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Chamber and committees

Health and Sport Committee

Meeting date: Tuesday, October 1, 2013


Contents


Public Bodies (Joint Working) (Scotland) Bill: Stage 1

The Convener

Our final agenda item is an evidence-taking session with the Cabinet Secretary for Health and Wellbeing on the Public Bodies (Joint Working) (Scotland) Bill at stage 1. The cabinet secretary has been joined by the following Scottish Government officials: Kathleen Bessos, deputy director, and Alison Taylor, team leader, both from the directorate for health and social care integration. John Paterson stays with us from the previous session.

I invite the cabinet secretary to make an opening statement.

Alex Neil

Thank you for the opportunity to discuss the Public Bodies (Joint Working) (Scotland) Bill. I will take a few minutes to say a word or two about the bill.

First, in terms of the overview, as the committee is aware, the bill provides the framework for the integration of health and social care and sits alongside the Social Care (Self-directed Support) (Scotland) Act 2013 and other key policies to deliver the Scottish Government’s personalisation agenda. The bill promotes person-centred planning and delivery to ensure joined-up, seamless health and social care services, with the aim of improving outcomes for service users, carers and their families. We will do that by legislating for national health and wellbeing outcomes that will underpin the requirement for health boards and local authorities to plan effectively together to deliver quality, sustainable care services for their constituent populations.

Importantly, the bill aims to bring together the substantial resources of health and social care to deliver joined-up, effective and efficient services that meet the increasing number of people with longer-term and often complex needs, many of whom are older. We are all aware of the Audit Scotland criticism on the failure of community health partnerships, which is why the bill focuses on bringing together the accountability of statutory partners, health boards and local authorities to jointly deliver better outcomes for patients, service users and carers. For too long, health boards and local authorities have ended up in a cycle of cost shunting. The bill requires health boards and local authorities to, first, establish integrated arrangements through partnership working; and secondly, to provide for two models: delegation to a body corporate, established as a joint board, or delegation to each other as a lead agency. The health boards and local authorities will be required to delegate functions and budgets to the integrated partnership; as a minimum, those will be adult primary care and community care; adult social care; and aspects of acute hospital services.

Secondary legislation will set out functions that integrated partnerships will be able to include, such as housing or children’s services, where there is local agreement to do so. Indeed, there are areas across Scotland, such as West Lothian and Highland, where that is already working well. Each partnership will be required to establish locality planning arrangements, which will provide a forum for local professional leadership of service planning and will encompass an assets-based approach, building on local knowledge and best practice to meet the needs of the local population. The integrated partnership will be required to prepare and implement a strategic commissioning plan, which will use the totality of resources available across health and social care to plan for the health and social care needs of local populations. Importantly, professionals, service users, GPs and the third and independent sectors will be embedded in the process as key stakeholders in shaping the redesign of services.

Alongside the Social Care (Self-directed Support) (Scotland) Act 2013 and the Children and Young People (Scotland) Bill, the Public Bodies (Joint Working) (Scotland) Bill is part of the Government’s broader agenda to deliver public services that better meet the needs of people and communities. The bill provides the legislative framework for partnership working at both a strategic and a local level, involving professionals, service users and partners. The planning and delivery principles in the bill encapsulate the principles of Christie, putting the person at the centre of service planning and delivery, and requiring a focus on prevention and anticipatory care planning.

The Health and Sport Committee has not only taken evidence from a range of stakeholders this month, but has heard during its inquiry into integration that there is wide support for the bill’s principles. For some who are already progressing well with shadow integrated arrangements, the bill might seem unnecessary. However, I think that we are all in agreement that not enough progress has been made under the existing permissive legislation. We have not started from a blank sheet of paper, because many areas across Scotland are already working in partnership to deliver integrated services. Furthermore, we have considered the evidence from across the UK and we are mindful of applying that in a Scottish context. However, I am clear that in order to achieve consistency of progress, it is necessary to set out a legislative framework that will deliver the necessary changes to meet future demands on services.

I believe that the bill strikes the right balance in setting the framework integration, making the necessary requirements on health boards and local authorities to deliver effective integration of health and social care and providing the flexibility to develop arrangements that best suit local circumstances. I welcome the opportunity to clarify the bill further.

Thank you, cabinet secretary. Gil Paterson will ask the first question.

Gil Paterson

It is safe to say that the oral and written evidence that the committee has received so far shows that there is unanimity across the sector that integration is a good thing that people would like to see happen. Officials may correct me, but I do not think that a single submission has said that integration would be a bad thing. However, there are some ifs, buts and maybes. It has been suggested that the reason for failures in the past has been a lack of good leadership—that seems to be one of the key factors—and that there is a need for cultural change. Given that we are hearing from everybody who is involved that integration would be welcome and should happen, why is there a need for legislation? Why not just let it happen?

Alex Neil

Many attempts have been made to make it happen. It has happened in one or two areas—West Lothian is the most notable example—but without statutory underpinning it has not happened. In one or two areas there is still, frankly, resistance to the proposals. We cannot deliver the quality of care that we require to deliver to our adult population—in particular, the disabled population and older people—without the full integration of adult health and social care services.

Our strong view, which is based on the evidence of the past 10 or 20 years, is that integration will not happen without statutory underpinning. We hope that statutory underpinning will not only make it happen on the ground throughout Scotland, but help to change the culture in health boards and local authorities so that people see the need to put the person—the end user, the patient—at the centre of everything that we do and to give overriding consideration to their needs rather than the needs of either a health board or a local authority.

Gil Paterson

I am grateful for your answer, but it leads to another question. If people are saying that the problems were due to a lack of leadership, where is the provision for good leadership? Or is that an excuse and are people protecting their empires?

Alex Neil

Leadership is part of the equation. It is part of the jigsaw of making it happen, and we are providing leadership at the national level through the bill. I have spoken to Iain Gray, a former minister with responsibility for social justice, and he told me that he regrets the fact that he did not underpin the plans that he had at that time with legislation. Without the legislation it will not work, but the leadership tends to pull the other way because of the vested interests of local authorities and health boards. The bill will ensure that the leadership must pull with integration in both the health boards and the local authorities. In the body corporate model or the lead agency model, the leadership comes from the chief accounting officer or the lead agency. Therefore, the bill will ensure good leadership at the national level as well as at the local level.

