.
12 ,
The Scottish Office is particularly well placed to draw together such a guide for its sponsored bodies as a result of the diverse nature and experience of these NDPBs. The guide will seek to draw on existing practice and experience; but it will also recognise the need to have arrangements which are appropriate to the characteristics and the nature of the business of each body.
Establishment and Review
2.S Once established, even NDPB must be reviewed by its sponsor Department at regular intervals, normally five years, but there are strict tests applied even before an NDPB is established. Only if it is clearly the best solution after all alternatives have been considered, is an NPDB established. The Secretary of State must consider whether the work could be performed by the voluncan. or private sector. If it must be carried out in the public sector he also considers whether a new NDPB is justified, or if the work could be carried out by an existing organisation-for example. by another NDPB.
-,m 7.9 The subsequent five year review must examine the same options as are considered before an NDPB is established. It must also consider whether the NDPB could be abolished. It examines how effectively an NDPB is operating, and should include an examination of accountability arrangements. These reviews are publicised and views invited from interested parties. Increasingly, an external assessor is included among the ~OUFconducring the review. The outcome of these review.; is publicly announced, generally through Parliament.
212 Since 1994. 18 Scottish NDPBs ha\*e been subject to, or are currentlv undergoing. revieu. Completed reviews include the Crofters Commission. the National Librarv of Scotland. the Scottish Council on Educational Technology, the Scottish Sports Council and the Scottish Legal Aid Board. Current reviews include Scottish Homes, Scottish Enterprise, and Highlands and Islands Enterprise.
7.1 1 For the future, these reviews will continue to be conducted in accordance with the principles of increasing openness and consultation, with the reviews being publicised, with views being invited from interested parties, and with the involvement of external participants.
Management Statements
7 12 All the major NDPBs and most others take their existence from statute and must act in accordance with the terms oi their tounding legislation. There is in addition a substantial administrative framework underpinning the relationship
13 between an NDPB and its sponsor Deparrmenr. This is p.erned hv the Management Statement, a document prepared h. the Deparrment in consultation with the NDPB a.hich deals with:
- the alms and obiectli*esof rhr NDPE:
- the arrangements tor strategic planning, betting otqectives and target>. reporting and review ot' periormance;
- the arrangements for financial planning. control and delegation;
- the relationship beti;een the board and senior officials. and internal organisation and management.
2.13 Xlanagement Statements are published. and noiv exist for 27. Scottish NDPBs. -,\ These arrangements alhv Ministers and their Departments to develop a relationship with NDPBs that concentrates on strategic objectives, ivith Ministers increasingly able to hold NDPBs to account through a structure of planning, reporting and pedormance review, reinforced by the more radical examination ot' a body's performance and future role every five years.
2.14 For the future, the development of this strategic relationship between Scottish NDPBs and The Scottish Office has been given further impetus by the Efficiency Scrutiny mentioned in paragraph 2.4. In particular, Management Statements will be in place for the remainder by the end of 1996.
knnual Repori and Accounts
2.15 Ascorporate bodiej. NDPBs must report annually on their pertormance. through their annual report and accounts. Most executive NDPBs are required by statute to lay their accounts beiore Parliament. These are prepared in accordance with guidance drawn UF bv Treasur).. NDPBs' annual reports are expected to contain ar least a summary oi their accounts and details of how to obtain full accounts. These reports art. placed in the Parliamentan Libraries.
Board Accountability
2 16 KDPB Boards are. in the first instance, answerable to the Minister bv whom thev are appointed. He in turn is answerable to Parliament. The Minister sets out his strategic aims and oblectives ior an NDPB in its Management Statement Within
14 [his tiamework. he is able CO agree annual priorities and objecti\.es through ‘1 process otcoTorate planning. and sets out his expectations in the ti7m ot’targets tor the year ahead, or approi.al to [he SDPB’s proposals ior targets. The BoarJ is responsible tor establishing the strategic direction of the XDPB \vithin the pili~~ and resources irame\tork agreed \\.ith the Minister and for ensuring thar rhe NDPB complies with all relevant statuton and administrative requirements. These arrangements allow the hard to de\.elop their operational plans within a policy context jet by the responsible Minister and provide a trameitork tvithin ivhich concerns can be aired and respective \iews reconciled. It’ tor any reason the Minister is concerned ahout the direction heing tollowed by a Board. these arraqements pro\de a means by Lvhich this can be resolved. though other means are also available, such as conditions attaching to central government funding of the NDPB and the operation ot Departmental approval where. tor example, the NDPB Board wants to undenake a project which it does not have the delegated authority to approve itself.
Code of Best Practice for Board Members
_.-7-1 Within this structure for accountability. it is important for Ministers that Boards. in taking their decisions and pursuing the objectives set tor them, do so in a way that recognises the line of accountability and meets the standards that are expected ot a public hod,. A model Code of Best Practice for iMernbers of Public Bodies \vas published by the Government in 1994 and sent to all executive NDPBj in Scotland. This states that:-
“Public bodies and their Board, must ar all times observe the highest standards of impartialit>. integr\ and ob~ecticit~in relation to the stewardship of public junds and managemenr of’ rhe bodies concemed.”
It placed ohligarion3 on SDPE Board members to:
compli uirh all reC2sonahlerequests for information;
be accountable tor their activities to Parliament, users of their services, individual ciriienb and staff; and
maximise value ior money.
The Code defines the responsibilifies of the Chairman, the corporate responsibilitieb of Board members. and the responsibilities of individual members
15 2.1E Ultimately. if the responsihle Minister teels that the periormance ot an NDPB is not meeting the expectations he has of it, he may decide that its performance could be improved by the addition of neiv members, by not reappointing existing members or in the most serious cases by asking a member to resign. The Cede at Practice identities tor the Chairman a particular responsibility tor prcn.idinc an assessment ot the performance ot' individual Board members.
