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Chamber and committees

Finance Committee, 11 Nov 2003

Meeting date: Tuesday, November 11, 2003


Contents


Criminal Procedure (Amendment) (Scotland) Bill: Financial Memorandum

The Convener:

Agenda item 2 is further consideration of the financial memorandum for the Criminal Procedure (Amendment) (Scotland) Bill. I welcome to the committee Wilma Dickson, who is head of the Scottish Executive Justice Department's criminal procedure division, Tom Fyffe, who is a bill team member, and Sharon Grant, who is from the community justice services division.

Committee members have before them a copy of the submission that we have received from the Law Society of Scotland. I remind the committee that, as with the Nature Conservation (Scotland) Bill, I will ask what key issues members wish to be incorporated into the committee's report.

Do the witnesses wish to make a brief opening statement or do they want to move straight to questions?

Wilma Dickson (Scottish Executive Justice Department):

We want to move straight to questions because you identified some of the things that you wanted to talk about last week.

I am a bit deaf, and, although I should be okay because of all the microphones, it is helpful if people look at me when they talk to me, because I have to lip-read a bit.

We will do our best.

Dr Murray:

I will kick off on value for money. I was a bit perturbed to hear from last week's witnesses that sums of money are being set aside as retainers for solicitors to make themselves available. Did the Executive consider undertaking value-for-money studies with organisations such as the Scottish Court Service, the Scottish Legal Aid Board and the Crown Office and Procurator Fiscal Service prior to considering the policy proposals?

Wilma Dickson:

SLAB is suggesting that it might be worth making a payment to ensure that a counsel does not engage himself in business that might overrun. Waste of court time, which might happen if a counsel has double-booked through no fault of his own because a previous engagement has overrun, is a waste of judges', prosecutors', witnesses' and jurors' time, as well as a cause of huge inconvenience to witnesses and victims. It is fair to say that no final decisions have been taken on the form of the legal aid payment, but such a payment might be a small price to pay to ensure that trials start on time. It is important to say that the details of the form in which such payments would appear in regulations have still to be worked out but, on a risk assessment basis, it might well be better to invest to save further down the line.

Is it fair to say that one of the issues on best value that came up last week was consideration of the criminal justice system as a whole and the extent to which we should attempt to look across the system and see whether best value is being delivered by the system working together?

Yes.

Wilma Dickson:

It might be worth flagging up to the committee the fact that the first meeting of a criminal justice system board that will bring together the stakeholders will be held on 1 December. The purpose of the board will be to examine management information across the system, to identify the blockages and the problems and to find ways forward. Although that is primarily about efficiencies in the system, not about saving money, it is a first attempt at addressing value for money.

I reiterate the points that witnesses at last week's meeting made. It is difficult to consider the criminal justice system as a system, because of the necessary constitutional independence of a number of the main players. No one can tell the Lord Advocate whom to prosecute and no one can tell a judge what to do in a case, nor should they be able to. When we bring stakeholders together, it is about taking a consensual approach to considering whether we have a common diagnosis of where the problems are and what we are going to do to fix them.

In a sense, it might turn out that some of the costs that are identified as being associated with the bill are costs that will be incurred in modernising the system.

Wilma Dickson:

Yes. One of the difficulties is that the bill is the core of a wider modernisation programme. The issue of what is in the bill, what is out of it and what is on its margins was discussed last week. I repeat what last week's witnesses said, which is that, to make the reforms in the bill fully effective, it is necessary to make some of the changes that are in the white paper, "Modernising Justice in Scotland: The Reform of the High Court of Justiciary", but not in the bill, such as those on disclosure. The committee might want to discuss that.

The Convener:

One of the issues that came up in evidence last week was that, although organisations involved in the administration of the criminal justice system could each exercise some management control over their budgets in their own areas, they do not make the key decisions that affect costs. I am well aware of the constitutional issues, but could not the Administration have gone further in seeking to find a framework that encourages the people who make the key decisions—who are primarily judges—to work within a financial framework that would allow more control to be exercised than is the case in the present system? The impression that last week's witnesses gave us was that they have very little control over the costs of the system. The present financial management system does not seem to be a good one.

