Northern Ireland Assembly Flax Flower Logo

COMMITTEE FOR EDUCATION

OFFICIAL REPORT

(Hansard)

Education Bill

14 January 2009

Members present for all or part of the proceedings:
Mr Mervyn Storey (Chairperson)
Mr Dominic Bradley (Deputy Chairperson)
Mrs Mary Bradley
Mr Trevor Lunn
Mr Nelson McCausland
Mr Basil McCrea
Mr John O’Dowd
Miss Michelle McIlveen
Mr Ken Robinson

Witnesses:
Mr John McGrath )
Mr Chris Stewart ) Department of Education
Mr Joe Reynolds )

The Chairperson (Mr Storey):

The two issues that we want to discuss today are the regional and sub-regional structure of the education and skills authority (ESA) first, and the sectoral representation organisations. I welcome John McGrath, Chris Stewart and Joe Reynolds. Joe, you are very welcome, and it is nice to see you here. I will now ask John to proceed.

Mr John McGrath (Department of Education):

I am very glad to be here this morning for the continuing process of the RPA Bill. I have my trusty support Chris, and also Joe, who has joined the RPA team in the Department, and who will be a constant feature at these meetings. We have provided two papers to the Committee: the first on the regional and sub-regional structure of ESA, and the second on the role and responsibility of sectoral organisations. I will speak about the first paper and deal with any questions that Committee members may have, and then Chris will discuss the second paper

A considerable amount of work has gone in to producing both papers, by the Department, and by the education and skills authority implementation team (ESAIT), but they do not yet represent signed-off proposals, particularly with regard to structure. The Department will shortly feed back some views to ESAIT on how its existing thinking matches the criteria set out by the Department. After that process, it is envisaged that ESAIT will begin a consultation process, involving particularly the trade union side and other stakeholders. After that, the proposals will formally come to the Department for the Minister to sign off. We would, obviously, like to accelerate that process in the next couple of months, because we are working to a tight deadline to get senior posts out to the market and filled in adequate time for ESA to be up and running by the target date of 1 January 2010.

As was set out by Catríona Ruane in several speeches in the Assembly recently, ESA has a number of clear, overriding objectives: to raise standards overall, and reduce the gap between the highest and lowest achievers, and in so doing reduce the barriers faced by many in accessing education and fulfilling potential; to provide a clear and consistent model of delivery focused on equality, which is child-focused and also reflects modern professional practice; to provide locally-based and accessible frontline services to help, support and, as necessary, to challenge schools and other education providers — education providers is meant in the widest sense, encompassing everything that is in the education basket, from early years to youth; and to provide efficient and effective support services, and free up resources to be redeployed to the frontline.

ESA, led by its chairperson and members, will be accountable for its performance to the Department, the Minister and the Assembly, and, in so doing, will be, in a broader sense, open to scrutiny by this Committee. The accountability framework for ESA will be clear, transparent and rigorous, and will also reflect the guidance and good practice and the oversight of arm’s-length bodies, which are emerging from the Department of Finance and Personnel and from previous work of the Public Accounts Committee.

The two main drivers in designing the structure are to provide locally, as much as possible, the services that schools and other providers need, and, parallel to that, to centralise and derive economies of scale from regional back-up services that need not be provided locally. Schools will be the focus of the system: they will be at the centre of the system, rather than being one element in a wider command-and-control system.

The paper that the Department has provided, therefore, outlines the current development of thought with regard to the regional disposition of central functions — that is, finance and human resources — and how they will be brigaded; and, linked to that, the current thinking with regard to a network of local area offices and the frontline services that they would provide to schools and other education providers. It is envisaged that those local offices, led by senior managers, should have the flexibility to respond to specific local circumstances in line with the central policy framework. They will aim to be sensitive to, and receive input from, local committees, comprising, among others, a number of elected representatives. The Bill under consideration already contains provisions for the establishment of such committees.

As members will know, the Department set out a range of criteria against which proposals for the structure of ESA should be shaped and, eventually, judged. There has been considerable rigour in the thinking to date. The outline business case, which has been signed off in the system and has now been made available by the Minister, demonstrates the robustness of the case for the creation of ESA and the reduction of a significant number of middle-management and senior posts, which will lead to savings of some £20 million per annum by the third year of implementation.

The intention for the number of senior posts — those that attract salaries in excess of £55,000 per annum — is that they will reduce from 80-odd to fewer than 50. That alone will generate savings of £2 million per annum. As regards the Department’s response to thinking on ESA’s structure, it is currently considering the cost parameters that it will set for ESA and is finalising the structure with regard to senior management posts.

I emphasise that although those proposals are well developed and have been tested against criteria that have been set by the Department, they have not yet been formally signed off. Therefore, there is still scope for the Department to offer views to ESAIT and for those to be reflected before final decisions are made. In that context, the comments and views of the Committee will be a welcome ingredient. I look forward to discussion on that paper.

The Chairperson:

I remind members that the proceedings will be reported by Hansard. Therefore, it is important that you raise any concerns that you have, because they will be recorded.

Mr McGrath, what references are there in the Bill or in its schedules to ESA’s structure and sub-regional structure? How is that dealt with in the Bill? In addition, what staffing structure is envisaged below senior-official level for each of the six local teams? One of many concerns is that paragraph 12 of the briefing paper on the structure of ESA at regional and local levels begins with the words:

“Overall, the numbers of senior posts (equivalent to the Senior Civil Service)”.

Are those posts equivalent to current Senior Civil Service posts in the Department of Education, or is that a generic term?

Mr McGrath:

Those posts are benchmarked against the salary level at which the Senior Civil Service starts.

The Chairperson:

Therefore, the number of posts will be reduced from 80 under the current arrangements to fewer than 50. I am not being a cynic, nor, in any way, suggesting that that will never happen. However, if the threshold is under 50, do we run the risk that, over a period of time, we end up in a situation in which there will be requests for more staff and resources? Five years after ESA has been established, more people will be employed than there are at present in the five education and library boards. People will ask what all that was about: you went through all of that only to have more senior-level staff and the savings that were envisaged were not realised.

Mr McGrath:

I will deal with those questions in reverse order. A solid piece of work in the outline business case demonstrates that about 460 posts can be removed while still delivering the same functions by rationalising and centralising them.

The Chairperson:

Are those 460 posts separate from the 80 senior posts?

Mr McGrath:

Those 80 posts are a subset of that. You could remove 460-odd posts and deliver the same functions with that reduced number of posts. When that is fully implemented, £20 million per annum could be saved. At the senior-management core, 80-odd posts will be reduced to fewer than 50.

As I mentioned, the Department is considering the parameters that it will set for ESA’s senior-management costs. We must get that right at the outset so that ESA can do its job. We recognise that the public-expenditure structure and future budgets are almost certain to bring about continued expectations for efficiency savings from public bodies. Education will not be immune from that, although whether we believe that that is a good idea is a different matter. As the second biggest chunk of the block, it would have to be a contributor, and whether generating 3% or 3·5% per annum in the future one would expect to bear down on management costs. Therefore, we expect the drift to tighten up over time as ESA beds down more efficiently, not to increase.

The trick is to get the change process — that is, from the five education and library boards and the other organisations — right at the outset and managing that process over three or four years by putting in drivers that will, essentially, squeeze management costs. That is why it is important to get a figure at the start of the process — and it may be an envelope figure — whereby we say that senior management costs should not exceed X amount, and then — and I am speculating — to say that, in two years’ time, we expect that figure to be reduced by Y per cent.

Therefore, the driver will be intended to push down costs, and that is quite appropriate because the public will expect that, as much as possible, management costs should be what is needed but no more than that, with the maximum amount of resource going to the front line. If that answer is satisfactory, I will let Chris deal with the specific provisions in the Bill.

Mr Chris Stewart (Department of Education):

Chairperson, you asked about how the legislation deals with the sub-regional structure of ESA as described by John McGrath. The legislation does not specify the model that John outlined but it allows for that model, or a variation of it, to be introduced if that is what is ultimately decided. The relevant provisions are in paragraphs 7 and 8 of schedule 1 to the Bill, which allow for the establishment of committees of the ESA and for any statutory function of the ESA to be delegated to those committees or to ESA employees.

That means that if the sort of model that John outlined is signed-off and decided as the right way forward, the legislation allows for that to be implemented from the outset. The flexibility of the approach in the legislation is also an advantage. If that model needs to evolve if we do not get it right first time, the legislation is sufficiently flexible to allow the changes to be made quickly, whereas, under the current arrangements, structures are prescribed in primary legislation and the only way to make a change is through more primary legislation.

Therefore, the Department feels that the approach in the legislation will allow for the introduction of a model that meets all the principles and parameters that John outlined, or a variation on that, and for that model to evolve if necessary.

The Chairperson:

The problem is that we could end up in the same situation as with pupil profiling — that is a different issue, but the same principles apply. In that instance, the issue was debated and, months ago, organisations went to CCEA and said that it was not working but the pilot was continued. Then, in September, the Department of Education issued the revised curriculum to all schools and although pupil profiling was mentioned in that, a number of weeks later an announcement was made stating that that was a bad idea and will be scrapped. Are you going to let the matter run, talking about it until March and then with reports having to be done by June? It is a mess. My concern is that, by having a provision whereby the model can be changed, we may allow a similar situation to develop. Is that really the best way to present policy?