2.19 The Go\.ernment accepted in response to the report ot' the Kolan Committee -the adoption ot a Code tor Board members should be made mandaron. 3s NDPBs in Scotland already use the model or one they have adapted to their cxvn circumstances.
2.20 For the future, the Secretary of State intends that all remaining NDPBs in Scotland should have adopted ah appropriate Code by April 1997.
Board Members' Conflict of Interest
2.21 The model Code addresses the particular concern of how to handle conflicts of interest. Under the Code. bodies must maintain a regisrer, and have it available for inspection. In Scotland. NDPBs have approached these matters in ditierent ways. Almost all have explicit arrangements of some kind to deal with these matters; over half maintain a register oi interesrs and many. including those of Scottish Homes. Scottish Enterprise, and the Scottish Higher Education Funding Council. are either published or available for inspection. The Government's consultation paper on NDPB governance (see paragraph 1.6) set out proposals for widening the range of interests that should be covered in this way, together with arrangements for disclosure and publication of the registers and access to them. The outcome of the consultation will be known in due course, and for the future any new arrangements for registering interests including the publication of information will apply to all Scottish NDPBs.
Board Members' Induction
2.72 One wav to raise board members' awareness of their responsibilities is through effective induction In 1995, The Scottish Office introduced arrangements under which newlv appointed board members were svstematicalli invited to a training dai Over 52 neu members from 19 NDPBs attended one oi two seminars designed to introduce them to the issues thev could expect to face in their neu responsibilities A further two seminars were held specificallv for members of two neu NDPBs. the Scotrish Environment Protection Agenck and the Scottish Water and Sewerage Customers Council
16 2.23 Similar arrangements will be made during 1996 and for future years.
The Accounting Officer
2.24 The most senior official in an NDP6 is sometimes a member of the Board. but often 15 not. He or she, hou.ever. is almost invariably designated as accounting officer tor the NDPB under the terms of Gmsemment .Accounting-the guide prepared by the Treasury on accounting and financial procedures for Government Departments-just as the permanent heads of Government Departments are designated in relation to the expenditure of their Departments. This process reflects the fact that. under Government A4ccounting. the accounting officer has responsibility, which only he or she is in a position to discharge, for the overall organisation, management and staffing or' the NDPB and tor its procedures in financial and rela&d matters. Designation as accounting officer is made by the Head of the sponsoring Department. If the Head of the Department later concludes that the appointee is no longer a fit person to carry those responsibilities, designation may be withdran.n. 5%
2.25 NDPB Chief Executives, whether or not designated as accounting officers, ha\.e alwavs carried personal responsibilities for the use of resources by their organisations. With Treasun agreement, The Scottish Office drew up a customised memorandum for NDPB accounting officers when the Chief Executives of the Scottish Neiv Town Development Corporations were designated accounting officers in 1992. In 1994, a further version of the memorandum \{'as special]\. prepared by the Treasury for Departments ro issue generally to their NDPBs. Notv only the Chief Executives ofthe smallest NDPBs in Scotland are not formally designated as accounting officers, though the absence of formal designation does not absohqe them of the responsibilities of that role.
NDPB Staff-Conduct and Training
2.26 Similar issues arise over the conduct of staff as arise for Boards. The Government have announced the preparation of a code of conduct for staff. and agreed with recommendations oi the Nolan Committee that it \viII be mandaton. and applv to all NDPBj. The Scottish Office also plans to arrange seminars for NDPB Chief Executives and senior staff on XDPB issues.
APPOINTMENTS
2.27 !vtembership oi an NDPB offers an opportunitv to deploy individual skills and evperience ior :he benefit ot' the wider communirv The Secretan of State
17 appoints some 419 board members oi executive NDPBs in Scotland. hlanv people give valuable service either without re\vard or at a hver rate of remuneration than their skills and esperience could command elsewhere though, hecause ot' the le\.el of commitment expected. many board appointments to NDPBs now g1L.e the holder some remuneration
Selection on Merit
2.28 The Government firmly believe in the principle of selection on merit. This principle was strongly endorsed by the first report of the Nolan Committee. The Government believe that, to ensure public confidence in the appointments process. the procedures should he clear and well understood and that appointments should be seen to be free from sugpestions of hias. These principles were also strongly endorsed by Lord Nolan, and are now set out in the guidance drawn up by the Commissioner for Public Appointments, an office itself created in response to one of Lord Nolan's recommendations.
Independent Panels
2.29 The Scottish Office took an important initiative in 1994 when the Secretary of State set UF the Health Appointments Advisory Committee to advise him on non-executive appointments, other than chairmanships, to Scottish Health Boards and NHS Trusts. The Committee is chaired by- a former Lord Provost of Edinburgh and includes another local authority member-both from Opposition parties-and three other individuals prominent in different aspects of Scottish public life. (The terms of reference and names of members are in Appendix 3.)
_.- j7 The Nolan Commitree highlighted this initiative in their first report. They felt thar the ad\.ice CO all Ministers would be improved, more community interests taken inro account, and public confidence enhanced if the advice included independent assurance [hat proposed appointees had been scrutinised and found suitable. They recommended that all candidates for appointment to executive NDPBj and NHS bodies should be scrutinised by an advisory panel containing an independent element of normally not less than one third of the membership.
2.3 1 The Government accepted this recommendation and pledged that the arrangements will be in place by July 1996. For appointments to executive NDPBs in Scotland, the Secretary of State plans to adopt the following arrangements: -
- an advisorv panel will be set up bv each Scottish Office Department, chaired by the Departmental Head and containing at least two independent members. - the panel will be responsible for scrutinising lists of candidates for particular posts and advising on suitability for appointment.
- the panel will also be able to suggest names itself though it must subject these to the same degree of scrutiny.
- additional names proposed after the panel makes its recommendations-for example by Minis ters-will be referred' back -to the panel for advice, to maintain the principle of independent scrutiny for all candidates.
