Select Committee on Scottish Affairs Minutes of Evidence


Examination of Witnesses (Questions 780 - 799)

MONDAY 26 NOVEMBER 2007

COUNCILLOR HARRY MCGUIGAN, MR JON HARRIS, MR RICHARD CAIRNS, MR BRIAN BARKER, MR JIM MCCROSSAN AND MR MATTHEW CRIGHTON

  Q780  David Mundell: What I was getting at is how can COSLA and local government in Scotland influence the UK Government, because there is a suggestion that what is needed is a tripartite relationship, it is the coming together of local government, the devolved government and the UK Government, but I do not see the mechanisms to do that.

  Councillor McGuigan: I will ask Jon to come in but more regular meetings of this type, a more regular review of issues like this I think help us to be able to communicate that via yourself to the UK Parliament.

  Q781  Mr Devine: Would you like a formal structure, Harry?

  Councillor McGuigan: Yes, I would certainly like to see something more formal than the kind of random thing that happens.

  Q782  David Mundell: It seems to me, without diverging off the point, that it is essential there is some form of conduit from Scottish local government to the UK Government that is not just about going through the Scottish Parliament system.

  Mr Harris: I think one of the issues we would have liked to extend is the idea of a memorandum of understanding to cover joint work between the local government and the Scottish Government, particularly in relation to community planning partnerships. We have some very, very good relationships with parts of the DWP and one-stop shops in Scotland, but our engagement with the Whitehall department is less effective. We did have a Scottish committee which was hosted by the DWP some time ago which was local government, the voluntary sector and so forth but that was abolished. They did a survey of people who said, "Was it a good idea or not?" All the people in Scotland said it was a good idea, but all the people from the DWP felt it was not.

  Q783  Mr Devine: We will ask that question tomorrow.

  Mr Harris: We have had a recent meeting with the DWP. They are going to launch a consultation paper on supported employment in December and they made that effort to come up to Edinburgh and meet us. To me, that is how it should be, but it has been rather hit and miss. Whilst there are some very good local relationships, we would like to still see some link in with the DWP nationally. There is still a group that exists which liaises with local government, but the local government representation on that tends to be the local government association in London and it is a bit inaccessible if you have to go to London. It is expensive for us, but it is even more expensive if you are a voluntary sector body.

  Mr Crighton: If I could add on that point, I have been going to quite a few meetings in England with DWP officials and it is apparent to me that, on the whole, people in England do not understand how distinctive the arrangements for Scottish local government in the Scottish Government are. I think there is a danger that they will think about how they roll out their programmes across the UK without taking into account the distinctiveness of the Scottish arrangements, for example the arrangements under which targets are set for local government. For some years now in England there have been the local area agreements under which local authorities have had a direct negotiating arrangement with central government departments, including the DWP, which is not obviously something that has been rolled out here. I am certainly very conscious that dialogue with DWP officials was quite common to folk in England, but at a local level in Scotland we were not ever encountering that. From my point of view and from Richard's point of view, with being part of the Pathfinder for DWP that has changed, but for most local authorities in Scotland it is a very remote relationship that exists at all, or access through Jon at COSLA.

  Mr Cairns: Could I make two very small points in relation to that. The first is that a lot of the tools and levers that are available to address poverty are reserved matters and the clue is in the word "reserved". As a consequence of that, there is not the same sense of a role to be played by local authorities and particularly Scottish local authorities in some of these things. I suspect that is more of an unconscious thing, I do not think it is an overt thing. Also, if I pick up Matthew's point, if the DWP looks at the areas where benefits claimants are highest and finds that is cities, as it did, and it therefore concludes that there should be particular strategies to address this in cities and then concludes because of that, the larger cities in Scotland should be part of this, if you follow the same thought process through logically, then it follows that if you wish to combat poverty, the involvement of the organisations seeking to address poverty should be sought regardless of the scale and the concentration. The principle of City Strategies, whilst it is valid in one sense for dealing with particularly high levels of concentration, the principle of involvement of those we are trying to deal with should hold true regardless of the concentration. The thinking has been right, I would argue it has not gone as far as it might.

