Ethical Governance Workshop for Tees Valley Town and Parish Councils

Tees Valley Town and Parish Councils ETHICAL GOVERNANCE WORKSHOP 8th May 2009 Kirsty Cole - Strategic Director (Customers and Resources) Newark & Sherwood District Council John Williams – Senior Policy Advisor Standards Board for England

Background The image of Local Government Services or Sleaze?

Background • Nolan Committee • Found standards generally high • Problem of perception

“despite instances of corruption or misbehaviour, the vast majority of councillors and officers observe high standards of conduct” • “we are commending a fresh start which gives greater responsibility to local government itself for devising and regulating standards of conduct, within a framework that gives consistency of standards and proper enforcement” • [Nolan Committee]

Why bother about it ? “At the heart of good local democracy is a bond of trust between communities and the people who represent them. High standards of conduct contribute to building an ethical organisation which can establish that bond of trust”

The Ethical Framework • Part III of the Local Government Act 2000 • The Model Code of Conduct • Standards Committees • The Standards Board for England • Adjudication Panel for England • Part 10 of the Local Government and Public Involvement in Health Act 2007 • Locally managed conduct framework • Revised strategic role for the Standards Board to provide supervision, support and guidance for local authorities to ensure the effectiveness of the local standards framework

The Standards Board for England • Promote and maintain high standards of • Conduct • ensuring the effectiveness of the local framework • oversee the Code of Conduct • carry out investigations that cannot be undertaken locally • provide support and guidance to authorities and members regarding ethical behaviour

Adjudication Panel for England • Establishes Case Tribunals to hear: • Allegations referred to it by Ethical Standards Officers • Appeals against local determinations • Cases referred by local standards committees

Standards Committee Functions • Hold hearings and determine cases • Advice to council on adopting a local code of conduct • Monitor the effectiveness of the code • Train, or arrange training on the code * • Promote and maintain high standards of conduct of members * • Help members to follow the code of conduct • Some standards committees have a developed a broader role in governance issues • e.g., internal and external audit, officer code, whistle-blowing, overview of the constitution • * Including town and parish councils

Wider Regulatory Framework • Judicial Review • Human Rights Act • Civil and Criminal Liability (bribery & corruption most serious) • District Audit (financial probity) • Maladministration (Local Government Ombudsman)* *NOTE: jurisdiction only extends to principal authorities

Workshop Session One In small groups, discuss what you understand by the terms ‘ethical behaviour’ and ‘high standards of conduct’. Why do you think ethical behaviours matter within your town or parish council?

What does an “ethical organisation” feel like? • Honesty • Openness and transparency • Mutual respect • High standards of behaviour – mutual trust and confidence • Courtesy and good manners

Why is ethical behaviour important? • Promotes public trust and confidence • Faith in local democracy • Protects members from unreasonable expectations of behaviour • Leadership role on behalf of community – setting an example

10 General Principles of Conduct in Local Government The Standards Board recommends that general principles be adopted as preamble or annexe to Code Selflessness Honesty and integrity Objectivity Accountability Openness Personal judgement Respect for others Duty to uphold the law Stewardship Leadership [Statutory Instrument 2001 1401]

When the code applies When you:- • conduct Council business, or act as a Council representative in your official capacity (“on duty”) • Some obligations apply even when you are “off duty” if criminal conviction and relate to your office

Official Capacity Where you:- • conduct the business of your authority and/or office • act, claim to act, or give the impression that you are acting as a representative of your authority

13 dos and don’ts 5 dos • Treat others with respect - paragraph 3(1) • Use Council resources properly – 6(b) act in accordance with councils reasonable requirements ensure resources not used improperly for political purposes • Follow Local Authority Publicity Code - 6(c) • Have regard to MO & CFO advice – 7(1) * • Give reasons for decisions – 7(2) * * Not mandatory in the case of town and parish councils

13 dos and don’ts (cont’d) 8 don’ts • Don’t cause council to breach equality laws - 3(2)(a) • Don’t bully – 3(2)(b) • Don’t intimidate in a standards complaint - 3(2)(c)  • Don’t compromise the impartiality of staff – 3(2)(d) • Don’t breach confidentiality – 4(a) • Don’t prevent access to information – 4(b) • Don’t bring office into disrepute - 5  • Don’t use position improperly to obtain advantage / disadvantage - 6(a)  = off duty criminal conviction may breach code