Appointment of Candidates for Panels
2.32 The Secretan. of State considers it important that the independent members on the panels should be of the highest calibre and of recognised authority and experience in their respective fields. but equally he wished to give the widest opportunir! to those who might ser\.e on these panels, and accordinplv invited applications from those \vho might be interested in such a role bv publicl~ advertising the posts.
Advertising for Candidates
1.33 As part oi the move to greater openness in appointments. The Scottish Office has increasinglv used advertisements ro invite applications from those interested in serving on KDPBs. In 1995 advertisements \Yere used to identiiv candidates ior the Scottish Environmenr Protection Agency and the Scottish Water and Senerage Customers Council. Earlier this year the post of Chairman of Scottish Homes was ad\wtised, and applications have recently heen invited for board membership of Scottish Encerprise.
7 34 The proces, of ad\.ertisement has been u5ed for some vears to attract candidate5 for Health 6oards and Children's Panels. hut last year was the first time it had been used tor NDPB,, in line with the conclusion5 of a review oi guidance on public appointments 'e\ the Public Appointment5 Unit of the Cabinet Mice, subsequentl\ endorsed bv the Nolan Committee. and now incorporated in the guidance prepared hv the Commissioner for Public Appointments.
7 -- -.I? In future, an individual advertisement may sometimes cover future appointments to a range of different bodies. The Scottish Office will also continue to welcome applications from individual members of the public to be put on the Office's Public Appointments Register. Application forms can be obtained from The Public Appointments Unit, Room 23i, St Andrew's House, Edinburgh, EH1 3DG.
19 ,
WATER'AND SEWERAGE AUTHORITIES
2.36 The new Water and Sewerage Authorities are nor NDPBs-they have rradlng functions and relv on charge income and borrowing to fund most oi their expenditure. As such thev are public corporarions-but in most other respects they are like NDPBs and the regime which the Secretan of Scare has set them within which to operate is broadlv comparable with chat for NDPBj, as the table below illustrates.
~--~ ~ ~ Accountability Framework for Water and Sewerage Authorities
the Secreta? of State is accountabk to Parliament for their accions
4 annual reports and accounci are required for each authoriq, and these are fuuf before Parhment .
their board members are accountable to the Secreta? of State
the pnnciples underpinnrng the Depamnmr's rehaonship with the authuriries are being set out in a Mamgement Statement
he Chef Execunves have a respomibilp to see Jlat thezr boards recerve appropnate advice on ail matters offinancud propnetjJ and reguhntjr and on all considerations of prudent and economical adminisnunon, efflczenqv and efiectrveness
current Board members apart from the Chairmen were appointed Jobwing public advertising of the posts
Board appornnents are made b. the SecrecaT of Stare and the pnnciples appiyng to NDPB Board appointments will apply here too
Board members are required by the Act which established the authonnes to deciare any rnterests they have in an? contract being placed their Tespecnve authonnes and subsequently to take no part rn dscmion
induction seminars have been held for Board members to farnibrise them wzth their duties and ~esponstbihtres
the authonnes have opened their meetzngs CO the pubk, except when issues of parrrcuinr sensinvip are under discussion
the authoniies me required by their .Act to have a code of practice covenng aspects of service to customen
20 2.37 The operations of the authorities, in addition, are overseen bv the Scottish Water and Sewerage Customers Council. This was created specifically to protect the interests of customers and to ensure the qualin and cost of the service provided bv the authorities are satisiacton.. It holds its ordinan meetings in public The Council is the main source of advice and information to the Secretan. of State about the performance oi each authorin in serving its customers, and about the acceptability of the charges schemes prepared by the authorities.
21 3. THE ENTERPRISE NETWORK
3.1 Since 1991 many of the Government’s economic development tuncrions in Scotland ha\,e been carried out by Scottish Enterprise (SE)and HirhliinJ> mJ Islands Enterprise (HIE). This chapter describes the operation of SE anJ HIE. and the 22 local enterprise companies (LECs) through i!.hich chev arrange the deli\.en of their tunctions. Otten knoivn as the enterprise nerv.orkj. these hdies \\‘ere among those chosen for study hv the Nolan Commirtee ior their second report.
f? 3.- The Lvorking ot the enterprise bodies and their LEC network is complex. Because of the complex relationships and the nature ot the work undertaken, the operational arrangements for these bodies include many saieguards. The conclusions of the Nolan Committee were generally favourable, and the Government will make a formal response in due course. The tollowing paragraphs are intended ro set our the extensise arrangements,. lvhich have been developed to satisfy the public espectations of these organisations.
Accountability in SE and HIE
3 3 SE and HIE both have Management Statements, setting the policx context and the accountabilin and administrative framework within which thev must operate The nernork, are alsa required to operate in accordance with the Management Statements and a Manual oi Project and Programme Rules (“the Manual”) laid down b\ the Secretan of State The Management Statement and the hlanual torm an integral parr of the Operating Contracts between SE or HIE and their resFecti\*eLEG.
3.4 The ,Llanagement Statements require SE and HIE Board members to comply with the Ckd?ot’ 6ejr Practice for Board members of public bodies. Both have a register oi member>’ interests n:hich is Fuhlished and made available to the public. The Screrarv of Stare has to be assured that hetore an individual is appointed to the board he or she has no t‘inancial or other interest likely to prejudice yerriirmance as a board member. The Management Statement requires that when an issue comes before the hoard any member with a direct or indirect financial or other interest must declare that interest and take no iurther part in the discussion.
3.5 The Chief Executives oi SE and HIE have been formally designated as accounting ofiicers SE and HIE are each obliged to publish an annual report and accounts. uhich have to be laid beiore Parliament.
22 c
3.6 Both bodies have policies dealing ivith the publication of intormation. Since 1994 HIE has operated a policy of “.kcountat?iIitv through Openness”. This guarantees public access to intormation including financial assistance projects, the registered interests of board members and senior scait and financial rransaccions relating to those interests. The policy uas publicised on it> hunch in 1994 and copies are available from all HIE LEC offices. Similarlv in 1994 SE published their “Corporate Governance-Code of 6est Practice” making them more accountable to customers. staff and indiiidual citi:ens through increased access to information.
