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Chamber and committees

Local Government and Communities Committee

Meeting date: Wednesday, February 24, 2010


Contents


Single Outcome Agreements

David McLetchie

Let us take one of those national indicators—to increase the rate of new house building. Despite the Government’s efforts in relation to the council house building programme, there is not the remotest prospect of the rate of new house building increasing in this parliamentary session. In fact, the rate of new house building has declined dramatically as a result of the economic situation. Is that not the case?

Cabinet Secretary for Finance and Sustainable Growth (John Swinney)

Thank you, convener, and good morning. I welcome this opportunity to discuss the development of single outcome agreements and their contribution to bringing about positive change for people and communities throughout Scotland. The agreements, along with the first set of single outcome agreement annual reports that councils have produced, reflect a fundamental shift in how public services in Scotland are organised, and that shift promises better outcomes and better accountability.

For the first time, all of the public sector is united in pursuing a shared Government purpose and set of national outcomes. That approach is flexible enough to enable councils and their local partners to support the national ambitions in ways that reflect local priorities. We are freeing up local partners so that they can choose how they use the resources at their disposal to pursue their priorities. With closer partnership working behind those shared ambitions should come better use of resources and faster progress towards mutual goals.

Councils produced their first single outcome agreement annual reports last autumn. They offer a valuable new tool to promote accountability to local communities by painting an overall picture of the key ambitions for councils and their partners, towards which they work together, pulling together their collective resources.

We have substantially reduced the number of ring-fenced council funds. In the process, we have removed a great deal of bureaucracy, which is enabling councils to use their resources more efficiently in the pursuit of shared priorities. There are different views about the loss of ring fencing. To put things into perspective, only about a quarter of local government funding was ring fenced before the introduction of the concordat, and that has now fallen to about 10 per cent.

Single outcome agreements and the related annual reports provide a potentially powerful new source of information and evidence about performance. They should complement the other sources of evidence that remain available to us, including external audit and inspection reports and statistical information. The first single outcome agreement annual reports cover progress that was made in 2008-09. Progress has continued apace in 2009-10, and I fully expect it to do so in the future.

Community planning partnerships are working together to deliver the shared local outcomes that are set out in the second phase single outcome agreements that community planning partnerships agreed with the Government last summer. We are working closely with local government to support those efforts, and we have a special focus on local outcomes relating to economic recovery or to the three major social frameworks that we have developed with the Convention of Scottish Local Authorities, on addressing poverty, combating health inequalities and giving our young people the best start in life. Work continues to improve the information base on which progress towards outcomes is measured.

Our outcomes-based approach, and the role of single outcome agreements within that, remain work in progress, but there is already clear evidence of progress and there is a shared ambition to improve the impact of public services on the lives of individuals.

I am happy to answer any questions.

David McLetchie

Okay. Does the Government think that the national indicators and targets that underpin the outcomes are still valid in view of the changed financial and economic situation since the concordat was drawn up?

John Swinney

Yes. Without exaggerating, it is fair to say that hundreds of indicators could have been selected to judge performance in the national performance framework. I concede that the exercise was subjective. Ministers established a set of desirable national outcomes, of which there are 15 in the concordat, as Mr McLetchie correctly said. Those were also set out in the Government’s performance framework and in the 2007 spending review. Ministers considered which indicators—some of them very measurable and some less measurable—would enable the assessment of performance against the national outcomes, and we settled on them as national indicators. We will maintain those national indicators throughout the term of this performance framework.

As I said, the Government concedes that many other indicators could have been selected as performance measurements and remains open to discussion about whether the national indicators capture all the significant points in assessing performance. Certainly for the duration of the current spending review period, the national indicators will remain valid for the Government as indicators of performance in measuring progress towards achieving the national outcomes.

David McLetchie

So we can have a realistic re-evaluation about the pie-in-the-sky aspiration to have everybody in primary 1 to 3 in class sizes of less than 18 by 2011, but we cannot have realism in relation to pie-in-the-sky national indicators about increasing the rate of new house building. One is a consequence of the changed economic situation, and so is the other. Why change one but not the other?

John Swinney

I do not see any reason why we should not remain aspirational about the targets and aims that we are trying to achieve across the board in Scotland as a consequence of a number of policy interventions.

I will develop the point about house building, because Mr McLetchie raises an interesting issue. The planning system is fundamental to whether we can realise the increase in the rate of new house building that is envisaged in the national indicators. The committee is aware that I have spent a great deal of time on implementing the planning regime that was agreed in the previous session and driving a process of efficiency improvement and efficiency gain within the planning system. I would like to think that that has contributed towards assisting conditions so that we might increase the rate of new house building.

None of that involves money; it involves focus, policy priority and a change of culture in the planning system in the Government planning department and in the agencies and local authorities of Scotland. On Monday evening, I met the planning conveners of all local authorities in the country to set out some of my thinking about how they should be approaching many of these questions.

The class size issue is heavily dependent on resources. Resources for local authorities have had to be reset to a level that is lower than they could have expected from the spending review, because of the budget reductions that the chancellor has applied to Scotland. We have recognised the impact of that on the class size commitment, but in relation to a variety of other indicators none of those circumstances apply and the Government’s sense of ambition remains—we are resolute in trying to achieve the indicators that we set out in 2007.