Mr McGrath:

A lot of work is going into getting ESA structures right, getting the key balance between local sensitivity and support, and centralising those functions that can be centralised and making them sweat to get savings out of them. My own view is that there are no magic answer regarding perfect structure for any organisation, and circumstances will change. I would like to think, therefore, that the issue is not about getting the model wrong. It is more the case that if, over time, there are changes with regard to strategic priorities, or if, for example, there are serious issues about public expenditure and the Department and the Minister are required to take out significant efficiency savings and one way to do that is to tighten up the management structure, the approach that the Department is adopting provides the flexibility to do that.

Almost certainly, once ESA beds down over three or four years, and moves from having been the amalgam from day one, particularly of the five education boards and the smaller organisations, and develops its own culture, any organisation will say that, once it gets over that initial stage and gains a degree of maturity, it may well want to consider and establish whether it has the correct balance that is appropriate for it to move ahead.

The issue is not about getting things wrong; it is about having the scope to fine tune and refine the job that has to be done and the wider policy planning and public expenditure constraints. Therefore, it is not setting in concrete something that could be unpicked only by introducing primary legislation. I believe that that is consistent with the approach that is taken by organisations such as the Housing Executive and, perhaps, Invest NI, which are not subject in primary legislation to any degree of specificity about their detailed organisational structure.

The Chairperson:

Following on from that, the Bill says that the substructure could include committees. A decision could be made not to have any subcommittees, because the Bill says only that “ESA may establish committees”. It may not agree to establish committees.

Mr Stewart:

The Department will not give ESA that freedom. The Minister made it clear in the policy memorandum, which was agreed by the Executive, that committees will be established. The Department has, therefore, made a decision that there will be committees, and ESA will not be given that freedom.

The Chairperson:

If that is the case, why is that not reflected in the Bill? Why does schedule 7 to the Bill use the word “may” when you say that the Minister has made a policy direction, and the policy memorandum uses the word “shall”?

Mr McGrath:

It is the same issue. In five years from now, the Minister of the day from whatever party may decide that this model is not a good one. In those circumstances, legislation that stated that ESA “must” establish committees would allow no discretion. The word “may” is permissive, and that approach tends to be taken to legislation in general. If someone were to say in a couple of years’ time that those committees are not a good idea or that you want them to evolve with community planning, the Department would have to say that it was stuck with them because Bill had makes that arrangement compulsory. That would not be helpful.

The Minister’s policy direction to ESA, reflecting what is in the policy memorandum that went to the Executive, is that there shall be committees. The Minister will tell ESA that she wants it to establish local committees in line with the local area structure, and to get on with that, please.

Mr Stewart:

There is nothing Machiavellian in the wording. It is normal legislative practice for such measures to be permissive rather than prescriptive. It is also worth emphasising that the Department does not see those committees as window dressing. The important distinction is that they will not be external scrutiny committees; they will be formally part of ESA, and they will be able to carry out functions on behalf of the organisation. They are not, in any sense, external; they are intrinsic to the structure.

The Chairperson:

I want to give Members the opportunity to ask questions, because time has been set aside to deal with those two items.

Mr D Bradley:

When the Committee had its initial discussions with officials from the Department about ESA, the selling point was the savings that would be made and that those savings would be redirected back into front line services. The emphasis then shifted to the raising of standards, which now seems to be the Department’s key selling point for ESA, and the point that savings would be made is now in second place, as it were.

In your introduction, John, you said that staff who operate in local teams would be guided, supported and, where necessary, challenged by senior management in their efforts to achieve the key priority of driving up standards of educational achievement, with particular regard to closing the attainment gap. Yet, the Committee has a letter form the leader of the CCMS primary principals’ group in the Derry City Council area, who already wrote to the Department on 21 May 2008 to ask questions in relation to the raising of standards. The letter states:

“I have been requested by our group to seek specific clarification on the points raised in our initial correspondence that we do not believe were addressed by your response. Accordingly, given the generic change in educational administration that will arrive with the advent of ESA, we feel it is imperative that frontline leaders are absolutely clear in terms of the following:

Is there any empirical evidence to suggest that the development of such a large unitary authority will improve the educational outcomes of our young people?”

With regard to the Minister, the letter continues:

“In your initial response you merely stated what the current educational outcomes are and the perceived economic benefits of a huge authority.”

It is very important that education leaders in the front line at the chalk face have confidence in the ability of ESA to improve standards. That group of education leaders in Derry city from whom the letter came are not convinced that that will happen. They are asking whether there is any empirical evidence to suggest that the lofty ideals that the Department has for ESA with regard to raising standards will be realised.

Mr McGrath:

That demonstrates the problem: that there is an issue about standards at present.

Mr D Bradley:

Everyone knows that.

Mr McGrath:

Those school principals and the children are not being served well by the current system. There is an increasing understanding of that, particularly in view of the profile that Caitríona Ruane has given the issue in recent months. There are significant issues about standards and the PAC reports on literacy and numeracy. One of the main problems at present, put bluntly, is that at least five systems — if not more — are doing things in different ways. That was highlighted in the PAC report on literacy and numeracy.

In some cases there are a plethora of organisations. If one organisation is using best practice, one would expect every other organisation to adopt that. However, we have a system in which people make a virtue of doing their own thing. That does not serve children well, and it does not ensure that equity or equality is provided across the Six Counties.

Under Caitríona Ruane, the language surrounding ESA has refined to make raising standards and reducing the gap the primary objective. Achieving savings is still an objective, but it is clear where the savings have to go: to the front line in order to improve standards.

As was the case previously, and as is still the case today, schools remain the focus of the new system. Schools are not somewhere down the chain of command; they are at the absolute centre, and they are to be helped and supported, and that will be the function of the local ESA structure. They will have more of a commissioning role in what services and support — particularly with regard to professional development — that they need and want. Given that facilitation and empowerment, the wider community — and the Department and ESA, on behalf of the wider community — will expect the schools to perform better with regard to delivering standards.

The issue is about not only organisational change, it is about the empowerment of schools. In parallel with that, however, it is finding a more rigorous system of monitoring and performance management, which is articulated through ‘Every school a good school: a strategy for raising achievement in literacy and numeracy’, which is moving to final fruition, and the school improvement policy. It is that entire package. The organisation — and that policy direction and the focus on putting pupils first and schools next — is the package which, we believe, will do far more to improve standards than anything than has happened to date.

There is no automatic empirical evidence that one single organisation will bring about improvements; that is not the issue. The issue is that the current system is, arguably, not serving children well. There has been disparity and an unsustainable patchwork of approaches, and they have not served children well. Surely, we need to do better by establishing a single, but decentralised, organisation. We have the opportunity to sweat out the amount of savings, which the outline business case demonstrates, without reducing service. A saving of £20 million, without reducing services, is a good start: it is not the end, it is the start. Against that context, the propagated model deserves the opportunity to demonstrate that it can improve on the past.

Chris may wish to say something about the specific correspondence from which Dominic Bradley quoted.

Mr Stewart:

I am sure that you are familiar with that correspondence, we are —

Mr K Robinson:

I apologise for interrupting, Chris, but my comment may actually tie in with what he is going to say. What reward is there for schools that improve their attainment?

The Chairperson:

Currently?

Mr K Robinson:

No, built into this process. If this process is going to raise standards, and the whole focus has moved to money, what reward is there for a school or schools to do that?

Mr McGrath:

I may be naïve, but I would have thought that any school would want to raise and maximise the standards of outcomes of the pupils in its charge.

Mr K Robinson:

Yes, but they would want recognition for doing so. How will the Department do that?

Mr McGrath:

How are we going to recognise that?

Mr K Robinson:

How is the Department going to recognise a school which really sweats itself out, to use your term, and raises standards? We are all in this game to raise standards. If a school really puts itself through a hoop, and the teachers, the principal, the governors, everyone pulls together and the school is assessed as having raised their standards, what reward is in it for them? What carrot? There are lots of sticks, but no carrots.

Mr McGrath:

I think that there needs to be a balance. I would expect any organisation to take pride in the fact that it is doing a good job —

Mr K Robinson:

We do take pride —

Mr McGrath:

In general, I do not mean a school, I mean anyone —

Mr K Robinson:

We take pride and there’s a satisfaction. However, if we are now moving to this super-duper authority, what recognition is going to be built in to make tangible rewards to schools? Will there be extra staffing or some sort of emoluments that can make people strive to improve?

Mr McGrath:

First of all, the enrolments of a well-performing schools are likely to increase. On the other hand, if there are schools that are performing poorly, and the Department deals with the school improvement agenda —

Mr K Robinson:

That is the stick. What is the carrot?

Mr McGrath:

It is both. Parents and pupils will, increasingly, go to the schools that are deemed to be performing and performing well. If there is a more rigorous approach taken with underperforming schools than there has been in the past, there will be a further issue of capacity. First of all, there is the capacity of high performing schools to grow —

Mr K Robinson:

John, we are moving to a business model here, and in business those executives who perform well, unfortunately, receive very large salary increases in addition and all sorts of bonuses. Therefore, what is in it for the school? I do not mean the individuals in a school, but the school as a corporate body. What is in it for the school if it improves its standards?