3.7 In 1995 SE published for the first time details of performance against targets. including targets for responding to requests for intormation. paying suppliers‘ accounts and handling complaints. SE is committed to a programme of customer feedback, to serting standards of perfokance for the delivery of services which reflect customers’ needs, and to publication of data on pertbrmance against these targets. Details of all financial assistance given to companies will now be made
available for public inspection at six monthly intervals -,. by SE, with the firsr report available from April 1996. HIE operates similar arrangements.
3.8 Tne Management Statement also requires the enterprise networks to have comprehensive procedures to deal with complaints. The Secretan of State ha5 requested that an external adjudicator be appointed, to deal with those cases ivhere a complainant remains dissatisfied with the outcome of his complaint.
Membership of LECs
?.d LEG are not NDPBs. None of their members is appointed by the Secretary of State. But ic is helpful for an understanding of their operations to know how their members are appointed. LECs are private companies limited by guarantee, and Lire governed by the terms of their .Memoranda and Articles of Association. bnder the terms of the Management Stacements for both SE and HIE, two-thirds oi a LEC Board including the Chairman must be drawn from senior business people with a business in the local area. Other members have to be persons of standing in the local community. Boards must have no more than 13 members and no fewer than 9 for LECs in the SE network, and no more than 12 and no fewer than 7 in the HIE network. Nearly all LECs have local authority members on their boards.
3.12 Criteria for the selection oi directors are set out in the companies’ Articles oi Association. These can onlv be altered with the approval of the Department Some LEG have de\ eloped membership schemes to give the opportunitv to draw new directors from the wtder communim LEC dtrectors are appointed on a
23 voluntary basis and receive no remuneration tor their services. In total. there are 741 LEC directors throughout Scotland. There 1s a steadv turnover of LEC direccors and chairmen.
Accountability of Local Enterprise Companies
3.1 1 The operations ot’the LECj t’ollou.closely the arrangements under uhich SE and HIE operate. These can he summarised in the following table:
~~ Local Enterprise Companies-Openness and Accountability
SE LECs HIE LECs Openness Subject to SF Code of Cospace Subject 10 HIE Govemunce “Accountabihn through Openness” pohq
Meenngs .-Inn& public meeting required .4nnuul pubhc meering required
I.
PubLc Consultanon Pracnce tunes: local consuitanon Pracnce caries: standards of meenngs required b. SE code perjorrnance tested b?. surveys and other checks
Perfmnce repornng Injmtion on pe+mnancr lnjormanon on pofmnce against standards to be published against standards to be published
Publicarions ..innlcai Report and ?rccr~unu. .Annual Report and Accounu , plus synopsis of business plan. piu synopsis of business plan: surne LECs publish newsletce~s some LECs publish newsktws
Financul .4ssismnct. Hdp to companies to be Help to companies publicised pubiished at 6-mtmthly intervals. b? mvnthiy news rekase fiom October 1996
Confzicrs oj interest .blur k declared. and ac~i~nto lMust be declared. and acrion 10 nwd confzicr taken avod confict taken
Reguter of inreresrs ,Vust oe kepr. pubiicised and ;Mu1 be kept, publicised and acmlzbk for inspecnon available for inspecnon
Financm1 assismnce KJ hjomrion pubiished in Infmrion pubhskd with direcrurs annuai report regular reports on assistnnce and in annun[ repurr
Compiainrs Operanng conrra~rrequires Operanng conmoc~requires comprehens!ve procedures: comprehensive procedures. exrpmal d)UdICUfor to extemul adjud~mror10 be appoinred be @poind
24 Five year Review
3.12 The quinquennial review of SE and HIE was announced in Februay 1996 and interested parties have been invited to submit views on the future role of SE. HIE and LECs. This is a fundamental review of the need for and the best delivery oi the services provided by the enterprise bodies. It will include consideration of the abolition, privatisation, contracting out or transfer to another body of some or all oi their functions. There was public consultation on this review in the Spring, but if anyone wants to submit further comments, these should be sent as soon as possible to John Invine, The Scottish Office, Room 3-Fj3, Victoria Quay, Edinburgh EH6 6QQ.
25 4. NHSBODIES
4.1 Accountability is nowhere more imponant than in the provision oi the Health Service in Scotland. It is an industry in its own right, with a \vorkt;lrce in escess of 140,COc' and a turnover exceeding €4 billion. The last tour \'ears have seen significant change in the delivery of Health Services throughout the countn. the most obvious being the establishment of 47 NHS Trusts. Providinz services under -contract to the 15 territorial Health Boards and GP Fundholders. these Trusts act in the best interests of patient care and are wholly accountable to the Secretav of State. Details of Health Boards and Health Trusts are set out in Appendix 4.
Policy Oversight ,
4.2 The Secretary of State recently took steps at the national level to establish a source of health care policv advice to him bs announcing the establishment of an NHS Policc Board for Scotland. The Board w~llassist him in holding central management to account for the achievement of Government policv objectives. The Board's membership will include health care professionals and others who are able to articulate the needs and concerns of patients.
Accountability
4 3 There is recognisable public interest in who is accountable for decisions made bv local health bodies. Ultimately, the Secretarv of State for Scotland is accountable to Parliamenr but people also want local answers to their local concerns. The delegation of functions and responsibilities to health bodies does not diminish their accountabilitv to the Secretarv of State.
4.4 The boards of NHS Trusts and Health Boards are corporate bodies so that executive and non-executive members share equally responsibility for the overall direction and performance oi their organtsatrons. Non-executive members are able to bring a fresh eve to bear as well as very valuable experience from other walks of life.
