Clause 18
Local Government and Public Involvement in Health Bill
6:00 pm
Alistair Burt (Shadow Minister (Communities and Local Government), Communities and Local Government; North East Bedfordshire, Conservative)
I would be grateful for some clarification from the Minister on staff issues. Subsection (5) says in italics:
“Any expenses incurred by a staff commission under this section and not recovered from a relevant authority shall be paid by the Secretary of State out of money provided by Parliament.”
Can he give us any indication of where and when he expects that provision to be triggered? Is it an indication of concern that the costs of winding up an authority might not or should not be met by that authority, and that the money will therefore have to come from Parliament? If so, what provision has been made for it? What sums are anticipated? It would be appreciated if he said something about that.
I would also like clarification on how the staff commission would deal with some of the practical problems arising from reorganisation. It is a disorienting time. During the transition, some workers may choose to leave the authorities in transition and go to more settled neighbouring authorities, depriving the area of key skills. In all the areas on the fringe of London, it is easy to transfer to neighbouring areas, take skills elsewhere and not be caught up in transition. Would the measures involve the payment of bonuses to retain key staff during the transition? Might short-term contracts be involved to bring in specialised skills to cover the transition period? Who will meet the costs?
Where will pension costs lie under transition? Which authorities can be expected to make provision for them? It is likely that authorities with very different financial situations will be brought together. Some will have been prudent and have significant reserves, but others will have very few. That will affect the payment of costs and pensions and, ultimately, the amount of council tax being paid by taxpayers. Who is picking up the bill for the transitional process? I would be very grateful if the Minister could enlighten us on that matter. In particular, when does he expect the provisions in subsection (5) to be triggered?