Kathleen Bessos (Scottish Government)

We have made it clear from the beginning that legislation in itself will not change the mindsets of the practitioners on the ground and create the leadership. Alongside the legislative work, we are undertaking a significant piece of work on strategic workforce development; I can say a little more about that, if you would like. For us, strategic workforce development plus the work to support locality development and strategic commissioning is where all this will land—or not land—appropriately. The strategic workforce development group will produce, probably by the end of October, a framework for action that will cover the issues that the member has raised around the support for organisational development; the support for the joint boards regarding culture, language and communications; and the support that chief officers will need to provide the strategic leadership that will be required in a complex situation.

We will say something about management development, education and training for professionals and about our on-going work to develop commissioning skills to create a proper commissioning framework. We are going to do a whole load of work. The financial memorandum identified resource that we will make available to partnerships to support their transition into a new working environment.

Alex Neil

I will just add a point about the areas where integration is already happening, such as Highland. A few months ago, I was up in the Royal northern infirmary in Inverness, where people who previously worked with the health board now work with the local authority in an integrated setting. Some of them admitted that they were a bit sceptical, but they now say that it really is the right way to go. I have found many examples of that where integration is already working on the ground.

To be honest, I am not entirely sure that leadership is the real question. There are some real good people, but they have not engaged.

I think that it varies between different areas.

Gil Paterson

In business or in local or national Government, there are always vested interests. I do not think that we can ever take vested interests out of the equation—that is just the way that it is. People protect their budgets and their own wee areas, or big areas for that matter. Do you agree that, in effect, the bill will mean that the vested interests will get much wider and will encapsulate a much greater area? The sphere of influence and vested interest will encapsulate most of the population. Perhaps I should not say that, but that is what I see in the bill and it is my interpretation of what you are trying to achieve.

Alex Neil

We certainly want to ensure that everyone has a vested interest in delivering what will be the national outcomes. It is clear that, whether we are talking about strategic commissioning, budgetary procedures, how the constitution of the bodies is established or reporting mechanisms, we are trying to ensure that everybody’s vested interest is in providing the best possible service to the end user.

The Convener

We know that you are having discussions with the Convention of Scottish Local Authorities. You might want to bring us up to date on those discussions but, to summarise—I am not saying that this is how it is, but it is how I view it—COSLA says that you are taking wide powers without our knowing how you would use those powers and the circumstances in which you would use them. COSLA’s fear is that you are taking all these powers, but there are no rules of engagement.

In addition, there is a question about how you can be impartial in the process. The Cabinet Secretary for Health and Wellbeing is there to protect, sustain and promote the health service. COSLA perceives an imbalance that it is crucial to resolve as we go forward. Do you agree or disagree with those issues about where the power lies and your role in the process? In what circumstances would the powers be used? Do we need clear rules of engagement?

Alex Neil

The first thing to say is that, although I am called the Cabinet Secretary for Health and Wellbeing, I am also the cabinet secretary responsible for adult social care, so it is just not the case that there is a conflict of interest, because I already have responsibility for adult social care. I exercise those responsibilities today and my predecessors exercised the same responsibilities.

Secondly, COSLA has expressed concern that it believes that there is a need for tighter definition of what we mean by the term “social care” in the bill. The concern is that the way in which the bill is drafted could be interpreted to mean that I have the power not just over social care, but over a whole gamut of local authority services. We have been working at political and official level and we have agreed that we will lodge amendments at stage 2. Those amendments, jointly agreed between COSLA and us, will I think absolutely allay any fears that I am trying to widen my powers. I am absolutely sure that my Cabinet colleagues would not want that to happen, anyway. The bill, with those amendments, will make it definitively clear what is meant by the powers in relation to social care and that they do not cover much wider areas of local authority responsibility.

11:45

Thirdly, on rules of engagement, a lot will be followed up in secondary legislation and guidance, but fundamentally the point of the bill is that it should provide a national framework and binding principles—for example, strategic commissioning and the national outcomes—and define the different models in principle that are available to deliver them. We have been very clear about that and have agreed right up front with COSLA and others on it from day 1. It has always been agreed that, beyond that, we want to leave as much discretion as makes sense to local areas to make their own detailed arrangements, and for the bill not to be overly prescriptive. That is a sensible way to go.

I sat through the last 20 minutes of the previous panel’s discussion. Some of the issues that were mentioned will be covered in secondary legislation for various reasons that we will no doubt discuss in more detail later. It does not make sense to put some of those things in the bill; it makes more sense to put them in either secondary legislation or guidance.

I am sure that you understand that, in the evidence that we have taken, people have been all on board, as Gil Paterson said.

Yes.

The Convener

Indeed, the committee is on board, but a specific example is the contention about the shifting budget. The evidence that we have heard is that we can put everything in place, legislate and enable. However, according to COSLA in particular, if we do not shift the budget from the acute sector into the community, the approach will not work. I think that your position on whether you could deliver substantial money would be tested at that point, given that what was wanted was a top cut of money from the health service into the community. That is a difficult call for the Cabinet Secretary for Health and Wellbeing.

Alex Neil

There cannot be a simplistic percentage cut in the acute budget that is then redirected. That is not the right way to plan ahead.

The strategic commissioning role of the partnership is absolutely crucial. We already agree with COSLA that, where there is an acute budget related to the partnership’s responsibilities, how much is spent on acute care in relation to the overall responsibilities of the partnership will be very transparent. The partnership will then have the ability to influence the acute care budget.

I will get Kathleen Bessos to talk about this in a bit more detail, but let me give an example. In my estimation, one area in which we can substantially reduce the number of unnecessary hospitalisations is the long-term condition of chronic obstructive pulmonary disease. We hospitalise many people who would not need to be hospitalised, or hospitalised as often, if the proper support were available in the community. Because of the rate of hospitalisation, the budgets for dealing with those people are covered in the acute budget. We want to move some of that into the community. The strategic commissioning plan—it would be a plan—would say that, over a period of years and in agreement with the acute providers, resources will be shifted into the community in a planned way so that within three or four years’ time, say, many more people who suffer from COPD will be treated in the community rather than in the acute setting, and the money will effectively follow the patient in those circumstances.