Openness
4.5 Boards are required to adhere to codes of practice on accountabilitv and openness-the Code of Accountabilirv for NHS Boards and the Code of Practice on Openness in [he NHS in Scotland. Each must show that there is an effective dialogue between the health bodv and the community it serves. Non-execurive members have a particular responsibilltv to bring an independent judgement to
26 isues ot accountability and to ensure that the public has greater access to information about NHS senices. This role is widels accepted hv non-executive
members even it it ij sometimes difficult to put into practice.
4.6 There 15 probably no greater \vay in nhich health hodies demonstrate their openness than in holding meetings which are open to the public. Each NHS Trust holds at least one public meeting a year; many hold more than that. The Secreran ot State helieses that providing the public with access to such meetings is good practice. When coupled with the published intormation in annual accounts and an annual report, and other material required by the Citken's Charter. it demonstrates the willingness of health bodies to help inform the public on what they are doing. and how well they are achieving their objectives. ,411 Health Boards and at present around halt of all NHS Trusts in Scotland open their formal meetings to members of rhe public and to the media. The Code of Practice on Openness in the NHS in Scotland advises NHS Trusts that
"providing the public with access to more frequent general meetings or to Board meetings is good pracace already fohwed by an mcre&mg number of Truts"
The Secretary of State has asked the Management Executive to write to those Trusts which have not as vet opened their formal meetings to the public to remind them of the advice set down in the Code.
Access to Information
4.7 It IS the Government's intention to ensure greater public access to information about the provision of health service5 in Scotland. This is not restricted to Health Boards or NHS Trusts. It applies also to the NHS Management Executive, that part of The Scottish Office which is responsible for health issues in Scotland.
4.5 The NHS is a public bervice Details of how it is run, who is in charge and how it is performing are a\.ailable from each Health Board and NHS Trust. It is expected thar all bodies respond quicklv and positively to requests for information. Information on patients' record, and other personal details must dbviousls remain confidential. but information on the services provided, their cost, standard oiqualiti and whether planned targets have been met. should all he free11 an3 quickli available from relevant health bodies.
4.9 The Accounts Commission tor Scotland is the external auditor of NHS bodies in Scotland and undertakes a wide range of public sector audit, including value for monei studies The Comptroller and Auditor General audits the summarised
2; accounts of the NHS, and may also conduct \.alue for money studies of health bodies. The Accounts Commission is free to publish the findings of its studies and to spread the good practices is identifies through the health sector and bevond.
Appointments
4.10 The NHS in Scotland needs organising, managing and monitoring It needs individuals in charge who can share a corporate responsibilitv for strategic and operational decision making. Over 300 individuals from all walks of life sene in a non-executive function in a Health Board or NHS Trust. Over 7090 of the most recent appointees came to the attention of The Scottish Office through either responding to advertisement or nominating themselves as candidates.
4.11 The establishment in 1994 of the Health Appointments Advisory Committee (HAAC), currently chaired by the former Lord Provost of Edinburgh, demonstrated the openness adopted by The Scattish Mice when seeking to make appointments to Health Bodies. The terms of reference and initial membership of the Committee are in Appendix 3. Its role is to assess the respective strengths and weaknesses of candidates who come forward for consideration. Most members are appointed for either a two-year or a four-vear period. Their performance is reponed upon formallv by the Chairman of the health body on which the): serve. If their performance does not match the expectation and the needs of the community served by the Trust. they will be replaced. The HA4ACmakes its recommendations to the Secretary of State.
4.12 From Juiv th!s vear, a new advisory panel will be formed to advise the Secretary of State on the appointment of Chairmen to health bodies in Scotland. This panel. which will draw upon the experience and knowledge of the Health Appointments Advisory Committee, will include the current Chairman of the Committee and one other member, depending upon the nature and location of the appointment to be made. Its procedures will follow those described in paragraph 2.3 1 for the advisorv panels for NDPB appointments.
28 CONCLUSION
5.1 The Government have alwavs attached great importance to the maintenance and development of high standards of performance and accountability in public bodies. The work of the Nolan Committee has given this uork added impetus; but. as this paper shows, a great deal of Hork oi this kind has alreadi been done or set in hand br The Scotnsh Office and the NDPBs themselves. As the Secretary of State makes clear in his Foreword he hopes that the plans for change and thc other material in this document will promote wider discussion ot' the issues set out here and will welcome views on these.
5.2 Developments for NDPBs highlighted earlier were as follows:.
(11 Access and Openness
The Secretary of State wants to see the business of the NDPBs for which he is responsible conducted in as open a manner as possible. The Scottish Office will prepare a best practice guide on openness and accessibility by NDPBs, with a view to all NDPBs having a code which
- will allow for access as appropriate to each body both by those concerned with the work of individual NDPBs and by those tvhose interest is of a more general nature; and
- will maximise the information available about their activities and decisions.
The guide will seek to draw on existing practice and experience; but it will also recognise the need to have arrangements which are appropriate to the characteristics and the nature of the business of each body (paragraph 2.7).
(21 NDPB Reviews
Future reviews will continue to be conducted in accordance with the principles of increasing openness and consultation, with the reviews being publicised, with views being invited from interested parties, and with the involvement of external participants (paragraph 2.1 1).
(3) Management Statements
The future development of a strategic relationship between Scottish NDPBs and The Scottish Office based on Management Statements has been given further impetus bv the Efficiencv
29 Scrutiny. blanapemenr Statements will be in place tor those KDPBs wrhour one by the enJ ot' 1996 (paragraph 2.14).
(41 Code of Best Practice for Board Members
The Secretary of Stare intends that all NDPBs in Sclitl;inJ n.h<) have nor yet adopted a Code ni Practice shi>ulJ ha1.r t1nitlI~ adopted an appropriate Code by April 1997 (pnragraph 2.22).
(51 Conflict of Interest
Such future arrangements ior Board members to register interests as emerged from the consultation undertaken earlier this year bv the Cabinet Office. including the publication of iniormation, ~~11 applv to all Scottish NDPBs (paragraph 2.21).
