SB(09)13th Conclusions
MEETING OF THE SCOTTISH GOVERNMENT STRATEGIC BOARD: HELD ON THURSDAY, 17 DECEMBER 2009
Present
Sir John Elvidge KCB (chair)
Leslie Evans
Robert Gordon CB
Andrew Goudie
Paul Gray
Stella Manzie CBE
Alyson Stafford
Kevin Woods
Bill Bound
Heather Logan
Apologies
David Fisher
In Attendance
Norman McFadyen
Angiolina Foster
Sarah Davidson
Elinor Mitchell
Nicola Richards
Chris Boyland
Katie Wood
Barbara Allison (For Agenda Item 2 only)
Ian Davidson (For Agenda Item 2 only)
Paul Johnston (For Agenda Item 2 only)
John Ewing (For Agenda Item 2 only)
Tom Davy (For Agenda Item 2 only)
Cath Henderson (For Agenda Item 2 only)
Murdoch Macleod (For Agenda Item 2 only)
Alastair Merrill (For Agenda Item 2 only)
Jonathan Pryce (For Agenda Item 2 only)
Douglas Greig (For Agenda Items 2 and 3 only)
Chris Stark (For Agenda Item 3 only)
Murray Sinclair (For Agenda Item 8 only)
Paul Cackette (For Agenda Item 8 only)
Please note that parts of the record of discussion are considered exempt from publication and have been redacted.
Agenda Item 1: Minutes and Matters Arising
1. The Strategic Board agreed the minutes of the meeting held on 19 November (SB(09)12th Conclusions).
2. The Strategic Board Action Tracker had been circulated to the Board. Updates on the actions would continute to be recorded on the Tracker.
Agenda Item 2: Shaping Up Report (SB(09)68
3. Stella Manzie introduced paper SB(09)68 which invited the Strategic Board to agree the recommendations of the draft report of the Shaping Up Core Review project and updated the Board on the 5 specific review projects which also formed part of the Shaping Up Programme.
4. In the course of the 3 previous months, the Core Review Team had undertaken an extensive programme of consultation with staff, undertaken interviews with senior managers and carried out desk-based research to inform the contents of the draft report.
5. Ian Davidson described the consultation process, and Paul Johnston outlined the content of the 22 recommendations in the draft report (SB(09)13th Meeting - Presentation - Agenda Item 2 - Shaping Up). Barbara Allison said that the report contained a draft implementation plan, of which the detail would be finalised following the Board discussion. It was hoped that the executive summary of the report could be published on the Intranet in January 2010.
6. Points made in discussion:
(a) It would be important to make rapid progress to implement the conclusions of the Review. It would therefore be helpful to agree, in principle, as many of the recommendations as possible;
(b) The vision which was set out in the report was commendable, but it would be important, during the implementation phase, to bear in mind economic circumstances and the possible financial constraints facing the organisation;
(c) A number of the recommendations made reference to desired behaviours; the senior women's network had undertaken some work on this which could be shared more widely;
(d) It might be helpful to draw out more clearly the implications of the report for more junior grades of staff;
(e) It might be worth considering using PRINCE2 methodology during the implementation phase, for which it would also be useful to have an assessment of the deliverability of the recommendations and a risk register;
(f) The team leading the implementation phase should be appropriately skilled, resourced and adequately supported by the corporate centre.
7. The Strategic Board agreed:
(a) That consideration should continue as to how the recommendations should be implemented, and a single implementation plan should be prepared; (Action: Director General Finance and Corporate Services; Director of Human Resources and Corporate Services; and Shaping Up Programme Team);
(b) To note the progress made with the specific reviews and to agree that the principles underpinning the main report should be incorporated into the specific reviews. For each of the reviews, the relevant team should draw out the principles which the Board would, in due course, be asked to agree. (Action: Director of Strategy and Ministerial Support; Director of Procurement; Director of Rural Payments and Inspections; Director of Transport; Chief Executive of Transport Scotland; Director of Human Resources and Corporate Services; and Director of Finance)
Agenda Item 3: Economic Recovery and Long-Term Sustainable Growth (SB(09)69)
8. Andrew Goudie introduced paper SB(09)69.
Agenda Item 4: Annual Report from the Scottish Government Audit Committee (SB(09)71)
9. Bill Bound introduced paper SB(09)71 which provided the annual report of the Scottish Government Audit Committee (SGAC) for accounting year 2008-09. The SGAC had held several meetings during the year, including a very productive meeting with the chairs of the various Portfolio Audit Committees.
10. Points made in discussion:
(a) The SGAC was an important element in the overall governance structure of the Scottish Government and should not be regarded as an additional process. Care should, however, be taken to ensure that process did not overtake substance.
11. The Strategic Board agreed:
(a) To note the activities and the business of the SGAC for the accounting year 2008-09.