Mr O’Dowd:

The improved life of its pupils.

Mr K Robinson:

That is taken as a given, and that comment is a wee bit glib, actually.

Mr McGrath:

This is speculation, but if we are in the territory of asking whether there are ways in which there can be financial incentives for the school, as an institution, to enable it to reinvest in equipment or employ more teachers, then that may well be something that the Department needs to examine. However, I would hesitate in doing so, and I am sure that Mr Robinson is not suggesting some type of bonus system for schools where money goes —

Mr K Robinson:

I am sure that the unions would jump on that if I were to suggest it. I am not suggesting that.

Mr McGrath:

One of the issues that the Department has at present is that it has given more money to poorly performing schools, which had no eventual outcome, because we did not link it —

Mr K Robinson:

The Department did not reward the successful schools. Here is an opportunity to do that.

Mr McGrath:

No, the Department actually rewarded underperforming schools.

Mr K Robinson:

The Department rewarded failure.

Mr McGrath:

We need to find a way, and I agree —

Mr K Robinson:

Schools that were successful had their added bonuses taken away for raising school standards.

Mr McGrath:

I do not have any difficulty with encouraging and incentivising the institution to do well, but in any discussion we have with school principals they say that they want to do their best. In many cases, those principals feel — and I am sure that the Committee hear this — that they are prevented from doing so and are disempowered. In matters of professional development, they are told what they can get rather than given the scope to say what they would like. Empowerment will be a feature of the future, and principals will be able to commission what they want, and will have far more freedom with regard to professional support. There will also be accountability.

I agree that schools that perform well should be recognised in the broadest sense of the word, and should be celebrated. Let us face it: well-performing schools — that is, well with regard to the circumstances with which they deal, and not just the pure academic achievement — already take great pride in doing well. The Department, and, I am sure, the Minister, would want to find ways to incentivise, as you put it, in such a way that it enables the school to progress and to do better.

Critically, if we are going to improve standards, we must improve teaching. That is the core of it. There are issues around incentivising and creating a better approach to the workforce, including morale and absenteeism, as opposed to investing a lot. As Mr Robinson put it bluntly, there will need to be carrots and sticks. It is not linked to just ESA: if we were not changing the organisational structure, we would still need to do something about standards. ESA’s importance is not seen in just organisational structure.

Mr D Bradley:

I will go back to my question, which I am asking on behalf of that group of teachers which wrote to the Committee and to the Department. You outlined the difficulty with standards and the long tail of underachievement, about which we have known for some time. You said that it is worth giving the model a chance, but are those sufficient grounds to make such changes? In the letter, the leader of that group of primary school principals asked whether the Department has done any research which offers empirical evidence to support the establishment of such an authority as the best way to raise standards.

Mr McGrath:

I believe that the issue is more complex than that.

Mr D Bradley:

When you said that it is worth giving the model a chance, that does not sound extremely complex to me.

Mr McGrath:

There is enough evidence that standards are not high enough.

Mr D Bradley:

I did not dispute that.

Mr McGrath:

The current organisational structure has not helped — and has, perhaps, hindered — achievement or the pursuit of it. We have not made the best use, as PAC reports have demonstrated, of significant funds that were invested in literacy and numeracy in particular. Therefore, the status quo is simply not good enough.

The ‘Every school a good school’ policy is soundly based and contains mechanisms and approaches to school improvement that have far more rigour and transparency in how to deliver that. Linked to that is the need to create the organisational structure, the vehicle that will help to support schools and drive improvement.

Mr D Bradley:

Where is the evidence that that particular model is the most effective vehicle by which to achieve that improvement?

Mr Stewart:

The evidence is in the GCSE results.

The Chairperson:

I would like to go back to something that John said, because it is a worry. You referred to numeracy and literacy. The problem was not the education and library boards; the problem was the Department.

Mr McCausland:

Hear, hear.

The Chairperson:

I do not think that any of the education and library boards will take any of the blame for the failure of the Department which introduced a numeracy and literacy strategy on which it spent £40 million, and they are now being told that there has been failure and that that failure lies with the boards, when the failure on that occasion lay fairly and squarely with the Department.

Mr McGrath:

I think that I said the current structure.

The Chairperson:

The rationale of your comments, however, is that the boards were responsible.

Mr McCausland:

The point is that the only things that are being changed are the schools and the system. The Department is not changing. It is a classic example of buck passing.

Mr Stewart:

The Department is changing very substantially.

Mr McCausland:

Well, maybe not for the better.

Mr Stewart:

However, the Chairperson is absolutely right on the point that he made about literacy and numeracy. The PAC put the blame squarely on the Department and said that the Department was wrong to allow to continue a system in which there were five different approaches to literacy and numeracy. The PAC rightly criticised us for not having done something about that earlier.

If I could return to Dominic Bradley’s point. The Department is familiar with the correspondence that you mentioned, and we are engaging with that group of principals. It is very important that we do so, because, as we emphasised, all school improvement starts and finishes with school principals and school leaders. The Department very much wants to engage with them and take seriously what they have to say. It is, I believe, interesting that that concern comes from a group of CCMS principals, which is, of course, a regional organisation which covers all Catholic maintained schools throughout Northern Ireland. The schools and CCMS as a sector have been very successful in tackling underperformance and raising standards.

As John said, the evidence is there, but, sometimes, the question has the wrong emphasis.

As John said, we believe that the evidence is there. The size of the ESA is not the issue. We are not making this change because we feel that we have to achieve some kind of critical mass in order to achieve success. The issue is about the number of organisations and the number of approaches.

We have seen — and the empirical evidence is in the GCSE results — an unacceptable variation in outcome and an unacceptable inequality in the standards of attainment in different parts of the fragmented education system in Northern Ireland. Good practice is being developed by principals; however, it is not crossing sectoral and organisational boundaries.

They are not the only source of good practice; good practice is being developed in all the other sectors, including the controlled sectors, but it is not spreading. It is being trapped in the organisational boundaries of the present system. The PAC rightly criticised the Department for not doing anything about that.

Ken asked me to make the link between the two. We need carrots — I will be careful in how I phrase this because it may sound as if the carrot may involve a great deal of work — but where a principal or school leader or group of school leaders have demonstrably achieved success we should publicly recognise and celebrate that success. However — and this is part of the change — the completely different approach that the ESA will take compared to the education and library boards will be to ask what a principal has done or what new approaches have been developed in a school or a group of schools that have worked? Should the ESA be made amenable and responsible to that principal who, along with his local colleagues, may ask for money because they have developed good practice in one school which will spread, rather than the ESA’s simply offering a set of services to schools and telling them that they must take what is on offer? That good practice could spread from one school through the neighbouring area by means of co-operation, sharing of staff, and the sharing of resources.

The development of services in schools or groups of schools — and this is captured in the Every School a Good School policy — is based on their self-improvement and self-development rather than simply taking what is offered on a very restricted menu from education and library boards, as they do at present.

The two straight-forward carrots are recognition and money for the development of services and expansion of good practice in schools, which, as John said, is driven by the schools in a commissioning role and making the ESA responsive. If the ESA cannot provide the services, and the schools can provide them better, then we shall make sure that the ESA responds appropriately.

Mr K Robinson:

Thank you very much, Chris; that is quite heartening. A school that came here showed how it had changed things around, and how with added flexibility they could do so much more —

Mr Stewart:

It could put an arm around the school down the road as well.

Mr K Robinson:

You said something right at the end of your presentation that interested me. However, it has gone for the moment; I have lost my train of thought.

Mr McGrath:

May I respond to what Nelson said? Reports have highlighted failures of the Department. Many of those failures, to be blunt, stemmed from the Department’s failing to performance-manage the education system — to give direction and expect people to take account of it. It has allowed a system without the necessary orchestration in which people did their own thing. That is not acceptable in a devolved context where a Department and a Minister are accountable to the Assembly, and in which the Committee would also have a role.

The Department is changing; it is about to change its structures radically. However, it must accept that its job is to police the policies and targets that have been endorsed and police them across the system. I referred to the accountability framework for ESA, and it will expect to be held to account by the Assembly and by the Committee that is it doing its job in overseeing and pursuing targets and holding people to account. The Department needs, culturally and structurally, to address its weaknesses, and it is doing so.

Miss McIlveen:

In relation to the recruitment of the core structure, which you refer to in paragraph 8 of your paper on the structure of the ESA, saying that you aim at finalising the overall proposals by mid-February and at starting recruitment in early spring.

Paragraph 6 talks of undertaking a consultation on a proposed structure. It almost looks as if the proposed structure has been pre-empted and that that consultation has already been sorted. Drafting job descriptions for the core structures gives the impression that decisions have already been made, irrespective of the consultation.