(61 Board Members' Induction
The Scottish Office will continue t~ mount induction seminars for new NDPB board members (paragraph 7.23).
(71 Board Member Appointments
For appointments to executive NDPBs in Scotland, the Secretary oi State plans to adopt the following arrangements, to operate from Julv 1996:
- an advison. panel ivill be sec up t.1. each Scottish Office Department. chaired bv the Departmental Head and containing at least two independent members.
- the panel will be responsible for scrutinising lists ot candidates ior particular posts and advising on suitabilin for appointment.
- the panel ~'111also be able ro suggest names itself though ir must subjecr these to the same degree of scrutin\.
- additional names proposed after the panel makes its recommendations-tor example by Ministers-will he referred back to the panel for advice. to maintain the principle of independent scrutint' for all candidates (paragraph 2.3 1 )
(81 Advertising for Candidates
The process oi advertisement will be used to identify candidates for appintmenr to NPDBs. In future. individual advertisements may
30 sometimes cover future appointments to a range of different bodies. The Scottish Mice will also continue to welcome applications from individual members of the public to be put on the Office's Public Appointments Register.
5 .j The management of health service bodies raises similar issues. Considerable progress has been made in sharpening accountability in this sector and apenrng up to public scrutiny the way in which it operates. The establishment of an advisoq panel with an independent membership to advise on appointments of board and trust members has been a model for other areas of The Scottish Office and other Government Departments to follow. As with NDPBs the Secretary of State will welcome views on the arrangements described, and the scope for increased openness and access.
31 APPENDIX 1
EXECUTIVE NDPBs IN SCOTLAND
1996-97 Government Secretary ot Funding State NDPB Address- €m hppoin tees
Accounts Commission for 18 George Street - 14 Scotland Edinburgh EH2 ZQU
Crofters Commission 4-6 Castle Wynd 1.5 Inverness
IV2 3EQ 5%
Edinburgh New Town 13A Dundas Street 0.9 Conservation Committee Edinburgh EH3 6QG
Highlands and islands Enterprise Bridge House 58.5 11 20 Bridge Street Inverness IV1 1QR
10 National Board for Kursing 22 Queen Street 5.2 Midwiferv and Health Edinburgh Visiting in Scotland EH2 1NT
11 National Galleries of Scotland 13 Heriot Row 6.3 Edinburgh EH3 6HP
5 National Library of Scotland George IV Bridge 11.3 Edinburgh EH1 1EW
National Museums of Scotland Chambers Street 20.2 14 Edinburgh EH1 1JF
16 Parole Board for Scotland Calton House 0.4 5 Redheugh Rigg Edinburgh EH12 9HW
32 1996-9i Government Secretary of Funding State SDPB Address- €rn Xppoin tee5
Red Deer Commission Knowslev 2.9 13 62 Fairiield Road Inverness 11'3 jLH
Royal Botanic Garden Inverleith Ran' 5.8 9 Edinburgh EH3 5LR
Royal Commission on the John'Sinclaii House 3 .c 1c .iincient and Historical 16 Bemard Terrace Monuments of Scotland Edinburgh EH8 9NX -,a Scottish .Agricultural 6i 26.1 Biological Research Institutions (5)
The Scottish Crop Research Mvlneiield 15 Institute Invergowrie Dundee DD2 5DA
The Hannah Research Kirkhill Institute Ayr KA6 5HL
The Rowett Research Greenbum Road Institute Bucksbum Aberdeen A62 9SB
The Moredun Research 408 Gilmerton Road 3' Institute Edinburgh EH17 2Ql
The Macaulav Land Lise Craigiebuckler 17 Research Institute Aberdeen .AB9 1Ql
Scottish Agricultural Wages Board Room 429 Pentland House Robb's Loan Edinburgh 33 1996-97 Gin,ernment Secretary of Funding State SDPB Address' fm Appoin tee3
Scottish .Arts Council 17 Manor Place 24.5 14 Edinburgh EH3 iDD
Ochil House 12.5 Scottish Children's Reporter Administration Springkerse Business Park Stirling FKi 7XE
14 Scdttish Community Education Rosegery House 0.6 Council 9 Haymarket Terrace Edinburgh EH12 7EZ -,^ St Andrewi House 17.1 Scottish Convevancing and Executry Senwe Board Edinburgh EH1 3TG
Scottish Council for Educational 74 Victoria Crescent Road 1.4 Technology Glasgow G11 9]N
Scottish Enterprise 12i' Bothwell Street 410.6 Glasgow G2 7JP
71 L' e-. 12 Scottish Environment Erskine Court Protection Agency Castle Business Park Srirling FK9 4TR
Scottish Examinatlon Board ironmills Road Dalkeith Midlothian EH27 1LE
Scottish Film Council 74 Victoria Crescent 1.8 Road Glasgow G1Z 7Jh'
34 3
1996-97 Go\wnment Secretary ot Funding State
SDPB Address' fm A p poi n r er4
Scottish Further Education knit Argvle Court 2.7 d Castle Business Park Stirling FK9 4TY
Scottish Higher Education Donaldson House 338.6 14 Funding Council 97 Haymarket Terrace Edinburgh EH17 5HD
Scottish Homes Thistle House 241.7 10 91 Haymarket Terrace Edinburgh EH12 5HE -,a
Scottish Hospital Endowments 12 Hill Square - 10 Research Trust Edinburgh EH8 9DR
Scottish Legal Aid Board 44 Drumsheugh Gardens 145.6 15 Edinburgh EH3 TW'
Scottish Medical Practices Room A223 0.0 6 Committee Trinity Park House South Trinirv Road Edinburgh EH5 3SE
Scottish Natural Heritage 12 Hope Terrace 36.9 17 Edinburgh EH9 'AS
jcottish Seed Potato 4 Brewery Court - 17 Development Council Haddington EH41 3SE
Scottish Sports Council Caledonia House 9.2 12 South Gvle Edinburgh EH12 9DQ
35 1996-9i Government Secretary of Funding State SDPB Address- fm Appointee3 ~~ ~ - Scottish Tourist Board 23 Ravelston Terrace 1 S.3 1 Edinburgh - EH4 3EU Scottish Vocational Education Hanover House - 14; Council 24 Douglas Street Glasgow G2 7NQ , Scottish Water and Sewerage Suite 4 - 12 Customers Council Ochil House Springkerse Business Park
Stirling -.-a FK7 7XE
TOTAL 1604.6 419
1. This list excludes three new town development corporations-Cumbemauld, Irvine, Livingston-which are in the process of winding up their affairs and are due to be wound up on 3 1 December 1996.
