Conclusions and recommendations
Unfair competition?
1. Very
scant evidence has been presented to this inquiry, and to previous
inquiries, which would sustain the claim that local authority
publications have contributed significantly to the decline of
local newspaper advertising revenues or sales. There do appear
to be isolated examples of where there may be a local relationship
between the development of a local authority publication and the
decline of a commercial publication, but these examples are extremely
limited. There is no evidence of a widespread problem of unfair
competition on this basis. (Paragraph 44)
2. However, there
is a clear concern that some local authorities are using council
taxpayers' money to promote their local politicians or policies.
While there is clearly a case for individual politicians and
parties to state their position on particular issues, this should
be at their own expense. It is appropriate that the proposed
Code should prevent such activities being undertaken at taxpayers'
expense. (Paragraph 45)
Localism
3. We
are satisfied that it is appropriate to produce a Code to regulate
the production of local authority publicity. However, we are
concerned that some of the changes proposed in the revised Code
of Recommended Practice on Local Authority Publicity run counter
to 'localist' principles and have potentially negative implications
for local democracy. (Paragraph 53)
Frequency
4. We
consider the issue of "propaganda" to be dealt with
adequately by the provisions in the proposed Code relating to
format and content. The evidence suggests that a local authority's
need to communicate information to residents is commonly satisfied
by no more than quarterly publication. We have doubts, however,
about the need to specify a maximum frequency of publication within
the Code and question whether such a prescription sits well alongside
a strong commitment to localism. We would nevertheless expect
councils to abide by the principles of cost-effectiveness contained
within the Code. (Paragraph 58)
Statutory notices
5. We
consider it unsatisfactory that local authorities should feel
compelled to produce fortnightly newssheets simply to meet the
demands of statutory notice requirements. We recommend that the
Government review the publication requirements for statutory notices,
with a view to making them more cost-effective and better able
to take advantage of new means of publication such as the Internet.
(Paragraph 66)
Lobbying
6. We
are persuaded that the issue of the use of public money on political
lobbying is an important one which central government needs to
address. However, we are not persuaded that a code of practice
on local authority publicity is the correct tool by which to apply
constraints upon such activity. It is far from clear that the
powers under which the Secretary of State may promulgate the code
are sufficient to bring this issue with its remit; such a measure
may therefore prove ineffective. (Paragraph 73)
7. Nonetheless, we
agree with the Minister that the hiring of political lobbyists
by local authority to contact Ministers and Members of Parliament
is a waste of public money (Paragraph 74)
8. We recommend that
the Government work with representative organisations for all
tiers of local government, with UKPAC and with the Chartered Institute
of Public Relations Local Public Services Group to develop a Code
of Practice for local authorities on the use of lobbyists. Such
a Code should ensure close adherence to best practice and detailed
attention to cost effectiveness by all councils. (Paragraph 75)
9. We also consider
that any future code of practice addressing the use of 'lobbyists'
will need to clarify more precisely than current proposals where
the use of consultants to give appropriate short term expert advice
(or the employment of short term contractors to fill key technical
or professional vacancies) will remain a legitimate course of
action for a local authority. This code should also specify that
the cost of hiring any such expertise be published, clearly identified,
so that councillors and local electors can make a clear choice
about whether such expenditure represents good value for money.
(Paragraph 76)
Conclusions
10. If
the Secretary of State continues to believe that publication of
any local authority newssheet more frequently than quarterly poses
a significant threat to the local press, a much stronger evidence
base is required to justify the inclusion of any such restriction
in the proposed Code. Although the evidence suggests that a quarterly,
or less frequent, publication will usually be sufficient to meet
a local authority's need to communicate with residents, we doubt
that it is necessary to specify a maximum frequency of publication
within the Code. Before setting any replacement for the existing
codes before Parliament, we recommend that the Secretary of State
follow through a recommendation made by the Culture, Media and
Sport Committee in the last Parliament. That is, that he commission
an independent review to assess competition in the local media
market and quantify the impact of council publications on commercial
entities operating in their locale. (Paragraph 80)
11. To prevent the
excesses described by the Minister whilst allowing sufficient
freedom to local authorities to hire in relevant specialist expertise
when necessary, we suggest a better approach would entail work
by the Government with representative organisations for all tiers
of local government, with UKPAC and with the Chartered Institute
of Public Relations Local Public Services Group to develop a new
code of practice to more tightly govern the use of lobbyists by
councils. (Paragraph 85)
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