Wilma Dickson:

The Executive acknowledges that we need a cultural change to a more managerial approach. The white paper underlined the fact that the court and all the lawyers before it need to see themselves as being individually responsible for the efficient administration of justice, so that is recognised.

There are some difficulties when we get down to the nitty-gritty of particular cases. For example, one could not reasonably say that the defence does not need an expert witness because it has already had lots of money. When it comes to dealing with particular cases, there is an overriding priority of fairness for the accused, so I am sure that the committee appreciates that matters are not entirely straightforward.

That said, it is not the case that the Executive can do nothing about cultural change. I will give a few examples. In parallel with the bill, a number of strands of implementation are being worked up. One of those strands is getting the legal aid proposals into detailed regulations. It is obvious that providing the right balance of incentives and sanctions for early preparation of cases is critical, so there is an influence at that point. On legal aid, there are other on-going discussions about a more sophisticated graduated fee scheme for counsel and on payment for solemn legal aid. Many parallel discussions are going on about how we make legal aid deliver better. The committee will be aware that the minister has just announced an overall strategic review of legal aid. From that point of view, it is possible to build in some managerial incentives.

Although, constitutionally, we cannot give guidance to judges, we are talking to the Judicial Studies Committee, which is responsible for the training of judges, about the kind of training that will be required to deliver the change of culture that the bill envisages. We have already met the committee and we will meet it again shortly. The process is judicially led and it is for the Judicial Studies Committee to determine the form of the training.

The Convener:

The parallel with the medical profession occurs to me. Although no one would tell a doctor how to treat their patients, over the past 10 years, the national health service has done considerable work to establish a system in which doctors take some responsibility for management of budgets within their area, as well as for the professional decisions that they take. When I read the financial memorandum to the bill and Lord Bonomy's report, I was struck by the refusal to engage with that issue. The Finance Committee finds that very disappointing. Although we would not want the Executive to ask the judiciary to set aside its constitutional independence or constitutional role, we would want it to say to judges that the decisions that they make must bear some relation to budgets in the same way that everyone else's must do. It is very disappointing that the bill does not seem to address that issue.

Wilma Dickson:

As far as the parallel with the medical profession is concerned, a consultant's independence is contractual—there is not the same overriding constitutional issue as there is with the judiciary. I am quite familiar with that area, because I used to deal with such matters when I chaired the general practitioner pay negotiations in my last job.

The Convener:

Although I might be ignorant of legal issues and legal etiquette, I do not accept that the constitutional role of judges necessarily means that they should not be subject to controls over the expenditure of public money. We are responsible for properly safeguarding the expenditure of public money and for ensuring that that money is spent in a value-for-money way. It can be argued that that is of equal importance to any constitutional role that the judges might point to. I suggest that the idea that a system can continue to operate without elementary financial controls is not an acceptable proposition and needs to be taken back to ministers.

Wilma Dickson:

I am happy to do that.

I accept what you said about cultural change. What plans do you have to ensure that the Scottish Court Service, the Crown Office and SLAB work more closely together to eliminate or minimise cost and delay?

Wilma Dickson:

Are you talking about the High Court in particular?

Yes.

Wilma Dickson:

The process of implementing the bill involves the members of the multi-agency group who worked together on the bill's preparation working together on its implementation. A number of work streams are under way—for example, on legal aid and on evaluation and monitoring. One of the critical aspects of that is the development of a good baseline of information, which means that, once changes are introduced, they can be measured. Would the committee be interested to hear how we are going to do that?

Yes.

Wilma Dickson:

We have a group that involves the Scottish Court Service, the Crown and our researchers, which is establishing what the key variables are. Some of them are obvious—the number of adjournments and extensions and the occasions on which people plead guilty are critical to measuring the efficiency of the system. The idea is that we should agree on those variables and build them into people's electronic management systems for 2004-05—the year before implementation—so that we will have a good, robust, recent baseline against which to measure change once we get to implementation. That is the kind of thing that the committee will wish to consider.

There is also a wider issue about the whole system working together, which is partly addressed by getting people to come together at national and local levels to consider what they can do to solve the problems. That is essentially what we are doing through national and local boards.