The Convener

We had a recent round-table evidence session on the changing situation, how the recession might affect local government and give it additional challenges, and how it will meet those challenges. At that session, Professor Alexander suggested that the Scottish Government should renegotiate the concordat and the single outcome agreements and import into that process a way of measuring and driving efficiency. Many of us agree with the aspirations in the single outcome agreements in relation to drugs and so on, but there is a question whether single outcome agreements are the drivers to deliver the outcomes that you referred to in your opening remarks. Did your recent discussion with COSLA amount to a renegotiation to ensure that measuring and monitoring take place to determine outcomes?

John Swinney

Comprehensive performance measurement information is available. As I said in my opening remarks, local authorities have published reports on how they have developed and delivered on their single outcome agreements for 2008-09.

As for Professor Alexander’s point, the new single outcome agreements for 2009-10 were formulated by all community planning partnerships, which include not only local authorities but other public and third sector partners. As a result, I contend that the single outcome agreements, certainly for 2009-10, take into account the change in economic circumstances brought about by the recession. As to whether we achieve all the objectives in the single outcome agreements, that will become apparent as the reporting takes its course, which reassures me that we have an effective way of monitoring community planning partnerships’ effectiveness in taking forward this agenda.

The Convener

But the point has been made not only by academics such as Professor Alexander. In its report “An overview of local government in Scotland 2009”, the Accounts Commission highlights failures in defining and measuring outcomes and re-emphasises the need for improvements in performance management reporting. How have you addressed such criticisms?

The Convener

I understand why you prefer the deputy auditor general’s comments to the comments made by the Accounts Commission. You said in your opening remarks that you expected better outcomes and accountability and reduced bureaucracy. On page 17 of its report, the Accounts Commission says:

“The audits showed many CPPs to be overly bureaucratic and not focused enough on outcomes for local people. The performance management and monitoring processes of partnerships are not well developed and there is a clear need to improve the way they report performance to the public.”

How have you responded to that?

John Swinney

There is a great deal more alignment now than there was when I came into office.

The Convener

So is that issue sorted?

John Swinney

Part of the answer is contained in the paragraph that Mr Tolson just read out, which, unless I misheard him, said that we were achieving greater alignment, so I am not sure that I understand where he is coming from.

As far as the progress that has been made is concerned, the three major themes that I highlighted in my introductory remarks were tackling poverty, combating health inequalities and giving young people the best start in life. The major pieces of social framework development that we have taken forward through joint working with COSLA and through the community planning partnership process are powerful examples of how we have encouraged a focus on delivering better outcomes at local level. Tackling health inequalities is not just about the health service but about adopting a highly integrated approach to service development and delivery. Giving our young people the best start in life involves meeting a wide cross-section of different requirements through, for example, the work of the education service, the health service and, in some circumstances, the criminal justice service.

One thing that has struck me from our experience over the past few years has been the way in which community planning partnerships have focused on the need to take action to support economic recovery. CPPs have looked afresh at their own priorities to find ways of maximising their contribution to economic recovery.

Jim Tolson

I appreciate that. I read out the paragraph in question because it showed that there is a balance. I do not deny for a moment that that part of the report highlights that there has been some progress, but my concern is that that progress is quite disjointed and is being made at different paces by different local authorities, with the result that the targets that the Government set in the first place are not near being reached.

Alasdair Allan

The overview report comments that single outcome agreements

“represent early learning and rapid delivery in a radical shift in the way in which government in Scotland works towards shared outcomes.”

Can you offer evidence that gives examples of that or in any way suggests that that is accurate?

John Swinney

We asked authorities to move to a very different way of working very abruptly. I think that I have been in front of the committee before answering that very question, and I have made it clear that I make no apology for driving reform at the pace at which I have driven it. I felt that a move towards a focus on outcomes in the public service in Scotland was an aspiration that, for far too long, had gone unmet as a policy approach. I also felt that there was frustration among the public at the lack of integration of public services at the local level, with members of the public having to join up public services rather than public services being joined up for them. I felt that we had to recognise that there were better ways of working and drawing together the contribution of different public service organisations. In that respect, I think that we have been able to bring together a very different approach to policy making.

The Convener

I am sorry to have to return to the Accounts Commission report, but it says:

“The audits showed many CPPs to be overly bureaucratic and not focused enough on outcomes for local people.”

The report goes on to make another important point about the extent to which people are aware of the good work that is going on, to which Alasdair Allan referred:

“The performance management and monitoring processes of partnerships are not well developed and there is a clear need to improve the way they report performance to the public.”

You have outlined what already exists, but there is a clear need to improve awareness.

John Swinney

That is fair comment, and I of course expect the committee to examine the report carefully. The committee will not be surprised to hear me say that I, too, consider seriously such reports, which form part of the discussion that will take place on the management and monitoring of community planning partnerships and the approach to single outcome agreements.

To answer the point that Dr Allan raised, the report says:

“The Commission welcomes evidence of areas in which councils are providing good quality outcomes for citizens – for example, in targeting care services more effectively to meet needs, and in working well with local partners to deliver aspects of addiction services.”

Those are practical examples of things that matter to people, which I think is what Dr Allan was getting at. I am sure—indeed, I am absolutely certain—that people are more interested in the quality of the services that they receive than in reading a single outcome agreement report card. That is the distinction that I would draw. However, those matters will certainly be fully considered as we assess the issues arising from the report.

10:45

The Convener

As I am sure you are aware, the Accounts Commission report also gives some views about the quality of services. Those make for interesting reading. However, I am pleased that we have moved on, in that you have conceded that you will take those issues into account and that they will be taken seriously.

