Northern Ireland Assembly Flax Flower Logo

Session 2008/2009

Seventh Report

PUBLIC ACCOUNTS COMMITTEE

Second Composite Report
on Issues Dealt with
by Correspondence

Together with the Minutes of Proceedings of the Committee
relating to the Report and the Minutes of Evidence

Ordered by The Public Accounts Committee to be printed 15 January 2009

Report: 23/08/09R

REPORT EMBARGOED UNTIL 00.01 AM on Thursday, 5 February 2009

This document is available in a range of alternative formats.
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Northern Ireland Assembly, Printed Paper Office,
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Membership and Powers

The Public Accounts Committee is a Standing Committee established in accordance with Standing Orders under Section 60(3) of the Northern Ireland Act 1998. It is the statutory function of the Public Accounts Committee to consider the accounts and reports of the Comptroller and Auditor General laid before the Assembly.

The Public Accounts Committee is appointed under Assembly Standing Order No. 51 of the Standing Orders for the Northern Ireland Assembly. It has the power to send for persons, papers and records and to report from time to time. Neither the Chairperson nor Deputy Chairperson of the Committee shall be a member of the same political party as the Minister of Finance and Personnel or of any junior minister appointed to the Department of Finance and Personnel.

The Committee has 11 members including a Chairperson and Deputy Chairperson and a quorum of 5.

The membership of the Committee since 9 May 2007 has been as follows:

Mr Paul Maskey*** (Chairperson)
Mr Roy Beggs (Deputy Chairperson)

Mr Thomas Burns**             Mr Trevor Lunn
Mr Jonathan Craig                Mr Mitchel McLaughlin
Mr John Dallat                      Ms Dawn Purvis
Mr George Robinson****     Mr Jim Wells*
Mr Jim Shannon*****

* Mr Mickey Brady replaced Mr Willie Clarke on 1 October 2007
* Mr Ian McCrea replaced Mr Mickey Brady on 21 January 2008
* Mr Jim Wells replaced Mr Ian McCrea on 26 May 2008
** Mr Thomas Burns replaced Mr Patsy McGlone on 4 March 2008
***Mr Paul Maskey replaced Mr John O’Dowd on 20 May 2008
****Mr George Robinson replaced Mr Simon Hamilton on 15 September 2008
*****Mr Jim Shannon replaced Mr David Hilditch on 15 September 2008

Table of Contents

List of abbreviations used in the Report

Report

Executive Summary

Introduction

Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure (HC 79)

Insolvency and the Conduct of Directors (HC 816)

Collections Management in the Arts Council of Northern Ireland (HC 1541)

The Fire and Rescue Service Training Centre (HC 80)

The Management of Surplus Land and Property in the Health Estate (HC 298)

Memorandum of Reply: Department of the Environment: Northern Ireland’s Waste Management Strategy (HC 88)

Memorandum of Reply: Improving Numeracy and Literacy in Schools (HC 953)

Appendix 1

Minutes of Proceedings of the Committee Relating to the Report

Appendix 2

Correspondence

(a) Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure (HC 79)

Chairperson’s letter of 27 June 2008 to Mr Leo O’Reilly, Accounting Officer, Department of Finance and Personnel

Correspondence of 25 July 2008 from Mr Leo O’Reilly, Accounting Officer, Department of Finance and Personnel

Chairperson’s letter of 25 November 2008 to Mr Leo O’Reilly, Accounting Officer, Department of Finance and Personnel

(b) Insolvency and the Conduct of Directors (HC 816)

Chairperson’s letter of 29 September 2008 to Mr Stephen Quinn, Accounting Officer, Department of Enterprise, Trade and Investment

Correspondence of 30 October 2008 from Mr Stephen Quinn, Accounting Officer, Department of Enterprise, Trade and Investment

Chairperson’s letter of 25 November 2008 to Mr Stephen Quinn, Accounting Officer, Department of Enterprise, Trade and Investment

(c) Collections Management in the Arts Council of Northern Ireland (HC 1541)

Chairperson’s letter of 29 September 2008 to Mr Paul Sweeney, Accounting Officer, Department of Culture, Arts and Leisure

Correspondence of 27 October 2008 from Mr Paul Sweeney, Accounting Officer, Department of Culture, Arts and Leisure

Chairperson’s letter of 25 November 2008 to Mr Paul Sweeney, Accounting Officer, Department of Culture, Arts and Leisure

(d) The Fire and Rescue Service Training Centre (HC 80)

(e) The Management of Surplus Land and Property in the Health Estate (HC 298)

Chairperson’s letter of 29 September 2008 to Dr Andrew McCormick, Accounting Officer, Department of Health, Social Services and Public Safety

Correspondence of 23 October 2008 from Dr Andrew McCormick, Accounting Officer, Department of Health, Social Services and Public Safety

Chairperson’s letter of 25 November 2008 to Dr Andrew McCormick, Accounting Officer, Department of Health, Social Services and Public Safety

(f) Memorandum of Response: Department of the Environment: Northern Ireland’s Waste Management Strategy (HC 88)

Chairperson’s letter of 8 July 2008 to Mr Stephen Peover, Accounting Officer, Department of the Environment

Correspondence of 5 August 2008 from Mr Stephen Peover, Accounting Officer, Department of the Environment

(g) Memorandum of Response: Improving Numeracy and Literacy in Schools (HC 953)

Chairperson’s letter of 27 June 2008 to Mr Will Haire, Accounting Officer, Department of Education

Correspondence of 6 August 2008 from Mr Will Haire, Accounting Officer, Department of Education

Chairperson’s letter of 13 October 2008 to Mr Will Haire, Accounting Officer, Department of Education

Clerk’s letter of 13 October 2008 to Mr John Dowdall CB, Comptroller and Auditor General

Graphs on Literacy and Numeracy provided to the Committee by Mr John Dowall CB, C&AG

List of Abbreviations Used in the Report

NIA Northern Ireland Assembly

NIAO Northern Ireland Audit Office

MOR Memorandum of Reply

C&AG Comptroller and Auditor General

ISINI Investment Strategy for Northern Ireland

RRI Reinvestment and Reform Initiative

DFP Department of Finance and Personnel

SIB Strategic Investment Board

PFI/PPP Public Finance Initiative/Public Private Partnership

RPA Review of Public Administration

OFMDFM Office of the First Minister and deputy First Minister

IDP(s) Investment Delivery Plan(s)

EU European Union

CIFNI Constructive Industry Forum NI

CPD Central Procurement Directorate

DEL Departmental Expenditure Limit

IP(s) Insolvency Practitioner(s)

RPDs Recognised Professional Bodies

GB Great Britain

JIC Joint Insolvency Committee

PPS Partnership Purchase Scheme

DCAL Department of Culture, Arts and Leisure

NIFRS Northern Ireland Fire and Rescue Service

DHSSPS Department of Health, Social Services and Public Safety

PSNI Police Service of Northern Ireland

NIPS Northern Ireland Prison Service

NIO Northern Ireland Office

IPDS Integrated Personal Development System

RDS Retained Duty System

SEN Special Educational Needs

DEL Department for Employment and Learning

NIW Northern Ireland Water

Executive Summary

Introduction

1. Due to the suspension of the Northern Ireland Assembly (NIA) on 15 October 2002 a number of Northren Ireland Audit Office (NIAO) reports were available for the Public Accounts Committee to consider when the NIA resumed in May 2007. The Committee decided that it would not be able to consider all the outstanding reports individually and agreed to take written evidence and report on a number of these reports in a composite report.

2. The Committee decided that this report should consider written evidence on the following NIAO reports:

3. In the Committee’s view the departments have provided full information to support the recommendations in these reports, and members have detailed instances where it has asked the NIAO to follow up an issue or undertake some further work on a particular topic.

4. The Committee also decided to request updates on certain Memoranda of Reply in which departments responded to recommendations in the House of Commons Committee for Public Accounts reports during the suspension of the NIA.

5. The updated information on the recommendations on the Memoranda of Reply (MOR) have been included within this report:

6. The Committee agreed that, in relation to the Waste Management Strategy, the NIAO should include some further work on this issue in its future work programme, and in the case of Improving Literacy and Numeracy in Schools, members have asked the C&AG to convey members’ concerns regarding training and development at Playgroup level and the potential for impact this had on improving numeracy and literacy.

Introduction

1. During the 2007/08 Session, the Public Accounts Committee (the Committee) wrote to the Accounting Officer, Department of Finance and Personnel, on issues arising from the Comptroller & Auditor General’s (C&AG) report Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure on 27 June 2008 and to the relevant Accounting Officers on 29 September 2008 on issues arising from the four further listed reports from the NIAO, for details on what action had been taken on the C&AG’s recommendations:

2. On receipt of each response, the Committee assessed the action taken by the department in order to ensure that it had adequately addressed the findings, conclusions and recommendations of the relevant reports. The results of these assessments are detailed below.

3. The Committee also decided to request an update from departments on the progress against the departments’ responses to the House of Commons Committee of Public Accounts’ conclusions in relation to the following Memoranda of Reply:

4. On receipt of each response, the Committee assessed the action taken by each department in order to ensure that it had adequately addressed its commitment to the recommendations outlined in the Memorandum of Reply. The results of these assessments are detailed below.

Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure (HC 79)

5. The Committee wrote to the Accounting Officer, Department of Finance and Personnel, on 27 June 2008, detailing a number of questions in relation to the above report (see Appendix 2 (a)).

6. The Accounting Officer replied to the Committee on 25 July 2008 providing a full response to the Committee’s questions (see Appendix 2 (a)).

7. The Committee focussed on eleven areas where the NIAO report had highlighted problems, namely:

8. The Accounting Officer responded to the Committee on 25 July 2008. He confirmed that the Investment Strategy for Northern Ireland is the responsibility of the Office of the First Minister and deputy First Minister supported by the Strategic Investment Board, and he has therefore input from that department where relevant. The following is a summary of the response.

OFMDFM and SIB will continue to work with departments to monitor and refine IDPs with a view to improving their quality and value as a planning tool.

(a) ISNI 2008-18 was published in the Assembly on 28 January 2008 set out the Executive’s plans for infrastructure investment over the coming ten years. Although at an appropriately strategic level, the ISNI provides the construction industry with two important signals to encourage capacity building, i.e. the planned scale of investment over the current three-year budget period, and indicative levels over the following seven years, disaggregated into 23 well-defined ‘sub-pillar’ areas; and a list of ‘milestone’ infrastructure programmes and projects with key dates.

(b) IDPs have been commissioned from departments for the Sub-Pillars of ISNI. These plans aim to complement ISNI by providing more detailed information on the planned implementation through the procurement of individual programmes and projects. The construction industry can use the information to plan and deliver value for money.

(c) A number of conferences have been held over recent months bringing together government construction clients and the construction industry (and other key stakeholders) to provide effective market signalling.

(d) A new ISNI Delivery Tracking System is being rolled out to all departments and related public bodies to improve the quality and timeliness of information on the progress of major capital projects through procurement and delivery.

(e) Regular meetings are held between the Government Construction Clients Group and construction industry representative groups to ensure two way communication on key issues including appraising the industry of future construction needs.

(f) ‘Soft market testing’ with the construction industry is undertaken by SIB in support of departments to promote more effective procurement of major and complex assets.

(g) Complementary to the arrangements for ISNI the Procurement Board has tasked departments with producing Annual Procurement Plans linked to their Annual Efficiency Plans which will include details of planned contracts with a value in excess of the EU thresholds (£3.5m in the case of construction contracts). These Plans are due to be completed by the end of September for 2008-2009 and by the end of March for subsequent years. The contract details included in these Plans will be collated by the Central Procurement Directorate and presented to the Construction Industry Forum NI (CIFNI) for information.

Since the publication of the report, OFMDFM, the Central Procurement Directorate (CPD) of Department of Finance and Personnel (DFP) and the SIB, have been working in partnership with departments to address the issues it raised. A list of initiatives which have been taken is provided (see Appendix 2(a)).

Access to borrowing under RRI is currently capped at £200 million per annum. This amount is now available without reference to levels of rates increase in Northern Ireland. The ISNI anticipates full use of this borrowing power in each year.

After the publication of the NIAO report, further negotiations with the Treasury resulted in another significant change to the original RRI agreement. Under the revised arrangements, when an on-balance sheet PFI project occurs the balance sheet value of the project (which would otherwise be a direct charge to the Capital Departmental Expenditure Limit (DEL)) can be substituted for RRI borrowing (on the basis that it essentially represents ‘borrowing’ although from a different source). This provides greater flexibility in managing the capital DEL allocations. It also has the advantage of reducing the interest costs – under the original agreement we would have incurred both the interest costs of projects funded under RRI borrowing as well as the interest costs arising from a PFI contract.

The planning, management and control of spending within departments is the responsibility of the Accounting Officers supported by their finance staff. DFP compiles regular monitoring information in actual spending against budgets as approved by the Executive and also works with departments to improve the overall level of financial skills and the effectiveness of departmental monitoring and control arrangements. DFP has led on the compilation of a Financial Management Review in 2006 and commissioned a major Review of Forecasting and Monitoring systems within departments carried out by PKF consultants. An overall review of the financial training provided across departments took place and a suite of new training courses was developed and delivered in the past year. In particular, training was delivered to non-finance personnel to ensure that decisions are taken with due regard to the financial consequences and there is more effective co-ordination with finance staff in departments.

DFP also request Forecast Outturn figures on a monthly basis and officials are also working with departments to improve the quality of this forecasting.

Regular meetings are held between DFP and Finance Directors of departments, with a view to discussing management issues and improving communication and financial management and control by departments, including capital management.

SIB continues to provide assistance to departments with the management and delivery of major infrastructure programmes and projects.

In addition, as previously noted, OFMDFM is supported by SIB in developing and overseeing the rollout of the new ISNI Delivery Tracking System to all departments and public bodies, which is intended to improve the quality and timeliness of information on the progress of major capital projects through procurement and delivery.

9. The Committee considered the Accounting Officer’s response at its meeting on 20 November 2008, and members expressed that they were content with the detailed response.

10. The Committee wrote to the Accounting Officer on 25 November 2008 to advise that members were content with the response.

Insolvency and the Conduct of Directors (HC 816)

11. The Committee wrote to the Accounting Officer, Department of Enterprise, Trade and Investment, on 29 September 2008, detailing a number of questions in relation to the above report (see Appendix 2(b)).

12. The Accounting Officer responded to the Committee on 30 October 2008 (see Appendix 2(b)), providing a full response.

13. The Committee focussed on nine areas where the NIAO report had highlighted problems, namely:

14. The following is a summary of the Accounting Officer’s response:

Insolvency Service assessors already work with staff from the GB Insolvency Service Inspectorate in the joint monitoring of a number of RPBs, and is exploring the opportunity for GB staff to join Insolvency Service staff in conducting future reviews of the Official Receiver. There is already considerable cross fertilisation with the Insolvency Service in GB.

The Insolvency Service considers that these meetings have resulted in a more effective implementation of the disqualification legislation. This has been achieved through greater willingness on the part of IPs to contact the Disqualification Unit to discuss relevant issues in advance of making a formal report, through more relevant and detailed information being provided with reports, and through a generally improved working relationship.

15. The Committee considered the Accounting Officer’s response at its meeting on 20 November 2008, and members expressed that they were content with the detailed response.

16. The Committee wrote to the Accounting Officer on 25 November 2008 to advise that members were content with the response.

Collections Management in the Arts Council of Northern Ireland (HC 1541)

17. The Committee wrote to the Accounting Officer, Department of Culture, Arts and Leisure, on 29 September 2008, detailing a number of questions in relation to the above report (see Appendix 2(c)).

18. The Accounting Officer responded to the Committee on 27 October 2008 (see Appendix 2(c)), providing a full response.

19. The Committee focussed on eight areas where the NIAO report had highlighted problems, namely:

20. The following is a summary of the Accounting Officer’s response:

Many of the exhibitions have been accompanied by talks on the collection, and the distribution of catalogues which provide a survey of works purchased from 2003 and include a background to the acquisitions policy and collections of the Council. It also actively promotes its tours to local venues with media interest increasing awareness of the exhibitions and artists featured.

The Arts Council deals with routine enquiries about the collection from curators, galleries, students, artists and interested members of the public. It also takes the opportunity to showcase works when its building is open to the public on European Heritage Open Days, and through the online database.

A business case on the gifting of the collection has been developed. The Arts Council and National Museums Northern Ireland are working with DCAL on the case for a National Gallery for Northern Ireland in which to showcase the national and Arts Council collection.