Jim Mather:

Going beyond getting people together to discover where costs in terms of delays and money are incurred, what plans do you have to ensure a proper level of benchmarking, external audit and rejustification of the total resources that are employed?

Wilma Dickson:

That goes a wee bit beyond the bill team's remit. We are now addressing system blockages, and that will have economic benefits, although the implementation that we are carrying out is not directly focused on saving money. It is beyond my remit to say what I think the Executive should do in the way of benchmarking and external audit. Audit Scotland recently produced a report on youth justice and the matter of time intervals is now being addressed, although it is for the audit folk themselves to decide what their priorities are.

Jim Mather:

I wonder whether there is a serious omission there. In any other sphere of activity, particularly commercial activity, there would be an expectation that any change that was being mooted, with money being put in, would sweat out additional savings.

Wilma Dickson:

The witnesses who appeared before the committee last week pointed out that the High Court does not operate in a static context. There is an expectation that the number of the kind of cases with which the High Court now deals will continue to rise. Among the relevant factors in the system are the minimum five-year sentence for firearms offences and the increase in the capacity of the Scottish Drug Enforcement Agency, which will increase business. When Lord Bonomy considered why the number of High Court indictments had risen so much and to what that was attributable, two thirds of the reason was to do with an increase in the number of serious drugs cases.

There are many factors in the system that will increase the demand on the High Court. We are not saying that the proposals will mean lower costs at the end of the day. It is very difficult to isolate certain factors from all the other pressures on the High Court. High Court judges also do civil business and, as the committee might be aware, there is also huge pressure on the civil side. Furthermore, there is huge pressure on criminal appeals.

We are not saying that the changes will save money—it would be unrealistic to say that it will cost less to run the High Court in two years' time. We are saying that we will have a more efficient system, which should liberate resources to deal with some of the other pressure points. It is more about putting a lid on further increases; given the other factors involved, it would be idle to pretend that the court will cost less to run. The area covered by the bill is in fact relatively small in relation to all those factors.

Are the measurements in place to identify those efficiencies and ensure that they are made?

Wilma Dickson:

The evaluation monitoring framework will cover that. Efficiencies in legal aid cases are fairly straightforward. As far as efficiencies elsewhere are concerned, we would measure reductions in the number of adjournments and extensions. Those are a proxy for finance; they are not in themselves a matter of finance, although it is possible to assess how much the costs for them are. In effect, the efficiencies would be measured, but that is a proxy for financial management.

One of the bill's provisions concerns the remote monitoring of individuals. Will there be any additional costs to the police in apprehending those remotely monitored individuals who breach their bail conditions?

Sharon Grant (Scottish Executive Justice Department):

The increased costs to the police will be marginal. If someone was released on bail and breached their conditions, the police would have to apprehend them. Electronic monitoring makes it more visible that the person has breached bail, and the police should be able to respond more speedily and apprehend the offender for breach of the condition.

You appeared a little uncertain in saying that. Are you saying that the remote monitoring provision will broadly be cost neutral, or are you saying that the speed with which the police will be able to react—

Sharon Grant:

The speed of response will, of course, be entirely down to the police, taking into account their operational priorities. At the moment, the police might not be aware of someone breaching a bail condition right away and it might take some time to apprehend the offender. Under the new measures, the electronic monitoring company will be able to notify the police of a breach quite quickly. The police will then be able to take a decision on when it is appropriate to apprehend the offender.

What about the costs associated with undertaking assessments for the purpose of movement restrictions?

Sharon Grant:

Undertaking assessments is a matter for local authorities. We estimate that the cost for 100 orders during the pilot period would be about £12,500 across all the local authorities, which works out at roughly £125 per assessment.

The Convener:

The bill provides for preliminary hearings. At the end of our evidence-taking session last week, the witnesses seemed to recognise that a hearing as such might not be required in all cases, although the bill provides formally for that. Instead of having to take up expensive court time, with judges and everybody else in place, it might be possible to get the business done through a managed meeting, or possibly through another mechanism that might not involve a meeting of any kind. That will not apply in all cases—indeed, it might apply to only a minority of cases—but that could potentially lead to significant cost savings. Was that given consideration?