So you agree with COSLA and others that one of the key aspects is to shift the flow of people and budgets from the acute sector into the community.

Alex Neil

That is one of the things that we want to achieve, because we know that people are being hospitalised far too often. If the resources were available in the community, those people would not need to be hospitalised. Let us look at the economics of that. On average, it costs £4,600 a week to keep somebody in an acute hospital in Scotland and around £300 a week to treat a person at home. For those with serious chronic conditions, the average is probably nearer £800 or £900. It makes economic sense to treat people at home, but the really important point is that, where that has been done, patients’ health outcomes have substantially improved. That is particularly true for older people. One of the worst things that we can do is to hospitalise them unnecessarily. We are all at one on that.

I am not sure whether Kathleen Bessos would like to spell out the budgetary aspects of that—she can perhaps do so later.

Nanette Milne

Some of us were in West Lothian yesterday. The question is one of widening the integration agenda. It is clear that they are working on adult health and social care, but they were also talking about how important housing and children’s services are. How does that tie in with what COSLA is saying to you about restricting integration?

Alex Neil

We are talking about the core of the joint board. The voting membership of the joint board in each local authority area that has the body corporate model will be made up of equal representation between the health board and the local authority. If the board decides that it wants to co-opt non-voting members on to the board, it will have the right to do so. There will be a host of infrastructure around the board and that is where services such as housing will be heavily involved—housing has a particularly important role to play in locality planning. The secondary legislation and the guidance will spell that out in more detail.

Malcolm Chisholm

What Kathleen Bessos said about the wider agenda is very important. All the witnesses have said that structural change in itself cannot deliver what is required. Most witnesses, with the exception of the Chartered Institute of Public Finance and Accountancy, have gone along in general terms with what is in the bill.

What interests me is the detail and there are two areas where I seek clarity. We have already started talking about one of them—acute budgets. In your opening statement on the bill, cabinet secretary, you spoke about aspects of acute hospital services and you gave the example of COPD. First, there is the question of who will decide. I presume that, in terms of what you propose, it is up to—in fact, I do not know. Will the health board decide, or will it be the partnership? Who decides?

The more fundamental question is, how much of the acute budget is to be shifted? Is it money to pay for reprovisioning in the community, or is it a much larger block of the acute budget? You are probably aware of NHS Lothian’s concern that it sounds as though you might be taking a much larger block of the acute budget. You would then be getting a position in which the body corporate commissions from the acute sector. That is where the return of language such as “commissioner-provider” or even “purchaser-provider” has come in. It is important to know in detail how the proposals will work. How much money is being transferred and what is the relationship between the body corporate and the rest of the health service?

Alex Neil

I will get Kathleen Bessos to explain the exact mechanics of how things will work. It is important for people to understand the detail of those mechanics.

I will not be reallocating anything. It will be an entirely local decision and it will be driven by the joint board—by the body corporate or by the lead agency in the Highlands. It will not be me making the decisions; there will be 32 decision-making bodies across the country that will be making the decisions.

I understand that—but some people have expressed concern about that.

Alex Neil

A key point of this whole exercise is substantially to increase acute care in the community. If we were not going to give the joint boards some responsibility for the acute budget, that would defeat that particular purpose of the integration agenda.

We should not think in terms of a precise percentage of the acute budget, and I will tell you why. If you pick an acute hospital—say, Perth royal infirmary—and compare it with the Glasgow Southern general, you will find that the Southern general has a much wider remit than just the local authority area that it is serving. Perth royal infirmary does serve people outside the Perth area, but Glasgow Southern general is a teaching hospital with a range of other responsibilities. If we just said that a percentage of the acute budget should be transferred in the same way across the country, the impact of that would be extremely different in different areas, because of the different roles played by some of the bigger hospitals in particular. That is why it has to be a local decision, dependent on the configuration of acute services in each area.

Kathleen Bessos will explain the budgetary process and how we deal with the acute plan, which starts with the unprecedented transparency of the acute budget.

Kathleen Bessos

That is right. The important thing is that we stick with the principle that the resources that are associated with the functions that are delegated to the joint board go with the functions. That is the important point, and that can be clearly articulated. The key question then becomes which aspects of acute resources lend themselves to being used in a different way. Clearly, there are services such as neurosurgery that do not lend themselves to being redesigned to support an improved pathway of care, particularly for older people.

As the cabinet secretary said, we have been working closely with the chief executives of the NHS boards to unpick the complexities—how do you land this thing so as to give enough influence to change how acute budgets are used, without introducing either incredible amounts of bureaucracy or complete chaos and confusion, with the potential for the acute service not to be able to plan coherently across their patch because they cover more than one local authority area?

We think that we have got a position that has been agreed with COSLA and with NHS boards on what that model looks like, so we are saying that the strategic commissioning plan must describe the money that is in scope. Within that commissioning plan there will be decisions taken by the partnership board, in discussion with the health board, the council and others, about the timeframe around which changes to acute services will happen. Those resources will then be realigned and redeployed as the commissioning plan is operationalised.

For example, in community acute hospitals it is likely that all of that budget will go with the functions and be in the integrated pot, so that that resource can be used flexibly on a daily basis. However, redesigning and realigning some aspects of acute service needs to sit within the context of the agreed commissioning plan, the timescale over which the change will happen, and complete transparency about what resource is available to be redeployed.

Clearly, it is not the whole of the acute budget, but we think that we have a model. The deputy director for health finance in the Scottish Government has already asked partnerships to give an early indication of what percentage of resources would be in scope, and I am sure that once she has a comprehensive picture she would not be unhappy to share the generality of that, given that the partners are in the early days of working through the amount. However, there is a significant amount in scope.

Malcolm Chisholm

It would be helpful if some of that detail could be provided to the committee and made available more generally. It has become one of the main points of interest in the discussions and I know that there is concern about it in some health boards, so I could probably ask lots of follow-up questions. One basic question might be whether the decision about how much money is in scope is a decision of the body corporate or a decision of the health board. There is lots of scope for tension between those two and I suppose that the general point, as everybody knows, is that even in shifting the balance of care, because of demography, it is not as if acute budgets can be decreased in absolute terms. There are so many questions around that.