John Swinney

We have published the report “Single Outcome Agreement Overview Commentary—Progress in 2008-09”. I am certainly considering what the appropriate level of information should be. Obviously, each single outcome agreement will be published annually. Whether the Government needs to provide an annual consolidated overview of all SOAs is a proposal that I will consider.

John Swinney

I will consider the issue as part of the process.

John Swinney

I am certainly confident that fairer Scotland fund resources will be used in a fashion that is appropriate for their purpose. My point about terminology is that different single outcome agreements will have been formulated using different wording, but the substance of what they contain encapsulates how the resources that are available to the partners through the fairer Scotland fund will be used to achieve priorities at the local level.

John Swinney

Mr Doris will see from the various points of analysis that are produced by the Improvement Service and the Accounts Commission in relation to the best-value regime, and from within the health service, that issues such as national outcome 6, which he highlighted, are not just within the province of local authorities but involve activity in the health service and in other public sector and third sector providers. It is therefore clear that examples of good and best practice can be identified and taken forward as examples of how individual authorities or CPPs could develop their services effectively.

John Swinney

I agree that this is not a simple area of analysis. For example, the work of a community planning partnership will involve contributions from an elected local authority that is responsible to its local electorate, a health board that has been appointed by a minister, for which the minister is responsible to Parliament, a fire authority that, in all but one case, is responsible to a board that is comprised of representatives of a multiplicity of local authority areas, and a police authority that, likewise, is, except in one case, responsible to a board that is comprised of representatives of a number of local authorities. Although even in a CPP accountability is spread across a number of areas, crucially there are existing levels of accountability that provide for, for example, a chief constable to be held to account for non-operational matters by his or her police board or a health board chief executive to be held accountable by a board and a minister.

When we get into some of the wider issues of shared services, it is necessary for governance to be addressed effectively to ensure that the public have comfort on how issues will be dealt with. By necessity, the arrangements may well vary from one part of the country to another, but they must all result in no diminution of democratic accountability or effective governance in relation to the use of public resources. Those considerations will be uppermost in the minds of ministers when they consider any proposed arrangements and they will also have to be uppermost in the minds of the members of any partnership that introduces such proposals, because of their responsibilities, as elected members or as accountable officers, for financial commitments.

The Convener

In your meetings with partners such as Audit Scotland, local authorities and the Convention of Scottish Local Authorities, how much time have you spent discussing the need to create the mechanisms for joint accountability that you have just described?

John Swinney

There is a difference between the two areas. I was talking about the point that I thought we were addressing, on a shared services agenda. I accept that there is a set of governance arrangements that have to be developed in accordance with the schemes that emerge in different parts of the country.

Guidance about accountability arrangements—from which I think the convener quoted—has already been issued to community planning partnerships. That guidance is in the public domain.

Patricia Ferguson (Glasgow Maryhill) (Lab)

Good morning. I am aware from some of the reporting that there have been a number of asks—227, from memory—from local authorities. Have those been responded to positively? I suspect that not all have, because that would be impossible. How many have been responded to positively? How has the whole issue of handling such questions from local government been dealt with?

Patricia Ferguson

Is there a list of responses that the committee could consult to get a feel for how things are progressing?

John Swinney

I do not think that we have a published document, but if I find any more information I will be happy to provide it to the committee.

John Swinney

There are 32 community planning partnerships in Scotland—one for each local authority area—and 16 directors in the Scottish Government interact with them. In other words, one director interacts with two partnerships.

John Swinney

I have met some community planning partnerships whose boards include members of the public—they are there as members of the public—although that is not the case in every community planning partnership. One board, if my memory serves me correctly, is chaired by a member of the public as an independent figure.

In respect of assessing and identifying demand for services, many choices are the responsibility of elected members of local authorities or of board members who are selected for that purpose under statute by ministers. Decisions are also taken by joint boards, such as police boards or fire boards, members of which are chosen by individual local authorities. They contribute to decision making in community planning partnerships. We should not ignore the fact that all those organisations will have some form of community dialogue and discussion. For example, in the constituency that I represent, the health service has a patient involvement group, which meets members of Parliament, members of the local authority and the leadership of the health board. It also facilitates meetings around the community to decide and determine local input to the design of health services.

Mr Wilson is right that there must be an effective channel of community participation to raise issues, to set the agenda and to set out the aspirations for a locality. I envisage that that would be reflected in the activities of the community planning partnership.

The Convener

That paragraph—paragraph 64, I think, in the section on citizen involvement—goes on to say that more work needs to be done.

John Swinney

I was quoting from a different Audit Scotland report.

The Convener (Duncan McNeil)

Good morning, and welcome to the sixth meeting of the Local Government and Communities Committee in 2010. As I normally do at this time, I ask committee members and the public to turn off all mobile phones and BlackBerrys.

Agenda item 1 is to take oral evidence on the progress reports for the first round of single outcome agreements, which have now been published. I welcome the panel of witnesses: John Swinney MSP, Cabinet Secretary for Finance and Sustainable Growth; David Milne, team leader of the Government’s single outcome agreements performance team; and John Ewing, head of public service reform. Welcome to you all. The cabinet secretary wishes to make some opening remarks, and I offer him the opportunity to do so, before we move to questions.