2. Requests for further information on individual NDPBs should be sent to the addresses shown.
3. The expenditure in this column is expenditure from the Secretary of State's programme. This may be supplemented hv income from other sources. Where no expenditure is shown, this indicates that the bodv is wholly funded bv income from other sources.
4. These boards contain one or more members not appointed by the Secretaq of State
5. Legislation is currentlv before Parliament proposing chat a neu bode che Scottish Qualifications Authoritv, be established from April 1997. This would take over the functions of the Scottish Examination Board and the Scottish Vocational Education Council.
36 APPENDIX 2
Key Guides and Reference Documents
Non-Departmental Public Bodies : A Guide for Departments (Cabinet Office (OMCS) and HM Treasury 1992 1
Government Accounting : A Guide on Accounting and Financial Procedures for the use of Government Departments (HMSO 1995 (consolidated edition) in particular Chapter 8 - “.kcountabiliq in Non-Departmental Public Bodies”)
Code of Best Practice for Board Membep of Public Bodies (HM Treasury 1994)
Open Government : A code of practice on access to government information
(Cabinet Office 1994) ,pa
Executive Non-Departmental Public Bodies : Annual Reports and Accounts Guidance (HM Treasury 1996)
The Commissioner for Public Appointments guidance on appointments to executive NDPBs and NHS bodies (Office of the Commissioner for Public .Appointments 1996)
Spending Public Money : Governance and Audit lssues (Cm 3179) (Cabinet Office 1996)
Public Bodies 1995 (Cabinet Office (OPSS) and HMSO 1996)
Serving Scotland’s Keeds : The Government’s Expenditure Plans 1996-97 to 1998-99 (Cm 3214. HMSO 1996).
37 . I
APPENDIX 3
HEALTH P.PPO!%TMEMTS AQV!SORY COMMIlTEE
Remit
To advise the Secretan of State on maintaining the broadest poss1t.k base of selection for boards and recommending the best candidates for particular posts on Health Boards and NHS Trusts.
hitial membership of the committee
r Mr Norman Irons, CBE Former Lord Provost of Edinburgh (Chairman1
The Rt Rev Mario Conti Bishop of Abexdeen
Mrs Jean McFadden, CBE Councillor, Glasgow City Council
Mr Hugh Morison Director General, Scotch Whisky Association
Dr .4nthony Tok CBE President. Royal College of 5 Physicians of Edinburgh and Chairman, Scottish Royal Colleges. APPENDIX 4
NHS TRUSTS
Telephone Son-Esecuti\,c Same Address- number Director
.Aberdeen Rofal Hospital Foresterhill House 01224 661816 5 NHS Trust A6ERDEEK A69 8A4
Angus NHS Trust Whitehills Hospital 01307 464551 5 c FORFAR Ansus DD8 3DY
Argvll and Bute NHS Trust Aros 01546A0660C 3 LOCHGILPHEAD Argyll PA3 1
.Ayrshire CS: Arran Community 1.4 Hunter's Avenue 01292 281821 5 Healthcare NHS Trust AYR K.48 9DW
Borders Community Health Dingleton Hospital 21896 66230C 3 Services NHS Trust MELROSE TD6 9HN
Borders General Hospital Borders General Hospital 01896 754333 3 SHS Trust Xewstead MELROSE TD6 9D6
Caithness 6: Sutherland WICK 21955 606052 5 NHS Trust Caithness KW1 5LA
Rnval Scottish 01324 570700 5 Central Scotland Healthcare NHS Trusr Xational Hospital Old Denny Road L.ARBERT KYj 4SD Telephone Non-Executive Same Address- number Director
Dumfries 6: Galloway Acute Dumfries and 213s; 246246 > and Xlaternity Hospitals Galloway Royal Hospitals NHS Trust Bankhead Road DUMFRIES DG14AP
Dumfries and Galloway Crichton Royal 01387 255301 3 Community Services NHS Trust Hospital Glencapple Road DUMFRIES DG14TG r Dundee Healthcare NHS Trust Royal Dundee 01382 580441 5 Liff Hospital DUNDEE
DD2 5NF "a
Dundee Teaching Hospitals Ninewells Hospital 01382 6601 11 5 NHS Trust DUNDEE DD1 9SY
East 6: Midlothian Edenhall Hospital 0131 536 8000 5 NHS Trust MUSSELBURGH EH21 iTZ
Edinburgh Healthcare Astley Ainslie 0131 537 9000 3 NHS Trust Hospital 133 Grange Loan EDINBURGH EH9 ZHL
Edinburgh Sick Children's Sciennes Road 0131 536 000@ 3 NHS Trust EDINBURGH EH9 1LF
Falkirk District Roval Iniirmary Major's Loan 01324 624000 5 NHS Trust FALKIRK FK1 5QE
Fife Healthcare NHS Trust Cameron Hospital 01592 712812 3 LEVEN KY8 SRG
Glasgow Dental Hospital and 378 Sauchiehall Street 0141 21 1 9600 3 School NHS Trust GLASGOW G2 3JZ
40 Telephone Non-Executive Name Address' number Director
Glasgow Roval Infirmary 84 Castle Street 0141 211 4000 5 Lniversity NHS Trust GLASGOW G4 OSF
