Minutes:
The Chief Executive submitted for the Committee’s consideration the undernoted report:
“1.0 Relevant Background Information
1.1 The local government reform process is now entering a critical stage whereby primary legislation is being drafted and implementation structures put in place to support the delivery of the reform programme and the effective transfer of functions from central to local government.
1.2 The proposed transfer of key functions such as planning and regeneration present a real opportunity for the Council to make a real and lasting difference in stimulating the local economy and improving the quality of people’s lives across the city.
1.3 Whilst the Council will be less affected by the convergence issues which will be experienced by the other merging councils, the Council now need to restore its focus on planning for reform and shaping the approach taken by the wider local government sector.
1.4 The purpose of this paper is to set out for Members consideration the Council’s delivery and resource plan for the implementation of reform and the role of the Committee and Members in taking the process forward.
2.0 Key Issues
2.1 Members will appreciate both the significance and scale of the reform programme and the need for the Council to ensure that it has the capacity in place to ensure effective delivery in addition to other substantial work programmes such as the Investment Programme, efficiency programme as well as delivering business as usual. In-line with a previous decision taken by the Committee, a dedicated corporate support resource has been put in place to provide strategic support to the Committee, Members and senior officers in taking forward Review of Public Administration (RPA) related work.
2.2 A copy of the Council’s draft delivery and resource plan for reform has been circulated for Members’ consideration. Examples of some of the immediate critical issues which the Council will need to address in moving forward include:
(i) to influence key strands of emerging legislation (e.g. draft Local Government Reorganisation Bill) which may affect the future governance and operational arrangements of the Council;
(ii) to establish a professional evidence base to inform the political engagement with Lisburn and Castlereagh on important transitional issues;
(iii) to identify and plan for the financial and operational implications of extending council services to those geographical areas coming within the new Belfast boundary;
(iv) to identify and manage potential rating issues resulting from the extension of the Belfast boundary;
(v) to take a progressive approach to preparing for the transfer of functions through the early initiation of integrated pilots initiatives linking planning, roads and regeneration activity
(vi) to identify and plan for HR related matters associated with the potential transfer of new staff from neighbouring councils or transferring function departments; and
(vii) to ensure the effective and continued communication with all key stakeholders
2.3 Now that the draft Boundary Order has been cleared through the NI Assembly, work will commence with Land and Property Services (LPS) to undertake a detailed analysis of the impact of the boundary change on the Belfast rates base. This analysis will facilitate early modelling of the Estimated Penny Product (EPP) scenarios and enable the Council to start to plan for any financial implications resulting from the extension to the Belfast boundary. There are a number of rating issues which need to be addressed as part of the RPA transition process as outlined below.
(i) Rates Convergence - One of the key issues that needs to be addressed is how the convergence of District Rates within each new Council area will be managed. Based on work previously undertaken by Department of Finance and Personnel and the Department of the Environment in 2009, some of the differences between the estimated rates of the new councils versus the rates of the legacy councils varied greatly. Much work is needed to ensure that the overarching principle of the rates neutrality of the reform process is maintained. There is a requirement to review and refresh this work and provide options for how rates convergence can be achieved.
(ii) Legacy Issues - Legacy rating policy decisions will be required to determine the management of legacy debt write-offs and rating appeals.
(iii) Data sharing - The successful management of rates transition will be underpinned by the availability of information about the new councils’ rates base. At present, all rates information is held by LPS. It is recommended that a protocol for sharing data between LPS and councils is developed as a matter of urgency.
(iv) LPS Accountability - Currently, LPS is accountable to the Minister of Finance and Personnel for its rates collection performance. It is recommended that consideration is given to how LPS accountability to local government in the context of 11 district councils can be enhanced.
2.4 Members will note that the Council’s delivery plan is aligned with the DoE‘s current reform timetable and seeks to ensure the appropriate sequencing of activities. The delivery plan will be a live document and will be continually reviewed with regular progress updates submitted for the consideration of the Committee including any necessary changes to take account of potential external drivers.
Members role in driving delivery
2.5 It is important to restate the important and strategic role of the Committee and elected Members in driving forward the delivery of local government reform. The Strategic Policy and Resources Committee, acting in its capacity as the Belfast voluntary Transition Committee, will be the decision maker in relation to the reform process within the Council and all issues will be reported by officers for decision.
2.6 Members will also lead on the critical conversation with the Castlereagh/Lisburn Transition Committee in relation to assets that may transfer and arrangements for the new Council.
2.7 Members will also have to be active on the Northern Ireland Local Government Association (NILGA) and the National Association of Councillors as they engage with the Minister in relation to reform issues. Officers will of course be happy to support them in these conversations.
2.8 Members have a critical role in engaging with central government departments and Ministers to ensure the effective and timely implementation of the reform programme and the creation of a strong and effective local government sector within Northern Ireland. Some of the key roles of Members in supporting the delivery process are outlined below:
2.9 (i) Leading-reform and ensuring a ‘one Council’ approach to delivery
(ii) Shaping-legislation and policy proposals in pursuit of Belfast’s interests
(iii) Challenging- internal processes and approaches to ensure effective delivery
(iv) Enlisting-key stakeholders (including citizens) in process and securing ownership
(v) Influencing-NI Executive, Ministers, government departments for better outcomes
(vi) Balancing - corporate priories' and ensuring adequate resources to deliver
2.10 Set out below is a proposed draft high-level Forward Work Plan for the Committee over the next year setting out the key reform related issues which Members will need to consider. Detailed projects briefs on each of the workstreams have been circulated.