Alex Neil

The key tool is the strategic commissioning plan. Let us take COPD as an example, and let us say that it is for Edinburgh, Malcolm Chisholm’s area, because the health board and the council have signed up to the scenario. Part of the strategic commissioning plan is to treat far more COPD patients—a percentage might be specified—in the community. To provide that service will require not just GPs, but acute consultants to work in the community. The pace at which it is done, the resource allocation and the way in which it is done should all be part of the strategic commissioning plan, which must be drawn up by the joint board—obviously, Edinburgh is a body corporate model—in wide consultation with not only the health board and the local authority but a range of other bodies. The requirement for a consultation group on the strategic commissioning plan is in the bill. It is not a case of a unilateral decision being made. Everything must be done in consultation with the key stakeholders and then, once the plan is agreed, everybody is signed up to it.

12:00

Alison Taylor (Scottish Government)

To pick up on a technical detail, the bill sets out that the original agreement between the health board and the local authority, which the bill describes as the integration plan, sets out the functions and the method of calculation for payments to go with the functions in the integrated arrangement. Therefore, at the overarching level—the level of the framework about which the cabinet secretary has been talking—the health board and the local authority will have that initial discussion within the parameters of what must go in, which will be in regulations. Then, once we get into the mechanics of working out how to improve outcomes, it is exactly as the cabinet secretary said: the determination comes into the strategic planning process.

Malcolm Chisholm

That is fine for the management of a particular condition such as COPD, but when it comes to the more general question of shifting the balance of care and reducing emergency admissions, it becomes a bit more difficult. It would be helpful to have some more detail on that.

The second matter on which there has been much discussion is the precise governance arrangements, particularly the position of the chief officer of a body corporate. Again, I am drawing on what the people in my area are saying. The City of Edinburgh Council and NHS Lothian are both saying that there is a view that the balance has shifted more than was intended towards the chief officer, that, in fact, far more responsibility and decision-making power will be located there and that, in some ways, there will be a weaker relationship with local authorities and health boards than was intended in the consultation document.

I would welcome any views on that. Have you had discussions with various health boards and local authorities about it?

Alex Neil

I will be clear. The chief officer will be appointed by the joint board. He or she will report to it. That person will not be able to make unilateral decisions; they will be answerable to the joint board. They have to be employed by the local authority or the health board for a host of other reasons.

However, that is not to say that somebody who is not currently employed by the health board or the local authority could not be the chief officer. It could be that such a person applies for the job, but it would then need to be decided who their employer was. That is a technical issue.

The first thing to stress is that the chief officer will be responsible to and report to the board. They will not be unaccountable. The second thing to stress is that, on a strategic level, they will report simultaneously to the chief executives of the health board and the local authority.

Clear lines are laid out for the role, powers and job description of the chief officer. Some of the fears are perhaps based on misconceptions rather than being real, because it is clear to us that what the officer does will be very much under the board’s control.

The view has been expressed that the policy intention has not been translated into the wording of the bill. We will have to consider that at stage 2.

We will do that.

Kathleen Bessos

That is right. We have a human resources technical working group considering the matter. The comment has been made—and we have registered it—that the chief officer will be accountable to the joint board for developing and delivering the strategic plan. However, they will have an operational line to the two chief executives for the operational discharge of that responsibility. We will do further work to clarify that, because it is a legitimate point.

We are considering whether we need to lodge an amendment at stage 2 so that there is no dubiety on the issue.

The Convener

That was an interesting exchange. I have a wee parochial comment on it. I am concerned about the answers about the flow of acute budgets coming from non-specialist hospitals and worry about the sustainability of local hospitals that provide acute services. It seems that that will be the focus of drawing some of the budget out. I might be wrong, but I note the concern.

Richard Lyle

I say again that I welcome the intentions and objectives of the bill. Yesterday, I was fortunate enough to be part of a delegation that visited West Lothian, and I was impressed with what is being done there, including in the local hospital. I take on board the comments that you made about that.

You mentioned that you want disabled people to be involved. Later yesterday afternoon, we had another visit and we were asked how involved disabled people will be. You talked about who will be on the boards and said that there will be voting rights for the councils and health boards, but which independent people will we have on the boards? Will the bill state who will be on them? In response to a question that I was asked yesterday, I said that it might be that 100 organisations want to be on the board, but we cannot have that number at the top table. How do you intend to specify or decide who should be at the top table?

Alex Neil

There is a specification that, for example, there should be a representative from the staff side and a representative of the public, but there is a wider question about the accountability of the bodies. We have a piece of work going on to look specifically at how we can enhance the accountability of not just the health service in general, but the integration joint boards in the future. We do not think that we need to do more on that in the bill, as we believe that we have all the powers that we need. If we need to do anything by way of secondary legislation, we will do it. However, as I said, we are looking at the wider issue of accountability to ensure that there is genuine public accountability.

I would have thought that the fact that half of each board will be made up of elected councillors will, in itself, enhance accountability. The other half will comprise representatives of the health boards, and we are looking specifically at how we can enhance their accountability. As you know, we have trialled direct elections to health boards and some other ways of improving accountability, and I hope to make a statement sometime soon—before Christmas—on general issues of improving accountability.

The absolute guarantee is that we need to make sure that all the key stakeholders—the public, the end users, the third sector and the independent sector—are involved. The bill states throughout that they have to be involved—not just consulted, but involved—at both partnership level and, more important, the local level, because that is where a lot of the key decisions that will concern end users will be made.

Richard Lyle

I welcome that comment as I believe that they should be involved.

When I was asked this question yesterday, I could not answer it. Why did we change the name of the bill to the Public Bodies (Joint Working) (Scotland) Bill? I think that COSLA got a bit upset and thought that you and other cabinet secretaries were going to grab extra powers from everywhere else. Why did we change the name of the bill?

Alex Neil

I point out that it is not an enabling bill of the kind that has been introduced in previous periods of history by other regimes.

This is where the lawyers come in, including the Parliament’s lawyers. What initiated the change to the title is that, under the bill, what used to be called the Common Services Agency will now be able to provide services much more widely and not just to the health service in Scotland. The fact that it will be able to provide services across the entire public sector will be good for public sector efficiency and cost effectiveness and will improve the delivery of services. However, because we included that provision in the bill, its original title was no longer legally competent, so we had to amend it. I fully accept that it is not the sexiest bill title in the world, but the important thing is the bill’s substance, rather than its title.

