SB(08)10th Conclusions
MEETING OF THE SCOTTISH GOVERNMENT STRATEGIC BOARD: HELD ON THURSDAY, 14 AUGUST 2008
Present
Sir John Elvidge KCB (chair)
Robert Gordon CB
Stella Manzie
Philip Rycroft
Richard Wakeford
Kevin Woods
David Fisher
Bill Bound
Apologies: Andrew Goudie, Angiolina Foster
In Attendance
Alyson Stafford
Sarah Davidson
Elinor Mitchell
Andrew Watson
Lesley Sheppard
Ros Cockerell (For Agenda Item 2 only)
Malcolm Reed, Ainslie McLaughlin and John Howison (For Agenda Item 3 only)
John Williams (For Agenda Item 4 and 5 only)
Nicola Paterson and Dominic Munro (For Agenda Item 6 only)
The Permanent Secretary welcomed Stella Manzie, Director General for Finance and Corporate Services to her first Strategic Board meeting. He also welcomed 6 observers.
Agenda Item 1: Minutes and Matters Arising
1. The Board noted the minutes of the meeting held on 26 June 2008. There were no matters arising.
Agenda Item 2: Finance Directors Report (SB(08)33)
2. Alyson Stafford introduced paper SB(08)33, which reported on key financial developments, including forecast outturn expenditure informed by spending in the first quarter of 2008-09.
3. The Strategic Board:
(a) Noted forecast outturn expenditure and reiterated their commitment to pro-active budget management and robust monitoring throughout 2008/09;
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 3: Forth Replacement Crossing (Presentation)
The record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 4: Budget 2008-09 - Forward Look (SB(08)36)
4. Alyson Stafford introduced paper SB(08)36, which provided an overview of the financial perspective for the current year.
5. The Strategic Board:
(a) Considered the potential budgetary implications of a range of short, medium and long term strategic risks that featured on the Board's corporate risk register and agreed that the strategic risk framework should be updated accordingly, including wrapping together the individual risks of terrorist attack, freak weather and pandemic episodes into a single civil contingencies risk, the subsets of which were already monitored as a matter of course below Board level. (Action: Alyson Stafford)
(b) Agreed that individual risks should be attributed to relevant lead Directors, with Directors General maintaining an overview through their "family" relationships and the Board retaining overall oversight of the risk framework; and
(c) Agreed that work already undertaken by Finance colleagues on how risks could be allocated should be circulated to Directors General for final approval; (Action: Stella Manzie/Alyson Stafford).
Agenda Item 5: Capital - Forward Look (SB(08)35)
6. Alyson Stafford introduced paper SB(08)35, which presented a strategic perspective on medium to long term infrastructure investment needs.
7. The Strategic Board:
(a) Noted that the introduction of international financial reporting standards would have an impact on the capital programmes of all government departments in the UK and devolved administrations, including the Scottish Government;
(b) Agreed that the paper provided a very helpful overview of long term infrastructure decisions but that the next phase of work in this area should look at proposing some more refined options and prioritisation for the Board to consider recommending to Ministers; (Action: Alyson Stafford) and
(c) Agreed that further consideration of the forward look should incorporate the context provided by the National Outcomes; (Action: Alyson Stafford);
The record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 6: Public Sector Pay 2008 and beyond (SB(08)34)
8. Alyson Stafford introduced paper SB(08)34, which provided an update on public sector pay issues, both for the current year and over the Spending Review period as a whole, and reporting on progress with pay remits for public bodies within the scope of Ministers' public pay policy.
9. The Strategic Board noted:
(a) the importance of public sector pay settlements in influencing the affordability and volume of public services that can be delivered within set budgets;
(b) the importance of pensions as part of the public sector reward package and their impact on public expenditure;
(c) the broad levels within which public pay settlements are currently being reached;
(d) progress so far with reviewing and approving remits submitted by bodies within the scope of Minsters' public pay policy;
(e) the current position regarding industrial relations across the public sector;
(f) proposed discussions with trade unions around the principles of pay coherence across the public sector; and
(g) the range of actions that it was possible to take to mitigate risks presented by pay negotiations across public sector budgets as a whole.
Date of Next Meeting
10. There would be a single item Board meeting on 21 August 2008 to discuss analysis of the strategic impact of rising energy costs. The next full Strategic Board was planned for 18 September 2008 and would be held in St Andrew's House (the visit to Inverness having been deferred until October).
Cabinet and Corporate Business Secretariat
September 2008