You refer to the PAC recommendations and the commitment to appoint high-calibre candidates, and we would not expect you to recruit anyone less than high calibre. However, experienced people who would meet the requirements are likely to come from the existing boards. I raised that issue before when I mentioned asset-stripping and our concerns about the transition. I know that you are aiming for an operational date of 1 January 2010, but that may not be realised; there may be slippage. How will we ensure that the boards operate efficiently and that there is no asset-stripping?

Mr McGrath:

To date, much work has been done to consider structure in ESA and in the Department, and consultation on that will begin shortly with trades unions and other sides. The timetable is very tight, and work is ongoing on various issues on which there is no disagreement: we will need a director of finance, because there is a £2 billion budget; that is almost a given. People can begin to work on the bones of a job description and have it in the tank while the consultation is under way. Indeed, it is important to remember that commitments have already been given to the PAC that high-calibre appointments would be made to the human resources post and director of finance post. Reports on job evaluation and other issues highlighted a lack of expertise in those areas.

As regard asset-stripping, the Minister met the chief executives of the boards on Monday morning. ESA will largely be made up of people who have moved across from the education and library boards. The boards will largely be responsible for the delivery of services until 1 January 2010. It is in nobody’s interest for ESA to “asset-strip” boards by moving people thereby leaving gaps in delivery. If people in the board structure are successful in their application for a post in ESA — whether they be second or third level — we will have to adopt a clever management approach to deal with the situation. We must first ensure that they are not removed from their day job any earlier than need be, and we must work out a sophisticated system in the autumn when staff move posts.

We must be very careful, because this transition is not about asset-stripping. The first step is to identify who will hold the posts in the future. The second is to figure out how to, in a sense, migrate from managing the current situation to managing future changes. However, we know that we must not suddenly pluck successful applicants out of the system on a given date, thereby leaving the boards beleaguered in the last months of transition. That is by no means our intention; such a move would not help ESA or us.

Business continuity, which has been flagged up, will be critical over the next 10 months. We have already said that there must be a careful balance between managing existing services and supporting schools and getting ready for ESA. We must ensure that the second does not prejudice the first. It will not be a matter of asset-stripping, Michelle. It will be about allowing people to apply for the posts — and, of course, people are free to apply — getting some certainty about who will do certain jobs and then working out how they migrate over and when.

Miss McIlveen:

At the same time, you do not want anyone to feel that they cannot apply for those posts.

Mr McGrath:

The matter will have to be very carefully managed, for the reasons that you have outlined. The earlier we know who will fill the posts in ESA, the better — even if those people are not actually in post. That is important.

Miss McIlveen:

There is mention of business changes, and you talked about the seven main functions and a process that would last three to five years. Do you foresee a post being established so that someone can oversee that change?

Mr McGrath:

Gavin Boyd is making a strong case, based on empirical evidence, that it is a significant challenge for any organisation to weld more than five organisations together, create new structures, build in the identity of the new organisation and then set strategic targets so that everyone is moving in the same direction.

Books have been written about managing change. In the early years, there must be someone whose job is to oversee that process of change in the organisation and to get systems built in and bedded down. There may a post that reports to the chief executive for the first three or four years of ESA, but when systems have sufficiently bedded down, that post would not be needed. Change does not end on 1 January next year: it starts then. We will have to look at how far the transformation from the boards and the organisations into a single cohesive body has progressed. That is an issue that the Committee will want to be reassured on.

It would be a time-limited post that will not, however, be a part of the permanent structure.

The Chairperson:

Paragraph 17 states:

“The Department’s initial thinking is that a configuration of six units (one covering the greater Belfast area and five others)”.

In his presentation Gavin Boyd said that ESA had envisaged 11 units.

Mr McGrath:

I do not wish to talk behind anyone’s back. However, at that time ESA might have thought that such a structure should be compatible with 11 local authority areas.

The Chairperson:

Gavin showed us a diagram setting that out.

Mr McGrath:

If Gavin were here, I imagine that he would say that that is one option. The Department’s view is that we need to strike a balance between having a local structure that is sensitive and coterminous with local government and also cost effective. We envisaged that each would be headed by a senior manager, as they will be doing an important job.

However, we need to strike a balance between a decentralised structure with 11 offices —which would complicate the reporting relationships in ESA — and cater for local sensitivities. Therefore a six-unit model, five of which would dual two of the new district councils and one of which would be in Belfast, is preferable. Which council areas would be paired is an issue for further discussion. Many of the deep-seated issues of school improvement and performance concern Belfast, and we need a focus on that. That is not to say that there are not significant issues about performance elsewhere. The six-unit model strikes the right balance between local sensitivities and keeping management costs sensible without over-complicating the structure of the organisation. That is within the parameters that the Department has given ESA and will limit senior management costs in future.

The Chairperson:

Where is the thinking on children’s services? Three options were given originally. How many posts will be needed to deliver children’s services?

Mr McGrath:

There should be a second-level post in charge of children’s services, which will be one of the primary posts in the system relating to quality and standard of service. We have not yet considered the structure below that post, but children’s services will fit into the role of the local offices. ESA is setting up two groups to advise it: one on education quality and another on children’s services.

Mr Stewart:

Members will know the background and the concept of children’s services. It originated in England in response to several serious cases of child abuse, including the Victoria Climbié case. It is not a direct read-across to Northern Ireland. However, the key point about directors of children’s services in any organisation is not about the quantum but — uniquely in this case — the level of the post. He or she must be at a sufficient level in the organisation to have the clout necessary to ensure that the difficulties and deficiencies revealed by the Climbié case and similar cases do not occur here.

Those difficulties include issues that fall between stools, a lack of sharing of information, and a lack of co-ordination within, between and across organisations. The issue, therefore, is having someone at sufficient level in the organisation to pull the levers and ensure that that cannot happen. That is why thinking has evolved to show a particular focus on the second tier.

Mr McCausland:

I welcome John’s assurance that the Department will act in a way that is clever and sophisticated.

Mr Stewart:

There is nothing new in that.

Mr McCausland:

It is a novel approach, and one that the Committee welcomes.

Paragraph 16 of your submission states:

“Local managers and service staff will have the flexibility to respond to specific local circumstances and need. They will be sensitive to and receive input from a committee for that area comprising, amongst others, a number of elected representatives.”

What do you mean by:

“They will be sensitive to and receive input from”?

Mr McGrath:

It means that a range of functions would be provided locally to the education system, including schools, statutory and non-statutory youth providers, and so forth. However, they will also act as the local front offices of the ESA, they will be expected to connect and interrelate with local representatives and other service providers.

Mr McCausland:

What power will the local committee have?

Mr McGrath:

The committee will be largely advisory, but it is a question of striking a balance. The model for the committee may be based on bodies such as the district policing partnerships (DPPs) — and I use that model carefully — which are there to advise the system. It is not a central decision-making body. I am trying to find a body in the pantheon of local bodies with which to draw a comparison. It will identify the challenges and the particular circumstances of a local area, of which ESA and its parent organisation must take account.

Mr McCausland:

Staff in a local office will take decisions, and they will probably be advised by a local committee. However, they can ignore that advice, in the same way that the police often ignore the advice of a DPP.

Mr Stewart:

Perhaps the key difference is that this committee, unlike a DPP, is part of the organisations, and I do not think that it can, therefore, be ignored. The formal power of a committee would depend on which, if any, formal functions are delegated to it from the ESA.

Mr McCausland:

At what point would that be decided?

Mr Stewart:

We would welcome the Committee’s views on that; it is not set in stone. As John said, we must strike the right balance: on the one hand, this is not intended to be a federated model, and we do not intend to move from five boards to six or 11 boards. On the other hand, there is a genuine recognition that for this sort of model to work properly, those committees cannot be ignored. The representatives of local communities and locally elected representatives must have sufficient influence over what is happening at that level. Otherwise, the structure would be a waste of time.

Therefore, we want to strike the right balance, and we welcome the Committee’s views on what functions the committee have and what decisions should it make. How far beyond the role of advice ought it to go?

Mr McCausland:

Might it go beyond being merely advisory?

Mr Stewart:

The legislation allows for that; it allows for functions to be delegated to the committee. However, the key point is that the committee is not, in any sense, a separate organisation acting off its own bat; it remains functionally part of the ESA. Anything that a committee does or says, it doesan says in the name of, and as part of, the ESA.

Mr McCausland:

I am interested in the possibility that its role might be more than simply advisory, because that has not been clear until now.

Paragraph 17 mentions:

“six units (one covering greater the greater Belfast area and five others)”.

I understand that grouping 11 councils into pairs results in five units, but does “greater Belfast area” refer to the Belfast council area as it emerges, or might it not necessarily be totally coterminous with that?

Mr McGrath:

Our starting premise will be that it should be based on the new Belfast district council area.

An issue with area-based planning is that several areas will straddle the boundaries. However, we suspect that that would be the case regardless of where the boundary is cut. That is something that is facing other Departments as well as education. In the current Belfast area, there were planning issues concerning Poleglass and Newtownabbey. It would take a strong argument to convince us that we should not stick to the new Belfast district council area.

Planning work has to be done on a cross-boundary basis. Two or three of the area offices might be engaged in strategic planning; the travel-to-school patterns, for example, do not adhere to administrative boundaries.