21. The Committee considered the Accounting Officer’s response at its meeting on 20 November 2008, and members expressed that they were content with the detailed response.

22. The Committee wrote to the Accounting Officer on 25 November 2008 to advise that members were content with the response.

The Fire and Rescue Service Training Centre (HC 80)

23. The Committee wrote to the Accounting Officer, Department of Health, Social Services and Public Safety on 29 September 2008, detailing a number of questions relating to the NIAO report (see Appendix 2(d)).

24. The Accounting Officer responded to the Committee on 23 October 2008 (see Appendix 2(d)).

25. The Committee focussed on seven questions, namely:

26. The Accounting Officer responded to the Committee’s questions on 23 October 2008. The following is a summary of the response:

  2006-07 2007-08

 

 Planned centrally Target Delivered at Boucher Crescent Delivered at Westland & Northland Planned centrally Target Delivered at Boucher Crescent Delivered at Westland & Northland
Priority 1
7924
6496
2001
7924
6295
2576
Priority 2
2661
3489
0
2661
2834
0

The shortfall in Priority 1 training at the Boucher Crescent site has been addressed through the provision of Priority 1 breathing apparatus training at the Westland and Northland sites. The levels of Priority 2 training have been higher than target for both years.

In relation to overtime costs for real fire training, a new weekend working rota was introduced for instructional staff at Boucher Crescent which significantly reduced the need for staff to work overtime at weekends. Since the publication of the NIAO report, the overtime costs for delivering real fire training at weekends in 2006-07 was £7865 and for 2007-08 was £7215.

(a) Senior Training Staff: Two new senior support staff (non-operational) posts have been filled within the Training Function – these are the Personal Development Manager and the Integrated Personal Development System (IPDS) Co-ordinator posts. This important development means that, for the first time, non-operational staff will have direct involvement in the career development of firefighters, and continuity will be assured as a result. Two further support staff trainer appointments have recently taken place – the Learning and Development Facilitator and the Driver Instructor/Examiner posts. In addition, following an internal review of the Management Training function and a public tender process, all NIFRS management training is now delivered by an external training provider.

(b) Training Attendance Rates: Low trainee attendance rates have historically been associated with Retained Duty System (RDS) staff who have primary employment and other family commitments. To maximise RDS firefighter availability, training is primarily delivered to RDS staff peripatetically and at weekends whenever possible. A number of existing weekday courses have been modularised to allow them to be delivered to RDS staff across a number of weekends.

A weekend working rota has been introduced for Training Centre instructional staff and there has been an increase in the provision of peripatetic training through the use of satellite breathing apparatus facility at Northland station, mobile gas-fuelled Fire Training Unit, Road Traffic Collision team training, mobile incident command simulator, and first aid at work refresher training.

These developments have resulted in an increase in the level of training delivered at weekends both centrally and peripatetically, and as a result the issues of continuity of senior training staff and of poor training attendance rates have both been substantially addressed.

27. The Committee considered the Accounting Officer’s response at its meeting on 20 November 2008, and members expressed that they were content with the detailed response.

28. The Committee wrote to the Accounting Officer on 25 November 2008 to advise that members were content with the response.

The Management of Surplus Land and Property in the Health Estate (HC 298)

29. The Committee wrote to the Accounting Officer, Department of Health, Social Services and Public Safety on 29 September 2008, detailing a number of questions relating to the NIAO report and the follow up NIAO report Departmental Responses to Recommendations in NIAO Reports (HC 1149) (see Appendix 2(e)).

30. The Accounting Officer responded to the Committee on 23 October 2008 (see Appendix 2 (e)).

31. The Committee focussed on four questions, namely:

32. The Accounting Officer responded to the Committee’s questions on 23 October 2008. The following is a summary of the response:

On the basis of the outcome from the Asset Management Review alongside the review of the Investment Strategy NI and the Comprehensive Spending Review process in 2007, the Department settled on an initial disposal target for the next three years (2008-11) of £95m. Since 2007 the NI property market has experienced a dramatic downturn which has called into question the viability of the £95m target set for 2008-11. The Department is currently reviewing its position in line with changing market conditions. There are currently anticipated sales of £6 – 7m in 2008-09 against the revised target for 2008-09 of £5m.

The Review also went on to make a number of recommendations for the delivery of an effective disposal strategy, namely:

(a) The approach to rationalisation needs to be standardised across Health and Social Care and clear accountability at regional level established.

(b) Disposal targets need to be set and named individuals held accountable for meeting those targets.

(c) The disposal process needs to be linked into both the wider health system and the wider public sector.

(d) Effective use needs to be made of both financial and human resources.

The Department has made progress in relation to the recommendations as follows:

(a) The Department’s Infrastructure Investment Directorate has taken the lead in implementing the recommendations, establishing an Asset Management Steering Group involving representatives from the Trusts, Health Estates Agency and DFP Land and Property Services.

(b) Disposal targets have been set for the budget period 2008-11, both on a Departmental level and for each Trust.

(c) The disposal process in integrated with the Investment Strategy for Northern Ireland.

(d) The achievement of sales within a given year to fund capital expenditure in the same year can create difficulties. Discussions have taken place with DFP to consider the scope for introducing increased flexibility in the timing of sales and the ability for proceeds to be utilised in a following financial year. The Department will follow this issue up with DFP.

(e) In terms of linking the disposal process to the wider public sector, this has been taken forward by the Capital Realisation Taskforce, involving OFMDFM, DFP, and the Strategic Investment Board, with plans for the establishment of a Central Asset Realisation Taskforce. DHSSPS has contributed to the work of the Capital Realisation Taskforce, and will continue to co-operate with the Central Asset Realisation Taskforce.

(f) A separate Asset Management Function has been set up within the Department with dedicated staff focussing on maximising the income from receipts, establishing effective management arrangements and ensuring value for money.

33. The Committee considered the Accounting Officer’s response at its meeting on 20 November 2008, and members expressed that they were content with the detailed response.

34. The Committee wrote to the Accounting Officer on 25 November 2008 to advise that members were content with the response.

Memorandum of Reply: Department of Environment: Northern Ireland’s Waste Management Strategy (HC 88)

35. The Public Accounts Committee decided to request an update on the progress against the Department of the Environment’s responses to the conclusions of the House of Commons Committee of Public Accounts report ‘Northern Ireland’s Waste Management Strategy’, and wrote to the Department on 8 July 2008 (see Appendix 2(f)).

36. The Department replied to the Committee’s correspondence on 5 August 2008 (see Appendix 2(f)).

37. The Accounting Officer provided the Committee with a detailed update of the current position, on each of the 10 conclusions in the House of Commons Committee of Public Accounts report.

38. The Committee considered and discussed the updated information at its meeting on 9 October 2008, and agreed that the NIAO should include some further work on this issue in its future work programme.

Memorandum of Reply: Improving Numeracy and Literacy in Schools (HC 953)

39. The Public Accounts Committee decided to request an update on the progress against the Department of Education’s responses to the conclusions of the House of Commons Committee of Public Accounts report ‘Improving Numeracy and Literacy in Schools’, and wrote to the Department on 27 June 2008 (see Appendix 2(g)).

40. The Departments replied to the Committee’s correspondence on 6 August 2008 (see Appendix 2(g)).

41. The Accounting Officer provided to the Committee an update on progress against each of the conclusions of the House of Commons Committee of Public Accounts in an annex to his response. He also provided some additional information which is summarised as follows:

42. The Committee considered the responses from the Accounting Officer at its meeting on 9 October 2008, and agreed that the C&AG would hold discussions, on behalf of the Committee, with the Accounting Officer, for further clarification on a number of issues, and report back to the Committee. The Chairperson wrote to the Accounting Officer on 13 October 2008 to inform him of the Committee’s decision, and the Clerk wrote to the C&AG on the same date to formally request him to discuss the issue with the Accounting Officer.

43. The C&AG and his staff briefed the Committee on his subsequent discussions with the Accounting Officer, at the meeting on 20 November 2008, and an update paper was provided (see Appendix 2(g)).

44. Members agreed that C&AG would convey members’ concerns regarding training and development at Playgroup level and the potential for impact this had on improving numeracy and literacy. In all other respects the Committee was content with the Accounting Officer’s response.

The Fire and Rescue Service Training Centre (HC 80)

Minutes of Proceedings Relating to the Report

Thursday, 26 June 2008
Room 144, Parliament Buildings

Present: Mr Paul Maskey (Chairperson)
Mr Roy Beggs (Deputy Chairperson)
Mr Jonathan Craig
Mr John Dallat
Mr David Hilditch
Ms Dawn Purvis
Mr Jim Wells

In Attendance: Mrs Cathie White (Assembly Clerk)
Mrs Gillian Lewis (Assistant Assembly Clerk)
Mrs Nicola Shepherd (Clerical Supervisor)
Mr Darren Weir (Clerical Officer)

Apologies: Mr Thomas Burns
Mr Simon Hamilton
Mr Trevor Lunn
Mr Mitchel McLaughlin

The meeting opened at 2.00pm in public session.

2.02pm Ms Purvis joined the meeting.

6. Correpondence.

Members considered a number of items of correspondence as follows:

(e) A letter from C&AG in relation to the NIAO report ‘Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure’.

Agreed: Members agreed to write to the Accounting Officer, Department of Finance and Personnel requesting further information relating to the recommendations in the NIAO report.

[EXTRACT]

Thursday, 3 July 2008
Room 144, Parliament Buildings

Present: Mr Roy Beggs (Deputy Chairperson)
Mr Jonathan Craig
Mr John Dallat
Mr Simon Hamilton
Mr David Hilditch
Mr Mitchel McLaughlin
Ms Dawn Purvis

In Attendance: Mrs Cathie White (Assembly Clerk)
Mr Jim Beatty (Assembly Clerk)
Mrs Gillian Lewis (Assistant Assembly Clerk)
Mrs Nicola Shephard (Clerical Supervisor)
Mr Darren Weir (Clerical Officer)

Apologies: Mr Paul Maskey (Chairperson)
Mr Thomas Burns
Mr Trevor Lunn

The meeting opened at 2.03pm in public session with the Deputy Chairperson in the Chair.

2.06pm Mr Craig joined the meeting.

5. Consideration of Committee Draft Forward Work Programme.

Members discussed the Memorandum of Response on Department of Environment: Northern Ireland’s Waste Management Strategy.

Agreed: Members agreed to ask for an update report on the Memorandum of Response Department of Environment: Northern Ireland’s Waste Management Strategy.

[EXTRACT]

Thursday, 11 September 2008
Room 144, Parliament Buildings

Present: Mr Paul Maskey (Chairperson)
Mr Roy Beggs (Deputy Chairperson)
Mr Jonathan Craig
Mr John Dallat
Mr Simon Hamilton
Mr David Hilditch
Mr Trevor Lunn
Mr Mitchel McLaughlin
Ms Dawn Purvis
Mr Jim Wells

In Attendance: Mr Jim Beatty (Assembly Clerk)
Mrs Gillian Lewis (Assistant Assembly Clerk)
Mr John Lunny (Clerical Supervisor)
Mr Darren Weir (Clerical Officer)

Apologies: Mr Thomas Burns

The meeting opened at 2.01pm in public session.

2.02pm Mr McLaughlin joined the meeting.

3. Matters arising.

2.05pm Ms Purvis joined the meeting.

Members considered a number of NIAO reports on which they would not be able to take oral evidence, and which will be dealt with by the Committee by correspondence in the Second Composite Report.

Agreed: Members agreed the list of reports for the Second Composite Report.

Agreed: Members agreed that a number of questions will be drawn up and presented to the Committee at a future meeting.

[EXTRACT]

Thursday, 25 September 2008
Room 144, Parliament Buildings

Present: Mr Paul Maskey (Chairperson)
Mr Roy Beggs (Deputy Chairperson)
Mr Jonathan Craig
Mr John Dallat
Mr Trevor Lunn
Mr Mitchel McLaughlin
Ms Dawn Purvis
Mr George Robinson
Mr Jim Shannon

In Attendance: Mr Jim Beatty (Assembly Clerk)
Mrs Alison Ross (Assembly Clerk)
Mrs Gillian Lewis (Assistant Assembly Clerk)
Mr John Lunny (Clerical Supervisor)
Mr Darren Weir (Clerical Officer)

Apologies: Mr Jim Wells

The meeting opened at 2.00pm in public session.

2.03pm Mr Shannon left the meeting.

2.04pm Mr Shannon rejoined the meeting.

4. Matters arising.

Members considered a number of questions for the Committee’s Second Composite Report on Issues Dealt with by Correspondence.

Agreed: Members agreed to forward the questions to the relevant Accounting Officer.

[EXTRACT]

Thursday, 9 October 2008
Room 144, Parliament Buildings

Present: Mr Paul Maskey (Chairperson)
Mr Roy Beggs (Deputy Chairperson)
Mr John Dallat
Mr Mitchel McLaughlin
Ms Dawn Purvis
Mr George Robinson
Mr Jim Shannon
Mr Jim Wells

In Attendance: Mr Jim Beatty (Assembly Clerk)
Ms Alison Ross (Assembly Clerk)
Mrs Gillian Lewis (Assistant Assembly Clerk)
Mr John Lunny (Clerical Supervisor)

Apologies: Mr Thomas Burns
Mr Jonathan Craig
Mr Trevor Lunn

The meeting opened at 2.02pm in public session.

2.04pm Mr Beggs joined the meeting.

2.05pm Ms Purvis joined the meeting.

4. Update on Memorandum of Reply relating to House of Commons Committee on Public Accounts Report on Improving Literacy and Numeracy in Schools.

Members considered the response from the Accounting Officer, Department of Education. The Committee took briefing from Mr John Dowdall CB, C&AG, Mr Sean McKay, Director, and Mr Joe Campbell, Audit Manager.

2.12pm Mr Wells joined the meeting.

Agreed: Members agreed that C&AG would hold discussions, on behalf of the Committee, with the Accounting Officer, Department of Education, for further clarification on a number of issues, and report back to the Committee.

5. Update on Memorandum of Reply relating to House of Commons Committee on Public Accounts Report on Northern Ireland’s Waste Management Strategy.

Members considered the response from the Accounting Officer, Department of the Environment. The Committee took briefing from Mr John Dowdall CB, C&AG, Ms Ursula Moyna, Audit Manager and Mr Joe Campbell, Audit Manager.

Agreed: Members agreed that the NIAO should include some further work on this issue in its future work programme.

[EXTRACT]

Thursday, 20 November 2008
Room 144, Parliament Buildings

Present: Mr Paul Maskey (Chairperson)
Mr Roy Beggs (Deputy Chairperson)
Mr Thomas Burns
Mr Jonathan Craig
Mr John Dallat
Mr Trevor Lunn
Mr Mitchel McLaughlin
Ms Dawn Purvis
Mr George Robinson
Mr Jim Shannon
Mr Jim Wells

In Attendance: Mr Damien Martin (Clerk Assistant)
Ms Alison Ross (Assembly Clerk)
Mr Keith McBride (Assistant Assembly Clerk)
Mr John Lunny (Clerical Supervisor)
Mr Darren Weir (Clerical Officer)

Apologies: None

The meeting opened at 2.01pm in public session.

2.03pm Mr McLaughlin joined the meeting.

2.04pm Mr Wells and Mr Robinson joined the meeting.

2.07pm Mr Burns left the meeting.

2.15pm The meeting went into closed session.

6. Consideration of responses to the Committee’s Second Composite Report.

Mr John Dowdall CB, C&AG, Mr Brandon McMaster, Director of Value for Money, Mr Sean McKay, Audit Manager, and Mr Joe Campbell, Audit Manager, answered members’ questions.

Members considered the responses to the following Reports:

(a) Management of Surplus Land and Property in the Health Estate;

(b) The Fire and Rescue Service Training Centre;

(c) Insolvency and the Conduct of Directors;

(d) Collections Management in the Arts Council of Northern Ireland; and

(e) Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure.

Agreed: Members agreed to include the responses and take forward the Second Composite Report.

Agreed: C&AG agreed to provide members with a copy of the Corporate Governance Codes.

2.23pm Ms Purvis joined the meeting.

8. Update information on NIAO report ‘Improving Numeracy and Literacy in Schools’.

Mr John Dowdall CB, C&AG, Mr Sean McKay, Audit Manager, and Mr Joe Campbell, Audit Manager briefed members and answered members’ questions.

Agreed: Members agreed that C&AG would convey members’ concerns regarding training and development at Playgroup level and the potential for impact this had on improving numeracy and literacy.

