SB(09)7th Conclusions
MEETING OF THE SCOTTISH GOVERNMENT STRATEGIC BOARD: HELD ON THURSDAY, 16 JULY 2009
Present
Sir John Elvidge KCB (chair)
Leslie Evans
Robert Gordon CB
Andrew Goudie
Stella Manzie CBE
Alyson Stafford
Richard Wakeford
Bill Bound
Heather Logan
Apologies
Kevin Woods
David Fisher
In Attendance
Angiolina Foster
Katie Wood
Fiona Watt
Barbara Allison (Agenda Items 2 and 3 only)
Rebekah Widdowfield (Agenda Item 4 only)
Daniel Hinze (Agenda Item 4 only)
Jenny Hamilton(Agenda Item 4 only)
Gary Gillespie (Agenda Item 5 only)
Ros Cockerell (Agenda Item 6 only)
Trudi Sharp (Agenda Items 7 and 8 only)
Hilary Morrison (Agenda Items 7 and 8 only)
Rob Wishart (Agenda Item 7 only)
Agenda Item 1: Minutes and Matters Arising
1. The Strategic Board agreed the minutes of the meeting held on 18 June 2009 (SB(09)6thConclusions) subject to amendments provided to the Corporate Business Secretariat by Andrew Goudie on Item 2, paragraphs 4 and 7, and Alyson Stafford on Item 7, paragraph 24.
2. The Strategic Board Action Tracker had been circulated to the Board. The Board agreed that it would be important to provide the Corporate Business Secretariat with full updates on the progress of individual actions to enable the Tracker to be used effectively.
Agenda Items 2 and 3: Management Information of People (SB(09)37) and Organisational Structure (SB(09)38)
3. Barbara Allison introduced papers SB(09)37 and SB(09)38 and asked that they be discussed together. Paper SB(09)37 was the second of the quarterly reports on management information to be provided to the Strategic Board and provided information on four key areas: workforce; sickness absences; diversity; and turnover.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
(e) The recommended programme of key tasks as set out in paper SB(09)38 should be taken forward; (Action: Director General Finance and Corporate Services and Human Resource and Corporate Services Directorate)
4. The Permanent Secretary welcomed the Scottish Government officials who joined the meeting at this point to observe proceedings.
Agenda Item 4: Climate Change Delivery Programme: Next Steps
5. Richard Wakeford introduced paper SB(09)39 which: provided an indication of the next steps following the passing of the Climate Change (Scotland) Bill by the Parliament on 24 June (Royal Assent was expected in August); and sought to provide the Strategic Board with a clear understanding of the forthcoming carbon assessment of the 2010-11 Budget to be published in September at the same time as the draft Budget 2010-11.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
6. Parliament had set a 42% emission reduction target for 2020.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
7. Thanks were due to staff in the teams headed by John Mason and Philip Wright for their work to analyse and set out the implications for the organisation of the relevant issues.
8. Rebekah Widdowfield said that, while the Government would be in a position to meet the requirement to publish the carbon assessment of the 2010-11 Budget in September, the timescales were challenging.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
9. Points made in discussion:
(a) The climate change agenda raised fundamental and important issues in relation to which the Board should provide leadership. The next step would be for clarity on the actions which the organisation, at every level and in each area, would need to take. Such clarity would assist the Board in providing the necessary leadership;
(b) Corporate control and robust management would be crucial, particularly to ensure a consistency of approach to the various parallel workstreams. Regular reporting to the Board would provide the assurance that effective, appropriate management was in place. When considering management and delivery issues, it might be helpful to draw on the approach taken in organising the National Conversation work;
(c) There should be parallel discussions on the 2010-11 Budget and carbon assessment of Government spend, recognising their interaction and the need for work in these areas to dovetail;
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
(d) Excellent collaborative work was being undertaken between Rural and Environment Analytical Services, Climate Change teams, Finance Directorate and the Office of the Chief Economic Advisor;
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
10. The Strategic Board agreed that:
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(a) It recognised the complexity of the issues and was committed to ensuring awareness and understanding of the forthcoming carbon assessment of the budget across the organisation. Carbon assessment should be integrated into the Government's work.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
(Action: Climate Change Delivery Board)
(b) A "Core Brief" should be provided to aid the organisation's internal understanding and awareness of carbon budgeting; and (Action: Communications Directorate; and Rural and Environment Analytical Services)
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 5: Update on the Economy (oral item)
11. Andrew Goudie introduced the regular monthly update to the Strategic Board on the economy. He circulated slides (SB(09)7th Meeting - Presentation - Agenda Item 5 - Current State of the Scottish Economy).
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
12. Last month's update on the economy had mentioned that a slight rise in manufacturing output had been seen by some as cause for optimism but, given further contraction, this was no longer the case. A more cautious assessment was now generally adopted.
13. In the labour market information published on 15 July employment figures had reduced by 72,000 and unemployment figures risen by 73,000. Employment figures had previously been reducing without a corresponding increase in unemployment figures but this was no longer the case. The claimant data was disaggregated to regional level and the regional variations in unemployment appeared very different from the previous recession. The latest independent forecasts for Scottish GDP did not forecast growth this year and only slow growth thereafter. This was similar to the outlook for other developed economies.
