126. Memorandum submitted by Sandwell
Metropolitan Borough Council
The Local Authority are classed as a Corporation
and therefore fall within the remit of the offence.
Could the Bill/Explanatory Notes clarify the
position regarding Councillors? You will be aware that the day-to-day
functions of the Local Authority are exercised by Local Authority
Officers but that policy to a certain extent is approved by Councillors.
The current definition of a Senior Manager is somebody who plays
a significant role in the making of decisions about how the whole
or a substantial part of an organisation's activities are to be
managed or organised. It is often the case that reports are put
before Councillors on behalf of various departments within the
Local Authority. Those Councillors would effectively make decisions
based upon the content of those reports. Would a Local Authority
Councillor in the above situation be classed as a Senior Manager?
Clearly the Local Authority would have a duty of care to for instance,
employees, children and service users. Decisions taken by Councillors
would potentially affect those groups.
The second issue is that relating to the definition
of an organisation's "activities". It has become the
norm for local authorities in recent years for various reasons
to press ahead with "Arm's Length Management Organisations".
The former Housing Department within Sandwell is now referred
to as "Sandwell Homes" which is an Arm's Length Management
Organisation. Sandwell Homes is a limited company in its own right
but is also a Local Authority controlled company. There is, of
course, a relationship between Sandwell Homes and the Local Authority
who retain ownership of the housing stock. Could the Government
please clarify as to the respective liabilities of the Local Authority
and an Arm's Length Management Organisation should for instance,
an employee or service user die as a result of a gross breach
of a relevant duty of care by a Senior Manager of the Arm's Length
Management Organisation.
8 September 2005
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