[EXTRACT]

Thursday, 15 January 2009
Room 144, Parliament Buildings

Present: Mr Paul Maskey (Chairperson)
Mr Roy Beggs (Deputy Chairperson)
Mr Thomas Burns
Mr Jonathan Craig
Mr John Dallat
Mr Trevor Lunn
Mr Mitchel McLaughlin
Ms Dawn Purvis
Mr George Robinson
Mr Jim Shannon

In Attendance: Ms Alison Ross (Assembly Clerk)
Mrs Gillian Lewis (Assistant Assembly Clerk)
Mr John Lunny (Clerical Supervisor)
Mr Darren Weir (Clerical Officer)

Apologies: Mr Jim Wells

The meeting opened at 2.00pm in public session.

2.06pm Ms Purvis joined the meeting.

2.18pm The meeting went into closed session.

2.30pm Mr Burns left the meeting.

3.23pm Mr McLaughlin left the meeting.

6. Consideration of the Committee’s Draft Second Composite Report.

Members considered the draft report paragraph by paragraph.

The Committee considered the main body of the report.

Paragraphs 1 – 42 read and agreed.

Paragraph 43 read, amended and agreed.

Paragraph 44 read and agreed.

The Committee considered the Executive Summary.

Paragraphs 1 – 6 read and agreed.

Agreed: Members agreed that the Chairperson’s letters requesting information to the Accounting Officers, Department of Finance and Personnel, Department of Enterprise, Trade and Investment, Department of Culture, Arts and Leisure, Department of Health, Social Services and Public Safety, Department of the Environment, and Department of Education, and their responses would be included in the Committee’s report, together with update information provided by C&AG on Improving Numeracy and Literacy in Schools.

Agreed: Members ordered the report to be printed.

Agreed: Members agreed to embargo the report until 00.01am on Thursday, 5 February 2009, when the report would be officially released.

Agreed: Members agreed not issue a press release nor to hold a press conference on Thursday, 5 February 2009 to launch the Committee’s report.

[EXTRACT]

Appendix 2

Correspondence

Contents

(a) Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure (HC 79) 37

(b) Insolvency and the Conduct of Directors (HC 816) 57

(c) Collections Management in the Arts Council of Northern Ireland (HC 1541) 63

(d) The Fire and Rescue Service Training Centre (HC 80) 72

(e) The Management of Surplus Land and Property in the Health Estate (HC 298) 72

(f) Memorandum of Response: Department of the Environment: Northern Ireland’s
Waste Management Strategy (HC 88) 84

(g) Memorandum of Response: Improving Numeracy and Literacy in Schools (HC 953) 97

Chairperson’s Letter of 27 June 2008 to Mr Leo O’Reilly

NIA Logo (Black).ai

Public Accounts Committee
Parliament Buildings
Room 371
Stormont Estate
BELFAST
BT4 3XX
(028) 9052 1208
(028) 9052 0366

Email: pac.committee@niassembly.gov.uk

Mr Leo O’Reilly
Second Permanent Secretary
Department of Finance & Personnel
Rathgael House
Balloo Road
Bangor
BT19 7NA

Date: 27 June 2008

Dear Leo

NIAO Report ‘Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure December 2006’

The Public Accounts Committee, at its meeting today agreed to request further information in relation to the NIAO report ‘Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure December 2006’.

The Committee asked for a response to the following questions:-

1. What procedures and systems have been put in place to monitor departmental performance and report to the Assembly on the delivery of the Investment Strategy?

2. The departmental investment plans developed to support the first iteration of the Investment Strategy varied in the quality and quantity of the information contained in them. What steps have been taken to improve their quality? Have they been subjected to any form of independent quality review and if so, what was the outcome?

3. The Executive committed in its Investment Strategy for Northern Ireland (2008-2018) to publish more detailed Investment Delivery Plans for each investment area by 31 March 2008. What action has been taken to adhere to this commitment and what further action is required?

4. The 2006 construction industry market capacity study included an action plan for addressing the recommendations made within it (Appendix 7 of the C&AG’s report). Has the process been subjected to a periodic independent review? Please provide the latest monitoring report showing progress against each of the recommendations.

5. The C&AG’s report highlighted the need for more information to be made available to the construction industry. As this industry is an important part of the economy in Northern Ireland, what action has been taken to provide it with the necessary information to allow it to plan its capacity to respond in a timely manner and deliver value for money?

6. The C&AG’s report (paragraph 3.8) noted that an internal review of the skills base and capacity within the Public Sector was underway but not completed at the time of his review. What was the outcome of this review, particularly with regard to the public sector’s capacity and ability to deliver on a programme as ambitious as the Investment Strategy? What steps are being taken to address any weaknesses or shortcomings identified?

7. Paragraph 4.4 and specifically Figure 10 of the C&AG’s report sets out the relationship between income generated from local revenue (rates) and access to borrowing. For example, over the three-year period 2004-05 to 2006-07, £2,344 million was required to be raised through local District and Regional Rates to gain access to the planned £600 million borrowing over the three years. How much revenue was raised through the rating system in each of these years and how does this compare with forecasted revenue in the same period?

8. For 2007-08 what was the amount of rates revenue required to provide access to the full amount of £200 million in that year? What was actually collected? What is the projected borrowing requirement over the life of ISNI? And what are the projected costs (by year) of servicing these and existing borrowings?

9. Figures 11 and 12 of the C&AG’s report provide details of borrowings up to 31 March 2006. Please update these Figures to the end of 2007-08 and provide details of the repayments over the period of all RRI related loans.

10. The C&AG’s report highlighted concerns about capital underspends; the recent Ministerial Statement on Provisional Outturn for 2007-08 show that they continue to be problematic. To allow the Committee to assess the full extent of the issue please provide for each department, for each of the last three financial years, details of the:

In addition, outline what steps has DFP taken since publication of the report to improve the management and control of capital spending by departments. How effective have these been? What more needs to be done and is there a role for SIB in this process?

11. The C&AG’s report (paragraphs 4.26 and 4.28) contains important recommendations to improve, on behalf of the N.I. Assembly and taxpayer, transparency in respect of borrowings, payments and future commitments (including PFI commitments). How is each of these recommendations being implemented? In addition, please update Appendix 9 of the C&AG’s report for signed PFI/PPP agreements at 30 June 2008.

I would be grateful if we could have your response by Friday, 25 July 2008.

Yours sincerely

signature of Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Correspondence of 25 July 2008 from Mr Leo O’Reilly

FROM THE PERMANENT SECRETARY
Leo O’Reilly

Rathgael House
Balloo Road
BANGOR, BT19 7NA
Tel No: 028 91277601
Fax No: 028 9185 8184
E-mail: leo.o’reilly@dfpni.gov.uk

Mr Paul Maskey
Chairperson
Public Accounts Committee
Room 371
Parliament Buildings
Stormont, BELFAST
BT4 3XX

25 July 2008

Dear Paul

NIAO Report ‘Reinvestment and Reform:
Improving Northern ireland’s Public Infrastructure’

I refer to your letter dated 27 June 2008 requesting further information in relation to the NIAO report ‘Reinvestment and Reform: Improving Northern Ireland’s Public Infrastructure’ published in December 2006.

The Investment Strategy for Northern Ireland (ISNI) is the responsibility of the Office of the First Minister and the deputy First Minister (OFMDFM) supported by the Strategic Investment Board (SIB). Therefore in compiling answers to the questions asked by the Public Accounts Committee I have sought input from that Department to address questions 1 to 6 and the latter parts of questions 10 and 11. The remaining questions, relating mainly to the Reinvestment and Reform Initiative (RRI) borrowing arrangements, are within the remit of DFP.

I will address each question in your letter in turn, with additional supporting information provided in attached annexes, as appropriate.

1. What procedures and systems have been put in place to monitor departmental performance and report to the Assembly on the delivery of the Investment Strategy?

Ministers are currently considering arrangements for the monitoring of departments’ performance on the delivery of both the revised Investment Strategy approved by the Executive and Assembly in January 2008 and the wider Programme for Government.

Ministers are also considering arrangements for reporting progress on the delivery of the ISNI to the Assembly and advising it of revisions. These arrangements will take full account of the motion passed by the Assembly on 28 January 2008:-

“That this Assembly endorse the Programme for Government and investment strategy for Northern Ireland agreed by the Executive; and calls on the Executive to ensure ongoing review and subsequent necessary revision”.

The OFMDFM Committee will be consulted on proposed arrangements and it is expected that they will take effect later this year.

OFMDFM, assisted by the SIB, is also developing and overseeing the roll-out of a new ISNI Delivery Tracking System (DTS) to all departments and related public bodies to improve the quality and timeliness of information on the progress of major capital projects through procurement and delivery. Regular reports from the DTS will be used by spending departments, DFP and OFMDFM to inform Ministers and the Executive on the delivery of tangible outputs from the Strategy and will improve forward planning.

2. The departmental investment plans developed to support the first iteration of the Investment Strategy varied in the quality and quantity of the information contained in them. What steps have been taken to improve their quality? Have they been subjected to any form of independent quality review and if so, what was the outcome?

3. The Executive committed in its Investment Strategy for Northern Ireland (2008-2018) to publish more detailed Investment Delivery Plans for each investment area by 31 March 2008. What action has been taken to adhere to this commitment and what further action is required?

OFMDFM commissioned Investment Delivery Plans (IDPs) from each department in order to make available a level of detail on the delivery of Ministers’ priorities for capital programmes and projects consistent with the strategic direction and capital envelope (by Sub-Pillar) set out in ISNI 2008-18. A guidance note was prepared and circulated to provide a format to assist departments in this task and to promote consistency between IDPs (copy at Annex A). However the IDPs themselves are departmental documents and thus they are subject to approval by relevant Ministers before publication. Where invited to do so by departments, SIB has provided support to departmental officials in the preparation of IDPs.

To date (Mid-July 2008), 19 out of 23 IDPs have been published on departmental websites. Most of the published IDPs may be found easily from a link on the following SIB webpage which is currently being updated to include the most recent plans of DARD and DCAL:-

http://www.sibni.org/index/who_we_are/content_key-information/content-isni_publications/investment_delivery_plans.htm

In the meantime, DCAL IDPs may be found at:-

http://www.dcalni.gov.uk/_strategy_2008-_2018_-_investment_delivery_plan__-_investmentculture_-_arts_-_sport_-__inland_waterways.doc

and

http://www.dcalni.gov.uk/investment_strategy_2008_-_2018_-_investment_delivery_plan__-libraries_.doc

The DARD IDPs may be found at:-

http://www.dardni.gov.uk/rural-and-primary-industries-dard-core.doc and

http://www.dardni.gov.uk/flood-risk-management-rivers-agency-2.doc.

IDPs that currently remain to be published are:

Schools & Youth Services DE

Primary Care DHSSPS

Public Safety & Technology DHSSPS

Hospitals Modernisation DHSSPS

OFMDFM and the SIB will continue to work with departments to monitor and refine Investment Delivery Plans with a view to improving their quality and value as a planning tool.

4. The 2006 construction industry market capacity study included an action plan for addressing the recommendations made within it (Appendix 7 of the C&AG’s report). Has the process been subjected to a periodic independent review? Please provide the latest monitoring report showing progress against each of the recommendations.

The latest ‘Action Points Arising from the Construction Sector Capacity Study’ monitoring report covering the period to March 2007 is attached at Annex B. The Economic Policy Unit of OFMDFM monitors this action plan.

The update to March 2008 is expected to be available in August 2008.

5. The C&AG’s report highlighted the need for more information to be made available to the construction industry. As this industry is an important part of the economy in Northern Ireland, what action has been taken to provide it with the necessary information to allow it to plan its capacity to respond in a timely manner and deliver value for money?

The following actions have been taken:

6. The C&AG’s report (paragraph 3.8) noted that an internal review of the skills base and capacity within the Public Sector was underway but not completed at the time of his review. What was the outcome of this review, particularly with regard to the public sector’s capacity and ability to deliver on a programme as ambitious as the Investment Strategy? What steps are being taken to address any weaknesses or shortcomings identified?

The report on Public Sector Skills Capacity, carried out in 2006, highlighted a number of issues. It concluded that there was likely to be a shortage of suitably qualified and experienced project managers and other support staff within Departments. A summary of the report is attached at Annex C.

Since the publication of the report OFMDFM, the Central Procurement Directorate of DFP and SIB have been working in partnership with the Departments to address the issues it raised. Amongst the initiatives that have been taken are:-

7. Paragraph 4.4 and specifically Figure 10 of the C&AG’s report sets out the relationship between income generated from local revenue (rates) and access to borrowing. For example, over the three-year period 2004-05 to 2006-07, £2,344 million was required to be raised through local District and Regional Rates to gain access to the planned £600 million borrowing over the three years. How much revenue was raised through the rating system in each of these years and how does this compare with forecasted revenue in the same period?

Actual revenue raised through the District and Regional rates in 2004-05 to 2006-07 compared with forecasted revenue for the same period at the time of the NIAO report is as follows:-

Rates Revenue

 

2004-05
£m

2005-06
£m

2006-07
£m

Total
£m
NIAO report  
748.4
813.5
894.1
2,456.0
Actual
748.4
818.8
860.4
2,427.6

The figures used in the NIAO report were the most up to date available at that time. The difference between the forecast and actual figures for 2005-06 are due to provisional outturn figures being updated to reflect the final outturn as per audited accounts. For 2006-07 the figures show a comparison between forecast and outturn, the difference being due to normal forecasting differences and a variation in rates collection levels.

8. For 2007-08 what was the amount of rates revenue required to provide access to the full amount of £200 million in that year? What was actually collected? What is the projected borrowing requirement over the life of ISNI? And what are the projected costs (by year) of servicing these and existing borrowings?

As part of the negotiations between the local parties and the Government prior to the restoration of devolution in May 2007, HM Treasury agreed to end the link between access to borrowing under the Reinvestment and Reform Initiative (RRI) and the extent to which the gap between per capita revenue in Northern Ireland and England was being closed. Therefore there ceased to be any linkage between levels of rates increases in Northern Ireland and access to borrowing under the RRI.

Access to borrowing under the RRI is currently capped at £200 million per annum. This amount is now available without reference to levels of rates increase in Northern Ireland. The Investment Strategy for NI anticipates full use of this borrowing power in each year.

Interest costs on borrowings to the end of 2007-08 are currently around £32 million per annum. However, interest payments reduce each year as principal is repaid, so this figure will reduce over time.

Subsequent to publication of the NIAO report, further negotiations with the Treasury resulted in another significant change to the original RRI agreement. Under the revised arrangements, when an on-balance sheet PFI project occurs the balance sheet value of the project (which would otherwise be a direct charge to the Capital DEL) can be substituted for RRI borrowing (on the basis that it essentially represents ‘borrowing’ although from a different source). This provides greater flexibility in managing the capital DEL allocations. It also has the advantage of reducing the interest costs - under the original agreement we would have incurred both the interest costs of projects funded under RRI borrowing as well as the interest costs arising from a PFI contract.

9. Figures 11 and 12 of the C&AG’s report provide details of borrowings up to 31 March 2006. Please update these Figures to the end of 2007-08 and provide details of the repayments over the period of all RRI related loans.

Figures 11 and 12 of the C&AG’s report have been updated below to provide details of borrowings up to 31 March 2008:-

Figure 11

Department

2003-04
£m

2004-05
£m

2005-06
£m

2006-07
£m

2007-08
£m

Total
£m

DARD

1.4

1.0

0.0

0.6

1.0

3.9

DCAL

 

 

 

7.6

5.8

 13.4

DE

0.2

2.0

3.8

5.7

1.5

13.2

DEL

0.1

1.2

2.0

2.3

1.7

7.2

DETI

4.9

11.1

2.4

9.5

 

27.9

DHSSPS

49.0

52.2

33.4

88.3

74.5

297.4

DRD

23.8

101.2

121.3

100.7

13.3

360.2

Total Borrowed

79.4

168.7

162.9

214.6

97.6

723.2

Total Available

125.0

200.0

200.0

200.0

200.0

925.0

Undrawn

45.6

31.3

37.1

-14.6

102.4

201.8

Figure 12

Term yrs

2003-04
£m

2004-05
£m

2005-06
£m

2006-07
£m

2007-08
£m

Total
£m

25

76.1

167.0

160.2

214.2

97.6

715.1

15

1.0

1.0

2.2

0.4

 

4.6

7

2.3

0.7

0.5

 

 

3.5

Total

79.4

168.7

162.9

214.6

97.6

723.2

Details of the repayments over the period of all RRI related loans are as follows:-

 Repayments

2003-04
£m

2004-05
£m

2005-06
£m

2006-07
£m

2007-08
£m

Total
£m

Principal

0.0

1.9

4.4

11.6

15.3

33.2

Interest

1.7

7.5

15.0

23.7

31.3

79.2

10. The C&AG’s report highlighted concerns about capital underspends; the recent Ministerial Statement on Provisional Outturn for 2007-08 show that they continue to be problematic. To allow the Committee to assess the full extent of the issue please provide for each department, for each of the last three financial years, details of the:

In addition, outline what steps has DFP taken since publication of the report to improve the management and control of capital spending by departments. How effective have these been? What more needs to be done and is there a role for SIB in this process?