  Mr McCrossan: Just really implicitly on what Richard was saying, there are issues about diversity again in Scotland. We have got probably the worst urban deprivation, but we are also the most rural part of the United Kingdom. Certainly in rural areas where I am working we do have issues about identification and measurement of poverty and deprivation, where the main instrument is the Scottish Index of Multiple Deprivation which is really designed to pick up concentrations, so we work on the basis of the worst 15%. We have that kind of deprivation within Argyll and Bute as well, but it is on a very small scale in the towns, it is really peripheral housing schemes; it is urban deprivation in miniature. But we also have remote fragile communities that are not getting picked up in these measures at all. We also have quite a lot of poverty outside these areas. Income deprived in Argyll and Bute, there are 20% in these recognised areas of deprivation and 80% outwith there. We need to take an approach that does look at the small area deprivation because it is still there, looks at the fragile communities but also looks at a more thematic approach that is going to pick up individual groups with difficulties, whether it is mental health, health difficulties or homeless young people. It is not a one size fits all and I think that is a characteristic of Scotland. We are really saying the issues are more diverse.

  Q784  Chairman: Since many issues relating to poverty are linked with the British Parliament, do you think after the establishment of the Scottish Parliament the link between Scottish local government and the British Government has weakened? How can we strengthen it?

  Councillor McGuigan: I do not know if it is weakened. In my own experience there has been a fairly strong contact between the politicians at Westminster and the politicians in my own area. I think it can always be improved and it is important that kind of dialogue takes place in the local areas, constituencies, local authority areas and so on, but in terms of dealing with some of the big national agencies it is extremely difficult, I think, for local authorities here in Scotland to feel confident that they are being treated as mature partners to any kind of protocols. That is certainly my reading of it.

  Mr Harris: I used to look after all the parliamentary business before devolution so I was quite often down in London two, three days a week. I now go down to London maybe once a year. As soon as devolution came there was an element where you got invited to a meeting, but you could only attend a pre-meeting and then you flew back home.

  Q785  Chairman: There has been a gap.

  Mr Harris: There has been a gap and I think we need to work at how we can meet that and, in part, it is structures and that comes to the idea of extending the memorandum of understanding. You are key partners to help us deliver on poverty, just as it would be in terms of your relationship with Wales or the North of England.

  Q786  David Mundell: That is right. To me, Scottish local government is a separate entity, it is not a subgroup of the Scottish Parliament, if I can put it that way. You cannot have a tripartite relationship with only two legs on the stool and to expect everything from Scottish local government to be channelled to the UK Government through the Scottish Government is not the way forward, I do not think.

  Mr Barker: I am not sure whether there is a factor in here in terms of the number of local authorities in Scotland dealing with these issues and the number of local authorities in England, in that you have a much smaller proportion of local authorities which deal with some benefits-type arrangements when you are looking at the proportion of the population. I am not sure whether there is a disproportionate view from the DWP that it is 32 local authorities out of several hundred, but actually it is 10% of the UK population, and whether there is a factor there that is influencing the way that relationship works.

  Councillor McGuigan: Could I say to you, I think you are absolutely right there does have to be realisation among the collectives of local authorities that they are not simply involved in a business of dealing with one particular other unit of that tripartite, there has to be a realisation that their relationship with Westminster, the UK Government, has got to continue to grow and to strengthen the opportunities for local government working with the Scottish Parliament to effectively tackle it. I think you will have an interest in making sure and overseeing just how well we are impacting upon areas like poverty, are we achieving the outcomes that we agreed.

  Q787  David Mundell: Could I turn now to some of the evidence COSLA provided to the Committee in which it was suggested that a more localised approach to tax credits and benefits would be desirable. I wonder if anyone is able to give us an example of how that might reduce poverty.

  Mr Crighton: The aspiration with which we set off within Edinburgh when we set up our strategy, Joined Up for Jobs, was that in looking at the resources needed to help the harder to help people into work, if we could demonstrate a reduction in the benefits claim in our city, we would be able to draw on some of the resources saved by reducing the benefits bill in order to re-invest back into the systems which train people and upskill them. That was an aspiration we put to the DWP quite a few years ago, I think it was in 2004, and that was also the aspiration we took into the City Strategy Pathfinder. It is seen in the employment zones, which is an experimental process, whereby what you call the "programme money" which goes to people is bundled up and available to help them into work. That is what we have put forward in our bid to be a Pathfinder as what they call "an enabling measure". It has not actually come to fruition yet, but essentially, as part of that request, which is that the locality sorts out its plans and draws to it the resources available to help people into work, we were saying, "Include the savings we can make on the benefits bill so that we can invest at least a share of that into helping more people into work". That was the aspiration and the Department for Work and Pensions, shall we say, are still considering part of that request because I think it is one of the ones they find hardest to deal with, primarily because it is not entirely within their gift. It would have to be within the gift of the Treasury as well as the DWP to say that you can mix those funding streams.

  Q788  David Mundell: You are confident that could genuinely be done more efficiently and would not end up costing more?