The

David McLetchie (Edinburgh Pentlands) (Con)

Good morning, cabinet secretary. The foundation for single outcome agreements is the not-quite-yet historic concordat. I notice that the Government’s overview commentary on the single outcome agreements for 2008-09 measured the reports by reference to the 15 national outcomes that are set out in the concordat. However, I saw scant reference in the overview to the 45 national indicators and targets that are also mentioned in the concordat and which are meant to underpin the national outcomes. Can we expect to see a report that measures the progress of local authorities by reference to the 45 national indicators and targets that underpin the single outcome agreements and which are set out in the concordat?

David McLetchie

It may be a reflection of events and circumstances, but my point is why do we persist in referencing outcomes at local and national level with reference to a framework document that was drawn up in an entirely different set of circumstances, both for the economy and the public finances? Given all that has happened to the economy and public finances since the concordat was signed—there have been changes of a fundamental nature—would it not be appropriate to acknowledge that many of the outcomes and indicators have not the remotest hope of being achieved and instead start afresh from a more realistic basis, rather than continue on the basis of pie-in-the-sky aspirations that have not the slightest hope of being fulfilled?

David McLetchie

Perhaps I just have a realistic approach to life, whereas you have an aspirational one. I think that Government targets should be rooted in the realities of what can be achieved rather than being, as I said, pie-in-the-sky aspirations. If you are unwilling to change the indicators or the outcomes, how is it that Mr Russell can tear up sections of the concordat relative to a specified set of commitments?

John Swinney

As always, community planning partnerships will be required to take account of the Accounts Commission’s conclusions. After all, the Accounts Commission is there to provide that kind of advice, and I expect partnerships to respond positively to its views.

I should point out that, as is the nature of such general reports from the Accounts Commission, that assessment covers a variety of different performances, some of which will be stronger than that. However, I imagine—indeed, I am certain—that all community planning partnerships take due account of what the Accounts Commission has said.

John Swinney

I am not saying that the issue is sorted, but the Government has concentrated on the meaningful role and activity of community planning partnerships, which we are encouraging to align public services at local level. That opportunity is clearly highlighted in the paragraph of the report that I just read out, which states:

“Partnership Single Outcome Agreements ... have provided councils and their partners with an opportunity to plan and manage the delivery of local outcomes in an integrated and more effective way.”

Audit Scotland has confirmed my point that we have improved the mechanisms whereby people can work collaboratively and co-operatively at local level.

To move on to the other part of your question, an even greater challenge is undoubtedly coming the way of public services in Scotland in the form of the significant public spending challenges that we face. The arrangements that we now have in place through community planning partnerships will be fundamental in providing the necessary focus, co-ordination and cohesion at local level to manage that financial challenge. The community planning partnership model that the Government has put in place, on which it has the support of Audit Scotland’s analysis, gives us strong foundations for meeting the financial challenges that lie ahead.

10:30

John Swinney

With the greatest of respect, if you think that I have not taken that on board, you have not listened to what I have said.

The Convener

I have listened carefully to what you have said.

Jim Tolson (Dunfermline West) (LD)

Good morning, gentlemen. We do not want to keep trading paragraphs—unfortunately, we have almost reached that point—but there is one paragraph that I want to highlight and get your view on. It comments:

“These first Reports show work in progress, a process developing at different paces across the country but with a common trend towards greater local alignment of service delivery.”

I read that as being a little bit contradictory and as representing an admission that the Government has not achieved nearly as much as it hoped to achieve in that area. What evidence can you give the committee that there is greater alignment of service delivery across the country and that progress has been made on that?

Alasdair Allan (Western Isles) (SNP)

Can you say a bit more about means as well as ends? It would be interesting to know whether you believe that the existence of single outcome agreements has in any way changed the attitude of local authorities to how they go about their business.

Alasdair Allan

You mentioned the public’s appreciation of all that. At what stage will the public have before them an easily intelligible assessment of the changes that are taking place and the benefits of those changes, as you have described them? How long a process is required before readily accessible information comes into the public domain? You also mentioned what is already being produced on a day-to-day basis at a statistical level. Can you say a bit more about that, and about how you feel things will develop?

John Swinney

The scale of the challenge of presenting information in a fashion that captures public interest and public attention is not lost on all policy makers. A very wide range of information is available, and reports on performance are available for each single outcome agreement.

It is perhaps more meaningful to examine the impact on public authorities’ way of working. Do members of the public consider that they are able to benefit from the way in which public services are designed and deployed? That will become apparent in various localities, taking into account the different ways in which local authorities and community planning partnerships communicate information to the public, using a variety of mechanisms. Information should be made clear.

Using our indicators, we assess the quality of the public services that are delivered—an information flow informs that work, under the national indicators framework that we have set out.

The Convener

You would expect us to take the opportunity of using a public document—published in February 2010—that contains a critique on single outcome agreements. This is our opportunity to do that—we are excluded from the rooms where the cosy discussions take place with the people who are involved. The Accounts Commission report is a public document that raises serious concerns about how the general public are considered and the extent to which they are aware of single outcome agreements, which are a vehicle for spending large chunks of public money.

John Swinney

Throughout my answers today, I have said that the Accounts Commission report will be part of our discussions with COSLA and Audit Scotland, which is part of the group that supervises the implementation of single outcome agreements. It would be a strange discussion for us to have if we were not to reflect on a report that has been published by one of our partners in that group.

Mary Mulligan

When can we expect a decision on that?