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COMMITTEE FORWARD WORK PLAN |
Timescale |
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Legislation – engage and influence |
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1. Committee report on the emerging Local Government Reorganisation Bill proposals, the associated implications for the Council and a draft corporate response. Proposals for a Member led lobby campaign on critical issues. |
Sept /Oct. 2012 |
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Boundary Changes and Convergence |
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2. Submit independent report examining the potential rating issues for the Council and setting out potential options for addressing these. |
Oct. 2012 |
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3. Findings report on an initial high-level review of the potential assets and liabilities which may transfer from Lisburn and Castlereagh and the associated financial implications including potential capital and/or maintenance requirements. |
Aug. 2012 |
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4. Submit for the consideration of Committee a set of draft guiding principles which should underpin any negotiations regarding the potential transfer assets and liabilities from Lisburn and Castlereagh |
Aug. 2012 |
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5. Submit for the consideration of Committee a 1st cut draft transition plan setting out key workstreams which need to be jointly progressed with Lisburn and Castlereagh |
Aug. 2012 |
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6. Commence political engagement with Lisburn and Castlereagh |
Aug. 2012 ongoing |
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7. Options paper on possible composition of the Belfast Statutory Transition Committee, taking account of the requirement for representation from Lisburn and Castlereagh. |
Sept. 2012 |
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8. Detailed due diligence report on the potential transferring assets and liabilities including consideration given to key issues such as condition, potential investment requirements, restriction issues etc. |
Feb/Mar 2013 |
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COMMITTEE FORWARD WORK PLAN |
Timescale |
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9. Detailed due diligence scoping report outlining the key service convergence issues which need to be addressed by the Council and a implementation and resource plan for taking these forward. |
Feb/Mar 2013 |
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Finance |
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10. Submit for the consideration of Committee a local government reform benefit realisation paper which sets out the key funding issues and benefits attached to the funding of the local government reform programme |
Aug. 2013 |
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11. Submit for the consideration of Committee a report setting out potential collaborative opportunities linked to the local government Improvement, Collaboration and Efficiency (ICE) Programme and the Council’s own efficiency programme for period 2013/2014 and beyond. |
Dec. 2013 |
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12. Member engagement with DoE, DFP and NI Executive to discuss and negotiate future funding models for those functions to transfer to the Council. |
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Transfer of Functions |
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13. Options paper outlining potential ‘Belfast integrated Pilots’ with DoE Planning, DSD and DRD including associated implementation and resource plan for taking pilots forward. |
Aug. 2012 |
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14. Update report to Committee outlining the current position in regards to the proposed package of transferring functions. |
Sept. 2012 |
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15. Progress update report on implementation of Belfast pilot initiatives |
Nov. 2012 |
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16. Detailed due diligence review of the functions proposed to transfer of BCC and any associated financial, HR, operational and/or system implications for the council. |
Jan./Feb. 2013 |
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17. Co-design workshop with Members to examine and map out the potential OD implications and synergies between key transferring functions, community planning and existing Council functions. |
Feb/Mar 13 |
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18. Submit for the consideration of Committee, an initial scoping paper setting out potential options regarding future organisation design and service delivery models taking account of the transferring functions. |
Mar/April 2013 |
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COMMITTEE FORWARD WORK PLAN |
Timescale |
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Human Resources and OD |
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19. Submit for the consideration of Committee a scoping paper outlining the potential HR transitional issues which need to be considered by the Council e.g. vacancy control, staff transfer, appointment of senior team, severance etc. |
Oct. 2012 |
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20. Submit for the consideration of Committee a draft delivery and resource plan for taking forward the HR transitional issues. |
Nov /Dec 2012 |
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21. Implement BCC Capacity Building Programme for elected Members and officers as part on BCC ongoing Organisational Development work. Ensure effective internal communications on these matters. |
Jan. 2013 ongoing |
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Communications and Engagement |
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22. Engagement programme with NI Executive’s Ministers on critical issues facing the city including local government reform. |
June /Sept 12 ongoing |
4.0 Resource Implications
There will clearly be significant HR and some financial implications attached to the delivery of the reform programme and in supporting the Committee and Members in their important role in leading the process.
Human Resources – In terms of supporting delivery, it is proposed that this will be through realignment of resources with no additional costs to the ratepayer.
Financial - Whilst there are likely to be resource implications for the Council emerging from the local government reform programme, the scope and scale of these are still to be determined, it is proposed that an initial budget of £100k be allocated from the existing invest to save budget to support RPA related activity such as delivery of capacity and training, commissioning of independent due diligence reviews etc.
5.0 Recommendations
Members are asked to:
(i) consider the contents of this report, including the detailed delivery plan, a copy of which has been circulated;
(ii) consider and agree the proposed Committee Forward Work Plan as set out above; and
(iii) consider and agree that an initial £100k RPA budget be allocated from invest to save.”
After discussion, the Committee adopted the recommendations.