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


Memorandum by the Trades Union Congress (TUC) (DRA 31)

SUMMARY

    —  The TUC welcomes the proposals to introduce elected regional government in the English regions where the majority are in favour. The Draft Regional Assemblies Bill brings some clarity to the debate surrounding the proposed functions and responsibilities of elected regional assemblies.

    —  We believe any changes to Government and other staff following the creation of an elected regional assembly should take place with the full consultation and negotiation of staff and their trade union representatives.

    —  We welcome the requirement on assemblies to be open and accountable bodies, subject to scrutiny.

    —  The proposal to give assemblies general powers to help deliver sustainable development is important. The duty placed on assemblies to promote equality of opportunity is a significant step forward. Assemblies should be required to take pro-active measures to deliver greater equality in their structures and activities.

    —  The proposed powers of an assembly reflect the process of regionalisation that has taken place within Government and public policy since 1997.

    —  The Draft Bill is right to highlight that stakeholders with large constituencies, such as trade unions, should play a role in an assembly. However, the Draft Bill as it stands suggests that assemblies will be free to form a relationship with stakeholders as it sees appropriate. We believe assemblies should engage with those stakeholders outlined in the Draft Bill, including trade unions. Unions play a significant role in the Scottish parliament and the Welsh Assembly.

TUC EVIDENCE TO THE ODPM SELECT COMMITTEE INQUIRY ON THE DRAFT REGIONAL ASSEMBLIES BILL

  1.  The TUC represent the interests of nearly seven million working people through 69 affiliated trade unions. The TUC's mission is to be a high profile organisation which campaigns successfully for trade union aims and values, assists trade unions to increase membership and effectiveness, cuts out wasteful rivalry and promotes trade union solidarity.

  2.  We support the Government's approach to tackling disparities between the UK's nations and regions by devolving greater decision-making power, responsibility and resources to the regional level. However, such decentralisation raises important questions over the democratic accountability, oversight and scrutiny of agencies and bodies charged with delivering the governance of regional development. It also raises issues about the staffing arrangements for new and existing bodies within the region or regions concerned.

  3.  TUC policy on elected regional government was agreed at the 2001 Congress. Delegates supported a composite motion calling on the Government to bring forward legislation to introduce elected regional government as a means of tackling the growing democratic deficit at the regional level, and reversing public disengagement from the political process.[37] In May 2002, we welcomed the publication of the White Paper on Regional Governance,[38] and the proposals to create elected regional assemblies in regions where there was sufficient demand for such bodies. The Draft Regional Assemblies Bill[39]brings further clarity to the debate surrounding the functions and responsibilities of elected regional assemblies. The public should have access to clear and accessible information setting out the proposed arrangements for reforming the governance of the English regions.

  4.  The Government indicates that further powers could be devolved to assemblies in time, suggesting that the Government is open to persuasion that additional aspects of public policy could be delivered more effectively at the regional level in the future.

  5.  In our written evidence to the Select Committee we make some general comments before reflecting on the specific responsibilities and powers envisaged in the Draft Bill.

  6.  We welcome the publication of the Draft Regional Assemblies Bill. Since the White Paper, there has been speculation about the proposed powers and functions of elected regional assemblies. The Draft Bill addresses some of the ambiguity surrounding the debate on how a democratic regional institution could add value to delivering more sustainable, equitable and balanced regional economic development. In addition, the Draft Bill re-emphasises the importance attached to democratising the existing tier of regional governance, and providing new space for non-party political and more pluralistic contributions within an emergent regional polity. An elected regional assembly will be judged on whether it heralds a new style of politics. The new body may emerge at a time when there is widespread dissatisfaction among the general public at the traditional party political system. Regional assemblies will have to offer innovative mechanisms for re-connecting with the wider population. The requirements on assemblies to be open and accountable bodies, subject to scrutiny through an annual state of the region report, will deliver greater accessibility and transparency. While it is important that the Government issues guidance to assemblies, we would also encourage assemblies to be innovative and adopt new practices, some of which might reflect the best aspects of UK territorial politics.

  7.  In terms of staffing, transfers and transitional arrangements, any transfer of staff following the creation of an elected regional assembly should be undertaken in full consultation and negotiation with staff and their trade union representatives. The establishment of an assembly will present a major challenge for civil service and other employees. Placing their interests at the heart of any restructuring is more likely to facilitate the successful transition to an elected regional assembly. There has to be consideration for the impact upon staff who transfer to newly created bodies, as well the workload implications for those staff who remain in existing bodies.

  8.  We welcome the commitment to give assemblies general powers to promote the economic, social and environmental well-being of the region. Assemblies will have wide-ranging powers to take such action they consider likely to further to achieve their general purposes.