John Swinney

Clearly, I have heard those concerns being articulated. Ministers have undertaken discussions with local authorities about the approach that should be taken to the distribution of fairer Scotland fund resources within the work of community planning partnerships, but the community planning partnerships might reflect that differently in the terminology that they use in their single outcome agreements. We have provided advice on the approach that should be taken to the distribution of fairer Scotland fund resources. Obviously, that will be taken forward by community planning partnerships at the local level.

Mary Mulligan

If the issue perhaps revolves around the terminology of how such moneys are referred to, are you confident that the fairer Scotland fund money is being used as envisaged, and that any future concerns can be allayed?

Mary Mulligan

Do you intend to carry out any specific monitoring to ensure that that happens in future?

Mary Mulligan

Finally, do you think that any guidance will be needed, particularly for the transition from ring fencing to non-ring fencing?

John Swinney

We have already provided that advice in our discussions with COSLA. Obviously, the reporting mechanisms are in place to ensure that that approach continues.

John Swinney

I am certainly prepared to consider whether an indicator on shared services might be appropriate. I am not persuaded at this stage that it is, because the Government’s approach is to encourage and motivate different public bodies to co-operate in the field of shared services. I do not think that it would be particularly constructive for us to compel or require that. A number of substantial discussions are taking place. For example, a substantial discussion is under way in the west of Scotland with the different authorities that have co-operated to commission Sir John Arbuthnott’s review. Obviously, there is an active discussion in that respect, which I welcome and very much support. Whether we translate that into a shared services indicator is a different matter, but I will consider that point.

Bob Doris (Glasgow) (SNP)

I want to begin with my own local authority, Glasgow City Council, and then make a more general point.

I am not going to make any party-political points—Mr Tolson may laugh at that, but I should tell him that I am going to praise Glasgow City Council in a second—but I have to say that, with regard to national outcome 4, which is

“Our young people are successful learners, confident individuals, effective contributors and responsible citizens”,

and national outcome 5, which is

“Our children have the best start in life and are ready to succeed”,

the council has let itself down with certain decisions on, for example, school closures and class sizes.

However, on national outcome 9, which is

“We live our lives safe from crime, disorder and danger”,

I must praise Glasgow City Council for working constructively with Strathclyde Police, its own community safety services and the Scottish Government to put more police on the beat, change patrol patterns in local areas and so on. As a result, there has been a dramatic fall in violent crime, particularly knife crime, and people feel safer in their communities. Indeed, it is an example of how Glasgow City Council has used the single outcome agreement and the community planning partnership to work in partnership with other agencies to deliver a national strategic outcome, whereas I feel that it has not delivered on national outcomes 4 and 5. However, that is my subjective opinion on Glasgow’s performance.

Widening that out, I would like to know which local authorities are excelling in certain national outcomes and which still have much to do. After all, until we have that specific information, how can some local authorities learn from others’ best practice and make progress? Has there been any attempt to rank local authorities, to green-light those that have done particularly well on certain shared outcomes or to flag up those that are struggling to perform on others—not to chastise them, but to promote improvement and bench marking with other, better performing local authorities?

Bob Doris

Okay. My terminology let me down slightly. I of course acknowledge the wider stakeholders who are involved in single outcome agreements. I did not mean to narrow it down to individual local authorities. I am happy to set the record straight on that. However, I still think that it would be good for one body to take responsibility for pointing out where there is good practice among all stakeholders so that other CPPs could learn from that. I ask the cabinet secretary to consider that point.

We have just completed a committee inquiry into local government finance and the idea of shared services, not in terms of stakeholders within one local authority area or CPP area, but between different local authorities. Is the cabinet secretary minded to ask local authorities to have an indicator in any future single outcome agreement on how they work in conjunction with other local authorities to push the agenda of shared services forward? After all, that is what single outcome agreements do: the health board, the police, the council and the CPP are all stakeholders delivering a shared agenda. The committee has given thought to shared services between local authorities, and I wonder whether such an indicator would be a way forward for the single outcome agreement process.

The Convener

We look forward to seeing it.

John Swinney

Such discussion must take place as the discussions about relevant structures take place. Proposals have been made, such as the Clyde valley proposal on which Sir John Arbuthnott has been working.





We do not yet know whether, or in what form, the proposals will be taken forward by the relevant public sector partners. The discussion about governance has to sit closely alongside questions about the arrangements that may be put in place.

Patricia Ferguson

I realise that, just because a lot of people ask the same question, it does not mean that it is the right question or that it should be considered positively, but are good ideas coming forward in the form of those asks? The suggestion to continue the town centre regeneration fund, for example, is good, although I am not necessarily suggesting that the cabinet secretary thinks that it is a good idea. If a number of authorities or community planning partnerships ask for moneys or provision that could be rolled out across the country, will the cabinet secretary take that into consideration? How would you assess asks of that sort?

Patricia Ferguson

That would be helpful.

John Swinney

Each community planning partnership is based around the local authority area and formal discussions are structured at that level.

Of course, there are different arrangements in different community planning partnership areas. In the Highlands, there are area-based structures, for quite understandable reasons. In the Lochaber area, for example, partners at an appropriate level, including local authority officials, a divisional commander of the police force and representatives of the community health partnership gather together. However, although such internal structures might exist in community planning partnerships, the Government itself recognises 32 partnerships and works with each at that level.

