Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 282-299)

11 NOVEMBER 2003

SIR JEREMY BEECHAM AND KEN KNIGHT

  Q282  Chairman: Can I welcome you both to the Committee and ask you to formally identify yourselves for the record, please.

  Sir Jeremy Beecham: Jeremy Beecham, Chairman of the Local Government Association.

  Mr Knight: Ken Knight. I am an LGA advisor.

  Q283  Chairman: Do you want to say anything by way of introduction or are you happy for us to go straight to questions?

  Sir Jeremy Beecham: Could I, very briefly, say that the LGA warmly welcomes the thrust of the White Paper. We are sure that it is right now to set the Service in the context appropriate for the 21st century rather than circumstances prevailing in 1947 and, indeed, the previous predatory attentions of the Luftwaffe which rather dictated the shape of the Service and the way it has been carried out. We are confident that the right way to proceed is on the basis of locally assessed risk and processes to deal with that. The Service should be much more geared to preventative work and liaise very closely with other emergency services, and the cultural changes—which you have just been asking about—should be promoted and we should have a service which is more widely representative of the community that it serves.

  Q284  Mr Cummings: The recent pay settlement between the FBU and the employers has again been the subject of high profile media attention. Can you tell the Committee why has the settlement been such a mess? Who do you believe is at fault? Yourselves? The Employer's Organisation? The Audit Commission? It is a matter of grave national concern.

  Sir Jeremy Beecham: I think you left out one possible party in that list, if I may say so. I do not think blame is the appropriate avenue to pursue, but I think it has been very clear since the agreement was signed in June that the whole deal depended on two things. First, progress on negotiations around issues like the overtime ban and so forth; and second—and crucially, and this has been the theme right from the beginning of the process last year, almost exactly a year ago—verification of delivered improvements at local level by the Audit Commission. That was explicitly referred to in the June agreement. We believed it was properly understood by the Union and I was present at a meeting on 5 August with colleagues and other representatives of the Union in which it was made clear that the process had to be satisfactorily implemented and that it would be unlikely—given the late starting date of all this—that by 7 November the Audit Commission would be in a position to verify anything. Indeed, the deal specifically referred to a figure of 7% being payable from—not on—7 November. That was followed up by a joint circular, signed by the joint secretaries—that is the Union General Secretary and Mr Nolda representing the Employers—on 18 September, again making it very clear that the verification was a pre-requisite, that it would be unlikely to be available by November; that, as often has been the case in the past, there would be an element of backdating as from the date when, in this case, the verification actually occurred. I understand that there was correspondence between the Union and the Deputy Prime Minister at the beginning of October in which a request was made that, in the light of good progress on negotiations, in effect that the 7% should be payable at the beginning of November, which clearly suggests that the Union were aware that that was very much in issue. It was, to put it mildly, a surprise when, towards the end of October, when the Employers went beyond what was required of them by the agreement and said they would put 3½% on the table on account—providing that the agreement had been reached—with the rest to be backdated, that this was somehow regarded as provocative. It was not; on the contrary. Judging by the comments that one has seen in the Press I fear that a minority of people on the Trade Union side—I am not speaking here of the Executive, I am speaking of lay members—are perhaps seeking the opportunity to re-open the whole issue and sabotage the deal. I do not think that has been the Union leadership's position, but some of their members may have had that aspiration. From our point of view it has been clear all along and we are as anxious as any people on the Union side that the 7% should be paid. However it must be—and always has been—subject to that verification by the Audit Commission. As yet, of course, there is no agreement never mind any material progress on the ground that can be measured.

  Q285  Mr Cummings: Do you believe the Employer's Organisation is equipped to deal with the sophistication of negotiations?

  Sir Jeremy Beecham: This issue did come to a head about this time last year and it is agreed that we do need to refine the way we do things not just, I may say, in relation to the Fire Service. We are also making changes in the rest of the local government negotiating machinery.

  Q286  Mr Cummings: Where do you see the problem lying, Sir Jeremy?

  Sir Jeremy Beecham: I think the difficulty that we have in local government in a sense is that we tend to be almost too representative. We have to balance a whole range of views. We have elaborate machinery to do that and with the pressure of events—as we saw a year ago—it is often inadequate and too cumbersome to allow for swift decision making. We need more trust, if you like, given to the negotiators to proceed in the context where the policy is clearly identified in advance. I think we are moving in the right direction, but I would have to say that here—as in other areas—the machinery is now outdated and does need overhauling.