Confidential Information MUST NOT disclose information except where:- • You have the consent of the person authorised to give it • You are required by law to do so • Disclosure is to a third party to obtain professional advice and the third party agrees not to disclose to any other person. Or The disclosure is:- • Reasonable and in the public interest And • Made in good faith and in compliance with the reasonable requirements of the authority

Personal interests (1) You have a personal interest in any business of the council where either:- • It relates to or is likely to affect 13 types of things, bodies or people (“the 13 interests”), or • The decision might reasonably be regarded as affecting the well-being or financial position of you or a “relevant person” to a greater extent than residents of the ward affected There are 8 types of relevant person

Personal interests (2) The 13 interests (1/3):- Where it relates to or is likely to affect:- • A body which the Council appointed you to * • A body exercising functions of a public nature * • A body directed to charitable purposes * • A body whose principal purposes include influencing public opinion or policy (including trade unions and political parties) * * Where you are a member or in a position of general control or management

Personal interests (3) The 13 interests (2/3):- • Your employment or business • Your employer • Anyone (apart from a council) who paid you election or councillor expenses • A business etc in an area in which you have a beneficial interest in + £25,000 shares (nominal value) or + 1/100th of the shares

Personal interests (4) The 13 interests (3/3):- • A contract between the Council and you, your business (or a business in which you have a beneficial interest) • Interests of someone who gave you a gift or hospitality of £25 + • Land in area in which you have a beneficial interest • Land which you, your business (or a business in which you have a beneficial interest) rents from the Council • Land in area which you have a licence to occupy for 28 days +

Personal interests (5) 8 types of relevant persons:- • Family member • Person with whom you have a close association • Their employers or business partners • Companies in which they own +£25,000 shares (nominal value) • Body which the Council appointed you to * • Body exercising functions of a public nature * • Body directed to charitable purposes * • Body to influence public opinion or policy * *Where you are a member or in a position of general control or management

Declaring Personal Interests General rule:- When? - when agenda item comes up (or become aware) What? – “I have a personal interest because…” 4 Exceptions:- • If interest relates to your membership of a body that the Council appointed you to, or one exercising public functions • Relates to a gift/hospitality registered more than 3 years ago • You reasonably didn’t know you / relevant person had an interest • Relates to “sensitive information” (risk of violence etc)

Prejudicial Interests (1) A personal interest which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice your judgment of the public interest (“Clapham Omnibus test”)

Prejudicial Interests (2) You don’t have a prejudicial interest if:- • Your financial position is not affected, or • The financial position of any of the 13 interests or 8 relevant persons is not affected, or • It’s not an approval, consent, licence, permission or registration (what’s left?), or • Council housing and you have a Council house (unless it relates particularly to your tenancy), or • It’s about the following Council functions:- - Statutory Sick Pay and you receive or are entitled to receive it • Member allowances, payments or indemnities • Ceremonial honours - Setting the Council Tax or a precept But you still have a personal interest to declare !

Prejudicial Interests – What you must do If you have a prejudicial interest, you must:- Leave the room and not seek improperly to influence the decision unless you have a dispensation If the public can participate in a meeting, you can make representations or give evidence (Note: This only applies if your council has adopted paragraph 12(2) of the code)

Registering Interests • Within 28 days of taking office or the code being adopted you must register your interests in the 13 interests defined in the code • Ongoing requirement to update (within 28 days of any change) • Don’t have to include “sensitive information” if MO agrees (potential serious risk of violence or intimidation)

But remember.....Often ethical problems do not relate to rules and protocols, but to relationships and behaviours

Part II Local Assessment De-mystified

Local Assessment of Standards Complaints Moved from a top down approach to a locally based regime

Local Assessment of Standards Complaints How does local assessment work? • Anyone who considers that a member may have breached the written code of conduct may make a written complaint to the Standards Committee of the principal authority. • The complaint form can normally be downloaded from the Council’s website

Local Assessment of Standards Complaints What happens when a written complaint is received ? STAGE ONE: Determine if complaint actually relates to a code of conduct issue STAGE TWO: If the answer is yes, the complaint is referred to an “Assessment Sub-Committee” of the Council’s Standards Committee.

