Written Statement by the Welsh Assembly Government

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    WRITTEN STATEMENT BY THE

    WELSH ASSEMBLY GOVERNMENT

    Title: Collaboration between Anglesey and Gwynedd councils

    Date: 3rd December 2010

    By: Carl Sargeant,AM Minister for Social Justice and LocalGovernment

    Last week, I published the draft local government revenue settlement for 2011-12.

    The funding reductions that it unavoidably contains will present all local authorities with

    formidable financial and delivery challenges. I cannot make any apology for that given

    the wider state of public finances, but I can offer my full support to local authorities in

    tackling these challenges as best they can.

    I believe that one of the most viable ways of doing that is for local authorities to

    collaborate with each other to deliver major services. Having 22 separate structures

    delivering each of the many services local authorities provide duplicates costs whileminimising economies of scale. It can leave smaller authorities in particular without

    the capacity to provide more specialised services. Of course, it can also make

    councils more responsive to local needs. But the balance must be right, and in these

    difficult times we need to look very critically at that.

    It is in this context that I and my officials have recently held discussions with group

    leaders and senior officers in Anglesey and Gwynedd about the possible integration of

    the services they provide. Both councils serve largely rural and Welsh-speaking

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    areas and both have a good record of working together. For instance, they have

    operated a single education support service for many years and recently announced

    an intention to work together in strategic land use planning. But while collaboration on

    that scale is laudable, it simply cannot deliver the scale of savings that either council

    will need to make. That demands the full integration of major services; and that in turn

    means moving towards a shared senior management team.

    I am pleased to report that the discussions in both councils have been very positive.

    Both sides fully accept the need to work more closely together if they are to make

    savings while protecting front-line services; and both believe the time is right to explore

    the potential for service integration in detail. I therefore agreed to draw up some

    principles for a full scoping study, which would report to both councils and to me early

    in the new year.

    I have recently written to the leaders of both councils setting out these principles and

    asking them to seek their members formal endorsement of them as soon as possible.

    A copy of the principles is at the end of this statement.

    I am proposing a full and detailed review of the potential for collaboration between the

    two authorities, including the potential savings and the ability to protect and enhance

    front-line services, as well as the risks and uncertainties. I am not asking either

    council to commit to anything at this stage: no organisation should rush into

    collaboration without considering the evidence. But it would also be unreasonable for

    any authority to refuse even to consider the possibility, and to forego on principle the

    very considerable gains that might arise. I therefore urge all councillors in Anglesey

    and Gwynedd to support the proposals.

    It is vital to stress that this is absolutely not about merging authorities. It is perfectly

    possible to preserve local democracy while radically reviewing arrangements for

    service delivery and management, as several councils in England and Scotland have

    recognised. That is the ultimate aim here. I have no wish to reduce democratic

    autonomy; I want to help safeguard essential services. If this programme is

    implemented, both councils would continue to exist as separate democratic entities.

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    Councillors would have the same range of responsibilities as they do now, and would

    be accountable to local people in the same way.

    I cannot ignore the fact that Anglesey is currently recovering from very serious

    corporate governance problems, under a direction which Brian Gibbons issued last

    year. They are making some progress although the recovery is by no means

    complete. But I should stress that what I am proposing today is not primarily a

    response or a solution to Angleseys problems. It does not mean that the council has

    irrecoverably failed. Neither should it be interpreted as a take over by Gwynedd a

    position which I am sure Gwynedd Council would not want anyway.

    Greater collaboration between the two authorities would probably be necessary even

    without Angleseys recent problems, although those heighten the need for that work to

    be accelerated. If this project succeeds it will not necessarily mean that our

    intervention comes to an end. But if Angleseys members and officers show the

    leadership and commitment necessary to make it succeed, it will be powerful evidence

    of progress towards a sustainable recovery.

    My announcement today is only a start. It is up to the two councils to take this further,

    with my full support and that of the WLGA. I believe that the commitment and honesty

    that the Councils have shown so far demonstrates that local government has the

    ability and willingness to tackle formidable problems, and can face a difficult future with

    a little more confidence.

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    Strategic Collaboration between Anglesey and Gwynedd

    Scoping Study Principles

    All local authorities will face extreme challenges in the coming years because of the

    severe pressure on public-sector budgets and the implications this will have for servicedelivery. One of the most potentially fruitful ways of addressing those challenges whileprotecting front-line services is for authorities to collaborate more fully with each other.

    Local authorities already routinely collaborate with each other. Gwynedd andAnglesey have, for instance, operated a shared education support service for manyyears and have recently committed to establishing a single strategic planning unit.However, while these examples are positive in their own terms, they and others likethem will not achieve the level of savings that all authorities will need to secure in theshort to medium term. That demands full-scale integration of major services and theirmanagement. Several councils in England and Scotland have already recognised and

    adopted this approach.

    Following discussions between the Minister for Social Justice and Local Governmentand members and senior management of the two councils, it is believed there is meritin exploring in depth the potential l and possibility of such service integration. Thisdocument sets out the principles and terms on which such a scoping study will takeplace.

    Overall

    1. The aim of this scoping study is to consider how far integration of major servicescould realise efficiency savings for both councils while protecting and enhancingfront-line services for citizens and communities.

    2. Both councils are committed to this scoping study, and the Welsh AssemblyGovernment and WLGA are committed to providing support to it. All will considerthe findings of the study on their merits. But no party is committed now toaccepting or implementing those findings.

    Democracy

    3. The study is not concerned with merging or abolishing authorities. Both councilswill remain as autonomous democratic entities, and their members will have thesame range of representational, scrutiny and executive functions as they havenow

    4. Nor is this study concerned with the takeover of one authority by another. Bothcouncils have strengths and weaknesses and both face similar financial anddelivery challenges. This study rather recognises the potential value in facingthose challenges as equal partners.

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    Services

    5. The study will consider the potential for integrating services which both councilsprovide and delivering them within a single set of operational and managerialarrangements. This includes corporate and back-office services which are often

    key to realising major savings and to supporting wider integration. In particular,the study will seek to establish:

    a. The services that might be included with such arrangementsb. The scale of efficiency savings that such arrangements might secure,

    and when those savings might arise;c. The potential benefits that such arrangements might have in terms of

    protecting and enhancing the breadth and quality of services;d. The effects that such arrangements might have on the ease of recruiting

    and retaining high-quality specialist staff, especially staff able to workthrough the medium of Welsh;

    e. The risks of adopting this approach in particular services and generally,

    and how those might be manage; andf. The financial and delivery consequences for both authorities of not

    adopting this approach.

    Senior management

    6. Fully integrated services point to oversight by an equally integrated seniormanagement team. The study will establish the potential for establishing such ateam, and the costs, benefits, risks and timing implications of doing so.

    7. The study will also consider the appropriateness of each authority appointing asenior manager to oversee its own internal affairs and governance.

    Participation

    8. The study will be commissioned and funded by the WLGA in partnership with theWelsh Assembly Government . Implementation of its recommendations will befor each authority on an equitable basis to be agreed between them.

    9. The study will seek the views of key stakeholders in formulating its findings andrecommendations.

    Timing

    10. The study will commence as soon as possible and will aim to report to bothauthorities and the Welsh Assembly Government by February 2011.