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EFFECTIVE GOVERNMENT : Commlltee the ROLE of PUBLIC BODIES - LETTER from CABINET SECRETARY for FINANCE and SUSTAINABLE GROWTH From: CHIEF EXECUTIVE

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EFFECTIVE GOVERNMENT : Commlltee the ROLE of PUBLIC BODIES - LETTER from CABINET SECRETARY for FINANCE and SUSTAINABLE GROWTH From: CHIEF EXECUTIVE NORTH LANARKSHIRE COUNCIL AGENDA ITEM No ..”,- s’ __._-__-_. REPORT To: POLICY AND RESOURCES Subject: MORE EFFECTIVE GOVERNMENT : COMMllTEE THE ROLE OF PUBLIC BODIES - LETTER FROM CABINET SECRETARY FOR FINANCE AND SUSTAINABLE GROWTH From: CHIEF EXECUTIVE Date: 4 March 2008 Ref:AZG/8od 1.o 1.1 On 30th January 2008 the First Minister Alex Salmond made a statement in Parliament about the Scottish Government’s plans to simplify public services. The same day the Cabinet Secretary for Finance and Sustainable Growth, John Swinney MSP, wrote to all Chief Executives setting out the government’s overall approach to its relationship with public bodies (Appendix 1). 1.2 The aim is to achieve sustainable economic growth by creating more effective government through simplification. The introduction of Single Outcome Agreements is the subject of a separate report to this Committee. 2.0 Background 2.1 WithAhe National Economic Strategy and the Spending Review came the establishment of a public sector national performance framework. The Cabinet Secretary confirmed that 2008 - 2009 will be a transitional year, with the new arrangements and relationships fully operational by 2009 - 201 0. Over the coming year the new frameworks will be developed as will matters concerning: - 0 Governance 0 Sponsorship arrangements 0 Maintaining good working arrangements 2.2 New arrangements will be put in place involving representatives from government departments, Non Departmental Public Bodies and agencies identified in an appendix to the letter. The letter goes on to outline the 4 ‘main workstreams’ as 0 Modernising scrutiny arrangements (A briefing note outlining details and implications of the government’s response to Professor Crerar’s report has been placed in the Members library). 0 Efficient Government Location and Asset Management 0 Shared Services 162 2.3 It concludes reconfirming the government’s determination to build a better model of government in Scotland on a renewed relationship between government and public bodies. 3.0 Recommendation 3.1 It is recommended that the Committee note the content of this report. Chief Executive Local Government Access to Information Act For further information please contact Alex Gardiner on extension 2231 163 Appendix 1 Cabinet Secretary for Finance and Sustainable Growth John Winney MSP T: 0845 774 1741 E: swtt ish.ministers@cot land.gsi .gov .u k To All Chairs and Chief Executives 30 January 2008 Dear Colleague MORE EFFECTIVE GOVERNMENT: THE ROLE OF PUBLIC BODIES As you will be aware, the First Minister has today made an announcement to Parliament on more effective government, setting out our proposals for simplification of the public sector landscape. This is one of a number of major developments affecting public bodies. Some of you will be directly affected by the proposals and will be in detailed discussions with the Government about them. The purpose of this letter is to set out the Government’s overall approach to the relationship with public bodies, and to signal the establishment of arrangements to work with you towards a new and more effective relationship. Also, for some bodies I recognise that continuing progress is already being made across much of this agenda through work on the detailed reform agenda. This should of course continue. The aim of simplification is to contribute to more effective government and so support the Government’s core purpose to achieve sustainable economic growth. It forms part of a broader approach to improving public services. In the Economic Strategy and the Spending Review we have established a National performance framework, with outcomes and indicators, which applies to the entire public sector. Public bodies are accountable to Scottish Ministers and I am clear that it is for Ministers to set strategic direction and demand results, and that we need to do so in a way that harnesses the skill, commitment and innovative capacity of all who work in public bodies. I know that each of you are already setting your business planning for 2008-9 and beyond in the context of the Government’s core purpose, objectives outcomes and indicators. This is an essential first step, but I recognise that 2008-9 will be a transitional year, and I will be looking to see the new framework and relationship fully in place by 2009-10. This letter describes the process about to get underway to establish an outcome based framework for public bodies. With that in view, I will be setting up new arrangements, involving representatives of NDPBs and agencies, to develop this framework. I expect this work to also look at governance, sponsorship arrangements and, crucially, at how to ensure the right working relationships are established and maintained. This work will link in to the work to develop a system of public performance reporting and performance management in St Andrew’s House, Regent Road, Edinburgh EH1 