Grampian Healthcare ABERDEEN 01224 663131 5 NHS Trust AB2 9LR
Greater Glasgow Community 1055 Great 0141 211 3600 5 6r Mental Health Services Western Road NHS Trust GLASGOW G12 OXH
Hairmyres and Stonehouse Hairmyres Hospital 013552 20292 Hospitals NHS Trust EAST KILBRIDE 675 8RG m Highland Communities Royal Northern Infirmary 01463 723200 NHS Trust Ness Walk INVERNESS IV2 3UJ
lnverclyde Royal & Rankin Larkfield Road 01475 633777 5 hlemorial Hospital NHS Trust GREENOCK PA16 OXN
Kirkcaldv Acute Hospitals Victoria Hospital 01592 643355 SHS Trust KIRKCALDY KY? 5AH
LmJrk.hire Healthcare Strathclyde Hospital 01698 230500 SHS Trusr Airbles Road MOTHERWELL ML1 3BW
Law Hospital NHS Trust Law Hospital 01698 361 100 CARLUKE ML8 ?ER
Lomond Healthcare NHS Trust Vale of Leven District 01389 754121 General Hospital ALEXANDRIA Dunbanonshire G83 OWA
41 Telephone Non-Executive Same Address- number D'[rector
Monklands and Bellshill Monkscourt Avenue 21236 748746 7 Hospital NHS Trust A IRDRIE ML6 c7JS
Moray Health Senices Manhill House 171343 533131 I NHS Trust ELGIN Moray IV30 1AJ
North Ayrshire 6: Arran Crosshouse Hospital 01536 521 133 5 KHS Trust KILMARNOCK KA"z @BE
Perth 6i Kinross Healthcare 113 Leonard Street Cl738 623311 5 NHS Trust PERTH Tayside -8n PH2 8H4
Queen Margaret Hospital Whicefield Road 01383 623623 5 Duniermline NHS Trust DUNFERMLINE KY 12 0SU
Raigmore Hospital NHS Trust Perth Road 01463 704000 5 INVERNESS 1\72 3L;]
Renirewshire Healthcare Dykebar Hospital 0141 884 5122 NHS Trust PAISLEY PA2 7DE
Royal Alexandra Hospitals Corsebar Road 0141 887 9111 NHS Trust PAISLEY PAZ 9PN
Royal Infirman. oi Edinburgh I Lauriston Place 0131 536 1000 NHS Trust EDINBURGH EH3 9YW
Scottish Ambulance Service fu'ational Headquarters 0131 447 7711 NHS Trust Tipperlinn Road EDlNBURGH EH10 5UU
Sourh Avrshire Hospitals The Avr Hospital 01292 610555 NHS Trust AYR Kk'T 7zz
42 Telephone Non-Executive Name Address- number Director
Southern General Hospital 13.15 Govan Road Cl41 201 llOC NHS Trust GLASGOW G5l 4TF
Stirling Roval lniirman Livilands 01786 43400c' NHS Trust STIRLING FK6 2.4U
Stobhill General Hospital Gnit 133 Balornock Road 0141 201 3000 NHS Trust GLASGOW G213UW .
Victoria Infirmary NHS Trust Queen's Park House 0141 201 6000 GLASGOW G42 9TY Tn. W;est Glasgow Hospitals Western Infirmary 0141 211 2000 Lniversiry NHS Trust Dumbarton Road GLASGOW G116NT
West Lothian XHS Trust St John's Hospital 01506 419666 LIVINGSTON West Lothian EH54 6PP
Western General Hospitals Crewe ,Road South 0131 537 I000 NHS Trust EDINBURGH EH4 ZXU
Yorkhill NHS Trust Royal Hospital for 0141 201 0000 Sick Children GLASGOW G3 8SJ
Number of Non-Executive Directors in each Trust -5- Total Sumber of &on-Executive Directors for the 47 Trusts = 233
43 HEALTH BOARDS
Telephone Non-Esecutivr Name Address' number Director
Argyll &. Clyde Health Board Hawkhead Road G141 687 9131 6 PAISLEY P.47 iBN
Ayrshire & Arran Health Board P.O. Box 13 01292 611042 6 Seaiield House Doonfoot Road .4YR KA7 4DW
Borders Health Board Huntlybum 01896 4333 6 MELROSE TD6 9BP
e,, Dumfries & Galloway N ithbank 01387 46246 6 Health Board DUMFRIES DG12SD
Fife Health Board Springfield House 01334 56200 CUPAR KY15 SUP 6
Forth Valley Health Board 33 Spittal Street 01786 46303 1 6 STIRLING FK8 1DX
Grampian Health Board Summerfield House 01224 589901 6 2 €day Road ABERDEEN AB9 IRE
Greater Glasgow Health Board 1 12 lnpram Street 0141 552 6222 6 GLASGOW G1 1ET
Highland Health Board Reay House 01463 239851 6 17 Old Edinburgh Road INVERNESS 1VZ 3HG
Lanarkshire Health Board 14 Beckford Street 01696 281313 6 HAM I LTON NIL3 OT6
44 Telephone Non-Esrcutive Name Address’ number Director
-~~ Lothian Health bard 148 The Pleasance 0131 229 5888 6 EDINBURGH EH6 9RR
Orknev Health Board Baliour Hospital 01856 672763 6 New Scapa Road KIRKW.4LL Orkney KWl5 1BQ
Shetland Health Board Brevik House 0i595 6767 6 SouthRoad LERWICK Shetland ZEl ORB
.-e Tavside Health Board P.O. Box 75 01382 645151 6 Vemonholme Riverside Drive DUNDEE DD19NL
Western Isles Health Board 37 South Beach Street 01851 702997 6 STORNOWAY Isle of Lewis PAS7 ZBN
Number of Non-Executive Members in each Health Board =6 Total Number of Non-Executive Members for the 13 Health Boards = 90
DestgnN 6 Produced on behall 01 The Sconish Onlce by HMSO kocland Dd 8475937 7/96 (132576)
4.