Richard Lyle

My last question is on VAT, which you will have heard me ask earlier. Different arrangements for VAT apply to local government and NHS boards. Do you have any concerns about that? What work is being done to ensure that no extra VAT will be paid once the bill is passed?

Alex Neil

We are in a state of advanced negotiations with HM Revenue & Customs on that very issue. Although I cannot forecast exactly what the outcome will be, I am reasonably confident that we will hopefully end up in a position where there will be no VAT implications in terms of additional expenditure arising from these measures.

Of course, in 2016 we will have powers over HMRC so we can rectify any outstanding matters after that.

I certainly agree with that comment.

I think that Bob Doris has a supplementary question on that.

Bob Doris

Mr Lyle used the expression “top table”, and I think that the cabinet secretary gave a hint about this in an earlier answer when he mentioned locality planning. Is there any information available on who would sit at the table—let us call it a wider strategic table rather than a top table—to sign off strategic plans? There has been almost an expectation that various other bodies might sit at that table—I will not list them, because any that I miss out will take it as a slight that they are not considered as strategically important as the others. Who might sit at that wider strategic table and who will have voting rights?

More important, can you say a bit more about the locality plans that joint boards will be under a statutory obligation to produce? The expression “top table” motivated my supplementary question because I see this bill as being a community planning initiative as much as a top-down initiative. Therefore, it would be helpful to hear a little more about the importance of locality planning. Perhaps that is an area where other stakeholders from the front line could be involved.

Alex Neil

As I said earlier, the key thing is the strategic commissioning plan, which will determine exactly what each board will do. That is one area in the bill where we have been quite prescriptive both about the consultation group that must be set up and about the people who need to be involved in the development of the strategic commissioning plan. Clearly, I would like the process to be as much bottom-up as it is top-down because the strategic commissioning plan should be largely determined by the adult health and social care needs of the community.

Perhaps, without going into inordinate detail, Alison Taylor can give you a flavour of how we believe that the locality planning mechanism would typically work and who would be involved in that.

Alison Taylor

As you can see from the bill, we have not set out a prescriptive process on locality planning. That is in direct response to what we were told by stakeholders and partners, particularly those who were already doing something like locality planning well. It would be difficult to find two examples that are particularly similar, as there is huge local variation in how locality planning works, who exactly is around the table—that can depend on the balance of local need—how often they meet and what sorts of decisions they look at. The onus was very much on us to encourage the development of local innovation and not to be prescriptive.

The bill provides various powers to set out the range of people who need to be involved in strategic planning and who need to be consulted. Again, I do not think that ministers are minded to be particularly prescriptive about the numbers of people who would be involved or that sort of thing, because those are matters that the evidence tells us work better when they are agreed locally. In locality planning, I think that there needs to be a very strong role for local clinical professionals. From memory, we can see some good examples of that in NHS Grampian and there is an interesting model at work in Nairn. A lot can be learned from those places, and that is where our attention should go.

Will there be guidance on local engagement?

Alison Taylor

Yes, absolutely. I apologise, as I should have said that.

Bob Doris

Regarding the wider strategic plan, although other bodies are not mentioned on the face of the bill, I understand that the bill is not restrictive. There is nothing to stop joint boards co-opting other partners on to the board, perhaps without voting rights, for example.

Alex Neil

I think that a good comparison can be made with the process for going for planning permission to build a new building. There are statutory consultees, who absolutely must be consulted, but developers must also show that they have consulted the wider community. The process will be similar. There will be statutory consultees, but that is the de minimis position.

12:15

Will there be best practice guidance on that?

Yes, there absolutely will.

Kathleen Bessos

There is guidance about strategic commissioning, from which we are learning a lot of lessons. We will produce guidance on the bill that builds on what we have learned.

We have sent out the “All Hands on Deck” report, which describes the key principles of locality planning, and we have asked partnerships to look at the report and consider, with support from the joint improvement team, how it fits their local circumstances. Partnerships can use it as a template as they start to work things through. In January we will get some feedback about putting the report’s guidance into practice, which we will use as we develop proper guidance, on which we will consult.

That is helpful, thank you.

In evidence, we have heard concern about matters such as governance, finance, audit, staffing and sharing information—the list goes on and on. How can such issues be satisfactorily resolved?

Alex Neil

That was a long list. I think that some concerns are misplaced. For example, I am sure that we will reach agreement with COSLA on amendments at stage 2 that are needed to address its concerns about governance. It was never our intention to give me wide-ranging powers over local authorities beyond what is intended in the bill.

On funding, we have had a good discussion on the budget process this morning and we will provide an additional briefing on the mechanics of it and the flow of budget decisions. The key point is that there will be an integrated budget. We will no longer have the ridiculous position whereby for each hospital patient there is a dog fight between the health board and the local authority about who will pay when the person is discharged, which means that we end up with delayed discharge. There are a range of issues such as that one.

When the system is fully operational, I think that there will be much more efficient and efficacious use of public funding. A good example of that will be a reduction in unnecessary hospitalisations. If we can do that, there will be much better patient outcomes, and treating people at home instead of spending so much money on keeping them unnecessarily in the acute setting in hospital will free up resources that can be used to improve the quality of care more generally.

We have listened and are listening carefully to what people are saying. We have any number of groups. There is the bill advisory group, on which all the key bodies are represented. We have a ministerial steering group, which I chair. We have an implementation group and eight working parties on all of this—just for starters. The one thing that we have done on this bill is consult, and we continue to consult widely. When we get the committee’s stage 1 report, we will take any recommendations very seriously, as we always do.

Rhoda Grant

I will be more specific, because I think that you have already made those points. There are different criteria for audit in local government and in health—there are internal and external audit processes and the like. What will the body corporate’s audit function be, and how will it carry it out? What will it need to put in place?