3DG w ww.swt land.gov .uk 164 relation to our national performance framework, drawing on examples such as the Virginia Model. I am conscious that a range of other streams of work will impact on the Government's relationship with public bodies, and I am committed to ensuring that these are taken forward in a way that fits with our overall approach. The main workstreams I have in mind are: 0 Modernising scrutiny arrangements - The Scottish Government recently published its response to Professor Crerar's independent review of regulation, audit, inspection and complaints handling of public services in Scotland. Making scrutiny more proportionate and targeting it more effectively should lead to a reduction in the volume of scrutiny and in the number of scrutiny and complaints bodies. Efficient Government - Public bodies have a big contribution to make to our target of f 1.6b cash-releasing efficiencies by 2010/2011. These gains will be available to improve service delivery. We have moved to a stage where transformation change is needed which will be a collective challenge. 0 On Location and Asset Management policy the approach I set out this week is focussed on business need and Value for Money where we are looking to meet the needs of individual bodies in the most cost effective way for the Scottish public sector as a whole. Shared Services are now starting to become embedded across the public sector and are a key part of our efficiency agenda. It is important that we learn from best practice across the public sector and understand the potential opportunities for public bodies in Scotland. I recently approved the 'Baseline Study of Corporate Services across the Scottish Government and Public Bodies' which should contribute to delivering real improvements in this area. Work on procurement is already moving ahead. This will be a period of significant change for public bodies. I recognise the professionalism and excellence of public bodies and I have no doubt that you will rise to the challenges I have set out. That challenge is shared - I will also expect the Government to rise to the challenge of setting conditions for more effective delivery of services. We will set up arrangements to ensure that we work with public bodies on all of these issues and I look forward to that dialogue with you. As a Government, we are determined to build a simpler and better model of government in Scotland, to get better value for money, better governance and, above all, better outcomes for the people of Scotland. Renewing the relationship between Government and public bodies is an essential element in achieving this. John Swinney St Andrew's House, Regent Road, Edinburgh EH1 3DG www scat land .gov .uk 165 SCOTLAND’S PUBLIC SERVICES 1. At the national level alone we currently have 199 devolved public sector organisations delivering services. Public bodies in Scotland are normally established to carry out executive functions or other tasks which have a clear national remit. In simple terms this means a public body canying out its day to day work independently of Ministers but for which Ministers are ultimately accountable. The term covers a wide and diverse range of organisations of varying size and responsibilities including: Agencies Scottish Government Agencies - are constituent parts of Scottish Government with a stronger focus on operational management and direct delivery of public services. Agencies are accountable through Directorates of the Scottish Government to Ministers and ultimately Parliament. Non-Ministerial Departments - NMDs are also constituent parts of government, but operate at greater arms length than Executive Agencies. NMDs are headed by statutory office holders whose functions are defined in legislation. They are not directly answerable to Ministers, but to the legislature. NDPBs Executive - have a national remit and carry out administrative, commercial, executive or regulatory functions Advisory - have a national remit and carry out advisory functions providing specialist advice to Ministers and others Tribunals - are responsible for tasks and advice relating to specialist areas of the law, carry out judicial functions but are separate from the formal court system Public Corporations - are industrial or commercial enterprises under direct control of Ministers NHS bodies - provide management, technical or advisory services within the NHS All of the above operate under a framework of governance and accountability set by Ministers, including provisions in the Scottish Public Finance Manual. All NDPBs are accountable through a sponsoring Directorate to Ministers and Parliament. Parliamentarv Commissioners & Ombudsmen - have a range of roles including safeguarding the rights of particular groups in society and reporting on, monitoring and handling complaints about the activity of public organisations. They are directly accountable to the Scottish Parliament. Others - there are a range of other significant national organisations with a variety of accountability arrangements based on the function of the body. Where the body is in receipt of government funding it is required to comply with the provisions of the Scottish Public Finance Mand and with any additional conditions of grant.
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