REPORT TO RESOURCES COMMITTEE

DATE: 18th April 2005

Consultation – Review of Councillors’ Allowances

SUMMARY:

A consultation document has been received from the Welsh Assembly Government (see attached) in relation to a review of Councillors’ Allowances whilst also considering the possibility of consolidation of the existing Regulations.

The following are the main issues for consultation which affect Fire & Rescue Authorities, with commentary thereon in italics:-

  • Wales Independent Remuneration Panel – This was a temporary body dealing only with Councillors’ pensions. The Minister proposes to establish a panel on a permanent basis to make recommendations annually to county and county boroughs on allowances and pensions, and to propose indices for the uprating of such allowances.
     
    • This proposal in relation to allowances does not directly affect Fire & Rescue Authorities as the Local Authorities (Allowances for members of Fire Authorities) (Wales) Regulations 2004 provides that allowances will be adjusted annually from 1st April 2006 based on the average of all (if any) annual adjustments made by the Constituent Authorities in that year.
       
    • There is no apparent reason however why the proposed panel could not make recommendations on fire authority allowances. Whilst not only being administratively convenient, it would mirror the arrangements in the constituent authorities.
       
    • The Panel has reported on the eligibility of Councillor’s allowances becoming pensionable. However it is not proposed that fire authority allowances would be pensionable. During consideration of the initial consultation on Fire Authority Allowances in 2004, the Authority was of the view that such allowances should be pensionable. It seems inconsistent that Fire Authority Allowances are still excluded from the proposals.
     
  • Suspended Councillors – The Minister proposes to follow the provisions currently operable in England whereby local authorities may stipulate that basic allowances and special responsibility allowances are not payable to a Councillor whose membership is suspended. Such provision is already provided for in Fire & Rescue Authorities’ Scheme for Payment of Members Allowances by virtue of the Local Authorities (Allowances for members of Fire Authorities) (Wales) Regulations 2004.
     
  • Members of more than one Authority – It is proposed that those county councillors who also serve on National Park Authorities, Police or Fire Authorities should not be able to receive more than one Special Responsibility Allowance. Committee will recall that the Minister, prior to the enactment of the Local Authorities (Allowances for members of Fire Authorities) (Wales) Regulations 2004 expressed “…concern at the public perception of the dual receipt of Special Responsibility Allowances and whether the allowances system should not encourage the sharing out of what are increasingly significant responsibilities”. However following representations the provision in the draft regulations which barred a Fire and Rescue Authority chair or vice chair who was also an executive or board member of their constituent authority from receiving a special responsibility allowance from a Fire Authority was not included in the final Regulations. The Minister did indicate however that she might need to look at the position again. Enactment of such a proposal would limit representation and not recognise the significant contribution and commitment of both the Chair and Vice Chair at a time of unprecedented change, It is worth noting that the level of allowances for the Chair and Vice Chair were established on the basis of the additional time demands of such post holders compared with other members. Such demands would not vary whether such appointees were executive / board members or not.
     
  • Independent Members of Standards Committees – Local Authorities in England are able to pay a co-optees allowance to members who are not councillors, such as Chairs of Standards Committees. The Minister invites views on the proposal to introduce a similar arrangement in Wales, and whether such should apply to Fire Authorities. The position in Welsh county and county borough authorities regarding payment varies considerably, with authorities seeking uniformity through the introduction of Regulations to regularise the position. Such Regulations should also apply to Fire Authorities, who have the same recruitment problems for independent members although the level of commitment that is required is not as great.

IMPLICATIONS:

OPERATIONAL RISK  
COMMUNITY RISK  
TRAINING  
H.R  
FINANCE Any changes arising out of the Consultation would need to be enacted in Regulations, and would have to be incorporated in the Authority’s “Scheme for payment of Members’ Allowances”
I.T/COMMS
EQUALITY & DIVERSITY
HEALTH & SAFETY
LEGAL  

RECOMMENDATION:

That Committee considers the commentary as the basis of a response to the Consultation Paper.

BACKGROUND PAPERS USED IN PREPARATION OF THIS REPORT:

Consultation Paper – Review of Councillors’ Allowances (February 2005)
.Local Authorities (Allowances for members of Fire Authorities)(Wales) Regulations 2004.

Report Author and Designation

Arwyn T Howells, Clerk

Telephone number/Extension

01267 221444 Extn. 4461

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