Chamber
Plenary, 07 Jan 2010
07 Jan 2010 · S3 · Plenary
Item of business
Public Services Reform (Scotland) Bill: Stage 1
If the overexcitable Liberal Democrat members check carefully, they will find that we on this side of the chamber are busy implementing the Conservative manifesto.
The oral evidence that the Finance Committee took on part 2 was very interesting. As Mr Whitton said, a parade of organisations came forward to suggest either that they be removed from schedule 3 or that part 2 be amended or deleted. However, there was a shining exception to all that. One organisation was even more enthusiastic about these powers than the Scottish Government: the Convention of Scottish Local Authorities very much welcomed the proposals. Of course, neither COSLA nor its member organisations will be subject to those powers, and I was disappointed but not entirely surprised that the organisation showed little enthusiasm for my suggestion that schedule 3 be expanded to include local authorities and ensure that its members could benefit from the provisions that it finds so desirable. It appears that the Government, too, does not share my view.
The status of the various parliamentary commissioners and ombudsmen has already been touched on. It is important that we protect the independence of those organisations, but that is not the same as saying that no reform to them can ever be considered. The current arrangements for parliamentary commissioners and ombudsmen arose in a piecemeal fashion, as the Finance Committee of the second parliamentary session recognised. Reform should not be ruled out. The key point is that it is properly for Parliament and not the Government to drive that aspect of the reform agenda.
The independence of the organisation or group being scrutinised is an important principle that we need to retain, and be seen to retain, but that operational independence cannot and should not mean that we absolve ourselves of responsibility for considering the appropriateness of the current arrangements. Independence is not the same as a lack of accountability and, ultimately, as a democratically elected Parliament, we should not shy away from asking questions of organisations merely because we have designed into their operation a degree of separation from Parliament or Government.
Related issues arise on the audit bodies, and the Government's proposals for the role of the SPCB will need careful thought. In particular, the SPCB is audited by Audit Scotland, and that might give additional complexity to the question whether the SPCB should have a role in the initiation of the powers in part 2. As members are aware, along with four other MSPs, I am a member of the Scottish Commission for Public Audit, although I do not intend to speak on behalf of that organisation today. Later in the debate we might hear about some of the more technical points. That is a distinct issue, although it is related to the points about the parliamentary commissioners and ombudsmen.
The broader point is about the ambition of the bill. It was heartening that all members of the committee agreed that it does not go far enough. When the Finance Committee first took evidence on the bill, we were told:
"the bill is not primarily a cost-saving exercise".—[Official Report, Finance Committee, 1 September 2009; c 1394.]
The question should be, "Why not?" Everyone is aware of the scale of the financial challenge that will confront the Scottish Government during the next few years. Reforming public services will be the only way to protect them, and to deliver more, or the same, with less resource. So the ambition of the bill, or perhaps the lack of it, represents the missed opportunity that Parliament and Government can and should address at later stages.
We have heard today, and it was also mentioned in the cabinet secretary's letter to the convener of the Finance Committee, that the bill will generate recurrent savings of £40 million by 2013. That is a fraction more than 1 per cent of the likely reduction in the Scottish budget that has been forecast by independent commentators. So when the cabinet secretary says that we must go further and faster, he is right—we need to go very much further. As it currently stands, the efficiency and reform programme is helpful, but it barely scratches the surface of what is required to tackle the spending reduction that will be required to pay off the United Kingdom's national debt. If the bill were any more timid, it would be a minister in Gordon Brown's Cabinet. It is time that the Scottish Government moved up a gear to instigate wider-ranging public sector reform.
Members will have seen the Scottish Council for Voluntary Organisations submission. The SCVO was right to say that public sector spending cuts change the bill's context. The bill would be more effective at achieving public service reform if, for example, it encouraged greater use of the voluntary sector in the delivery and design of public service. Public sector reform could mean greater diversity in the provision and design of public services across the country to allow innovation in service design and greater personalisation of services to users. The opportunity to move to a more flexible provision of services and away from a one-size-fits-all approach could benefit service users. The Government does not have to be the provider of all services, even if it is the funder or the enabler. Indeed, the Government should probably be the provider only if there are no better alternatives. The Government needs to tackle the broader part of the public services reform agenda.
As we have seen, at the core of part 1 is a variety of fairly modest reductions in the number of existing bodies. The target of a reduction of 25 per cent in the number of quangos is aimed more at getting headlines than achieving results, because it does not mean the same reduction in the budgets or head counts of non-departmental public bodies. A reduction in the reach of NDPBs is not much in evidence in the bill.
