NAWRM 1

Legislation Committee No 1

Response to the consultation on the Proposed Measure in relation to the Independent Review Panel Recommendation

Claire Clancy, Chief Executive and Clerk of the National Assembly

Rosemary Butler AM
Chair
Legislation Committee 1
National Assembly for Wales
Cardiff Bay
CF99 1NA

11 December 2009

Dear Rosemary

Thank you for your letter of 8 December 2009 about the Proposed National Assembly for Wales (Remuneration) Measure.

I am grateful for the opportunity to deal with the questions you have raised about the duties the proposed Measure would place upon me as Chief Executive and Clerk of the Assembly, and as Accounting Officer.  I will address each of your questions in turn.

1. How do you envisage putting into practice Schedule 2 of the proposed Measure (introduced by section 4(3)), which require the Clerk of the Assembly to make arrangements for selecting candidates for appointment to the National Assembly for Wales Remuneration Board?

As Chief Executive and Clerk of the Assembly I already have responsibility for making or overseeing the arrangements for a number of selection procedures, including senior staff appointments, advisers and members of independent panels relevant to the Commission’s functions and the identification of preferred candidates for public offices including the Auditor General for Wales and the Public Services Ombudsman for Wales.  In all of these cases, I apply the principle of equality that is referred to in Schedule 2 of the proposed Measure.  For this reason, Schedule 2 does not require a new approach to that which is already applied as a matter of good practice.

In order to increase the transparency of the process for making those appointments which are made by, or on the nomination or recommendation of the Assembly, Commissioners are currently being consulted on a standard appointment procedure.  At present, this procedure would not apply to appointments to this Board, although with suitable modifications it would be possible to extend its application to such appointments.  This may serve to make clear how my responsibilities as Clerk under Schedule 2 would be discharged in practice.  I am attaching a copy of the draft procedure for your information.

2. The Explanatory Memorandum to the proposed Measure states:

"…those selecting potential Board members will be able to take account, when judging their suitability, any connection with an Assembly Member (such as a family relationship) which could give rise to an actual or perceived conflict of interest.”

Are you content that the proposed Measure provides the Clerk (and others involved in the selection of candidates with this discretion?  If so, how will you go about assessing any actual or perceived conflict of interest?

I am content that the Measure provides the necessary discretion.  The proposed Measure is based on the principle that financial support for Members should be decided by an independent body, free of any actual or perceived financial interest in the outcome of its deliberations.  Applicants for membership of the Board would be asked to disclose any connection with current Members (or candidates for election to the Assembly) and their staff, and it would be made clear that such connections could be relevant to their suitability for membership.  Naturally, the impact of any connection on the selection process would depend on how close it was.  Some, for example a close family relationship with a Member, would mean that a candidate would be automatically ruled out, whereas a more remote relationship might not.

3. In the Explanatory Memorandum to the proposed Measure, the Member in charge asserts that administrative support for the Board will be provided by existing staff.  What do you estimate to be the level and nature of support that the Board will require over a typical 4-year cycle, including the more detailed reviews likely to take place in election years?

Section 9 of the Explanatory Memorandum, particularly paragraphs 9.8-9.12 contain details of the expected frequency of Board meetings.  It is assumed that the Board will meet more frequently prior to election years than in non-election years.  Over a typical 4-year cycle, it is likely that the Board would meeting 12-15 times.  Support will be required to make the necessary administrative arrangements, including recording issues, discussed, decisions made and future actions agreed.  In addition, it will be necessary to provide the Board with research and analytical advice.

It is anticipated that, every four years in advance of the election, the Board will require 15 person days administrative support and 10 person days research/analytical support.  In non-election years, the required support will be about half of these levels.  The proposed Measure does not include a reporting requirement.  If the Measure was subsequently amended to include such a requirement, the support required would increase accordingly, possibly by an extra 5 person days.

4. Are you content that there is sufficient capacity and expertise within the current staff complement to provide the necessary level of support to the Board?

I am content that there is sufficient capacity and expertise within the current complement of staff.  The administrative and research support provided to both of the independent review panels on financial support for Members was found from within the current staff complement of the Assembly.  Both panels commented favourably on the quality of support provided to them, and the staff concerned found the work involved to have contributed positively to their career development.

5. The proposed Measure provides for the Board to make decisions on all aspects of financial support for Assembly Members and that these decisions will be final.  Are there any potential difficulties that this may cause you as the Principal Accounting Officer?  If so, how will these be reconciled?

The new arrangements will simplify the budget planning process, as Members’ salaries will be fixed for the 4-year Assembly term.  The budget for 2011-12 will need to include a contingency to allow for the upper end of the likely range of basic salary to be determined by the Board.  My team and I will provide information and advice to the Board, as required, to assist with their deliberations.

I hope that the above is useful to you in your scrutiny of the proposed Measure.  If you would like any further information, or have any further queries, please let me know.

Yours sincerely

Claire Clancy
Prif Weithredwr a Chlerc/Chief Executive and Clerk
Cynulliad Cenedlaethol Cymru/National Assembly for Wales