Mr McCausland:

Have you any indication of what percentage of the activities and expenditure that are currently dealt with by the individual board would remain at a local level? Human resources, pay systems and so on will be centralised, but hat percentage of activity will continue to be delivered at a local level?

Mr McGrath:

I cannot give you a figure because thinking on area offices is still developing. It may well be that there will be a change in the pattern of spending within boards.

Mr McCausland:

I am not seeking an exact figure such as 36·9%, but is it a half, a quarter or three quarters? I want you to make a guesstimate.

Mr McGrath:

We will need to come back to you on that, Nelson. The thinking is that local area offices will have a number of functions, including dealing with standards and school improvement. Ken Robinson might comment on this point, but the view is that anyone who is talking to schools about standards must have credibility. The model might be a principal who is on secondment to ESA, and the budget for school improvement would be devolved locally to deal with that.

There will be an arm that deals with area-based planning. The area teams will have to undertake several area-based planning exercises because, for example, travel-to-school areas will be much smaller than some of the other areas. There will be a range of direct educational-support mechanisms, including education welfare officers, educational psychologists, help for literacy and numeracy, and child protection. The current CAS budgets will be disaggregated and reshaped to the fit the commissioning model that we talked about earlier. There will be support for a linkage with youth in early-years education.

There will be management support and a finance support function in the local management of schools. There will be human resources capability to help schools on local issues of recruitment and discipline. Some elements of the function area will even be available locally.

Mr McCausland:

Consider, for example, a building on Academey Street in Belfast that has x number of staff carrying out a range of activities. What presence will remain in that building if these plans come to fruition? Will a similar number of people be employed there? We are trying to get a sense of what situation you envisage. When will it become clear how the process will work out?

Mr McGrath:

It will be a while before that becomes clear, but there are two strands. As Gavin Boyd has explained, the education and skills authority’s thinking is that centralised functions reflect its current footprint. For example, finance could be centralised in Ballymena; human resources could be centralised in Omagh; the teachers’ payroll is already based in Derry; something else could be centralised in Armagh; and there could be a centralised function between the south-east and Belfast. Therefore, some of that would remain under the new model. There would also be an area office for Belfast, which might be —

Mr McCausland:

It is the area offices that I am talking about.

Mr McGrath:

We do not anticipate the area offices being big — they will have, perhaps, 50 people in them. Those offices will have budgets and will be dealing with the support for the local management of schools; that is, the services that need to be available locally. Subsidiarity is important — we must provide services locally in order to support schools, but those services that do not need to be available locally should be centralised. Doing so will produce economies of scale and will mean that the services benefit from more professional oversight and management.

Mr Stewart:

Some services may move out of Academy Street, but they will not all necessarily move centrally — some may move more locally. I am sure that the Committee is aware of the good examples that exist of services that have been developed by particular learning communities, where groups of schools have developed services, functions, and activities that call for staff to be recruited and based in the schools. As we move beyond the Curriculum Advisory and Support Services (CASS) into school-led self-development and self-improvement, we see a lot of scope for that model. Therefore, some services that are currently based at Academy Street will end up being provided out in the schools.

Mr McCausland:

I have no problem with that; there are services that should be moved from what are currently boards into schools.

Mr McGrath:

What do you have in mind, Nelson? I think that we are talking the same language.

Mr McCausland:

I agree that a conversation should be had about that, but not necessarily this morning.

Mr McGrath:

The idea is that the services that need to be available locally to help support schools should be available locally, which is why some elements of finance and human resources will be available locally, services relating to recruitment, discipline, and absence management, for example. The big machine elements — for example, payroll and awards — can be centralised.

Mr McCausland:

People are familiar with the current system because it has been there for some 30 years. It would be helpful is to have some indication of what a typical board will be like. That is why I am asking about percentages — I want to know what is moving up, what is moving down, and what is left sitting there. That would help us to develop a better understanding of what the system might be like and the implications of that.

Mr McGrath:

I understand your point, but the problem is that in the case of Belfast, for example, some people are probably not based in Academy Street, which makes it difficult to calculate figures for before and after. I hope that, before too long, we will be able to provide an embryonic idea of the structures that might exist in an area office, which should help.

The Chairperson:

You must be pretty near that stage, because you mentioned going out to consultation and having some of this in place by February —

Mr McGrath:

It has been an iterative process and we are still testing because, to be frank, I have been in the Department for almost 12 months and the whole issue of local presence and sensitivities has moved on significantly in that time. That issue was not on the radar as much when I joined the Department, the concerns were about the money agenda and centralising. However, the issue of local sensitivity and local support has come much more to the fore because the Minister has put it to the fore and it fits with the whole issue of standards. A lot of elements are in train currently; the issue is not signed off.

ESAIT will go out to consultation shortly and I am quite happy to return to the Committee before too long — perhaps with Gavin — to try to paint a more detailed picture of that. The scheme is on the cusp of being realised; we are simply fine-tuning a lot of the detail. We need to feed in how area-based planning will work — an issue that I know that the Committee will want to discuss; examine what skills are needed to do that locally; find the balance between local presence and engagement; and undertake core pieces of research, analysis and number crunching about how we do that.

I see area-based planning as an issue that the area offices will have a major role on and that will be very labour-intensive. It is not just education providers who will want to know about this issue — local communities will also want to know about it. It will be very time intensive so we need to factor that in to the thinking. We are developing that but will want to come back to it pretty quickly, because — as you pointed out to us previously — the more that we paint the picture and fill the gaps, the more that that will help Committee members to understand what we are about, which is something that we take very seriously.

Therefore, we want to be able to add quickly to the information that we have given today. I am not sure whether we have the precise number analysis that you would like. However, we could, perhaps, look at a hypothetical board and imagine which functions might go in which direction in the future. If the Committee wishes, we will talk to ESAIT to see whether we can do that, if the Committee thinks that that it would be helpful.

Mr McCausland:

Could that be done in the next few weeks?

Mr McGrath:

Yes, of course. The structure of ESA and the functions of the area offices should be put out for consultation soon, as Michelle McIlveen said. We need to be explaining what the area offices will do. We want to be explaining more. Although we are explaining to the Committee, we also want to be explaining and filling in the gaps much more for the wider stakeholders. That is one of the issues that Joe Reynolds is on board to help us to do in the period up to the spring.

The Chairperson:

We could table a motion for the Assembly and maybe get the information on the day before.

Mrs M Bradley:

It could be rushed through.

The Chairperson:

Not that I am not a cynic, by the way.

Mr O’Dowd:

We would have to make sure that the Irish version was available.

Mr McCausland:

Yes, for Michelle.

Mr B McCrea:

The Ulster Unionist Party has deep-seated concerns that this is a triumph of process over policy. We do not think that there is agreement on what the policies should be and that some sort of mechanism has been arranged in lieu of that agreement. It does not seem right that regions should be divided on a geographic basis. Inner cities provide a big challenge, so I wonder why the Department takes Belfast as a council area and lumps all the schools in together, because some schools are in challenging inner city areas and others, such as Grosvenor Grammar School, that straddle borders.

If you had told me that Northern Ireland has a population of only 1·8 million people and that that is why we could afford to have one regional body, and why ESA works — despite what was being said by colleagues from Londonderry — I could, perhaps, have understood the intellectual thinking behind that. I though that the essence of this process was about removing duplication. Yet, we are just going to go back in and do the same thing again. There will, effectively, still be five boards.

Mr McGrath shakes his head, but he must recognise that there is a dichotomy in the views that I am expressing. On the one hand you say that ESA will police the system, look at standards and control the problems that were highlighted in the PAC report on numeracy and literacy. On the other hand, we talk about decentralisation and about getting as many resources as possible to the school level. I view those as being inconsistent.

With regard to local involvement and political input, I do not particularly want local councillors involved in the issue. The changes that you are trying to bring about have a political — with a small ‘p’ — connotation. If you do not get on board the views of everyone, you are not going anywhere with this. I see no mechanism in the new arrangements to get those views on board; in fact, I see a mechanism to sidestep what are the widely held views of different political parties, because one particular grouping may be in the ascendancy at this time. I am looking for a mechanism that ensures these matters are not run roughshod over the views of a lot of people.

Mr McGrath:

ESA is a public body to deliver public policies, as signed off by the Assembly and the Minister. The political level and political process have to determine the policies. ESA can only take them and deliver. With regard to your point about boundaries, you are correct in saying that it is a small population, and I am not sure whether we made it clear if we can afford a model with at least five organisations all doing things differently in such a small population. If everything was being done consistently, there might have been a different debate.

I made the point that there are differences, and the challenge about school improvements in particular circumstances presents differently in inner city Belfast than in some rural areas. Therefore, in each area office, the profile of school improvement, as opposed to raising standards, will be different. In some areas of Belfast, it will be the major issue, elsewhere it will be a problem but not the major issue compared with the balance of staffing. However, no matter where the administrative boundary is drawn, there will always be a problem that crosses it, whether it is in health or in education.

Mr B McCrea:

I hope that you do not mind me saying, but that is why drawing boundaries on a geographic basis seems illogical. If you had said to me that numeracy and literacy is a core issue cutting across the entire 1·8 million of the population, albeit focused on various areas, I could understand a body being set up to deal with numeracy and literacy, or if you had said that the Department understands the problems about early years and that it wants to have an early years strategy across Northern Ireland —

Mr McGrath:

Which we are working on.

