SB(09)4th Conclusions
MEETING OF THE SCOTTISH GOVERNMENT STRATEGIC BOARD: HELD ON THURSDAY, 16 APRIL 2009
Present
Sir John Elvidge KCB (chair)
Robert Gordon CB
Andrew Goudie
Stella Manzie CBE
Philip Rycroft
Alyson Stafford
Richard Wakeford
Kevin Woods
Bill Bound
David Fisher
Heather Logan
In Attendance
Norman McFadyen (Agenda Items 1 - 3 only)
Angiolina Foster
Sarah Davidson
Ian Cox
Fiona Watt
Katie Wood
Lesley Doherty (Agenda Items 2 only)
Alistair Brown (Agenda Items 2 & 3 only)
John Ewing (Agenda Items 2, 3 & 4 only)
Philip Wright (Agenda Item 5 only)
Cameron Maxwell (Agenda Item 5 only)
David Middleton (Agenda Item 6 only)
John Howison (Agenda Item 6 only)
Ainslie McLaughlin (Agenda Item 6 only)
Trudi Sharp (Agenda Items 7 & 8 only)
Maureen Bruce (Agenda Items 7 & 8 only)
Kathryn Watson (Agenda Item 9 only)
Stuart Nicholson (Agenda Item 9 only)
Agenda Item 1: Minutes and Matters Arising
1. The Strategic Board agreed the minutes of the meeting held on 19 March (SB(09)3rd Conclusions).
2. Ms Stafford recorded her thanks for the contribution and co-operation of all those who helped achieve the co-operation and vigilance which had contributed to the successful end of the financial year.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 2: Public Sector Pay Policy 2009-10 (SB(09)20)
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: Public Expenditure - Future Budgets and Strategic Management (SB(09)21)
8. Stella Manzie introduced paper SB(09)21 which updated the Strategic Board on planning and budgeting for Scottish public expenditure in 2010-11 and beyond.
10. The Strategic Board agreed to the handling approach outlined in the paper.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 4: Concordat/Single Outcome Agreements
11. John Ewing updated the Strategic Board on the position of the Concordat and Single Outcome Agreements (SOAs). He said that the Board was due to discuss these issues, particularly SOAs, in detail at its meeting in May and the purpose of this discussion was to provide context for those more detailed discussions. Mr Ewing said that the Concordat had required a new way of working with local authorities, including the development of new financial relationships, which focussed on the National Outcomes. Whilst the Concordat had existed for a relatively short time, it had developed in such a way as to allow mature and effective dialogue. It was helpful to look at the successes of the new relationships when considering the way ahead. A number of positive benefits were emerging from the new relationships and Mr Ewing asked for the continued support of the Board.
13. Points made in discussion:
(a) Work on developing the relationship should continue. The successes of the Concordat and SOAs to date should be drawn together.
(b) Care should be taken with the language used in discussions, particularly in relation to financial issues, so as not to suggest any return to the position before the Concordat was in place;
(c) Further thought was already being given to engagement with local authorities on budgetary issues, particularly post the HM Treasury Budget Report 2009 on 22 April; and
14. The Strategic Board agreed that it would be important to be in a position to illustrate the success of the Concordat and the SOAs in their first year. (Action: Head of Public Service Reform Directorate)
15. The Permanent Secretary welcomed the Scottish Government officials who joined the meeting at this point to observe the proceedings.
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: Climate Change: Strategic Overview of Policies to deliver 80% Emissions Reduction Target and the need for new governance arrangements on Carbon Emissions (SB(09)22)
16. Richard Wakeford introduced paper SB(09)22, circulating a revised Appendix A. This was the third time in a year the Board had considered the issue of Climate Change, highlighting the importance the Board gave to this topic. It would be important that the Board continued to demonstrate leadership in this area.
18. He said that carbon budgeting was as important as financial budgeting and that it might be an appropriate time to consider whether a system of accounting for and auditing carbon should be introduced.
19. Points made in discussion:
(a) The strategy required to manage climate change would continually evolve and develop. External factors, such as changes in UK taxation and technological changes outwith Scotland, could have a substantial impact on carbon management in Scotland;
(e) When considering measurements, including those used when considering accountability, it would be necessary to have methodology and baselines which were clear and robust. There was no existing standard measurement and, particularly given the differing needs of the various groups involved, this would be a complex task;
(g) Parallel, aligned approaches to carbon budgeting and financial budgeting would allow proper consideration of issues arising when, for example, a proposal might be affordable in financial terms but not in terms of carbon. It might be worthwhile considering whether mechanisms used in procurement processes could be adapted to carbon management;
(h) There were a variety of options for allocating responsibilities for delivery and for governance, all of which needed careful consideration; and
(i) It would be appropriate to appoint a Board member as a champion for Climate Change. This would demonstrate the Board's continuing commitment to this issue. Communication and guidance across the Government would be essential in ensuring the commitment of the whole organisation.