Alex Neil

Audit Scotland is part of a group that is looking at the bill, so there is active involvement from Audit Scotland on the issues that might need to be consulted on. The audit trail will need to be clear, so that we know what happens after the money goes into the new organisations. We need to know how the money is being spent and whether it is being spent on the right things, what the approval mechanisms are and so on. The audit process is part of that. Alison Taylor will explain the mechanics of how that will happen.

Alison Taylor

We have an overarching integrated resources advisory group, which is looking at all aspects of the finance and accounting procedure that relates to what we are proposing under the reforms. Sub-groups are looking at specific topics, such as audit.

As has been raised by committee members, we have heard concerns since the bill was published that we need to be clearer on aspects such as audit, which we have taken on board very seriously. The expert groups, including Audit Scotland, have been looking at those questions. With our legal colleagues, we are considering whether any amendment to the bill might be necessary. Obviously, that will come forth in due course if it is decided that that is the best way in which to achieve clarity. Quite aside from that, there will be very detailed guidance on all these matters, an early draft of which we will share with a very large group of professionals and stakeholders at the end of this week.

We recognise that the answers to the concerns need to be clear and clearly stated. We have the work in place to get that into the parliamentary process.

Does the same apply to staffing? We have heard evidence that there are different legal requirements for interaction with staffing and training. How will that work in a body corporate that is made up of two legal entities?

Alex Neil

I will get Alison Taylor to answer some of the detail, but let me just begin with the principle, which is that the body corporate itself will not be employing people. Obviously, that may change through time, but what we envisage is that, to start with, the people who work directly for the body corporate, such as the chief accounting officer, will be seconded from the local authority or the health board. The reason for that is that, as you will know, employment law is very complicated and it could raise a lot of issues that would make the whole integration process unnecessarily complicated. Therefore, the wisest thing to do at this stage is what we are doing, which is to work on the basis that people will technically be employees of the local authority or the health board, not of the body corporate.

Rhoda Grant

But that will surely require more work. If someone is seconded to the body corporate but kept on the local authority payroll, who will do their local authority work when they are doing the new job? Do you understand what I am driving at? There is a cost involved that is not covered in the bill, and there is no additional funding for it.

In terms of the joint accounting officer, his or her salary and associated costs will obviously be met out of the integrated budget.

Kathleen Bessos

It will be jointly paid for by the board and the council.

Alex Neil

Obviously, bodies can make their own arrangements, but if the local authority or health board seconds somebody to the body corporate, it will do what it does whenever it seconds anyone, which is to make the necessary arrangements for somebody else to do the job that the person was doing, if it still needs to be done. That is normal procedure.

That would surely mean additional costs for covering for backroom staff, which would take away money from front-line services.

No. The person being seconded will do a job that will have previously been done by the local authority. It will be the same job, but it will be done under the aegis of the joint board.

Rhoda Grant

Let me just pursue this. For example, an HR officer who works for the local authority may be seconded to the new body. They will have done work for more than one department when they were part of the local authority. That work will surely need to be covered by somebody else, which will mean an additional cost.

Alex Neil

To be honest, I think that, to start with, that kind of central service will still be provided by the local authority and the health board, because the people working under the aegis of the body corporate will still, as I said earlier, be employed by the health board or the local authority.

Rhoda Grant

Okay. To take the example that you gave earlier of acute clinicians going out to work in the community, could somebody work in the community beside a social worker or care worker and have a different chain of command, line of management, personnel officer and pay structure?

The chain of command for the job that they do will be with the body corporate. Obviously, there is a wide range of pay structures and pay scales within health boards and local authorities, let alone between them, so that will just continue.

So they will remain their employees. Who will the body then employ?

Kathleen Bessos

It will not have to employ anybody. It will not be an employing body at that point. The people delivering the services will still be employed by the council or the NHS board. They will not have changed their employers and there will be no requirement to do so.

Rhoda Grant

Who, then, will give directions for what happens? How will a body share resources, put a budget together and then get people to work across sectors if they are still in their silos? How does this work? I am getting more and more confused by the answers.

This concerns the legalities.

John Paterson (Scottish Government)

For somebody in the local authority who provides social work services, the line management is through the local authority and ultimately to the chief executive. The chief executive directs that they follow direction from the chief officer in the chief officer’s role as operational director. They are then required to follow that direction from the chief officer as operational director.

Rhoda Grant

If they are still paid by the local authority, why does the body corporate need a budget? If all the costs are undertaken, why do we need audit? If the body corporate only directs how services happen on the ground, why does it need a budget at all?

It is a question of control over the resource.

Kathleen Bessos

It needs to direct how that resource will be deployed by the people in the local authority and the NHS. The chief officer has the overall budget, and on the back of the strategic commissioning plan there will be changes required over a period of time. The chief officer, on behalf of the joint board, will direct those services to be delivered in a way that complies with the strategic plan.

John Paterson’s point is that this bill enables the chief officer to give directions to the health board and the local authority to ensure that the staff employed fulfil that requirement. It is all tied up legally.

I suppose that this gets to the difference between the body corporate model and—

Kathleen Bessos

—and the lead agency.

The Convener

The lead agency model in your area, Rhoda, does not require that transfer of employment.

What is the downside in terms of co-location of people? Does it drive the cultural agenda forward? Will it be able to achieve the results that you have witnessed and testified to in the Highlands?

Alex Neil

Some folk were at West Lothian yesterday, where it is already done and works very effectively. It is done very effectively on the lead agency model in the Highlands. Even in areas that have not had formal partnership agreements in the past, such as parts of Fife, it is done. For example, there is co-location in Queen Margaret hospital in Dunfermline between social workers and health professionals who all work as one team. It is done in Grampian.

You should curb your enthusiasm or any minute now you will be scrapping this legislation.

Rhoda Grant

I want to get to the bottom of this. If, for example, you shift the balance of care from acute to care in the community and the body corporate decides that it does not need a consultant in an acute hospital but that it needs five or 10 more care workers for the cost of a consultant, does it tell the NHS to terminate that contract or not fill the contract as it would normally have done? Does it then go to the council and tell it to employ maybe five more workers? Is that how it would work?

Alison Taylor

There will be guidance about the directions that need to go to the health board and the local authority from the body corporate. That will be developed in good time. We would not envisage that they would be at that level of granularity. We would expect to see an expression in the strategic plan of a shift in investment and activity from one bit of the system to another.