Mr B McCrea:

Absolutely, but it is form following function. We are carving up what seems to be, and I apologise for saying this, a rehash of the old system, and that is a worry. I will not labour the point, but you need some help.

Mr McGrath:

Yes, but essentially anything that makes this seem as if we are moving from five boards to six or 11 is not what my Minister is about, and it is not in the remit that we have given to ESA. This matter needs to be viewed in tandem with the issues that we discussed with Ken Robinson. It is about putting schools first and enabling them to have as much scope as possible regarding how they shape and go about their business. Therefore, there need to be things that are closer to them. I do not see any contradiction between delegating responsibility to schools and getting more control over their affairs but then holding them to account for delivering standards. There is no contradiction it that. You empower them to do as much as they can, and then you say that you will measure what they have done against benchmarks and expectations.

Mr B McCrea:

I could get into a discussion with you about that, because I do not subscribe to a one-size-fits-all approach. Some schools are operating in very challenging areas and have different sets of standards. Furthermore, I reject free school meals as being a proxy for social deprivation, because many people do not take them up. I look at all those issues to find if there is a system that will help to move things forward, and my personal feeling — and I think that there is some support for this view from the public — is that devolving control to local school leaders, with appropriate financial support, appears to be the way forward. However, all the time I am worried. We will not sort out this issue today, but I am simply telling you our concerns.

It all comes back to the failed command and control structure of a centralised Department or a centralised ESA telling people what to do, standardisation, one-size-fits-all, what happens here will happen there. All of that seems to strip the professionalism away from the teachers and the people who can make developments.

You said that ESA is not really for policy — it is for implementation and that policy happens elsewhere. However, everything is connected. There is no forum for my colleagues and I to influence policy, short of winning the election and taking the position of Minister of Education.

The Chairperson:

You have 20 years. [Laughter.]

Mr B McCrea:

One of the good things about coming from my culture is that I do not mind being in a minority of one, if that is the case, because the truth is still the truth.

When it comes to the issue, therefore, I put to you another challenge, which I am not necessarily expecting you to resolve, because there are other political aspects to it. Nevertheless, I tell you that our biggest concern is that ESA is a Trojan Horse designed to propagate other policies that do not have the agreement of a significant proportion of the population. If ESA is given all of those powers, people will fight battles by proxy, and I do not believe that rationalisation and cost saving — which the Ulster Unionist Party supported in the early stages — will be achieved. However, we are extremely unhappy that ESA is being used for purposes for which it was not originally intended.

Mr McGrath:

The political process by which policy is determined is not for me to comment on. Whether the organisational structure will be ESA, five boards or something else, it will have to deliver whatever policies come down. I cannot offer a view on the political input into that.

The Department favours the points that you made about local sensitivity with regard to the local structures. The approach to tackling issues about standards and school improvement in inner city areas and the mechanisms for that are likely to be different to the approach that is taken in a rural area where schools are not close together and issues of scale are a consideration. Therefore, a policy of school improvement will be set down and driven forward by strategy from the key post at the centre of ESA, but the precise delivery mechanisms may differ depending on the local area and the circumstances.

Particular issues relate to inner city schools in areas such as north Belfast, Shankill and west Belfast. A special push, which might not be needed elsewhere, will be needed from one of those area offices to deal with a significant problem, and school leaders will need to be directly involved in that.

Mr Stewart:

I shall answer Basil McCrea’s earlier point. John has explained why the Department sees the need for local services to be locally based. That lends itself, therefore, to a structure of delivery of services that has a strong geographical element to it, whatever that may be.

However, the legislation is flexible enough that if ESA, for example — or if the Department instructs ESA — needs to take a particular focus on youth services, early-years provision or some other aspect of education delivery, ESA can set up a committee on early-years provision, youth services or on raising standards for the length of time and with the focus that is deemed appropriate to deal with a cross-cutting or thematic issue. The legislation does not bind us to having everything squeezed through a geographical sieve; it is flexible enough to cope with the challenges that are there.

Mr McGrath:

Mr McCrea made a point about free school meals as indicators of social deprivation. The Department will introduce proposals for a longer term review of the common funding formula, and Catríona Ruane is keen to address how to recognise deprivation in the funding formula. That vehicle is available, and, when results come out of that through the political process, ESA’s job will be to distribute funding in line with that.

Not every policy aspect is covered by the legislation. As Chris said, as policies emerge and are signed off, ESA will have to cope and flex itself to deliver that with the appropriate balance between regional strategies and coherence and local flexibility. That needs to be fairly sophisticated, because this is a very complex and sophisticated business. I use that term in a generic sense, because we are trying to improve.

Mr B McCrea:

I want to ensure that you understand the key point. The Ulster Unionist Party does not see the intellectual rationale for having five or six sub-regional bodies. That appears to be an arbitrary decision. If you said that there are different challenges, one could argue that there is an inner city challenge in Belfast, that there is a Belfast travel-to-school challenge and that there is a rural challenge that is separate from those two challenges.

A regional body is required in order to achieve the real economies of scale that have been set out for ESA. The sub-divisions should focus on the challenges that schools face, such as numeracy and literacy, early years, and social deprivation and exclusion. Why has the Department arrived at five plus one as a set of bodies? That is not logical to us. John said that the travel-to-school areas are likely to be different —

Mr McGrath:

But smaller.

Mr B McCrea:

— different to those inner city areas. I personally believe that policy decisions on area-based planning need to be taken in a regional context, because people travel such large distances, and there are other areas in which two schools can be only 500ft apart and yet have completely different demographic intakes and challenges. I have set out those issues in an attempt to be helpful. Our concern is that the new structure will simply be a replication of what went before, and we do not like the look of that.

Mr McGrath:

That is helpful. The education and skills authority is designed to help to support schools. One of the issues that Ken Robinson raised was having support available locally, whether in human resources or school improvements, whereby someone can go and have a dialogue with a group of local principals and suggest that they should have something available to them.

However, it is difficult to pitch where on the spectrum an issue sits between, for example, literacy support or something that is a bit more sub-regionally significant. Basil McCrea essentially summarised that balance. The authority is not six bodies, it is six areas, and, in one sense, it is not unlike the way in which the Housing Executive is organised. It is a regional body with a number of areas. Area managers do a lot of the political connection and facing up, dealing with local councils and representatives. However, policy is set down centrally. ESA is a similar sort of model: it is not six new education and library boards; policy will be set down centrally by the Department; and the delivery of issues such as special educational needs, where there are five different approaches, which is unacceptable, will move towards more coherence.

There are different circumstances, and Basil McCrea has just produced an example of such a difference in travel-to-school. Addressing area-based planning in the Belfast area will present a different set of challenges to those in Fermanagh, which, being a larger county, will be identified as having a larger travel-to-school area, whereas Belfast has a hub-and-spoke model. The solutions may be different, but the same principles about area-based planning are needed and will come out from the centre.

I take Basil McCrea’s point, which is helpful. It is precisely on that spectrum that we all want to get it right: that ESA is a regional organisation, with central policy and guidance from the Department, a consistent approach, and equity and equality with regard to what children get, while having a sensitivity to respond to local needs and circumstances.

Mr Stewart:

That is why we were cautious in our answer to the earlier question about what might be formally delegated to local committees. On the one hand, we must avoid the situation in which a committee could be ignored by a local office. On the other hand, we do not want to bring about the thing that you fear, which is a federated model of six boards. Therefore, the Department must strike the correct balance with regard to what powers would be devolved formally to a committee.

Mr O’Dowd:

My questions have been covered, but perhaps I might comment on Basil McCrea’s previous point. Health and education almost mirror each other in the sense that where there are poor educational outcomes, there are poor health outcomes. If you advance Basil’s argument, the Health and Social Care (Reform) Bill, which was recently passed by the Assembly, would have further broken down the health structure, with a health trust for north and west Belfast, or broken it down even more for west of the Bann in order to zone in on areas of poor health outcomes. As I see it, ESA can, under its structures, be broken down in order to examine areas of poor educational achievement, just as, under the health trusts, it will, hopefully, be possible to zone in on north and west Belfast. Therefore, the ESA structures are not so rigid that they simply apply a one-size-fits-all, as Basil put it.

The other side of your argument leaves us with the prospect of having not five or six new boards, but 950 boards — one for each primary school in the North. If each primary school were allowed to set its own educational agenda, there would be 950 different outcomes instead of one centralised outcome. That can not be done for the same reason as the Health Minister does not allow doctors and nurses in each hospital or health centre to set health policy.

They implement, and are key to, the health policy, but there needs to be a centralised direction, which must also be as democratically accountable and as responsive as possible to the needs of local communities. Under ESA, that is possible, because the majority of members of the board of that authority would be political representatives. The local communities would have their political representatives. Nelson McCausland’s point about what heed senior management must take of the committee needs to be expanded and further explored.