John Wilson

An issue that comes up again and again is the role of the community in each of the 32 community planning partnerships. With regard to the partnerships, the various papers refer to statutory bodies; you have talked about local authorities, police forces, fire services and the health service, although I have to say that I am surprised that you have not mentioned Scottish Enterprise. How do community groups, which would include the local voluntary sector, residents and tenants associations and so on tie in with the community planning partnership structure? As I understand it, the whole thing was supposed to be driven by demands from the community. If it is based on local authority structures, how can we address the issues that are of highest priority for the communities that the single outcome agreements are supposed to serve? Glasgow, for example, covers a tight geographical area and has well-defined communities, whereas in the Highlands, which you have just referred to, a number of communities are spread over the whole north of Scotland. How do those communities engage with community planning partnerships to try to shape and influence delivery of the services that are most needed within the single outcome agreement priorities?





11:15

The Convener

I thank the cabinet secretary for those remarks.

John Swinney

Up-to-date performance information on each of the 45 national indicators is reported fully on the Scotland performs part of the Government website. It is updated frequently as new performance data on indicators become available. The up-to-date material that Mr McLetchie is looking for is available 24 hours a day, seven days a week on the Government’s website.

John Swinney

I am not sure where Mr McLetchie is encouraging me to go with this line of questioning. He is suggesting that when circumstances lead to the Government being unable to achieve one of its indicators, it should change the indicator and go off on to something else. My memory might be letting me down here, but I have a funny feeling that Mr McLetchie might have condemned some of my predecessors for changing targets when they were unable to achieve them. The national performance framework says, “Here is a desirable set of indicators that will measure progress towards the achievement of national outcomes.”

I readily accept Mr McLetchie’s point about house building, which will be a significant challenge in the current economic circumstances. The Government is doing its bit by trying to encourage and motivate greater public sector and social housing activity. We have done that by spending more on social housing in this spending review period than we committed to spend when I set out the spending review information in 2007, but we all have to accept that the private house building market has been in real difficulty over the past couple of years and will remain in some difficulty for some time to come. The Government can do one of two things. We can say, “Oh, well, that is inconvenient; we will change the target and go off on to something else.” I think that we would be criticised for doing that. Alternatively, we can frankly say, “Economic circumstances have made the achievement of that target very difficult.” I think that people would accept that that was an honest reflection of events and circumstances.

John Swinney

Regardless of the difference between the economic circumstances in 2007, when the performance framework was established, and the position in which we now find ourselves, it remains desirable—to highlight a national indicator—for us to halve the gap between our total research and development spending and the European Union average by 2011. Regardless of the change in circumstances, that is desirable. Another indicator is to increase the business start-up rate. My goodness, that is essential in the current context, and many of the Government’s initiatives are designed to support and encourage individuals who have lost employment to move into business development and entrepreneurship if they are able to do that. Another indicator is to grow exports at a faster average rate than growth in gross domestic product. One of the fundamentals of the Government’s economic recovery plan is to internationalise the performance of Scottish companies. One of our weaknesses is the fact that Scottish companies are not undertaking enough international business activity, so we want them to do more.

There may well be difficulties in realising the indicators as a consequence of the circumstances in which we find ourselves, but there is a range of other indicators, such as the indicators to reduce overall reconviction rates and to ensure that we decrease the estimated number of problem drug users in Scotland. Those are all valid indicators, and I see no reason for us to change them. Achieving them may become more challenging, but that is not an argument for saying that we should not focus on them.

John Swinney

First, I will comment on the issue of whether targets are realistic, ambitious or pie in the sky. I make no apologies for being ambitious about what I want to achieve for Scotland. If you set a mundane target, you are likely to deliver an utterly pedestrian performance. We have established an ambitious set of indicators to deliver social and economic change and progress in Scotland, and I make no apology for that.

On the concordat and Mr Russell’s contribution as Cabinet Secretary for Education and Lifelong Learning, he has been involved—along with myself—in discussions with COSLA on the realisation of some of the policy commitments in the concordat, which are different from the indicators that Mr McLetchie has been questioning me about so far. We have reached an agreement with COSLA that reflects the changed economic and financial circumstances that Mr McLetchie has just talked about. We accept that there are significant challenges in the current financial climate. On the funding that local authorities were promised in the spending review, I have had to reduce local authorities’ expectations of what they may receive, because I have fewer resources at my disposal as a consequence of the restatement of the budget position for 2010-11. We have had a realistic discussion with COSLA about what can be achieved in that context. As a consequence, the Cabinet Secretary for Education and Lifelong Learning is working to secure agreement with local authorities on the contribution that they can make to reducing class sizes.

10:15

John Swinney

I was struck by the comments of Caroline Gardner, the deputy auditor general, who in oral evidence to the Education, Lifelong Learning and Culture Committee said:

“The system under which the Government agrees single outcome agreements with each of the 32 community planning partnerships is, however, now developing well. Year on year, reports are being issued on what has been achieved, with supporting indicators to show progress that has been made in the activities that people undertake in order to achieve outcomes.”—[Official Report, Education, Lifelong Learning and Culture Committee, 3 February 2010; c 3132-3.]

I contend that that is a positive endorsement of the approach taken by the Government and our partners. Clearly, a reporting stream has to come from the single outcome agreements, and that can be the subject of public debate in due course.

The Convener

In your opening remarks, you said that single outcome agreements will produce better outcomes and better accountability and will respond to local priorities and reduce bureaucracy. However, the Accounts Commission report includes a whole page of concern and criticism. Further to David McLetchie’s questions about targets, I point out that paragraph 60 of the report highlights

“the need for good performance management ... Work is still needed to focus SOAs on a manageable and meaningful number of high-level outcomes”.