Agenda Item 5: Update on the Pre-Budget Report (oral item)
12. Andrew Goudie provided an oral update on the Chancellor of the Exchequer's Pre-Budget Report (PBR) of 9 December 2009 and circulated slides (SB(09)13th Meeting - Presentation - Agenda Item 5 - Update on the UK PBR). There was considerable uncertainty surrounding the detail of the PBR and its implications for Scotland. The underlying assumptions with respect to growth and employment were critical to the PBR and were relatively optimistic compared to those of external analysts. The UK was facing serious fiscal problems. It was difficult to assess the impact of the PBR for Scotland but, compared with 2010-11, spending plans in Scotland might be expected to fall by around £1 billion in real terms per year over the coming 3 years. The latest labour market statistics and the most recent Markit PMI Scotland Survey of Private Sector Output showed some encouraging signs.
13. The Strategic Board agreed that:
(a) It would be useful to highlight the interaction between the speed at which the public sector might contract and the wider economic impact; (Action: Director General Economy) and
(b) It would be helpful to have clarity on the key financial and economic messages to be shared consistently with stakeholders. (Action; Director General Economy)
Agenda Item 6: Finance Director's Report (SB(09)70)
14. Alyson Stafford introduced paper SB(09)70.
15. The Strategic Board agreed:
(a) To note the current financial situation.
Agenda Item 7: Audit Scotland Final Report on the 2008-09 Audit (SB(09)72)
16. Alyson Stafford introduced paper SB(09)72 which had previously been circulated to the Board in correspondence (SBC(09)16). No comments had been received in respect of paper SBC(09)16, and the Permanent Secretary had issued a sign-off minute on 14 December.
17. The Strategic Board agreed:
(a) To note that the Audit Scotland Final Report on the 2008-09 Audit had been approved through the Strategic Board correspondence system.
Agenda Item 8: SGLD - Update (oral item)
18. Murray Sinclair introduced this item, which was a follow-up to the "Quantum of Litigation" item at Strategic Board in October 2008. Paul Cackette circulated slides (SB(09)13th Meeting - Presentation - Agenda Item 8 - SGLD Update) and outlined the implications for the Scottish Government of the implementation of the Treaty of Lisbon, which had come into force in the 27 EU Member States on 1 December 2009. Key provisions of the Treaty were: the extension of qualified majority voting in the Council of Ministers, with the loss of national vetoes; the establishment of the posts of President of the European Council and High Representative of the Union for Foreign Affairs and Security Policy; the establishment of the EU as a consolidated body with separate legal personality; and a provision to make the EU Charter of Fundamental Rights legally binding, from which the UK had secured an opt-out.
19. Points made in discussion:
(a) SGLD staff were receiving further insight and training on the Lisbon Treaty and the new infraction procedures.
20. The Strategic Board agreed that:
(a) The Strategic Board should discuss the handling of European business, given the increasing complexity of this work; (Action: Director General Education and Lifelong Learning) and
(b) SGLD would use the opportunity of the launch of the "Right First Time" publication at the end of January to undertake some awareness-raising events for Ministers and officials on the implications of the implementation of the Lisbon Treaty. (Action: Director General Justice and Communities, and Solicitor to the Scottish Government)
Agenda Item 9: Directors General Reports (oral item)
21. The Permanent Secretary introduced this item, which would focus on the key successes of 2009 and the likely challenges in 2010.
22. Kevin Woods said that the NHSScotland Chief Executive's Annual Report outlined the significant achievements which NHSScotland had made in the past year, all of which had been achieved within the financial envelope allocated to NHSScotland. There had been good progress on the planning for the 2014 Commonwealth Games. The Government's work with the armed forces and veterans had been well received. Alcohol, which was one of the biggest population health issues, was now firmly on the agenda.
23. Robert Gordon said that Directors and Deputy Directors were now engaging the wider public sector on discussions around achieving the Purpose and National Outcomes. Crime levels, and the fear of crime, had reduced. There were high levels of collaboration between the teams working on drugs, alcohol and community safety. The reform of the judiciary was continuing. Good progress had been made by the Serious and Organised Crime Task Force. A national policing board had been set up. The civil contingency and resilience arrangements had functioned well.
24. Norman McFadyen said that the case management system in the Crown Office and Procurator Fiscal Service had been replaced, and the handling of transactional business, particularly bulk case work, had been very effective. The organisation had a stable workforce, which placed it in a strong position to face the challenges ahead.
25. Paul Gray said that Scotland was now viewed as leading the world in relation to climate change legislation; and that the integration of carbon assessment work into financial budgeting was leading edge work. Scotland was the only UK country which had TB-free status for cattle. Scotland was at the forefront of sustainable fishing. Marine Scotland had been created and a Marine Bill produced. Over 14,000 Single Farm Payments had been made in the first week in December, which was an example of excellent service delivery to the public which had injected over £100 million into the Scottish economy.
26. Stella Manzie congratulated the communications and marketing teams which had consistently provided a high level of service to Ministers. The performance team had worked hard to raise the issues of performance and accountability with Strategic Board and beyond. The prompt payments team had made a substantial contribution to economic recovery.
27. The Permanent Secretary thanked everyone for their efforts and congratulated everyone on their achievements over the course of the year. 2010 would pose a number of challenges for the organisation, but there was a strong organisational commitment and resolve to meet the challenges ahead.
Agenda Item 10: Any Other Business
28. No other business was brought to the Strategic Board.
Date of Next Meeting
29. Thursday, 21 January 2010 in Victoria Quay, Edinburgh at 9.00am
Cabinet and Corporate Business Secretariat
January 2010