Please see the information attached at Annex D for the last three financial years.

The planning, management and control of spending within departments is the responsibility of Accounting Officers supported by their finance staff. DFP compiles regular monitoring information on actual spending against budgets as approved by the Executive and also works with departments to improve the overall level of financial skills and the effectiveness of departmental monitoring and control arrangements. DFP has led on the compilation of a Financial Management Review in 2006 and commissioned a major Review of Forecasting and Monitoring systems within departments carried out by PKF consultants. An overall review of the financial training provided across departments took place and a suite of new training courses was developed and delivered in the past year. In particular, training was delivered to non-finance personnel to ensure that decisions are taken with due regard to the financial consequences and there is more effective co ordination with finance staff in departments.

DFP also request Forecast Outturn figures on a monthly basis and officials are also working with departments to improve the quality of this forecasting.

Regular meetings are held between DFP with the Finance Directors of departments, with a view to discussing financial management issues and improving communication and financial management and control by departments, including capital management.

SIB continues to provide assistance to departments with the management and delivery of major infrastructure programmes and projects. This includes consideration of planning, procurement and timing.

In addition, and as noted before, OFMDFM is supported by SIB in developing and overseeing the roll out of the new ISNI Delivery Tracking System to all departments and related public bodies. This is intended to improve the quality and timeliness of information on the progress of major capital projects through procurement and delivery. This will assist both departments and DFP closely to monitor spend and qualitative performance on capital projects and should lead to improved management, including financial management, thereby further addressing the problem of departmental capital underspends.

11. The C&AG’s report (paragraphs 4.26 and 4.28) contains important recommendations to improve, on behalf of the N.I. Assembly and taxpayer, transparency in respect of borrowings, payments and future commitments (including PFI commitments). How is each of these recommendations being implemented? In addition, please update Appendix 9 of the C&AG’s report for signed PFI/PPP agreements at 30 June 2008.

Public Income and Expenditure Account - Since 2005-06 (with the 2004-05 prior year detail also shown) the P I & E Account for each year shows the borrowing drawn down, the repayments of principal and interest and the liability at the year end. The undrawn borrowings were shown in a note to the accounts for 2006-07 and 2007-08 following the NIAO recommendation. The concept of “banked qualifying revenue” has ceased to apply since devolution, as explained under Question 8 above, and therefore this is not shown.

Estimates – Since 2003-04, the supporting statements to each Estimate detailed the RRI breakdown relevant to each department’s spend. Reflecting the change to borrowing conditions made by HM Treasury (described in the response to Question 8 above) in relation to PFI projects, in 2008-09 this is no longer relevant as it is planned that the full £200 million borrowing will be used by on-balance sheet PPP deals.

An updated table (Appendix 9 of the C&AG report) is attached at Annex E in relation to PFI/PPP agreements. Ministers are considering options for reporting PFI commitments to the Assembly.

I have endeavoured to respond to each question in detail but if I can be of any further assistance, please do not hesitate to contact me.

Yours sincerely

signature Leo O'Reilly

LEO O’REILLY

Copy distribution list

John McMillen, OFMDFM
Richard Pengelly
David Thomson
David Gavaghan, SIB
Michael Daly
Alan Maitland, OFMDFM
James McAleer, OFMDFM
Agnes Lennon
Paul Montgomery
Wallace Thompson

Annex C

Public Sector Skills Capacity Review Summary Report

Background

1. BearingPoint was commissioned by the Strategic Investment Board Limited (SIB) and Central Procurement Directorate (CPD) to undertake a review of the capacity of the public sector to deliver all the elements of the Investment Strategy for Northern Ireland (ISNI) and the NICS reform agenda. The terms of reference for the review are included in Annex A.

2. The overall aim of the review was to identify and quantify public sector capacity to deliver major ICT, construction, and outsourcing programmes and projects. This required the identification and quantification of the likely volume of work; current and projected public sector skills; consideration of any skills gaps that exist across the public sector; and the presentation of solutions to address issues identified by the review.

3. The review involved estimating the demand for resources and calculating the available supply across Departments and their associated Agencies/Non-departmental Public Bodies. Resources specified in the terms of reference were:- Investment Decision Maker; Senior Responsible Owner; Project Sponsor; Programme Manager; Project Manager and Advisor.

4. To estimate the demand for resources, a detailed questionnaire was developed and was issued to:-

5. The questionnaire asked each participant to estimate the resource inputs required to manage projects (defined as man days required per million pounds invested) across the range of roles, stages and procurement routes involved in ICT and construction projects.

6. The output of this process was the development of a resource model based on the procurement route on each project. This model was then applied to all the ICT projects and construction projects in the ISNI. The information was used to determine the projected resources needed to deliver the ISNI and the NICS reform agenda.

7. To identify current public sector skills, a questionnaire was distributed to all members of the Senior Civil Service (SCS) requesting their involvement in the distribution and completion of the questionnaire. A total of 355 useable responses were received against an expected total of 673.

8. The overall finding of the review was that, based on the information available, the NICS does not have the necessary capacity year-on-year, or the skills to deliver on all elements of the ISNI and the NICS reform programme. The review suggested that:-

Addressing Issues Raised by the Review

Additional actions

9. It should be noted that the following additional actions have been undertaken since the BearingPoint report was commissioned.

Resource Plans

10. It is acknowledged that there were difficulties in getting staff to return the questionnaire to identify current public sector skills and there were significant variances in the information provided by Roads Service, Water Service and Health Estates for the demand analysis.

11. Rather than re-running the exercise, it has been agreed that:-

Training requirements

12. It is recognised that some staff that returned questionnaires have indicated skills shortages in ICT programmes/ projects as follows: -

13. It is recognised that some staff that returned questionnaires have indicated skills shortages in construction programmes/projects as follows:-

14. Therefore, short-term and long-term training strategies need to be developed. This is being taken forward by the Centre of Excellence for Programme and Project Management, Project Management/Support Offices and the Centre for Applied Learning.

Annex A

Terms of Reference

The terms of reference for the review set out the following key aims and objectives; namely, to:-

Annex D

2005-06 - Capital Expenditure

Opening Monitoring

June Monitoring Changes

October Monitoring Changes

December Monitoring Changes

February Monitoring Changes

Final Plan

Final Outturn

£ million
Under(-)/ Over (+) Spend

% Underspend

Departments

 

 

 

 

 

 

 

 

 

Agriculture and Rural Development

69.2

-9.2

8.3

0.3

0.2

68.7

37.3

-31.4

-45.7%

Culture, Arts and Leisure

23.7

0.0

 

-0.3

 

23.4

16.0

-7.4

-31.7%

Education

211.6

-7.0

-29.4

0.5

-6.5

169.3

126.0

-43.3

-25.6%

Employment and Learning

85.9

-12.4

0.8

-0.2

 

74.1

51.2

-22.8

-30.8%

Enterprise, Trade and Investment

45.2

18.0

0.0

-12.2

-3.9

47.1

37.7

-9.4

-20.0%

Finance and Personnel

25.9

17.8

0.7

0.6

-0.5

44.5

11.9

-32.6

-73.4%

Health, Social Services
and Public Safety

176.3

-10.1

-8.8

3.0

 

160.5

158.2

-2.3

-1.4%

Environment

14.1

7.4

-1.6

-0.7

 

19.2

10.8

-8.4

-43.9%

Regional Development

483.4

-25.0

10.7

0.5

-0.5

469.1

436.6

-32.4

-6.9%

Social Development

137.8

3.2

37.0

-4.4

-0.7

173.0

126.5

-46.5

-26.9%

Office of the First Minister
and Deputy First Minister

6.5

-1.4

 

-2.0

-0.2

2.9

1.9

-1.0

-34.4%

Total Departments

1,279.7

-18.8

17.7

-14.8

-12.1

1,251.8

1,014.2

-237.6

-19.0%

Other Bodies

 

 

 

 

 

 

 

 

 

Assembly Ombudsman/Commissioner

0.0

0.0

 

0.0

 

0.0

0.0

0.0

-26.9%

Food Standards Agency

0.1

0.0

 

 

 

0.1

0.0

0.0

-21.7%

Northern Ireland Assembly

2.0

0.0

-1.0

-0.9

-0.1

0.0

0.0

0.0

50.0%

Northern Ireland Audit Office

0.1

0.1

 

 

 

0.3

0.2

-0.1

-32.5%

Northern Ireland Authority for Utility Regulation

0.0

0.0

 

0.1

 

0.1

0.1

-0.1

-52.5%

Total Other Bodies

2.2

0.2

-1.0

-0.8

-0.1

0.5

0.3

-0.2

-33.2%

TOTAL

1,282.0

-18.6

16.7

-15.6

-12.2

1,252.3

1,014.5

-237.8

-19.0%

Underspend figures relate to a comparison between department’s final planned position, after the outcome of February Monitoring, and their final outturn position based on audited resource accounts

Figures showing as £0.0m reflect an underlying amount of less than £50k

2006-07 - Capital Expenditure

 

Opening Monitoring

June Monitoring Changes

October Monitoring Changes

December Monitoring Changes

February Monitoring Changes

Final Plan

Final Outturn

£ million
Under(-)/ Over (+) Spend

% Underspend

Departments

 

 

 

 

 

 

 

 

 

Agriculture and Rural Development

64.2

-21.9

0.4

5.3

 

48.0

42.1

-5.9

-12.3%

Culture, Arts and Leisure

31.8

-5.0

-0.4

-4.7

 

21.7

15.3

-6.4

-29.4%

Education

213.5

2.6

-0.7

-44.1

-12.5

158.8

132.5

-26.2

-16.5%

Employment and Learning

75.5

-3.8

-1.3

-10.2

 

60.2

53.8

-6.4

-10.7%

Enterprise, Trade and Investment

61.0

5.5

-12.6

-27.7

-0.7

25.5

24.4

-1.1

-4.3%

Finance and Personnel

42.2

19.4

-0.8

-7.9

 

52.8

43.2

-9.7

-18.3%

Health, Social Services and Public Safety

188.2

47.6

0.6

-38.6

 

197.8

189.1

-8.7

-4.4%

Environment

11.0

4.9

 

1.5

 

17.5

13.5

-4.0

-23.0%

Regional Development

397.8

25.0

-0.2

-5.2

3.5

420.9

423.5

2.6

0.6%

Social Development

192.4

-15.6

-6.0

-37.3

-47.1

86.4

68.4

-18.0

-20.8%

Office of the First Minister and Deputy First Minister

8.8

-4.7

-1.3

-0.4

 

2.3

1.4

-0.9

-37.3%

Total Departments

1,286.3

54.1

-22.3

-169.4

-56.9

1,091.8

1,007.2

-84.6

-7.8%

Other Bodies

 

 

 

 

 

 

 

 

 

Assembly Ombudsman/Commissioner

0.0

0.0

 

 

 

0.0

0.0

0.0

-54.5%

Food Standards Agency

0.1

0.0

 

0.0

 

0.0

0.0

0.0

-22.2%

Northern Ireland Assembly

2.0

0.0

-1.0

-0.5

-0.2

0.3

0.1

-0.2

-78.4%

Northern Ireland Audit Office

0.3

0.1

 

0.6

 

1.0

0.7

-0.2

-21.9%

Northern Ireland Authority for Utility Regulation

0.0

0.1

 

0.0

 

0.1

0.0

-0.1

-73.1%

Total Other Bodies

2.4

0.2

-1.0

0.1

-0.2

1.4

0.9

-0.5

-38.3%

TOTAL

1,288.7

54.2

-23.3

-169.3

-57.1

1,093.3

1,008.1

-85.2

-7.8%

Underspend figures relate to a comparison between department’s final planned position, after the outcome of February Monitoring, and their final outturn position based on audited resource accounts

Figures showing as £0.0m reflect an underlying amount of less than £50k

2007-08 - Capital Expenditure

 

Opening Monitoring

June Monitoring Changes

October Monitoring Changes

December Monitoring Changes

February Monitoring Changes

Final Plan

Provisional Outturn

£ million
Under(-)/ Over (+) Spend

% Underspend

Agriculture and Rural Development

83.0

-8.8

0.8

-7.2

 

67.7

44.3

-23.4

-34.6%

Culture, Arts and Leisure

43.0

-13.1

2.3

-0.1

 

32.1

28.2

-3.9

-12.2%

Education

279.8

-28.9

-29.0

-28.6

 

193.3

157.7

-35.5

-18.4%

Employment and Learning

68.9

-14.9

1.1

-1.0

 

54.1

46.0

-8.1

-15.0%

Enterprise, Trade and Investment

77.5

-7.1

-17.7

-31.8

-2.5

18.5

15.1

-3.4

-18.3%

Finance and Personnel

51.1

2.1

9.6

-5.5

-3.3

53.9

51.4

-2.5

-4.6%

Health, Social Services and Public Safety

177.8

12.8

-3.4

 

0.0

187.2

184.4

-2.8

-1.5%

Environment

9.8

3.5

0.3

-1.0

-0.1

12.5

9.4

-3.1

-24.7%

Regional Development

373.1

-29.3

38.1

9.6

-15.9

375.6

371.9

-3.7

-1.0%

Social Development

231.3

-67.6

18.1

1.3

19.0

202.1

213.0

10.9

5.4%

Office of the First Minister and Deputy First Minister

11.7

 

-9.3

0.0

0.0

2.5

2.7

0.2

8.0%

Total Departments

1,407.0

-151.4

11.0

-64.3

-2.8

1,199.4

1,124.1

-75.4

-6.3%

Other Bodies

 

 

 

 

 

 

 

 

 

Assembly Ombudsman/Commissioner

0.0

0.0

0.0

 

 

0.0

0.0

0.0

-36.8%

Food Standards Agency

0.1

0.0

 

-0.1

 

0.0

0.0

0.0

-40.0%

Northern Ireland Assembly

2.0

0.2

 

 

 

2.2

1.8

-0.4

-18.2%

Northern Ireland Audit Office

0.3

0.1

 

 

 

0.4

0.3

-0.1

-15.8%

Northern Ireland Authority for Utility Regulation

0.0

0.1

 

 

 

0.1

0.1

0.0

-38.8%

Total Other Bodies

2.4

0.5

0.0

-0.1

 

2.8

2.3

-0.5

-19.3%

TOTAL

1,409.4

-151.0

11.0

-64.3

-2.8

1,202.2

1,126.3

-75.9

-6.3%

Underspend figures relate to a comparison between department’s final planned position, after the outcome of February Monitoring, and their provisional outturn position provided in May 2008. Final Outturn will be available in the autumn following the production of resource accounts.

Figures showing as £0.0m reflect an underlying amount of less than £50k

Annex E

£4.775 billion in Unitary payments have already been committed under PFI/PPP signed agreements at July 08

Unitary Costs Per Year Table (July 08)

Year

Payment (£m)

Year

Payment (£m)

2008-09

131.59

2024-25

185.59

2009-10

155.94

2025-26

187.88

2010-11

180.62

2026-27

184.93

2011-12

165.36

2027-28

186.05

2012-13

164.03

2028-29

188.07

2013-14

166.60

2029-30

191.97

2014-15

163.64

2030-31

177.48

2015-16

167.14

2031-32

151.48

2016-17

170.54

2032-33

114.80

2017-18

173.95

2033-34

111.56

2018-19

173.26

2034-35

114.13

2019-20

177.02

2035-36

116.96

2020-21

180.57

2036-37

85.67

2021-22

179.41

2037-38

49.78

2022-23

178.27

2038-39

18.84

2023-24

182.06

2039-40

0.58

Chairperson’s Letter of 25 November 2008 to Mr Leo O’Reilly

NIA Logo (Black).ai

Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Alison.Ross@niassembly.gov.uk

Date: 25 November 2008

Mr Leo O’Reilly
Accounting Officer
Department of Finance and Personnel
Rathgael House
3rd Floor
Balloo Road
Bangor
BT19 7NA

Dear Leo

NIAO Report ‘Reinvestment and Reform:
Improving Northern Ireland’s Public Infrastructure December 2006’

Thank you for your response of 25 July 2008 to the Committee’s request for written evidence in relation to the NIAO report listed above.