Wilma Dickson:

There are two answers to that, a policy one and a practical one. The key purpose of the bill is to deliver justice better in the most serious cases. The judicial management of cases is critical to the bill's aims. That picks up the points that have been made about a culture change. Critically, the court, rather than the Crown, will set the trial date. At the moment, the Crown decides when a case comes to court. To avoid wasting its time, in future the court will do so, on the basis of the full evidence, showing where the parties are at.

There is provision in the bill for the court to dispense with the preliminary hearing if both parties lodge a written submission saying that they do not require it. I think that you are suggesting that the burden of proof could be turned round, in that it should be for the court to demand the preliminary hearing, rather than for the parties to ask for a dispensation. The difficulty with that is that the court will not have papers on all the cases that are under way unless it is going to do something about them. Therefore, in order for such arrangements to be made, the court would need to obtain a full written statement from the parties. That is not provided routinely.

On balance, our view is that the preliminary hearing should be the norm, but there should be every scope for the flexibility of dispensing with it. That is partly because judicial management is critical and partly because it would be quite difficult to do things the other way round. The court would have to be given a lot of information about the case to make a decision on whether to proceed with the hearing. It would not have such information to hand routinely. Also, the court might want to ask questions about the case.

I will stop you at that point, Wilma. We indicated earlier that, as a mark of respect for remembrance day, we would hold two minutes' silence at 11 o'clock. That time has arrived, so I ask everybody to stand.

The Convener:

I am sorry to have interrupted you.

I will expand the point slightly. In the civil courts where judicial management was pioneered and has been in operation for some time, mechanisms exist to allow judges to determine issues such as time scales for trials and various other arrangements without necessarily going through the process of the formal hearing. Are we putting in place a mechanism for serious criminal cases that creates an expensive default when a provision could be framed differently to allow more flexibility than the present format of the legislation permits or encourages?

Wilma Dickson:

I understand the point. There is clear provision in the bill for the court to dispense with the preliminary hearing without any need to hear the parties.

How the bill is drafted makes that situation seem exceptional. If the bill were drafted differently, dispensation of the hearing could operate as a more appropriate choice.

Wilma Dickson:

The critical point is that the bill is drafted in such a way that both parties have to agree to dispense with the hearing. In relation to other matters, one party could say, "I would like to bring this forward or back". The philosophy behind the bill is that judicial management is important—although you might not agree—and all the evidence is that if we invest early on in the process, not only will we save money later on, we will save a great deal of anguish for witnesses and victims in particular.

One of the other questions that came up last week was, why introduce another layer into the process? The answer to that is that nature abhors a vacuum. At the moment, in a large number of cases the trial becomes a procedural hearing because a procedural hearing is necessary; there is nowhere to clear the ground. In a large proportion of cases, everyone is assembled so the trial turns into an expensive and disruptive procedural hearing.

I realise that you will come back to me on the point and I am wrestling with how we can turn it round, given that the court does not sit with papers in front of it for all its pending cases. One would have to give the court a full explanation of why a hearing was not required.

Tom Fyffe (Scottish Executive Justice Department):

You are trying to tie up criminal procedures with civil procedures. However, in civil cases, and in commercial cases in particular, each side would already have put its arguments before the judge before that judge could make a judgment on it. Likewise, notwithstanding that a managed meeting would not be completely necessary and that matters could be dealt with through discussions, the court would have to be satisfied with the written submissions that the preliminary hearing was not necessary.

We must factor in that one of the important things about the preliminary hearing is that it gives the accused the opportunity to plead guilty. They will not have that opportunity to plead guilty if only written submissions are used. We hope that, with the use of preliminary hearings, pleas of guilty will be tendered to reduce the number of trial diets that are fixed.