The other important point is that the joint board is composed of members of the health board and the local authority. The chief officer has a strategic role in relation to the joint board, and an operational role in relation to the health board and the local authority. The key to all of this is that people work and plan together across the totality of available resource. Yes, there will have to be a discussion about how to deploy resources to best effect locally, as there is now. There are places which, for example, have quite significantly shifted their consultant geriatric input from hospital to community.

The body corporate will not have the powers to direct. It may make up a strategic plan, but it has no way to fulfil that plan.

Alison Taylor

It has powers to direct delivery on the back of the strategic plan.

The accounting officer answers to the chief executive. Surely the chief executive can say, “No, we’re not going to do this.”

12:30

Alison Taylor

The chief officer will be accountable to the joint board for the functions that are delegated to that board to strategically plan the delivery of services. The chief officer will have a day-to-day role. That is built on models that are more or less in place—it is similar but not exactly the same. On the operational side—in the day-to-day role in the delivery of services—the chief officer will have a close relationship with the two chief executives.

John Paterson

I talked about directing, which is separate from exercising the power of direction. A power of direction ultimately allows a direction to be given to tell someone that they must do something. In the way in which organisations operate normally, a formal direction does not require to be given on everything that is done. Normally, people are asked to do things and they do those things. It is only when conflict happens and a requirement arises for a formal direction to be given that one is given.

Rhoda Grant

You seem to be trying to legislate for good will. If the good will existed, integration would be happening, as in the Lothian and Highland areas. The bill will push people down a street. Unless somebody is empowered to take the lead when consensus does not exist, you are trying to legislate for good will.

Alex Neil

The body corporate and the chief officer are empowered. Everybody needs to work on the basis of good will and trying to take people with them, but the body corporate has the ultimate power to do what is necessary to deliver an integrated service. The powers of direction to deal with a recalcitrant health board or local authority are vested in the body corporate. That has been missing and is why we have failed on integration for many years.

Nanette Milne

Given the available time, perhaps some of my questions could get written responses rather than answers now. Someone has told us that the term “public services” would be more appropriate than “public bodies” in the bill’s title, given what we are trying to achieve. Do you have a comment on that?

I do not see the advantage in changing the bill’s title at this stage. What matters is the bill’s substance, rather than its title. However, I agree that it is always desirable to have a sexier title if that is at all possible.

Nanette Milne

It was the independent sector that made the comment.

I totally agree about the involvement, particularly at the locality level, of clinical health professionals. I lived through the GP frustration and disillusionment with CHPs.

It is crucial to involve GPs and other professionals. You said that they must be embedded. How will you enthuse them about that?

Alex Neil

A lot of enthusiasm is out there, because people realise that we are serious this time. We are going to do this—there will be a law—and people will have no other option, so integration will have to be done.

Two mistakes were made with the CHPs. One was that they were made sub-committees of health boards. The other was that integration was not a statutory requirement; it is only now becoming a statutory requirement. That is why the disillusionment set in.

Every medical professional—such as doctors, nurses and particularly community nurses—whom I have met has been utterly signed up to integration. We will make absolutely sure in guidance that, at the locality level and the partnership level, all the key people—the stakeholders who need to be involved and not just consulted—are involved.

The CHPs were not local enough—they lost the locality. That is terribly important.

That is right.

Nanette Milne

A lot of concern has been expressed that no complaints system is spelled out. Will you give detail—not necessarily now—on that? In particular, the disabled groups that we met yesterday said that, as have a number of other people. That is a concern given the different complaint routes—it is a bit like what Rhoda Grant has said about other issues.

Alex Neil

We have a stream of work on exactly the issue of establishing a complaints procedure that is fit for purpose. Obviously, local authorities and health boards have different complaints procedures. We are working on that, but we certainly do not anticipate needing a big change in primary legislation to do it. I mentioned that we have eight working parties. We have a stream of work specifically on complaints, which will, I hope, report by, roughly, the turn of the year.

Kathleen Bessos

Yes, it will have reported by the end of this year.

My other questions probably should be given a written response. One is about the options that are being considered in relation to pension funding, including the costs.

Alex Neil

Again, that is a wee bit of a red herring, in that the bodies corporate will not employ people and therefore will not be directly involved in pension issues. Obviously, however, over time, they might employ people, so there is an issue. If in future years somebody transfers their employment to a body corporate and their pension fund is in deficit, we have to ensure that we do not inherit a share of the deficit, which is historical. A technical amendment to the bill is probably required to deal with that. However, beyond that, we do not see a big issue with pensions, for the simple reason that the bodies corporate will not actually employ anybody.

The point was in connection with what is set out in the financial memorandum—at paragraph 116, to be exact.

I think that the Finance Committee drew that issue to the committee’s attention, but it is well in hand.

Okay. Another issue from the same source is whether any additional funding is to be provided in the event of a successful equal pay claim.

Alex Neil

No, because it is nothing to do with us. If there is an equal pay claim in the local authority, whoever works for the local authority will be part of that settlement. If there are equal pay claims outstanding in health boards, the same thing will happen. We are not employing anybody. It is the employer who has to settle with the employee on equal pay.

Almost finally, do we have costs for the provision of funding for delivering Healthcare Improvement Scotland inspections under the integrated model?

Alex Neil

At the moment, the Care Inspectorate and Healthcare Improvement Scotland can with my permission carry out joint inspections. We will lodge an amendment to allow them to carry out those joint inspections without always having to come to me for permission—in fact, I think that that is already in the bill. As you probably heard earlier, the Care Inspectorate and HIS are working together on the implications of integration for the delivery of inspection services. HIS will launch a consultation fairly soon in which one of the subject areas that will be covered will be the implications of integration. Obviously, eventually, we will need a more integrated inspection regime.

Another strategic challenge is that, as we drive more and more to have people have their health and social care delivered much more at home, we need to be satisfied that we have robust systems in place for picking up any problems of abuse that there might be, particularly in relation to dementia patients, for example, who perhaps are not capable of reporting incidents themselves. I have charged officials and the agencies to look at that as a strategic issue that we need to address. Clearly, we cannot put a closed-circuit television camera in everybody’s house—I hope that nobody is suggesting that we do that under the bill—but there is an issue about abuse at home. South of the border, there was a recent example in which a TV company installed a CCTV camera, and the way in which the older person, whom I think had dementia, was being so badly treated did not make for pleasant viewing. We need to develop more robust systems for ensuring that we pick up any abuse of people who are being treated at home.