This information will be included in the report which the Committee will publish in due course.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Chairperson’s Letter of 29 September 2008 to Mr Stephen Quinn

NIA Logo (Black).ai

Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Jim.Beatty@niassembly.gov.uk

Date: 29 September 2008

Mr Stephen Quinn
Accounting Officer
Department of Enterprise, Trade and Investment
Netherleigh
Massey Avenue
Belfast
BT4 2JP

Dear Stephen

NIAO Report: Insolvency and the Conduct of Directors (HC 816)

The Committee has requested that I ask you to provide written evidence in relation to the above report.

The Committee has a number of questions as follows:

1. What action has the Insolvency Service taken to strengthen the compliance of Insolvency Practitioners (para 2.42)?

2. Has there been a recent independent review, by external assessors (such as the GB Insolvency Service Inspectorate), of the Official Receiver’s administrative handling of cases (para. 2.51)? If not, why not?

3. Insolvency Practitioners must provide the Insolvency Service with sufficient evidence to substantiate their opinion on the conduct of directors (para.3.11). What action have you taken to ensure that this is happening?

4. Does the Insolvency Service carry out spot checks of Practitioners’ files where a return of no unfit conduct is made (para.3.16)?

5. Because not all Insolvency Practitioners’ reports of unfit conduct lead to director disqualification, it is crucial that the Insolvency Service confirms that these reports are appropriate and justified by the available evidence. What procedures have you in place to ensure that only appropriate cases are fully investigated (para.3.33)?

6. In the current economic climate, the number of insolvencies is likely to increase, adding to your workload. What contingency plans has the Insolvency Service in place to deal with fluctuations in workload (para.3.43)?

7. What steps have you taken to involve Practitioners and the Recognised Professional Bodies in discussions about improving the effectiveness of the implementation of director disqualification legislation (para. 4.28)?

8. What has the Companies Registry done to attempt to ensure that disqualified directors are not taking on other directorships within their period of disqualification (para. 4.39)?

9. What has the Insolvency Service done to facilitate the public reporting of suspected breaches of disqualification regulations (para. 4.41)?

I would appreciate a response by 27 October 2008.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Correspondence of 30 October 2008 from Mr Stephen Quinn

FROM THE PERMANENT SECRETARY
Stephen Quinn

Paul Maskey MLA
Chairperson
Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX

Netherleigh
Massey Avenue
BELFAST BT4 2JP
Telephone: (028) 9052 9441
Facsimile: (028) 9052 9545
Email: stephen.quinn@detini.gov.uk
janice.davison@detini.gov.uk
Our ref: PSDETI 432/08

30 October 2008

Dear

NIAO Report: Insolvency and the Conduct of Directors (Hc 816)

I acknowledge receipt of your 29 September 2008 letter, apologise for not meeting your 27 October deadline, and respond as follows to the questions asked by the Committee:

1. What action has the Insolvency Service taken to strengthen the compliance of Insolvency Practitioners (para 2.42)?

At para 2.43 of the NIAO Report, the Insolvency Service indicated that changes to the minimum standard document, which governs inspections of Insolvency Practitioners (IPs), would require UK-wide agreement from Recognised Professional Bodies (RPBs) and from the Insolvency Service in GB, through the Joint Insolvency Committee (JIC) which includes representatives of the RPBs and the Insolvency Service in GB. In accordance with the recommendation, the Insolvency Service raised the matter with the JIC as an Agenda item for discussion at the JIC Meeting held on 14 March 2006. JIC considered the matter but did not consider additional checks to be appropriate as it concluded that current monitoring practices, which already enable IPs’ file notes to be examined and queried where appropriate, are sufficient. The matter was also considered by the Insolvency Service in GB when it undertook a revision of the Principles of Monitoring document during 2006 / 07. Its conclusion was the same as that of the JIC. In addition to the above, I would refer to the actions taken by the Directors Disqualification Unit as set out below in response to questions 3 and 4. These actions have resulted in a high standard of reporting. The monitoring of trends in IPs’ reports, as referred to in the response to Question 5 below, has also strengthened the process.

2. Has there been a recent independent review, by external assessors (such as the GB Insolvency Service Inspectorate) of the Official Receiver’s administrative handling of cases (para 2.51)? If not, why?

While the Insolvency Service has not engaged external assessors in the current inspection cycle, a review of the Official Receiver’s Unit will be undertaken in the current financial year by the Insolvency Service monitoring team. This work will be carried out in accordance with the agreed and consistent UK monitoring standard as approved by the JIC. The team’s findings will be subject to a formal acceptance process, involving the Official Receiver, and any issues arising will be formally followed up in an action plan. The whole process will also be subject to an independent review by the Department’s Internal Audit Service during 2008/09.

Insolvency Service assessors already work with staff from the GB Insolvency Service Inspectorate in the joint monitoring of a number of RPBs. The Insolvency Service is exploring the opportunity to arrange for GB staff to join Insolvency Service staff in conducting future reviews of the Official Receiver. We already have considerable cross-fertilization with the Insolvency Service in GB.

3. Insolvency Practitioners must provide the Insolvency Service with sufficient evidence to substantiate their opinion on the conduct of Directors (para 3.11). What action have you taken to ensure that this is happening?

Workshops, covering the whole range of disqualification work, were arranged for IPs and their staff in March and September 2005, March and June 2006 and October 2007. A further workshop is planned for early 2009. Particular emphasis was given to the need for IPs to provide the Insolvency Service with relevant and detailed information on directors. This matter has also been highlighted at meetings with RPBs and individual IPs. The Disqualification Unit has also drawn up a new expanded information form of checklist and a reporting schedule for IPs to complete at the time they prepare a report or return. This checklist has been in use since March 2006. These measures have resulted in the Disqualification Unit now receiving more detailed evidence underlying an IP’s opinion at an earlier stage than before.

4. Does the Insolvency Service carry out spot checks of Practitioners’ files where a return of no unfit conduct is made (para 3.16)?

The Disqualification Unit now checks all returns of no unfit conduct. A more in depth investigation is triggered in cases where Directors have been involved in previous failures; or where there is a very large deficiency; or where the Unit has received information which would suggest that there had been unfit conduct on the part of the directors. Over the last three years, this additional spot checking procedure has resulted in reviews which have led to two directors being disqualified for six years each.

5. Because not all Insolvency Practitioners’ reports of unfit conduct lead to director disqualification, it is crucial that the Insolvency Service confirms that these reports are appropriate and justified by the available evidence. What procedures have you in place to ensure that only appropriate cases are fully investigated (para 3.33)?

The Disqualification Unit has implemented the recommendations made in para 3.33. These include an experienced examiner conducting an initial appraisal of reports; early meetings with IPs as appropriate; and the monitoring of trends in IPs’ reports. The Insolvency Service considers that these procedures, including those introduced following the NIAO report, ensure that only appropriate cases are fully investigated.

6. In the current economic climate, the number of insolvencies is likely to increase, adding to your workload. What contingency plans has the Insolvency Service in place to deal with fluctuations in workload (para 3.43)?

In addition to the traditional use of the Trainee Examiner Scheme and Trawl Notices to fill specific professional posts, the Insolvency Service now has the opportunity to fill appropriate posts through the DFP led Corporate Recruitment of Accountants Scheme. The Disqualification Unit now has a full complement of qualified staff to deal with its current workload. However the workload of the Official Receiver has increased significantly and this is expected to continue. In recognition of this, we have registered bids for a number of newly recruited Accountants with DFP. If these bids are successful, the Insolvency Service has the budget to fill its full complement of qualified staff in the organisation. Over the next twelve months, a number of the trainee examiners are also expected to be promoted. They will focus on investigation work. A further option is the use of private sector solicitors to undertake some investigation work and drafting of affidavits. This would require training resource and will be examined once longer term trends become clearer.

7. What steps have you taken to involve Practitioners and the Recognised Professional Bodies in discussions about improving the effectiveness of the implementation of director disqualification legislation (para 4.28)?

Since 2005, ten meetings and workshops have been arranged for IPs and their staff. Five meetings have also been held with RPBs and with individual IPs and members of their staff.

The Insolvency Service considers that these meetings have resulted in a more effective implementation of the disqualification legislation. This has been achieved through greater willingness on the part of IPs to contact the Disqualification Unit to discuss relevant issues in advance of making a formal report; through more relevant and detailed information being provided with reports; and through a generally improved working relationship.

8. What has the Companies Registry done to attempt to ensure that disqualified directors are not taking on other directorships within their period of disqualification (para 4.39)?

Companies Registry’s systems hold information on disqualified directors and they host a disqualified director register as part of the new online service launched in November 2005. Upon receipt of Insolvency Service information on director disqualifications, the Registry updates the internal records of the company to indicate that the director is disqualified. This is indicated similarly for all directorships. It also alerts the Registry should the director try to appoint himself as the director of a new company during the period of disqualification. The Registry is notified by the Insolvency Service when the disqualification period has ended.

Companies Registry will integrate with Companies House in October 2009. Any further improvements to the management of disqualification notifications, including the introduction of new fields such as national insurance numbers, will fall to Companies House. Until then, Companies Registry is content that applying the date of birth of the director provides a satisfactory “unique identifier”.

9. What has the Insolvency Service done to facilitate the public reporting of suspected breaches of disqualification regulations (para 4.41)?

The Disqualification Unit prepares a press release in respect of every director disqualified and the ‘Notes to Editors’ part of the press release includes a note to the effect that any person with information to suggest that a disqualified person has acted in contravention of an Order or Undertaking should telephone the Unit on a number specified. The Insolvency Service website provides similar advice and information on how to complain against a disqualified director acting illegally. Over the last twelve months, thirty press releases have been issued and, in the same period, the Unit has been contacted by three members of the public who have provided information on possible contraventions of disqualification orders or undertakings.

Yours sincerely

STEPHEN QUINN

Chairperson’s Letter of 25 November 2008 to Mr Stephen Quinn

NIA Logo (Black).ai

Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Alison.Ross@niassembly.gov.uk

Date: 25 November 2008

Mr Stephen Quinn
Accounting Officer
Department of Enterprise, Trade and Investment
Netherleigh
Massey Avenue
Belfast
BT4 2JP

Dear Stephen

NIAO Report: Insolvency and the Conduct of Directors (HC 816)

Thank you for your response of 30 October 2008 to the Committee’s request for written evidence in relation to the NIAO report listed above.

This information will be included in the report which the Committee will publish in due course.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Chairperson’s Letter of 29 September 2008 to Mr Paul Sweeney

Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Jim.Beatty@niassembly.gov.uk

Date: 29 September 2008

Mr Paul Sweeney
Accounting Officer
Department of Culture, Arts and Leisure
Interpoint
20-24 York Street
Belfast
BT15 1AQ

Dear Paul

NIAO Report: Collections Management in the Arts Council of Northern Ireland (HC 1541)

The Committee has requested that I ask you to provide written evidence in relation to the report detailed above.

The Committee has a number of questions as follows:

1 Paragraph 1.5 of the C&AG’s report indicates that the Council completed a reconciliation of its records in May 2006. This identified 52 works, valued at £28,000, which required further follow up. The Council was unable at this time to make a definitive statement on whether there were further losses to write-off. What is the latest position in respect of these 52 works, how many of them have been written-off and what is the value of these write-offs?

2 Paragraphs 1.12 and 1.13 note that the Council has taken action to expand its on-line photographic database to include the entire collection. Can you provide an update of the percentage of the collection which is now available on this on-line database?

3 Paragraphs 1.18 and 1.19 indicate that promotion of the Council’s works of art collection was limited and that those works which were on loan had an inadequate geographical spread. What actions have been taken to increase public access and awareness of the Council’s collections and to enhance outreach and accessibility for curators, enquirers and the general public?

4 Paragraph 1.30 explains that the Council has developed and adopted a new acquisition policy. How does this policy ensure that acquisitions are informed by the needs and aspirations of those museums, galleries and other bodies to whom it is likely to gift donations at a later date?

5 Paragraph 1.31 highlights that the Council’s acquisition policy operates independently of the collection of works of art that is procured and managed separately by DFP. Paragraph 1.33 also refers to utilising the National Museums and Galleries of Northern Ireland collection. Given the values of these separate collections, what have the three bodies done to examine the scope for co-ordinating their activities to ensure the most effective use is made of public assets under their stewardship?

6 Paragraph 1.36 highlights concerns regarding the conditions in which the collection is stored. What specific improvements have been made in the storage conditions of the collection to protect this public asset?

7 Paragraph 2.6 indicates that the Council needed to obtain approvals in order to enable it to progress with gifting of the collection. What progress has been made in the introduction of a gifting scheme? And what consideration has been given to the disposal of works that are no longer required?

8 Paragraph 2.21 notes that the Council had been unable to identify the location of 56 works under its Partnership Purchase Scheme (PPS). Has the Council now completed its exercise to reconcile its PPS records to the works retained on location and how many works remain unidentified?

I would appreciate a response by 27 October 2008.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Correspondence of 27 October 2008 from Mr Paul Sweeney

Date: 27 October 2008
Our ref: SECCOR/602/2008

Mr Paul Maskey
Chairperson
Northern Ireland Assembly
Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX

NIAO Report: Collections Management in the Arts Council of Northern Ireland (HC 1541)

Thank you for your letter of 29 September 2008 relating to the above named report. Please find below the current position on each of the issues raised.

Status of Main Collection Missing Works:

1. The Arts Council has confirmed that since the publishing of the NIAO report in August 2006 three works have been recovered. However, in spite of issuing 153 letters to all current and previous borrowers of works, other public collections and various institutions and bodies, placing the works with values of over £500 on the Art Loss Register and a public call for assistance in tracing works, the Arts Council was unable to recover additional works.

It, therefore, obtained DFP approval to reconcile the position in relation to the remaining 49 works (39 categorised as being under £500 and 10 over £500), by writing them off. The total write off cost for works from the main collection at purchase price was £8,330.

Electronic Database:

2. 80% of the historic collection, i.e. those works purchased before 1999, is on the Arts Council photographic database. 90% of the new acquisitions, i.e. works purchased from 2003 onwards, are on the database. Therefore, 81.5% of the entire collection is now available to view on the Arts Council’s photographic database.

The remainder of the works are being professionally documented, as the current images held are of a poor quality. The Arts Council expects the database to be complete by December 2008.

100 of the new acquisitions and 176 of the historic collection can be viewed on the Arts Council’s website at http://www.artscouncil-ni.org/collection/collection.htm

It is not possible to publish the entire collection on the website for copyright reasons.

Accessibility of Collection:

3. A number of actions have been taken forward by Arts Council to enhance outreach and accessibility for curators, enquirers and the general public. This includes exhibitions and the loan of collections. Attached at Annex A is a list detailing exhibitions and significant loans since 2006.

The Council also makes smaller loans, including one-offs as talking pieces for businesses or other organisations to encourage them to consider purchase for their premises.

Many of the exhibitions have been accompanied by talks on the collection, and the distribution of catalogues which provide a survey of works purchased from 2003 and include a background to the acquisitions policy and collections of the Council.

The Council also actively promotes its tours to local venues. Media interest has increased awareness of the exhibitions and artists featured.

The Arts Council is frequently contacted by curators, galleries, students, artists and interested members of the public about the collection and these enquiries / requests are dealt with routinely. It also takes the opportunity to showcase works when the Arts Council building is open to the public during European Heritage Open Days, and through the on-line database of recent acquisitions since 2003, which is well visited.

Acquisition Policy:

4. The Arts Council has sought to ensure that acquisitions are informed by the needs and aspirations of those organisations to which it is likely to gift donations at a later date. A representative of National Museums Northern Ireland (NMNI) attends its Acquisitions Committee as an observer. In addition, the gifting process will further inform the Council as to the current and future needs of local museums. The Council’s loans policy provides important information about aspirations for art works within a wider constituency.

Co-Ordination of Acquisitions – DFP, ACNI and NMNI:

5. The Arts Council and DFP have met on several occasions to discuss respective acquisitions policy and to share information. The two bodies have developed a co-operation agreement, a copy of which is attached at Annex B. In addition, the Arts Council has developed a collection management handbook which is based on the DFP collection handbook.

A business case on the gifting of the collection has been developed. The Arts Council and NMNI have worked together to develop a detailed assessment of the impact of NMNI receiving the Arts Council to inform the business case. The two organisations are working with DCAL on the case for a National Gallery for NI in which to showcase the national and Arts Council collections.