Local Assessment of Standards Complaints What does the Assessment Sub-Committee do? • It decides if there is sufficient information in the complaint to indicate that there may have been a breach of the code of conduct • If the answer is yes it goes on to decide whether: • to instruct the MO to conduct an investigation • to refer the matter to the Standards Board for England for investigation (they may decline to accept the case and to refer back to the SC). Or • to take some other form of action

Local Assessment of Standards Complaints What does the Assessment Sub-Committee do? (cont’d) • If it decides that there is insufficient evidence or that it is not in the public interest to pursue the matter it may decide that no further action be taken • Councils should adopt local criteria to help carry out this process

Local Assessment of Standards Complaints What is the Assessment Sub-Committee? • A panel or Sub-Committee drawn from the members of the Standards Committee • Normally between 3 and 5 members (quorum is 3) • At least one is: • A person who is independent of the authority • A parish representative where the complaint is about a parish matter • An elected member of the principal authority

Local Assessment of Standards Complaints What happens if it decides that no further action be taken? • The complainant can request a review • This will be heard by a Review Sub-Committee • The Review Sub-Committee consists of a different panel of members from the Standards Committee • Chaired by an independent member

Local Assessment of Standards Complaints Role of Assessment Sub-Committee and Review Sub-Committee • Purpose is simply to decide whether action should be taken on the complaint either as investigation or some other action • DO NOT make findings of fact at this stage • DO NOT carry out any further enquiries or investigations at this stage (BUT MO may have obtained some background information such as copies of minutes etc)

Local Assessment of Standards Complaints When will the member be told that a complaint has been made about them? MO has a discretion NOT AN OBLIGATION to acknowledge receipt of a complaint and tell the subject member that a complaint has been made about them including name of complainant (unless complainant has requested confidentiality and committee has not yet decided whether to grant it).

Local Assessment of Standards Complaints When will the member be told that a complaint has been made about them?(cont’d) Once Assessment Sub-Committee has reached a decision on a complaint it will give a written summary of the allegations to the member against whom the complaint has been made.

Local Assessment of Standards Complaints When will the member be told that a complaint has been made about them?(cont’d) Assessment Sub-Committee should give decision with reasons within 5 WORKING DAYS to complainant, member subject to complaint and parish council (unless it is against the public interest or would prejudice any future investigation).

Local Assessment of Standards Complaints When will the member be told that a complaint has been made about them?(cont’d) • Subject member will be informed if a request is made for a review of a decision. • Review Sub-Committee will give its decision with reasons within 5 WORKING DAYS to all relevant parties

Local Assessment of Standards Complaints Timescales • Assessment Sub-Committee aims to complete initial assessment of an allegation within an average of 20 working days • A request for a review of a “no action” decision must be made within 30 days • A Review Sub-Committee must be held within 3 months of a review request being made

Local Assessment of Standards Complaints What happens if a case is referred for “other action”? • May be a more appropriate alternative to formal investigation • May be used where there is:- - A breakdown of relationships within an authority eg factionalised groupings, tit for tat complaints, patterns of disrespect - Poor understanding of code and/or council procedures • May involve training, mediation, conciliation, brokering an apology

Local Assessment of Standards Complaints Are the initial assessment and review meetings open to the public? • No! • Normal access to information rules do not apply • However, a written summary of the decision will be available for public inspection • Will give name of subject member unless it is not in the public interest or would prejudice any subsequent investigation

Local Assessment of Standards Complaints What happens where the complainant withdraws their complaint? • Assessment Sub-Committee decide whether to grant request • Standards Committee should adopt criteria for determining such requests

Local Assessment of Standards Complaints What happens then? If referred to MO for formal investigation: MO will inform member subject to allegation and complainant (and parish council where appropriate) NOTE (i) matter referred for local investigation by ESO, can request that he take matter back (ii) MO can refer matter back to Standards Committee if matter more or less serious or no longer in public interest to continue investigation (eg member died, resigned, seriously ill)

Local Assessment of Standards Complaints On conclusion of investigation: 1. MO makes finding of either:- • Failure to comply with code (“a finding of failure”) OR • No failure to comply with code (“a finding of no failure”) 2.Written report sent to: • Member against whom complaint made • Standards Committee

Local Assessment of Standards Complaints What happens to the report? The report is considered by Standards Committee (may be heard by a considerations sub-committee) • May accept MO’s finding in event of finding of no failure (a finding of acceptance) Or • Decide that matter should be considered at a hearing of the Standards Committee Or • Should be referred to Adjudication Panel for determination

Ethical Governance Workshop for Tees Valley Town and Parish Councils