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Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
That might be a line of inquiry that we will pursue elsewhere. Thank you. I now invite Craig Hoy to ask a series of questions.
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
We have heard this morning about how people have applied to court to get settlements in disputes about payments, we have heard about mediation mechanisms being considered and then abandoned, and we are looking at a new environment in which there is a cost-plus arrangement. If you read the evidence that Jim McColl submitted to the committee, you find that a lot of it is saying that we are looking at the situation through the wrong end of the telescope, that unfair demands were placed on Ferguson Marine, and that that is why the costs and delays ended up where they did. That is all because of CMAL, which is now the technical consultant in an environment in which there is a cost-plus arrangement. In looking out for the public’s money, how do we know that that is not a blank cheque for CMAL to get the highest specification and technical corrections that will cost an inordinate amount of money on which there is no limit?
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
Our first evidence-taking session this morning is on Audit Scotland’s report “The 2020/21 audit of NHS Highland”. First of all, I welcome to the meeting Rhoda Grant, who is joining us online for this and the next item. I also welcome, via videolink, our three witnesses from NHS Highland. They are Pamela Dudek, who is its chief executive; Boyd Robertson, who is the chair of the board; and David Garden, who is its director of finance.
I remind everyone, including committee members, that we are very tight for time this morning, so I would appreciate short questions and short but incisive answers. To begin, I invite Pamela Dudek to make an opening statement.
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
With all the savings and cost improvement programmes, there is the question of what effect that work is having on the level of patient care and the services that you deliver. Is there an adverse effect in order to achieve the challenging targets that you mentioned?
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
Good morning and welcome to the 13th meeting—I hope that that is not an ominous sign—in 2022 of the Public Audit Committee.
Agenda item 1 is a decision on taking business in private. Do members agree to take items 4, 5 and 6 in private?
Members indicated agreement.
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
Thank you for that opening statement, Mr Robertson. It sets the scene very well for the questions that we have. I intend to direct my questions to Pam Dudek as chief executive and, therefore, accountable officer, but she might in turn refer them to Mr Garden or you.
You touched on NHS Highland’s financial position, which was one of the reasons for the section 22 report being required in the first place. I think that there were three consecutive years in which the in-year financial balance was in the red. In your opening statement, you highlighted the extent to which savings are required; from my reading of the Audit Scotland report, those savings are of the order of £32.9 million.
My opening question is about the progress that has been made. Where are things now financially with NHS Highland? Do you consider the board to be on course to make the cost improvements and savings that were identified, and how have things been affected by Covid? I will come to Pam Dudek, first.
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
The next questions are from Willie Coffey. Willie, over to you.
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
Thank you very much indeed. Willie Coffey has a number of questions to put.
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
Are you saying that that critical piece of evidence does not cover in full the ministerial decision to mitigate the risk?
Public Audit Committee
Meeting date: 28 April 2022
Richard Leonard
I turn straight away to the deputy convener, Sharon Dowey.