  Mr Crighton: I think it is a very good challenge. A locality would not obviously be able to claim any increased use of those resources if it was not generating the benefit which would come from more people being in work, but I do think we were modelling that on the Government's own experiment within the employment zones which had this idea of a personal job account for the individual that did demonstrate you can get higher returns of people into work by a more flexible approach. The aspiration is that could be routinely rolled out to increase the amount of resources which can be managed locally and helping primarily the hardest to help groups of people back into work.

  Q789  David Mundell: Obviously there is a group of people, primarily often asylum seekers or refugees, who are not entitled to benefits. How are local authorities managing that issue?

  Mr Cairns: I think there are two elements to this. There are something between 5,000 and 6,000 asylum seekers in Glasgow at any given time. The first point I would make categorically is that the issue around whether or not somebody is given refugee status is a matter for the Home Office, it is not a matter for local authorities and it is important that is quite clear in everyone's mind. The challenge for the local authorities, though, as with so many other things, is that this problem then manifests itself locally. The problem of asylum seekers manifests itself very locally, in Glasgow it manifests itself in a very small part of the city. Even when people have got leave to remain and have refugee status, then the problem manifests itself in very particular pockets in the city. There are certain challenges for local authorities around responding to that and, in effect, responding to a problem—"problem" is possibly unfair—responding to a situation where they do not control the mechanisms and the decisions of the Home Office. Once you get beyond that, you then have to recognise, as local authorities do, that the circumstances of asylum seekers are difficult for a whole range of reasons, typically because they cannot access the same range of benefits and they are harder to provide services to in the first instance. From that to people who have refugee status who have a different but equally challenging set of problems around their access to housing, access to the labour market, the accreditation of which skills and experience or qualifications they might have accrued in their country of origin, all of which we somehow have to take into account if these people are going to be assimilated into the labour market and into their communities. The best way to explain this is the numerical scale of this problem compared with the overall poverty issue is relatively small; the complexity and the intractability of it is far in excess of that number and, therefore, we have to find better ways of dealing with it. I suppose the last point I would make also is that you will know that it brings with it a whole range of emotive and not terribly well thought through reactions that also have to be addressed and, again, they manifest themselves locally.

  Q790  Mr Devine: On that point, the point was made earlier on about the need for a direct link with the DWP and such like. Do you think a council like Glasgow needs a direct link with the Home Office or do you have that?

  Mr Cairns: I believe we do have it. I would have to check, though, to be honest, because it is one of the areas of responsibility that is not directly mine. I am attempting to answer for, as Mr Sarwar knows, a rather large local authority.

  Q791  Mr Devine: He tells us it is the best.

  Mr Cairns: He is right of course. We do have a direct link to the Home Office, but whether or not that link, as Jon probably wants to say, works as effectively in allowing us to manage some of the knock-on issues is another question.

  Mr Harris: Having been on various groups involving all the regions in the United Kingdom on this, my judgment is we probably work better than most in terms of our strategic migration partnership, but there are huge issues in terms of joining up the funding, for example there is funding made available to the police authorities in England and to local authorities to build cohesion which we do not as yet have access to, so there are issues there but in terms of a working relationship, it is probably better than most.

  Q792  Chairman: On these asylum issues, obviously we recognise the importance of this and the difficulties, local government and the Home Office, at least we are making an effort to resolve these issues, but there are people in Glasgow, for example in my constituency, who are Poles and Slovakians and they do not have any benefits like the asylum seekers have, benefits in housing, they do not have the capacity to get a job and they are living in overcrowded houses there. I know as a matter of fact that in two-bedroom flats there are eight to 10 people living in my constituency. How are we going to tackle that?

  Mr Cairns: How are we going to tackle it?

  Q793  Chairman: They cannot speak English as well, it is very difficult for us even to communicate with them. This is the first time I have in my time in Westminster in my constituency that white community members and Asians are ganging up together against Poles and Slovakians. It is very unfortunate, but the issue is there.

  Mr Cairns: The issue is there. The issue manifests itself in MPs' surgeries, MSPs' surgeries and the surgeries of locally elected members, that is where these things are brought to a head in the first instance. We have also got to grasp the reality of this, which is that economic migration is a fact. The UK is probably the most open labour market in Europe, if not in the world, certainly one of the most open labour markets, and because we are experiencing economic growth we will inevitably attract labour. From one perspective that is not necessarily a bad thing. If you take the houses of multi-occupancy question, for instance, again I would not profess to be an expert, but the business of attempting to regulate this rests with the local authority and the finances available to help address it rests with the local authority. There is inevitably a challenge between addressing the needs of that group of people and the fact that across the entire country there is probably a deficit in social housing generally. You can see how we are constantly trying to juggle these different forces at the same time.

