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LOCAL GOVERNMENT FINANCE REVIEW COMMITTEE (LGFRC)

MINUTES OF FIRST MEETING: 01 OCTOBER 2004, ROOM 4E01, ST ANDREWS HOUSE

Present:

Committee
Sir Peter Burt, Chair
Peter Daniels OBE, Member
Janet Lowe CBE, Member
Professor John Baillie, Member

In Attendance:
Andrew Rushworth, Scottish Executive
Nikola Plunkett, Scottish Executive
Billy McKenzie, Scottish Executive
David Hamilton, Scottish Executive (part meeting only)

1. Minutes and matters arising (Paper 2/2)
1.1 The draft minutes of the meeting on 24 August were agreed with one minor amendment.
1.2 The Review Committee returned to the issue of communicating their work via the internet. The Department presented the 2 options available to the Committee: either to have a section on the Scottish Executive Internet site, or to develop a dedicated website solely for the use of the Committee. The Committee agreed that they favoured a dedicated website independent of the Scottish Executive. This would be progressed by Secretariat with the aim of producing a draft website for the Committee to view at their next meeting on 25 October.
1.3 A discussion took place regarding requests for confidentiality from individuals/organisations submitting comments to the Review Committee. The Committee agreed that any party wishing to submit evidence in confidence should first explain why and seek the Committee’s approval for this before the Committee could accept the evidence. The Committee were of the view that if the reason was not valid then the submission could be refused.
1.4 The Department then gave an update of the position regarding the Freedom of Information Act. It was still not clear whether the Act would apply to the Review and further advice would be given at a later date. In principle the Committee agreed that they would work within the spirit of the Act whether it applied to them or not, although there may be a need for a certain amount of confidentiality to ensure that the work of the Committee was not inhibited.

2. Media Strategy
2.1 The Scottish Executive Finance and Public Services Chief Press Officer explained the type of service they could provide the Committee. The Committee were advised that other organisations independent from the Scottish Executive used this service and there had been no suggestion of any bias or undue influence applied. It was agreed by the Committee that the press team would be used and that press enquiries would be handled through them.
2.2 A general discussion then took place regarding publicising the work of the Committee, particularly the upcoming consultation document and the dedicated website. It was agreed that a press release would be issued announcing both the consultation and the launch of the website. The press release could also set out a provisional timetable that the Committee were working to, with the proviso that this could be amended if it was important to take a little more time at the end of the process.
2.3 The press team went on to ask whether it would be Sir Peter who represented the Committee at media events, however it was agreed that it would be more appropriate for the entire Committee to appear together. The Committee were also informed that refresher courses for appearances in front of the media were available to any who would find them useful.

3. Interpretation of remit (Paper 2/3)
3.1 There was a general discussion surrounding the issues raised by the remit. It was agreed by the Committee that the issues needed to be prioritised. Initially the view of the Committee was that the biggest issues they will face is the questions of accountability (the relationship between the amount of revenue raised by a local authority and how accountable it is to its local electorate), and the effect on the economy of each proposed local taxation system.
3.2 To progress the work of the Committee it was agreed that the secretariat would look into co-ordinating initial information papers on:

• The effect on the economy of local individual/business taxes
• The issue of the balance of funding and how it relates to perceived accountability
• A short summary of each of the known possible local taxation systems
• The charges that local authorities can make

It was agreed that Secretariat would look into the provision of these papers and report back to the Committee on 25 October.
3.3 The Committee went on to state that in order for them to fully appreciate the wider impact of its work it would be useful to touch base with the English and Welsh Review of local taxation which is being conducted by Sir Michael Lyons. It was agreed that Secretariat would contact Sir Michael to ask if he would attend a future meeting of the Committee.

4. Draft consultation paper (Paper 2/4)
4.1 The draft consultation paper tabled by the Secretariat was discussed. Several amendments were proposed and it was agreed that members would e-mail Secretariat, copying in the other members, with drafting comments by the 8 October. The Secretariat would then produce a second draft for the 25 October meeting. The Committee agreed they would aim to launch the consultation document sometime in November, alongside the launching of the dedicated website, if possible.

5. Any Other Business
5.1 The Department gave an update on the situation regarding the recruitment of a Secretary and special advisor. A possible Secretary had been identified and a further update would be provided at the next meeting. Regarding the advisor several candidates had been identified and Secretariat were progressing the administrative and procurement arrangements behind this. It was agreed that Peter Daniels would assist in appointing the special advisor on behalf of the Committee.
5.2 The date of the next meeting was set for 12 November. It was agreed that Secretariat would arrange meetings to cover the next 6 months, with around a 3 week interval between each.

Summary of action points:

• Secretariat to progress dedicated LGFRC website
• Secretariat to co-ordinate papers on local authority charges, local taxation systems, the effect on the economy, and accountability/balance of funding and report back at next meeting
• Secretariat to contact Sir Michael Lyons to invite him to a future meeting of the Committee
• Members to e-mail Secretariat with comments on the consultation paper by 8 October, Secretariat to distribute second draft by 18 October
• Department and Peter Daniels to progress appointment of special advisor
• Secretariat to arrange meetings to cover the next 6 month period

Local Government Finance Review Committee
Secretariat
October 2004