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Chamber and committees

Finance Committee, 29 Jan 2002

Meeting date: Tuesday, January 29, 2002


Contents


Future Inquiries

The Convener:

We move to item 6 on the agenda, which is a discussion of the committee's future work. I want to highlight certain issues, although the work that we are going to do on FIAG will be a priority for us. We also have continuing work to do on our PFI/PPP inquiry.

I understand from former members of the committee that a couple of other potential inquiries were in the pipeline, one of which was an inquiry into the future of the voluntary sector. To an extent, that proposal was subject to the proviso that any such inquiry would follow on from the Social Justice Committee's inquiry into the voluntary sector. I understand that that committee's review of voluntary sector issues has not been carried out as quickly as was envisaged. That raises the question of when it might be appropriate for the Finance Committee to inquire into voluntary sector funding. How do members wish to make progress on that proposed inquiry? I am conscious that Donald Gorrie was particularly associated with that proposal; I do not know what progress we can make in his absence.

What was the logic behind the Finance Committee's considering that issue?

From memory, Donald Gorrie would have conducted the inquiry into the voluntary sector with the assistance of another member—

The other member was to have been Adam Ingram.

That is correct. The inquiry was to have been done on a reporter basis and would have been conducted in tandem with the Social Justice Committee's inquiry, rather than as a full-blown inquiry.

Mr McCabe:

The committee would need to be careful, given that an inquiry is being undertaken by the Social Justice Committee. Although we might have an interest in that work, that interest is peripheral—we should leave the inquiry to the Social Justice Committee.

Absolutely.

The Convener:

I am content if that is the committee's view.

An investigation of the Barnett formula and related issues was also mentioned. Again, previous members of the committee particularly focused on that proposal. In my view, although it might be possible for us to consider investigating that matter, we might prefer to concentrate on "Government Expenditure and Revenue in Scotland". We could develop that report as a framework for analysing the situation.

There are two other issues that we might want to investigate: lottery funding and the way in which it is utilised; and European structural funds, which the committee dealt with inconclusively. Do members think that we should explore those issues?

Mr McCabe:

I know that we are trying to move on, convener, but we should take some time to think about issues that might be a bit more relevant. Structural funds is an interesting issue, but there is a danger that we might die on our feet if we consider it again. There are other issues that we might examine. Last week, there was coverage of levels of debt, collection rates and so on.

Alasdair Morgan:

It depends on which aspect of structural funds we examine. We could consider the allocation of funds or how funds are spent when they are allocated. The mechanism for the next round of structural funds will be different, although we do not know what the differences will be. I am not clear what we would examine. We might end up considering a moving target or a situation that will not be replicated, in which case criticisms would be interesting, but academic.

Elaine Thomson:

The committee previously considered European funding; we must be careful that we do not duplicate previous work. I agree with Tom McCabe that there are a number of different areas that we might want to consider in more depth. I am sure that the Finance Committee has mentioned one or two other issues that it may or may not like to examine in future inquiries.

Perhaps the topic could be on the agenda for the next meeting, at which members could give their ideas.

Brian Adam:

One way in which Government has delivered finance in recent years is the challenge-funding approach. That applies especially to local government, but also to health. There are concerns that that approach involves an awful lot of wasted time and effort, in both Government and lottery funding. We could broaden the idea of examining lottery funding to cover the whole challenge-funding approach. We could consider whether that approach is the best way in which to allocate funds; whether a significant amount of money is wasted through the cost of the process; and whether it is an appropriate mechanism through which to deliver finance for services. We could include lottery funding, local government challenge funding or the transport fund—whatever is in that particular pocket.

The Convener:

We have a full programme of work that will occupy the vast bulk of our time until the summer. That programme includes budget issues, the PPP/PFI inquiry and work on the financial issues advisory group. We might embark on other work before the summer, but I suspect that we will not get far with it. It would be useful if the clerks spoke to members individually during the next couple of weeks and produced a paper, say within four weeks, to highlight some possibilities. We can plan our programme on that basis.

I am taken with Brian Adam's idea of examining the challenge-funding framework, which involves a number of issues. For example, challenge funding is an issue in local government and there is the matter of the balance between urban-aid funded projects and service delivery. There is also an issue about money going to those who can put in the best bids, not because of the need for what they will provide, but because of their skills in producing bids.

We know how the system works.

The Convener:

We should discuss with members the work programme and return to it when we have mapped out what members want to do. At that point, we can take a balanced view.

Before we go into private session, it is incumbent on members to thank Anne Peat for her work during the past two years. Anne is moving to the Parliament's business team. Even after the short time for which I have been a member of the committee, I recognise that losing Anne's knowledge and ability will be a considerable loss to the committee. On behalf of the committee, I wish her well in her new position and thank her very much for her contribution to the committee's work.

Meeting continued in private until 12:04.