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Ahenoattlem)K, NORTH LANARKSHIRE COUNCIL ~ 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.
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