  Q287  Mr Cummings: When is it going to be sorted?

  Sir Jeremy Beecham: It is in the process of being sorted on the Employer's side now. We are trying to get that put together. I think the Union is also seized of the need to improve the machinery. It is on-going as we speak.

  Q288  Chairman: When?

  Sir Jeremy Beecham: I would have thought it would be sorted on our side within a couple of months.

  Mr Knight: Meetings are taking place today with all parties, including the other trade unions to be involved in new NJC arrangements, being chaired by Rees Donohue of ACAS. Those meetings are taking place as we speak in order to have a speedy resolution to a new NJC arrangement.

  Q289  Mr Clelland: Sir Jeremy mentioned that Mr Cummings had missed out one possible party to the list he read out. On that basis, does Sir Jeremy regard the Government's intervention as helpful or unhelpful; wise or unwise; necessary or unnecessary? What lessons does he think can be learned for the future in these types of negotiations?

  Sir Jeremy Beecham: Can I ask which intervention?

  Q290  Mr Clelland: The Government's part.

  Sir Jeremy Beecham: Overall?

  Q291  Mr Clelland: Yes. If you think the Government should have a part.

  Sir Jeremy Beecham: It should certainly have a part. We pressed the Government over a year ago to move in order to create a new framework within which the Service could be developed. We needed new legislation and we suggested a year last July a commission to look into the pay issue because we were getting absolutely nowhere in terms of negotiations. Eventually, of course—as we now know—the Commission was established, the FBU declined to take part and matters then ran on. At one stage I think there was a temptation for some people to blame the Government for the breakdown. I do not think that was a reasonable interpretation. Since that time the Government's role has been entirely constructive and we welcome most of the provisions of the White Paper. There are areas where we perhaps have some disagreement or wish them to go further, but the Government is certainly now on the right lines and they are making available £32 million of transitional money to facilitate the process because the savings will not accrue immediately from some of the changes that are now being contemplated at local level.

  Q292  Chris Mole: We have had a number of submissions to this inquiry along the lines that "Our brigade is already doing a lot of this preventative type of work". Are the changes in the White Paper really such a big deal or are a lot of the brigades and authorities already doing a lot of this? Or is it that they are doing it in part but not doing it generally?

  Sir Jeremy Beecham: It is a very variable picture. Some brigades have made considerable advances. In the north east the Tyne and Wear service is generally reckoned to be much advanced along the White Paper route, but the critical issue is getting away—as you have just heard again—from nationally prescribed procedures and standards and going onto something which is based on a proper local assessment of risk. That is fundamental. Equally, on things like co-responding, the practice varies in terms of the use of defibrillators, for example, for cardiac victims. In some brigades firefighters will use equipment and in others they will not. The Union policy, as I understand it, is that they should not. We do need to advance significantly along a number of these issues and the White Paper, when enacted, will provide the statutory framework which will facilitate that and bring, hopefully, all brigades up to the standards of the best and even perhaps allow the best more flexibility to address needs properly.

  Q293  Chris Mole: If the scope for improvement is significant—as the White Paper suggests—then do you feel you are starting with the right building blocks in terms of the people and resources the services have in order to take on these new roles of fire and rescue?

  Sir Jeremy Beecham: In some respects yes. The new system which is competence led should certainly facilitate that. We also welcome the notion that people might be recruited from outside and, reflecting back on some of the questions that were put to previous witnesses, it does seem that that may be helpful. I do not know if one wants to get into the position of accountants running the Fire Service or, perhaps, anything else, but I recall giving evidence to the Public Administration Committee and hearing the Chief Executive of the Staffordshire Ambulance Service giving very compelling evidence of how that Service had changed very significantly. The interesting thing was that he had come to that Service from the Army, not from the Health Service at all. I think there is the potential to refresh recruitment at all levels of a service and perhaps help change the culture.

  Q294  Chris Mole: I think you touched on the next aspect, which is whether the authorities themselves within local government are going to cope with this change and equip themselves to direct, evaluate and make key decisions around the Integrated Risk Management Planning. That is going to be a difficult task. If you look at doing a standards of fire cover review it is like doing a lot of those all at once. Is the capacity there amongst your members?