20. The Strategic Board agreed:
(c) That the DG champion should be DG Environment;
(d) That the way in which the Government managed carbon should be reviewed. The Climate Change Delivery Group should lead on this and it should report to DG Environment on how proposals for change should be implemented and governed; (Action: DG Environment, Environmental Quality Directorate, Climate Change Policy and Director of Finance)
(e) The level of commitment towards the climate change agenda within the Government should increase and it was the responsibility of the Board and individual DGs to raise this level. (Action: All)
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 6: Forth Replacement Crossing (FRC): Procurement (SB(09)23)
21. David Middleton introduced paper SB(09)23 which described the steps that Transport Scotland were taking to discharge their responsibilities in relation to the management of the Forth Replacement Crossing (FRC). The paper set out the FRC Project Board's recommendations in relation to the procurement of the design and build contract. The recommendations were aimed at ensuring the best possible delivery of the project aligned with competitive tendering and maximum benefit to the Scottish economy.
24. Points made in discussion:
(a) The FRC Project Board had considered the issues set out in the paper in detail and had tested the competency of the recommendations. The paper was open on risks and the challenges;
25. The Strategic Board agreed:
(a) The approach proposed in the paper, noting that the Project Board had scrutinised the issues thoroughly. The rationale for the proposed approach was clear and the key objective at this stage was ensuring the best quality of competition in the procurement of the design and build of the FRC;
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: Strategic Board Risk Register (SB(09)24)
26. Trudi Sharp introduced paper SB(09)24, which was the second quarterly report to the Board on progress on the Risk Register. The Board were invited to review the four most significant current risks; consider the risk management of five further risks where concerns had been identified; note new and amended risks; consider inclusion of the Climate Change risk; and agree a proposal to review each risk annually with Director Generals.
27. Points made in discussion:
(a) Risks should be aligned to the Business Planning Tool and it would be helpful to incorporate a RAG system. It would be important to ensure that the regular review of risks continued and that the process for updating the Register did not detract from the management of the risks themselves;
(b) An annual review of the process should be carried out but the Register was a live document and therefore additions, amendments and deletions should be completed in real time;
(c) The definition of terms used (eg 'sufficient treatment' or 'concerns') should be spelled out;
(d) To ensure ownership of each entry, a DG Champion to each risk should be assigned even where all DGs were equally responsible for implementation;
(e) When it is to be reviewed, the Register should be considered toward to end of the Strategic Board agenda, to ensure that issues from that Board meeting were included in the discussion of risks;
(f) It was reassuring to note that there were plans underpinning each risk which would mitigate the risks; and
(g) It was helpful to begin to see the connection between the Risk Register and the Business Planning Tool.
28. The Strategic Board agreed:
(a) To add the Climate Change risk to the Register; (Action: Performance Division and Climate Change Division)
(b) That the wording in relation to the Economic Recovery Plan should be reviewed; and (Action: Permanent Secretary and Andrew Goudie to discuss detail outwith meeting)
(c) Consideration should be given as to this format being rolled out across DG areas; (Action: Trudi Sharp and Performance Division)
Agenda Item 8: Reporting Progress on National Performance (SB(09)25)
29. Trudi Sharp introduced paper SB(09)25 which was the draft National Performance Report.
30. Points made in discussion:
31. The Strategic Board agreed that future iterations of this report should be on an exception reporting basis. (Action: Trudi Sharp and Performance Division)
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 9: Organisational Development Strategy and Employee Engagement Corporate Actions (SB(09)26)
32. Stella Manzie introduced the draft Organisational Strategy (paper SB(09)26) which was now almost complete. It was designed to collate the information taken from the previous People, Corporate and Learning and Development strategies. Its aim was to set out the organisation's ethos and outline how the organisation might achieve its aspirations in this area.
33. Points made in discussion:
(a) The paper responded to the needs of the whole Scottish Government;
(c) There should be further consideration on how to communicate, engage, appreciate and value all managerial levels.
34. The Strategic Board agreed to the launch of the Organisational Development Strategy.
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 10: Update on the Economy
35. Dr Goudie introduced this item which was the second of regular monthly updates to the Board on the economy and circulated slides (SB(09)4th Meeting - Presentation - Agenda Item 10 - State of the Economy) to be considered alongside this item.
36. Points made in discussion:
(a) The Economic Recovery Plan was being refreshed and Directors were being encouraged to think of new actions which might promote economic recovery;
37. The Strategic Board agreed:
(a) That it would be useful to engage the Third Sector on how it might engage with people who had become unemployed. (Action: Third Sector Division)
Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 11: Any Other Business
38. No other business was brought to the Strategic Board.
Date of Next Meeting
39. Thursday, 21 May at SAH, Edinburgh at 9.00 a.m.
Cabinet and Corporate Business Secretariat
April 2009