Finally, we know that most partnerships, apart from Highland, appear to be going down the body corporate route, but do you have final figures on that yet?

Alex Neil

A couple of areas have explored the lead agency model but, to the best of our knowledge—we are in pretty close touch with all 32 areas—the only part of Scotland that is likely to use the lead agency model is the Highlands. That is our clear impression at the moment.

Mark McDonald

I will try to keep this brief, not least because I have a meeting to get to at 1 o’clock.

This morning, we heard from the Scottish Public Services Ombudsman and others that the complaints procedures should be standardised under the new model. We heard different evidence from NHS Dumfries and Galloway: its view was that there was no need to rush at standardisation. What is the Scottish Government’s view on complaints procedures? Do you think that there would be merit in some form of standardisation?

Alex Neil

Inevitably, there has to be a clear single complaints procedure to allow people to make complaints against the body corporate or the lead agency. There is no doubt at all in my mind that people need to have clarity on the complaints process. That is the stream of work that is being done that I mentioned earlier. The SPSO is involved in the group that is undertaking that work. It will report by the turn of the year. At the appropriate time, we will share the outcome of that with the committee before we proceed. We will consult on the working party’s recommendations, but my view is that the ombudsman is right about the need for a single complaints procedure for the services that will be covered. However, we will wait and see what the working party says.

Mark McDonald

The ombudsman expressed concern that work on complaints and scrutiny can sometimes drag on. He pointed to the Crerar review, which was commissioned in 2007. Some of its recommendations have still not been fully implemented. Do you intend to pursue the issue with some vigour, to ensure that there is not an unacceptable lag between implementation of the legislation and implementation of a standardised complaints procedure?

I say unequivocally that there will be no dragging on my watch.

Thank you very much.

The Convener

I understand that you were not here for the whole of our earlier session, cabinet secretary. As I said to the ombudsman, we made similar recommendations about complaints, commissioning, the development of the new workforce and national care standards in January 2012. Many of those recommendations were accepted by the Government. That was 18 months ago, so there are significant questions to be answered.

Can I clarify that we do not need legislation to address the issue of national care standards or the integration of the Care Inspectorate and HIS? Is there a contradiction, in that one has statutory powers and the other does not?

Alex Neil

As far as the way forward that we have agreed is concerned, we do not see any need for additional primary legislation beyond what is in the bill. On the complaints procedure, there is already a substantive legal framework for complaints in Scotland. We are talking about the process, rather than the statutory basis of the complaints procedure.

If there is a requirement to make any legislative changes—on complaints, for example—we believe that we have the powers to do that in secondary legislation. I think that the Public Services Reform (Scotland) Act 2010 allows us to do that. It probably gives us the powers that we need to do anything that we might want to do in secondary legislation.

The Convener

To support the ombudsman’s claim, there is much that could have been done on the national care standards and outcomes—on which the committee made unanimous recommendations that were accepted by the Government—over the past 18 months. What has held us back?

Alex Neil

I do not think that we have been held back. Certain things happen at certain times. The priority has been to get the principles of the bill agreed. On complaints, we have not been sitting back doing nothing. Work has been going on on complaints over the past 18 months. Obviously, we have to try to take people with us. In this case, that means COSLA, and it is heavily involved in the complaints work that will report at the turn of the year.

12:45

The Convener

I am sorry to press you, cabinet secretary. You said earlier that we do not need the bill to deal with complaints or the national care standards. If the national care standards have not been reviewed in nearly 12 years, why has that work not been completed in the past 18 months?

First, in terms of complaints, what I am saying to you is—

We were talking about the national care standards, not necessarily complaints.

Alex Neil

Sorry—I thought that you were talking about both. On the national care standards, we looked carefully at the committee’s recommendations and accepted in principle the need for review. One issue is that we need to consult the appropriate people before we announce a national review of the national care standards. Also, we wanted to be a bit further down the road with the bill and all the infrastructure around it so that, by the time that we reviewed the national care standards, people could look at that in the context of knowing the shape of the bill, which will impact on what people say about the future of the national care standards. In particular, there is an issue around the future interplay between clinical standards and the national care standards. This is the appropriate time to review the national care standards, now that people know exactly what is happening on integration.

Kathleen Bessos

In the parliamentary debate at the beginning of the process, the cabinet secretary gave a commitment to Parliament that we would ensure that the review of the care standards was carried out with our informal process for looking at outcomes. The national outcomes that we have put into the consultation must link together with the care standards. As we speak, we are going around the country asking members of the public, including older people’s groups and broader groups, “This is what we’re planning around care standards. What do you think about the future? Here is what we’re saying about the national outcomes.” We have brought the two processes together. My team and colleagues from the care standards and sponsorship branch of the Scottish Government are jointly going around the country, talking to people on the ground about the care standards and the national outcomes. We wanted to avoid totally confusing everybody about what the care standards and the national outcomes are, so we are having joint presentations, joint discussions and joint debates both with members of the public and with the professionals.

I am pleased to hear that, but I must have missed it in my constituency. I do not know whether any other committee members have come across it. It would be interesting to hear about it.

Kathleen Bessos

We could give you a list of places where we have been. We started in Shetland and have been down to Dumfries and Galloway. We have also been to Paisley, Dundee and Aberdeen. We can give the committee information on that.

The Convener

It would be nice to hear about that work. I make a plea on behalf of the committee. We have done a lot of work in the area and have made a number of recommendations. There was an indication that the committee would be kept up to date with that work, and it would be useful if we were. I am glad to hear that we are making progress in and around the complaints work.

I know that the cabinet secretary is under pressure and that committee members have another meeting to go to, but there are some issues and questions that have not been covered today, including some of the financial issues. Would it be okay if we wrote to you to get responses on those on the record?

Yes. That is no problem at all. If there is anything that the committee feels that it needs additional information on, we will supply that—no problem.

I thank you and your colleagues for your attendance this morning.

Meeting closed at 12:48.