  9.  Assemblies should champion equality of opportunity in the region, and lead by example. We are pleased that the Government has recognised the success of the equalities duties placed on the Welsh Assembly Government and the Mayor of London and Greater London Authority, and proposes to introduce similar measures for elected regional assemblies. The "legal" duty in Wales has made groundbreaking strides in ensuring that equality of opportunity is addressed in a systematic and integrated fashion.[40] For example, in Wales:

    —  The Assembly has undertaken a comprehensive examination of its policies and practices to assess whether they cause disadvantage to some groups.

    —  Equality reforms have been initiated that would either not have taken place, or would have taken much longer to implement.

    —  Resistance or obstruction to the promotion of equality of opportunity has been overcome.

    —  The Assembly is playing a key role in promoting equality and monitoring progress in the public sector.

  10.  The success of the model in Wales is due to the duty placed on the Welsh Assembly Government to undertake pro-active measures to deliver equality of opportunity in all its structures and activities. We believe that assemblies, in their annual report, should spell out the innovative steps they have taken to promote greater equality. An assembly committee, comprised of elected members and regional stakeholders, could monitor the progress made by an assembly executive. There is also scope for exploring the potential relationship between an assembly and the regional arm of the proposed Commission for Equality and Human Rights (CEHR).[41]

  11.  The Draft Bill recognises that an assembly could play a powerful political leadership role in sustainable development. We welcome the duty on an assembly to develop a scheme setting out how it intends to contribute to the achievement of sustainable development.

  12.  A major responsibility of elected regional assemblies will be to set policy determining regional economic development. The TUC has been at the forefront of calling for the RDAs to be given additional resources, responsibility and flexibility (eg we welcome the measures announced in the 2004 Spending Review, which will see the RDAs assume new powers over rural development and Business Links).

  13.  We note the intention to increase the number of local LSC Board Members appointed by an elected assembly—from the two members to five. This is a welcome step, and should help to integrate further the work of an assembly and the LSC.

  14.  A robust skills policy lies at the heart of modern regional economic development. The regional skills landscape has altered significantly since the White Paper was published. When plans for the RDAs were first muted, the TUC called for the agencies to be given responsibility for producing adult skills strategies.[42] However, the RDAs failed to gain direct control of learning and skills in the regions. The Government has since sought to integrate, where appropriate, the strategies and activities of the RDAs and the Learning and Skills Councils (LSCs). However, the TUC identified an uneven state of skills and learning delivery in the regions, and called for greater clarity to be brought to the clutter of initiatives, programmes and agencies delivering the skills agenda.[43] The Better Regulation Taskforce had also criticised the institutional arrangements for regional economic development as confusing.[44]

  15.  The TUC welcomes the steps taken to address the complexity surrounding regional skills by regionalising the planning and delivery of adult learning and skills under the guise of "New Localism". The Government introduced pilots pooling adult skills and business support budgets in a number of regions. The Government has also listened to proposals for greater regional flexibility by the three northern RDAs, which are developing a joint programme under the auspices of the "Northern Way".

  16.  The 2003 Skills Strategy builds on earlier pilots by introducing new Regional Skills Partnerships. The TUC is playing an active role in the National Skills Alliance and Regional TUCs have been influential agents in the Framework for Regional Employment and Skills Action (FRESA) and are now working closely with the Regional Skills Partnerships. The new regional partnerships should achieve an effective balance between the supply and demand sides of the adult skills spectrum. Raising the demand for learning is crucial to tackling skills deficits at national and regional levels, and requires "buy-in" from both employers and individuals, whose interests should be represented on the Regional Skills Partnerships.

  17.  The new Regional Skills Partnerships need time to bed down. The RDAs are taking a lead role in developing the Partnerships. The proposal that elected assemblies would lead on the working of the Regional Skills Partnerships is a logical step, as RDAs will become accountable to assemblies. The Partnerships need sufficient resources and autonomy to deliver on regional skills priorities. The LSC and Department for Work and Pensions (DWP) provide the bulk of financial support. The Draft Bill states that the Government expects the LSC Regional Director to deploy the LSC adult skills budget in support of the Regional Skills Partnership priorities. We believe there is scope for the relationship between an assembly, RDA and LSC and other partners to be developed further:

    The Government agrees that there needs to be a much closer link between the LSC and RDAs. It will support any region that develops their own mutually acceptable arrangements, in line with the concordat principles, to enable the supply of skills, training and workforce development for adults to be better matched to the needs of the region, within the framework of national targets and priorities set for the LSC and RDAs. The Government will consider favourably proposals for further integration of planning and funding of adult skills and workforce development at the regional level.[45]

  18.  Transport cannot be divorced from the planning, housing and economic development agendas.[46] Effective, integrated and affordable transport networks are vital to delivering genuine sustainable development. The task of delivering the transport agenda is impossibly complex and voluminous to handle solely at the national level.[47] National criteria for transport investment is based on tackling congestion, an important priority in the South East, but less so in regions such as the North East. This militates against directing investment towards schemes more attuned to the needs of differing regions. This obstacle has been noted by the Treasury in its response to statements submitted by the regions in advance of the 2004 Spending Review:

    Several regions commented that the Department for Transport PSA1 (congestion) should be modified to recognise the differing impact of congestion in different regions.[48]

  19.  Whilst some aspects of devolving powers are welcome, there needs to be a note of caution. It is important that funding decisions are based on robust evidence and on the right balance locally between forms of public transport. We would want to avoid the danger of fragmentation of rail services and of their permanent removal on cost grounds.