Mr B McCrea:

I think that I have obviously not made my position sufficiently clear: I was not going down the route of having 950 individual boards; I was going in the other direction. The idea of having a regional body is an interesting one, because many of the issues, such as area-based planning, have regional implications. If a solution is provided for Downpatrick, for example, that will have an impact on the intake of schools in Belfast, because some pupils currently travel from Downpatrick to Belfast. My view is along the lines of give onto Caesar what is Caesar’s; that is, certain issues must be dealt with on a regional basis, while others must be dealt with on a topical basis, because the geography is not relevant.

Mr McGrath:

There is nothing in the structure which means that that cannot happen.

Mr B McCrea:

I just wanted to make that clear, because John O’Dowd was, perhaps, thinking that I was heading in a particular direction. My view is that the Ulster Unionist Party supported a regional body because Northern Ireland is a relatively small area with a relatively small population, and it is possible to do it on a regional basis. However, one then gets into situations in which, quite patently, that sometimes does not work due to different regional variations.

I want someone to tell me the guiding principles, in which everyone’s views are respected and worked out. A process that works properly can then be devised. In other words, we should try to get the cart behind the horse, not in front of it. My worry is that, in the absence of having worked out those guiding principles, we come up with a set of rules, which is almost like shaking dice and seeing what way things fall out. I do not believe that that is helpful.

I apologise, therefore, if I did not express myself properly at the outset. I agree with John O’Dowd that there must be a tie-in with health, because the inequalities in each sector are linked, and there is also an interesting point with regard to regional structures.

Mr McGrath:

John O’Dowd made a very good point. The other dimension in all of this is what happens when the RPA of local government occurs and community planning rolls out. Health inequalities cannot be dealt with in isolation from wider issues. Forums are required, and the Department believes that the structure of ESA offers the potential for community-level planning into which the education aspect can slot neatly. Furthermore, the structure will also allow for someone of sufficient calibre to be available to contribute to the wider process from an educational perspective, in relation to the health perspective. Whether each sector should have exactly the same boundaries is always an issue and is never right.

Basil McCrea is quite right in saying that an area-based planning exercise around Belfast would be of sufficient weight that it would not be done by the Belfast office alone, because it would have such significant knock-on implications that it would probably be centrally led within ESA and have to be signed off at a very senior level. An area-based planning exercise for somewhere such as Fermanagh or Coleraine would be much more self-contained within that area, and could probably be led locally. However, it would still have to be signed off centrally in order to ensure that it met the central principles governing area-based planning, and did not have repercussive implications that were not spotted locally.

That is how that balance would be achieved. It is not a do-it-yourself-locally thing. It is a question of balance. Whether tackling health inequalities or wider issues of deprivation, a joined-up public sector approach is required. That is not easy to do, under even the current structures, and ESA offers the potential to achieve that.

In my previous work in the Department for Social Development, we tried to pull the various factors together. If I may cite one example: we did work at Dunclug a couple of years ago, and, from the education sector alone, one had to get someone from the CCMS, someone from youth services and so on, and one would end up with four people in the room to deal with just the education bit. Under this model, however, the person leading the local area office is the front person in education, with, for example, the chief executive of the local trust or council. That is where you begin to get some of the advantages of the new model.

The Chairperson:

I want to tease that out: it is vital that there are public representatives on the, for want of a better phrase, local committee. However, how do we then define the key stakeholders, who they are and how they get onto that committee? What we do not want is a local strategic partnership (LSP) Mark II, when everyone came and said: ‘That is fine, lovely, great but I am sorry, I cannot make a decision on that because that is outside the remit of my Department’, and it becomes pointless.

Mr McGrath:

I understand exactly where you mean.

The Chairperson:

If that local committee does not have the power to make a decision, one wonders why bother getting everyone around the table in the first place, because paragraph 5 of the document entitled ‘Structure of the education and skills authority at regional and local levels’ – which is, I suppose, directed at the board – states that::

“The Minister, through her Department, will direct the work of the ESA Board.”

If the Minister does not give direction to the board, and if the board does not delegate power to the local committee, we will all be shaking our heads and saying that we disagree, but nothing could be changed.

Mr McGrath:

I understand exactly. However, the LSP was, in a sense, a collection of representatives of every stakeholder. These committees will be committees of ESA. There will not necessarily be officials from other public bodies on the committee, because that would be mixing up governance issues.

The Chairperson:

Do you understand the rationale behind my question?

Mr McGrath:

I understand exactly.

The Chairperson:

How will we identify who is a key stakeholder in a local area and is best suited to sit on a local committee? Taking the point that Basil McCrea and John O’Dowd made about the crossover between education and health, there is a big issue there, because we have all visited schools in which there are problems with, say, getting psychologists into schools each side of the current provision that is made by the Department.

Mr McGrath:

I think that one has to be very careful. These are committees of ESA, and I am not sure that officials from other public bodies would sit on them, because that would put them in a difficult position. In my view, the key stakeholders begin with the community — the people that we are trying to serve — followed by schools and other bodies. Within youth and early-years services, there is a large voluntary representation. One would want to involve those who are more closely connected. The local committee must reflect the community — the pupils and the parents — rather than institutional stakeholders.

You are right; further work is needed, but you have highlighted some of the issues about which we need to be very careful.

Mr McCausland:

You say ‘we need to be very careful’: I think that there are questions around who would represent the interests of parents and the community. Those matters must be teased out very carefully.

Mr McGrath:

I know, but I just meant that, at times, stakeholders are seen as just schools and some sector representatives. In my view, the principal people that we are trying to serve are communities and children and pupils.

I understand the point that you make about determining who are to be the representatives of those groups, but they should not be populated with the providers, rather than the users, of the services.

Mr McCausland:

That is fine.

The Chairperson:

Is there any paper or emerging thinking that you could provide to the Committee to help that process? Has ESA done anything in regard to that?

Mr McGrath:

To be honest, I do not think there is a lot in stock on that issue. We are grappling with the issues that have been well articulated by Basil McCrea regarding how a balance can be achieved between local sensitivity without diluting the advantages of a regional body, and without confusing decision making or mixing up accountability, which can lead to trouble. The factors that were flagged up about the role of the committee and the delegations will need to be addressed. Today’s meeting has been helpful, because issues were raised that had not yet come into our ken. The Department will do some work on those and bring back a think-piece paper on the committees.

Mr Stewart:

You have given us two areas on which such work clearly needs to be done and more detail produced. One is more detail on the precise delivery functions at the local level, and the other on what those committees will do, who will be on them, and how they will get there.

The Chairperson:

That would be very useful. I have purposely allowed the discussion on the first paper to carry on rather than moving to discuss the second paper. If members agree, and if John McGrath is happy with that, we will deal with the second paper, on the sectoral bodies, next week.

Mr McGrath:

I am quite happy with that.

The Chairperson:

I am conscious of the time, but I want these sessions to be focused and beneficial, and we have stuck reasonably well to dealing with the paper, for which I commend members. I know that Trevor will do the same.

Mr Lunn:

Of course I will. I want to ask about the establishment of the organisational structure as outlined in the paper. If recruitment is to begin in early spring, does that mean that senior people will be recruited before ESA has been legally established?

Mr McGrath:

The ideal is that we are not actually appointing people. The recruitment process can be started, but people cannot be appointed until the Bill is, ideally, on the statute book, or is in such a condition that it is clear that it will be on the statute book. There is a balance to be struck. The target date is 1 January 2009, and people will have to be appointed so that there is an organisation to pick up the reins on that date. Therefore, there are difficult judgments to be made with regard to balancing the implications of a political process, the scrutiny of this Committee and the Assembly in general, and taking some preparatory steps.

Advertisements will be placed, but it is only when someone is appointed that a definitive decision has been taken. In the same way, as I have mentioned, for the sake of openness we need to identify the chairperson-designate for ESA at an early stage, because the chairperson should, ideally, have a role in the appointment of senior executives, so one would want him or her to be in place. The chairperson should also be involved in the appointment process of the members of the authority, in line with the practice for commissioners. Therefore, the Department is now looking to start a process to identify a chairperson, but it could be June before that process has culminated. However, some of those processes must be started.

The Chairperson:

Who would appoint the chairperson?

Mr Lunn:

Presumably the Minister will appoint the chairperson. On the issue of appointing staff, I presume that we are talking about the 50 senior staff to which the paper on the structure of ESA refers. I believe that there was a suggestion earlier that they would come mostly from within the existing education and library boards. However, some will not: staff in the boards may be reluctant even to apply until they see what way the whole thing is going. It is not certain that ESA will be established, although I would like to think it will be.

Mr McGrath:

The point is that something needs to be done, because if it is established on 1 January, everyone, including the Committee, will be exercised to ensure that it is ready to pick up the mantle. We spoke earlier of asset stripping, as Michelle McIlveen termed it. There must be a balance. We must start some processes and then make a judgement to finish them. For example, are people appointed formally or on another basis?

Gavin Boyd has been chief executive-designate of ESA for a significant period because he did not envisage this delay. Under a different scenario, if there was no ESA then that status would end. We would want to appoint a chairperson, or a chairperson-designate, subject to the Assembly passing the Bill. We should do everything in the proper sequence for the 1 January date. The Department has put together a fairly detailed and critical path, which is still being refined, listing everything that needs to be done in order to get ESA up and running. It is highly challenging, and slippage on one item will have a knock-on effect. For example, if there is no chairperson to participate in the recruitment of senior posts, that will be delayed, which will delay the appointment of members, and the structure will be up and running.