Storage Conditions for Collection:

6. Significant steps have been taken to improve the storage conditions of the collection and protect this important public asset.

The Arts Council has acquired improved storage with Delivery Services and specialist art removals. This includes improved climate control, racking, and security protocols and enables ACNI to store the most valuable works in two locations thereby limiting risk.

The Council is also in discussions with NMNI about the potential for a shared storage facility by using the facilities NMNI has taken to house its collection during the refurbishment of the Ulster Museum. This would provide added protection in the form of high specification storage for the most valuable items in the Arts Council collection.

Gifting Scheme – Progress Update and Disposal of Works:

7. The Arts Council has submitted a business case to DCAL to seek approval to gift its collection and jointly owned works under its former Partnership Purchase Scheme. A decision on the business case is expected by December 2008.

The Council proposed in its business case to invite a second tier of public bodies to apply for works which are not gifted to museums in the first instance. Works which are left following the gifting process will be disposed of in line with best practice guidelines from Museums Association. This guidance can be viewed on the Museums Association website at: http://www.museumsassociation.org/asset_arena/text/it/disposal_toolkit.pdf

Partnership Purchase Scheme – Location of Works

8. The NIAO report noted that the Arts Council had been unable to identify the location of 56 works under its Partnership Purchase Scheme (PPS). 14 of these works were located following the publication of the NIAO report leaving 42 works unaccounted for. The Arts Council sought authority to write off these and other works from the Partnership Purchase Scheme at a cost of £6,800.

Eight works with a value of over £500 were actively pursued with the partners for recovery of 50% of the current market value. As a result of this exercise one high value work has been relocated by the partner, the Council recovered £5,009 towards six lost works, and a payment of £500 for one work is outstanding with Derry City Council. We expect this outstanding amount to be paid in due course.

The Council conducted its last inventory in May 2008 and all existing works retained under the scheme are accounted for.

I trust that you will find this information helpful.

Yours sincerely

PAUL SWEENEY

cc: Roisin McDonough

Annex A

New Collection Exhibitions and Loans

Borrower

Venue

Dates

Comments

Cancer Centre Belfast City Hospital

Cancer Centre Belfast City Hospital

23/10/06-23/10/08

Martin Cooke, Manhattan

British Council

Czech Museum of Fine Arts, Prague

15/06/06 - 03/09/06

D Murray Piece. Part of larger exhibition

British Council

Siamsa Tire Gallery, Tralee

21/10/06 - 19/11/06

D Murray Piece. Part of larger exhibition

Omagh

Omagh Tourist Information Centre

16/10/06 - 20/10/06

North Down

Bangor Heritage Centre

14/12/06 - 07/01/07

Our new acquisitions show

Armagh

Market Place Theatre

26/01/07 - 23/02/07

Our new acquisitions show

Enniskillen

Higher Bridges Gallery

02/03/07 - 28/03/07

Our new acquisitions show

Antrim

Clotworthy Arts Centre

03/04/07 - 27/04/07

Our new acquisitions show

Katzen Arts Centre,American University Museum

Katzen Arts Centre, American University

24/04/07 - 29/07/07

Included pieces outwith Collection.

Craft NI co-ordinated show

Smithsonian Institutions

01/05/07-31/08/07

Part of a larger craft show

Lisburn City Library

Lisburn City Library

14/05/07 - 31/07/07

Our new acquisitions show

Department of Finance and Personnel

Castletown House, Ireland

05/07/07 - 26/08/07

DFP Tour. Part of larger exhibition.

Belfast

Ormeau Baths Gallery

02/08/07 - 30/08/07

Part of larger craft show.

Belfast

Grand Opera House

01/09/07 - 11/11/07

Our new acquisitions show

Department of Finance and Personnel

Louvain Institute, Belgium

03/09/07 - 23/09/07

DFP Tour. Part of larger exhibition.

Portadown

Millennium Court Arts Centre

06/09/07 - 13/10/07

Part of larger craft show.

Belfast

Golden Thread Gallery

26/09/07 - 09/11/07

Part of larger exhibition.

Down

Down Civic Arts Centre

08/10/07 - 06/11/07

Our new acquisitions show

Department of Finance and Personnel

Coast Guard Station Arts Centre, Ireland

11/10/07 - 02/11/07

DFP Tour. Part of larger exhibition.

Belfast

Grand Opera House

12/11/07 - 31/03/08

Department of Finance and Personnel

University of Ulster

15/11/07 - 30/11/07

DFP Tour. Part of larger exhibition.

Department of Finance and Personnel

Millennium Forum, Londonderry

05/12/07 - 19/12/07

DFP Tour. Part of larger exhibition.

Larne Borough Council

Carnegie Library and Museum

07/01/08 - 07/02/08

Our new acquisitions show

Ballymoney Borough Council

Ballymoney Arts Centre

29/01/08-26/02/08

Exhibition of our works

NI Assembly, Parliament Buildings

Members lounge, Parliament buildings

02/05/08-28/02/09

Three works on loan. Two Carol Graham and Felim Egan

Human Rights Commission

Human Rights Commission

22/08/08-31/08/09

Single work loan, The three sections of the David

McIlveen Corridors of Power series.

Construction Industry
Training Board

CITB in John Street South

02/09/08-31/08/09

Single work loan, Simon McWilliams piece.

Castlereagh Borough Council

Cregagh Library

01/10/08-31/10/08

Our new acquisitions show

Recent Old Collection Loans

HighLanes Gallery, Drogheda

Highlanes Gallery, Drogheda

22/02/07-30/04/07

11 works lent for a major show. Works included

Colin Middleton, Dan O’Neill, Basil Blackshaw,

George Campbell, Patrick Collins and F.E.

McWilliam.

Irish Museum of Modern Art

Irish Museum of Modern Art

26/02/08-18/05/08

Cecil King Berlin Painting for major retrospective.

OPW/DFP

Millennium Court 6th August, University College Hospital Galway, 4th September, Grand Opera House 1st October, Wexford Vocational College, Westgate, Wexford 25th October, OPW, Dublin 5th December.

28/05/08-30/01/09

Romeo Toogood piece

Omagh District Council

Strule Arts Centre

08/09/08-25/10/08

Several works for a larger exhibition

Golden Thread Gallery

Golden Thread Gallery

20/09/08-03/11/08

Phil Napier piece for a larger show.

Banbridge District Council

F.E. MacWilliam Centre, Banbridge

08/09/08-28/02/09

Bird and Cage, Chocolate Soldier, Umbilicus,

Three sisters

Annex B

Co-operation agreement between the Arts Council and Department of Finance and Personnel on the operation of collections held by both bodies.

Background

ACNI and DFP have met on several occasions to review respective policies and discuss areas of co-operation. In short, ACNI acquires work to support living artists and to promote contemporary art, while DFP purchases for the government estate. Both bodies are conscious of the need to keep acquisitions policy under review: for ACNI this means the future gifting of works to registered museums and galleries in NI and the impact of that on work purchased, while for DFP the implication of the changing dynamic of the workplace and office accommodation raises interesting questions about the type and nature of works which might be acquired or commissioned. Both bodies will continue to meet and keep abreast of policy development, and provide mutual advice where appropriate.

Areas of Co-Operation

1. ACNI has modelled its collection management handbook on that developed and operated by DFP. This ensures that both bodies are operating comparable systems of care and management. Both bodies have exchanged their management handbooks as there are organisational variations which may be of use to the other.

2. A member of the Arts Council’s specialist staff is available to give advice on purchase for the DFP collection.

3. Both bodies will exchange annual touring schedules to avoid venue clashes and ensure maximum public benefit for respective touring plans. Relevant staff from both bodies will be invited to attend exhibition previews.

4. Both bodies will exchange annual lists of purchases to keep abreast of respective acquisitions.

5. Both bodies will examine the question of storage to ascertain if there is potential for cost sharing or collaboration on this area of collections management.

6. ACNI has undertaken the following;

a) to arrange a demonstration for DFP staff on the new ACNI collection management database;

b) to forward for information ACNI’s questionnaires on touring exhibitions evaluation, and its artists’ questionnaire on the effectiveness of its acquisitions policy;

c) to forward a copy of the ACNI business case for gifting;

d) to forward a copy of ACNI’s policy on disposal .

Chairperson’s Letter of 25 November 2008 to Mr Paul Sweeney

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Public Accounts Committee
Room 371
Parliament Buildings
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Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Alison.Ross@niassembly.gov.uk

Date: 25 November 2008

Mr Paul Sweeney
Accounting Officer
Department of Culture, Arts and Leisure
Interpoint
20-24 York Street
Belfast
BT15 1AQ

Dear Paul

NIAO Report: Collections Management in the Arts Council of Northern Ireland (HC 1541)

Thank you for your response of 27 October 2008 to the Committee’s request for written evidence in relation to the NIAO report listed above.

This information will be included in the report which the Committee will publish in due course.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Chairperson’s Letter of 29 September 2008 to Dr Andrew McCormick

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Public Accounts Committee
Parliament Buildings
Room 371
Stormont
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Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Jim.Beatty@niassembly.gov.uk

Date: 29 September 2008

Dr Andrew McCormick
Accounting Officer
Department of Health, Social Services & Public Safety
Room C5.11
Castle Buildings
Stormont
Belfast
BT4 3SQ

Dear Andrew

NIAO Report: The Management of Surplus Land and Property in the Health Estate (HC298) and the follow up NIAO Report: Departmental Responses to Recommendations in NIAO Reports (HC 1149)

NIAO Report: The Fire and Rescue Service Training Centre (HC 80)

The Committee has requested that I ask you to provide written evidence in relation to the two reports detailed above. Your responses will be included in a composite report detailing progress on a number of NIAO reports which have not been the subject of an evidence session.

The Committee has a number of questions in relation to the Management of Surplus Land and Property in the Health Estate and the follow up report Departmental Responses to Recommendations in NIAO Reports. It is appreciated that some of these points may well have been answered as part of NIAO’s on-going follow-up work. However, this exercise is intended to complete the accountability cycle and put the responses into the public arena.

The Committee’s questions are as follows:

1 One of the specified outputs of the Department’s Asset Management Review in 2006 was to be the establishment of a central database on property holdings. Was this database established and how is it maintained and updated?

2 What progress has been made against the targets set in September 2006 for disposal of Trusts’ land and buildings?

3 A review of the effectiveness of the system for overseeing the disposal of surplus property assets was due to be completed by 30 September 2006. What were the findings of this review?

4 In the lead up to the implementation of the Review of Public Administration, a Departmental working group was to consider, inter alia, whether existing capital charging arrangements provided sufficient incentive for Trusts to identify non-essential estate for disposal. What has been the outcome of the working group’s deliberations on this issue?

The Committee has a number of questions in relation to the Fire and Rescue Service Training Centre report as follows:

1 A key objective in establishing the Boucher Centre was to increase the total days’ training provided. However, paragraphs 2.5 to 2.9 point to major shortfalls in the days provided in the first 5 years after the Centre was opened. In particular, there was a 33 per cent shortfall in Priority 1 training and a 75 per cent shortfall in Priority 2. What levels of Priority 1 and Priority 2 training have been provided at Boucher Crescent in the last two years (2006-07 and 2007-08), compared with those set down in the economic appraisal for the Boucher Crescent site?

2 Paragraphs 2.15 to 2.17 outline the removal of breathing apparatus training facilities from the approved project, together with the circumstances surrounding the severe restrictions on ‘real fire’ training at Boucher Crescent. In the absence of the specialist facilities originally planned for Boucher Crescent, what steps has NIFRS taken to provide these essential skills at other locations and how does NIFRS ensure that the absence of proper ‘real fire’ and breathing apparatus training facilities does not result in fire fighters and the general public being put at risk?

3 NIFRS has incurred a number of additional costs that were not foreseen. Paragraph 2.14 and figure 3 explain that an additional £68,000 had been incurred each year because of the need to keep the previous training centre open. Paragraph 2.16 says that the additional overtime associated with the need to provide training at Boucher Crescent on Sundays had not been calculated, at that stage. What have been the total savings foregone from the need to keep the old training centre in operation since Boucher Crescent was opened and what have been the additional costs of overtime to deliver real fire training at the Boucher site since the NIAO report was published?

4 Paragraph 2.18 explains that the ground rent for the Boucher Crescent site was increased by 282 per cent in 2002. How much additional ground rent has NIFRS paid since 2002, over and above that projected in the Boucher Crescent business case?

5 Paragraphs 3.3, 3.7 and 3.12 make specific recommendations as to how lessons arising from problems at Boucher Crescent should be factored in to any future appraisal for provision of new training facilities. These relate to the need to fully appraise a broader range of options and to analyse risks comprehensively. Would you please explain to what extent these recommendations were followed in producing the revised appraisal, commissioned in 2005?

6 The Committee understands that NIFRS is now planning to provide a new training centre on the PSNI site at Cookstown. How has the Authority ensured that all the requirements laid down in the economic appraisal will be provided there, and what will be the additional costs (or savings) associated with this approach?

7 Paragraph 3.20 recommends that the Authority should give particular consideration to management and operational constraints (including problems with continuity of senior training staff and poor attendance rates) that had previously impeded training delivery. What action did the NIFRS take in response to this recommendation, and what have been the outcomes?

I would appreciate a response by 27 October 2008.

Yours sincerely

Signature Paul Maskey.ai

Paul Maskey
Chairperson

Correspondence of 23 October 2008 from Dr Andrew McCormick

App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf
App2d&e2 Letter to Paul Maskey - NIAO Report(s) HC298 HC1149 HC80.pdf

Chairperson’s Letter of 25 November 2008 to Dr Andrew McCormick

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Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Alison.Ross@niassembly.gov.uk

Date: 25 November 2008

Dr Andrew McCormick
Accounting Officer
Department of Health, Social Services & Public Safety
Room C5.11
Castle Buildings
Stormont
Belfast
BT4 3SQ

Dear Andrew

NIAO Report: The Management of Surplus Land and Property in the Health Estate (HC298) and the follow up NIAO Report: Departmental Responses to Recommendations in NIAO Reports (HC 1149)

NIAO Report: The Fire and Rescue Service Training Centre (HC 80)

Thank you for your response of 23 October 2008 to the Committee’s request for written evidence in relation to the NIAO reports listed above.

This information will be included in the report which the Committee will publish in due course.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Chairperson’s Letter of 8 July 2008 to Mr Stephen Peover

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Public Accounts Committee
Room 371
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Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Jim.Beatty@niassembly.gov.uk

Date: 8 July 2008

Mr Stephen Peover
Accounting Officer
Department of Environment
Clarence Court
10 - 18 Adelaide Street
Belfast
BT2 8GB

Dear Stephen

Memorandum of Response: Northern Ireland’s Waste Management Strategy

The Committee has requested that I write to you for an update on the progress against the Department’s responses to the House of Commons Committee of Public Accounts conclusions, including the main conclusions, of the Committee’s report ‘Northern Ireland’s Waste Management Strategy’.

I would be grateful if we could have your response by Tuesday, 5 August 2008.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Correspondence of 5 August 2008 from Mr Stephen Peover

App2f2 AODOEresponseReMORNIWasteManagementStrategy.psd

Response to Conclusions & Recommendations

PAC Conclusion 1

Northern Ireland’s delay in transposing EU Directives into local legislation exposed the UK government to the risk of infraction fines.

Insufficient resourcing of the Department’s legislation team led to Northern Ireland having a large backlog of EU environmental Directives awaiting transposition in 2002 and the risk of UK incurring fines of up to £400,000 per day. Now that the backlog has eradicated, it is essential that the Department keeps is legislation programme in line with the rest of the UK, to ensure that this woeful performance is not repeated.

Response provided 23 May 2006

The Department of the Environment (The Department) accepts the Committee’s criticism that insufficient resourcing of the Department’s legislation team led to considerable delays in transposing EU Directives into local legislation. Since 2004, the Department has provided significant additional resources to enable the backlog to be cleared. The Department agrees with the Committee’s recommendation that its legislation programme should be kept in line with the rest of the UK to ensure that the problems of the past do not recur.

The importance of the prompt introduction of new legislation, the need for minimal delay between new EU or national legislation and, where required, the development of comparable legislation in Northern Ireland are emphasised in the Department’s new Waste Management Strategy for Northern Ireland 2006-2020 “Towards Resource Management” (published on 30 March 2006).

Current Position

The Department’s Planning and Environmental Policy Unit is currently implementing a number of European Waste Directives such as the Waste Electrical and Electronic Equipment, Batteries and Landfill Directives in parallel with the rest of the UK.