14. Gary Gillespie, Head of the Office of the Chief Economic Adviser (OCEA), circulated slides (SB(09)7th Meeting - Presentation - Agenda Item 5 - SME Access to Finance - Survey 2009).
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
15. The results of the study were being published on 16 July.
16. Points made in discussion:
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(a) The analyses of the study had been undertaken by OCEA and allowed for multi- and cross-sectoral analyses to be carried out. Further work on supply and demand constraints should continue together with consultation with key stakeholders.
17. The Strategic Board agreed that further analysis of the study should take place, including: breakdown of information between rural and urban experiences; and by sectors. (Action: Head of the Office of the Chief Economic Adviser)
Agenda Item 6: Finance Director's Report SB(09)40
18. Alyson Stafford provided an update on the final outturn figure for 2008-09 against the budgets approved by the Scottish Ministers and the Departmental Expenditure Limit (DEL) budget allocated by HM Treasury. The provisional outturn underspend of £31m had been announced to Parliament.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
19. Alyson Stafford introduced paper SB(09)40 which provided a high level overview forecast of year end outturn expenditure for 2009-10 informed by spending in the first quarter of 2009-10.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
20. Points made in discussion:
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(a) The requirement for specific approval for new financial commitments above £250,000 included cases where the expenditure in question is part of an approved programme and the portfolio holds an agreed budget. This arrangement had been applied from 1 July 2009 and finance teams held detailed guidance to assist teams with questions about its application; and
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 7: Corporate Balanced Scorecard: Report on progress of statistical review and next steps (SB(09)41)
21. Trudi Sharp introduced paper SB(09)41 which sought Strategic Board's views on the initial findings of the Office the Chief Statistician's review of the Corporate Balanced Scorecard and the potential for significant developments over time to better meet the needs of the Board. A refreshed timetable for preparation and consideration of the next edition of the Scorecard was set out in the paper. It had not been possible to bring the revised Scorecard to this meeting as not all refreshed data could be produced in time from the end of the quarter at 30 June and it would be brought to the Board meeting in August.
22. Rob Wishart said the Chief Statistician's preliminary findings of the review of the Scorecard showed areas where significant improvements could be made in both how material was collated and how it was presented to the Board. Paragraph 4 of the paper set out the next steps that could be taken.
23. Points made in discussion:
(a) Corporate Services Directorate were also undertaking work that required ingathering and collation of data. The organisation should ensure that collation of similar information was streamlined and did not represent duplication of effort; and
(b) The ongoing development of the Scorecard should include consideration of whether: the organisation was measuring things effectively and smartly; and the right activities were being measured.
24. The Strategic Board agreed that:
(a) The Quarter 1 Balanced Scorecard should be provided to the Board in August incorporating, as far as possible, refinements identified in the review;
(b) Work should continue with data providers on refinements;
(c) There should be continued investigation of supplementary and alternative measures;
(d) Discussions should take place regarding the significant resource implications; and
(e) Work with the Business Intelligence Project Senior Responsible Officer should be undertaken to maximise the utility.
(Action: Performance Division)
Agenda Item 8: Strategic Board Risk Register SB(09)42
25. Trudi Sharp introduced paper SB(09)42 which considered the Strategic Board Risk Register.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
The paper contained an annex which provided definitions of terms used in the Risk Register, outlined the role of the Risk Owner, and set out a timetable for further Risk Register reports to the Board.
26. Points made in discussion:
(a) It was important, when considering risk, to consider both the scale of the risk and what influence the Government could have in mitigating the risk. Such consideration could be reflected in the wording of the risk as it appears in the Register;
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
(b) There might be a further risk which would merit inclusion on the Risk Register if the key assumptions made by the organisation about the outside world were to require change. The most relevant current risk was identified as being risk 4.1 but it would be helpful to consider this matter in detail;
(c) The Risk Register would always narrate concerns. If this was not the case, it would cease to be a valid reflection of the organisation's risk profile. It would be important that the responses to the concerns were adequate; and
(d) There was a need for judgement when agreeing what should be monitored as a risk. It would also be worth considering more creative ways of using the Tool.
27. The Strategic Board agreed that:
(a) The description of risks 3.2 and 5.4 should be refined;
(b) The rating of risk 2.6 should be reviewed;
(c) The Director General lead for risk 2.1 should be re-allocated;
(d) Consideration should be given to how additional risks related to the role of Board of "Looking ahead to anticipate and be ready for the opportunities and challenges which may lie ahead in the future" might be reflected. This would include consideration of what risks might arise as a result of changes outwith the Government.
(Action: Performance Division)
Agenda Item 9: Any Other Business
28. The Permanent Secretary thanked Richard Wakeford for his contribution to the organisation as this was Mr Wakeford's last Board meeting in his current role. The Permanent Secretary said Mr Wakeford had delivered ambitious change over his four and a half years with the organisation, played a lead role in driving the use of the Purpose as a way of shaping the work of the organisation, and been a champion of the redefined Director-General role. The Permanent Secretary said the organisation owed a debt of gratitude to Mr Wakeford for his contribution.
29. The Board would be provided with a paper on "State of Readiness" in relation to Influenza A(H1N1), for consideration at the next meeting. (Action: Director-General Justice; Head of Scottish Resilience; and Director of Police and Community Safety)
Date of Next Meeting
30. Thursday, 20 August at SAH, 9.00am.
Cabinet and Corporate Business Secretariat
July 2009