Creative Scotland has not been mentioned much so far, although it is broadly welcomed by members. My colleagues will talk about it later today, but it is difficult to avoid the conclusion that creative Scotland is in the bill simply because it is an available legislative opportunity. When the Creative Scotland Bill fell in 2008, it was only because some Opposition members did not understand that a bill cannot carry on if we vote for the general principles but against the financial resolution. It would be unfortunate if the Public Services Reform (Scotland) Bill meant that creative Scotland ended up in the long grass once again.
We support the general principles of the bill because we support public service reform. We will use stages 2 and 3 of the bill process to improve the bill and to encourage the Government to increase the pace of public service reform.
The oral evidence that the Finance Committee took on part 2 was very interesting. As Mr Whitton said, a parade of organisations came forward to suggest either that they be removed from schedule 3 or that part 2 be amended or deleted. However, there was a shining exception to all that. One organisation was even more enthusiastic about these powers than the Scottish Government: the Convention of Scottish Local Authorities very much welcomed the proposals. Of course, neither COSLA nor its member organisations will be subject to those powers, and I was disappointed but not entirely surprised that the organisation showed little enthusiasm for my suggestion that schedule 3 be expanded to include local authorities and ensure that its members could benefit from the provisions that it finds so desirable. It appears that the Government, too, does not share my view.
The status of the various parliamentary commissioners and ombudsmen has already been touched on. It is important that we protect the independence of those organisations, but that is not the same as saying that no reform to them can ever be considered. The current arrangements for parliamentary commissioners and ombudsmen arose in a piecemeal fashion, as the Finance Committee of the second parliamentary session recognised. Reform should not be ruled out. The key point is that it is properly for Parliament and not the Government to drive that aspect of the reform agenda.
The independence of the organisation or group being scrutinised is an important principle that we need to retain, and be seen to retain, but that operational independence cannot and should not mean that we absolve ourselves of responsibility for considering the appropriateness of the current arrangements. Independence is not the same as a lack of accountability and, ultimately, as a democratically elected Parliament, we should not shy away from asking questions of organisations merely because we have designed into their operation a degree of separation from Parliament or Government.
Related issues arise on the audit bodies, and the Government's proposals for the role of the SPCB will need careful thought. In particular, the SPCB is audited by Audit Scotland, and that might give additional complexity to the question whether the SPCB should have a role in the initiation of the powers in part 2. As members are aware, along with four other MSPs, I am a member of the Scottish Commission for Public Audit, although I do not intend to speak on behalf of that organisation today. Later in the debate we might hear about some of the more technical points. That is a distinct issue, although it is related to the points about the parliamentary commissioners and ombudsmen.
The broader point is about the ambition of the bill. It was heartening that all members of the committee agreed that it does not go far enough. When the Finance Committee first took evidence on the bill, we were told:
"the bill is not primarily a cost-saving exercise".—[Official Report, Finance Committee, 1 September 2009; c 1394.]
The question should be, "Why not?" Everyone is aware of the scale of the financial challenge that will confront the Scottish Government during the next few years. Reforming public services will be the only way to protect them, and to deliver more, or the same, with less resource. So the ambition of the bill, or perhaps the lack of it, represents the missed opportunity that Parliament and Government can and should address at later stages.
We have heard today, and it was also mentioned in the cabinet secretary's letter to the convener of the Finance Committee, that the bill will generate recurrent savings of £40 million by 2013. That is a fraction more than 1 per cent of the likely reduction in the Scottish budget that has been forecast by independent commentators. So when the cabinet secretary says that we must go further and faster, he is right—we need to go very much further. As it currently stands, the efficiency and reform programme is helpful, but it barely scratches the surface of what is required to tackle the spending reduction that will be required to pay off the United Kingdom's national debt. If the bill were any more timid, it would be a minister in Gordon Brown's Cabinet. It is time that the Scottish Government moved up a gear to instigate wider-ranging public sector reform.
Members will have seen the Scottish Council for Voluntary Organisations submission. The SCVO was right to say that public sector spending cuts change the bill's context. The bill would be more effective at achieving public service reform if, for example, it encouraged greater use of the voluntary sector in the delivery and design of public service. Public sector reform could mean greater diversity in the provision and design of public services across the country to allow innovation in service design and greater personalisation of services to users. The opportunity to move to a more flexible provision of services and away from a one-size-fits-all approach could benefit service users. The Government does not have to be the provider of all services, even if it is the funder or the enabler. Indeed, the Government should probably be the provider only if there are no better alternatives. The Government needs to tackle the broader part of the public services reform agenda.
As we have seen, at the core of part 1 is a variety of fairly modest reductions in the number of existing bodies. The target of a reduction of 25 per cent in the number of quangos is aimed more at getting headlines than achieving results, because it does not mean the same reduction in the budgets or head counts of non-departmental public bodies. A reduction in the reach of NDPBs is not much in evidence in the bill.