  Sir Jeremy Beecham: It will need developing just as national standards of fire cover provided a kind of safety blanket for fire officers and no doubt authorities, so the existence of a national pay formula obviated the necessity for any great consideration about issues around pay and therefore the potential for change has never been perhaps as high in this Service as in others and again that requires a cultural change in the attitudes of members. There will need to be more training of members, more support for members, but perhaps because the task is likely to become more challenging it should therefore attract more interested members able to take a fresh look at this Service.

  Q295  Chris Mole: Is that something which will be led through the Improvement and Development Agencies?

  Sir Jeremy Beecham: Yes.

  Q296  Chris Mole: You could consider that an underlying factor of government policy has been expressed through the operational standards but they rather drag resources away from the right places. Is that a view that you would share? Do you think there is a risk in changing that rather too quickly before some of the preventative approaches have been proven?

  Sir Jeremy Beecham: I think each brigade has to look at its own local circumstances. You will have heard evidence from London, for example, and you have just heard evidence about the situation in Birmingham where it is clear that the standards that are currently operating do not reflect need or risk. That has to be changed in any event. I think that is an absolutely fundamental change which will allow better use of existing resources and facilitate the greater drive on the preventative side. Having said that, I do think we need more from Government—if I might say so—on the preventative side as well. There is an apparent reluctance to press on with changes in building regulations to promote perhaps the use of sprinkler systems in new buildings, and so on. I would like to see it a requirement for all tenanted property, for example, to have smoke alarms. That is not of course in itself a sufficient measure, but it would certainly be helpful. A number of authorities—including my own—are installing smoke alarms free of charge in all council properties. This could be extended to all rented properties, I suggest. There are measures like that which need to complement the day to day activities of the Service in terms of prevention.

  Q297  Mr Betts: You touched on the issue of resources and some of the fire authorities have sent evidence to us and have basically said that the Government is asking them to do more, particularly in the non-fire emergencies, therefore they need more resources. I suppose the other way of looking at it is, are the fire services now being asked to do a different job so perhaps resources will be spent differently and maybe there will have to be re-allocation between authorities accordingly. Is more money actually needed or is it a matter of looking to see how it is spent?

  Sir Jeremy Beecham: There is likely to be some more money needed initially. For example, if you are going to encourage co-responding and the use of defibrillators you have actually got to provide the equipment and there is a cost to that. If you are going to establish joint control rooms, perhaps on a regional basis or jointly with other services—and I think the general feeling now is a more regional basis rather than necessarily linking to police and ambulance services—that is going to involve capital investment in terms of specialist equipment. There is some up-front money needed. Over time it is estimated that other changes will lead to some significant savings. If you rationalise control room operations, for example, there will be a saving there. There will be a saving on the new risk based basis if you equate the manpower on duty with the actual risks. It will take time to build up. The Baine forecast leads to £165 million annual savings in the third year, and that is where the transitional money will come in. The other aspect of the current arrangement, of course, is that retained firefighters are—perhaps not before time—being properly recognised in the pay structure and there is obviously a differential impact on the finances of authorities which are more heavily dependent on retained firefighters than full time fire fighters (that is in mostly rural areas). It is partly a question of investing to save and better, more efficient management of the resources which ought not necessarily lead overall—after the transitional period—to the need for larger resources. Of course this is critically dependent on the Risk Management Plans; that is the cornerstone of the whole exercise.

  Q298  Mr Betts: One of the issues that we have to explore is the possibility of charging for some services. I think the LGA has generally come out against, with the exception of maybe looking at the contribution the insurance companies might make in the case of road traffic accidents. The other issue is perhaps advisory services; you might be prepared to look at some charging there. Do you want to say any more about your attitude to charging?

  Sir Jeremy Beecham: I think that this is perhaps worth looking into in a bit more detail, particularly the issue of false alarms which is sometimes difficult for a fire service itself to cope with. It may be—and I speak entirely personally here—that there are areas where financial incentives or, to put it another way, disincentives might lead to some improvement. However, we do not see charging as a major factor in the financial equation.

  Q299  Chairman: What about getting cats out of trees? That can be quite expensive on occasions.

  Sir Jeremy Beecham: Yes. I am not sure how many firefighters actually spend their time shinnying up trees.


 
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