  Mr Harris: I think in terms of the migrants, as was said, they are mainly economically active individuals who either come on their own or without children, therefore the impact is generally overall positive. There are issues in terms of exploitation because of the wages and the amount of access to affordable housing, but these things have to be put in the context that overall, from a Scottish perspective, we are looking to build our population, particularly in terms of people who are economically active. I think there are possibly issues that we need to consider in the longer term and how we assimilate because if I was looking at the impact, there are certain concentrations where the impact on public services is quite significant. It is not just in the cities, in particular Edinburgh and Glasgow, but even in our rural communities you can suddenly get a situation where the number of languages in a primary school has increased from maybe two to six. I know in one school in Edinburgh in one school year the number of languages they were dealing with increased from two to ten. It does have an impact in terms of how you deal with that upfront and I do not think we have always got that done as we should.

  Mr McCrossan: On rural areas, to reinforce that point, I think it is generally seen as a positive because there are economic issues and particularly in the building trade and hospitality—it is difficult to get the statistics—there has been a huge influx, probably much more so in rural areas than people realise. There are issues beginning to emerge. Ultimately, there is an issue about cohesion because the pattern does appear to be people come expecting not to stay long and then change their minds. That is already emerging as a trend, that the majority saw themselves coming on a temporary basis and a much higher proportion than that are now beginning to stay longer. We have seen in the initial stages in things like English as a second language, a huge rise in demand but also it is manifesting itself in schools in terms of children coming in with different languages and fairly inadequate additional support for that. In the longer term I think it is a real cohesion issue and we have to start thinking about that now and have a much more highly developed strategy than we have got.

  Q794  Mr Devine: The Government has got a laudable aim of eradicating child poverty by 2020 and in Scotland the 2005 target was actually met. I am just wondering what specific role local authorities see in targeting child poverty and what assistance the Westminster Government can be to any strategies that you are running?

  Councillor McGuigan: I think there is a number of issues there. They have met the target and the target that is now being aimed at is a very admirable and proper one. I think what local authorities will have to continue to do is to look in a number of areas. Education is an absolutely key area where we have to see young people succeeding as far as their attainment is concerned. If you take standard grades here in Scotland, there has been almost a continuous improvement over the last ten years, but if you take the bottom fifth among those, then their position has not changed at all over the last ten years and that is a very worrying thing. There are things there that local authorities have to be looking at much more seriously to find out why it is that they are unable to make a difference at that particular cohort. Housing is another area where we have a major problem as far as socially rented housing is concerned. We have overcrowding in some of these houses and that, again, disadvantages young people, that exacerbates child poverty. Those are certainly areas that I think local authorities have to ensure they are working determinedly to improve the situation there.

  Q795  Mr Devine: What do you think of the Government's strategy of basically saying people stay on in school until they are 18—there is an increase in apprenticeships; unless they have gone for apprenticeships—exactly what you are talking about? India is producing more graduates a year than the whole of Europe put together and China is clearly going to be a big player in the world economy in the next five or ten years. I am just wondering what we need to do in education and do you agree with the Government's strategy in that direction?

  Councillor McGuigan: I do not think we should be afraid of requiring young people to give a commitment to the role they play within our society and if that means they can best be equipped to play that role by staying on at college or school or participating in training, then that is absolutely necessary, and I think it is quite right and correct. It is not unusual, this happens right across Europe, Germany is an example of that. We have to be careful, though, that we do not become obsessed with a paper chase that has been going on in this country for maybe the last 25 years, that the qualifications that you got was more important to get into university to pursue a degree. We forgot that we need people who have other skills and other competencies and I hope that we will start to give a shift of emphasis to that. That is not in any way to put a lid on people's aspirations to achieve their maximum potential educationally, but it is also to applaud and recognise that there are people, perhaps, who are not going to be academically the most gifted and talented people but they are absolutely necessary for a successful economy. Those are areas that I think we have to be looking at.