Surely that point about high-level outcomes should be of concern to the Scottish Government, given its role in those. A whole page of the report is given to making a number of criticisms about bureaucracy, outcomes, high-level indicators and the need for clearer links to priorities. However, you seem to suggest that those issues are not for the Scottish Government but are for local authorities and community planning partnerships.

John Swinney

Convener, you and I could probably sit here all morning trading paragraphs of Audit Scotland’s report for the Accounts Commission, “An overview of local government in Scotland 2009”. Another paragraph on the same page states:

“Partnership Single Outcome Agreements (SOAs) introduced in 2009 have provided councils and their partners with an opportunity to plan and manage the delivery of local outcomes in an integrated and more effective way.”

That is great news.

There will never be an audit report that does not criticise performance, but the key point is that our management structures at national level—which include Audit Scotland, as it is part of our management group that is looking at the whole approach to single outcome agreements—discuss such reports with local authorities to resolve those questions. My point is that those who are involved in community planning partnerships and in the formulation of single outcome agreements can reflect on all that material and adjust their practice and performance accordingly.

The Convener

On working with partners, the report says:

“a key challenge for councils is to support their delivery ... There is also a need for clearer links between SOA priorities and partners’ individual service plans and budgets.”

While we are encouraging all the partners to come together, there is no alignment in their budgets.

The Convener

We could probably trade paragraphs. There is a full-page critique of the failings. It is disappointing to hear that you have not taken on board what is said about those.

John Swinney

When, in 2007, the Government set out the approach that it intended to take and the way of working that it intended to adopt, there was a certain amount of scepticism that we would be able to secure agreement around single outcome agreements, certainly within the timescale that I specified, whereby they were to be in force by April 2008. The concept of moving towards an outcome-based approach has been talked about in Scottish public services for many years.

We secured agreement on the single outcome agreements by April 2008, and that agreement has been reinforced by the work that CPPs have done on the formulation of SOAs in 2009-10, which has had a real and robust character to it. All local authorities and CPPs are fully involved and participating in that process.

In terms of there being differential performance around the country, quite clearly some community planning partnerships were at different levels of activity in 2008. In 2008, we required all local authorities to produce a single outcome agreement. If my memory serves me right, around 15 of the 32 authorities produced plans that were based on CPP activities in year one, which was more than we asked for and a very good achievement. We had asked each authority to produce a single outcome agreement by April 2008, and in 15 cases the SOA was based on the CPP, which was very welcome—I applaud that achievement. By 2009, all CPPs had submitted single outcome agreements.

It could be said that there was a difference in performance between 2008-09 and 2009-10. However, we are there now for all CPPs, and we obviously have an approach that allows us to move forward on that basis.

John Swinney

I think that there has been an attitudinal change. We have created, or encouraged the creation of, a much more significant level of co-operation between public sector partners at the local level. To go back to my answer to Mr Tolson, if we consider significant issues and social changes such as the tackling of poverty or health inequalities, we all accept that no one public service organisation will be able to achieve those priorities. The imperative is therefore about maximising co-operation across different public sector organisations. That has perhaps been the most significant change in emphasis and attitude, because there is now a much greater willingness among local authorities and other public sector partners to focus on what they can achieve together rather than on what drives service design from their own organisational perspective. That has been a helpful development in the perspective of different public sector bodies, but it has had an implicit impact on the attitudes of local authorities.

John Swinney

As I said earlier, the report forms part of the discussion involving the groups that meet to monitor the approach to community planning partnerships. Audit Scotland is a partner with us in the process of developing the approach to single outcome agreements. In developing an agenda of radical change there will be areas where we need to concentrate on making improvements, and the Government will ensure that that is addressed in our discussions.

Mary Mulligan (Linlithgow) (Lab)

Good morning. First, I have a supplementary question about reporting back, which colleagues have asked about. The SOA for Dundee City Council states:

“There will be, we expect, a similar annual report produced jointly between the Scottish Government and COSLA”.

Does the Government intend to fulfil that expectation?

Mary Mulligan

My next question is about the fairer Scotland fund. Ten single outcome agreements do not contain a statement on how fairer Scotland fund moneys will be used. A Scottish centre for regeneration report reveals concerns at the local level about the removal of ring fencing from those moneys in March this year. Is the cabinet secretary aware of those concerns, and how will he reassure the people who have them?

John Swinney

That monitoring already takes place as part of the reporting on single outcome agreement performance. That will give us the necessary information.

John Swinney

The mechanism for all that is contained in different elements of the current arrangements. Local authorities will go through the best-value process, which assesses the effectiveness and value for money of their service provision, and will, with their community planning partners, report on the achievement of outcomes. I remind the committee that single outcome agreements are now formulated as an expression of the direction and approach taken not just by local authorities but by all community planning partners and that, as a result, they bring in a wider dimension.

As for learning lessons from other authorities, the Improvement Service, which is part of the local government community, is very active in sharing best practice between authorities and in encouraging them to learn lessons and improve service provision without perpetually having to reinvent the wheel. As I say, a number of different mechanisms are already in place, but I have not contemplated ranking local authorities according to their performance on national outcomes. Indeed, in that respect, I caution the committee against thinking that we can somehow neatly deconstruct the national indicators or outcomes, set out, say, Glasgow’s proportion for each and conclude whether or not it has delivered against those. That kind of thing is impossible to calculate and, given that we know that it is impossible, we should not try to do it. Nevertheless, mechanisms in the policy framework allow lessons from individual local authorities to be learned and we will ensure that that happens.



