Supplementary memorandum from East Midlands
Regional Assembly (EMRA) (EM 37)
"PLUGGING THE
REGIONAL ACCOUNTABILITY
GAP"—A FURTHER
NOTE ON
REGIONAL SCRUTINY
AND ACCOUNTABILITY
AS REQUESTED
BY THE
EAST MIDLANDS
SELECT COMMITTEE
ON 22 MAY
2009[49]
1. The Regional Accountability Gap
1.1 Publicly funded regional bodies, with executive
powers, require strong public accountability through their elected
representatives.
1.2 The new East Midlands Select Committee has the
potential to provide high profile, strategic accountability for
our regional organisations. However, the loss of a dedicated regional
scrutiny body, comprising of Local Authority members and regional
stakeholders, takes away the opportunity for an in-depth examination
into the key aspects of these regional agencies work in the East
Midlands. This lack of in-depth scrutiny into their performance
will lead to a significant accountability gap, which is a recognised
by the BERR Select Committee.[50]
1.3 In November 2009, HM Government stated that Regional
Select Committees and Grand Committees would be able to carry
out all the necessary scrutiny of the new regional governance
arrangements, as well as regional strategy development and implementation,
however this would be "subject to the views of the Committees
themselves".[51]
1.4 Subject to the agreement of our Local Authorities,
and sufficient resources being made available, there is the potential
for East Midlands Councils (the body established to represent
Local Government in the East Midlands), to play a leading role
in plugging this accountability gap. This would require:
(a) A formal agreement from Local Authorities
to establish an appropriate mechanism.
East Midlands Councils are yet to formally agree
their structures and functions, including any potential scrutiny
role.
(b) Clarification of powers
Joint Local Authority regional scrutiny committees
are permissible under Clause 31 of the Draft Local Democracy Economic
Development and Construction Bill. It is worth noting that powers
do currently exist under the Power of Wellbeing.[52]
How or whether an RDA or other regional bodies
would be expected to respond to a joint committee would need to
be addressed in regulations and guidance. New powers would need
to be at least as strong as those currently available to Assemblies
under the Regional Development Agencies Act (1998).
It is not yet clear whether HM Government would
expect joint regional scrutiny committees to be established or
whether funding of these committees would be through the grant
settlement to joint Local Authority structures.
None of the above factors are yet in place.
2. How Future Regional Scrutiny might work
2.1 A viable model should be based on:
Learning from Regional Assembly Scrutiny
2.2 Regional Assemblies and Local Authorities
have a wealth of experience to inform the development of any new
arrangements. A recently commissioned independent review of the
scrutiny work of EMRA, concluded that our regional scrutiny activity
had provided a valuable service to the region, operating in what
was described as a difficult environment. The report highlighted
many elements of good practice, including the constructive approach
taken by officers and members through the "no surprises"
and "critical friend" principles, the blend of councillors
and stakeholders, and the value of the Regional Scrutiny Protocol.
The attached report also identifies a number of "critical
success factors".
Function, Powers and Focus of Regional Scrutiny
2.3 The key function of any form of Regional
Scrutiny should be to ensure that publicly funded regional organisations
(not just emda) are held account for their decisions. This
must be done through our democratically elected representatives,
underpinned by clarity from HM Government on the powers to effectively
carry out this important role.
2.4 Whether regional scrutiny focuses solely
on the work of the Regional Development Agency or looks at the
executive actions of other regional organisations, such as the
Strategic Health Authority, would be for each region to decide.
In the East Midlands, the Strategic Health Authority has actively
sought regional scrutiny from Local Authorities as they see a
real benefit from such activity.
2.5 Local Authority led regional scrutiny could
potentially minimise the burden on regional bodies of responding
to multiple scrutiny reviews from individual councils; and the
burden on individual local councils of scrutinising complex regional
issues and organisations, with larger operational geographies.
Democratically led by Local Government
2.6 Local Government members can provide the
democratic accountability that regional scrutiny needs. To deliver
an effective scrutiny function, local authorities will need to
establish a joint committee to manage the process.
Executive/Non-Executive Split
2.7 The scrutiny of emda and/or other
publicly funded regional organisations should not be undertaken
by elected members or stakeholders with an executive role in that
organisation
Engagement of stakeholders
2.8 If "ownership" of scrutiny is
to rest with a regional partnership of Local Authorities, full
consideration should be given to the involvement of stakeholders,
who often have expertise in the areas under examination. The blend
of local government members and relevant stakeholders on the current
Regional Scrutiny Board has provided a rich mix of democratic
accountability, skills, experience and expertise.
Relationship with Parliamentary Scrutiny
2.9 Parliamentary and Regional Assembly scrutiny
play complementary roles. To avoid duplication, it will be important
to build on the current liaison between Parliamentary Regional
Select Committees and any joint Local Authority scrutiny committees.
A Regional Scrutiny "Governing Document"
or "Protocol"
2.10 A "Governing Document" or "Protocol",
developed and agreed within the Region, that clarifies the principles,
purpose and operation of regional scrutiny, its relationship with
Parliamentary scrutiny and how organisations should respond to
it, would ensure that it is efficient, effective, co-ordinated,
proportionate and understood.
49 These proposals are not currently part of the
regional governance structure and have not been formally discussed
with or endorsed by Local Authority partners. Back
50
Paragraph 119, p36, Regional development agencies and the Local
Democracy, Economic Development and Construction Bill, House of
Commons Business and Enterprise Committee. March 2009. Back
51
Paragraph 2.48, p20, Government response to Prosperous Places:
Taking forward the Review of Sub-National Economic Development
and Regeneration, November 2008. Back
52
Section 2 of the Local Government Act 2000 allows principal
Local Authorities in England and Wales to do anything they consider
likely to promote the economic, social and environmental well-being
of their area unless explicitly prohibited elsewhere in legislation. Back
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