  Mr Cairns: Could I pick up a number of points in relation that. Others might disagree again, it is not whether or not people stay on in education at 24 or 18, it is what they do while they are there that matters. The key to getting people out of poverty in most cases is for them to be in well remunerated work. If you look at the future labour market demand statistics, again I have Glasgow level figures—the Scotland level figures would probably not be much different—at the moment in a city like Glasgow the percentage of jobs requiring no qualifications whatsoever, zero skilled jobs, is 20 plus per cent in the current labour force. Within ten years, the percentage of labour force requiring zero qualifications will fall to 9%. There are two things that follow from that. One is unless a good percentage of those people acquire qualifications, then they will either not work or be trapped in very low skilled jobs. The consequence of that would be higher poverty and the more chilling consequence, if we do not do this, is that we will not provide the labour to meet demand in terms of skills, therefore the country will not be competitive and therefore the general situation of more of us will become poorer. You asked a couple of questions on lone parents, I want to try and zero in very quickly on child poverty. You asked questions about child poverty. One of the problems about child poverty is that it tends to manifest itself to a greater extent among single-parent families and, again, the most preferential route out of poverty for those people is well remunerated work, not just any work but well remunerated work. That requires that people again can acquire the skills to do that and they can access provision to child or dependant care in the right places at the right time and at the right price, because if you can do those things and you make it possible for somebody to work and also make it possible for them to acquire skills, if you have sufficient flexibility around the benefits system to allow people to do that, they will acquire skills which will allow them to progress in the labour market. That moves the whole economy up the value chain and will lift families and children out of poverty. It sounds glib, but it really is that fundamentally simple.

  Mr Crighton: Could I add one point to something which you were saying there. This information you gave about the changing demand for skills and the number of people who have not got skills in the labour market, to reinforce that, I think the research shows that for quite a lot of young people whose parents have not got any skills either, they continue to aspire to the same kinds of jobs that their parents are either doing or have done. Certainly in Edinburgh we are seeing the vanishing of the manufacturing industry but, just like in Glasgow, the number of jobs where you do not need skills and qualifications is contracting but there is a layer of people who still aspire to a manual and unskilled job. I think there is a lot to be done in schools to connect to the actual labour market and to change the aspirations. It is not just to say, "There won't be that kind of job for you, I'm afraid", but, "You are quite capable of doing this new kind of job". It means that we follow that through in a way you build up people's aspirations and help them think that a job in a shop or a hotel is not a thing which your dad would not have done it, so "I'm not going to do it". I believe there is a lot to be done within the schools, particularly in secondary school, about building up vocational options which allow people to embrace those opportunities.

  Q796  Mr Devine: Jim, you seemed hell bent earlier on that there should be a different approach in urban areas to the rural communities. Would that apply as well to tackling strategies in child poverty?

  Mr McCrossan: In a sense, I mentioned earlier, for instance, that even though we have identified areas of deprivation, the worst 15%, we have 80% of income-deprived people living outwith those areas so it is just more complex to target that. What we find, though, that has worked, and this has been a theme through the session today, is partnership, working between agencies with child poverty or issues which I am more directly concerned with literacy and numeracy. There is rarely one problem operating in isolation, so that is often the key to taking a more holistic approach, probably even more so in a rural area where you are working less with spatial concentrations.

  Q797  Mr Devine: Again, is it fair to say that here is the Government with its target of reducing child poverty by 2020 up there and in your areas that you are talking about, like the rural areas, Argyll and Clyde, do you feel the Government are there at that level? Obviously health is there, local authorities are there, various others, but are we there?

  Mr McCrossan: I think the links are more tenuous, and this has been touched upon earlier. It is in relation to reserved matters, but the key ones, these ones we are talking about, those are not. It is not across the board or a generalised problem, I think it is quite a specific problem in these key areas.

  Q798  Chairman: Do you agree that in urban areas poverty is visible? If you go and see housing conditions, graffiti and other things, you can say, "Right, this is a poverty-stricken area", but when you visit rural areas it seems to be nice. When I go for a holiday or a day out to Inverness, I never feel that the poverty issue does exist there because it seems to be nice, reasonable houses, but when they want to buy a loaf of bread or pint of milk they do not have the transport, and if they have a car, fuel is very expensive. How can we deal with that issue?

  Mr McCrossan: It is really based on what I am saying. They used to say you cannot eat the scenery and, in actual fact, a lot of it goes to conceal the problems because you can have—and we touched upon this earlier—communities where there is affluence and poverty side by side in rural areas and it is less visible and people are often less willing to identify themselves in that category too. There is not a simple solution. As I said before, what we have found that works is working more closely with our partners who deal with different aspects of the problem and that is really the only way forward in terms of identification and supporting people.

  Q799  Chairman: Something which was really worrying after taking evidence in Inverness was they do not have any data or information on what percentage of people and who are the people living in poverty in those areas.

  Mr McCrossan: There is some. As I mentioned earlier, 80% of income deprived people in Argyll and Bute are outwith the recognised areas of deprivation, which are quite small anyway. The Scottish average is, I think, 64%, so there is a problem of visibility but it is about targeting particular themes. As I said before, you find looking at people's literacy problems, not always but they may well have drug issues, mental health problems, whatever, so we have to work with colleagues who are working with people with a range of problems because you find it is often the same people and that is the way to identify, locate and target the work.


 
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