The Waste (Amendment) (Northern Ireland) Order 2007 was made on 6 March 2007 and strengthens previous legislation governing the management and disposal of waste. Thus the Order provides stronger powers for enforcement officers and additional powers for the courts to impose wider ranging and more significant financial penalties in order to combat and deter illegal waste activity in Northern Ireland.

Many of the provisions in the Order maintain parity with the position in England and Wales, as introduced by Part 5 of the Clean Neighbourhoods and Environment Act 2005. However the illegal treatment, keeping and deposit of waste is a more serious problem for Northern Ireland, with organised criminal gangs involved in the illegal cross-boundary transport and illegal management of waste. Additional provisions were therefore included in the Order to reflect this situation.

A number of the Order’s provisions became operational on 25th June 2007 and 7 April 2008. Other provisions have not yet come into effect, as subordinate legislation will be required. The drafting of this subordinate legislation will be progressed in line with the Department’s priorities and as resources become available. The Department is currently developing regulations which will give effect to the enhanced enforcement powers in the Order allowing Departmental officials to seize vehicles suspected of involvement in illegal waste activity much more easily than at present. These Regulations are scheduled to be made in 2009.

PAC Conclusion 2

The Department has not yet produced a Sustainable Development Strategy (SDS) and it is now several years overdue.

The UK’s SDS is a cornerstone of environmental policy and each region apart from NI has, in addition, its own SDS, with local objectives and targets. The Department’s legislation team also has responsibility for developing the SDS and did not begin work in earnest until the backlog was cleared in 2004. There can be no further delay in producing Northern Ireland’s SDS, since extra staff are now available and there are equivalent documents for the rest of the UK to act as examples. The Department must ensure that it meets the summer 2006 target date.

Response provided 23 May 2006

The Department accepts the Committee’s criticism of the delay in producing a Sustainable Development Strategy for Northern Ireland. The Department’s Environmental Policy Group has been working closely with counterparts in Defra and the other devolved administrations to ensure that Northern Ireland’s sustainable development strategy will integrate strongly with the UK Framework for Sustainable Development by adopting and extending the guiding principles and priority areas contained within the latter.

To reflect the importance given to the sustainable development (SD) agenda, each Northern Ireland Department appointed a sustainable development “champion” at Deputy Secretary level in March 2005 to help progress the strategy and embed SD within their respective Departments. This arrangement has now been formalised into the creation of a Ministerial led Group chaired by Lord Rooker, Minister for the Environment in Northern Ireland.

The Northern Ireland Strategy, which was published on 9 May 2006, has been developed with the co-operation of the other Government Departments and a wide range of external partners from across all sectors of NI society.

The Strategy will be followed up in the autumn by the first of a series of implementation plans which will set out in more detail the actions to be undertaken to achieve the high level objectives and key targets.

Current Position

Within the Northern Ireland Administration the Office of the First and deputy First Minister (OFMdFM) now has lead responsibility for central sustainable development strategy and policy. Responsibility transferred from Department of the Environment in July 2006 following publication of the Northern Ireland Strategy. This was one of several key measures designed to further embed the principle of sustainable development in government and intended to place it closer to the heart of the Administration than previously.

A second key measure was a decision to introduce a Statutory Duty upon government departments and local councils to promote Sustainable Development. A third was a requirement for each government department to publish a Sustainable Development Action Plan.

To convert the strategy into delivery OFMdFM published an Implementation Plan in November 2006 and brought the Statutory Duty into effect on 31 March 2007 – also the date by which departments were required to have their Sustainable Development Plans in place, which they are.

The DOE Sustainable Development Action Plan has been cascaded through the Department`s Agencies and Divisions and a Steering Group has been formed with responsibility for taking each of the actions forward. The Departmental Board has established related targets for example on reducing official travel and using more sustainable alternatives such as video conferencing; and monitors overall progress.

Along with the other Northern Ireland departments DOE will continue to work closely with OFMdFM as it moves the Administration’s strategy and policy forward.

PAC Conclusion 3

There are limitations in the quality of data used to develop, monitor and report on the Waste Management Strategy and the existing targets are not sufficiently stretching.

The Department must put in place effective and reliable systems for gathering and analysing data for all waste streams, so that its targets and reported statistics are credible. This should be done without delay, to facilitate the development of new targets that can be made to bite. We expect to see such targets in the new Strategy, and reported quarterly in the Department’s website.

Response provided 23 May 2006

The Department fully agrees with the Committee on the importance of data gathering and analysis and will bring forward for public consultation detailed proposals requiring businesses to submit statutory returns on their controlled wastes and the management of these materials.

This information on industrial and commercial wastes will add to that currently returned under the new Waste Management Licensing controls, the Northern Ireland Landfill Allowances Scheme and the WasteDataFlow system to provide data on all principal controlled waste streams.

Ahead of the rest of the UK, the Department began to collect municipal data on quarterly basis from 2003, and analysis of the most recently published figures for the recovery of Municipal Solid Waste and Household Waste indicate that Northern Ireland’s performance, at 22% and 23% recovery respectively, is now on a par with that of England and Wales, and just ahead of Scotland.

All Northern Ireland’s District Councils now submit their information through the national web based system WasteDataFlow and from June 2006, this information will be reported quarterly on the Department’s web site. This will provide the public with the opportunity to measure actual performance against the new targets that have been set in the Department’s Waste Management Strategy for Northern Ireland 2006-2020.

In addition, the Department is continuing with its programme of surveys which has covered 6 waste streams to-date and is currently focussed on Commercial & Industrial Waste and Construction, Demolition & Excavation Waste. This programme spans all the main waste streams and, once verified, the surveys will be published.

Current Position

Northern Ireland Environment Agency (NIEA) produce 6 monthly progress reports for councils and issue draft and final reconciliation as required under NILAS Regs 13 and 14 in order to demonstrate compliance with the EU Landfill Directive. NIEA have published an annual report for the 1st and 2nd NILAS scheme years and this is available on their website http://www.ni-environment.gov.uk/.

For the 3rd NILAS scheme year (07/08) NIEA has published quarterly data on its website, although these figures may be subject to change due to audits, etc. NIEA as monitoring authority for NILAS collects data, such as waste going to landfill, in tonnes. It does not have a statutory remit to estimate or quantify their financial impact

Northern Ireland’s District Councils submit their information through the national web based system WasteDataFlow and since October 2007, this information has been reported quarterly on the Department’s website. This provides the public with the opportunity to measure actual performance against the new targets that have been set in the Department’s Waste Management Strategy for Northern Ireland 2006-2020.

Since January 2008 all sites holding a Waste Management Licence or a Pollution Prevention and Control permit are obligated to submit their waste arising returns online on a structured Quarterly Returns Sheet. These returns forms supersede proposals requiring businesses to submit statutory returns on their controlled wastes and the management of these materials. It is felt that the ability of the various business sectors to report their arisings and the undue burden placed on them would cause the figures they submit to be of a poorer quality than figures obtained from those actually engaged in the business of waste management.

Ahead of the rest of the UK, the Department began to collect municipal data on a quarterly basis from 2003, and analysis of the most recently published figures (2006/07) for the recovery of Municipal Solid Waste (Mun) and Household Waste (HH) indicate that Northern Ireland’s performance, at 27.7% and 25.5% recovery respectively, is now on a par with that of England (30.9% HH, 30.6% Mun) and Wales (21.9% HH (2005/06), 53% Mun (2002/03)), and just ahead of Scotland (22.5% HH, 26.96% Mun (2005/06)).

The Department has published the reports on Commercial & Industrial Waste, Construction, Demolition & Excavation Waste and The Northern Ireland Waste Compositional study, which are available on the web. Municipal Waste Management Reports for 2005/06, 2006/07 and the Annual NILAS Reports for 2005/06, 2006/07 are also available on the NIEA website.

WasteDataFlow returns and the reports on Commercial & Industrial Waste, Construction, Demolition & Excavation Waste surveys were used to compile the NI Waste Statistics Regulations Reports for 2004 and 2006 (a two yearly statutory report for the EC). It is hoped that the online Quarterly Waste Returns will replace the need for such large scale surveys in compiling future Waste Statistics Regulations Reports.

PAC Conclusion 4

Greening Government is an important element of the Strategy, but the Department’s progress in improving its own waste management performance has been slow.

The importance of the leadership role within Government is self-evident, yet the Department only produced its first waste action plan in October 2004. If the Department is to act as an example to others, it must be seen to implement good practice in all aspects of its environmental management. Putting in place targets equivalent to those of its Westminster counterpart would be a good place to start.

Response provided 23 May 2006

The Department agrees with the Committee that, while greening government was a key element of the original Waste Management Strategy for Northern Ireland, the Department’s progress in improving its own waste management has been slow. For this reason the new Waste Management Strategy for Northern Ireland 2006-2020 takes a more robust approach, containing a firm commitment by government to lead others through the example of its own actions.

The Department has already taken steps to put its own house in order by undertaking a waste stream audit and developing and implementing a Waste Management Action Plan. This experience has been instrumental in persuading all other Northern Ireland Government Departments to complete similar plans. The plans include targets for the reduction of paper use, progressive specification of the use of recycled paper, preparation of detailed recycling action plans and specific targets for the proportion of reused or recycled materials in public sector construction contracts. The eleven departmental Waste Management Action Plans were published in a single document at the end of April 2006.

Waste management is also a key element of the overarching Sustainable Development Strategy for Northern Ireland which was published on 9 May 2006 and, together with public procurement, is central to one of the main priorities of the SD Strategy - sustainable consumption and production.

Each Department will be committed through the SD Strategy to producing sustainable development implementation plans that will, amongst other things, reinforce the progress made on action to reduce and recycle waste and bring forward other greening measures. These NI departmental target led plans will be equivalent to those of their Westminster counterparts.

Current Position

The DOE Sustainable Development Action Plan, published in March 2007, incorporates the DOE Waste Management Action Plan. The group with responsibility for coordinating implementation of the Action Plan met for the first time in January 2008, and baseline information is currently being gathered to measure the effectiveness of actions when taken. No details of financial savings are available at present.

PAC Conclusion 5

Enforcing waste legislation and tackling illegal dumping are resource-intensive and require ongoing commitment.

Under-resourcing of its regulatory teams and hasty introduction of new legislation to clear the transposition backlog meant that the Department did not always have proper guidance and enforcement procedures in place, or the staff to implement them. The Department estimates average profits to illegal site operators to be in the region of £1 million, with £24 million in total going to the black economy annually. Despite recent successes against illegal dumpers, work must be balanced with a strong preventative effort. The Department should issue clear guidelines for waste producers affected by legislation, as it is introduced, and undertake regular monitoring to ensure that the guidelines are being followed, in order to reduce the occurrence of illegal dumping in the first place.

Response provided 23 May 2006

The Department agrees with the Committee about the importance of timely guidance and clear enforcement procedures. The new Waste Management Strategy stresses the importance of accessible, user-friendly advice for those affected by new waste legislation and the Department will issue clear guidelines for waste producers as legislation is introduced and assess the impact of this guidance by regular monitoring.

The Department is committed to providing good quality guidance about new and amended legislation for all waste producers at the right time and place: through legislation-specific advice using advisory leaflets, seminars, road shows and producer workshops, and a presence at relevant industry events, for example, giving information to farmers about new Agricultural Waste Controls at the May 2006 Balmoral Show.

In addition, forthcoming pieces of legislation and changes to controls are highlighted on the NetRegs website service which provides clear, sector specific advice online for waste producers on how to comply with relevant regulations.

To complement its comprehensive advice on how to comply with new controls, the Department will also reinforce the reasons for compliance by reviewing its enforcement policy and procedures and provide guidelines for each set of waste regulations. The first tranche will be completed and made available on the web in October 2006.

Current Position

The Department has presented its commitment to delivering clear, risk-based regulation and enforcement in the Northern Ireland Environment Agency’s (NIEA) Better Regulation Programme: “Better Regulation for a Better Environment” (March 2008), covering compliance assistance, streamlined permitting, compliance assessment and effective enforcement. Through the new Better Regulation Board (May 2008) and other sector groups, the Department is working closely with industry to provide advice and raise awareness of environmental obligations and good practice.

In line with the Committee’s recommendations and those of the Criminal Justice Inspectorate (October 2007), NIEA will consult on its revised Enforcement Policy in 2008. The Agency is setting up an NIEA-wide Environment Crime Unit to deal with more serious and persistent offenders.

NIEA has placed considerable emphasis on strengthening the enforcement team, through a new recruitment programme, training (e.g. Police and Criminal Evidence (NI) Order 1989, PACE Investigative Interviewing, Human Rights, the Regulation of Regulatory Powers Act and Court Skills), partnerships with other enforcement agencies, e.g. with the Police Service of Northern Ireland, in order to refer cases for confiscation investigations under the Proceeds of Crime Act 2002 (POCA).

Due to the economic driver behind waste crime, seven Environmental Crime Section investigators are now fully accredited financial investigators. As well as investigating illegal waste offences, Environmental Crime Section investigators will now be conducting money-laundering, confiscation and cash-seizure investigations using powers under POCA.

PAC Conclusion 6

Councils have an important role in implementing key Waste Management Strategy targets.

Responsibility for delivering EU targets for recycling or composting household waste and reducing the amount of biodegradable was sent to landfill rests primarily with Councils. Failure to meet the landfill targets risks incurring fines which will, ultimately, be payable by ratepayers. Councils’ waste plans should align fully with the requirements of the Waste Management Strategy, set out clearly how they will meet its targets and how new infrastructure that is expected to cost in the region of £270 million to £300 million, and other measures, will be funded.

Response provided 23 May 2006

The Department fully agrees with the Committee’s assessment of the important role of District Councils in achieving Waste Strategy targets, particularly those arising from the EU Landfill Directive. Detailed guidance has been prepared and made available to Councils both on the development of Waste Management Plans and how to comply with landfill diversion targets.

The Department prepared comprehensive guidance on the Best Practical Environmental Option (BPEO) for Northern Ireland to provide a framework to assist the sub-regional Waste Management Groups in revising their Waste Management Plans. [p42, Waste Management Strategy for Northern Ireland 2006 - 2020]

This augments the detailed schedule for Waste Management Plans contained in the Waste and Contaminated Land (NI) Order 1997 and the Department will, as during the development and determination of the first Waste Management Plans, also provide additional direct advice to each of the three Waste Management Groups: arc21, SWAMP and NWRWMG which comprise all 26 District Councils.

This direction and support is to help District Council’s fulfil their statutory obligation to ensure that their plans fully align with the Waste Management Strategy and set out clearly how they will meet its targets.

Regarding the funding of the required new infrastructure, the Department established a Waste Infrastructure Task Force in April 2005, consisting of key stakeholders from both central and local government, to examine all aspects of waste infrastructure procurement, including options for funding. The Task Force will make its recommendations in June 2006 and its work will form the basis for integrating waste management into the 2007 Comprehensive Spending Review.

District Councils are scheduled to submit their revised plans in June 2006. The Department will then simultaneously consider the Councils’ plans to ensure they contain the right provisions for the development of an integrated network of waste management facilities sufficient to meet the Waste Management Strategy targets.

Current Position

The Department’s Strategic Business Case was approved by the Minister in 2007 and the proposal to provide financial support to the District Councils was submitted as part of the Priorities and Budgets Process. The Northern Ireland Environment Agency has approved the Waste Management Plans.

The Executive approved the Budget in January 2008 and this included a £200m capital fund for strategic waste infrastructure. This will be available over the four years 2008/9 to 2011/12 and represents approximately 45% of the total capital costs of the new strategic waste infrastructure (£435m approx).

The arc21 Strategic Outline Case (SOC) for waste infrastructure was approved by the Department in January 2008 and the Southern Waste Management Partnership/North West Region Waste Management Group SOC was approved in June 2008. Approval of the SOCs enables the Waste Management Groups to commence their Outline Business Cases (OBCs). The Waste Management Plans will be amended to incorporate these business cases, which will also indicate how the projects should be funded.

The Department will monitor and audit those projects which receive support from the Strategic Waste Infrastructure Fund (SWIF - £200m) in order to ensure that infrastructure is delivered on time and to budget. In the event that a project is delayed or over budget, explanations will be requested from the relevant Waste Management Group and this requirement will be stated in any prospective letter of offer.

Any terms and conditions of offer, including clawback mechanisms, will be discussed and agreed with Departmental Audit officials and the Waste Management Groups before any letter of offer is issued.

The Department aims to fully implement the Achieving Excellence in Construction Initiative throughout the construction of the Strategic Waste Infrastructure and has initiated Gateway Reviews for each of the Strategic Waste Infrastructure Projects, as well as a Gateway Review of the wider Programme.