Creative Scotland has not been mentioned much so far, although it is broadly welcomed by members. My colleagues will talk about it later today, but it is difficult to avoid the conclusion that creative Scotland is in the bill simply because it is an available legislative opportunity. When the Creative Scotland Bill fell in 2008, it was only because some Opposition members did not understand that a bill cannot carry on if we vote for the general principles but against the financial resolution. It would be unfortunate if the Public Services Reform (Scotland) Bill meant that creative Scotland ended up in the long grass once again.
We support the general principles of the bill because we support public service reform. We will use stages 2 and 3 of the bill process to improve the bill and to encourage the Government to increase the pace of public service reform.
In the same item of business
The Deputy Presiding Officer (Alasdair Morgan):
SNP
The next item of business is a debate on motion S3M-5429, in the name of John Swinney, on the Public Services Reform (Scotland) Bill.
The Cabinet Secretary for Finance and Sustainable Growth (John Swinney):
SNP
I am delighted to open the stage 1 debate on the Public Services Reform (Scotland) Bill. The Government came into office with one overarching purpose: to foc...
Mike Rumbles (West Aberdeenshire and Kincardine) (LD):
LD
Does the minister accept that it is not constitutionally appropriate for a Government minister such as him to make changes to parliamentary appointees? That ...
John Swinney:
SNP
I am not sure whether Mr Rumbles has seen the text of the letter that I issued to the convener of the Finance Committee. However, it explains some of the cha...
Mike Rumbles:
LD
That is the fundamental problem that we face in Parliament today. The minister apparently does not accept that it is not up to him or the Government to initi...
John Swinney:
SNP
Mr Rumbles is perhaps making a point about parliamentary officers and individual ombudsmen. If I were to follow the logic of his argument, Government would b...
Mike Rumbles:
LD
No, the cabinet secretary misunderstands the point.
John Swinney:
SNP
No, it is Mr Rumbles who misunderstands. My point is that the Government seeks the power to initiate changes to primary legislation through the route of seco...
Jackie Baillie (Dumbarton) (Lab) rose—
Lab
John Swinney:
SNP
That act enshrined the ability to change primary legislation by secondary legislation. There is a separate point about parliamentary bodies.
Mike Rumbles:
LD
That is the point that I am making.
John Swinney:
SNP
That is fine. I am just coming on to that point. If Mr Rumbles would listen to what I am saying, we might get somewhere. I will give way, though, to Jackie B...
Jackie Baillie:
Lab
Does the cabinet secretary recognise that the legislation to which he referred does not alter the function or, indeed, the existence of public bodies in the ...
John Swinney:
SNP
Of course it is a precedent, because it allows secondary legislation to be used to change primary legislation by order. What I have announced today and share...
Ross Finnie (West of Scotland) (LD):
LD
Can the cabinet secretary point members to any part of the corporate body's constitution or standing orders that gives it any powers to deal with policy matt...
John Swinney:
SNP
I have detected Parliament's concern at different stages—I certainly experienced it in opposition when I was a member of the Finance Committee prior to the 2...
Jeremy Purvis (Tweeddale, Ettrick and Lauderdale) (LD) rose—
LD
John Swinney:
SNP
Wait a minute. That is precisely what I am saying. I am putting in place a power of initiation for the Scottish Parliamentary Corporate Body and reinforcing ...
Robert Brown (Glasgow) (LD):
LD
Does the cabinet secretary accept that the issue is not so much the initiation power, although that is important, as the substantial and widespread nature of...
John Swinney:
SNP
Those bodies are creations of Parliament, and Parliament could decide that it wished to change them. It has the right to do that. I am in no way compromising...
Jeremy Purvis rose—
LD
John Swinney:
SNP
I had better proceed to other subjects and address other ground that the bill covers.Crucially, the Government proposes a number of changes that will strengt...
Patrick Harvie (Glasgow) (Green):
Green
Will the cabinet secretary explain one thing? If he is willing to go through the super-affirmative procedure and to take time to allow committees to take evi...
John Swinney:
SNP
The problem is that the issues can never be taken forward in primary legislation in the fashion that Mr Harvie has characterised. Mr Harvie should consider t...
Dr Richard Simpson (Mid Scotland and Fife) (Lab):
Lab
Will the cabinet secretary give way?
The Deputy Presiding Officer:
SNP
The cabinet secretary should begin to wind up.
John Swinney:
SNP
It would be helpful if the Presiding Officer gave me guidance on when I am due to complete my remarks.
The Deputy Presiding Officer:
SNP
You may have another couple of minutes, given the number of times that you have given way.
John Swinney:
SNP
I will treat Jackie Baillie to some more rhetoric and briefly cover some other provisions in the bill, which will also be covered by my colleagues in the clo...
Andrew Welsh (Angus) (SNP):
SNP
Although the Finance Committee considers the financial implications of all legislation, the committee has never before been designated the lead committee on ...