At the same time, we have serious concerns about the position in boards as a result of the uncertainty to date, which has people voting with their feet and moving to other jobs in other organisations because they did not have the certainty of ESA coming along and applying for positions there. We need, therefore, to send signals to the recruitment market. Senior posts will be advertised in line with the Public Service Commission’s guidelines on the review of public administration. There will be due process within the parameters set and the outcome will be the most appropriate that can be achieved within a proper recruitment process. The expectation is that a number of those working in the current system will be successful, but there is no automatic presumption: it will depend on the outcome of the recruitment process. In some areas, it may well be that there is not the same reservoir, because with regard to age profile, a lot of people are part of the present – they will choose not to be part of the future.

Mr Stewart:

I will add some detail to that in order to reassure Trevor Lunn further. We do not in any way ignore the democratic process, or anticipate the will of the Assembly. As John McGrath has said, however, the practicalities demand that certain processes have to get under way now.

There are rules that govern this: we can take certain action at only certain points in the process. It would be entirely wrong to move on the appointment of a chairperson or members of ESA before the Bill had proceeded to Second Stage. The Department of Finance and Personnel’s rules on financial guidance and accountability state that it is legitimate for us to incur expenditure in the appointment of staff at this stage, and to take steps related to the appointments now that the Second Stage of the Bill has been reached. That does not mean that there is any guarantee that this will go ahead. Therefore, we must take steps to manage the risk involved in doing that. We cannot at present appoint senior staff to ESA, because ESA does not exist. If we appointed staff at present, it would have to be, as John McGrath said, on a designate basis and to an existing organisation — the Department or one of the existing education organisations.

That might provide a part of the answer to Michelle McIlveen’s question on asset-stripping. If senior appointments are made in advance of 1 January 2010, then those staff could be based, initially, in one of the existing organisations and combine their new role with a transitional role in that existing organisation.

A further risk-management arrangement would be to make the appointments, initially, on a secondment basis. Then, in extremis, if the Assembly decides to vote down the Bill and not to proceed with the review of public administration, the secondments would be ended and the staff would return to their original organisations. We would still have incurred expenditure, but only nugatory expenditure, and we would have managed the risk to highest possible degree.

Mr Lunn:

If we could move on to the authority itself and the appointment of members and chairperson: if the Assembly decides to amend the requirements for members of the authority, particularly that the majority of them should be local councillors — and I believe that only the Alliance Party is absolutely certain that that is a bad thing; however, we are very important, you know —

Mr B McCrea:

I think that you got a little support from others on that matter.

Mr Lunn:

If we managed to persuade the Assembly that that is not a good thing, is it possible that the Minister and the Department would have already moved ahead and appointed members-designate, so to speak?

Mr McGrath:

Given that a chairperson-designate would need to be appointed in order to participate in the process of identifying members, it is unlikely that the process to appoint members would begin until after the summer. Therefore, I imagine that if any detailed changes were made, we would know about them.

Appointments are appointments, as opposed to jobs. If it turned out that the nature of those appointments no longer existed, there would be scope for the Minister to terminate them. Appointments are not the same as jobs, whereby it would be too late to terminate the appointment if someone was already in post. People would be appointed on the basis that they would take up a post at ESA if the structure of the authority was as originally intended. If that structure changed, the matter would be orchestrated in such a way that the appointments would lapse or would have to be made again. It is a process that can be refined very easily. Appointments are easier: they are not jobs; they are appointments made at the Minister’s discretion.

Mr Stewart:

They can be un-appointed.

Mr McGrath:

They can be un-appointed.

Mr Lunn:

I might stand down from my position as a councillor and join that.

Ms McIlveen:

I want to return to a point that Trevor Lunn made with regard to appointments. Would the situation be similar to that of area-based planning groups, whereby the Minister simply taps someone on the shoulder, or will there be open recruitment?

Mr McGrath:

No. The Office of the Commissioner for Public Appointments has very clear guidance. Any of those appointments – for example, the chairperson – will be widely advertised publicly. People will apply and will receive a job description, et cetera. They must submit an application form. Application forms will be scrutinised in the first place with an assessor who has been identified by the Office of the Commissioner for Public Appointments. In that case, for each competition, an assessor is identified and chosen by the commissioner. The Department does not choose the assessor. That individual is there to ensure that the process is conducted properly.

From that process, those candidates who meet basic eligibility requirements will be interviewed by a panel which, again, includes an assessor from the Office of the Commissioner for Public Appointments. That will result in the selection of the names of those deemed fit to do the job – the key principle which the commissioner must ensure – which will go to the Minister, who can choose one of them or instruct us to start the process again. No Minister can appoint anyone who, under the commissioner’s rules, is not judged to be up to the job.

Ms McIlveen:

Presumably, those positions will be time-bound and reviewed after certain periods? There will not be a situation in which the same board remains in post for life.

Mr McGrath:

No. A term would normally three or four years. The commissioner’s rule is that no one should normally do more than two terms. When a board is appointed, the convention is that a stagger is built in whereby there would not be a date when all members would stand down and a completely fresh board appointed. Some people would, for example, be appointed for four years and then another two, and others for four years followed by another four, while some would stand down after four years and there would be rolling membership. That is the convention, and it is carefully orchestrated and scrutinised by the commissioner’s office.

Ms McIlveen:

The remuneration will, presumably, not be too extensive. Will members be paid a wage? Obviously, the role will carry heavy responsibility.

Mr McGrath:

There will be remuneration, which would take account of the role. ESA will be a major public-sector body.

Ms McIlveen:

I would be concerned that members would, essentially, be on a wage that competes with that of the chief executive.

Mr McGrath:

No, we are very clear on that matter: the entire process to identify chairpersons and board members is designed to test their understanding of what non-executives do on a board, as opposed to executives, and that they understand the balance of boards. Their role is to scrutinise and challenge. They are not there to run the organisation on a day-to-day basis. The critical test in any such competitions is to understand corporate governance and the role of non-executives. The principal role of a chairperson is to manage and hold to account the chief executive and other executives.

We can return to that issue. When the proposals come out, we will be happy to talk, but this is a well-trodden path across the public sector.

Mr McCausland:

When do you expect to start the process of appointing a chairperson? Do you already have the job description and personnel specifications?

Mr McGrath:

The Department is working on such material to bring to the Minister about the critical path. It would be our advice that we need to start the process soon by publishing advertisements and so on with a view that it could well be May or June at the earliest before we would be in a position to appoint someone. Even the appointment would be on a chairperson-designate basis subject to the organisation’s coming into existence. Therefore, we need to start soon because it takes time to get to the position of having a chairperson ready to step into place at the appropriate time.

Mr K Robinson:

The Library Authority has already started that process by sending circulars to councils and so forth.

The Chairperson:

The travel-to-school issue was raised several times by members. What work has the Department done on that, and what is its current thinking on that? Perhaps you could prepare a paper for the Committee on the issue.

Mr McGrath:

Travel-to-school is very much in the context of area-based planning, so would that be the framework in which to put it?

The Chairperson:

Yes, exactly. It is not included in the context of this subject, but it has emerged as an issue, and I would like some more detail on it.

Mr McGrath:

That is an issue at which the Department is looking generally. I know that the Committee is interested in it, so we would be happy to bring something back to the Committee in the context of area-based planning.

The Chairperson:

Thank you, John, Chris and Joe. Next week, we will look at the issue of sectoral bodies.

Mr Stewart:

We will also endeavour to supply the Committee next week with the input on employment matters for which is asked, if you wish to address that at the same or at a subsequent session. In any case, we will get it to you in time for next week’s Committee meeting.

The Chairperson:

Thank you.

We will move on. The Committee agreed at its meeting on 10 December 2008 that there would an extension motion on the Bill, which we would consider today. We have until next week at the latest to make a decision on that. We have agreed that there would be a motion to extend the time that we can spend on the consideration as a Committee. You can see the reasons why the Committee needs to take as much time as it possibly can, not to delay the process unduly, but to make sure that the Committee has satisfied itself that the issues of concern are being properly and adequately addressed.

Another reason, which we also discussed at the meeting on 10 December, is that we do not know at this stage what is in the second Bill. If the Department makes sure that that information is brought forward in a due and timely fashion, as it has said that it will be, then I think that that gives us all confidence as we work through this process. It is not about trying to have a delay tactic for the sake of delay; it is to ensure that the integrity of this Committee is maintained and kept intact, and that we have given every possible consideration to all the issues of concern.

Therefore, I ask all members, particularly, I suppose, in relation to the parties, to make sure that we will make a decision by next week. We must decide on the date, and whether it will be before the summer recess or after the summer recess. That decision must be made, because the deadline for moving the motion in the House is 13 February.

The Committee Clerk:

The Assembly must meet in plenary session and debate the motion before 13 February. Therefore, it is imperative for the Committee to put forward its motion by next week.