The Convener:

I am not a judicial expert, but as somebody who has looked at a number of processes, I think that it seems possible to give the accused opportunities to plead guilty before they get to court. It has been a tradition that that is done in a court setting, but that is not absolutely necessary. Has there been a root-and-branch thinking through of the procedures or are we faced with an adaptation to take account of the requirement for a procedural hearing without thinking about one or two more radical solutions that would avoid the need for court time to be used for that purpose? You seem to admit the possibility that in some cases a preliminary hearing might not be necessary. I am pushing you a wee bit further to ask whether we can look beyond this and see whether there might be more cases where such hearings might not be necessary. The cost savings might be considerable.

Wilma Dickson:

We recognise fully that in any case where the defence and the prosecution are prepared and ready to go for trial, there should be no need for a procedural hearing because they will be able to satisfy the judge by written submission that that is the case. I stress again that one of the critical factors in making the process work is giving the court the power to set the trial date and ensuring that the court is fully informed about what stage the cases are at before it does that. If that is not done, the process will not work.

It is also true to say that the bill is slightly more flexible than what Lord Bonomy recommended. He recommended a formal, face-to-face managed meeting before every preliminary hearing. We have made matters more flexible so that the discussion can take place in any way between prosecution and defence as long as there is a clear statement of their position as they come out of it.

To return to your suggestion, I am still wrestling with the fact that, in order to give the court a role at all—against which I do not think that you are arguing—one would need to give the court a substantial amount of information. In a civil case, the court would have that information as routine because that is part of how it works. I am not sure that one would save all that much, given that one would have to give the court all the information and that the court might then have questions to ask. I am not sure how much one would save by shifting the onus of proof because one would still need to invest a lot of effort in giving the information to the court so that it could take a view.

John Swinburne (Central Scotland) (SSCUP):

Do you agree that, from the public's point of view, the big disappointment in the bill is the fact that nothing has been stated about how efficiencies, cost savings and reductions can be made in the huge part of the budget that goes to the legal profession? The public do not feel that they are getting true value for the money that goes into the judiciary generally. Do you agree that there should be a department or someone responsible for driving down costs in your areas?

Wilma Dickson:

One of the key concerns relates to legal aid and the payment of lawyers for appearances in the courts. Because lawyers are individual practitioners and are not managed by the Crown Office in the way that, say, procurators fiscal are, the mechanism for quality improvement and cost savings is at the point of contact between the public and private sector parts of the legal system, which is the fee that is paid and the terms by which it is paid.

The minister has just announced that there will be a strategic review of legal aid to examine how the Scottish Legal Aid Board and the other players operate and what can be done to improve efficiency and effectiveness, particularly in criminal cases. I am not certain that this is a matter for the bill, which focuses on a relatively narrow area relating to the most serious crimes. Only around 1 per cent of cases are tried in the High Court, although, of course, they account for a much higher proportion of the legal aid spend than that.

In the legal aid field, there are a number of mechanisms, particularly the strategic review, that are addressing the issue that you are particularly concerned about. I am not quite sure what more I can say about the expenses of the judiciary.

The Convener:

That is probably an issue for ministers in a different setting.

If there are no further questions, I thank our witnesses for attending.

Members may take this opportunity to identify issues that they would like to be incorporated in the committee's report. I have highlighted one such issue, that of fundamental management controls over budgets in the court system.

We should perhaps flag up to the Justice 2 Committee the issue of whether the procedural issues go sufficiently far to realise the best economies. That is a specialist committee and is perhaps in a better position to make such judgments. I think that the proposals that are being brought forward for the streamlining of the court procedures should face some sort of best-value test. If that is not going to be imposed by the judges, it should be imposed by the Parliament. We should ask the Justice 2 Committee to consider that with some rigour.

Mr Brocklebank:

The public feel quite serious disquiet when they see published the sums of legal aid money that are paid to particular Queen's counsel. Without going too deeply into the matter, I note that one MSP earns three times his parliamentary salary from legal aid, never mind what he gets from his private clients. The public are, rightly, extremely concerned about the vast sums of money that go to QCs, no matter how eminent they are. I do not know whether our committee has a role in dealing with that or drawing it to someone's attention.

The Convener:

There was a suggestion that there would be a strategic review of legal aid. I presume that the relevant committee will deal with that. We have some purchase in relation to court procedures and the number of times that QCs come before the courts. We might like to explore whether there is a way in which we can control that more effectively.