Bob Doris

Let me look at it another way. National outcome 6 is:

“We live longer, healthier lives.”

If we do not rank local authorities, can the Improvement Service or whoever pick out five local authorities that the Scottish Government or the Improvement Service feel have, with their CPP partners, performed particularly well on that outcome? We would not chastise the other 27 authorities, but say that five CPPs have hit the nail on the head and are progressing national outcome 6 at the local level. If we can get five glowing examples of good practice in that area, other community planning partnerships could follow suit. Is the Improvement Service or the Government doing that? Which body would do that?

The Convener

I will raise a fundamental point, following on from our earlier discussion about local people’s lack of awareness of what single outcome agreements deliver for them. There is also the notion of all partners being publicly accountable—but not politically accountable—for the money that they spend and bring to the table. I understand from the guidelines for CPPs that that point was acknowledged and that a key development step was highlighted in the guidelines that would create an effective mechanism for joint accountability for SOAs, which could transfer to shared services arrangements.

What work has been done to address the problem of the council being the only elected partner in the partnerships? We are concerned that the new ways of working mean that there is a growing democratic deficit with regard to the delivery of services, which raises questions about political accountability for the expenditure of public money on services. What thinking has been done on that?

11:00

John Swinney

I cannot give you a time in hours and minutes, but they are an active topic of discussion in my meetings and in those that my officials hold. Governance issues are given significant consideration when it comes to shared services, which is an area of activity that involves a range of players in the Government, local authorities, public authorities and non-departmental public bodies.

The Convener

When will we be able to make those discussions more open to the people whom they affect, to the committee and to others who might be interested? When can we expect some open discussion of what I have described as a democratic deficit? When will we be able to find out about some of the work to create effective mechanisms for joint accountability?

The Convener

I understand that that is the case in relation to new bodies in the future, but I am thinking more about the guidance that is already in place for community planning partnerships and how the guidance for single outcome agreements can

“create effective mechanisms for joint accountability for SOA commitments”.

I presume from your answer that we have not made much progress on that—or have we?

John Swinney

I am grateful for the get-out clause that Patricia Ferguson helpfully offered. Without being flippant in any way, I would say that the asks fall into two categories: those that can be delivered and those that cannot. As Patricia Ferguson will be aware, there are directors in the Scottish Government who are responsible for liaison with the community planning partnership. They have been the communication channel between the Government and community planning partnerships in trying to address some of those questions. Some of the asks are relatively straightforward to deliver, and a number of them will have been addressed. Others are more challenging, and some would require additional resources. I am in regular discussion with local authorities—collectively and individually—about their financial circumstances. As Patricia Ferguson will appreciate, satisfying those financial demands is never easy for me to do. However, we endeavour to address as many of those asks as possible.

John Swinney

The directors who interact with community planning partnerships meet collectively in the Government. They formulate an assessment for me of the various propositions that are received. Whether it is one partnership or a number of them that are asking for those things, open consideration is given to their questions. Where resources are involved, difficult challenges must be addressed. If procedural or operational issues are raised, or changes to policy streams are suggested that we could pursue in a relatively straightforward fashion, I give open consideration to them.



John Wilson (Central Scotland) (SNP)

A number of my questions have already been asked. To return to community planning partnerships, how many of them are there and, following on from Patricia Ferguson’s question, how many directors in the Scottish Government oversee them.

John Wilson

There was talk that, instead of having each of the partnerships operate local authority-wide, some of the larger local authorities wanted to split them up to ensure that they concentrated on specific geographical areas. Given your response, however, I assume that each of the partnerships has been established around a local authority area. Is that the case?

John Wilson

I have a background in working with—some of your officials may have worked with—the new life for urban Scotland programme, which was established in four areas in 1988 under a previous Administration. You talked about community involvement and community partnership, but the reality for many communities—I am talking about the community not as in statutory bodies but as in people and residents in those areas—is that their expectations may not be met with regard to their engagement with and influence over what is delivered locally because, although the documentation refers to political accountability, for many people that political accountability currently comes only once every five years when local government elections are held.

People do not really have political accountability over some statutory agencies, unless they take issues to the national level. As you said, a number of the statutory agencies are directed by the Scottish Government rather than at local level, so it is about trying to square the circle in relation to how communities actively engage in the decision-making process that directly affects them. I fully recognise the role of the local elected member in the process, but an expectation has been built up among a number of groups that they would have more influence in setting the priorities for communities through the single outcome agreements than they would through relying on statutory agencies to sit round a table and agree their priorities.

John Swinney

Mr Wilson raises a significant issue. I want to give the clearest signal that ensuring that the public’s view and the public’s attitude and aspirations are incorporated into the thinking and decision making of the community is very important.

In its October 2009 report “An overview of the audits of Best Value and Community Planning 2004–09”, the Accounts Commission said:

“BV audits consistently found that there was a lot of consultation and involvement activity taking place with a variety of communities and interest groups.”

That has been acknowledged within the best-value assessment. However, I certainly want to make it clear that I attach significant importance to ensuring that community input is considered by the relevant bodies.

The Convener

I am sorry to mention “An overview of local government in Scotland 2009” again, but that report refers to the same issue.

That concludes our questions to the cabinet secretary and his officials. I thank them for their attendance this morning. We will pause for a change of cast, but the cabinet secretary will remain with us for the next item.

11:21 Meeting suspended.

11:21 On resuming—