  20.  In the aftermath of the Devolving Decision Making Review, the Government has begun to recognise the significance of delivering greater decentralisation of transport responsibility to regional and local levels. In some regions pilot Regional Advisory Transport Boards have been established to evaluate how spending priorities can fit with the needs of individual regions. In the recent Department for Transport (DfT) White Paper, the Government indicated that:

    We will improve the current arrangements for making decisions on transport. Central to this will be giving regional and local bodies more influence to ensure that transport services can be tailored to local needs and preferences. Currently their influence is largely limited to investments by local authorities. This will be progressively extended, initially to regional priorities for some strategic road schemes, and potentially to decisions on regional railways.[49]

  21.  We welcome the proposal that elected regional assemblies should work closely with regional stakeholders. We have suggested that the proposals to introduce regional assemblies should not diminish from the existing influence and engagement of regional stakeholders. Stakeholders have made valuable contributions to shaping and delivering regional strategies, and they should have an enhanced role in the new regional structures that goes beyond mere consultation. We believe stakeholders should play a role in the development, implementation and scrutiny of policy, and we welcome the indications that stakeholders would undertake such functions.

  22.  The Draft Bill proposes that an assembly must make arrangements to encourage and facilitate the participation of persons and organisations, including "representatives of persons employed in the region". We believe the Government is right to highlight certain stakeholders with large constituencies, such as trade unions. In fact, we have called for this right to be enshrined in statute similar to provisions laid down in the Government of Wales Act 1998. The Government has been anxious not to be seen as too prescriptive, inviting comments and views on how it should proceed in this area. We appreciate the challenge of striking an appropriate balance between national regulation and regional devolution. The Draft Bill suggests that assemblies themselves will determine when it is appropriate to engage with stakeholders. A much firmer commitment is needed that assemblies will have to engage with "assembly participants". The precise mechanism for delivering such engagement could be left to the assemblies themselves, but we would be concerned if assemblies could pick and choose which stakeholders to form a relationship with. The proposed statutory guidance about assemblies' duties on stakeholder engagement may fill some of the gaps in this area. We look forward to commenting on the text in due course.

  23.  Capacity building amongst stakeholders will be crucial. An assembly should set aside a specific resource to develop the capacity of stakeholders. Individuals who play a role within the assembly should also have a right to paid time off for public duties. If we are to encourage new ideas, interests and participants, then the process of stakeholder engagement should not be left simply to a professional service class.




37   TUC (2001) Congress Decisions 2001, London, Trades Union Congress. Back

38   Cabinet Office/DTLR (2002) Your Region, Your Choice, Norwich, The Stationery Office. Back

39   ODPM (2004) Draft Regional Assemblies Bill, Norwich, The Stationery Office. Back

40   Chaney P and Fevre, R (2002) An Absolute Duty: Equal Opportunities and the National Assembly for Wales, Cardiff, Institute of Welsh Affairs. Back

41   DTI (2004) Fairness for All: A New Commission for Equality and Human Rights, Norwich, The Stationery Office. Back

42   TUC (1997) Regional Development Agencies: TUC Submission, London, Trades Union Congress. Back

43   TUC (2002) Half the World Away, London, Trades Union Congress. Back

44   Better Regulation TaskForce (2002) Local Delivery of Central PolicyBack

45   HM Treasury (2004) 2004 Spending Review: Meeting Regional Priorities: Response to the Regional Emphasis Documents, London, HM Treasury (paragraph 4.34). Back

46   Humphrey, L, Pike, A and Pinkney, E (2004) Making a Difference? A Policy Assessment of Elected Regional Assemblies in the English Regions, CURDS/Regional Studies Association. Back

47   Adams, J and Tomaney, J (2002) Restoring the Balance: Strengthening the Government's Proposals for Elected Regional Assemblies, London, IPPR. Back

48   HM Treasury (2004) 2004 Spending Review: Meeting Regional Priorities: Response to the Regional Emphasis Documents, London, HM Treasury (paragraph 4.24). Back

49   DfT (2004) The Future of Transport, Norwich, Department for Transport (paragraph 9.4).


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