The Programme Delivery Support Unit, which was set up by the Department in conjunction with the Strategic Investment Board to provide support to the Waste Management Groups, also has a key monitoring role in the procurement process, including scrutiny of applications for funding. Departmental officials engaged in the Strategic Waste Infrastructure Programme will update the Investment Strategy’s Investment Monitoring System on a monthly basis

PAC Conclusion 7

In 2002, the Department exercised poor financial control when it paid £1.3 million to Councils in advance of need.

The Department supplied grants to Councils to assist them with the cost of developing their waste management plans. In 2002, it paid grants that included £1.3 million that was not spent by the end of the financial year, despite Councils’ assurances to the contrary. The Department must prevent any recurrence of such advance payments and put in place robust financial controls to ensure that payments to the bodies it funds are based on actual funding requirements for the period in question.

Response provided 23 May 2006

The Department accepts the importance of the requirement to prevent payments in advance of need and was disappointed by the difference between District Councils’ assured and actual spend profiles. The Council Grant scheme was carefully reviewed and robust financial controls put in place. There has been no recurrence since 2002 and the application of these essential controls now extends to all bodies the Department funds.

Current Position

The Waste Management Grant Scheme closed in March 2008 and the Department has ensured that there has been no recurrence of payments in advance of need.

PAC Conclusion 8

The Department has made slow progress in achieving the Waste Management Strategy targets and implementing the recommendations of its Advisory Board.

In 2004, the Waste Management Advisory Board, composed of stakeholders appointed by the Department, reported only limited progress against the 2000 Strategy, and made a number of recommendations for improvement. Despite resource shortages, the Department allocated skilled staff to producing a formal response, challenging some of the Board’s findings. If expert Boards are appointed to provide guidance, that guidance should generally be accepted and implemented, if the exercise is to have real value and lead to improvements.

Response provided 23 May 2006

The Department agrees with the Committee’s view that if expert Boards are appointed to provide guidance, that guidance should generally be accepted and implemented. The 2000 Waste Management Strategy adopted 98 of the 104 recommendations provided by the precursor body to the Waste Management Advisory Board, the independent Waste Management Advisory Group.

The Department provided a detailed analysis to the Board of the limited progress with the delivery of the 2000 Strategy and responded to their invitation for feedback on their recommendations. As was the case with the independent Advisory Group’s recommendations, the vast majority of the Board’s suggestions have been incorporated within the new Strategy. However, after careful consideration, a small number were challenged and subsequently excluded.

Current Position

The Waste Management Advisory Board’s 3 year appointment ended during 2004, and in April 2005 the Waste Infrastructure Task Force was established to facilitate the delivery of the infrastructure necessary to meet national and European targets. In December 2006 the Taskforce submitted its closing report to the Minister, which contained 4 key recommendations:

1. Introduction of legislative provisions to enable the creation of one or more waste disposal authorities;

2. Department to work with Waste Management Groups to address barriers to co-operation and establish enhanced mechanisms for liaison between central and local government;

3. Prepare a full and detailed business case for central government support for waste infrastructure funding; and

4. Establishment of a Programme Delivery Support Unit and the Strategic Waste Board.

Recommendations 2 to 4 have been accepted and implemented. Recommendation 1 will be the subject of wider consultation for a forthcoming waste amendment Bill.

PAC Conclusion 9

Two of the Board’s key recommendations have still not been implemented.

These were: a cross-Departmental delivery group should be established, at a Permanent Secretary level; and huge infrastructural deficit should be addressed. The results of the Review of Public Administration, announced by the Secretary of State in November 2005, should not be used as a justification for any further delay in introducing long-overdue improvements, for example, in deciding whether or not there should be a single waste management authority for Northern Ireland.

Response provided 23 May 2006

The Department accepts the Committee’s criticism that these two key recommendations have not yet been implemented. The new Waste Management Strategy emphasises the importance of Government taking the lead in driving and monitoring its implementation. To this end, the Department will establish a cross-Departmental delivery group in the form of a new non-statutory committee, the Strategic Waste Board, to oversee the strategy delivery programme, co-ordinate a series of detailed action plans and monitor progress across all strands of the Strategy.

The Board will be chaired by the Minister and will comprise key senior officials from all the relevant Government Departments as well as senior representatives from local government, including representation from the Northern Ireland Local Government Association at both elected member and officer level. In addition, the Board will be supplemented by a number of independent members.

In June 2005, the Department published detailed guidance on the infrastructural requirements for Northern Ireland to deal with its current deficit. This assessment of the Best Practicable Environmental Option is being used by the Waste Infrastructure Task Force (referred to at 6 above) to examine all aspects of waste infrastructure procurement. The Task Force will report on its findings and recommendations in June 2006 and its report will form the basis of an Implementation Action Plan for waste infrastructure.

A consultation paper on proposals for inclusion in the new Waste Strategy (issued on 18 October 2005) sought views on potential structural options for the delivery of waste management functions in Northern Ireland. Responses were generally in favour of the establishment of a single waste disposal authority with responsibility for waste management planning and waste disposal functions at a regional level, with waste collection and recycling operations remaining at local council level.

The Department will move to establish a single regional waste disposal authority, drawing on the work of the Waste Infrastructure Task Force, within the context of, and in parallel with, the implementation of the Review of Public Administration.

Current Position

The Department established a new Ministerially-chaired advisory committee, the Strategic Waste Board (the Board), to oversee the strategy delivery programme and to monitor and measure progress across all six strands of the Strategy. The Board brings central and local government together in partnership and also provides a forum for the discussion of key waste policy issues. The first meeting of the Board took place on 20 February 2007.

The Board is chaired by the Minister of the Environment and comprises senior representatives from all the key statutory organisations, from both central and local government, with a role to play in delivering Strategy commitments, including representation from the Northern Ireland Local Government Association (NILGA) and the Strategic Investment Board.

The Strategy indicated that a number of independent members would be appointed to the Board to bring the views of external experts to bear on the delivery of the Strategy. The independent members were to be appointed as individuals rather than representatives of any stakeholders groups. Three independent members were appointed in February 2008.

The key roles envisaged for the Board are to oversee and monitor implementation of the Strategy; to give strategic direction to the development of waste management policy; provide a forum for the discussion of key waste policy issues; and ensure that other government polices and programmes work to support the Strategy’s aims and objectives.

The Strategic Waste Board has met on five occasions to date and the next meeting will take place on Friday 29 August 2008.

While the Department remains committed to bringing forward new primary waste legislation, consensus has not yet been reached on the development of a single waste disposal authority.

However progress has been made elsewhere in the removal of obstacles to securing waste management improvements. The Department is currently preparing a Local Government Contracts Bill which is designed to clarify the powers of district councils to enter into long-term service contracts with the private sector. It is anticipated that this will assist greatly in the procurement of major new waste infrastructure.

PAC Conclusion 10

The Minister has announced a review of environmental governance in Northern Ireland. The Public Accounts Committee of the Northern Ireland Assembly, the Northern Ireland Affairs Committee at Westminster and Waste Management Advisory Board all saw a case for establishing an independent environmental regulator, of the sort that exists in every other part of the British Isles. Given Northern Ireland’s poor record on environmental governance in general, and waste management in particular, the case for doing so is now self evident and it should be done without delay following the review.

Response provided 23 May 2006

The Department notes the Committee’s recommendation and expects the current Review of Environmental Governance to determine the need for establishing an independent environmental regulator.

The Review of Environmental Governance, which is being carried out by a panel of independent experts, commenced on 28 February 2006 and will take into account the Review of Public Administration, previous inquiries into environmental governance issues in Northern Ireland and the existing and emerging European environmental regulatory framework and the views of the Committee.

The Review Panel will present and publish its Final Report in early 2007, and the Government will take full account of the Committee’s view when considering the Review Panel’s recommendation.

Current Position

The previous Environment Minister Arlene Foster announced on May 27 that her priority was her “Better Regulation for a Better Environment” programme which would ensure proportionate and effective regulation and enforcement. She launched “Better Regulation for a Better Environment” and established the Better Regulation Board of industry leaders on May 29.

To achieve Better Regulation goals, the environmental responsibilities of core DOE and EHS are being clarified. EHS functions are being maintained in a DOE Executive Agency launched on July1 as the Northern Ireland Environment Agency. The Agency will be reorganised for greater effectiveness, two independent Board Members are to be appointed and there will be public Board meetings, the first of which will be in September. Northern Ireland’s first White Paper on the Environment will be published within the lifetime of this Assembly. Policy and legislative development in DOE would be independently reviewed in 2011.

Chairperson’s Letter of 27 June 2008 to Mr Will Haire

NIA Logo (Black)

Public Accounts Committee
Parliament Buildings
Room 371
Stormont
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366

Date: 27 June 2008

Mr Will Haire
Accounting Officer
Department of Education
Rathgael House
Balloo Road
Bangor
BT19 7PR

Dear Will

Memorandum of Response: Improving Literacy and Numeracy in Schools

The Committee has requested that I write to you for an update on the progress against the Department’s responses to the House of Commons Committee of Public Accounts conclusions, including the main conclusions, of the Committee’s report ‘Improving Literacy and Numeracy in Schools’.

I would be grateful if we could have your response by Friday, 25 July 2008.

Yours sincerely

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

Correspondence of 6 August 2008 from Mr Will Haire

Department of Education Logo

Paul Maskey MLA
Chairperson
Public Accounts Committee
Northern Ireland Assembly
Parliament Buildings
Room 371
Stormont
BELFAST
BT4 3XX

6 August 2008

Dear Paul

Memorandum of Response: Improving Literacy and Numeracy In Schools

Thank you for your letter of 27 June 2008 which sought an update on progress against the Department’s response to the House of Commons Committee of Public Accounts Report on Literacy and Numeracy.

In relation to the specific actions agreed by the Department in its response to Committee’s Report into literacy and numeracy, I attach Annex A which sets these out with an update on progress against each.

Background

As background, I should note that the Report raised significant issues in relation to core policies, not just those relating specifically to the funding of the particular initiatives which were the focus of the PAC consideration, and therefore the Department has been developing a wide range of policies which, taken together, seek to focus on educational outcomes for all children and how these can be improved (especially for literacy and numeracy).

First, the revised curriculum, being implemented on a phased basis from September 2007 to June 2010 provides for a broad and balanced education for all pupils and has literacy and numeracy at its core. Its objectives are to develop the young person as an individual, a contributor to society, to the economy and to the environment. It is less prescriptive in specified content than the previous curriculum – but no less demanding in relation to standards of literacy and numeracy – and requires teachers to deliver outcomes in knowledge, understanding and skills across the range of curricular areas. Schools have greater flexibility in delivering the curriculum to ensure it meets the needs of the pupils in their classrooms, and to raise achievement for all, particularly in terms of literacy and numeracy.

Secondly, the Department’s proposals for a revised school improvement policy, “Every School a Good School”, issued for consultation in January 2008. The Department has received a significant number of responses to the consultation, most of which are supportive of the focus in the policy on raising standards and tackling underachievement, and is currently reviewing the draft policy in light of these responses with a view to bringing a final policy to the Education Committee in the autumn. The focus of this policy is the individual child, aiming to ensure that every child leaves compulsory education with appropriate standards of literacy and numeracy, equipped for adulthood and able to make a positive contribution to society. The core of the policy will be self-evaluation (with an external challenge) leading to sustained self-improvement. Our firm belief is that each and every school can improve but there will also be a formal intervention process for those schools which, following ETI inspection, require additional support to effect improvement.

An associated strand of activity relates to the more effective use of data within individual schools and across the system. Data enables the system and the school to identify problems and to track progress in respect of performance. Data on literacy and numeracy will be key indicators for the Department and for schools. Work is underway to develop systems and processes which will allow for:-

The overall approach will be supported by proposals for a revised literacy and numeracy strategy, teacher education and SEN and Inclusion.

The Department’s proposals for a revised literacy and numeracy strategy, “Every School a Good School – A strategy for raising achievement in literacy and numeracy” were issued for consultation in June 2008 and this consultation will conclude on 30 November 2008. The revised proposals recognise the unacceptable gap between the highest and lowest achieving pupils and they aim to bring about a significant improvement in standards of attainment in literacy and numeracy, particularly for lower-attaining pupils in areas of social and economic disadvantage. From September 2008 the five Boards will be working to a Regional Action Plan for Literacy and Numeracy, which will help remove some of the inconsistencies in policy implementation and practice that impacted on the previous strategy. The emphasis in the strategy is on the vital role of the teacher.

Not surprisingly the quality of teaching is of crucial importance and our system is fortunate to begin with a well qualified teaching workforce; it is important however that we do not become complacent. In that context this Department, together with the Department for Employment and Learning (DEL), have been taking forward a review of teacher education the purpose of which is to examine a range of training and continuous professional development issues affecting the profession and to consider measures which will ensure that it is best placed to cope with the changing landscape of the education sector in the coming years. This includes a renewed and powerful focus on the pedagogy relating to literacy and numeracy.

The review of SEN and Inclusion has paid particular regard to continuity and quality of provision; equality of access; consistency in assessment and provision; delivery and funding and accountability mechanisms; value for money; affordability; and monitoring arrangements. The review’s policy proposals will support and be an integral part of the Department’s overall school improvement policy (Every School a Good School). The policy proposals which have emerged aim to bring forward substantial benefits to children including the early identification of possible difficulties followed by the implementation of timely, appropriate and effective interventions. The aim is to ensure that every learner is given a fair and equal opportunity to succeed and that all children are provided with the necessary support to help them achieve their potential. The policy proposals will issue for public consultation in the autumn of this year.

We are also looking at other policies and how they can support the development of literacy and numeracy, for example the role of the school library in educational outcomes. In addition, the Education and Training Inspectorate has taken forward a number of work areas including the development and publication of “Better Mathematics” and Better Literacy in Primary Schools” which were disseminated to key stakeholders in the education sector in May 2008. ETI is also finalising a report into “Literacy and Numeracy in Primary and Post-primary Schools: Characteristics that determine effective practice” and it is intended that this will be launched in tandem with the revised literacy and numeracy strategy.

I trust that this gives you the assurance that the PAC report and findings are being taken very seriously indeed and, more importantly, that concerted action is being taken to address the weaknesses identified in the report. The Minister’s strategy includes the objective that every child should achieve according to their capacity. The Department’s policy focus is very strongly fixed on raising levels of improvement and tackling educational underachievement (particularly in literacy and numeracy) and while the level of improvement required will take time to reach, I am confident that the actions already taken and/or underway provide a very solid foundation for that improvement to take place.

Should you require any further information please do not hesitate to contact me.

Yours sincerely

Signature Will Haire.ai

WILL HAIRE

Department of Education Response to Pac Report into Literacy and Numeracy – Progress Report

PAC 1

The importance of developing competency and confidence in the key skills of literacy and numeracy at an early age is reflected in the worrying statistics which show that the skills deficit among pupils in Northern Ireland schools increases as they progress through primary education and into the secondary sector. The Committee expects the Department of Education to take urgent steps to improve the teaching of literacy and numeracy within schools. This is essential if we are to ensure that deficiencies in literacy and numeracy do not continue to be a major handicap for future generations of young adults after they leave school.

ACTIONS

PROGRESS

A review of the current Strategy for the promotion of Literacy and Numeracy in primary and post-primary schools.

The review of the current strategy has been completed and a revised strategy has been prepared and issued for consultation 23 June 2008. The consultation period will end on 30 November 2008.

Guidance on the teaching of literacy and numeracy will also be included within the implementation of all Key Stages of the revised NI curriculum.

Guidance has now been developed and all teachers in primary and post-primary schools have received relevant curriculum guidance for the Key Stage in which they are working. This includes a range of specific, guidance on literacy and numeracy which provides : a framework for literacy development, guidance on phonological awareness and reading guidance at Foundation Stage; Thematic units and support at Key Stages 1 and 2; Area of learning specific guidance at Key Stage 3. Further resources, for example about the relevance of mathematics for pupils, have also been provided.

A Partnership Management Board, created to ensure coherence of effort from the bodies supporting schools in implementing the revised curriculum, has drawn up a full programme of in-service training for teachers in order to support the introduction of the revised curriculum. This training will emphasise the importance of literacy and numeracy and the approach will be further reinforced following the completion of the review of the Strategy.

The Partnership Management Board has continued to work to ensure that the training materials developed emphasise the central importance of literacy and numeracy. Training has been provided for teachers, including in how best to put the guidance into practice in the classroom. This training emphasises the importance of literacy and numeracy. In line with the phased implementation of the revised curriculum, training has to date been provided for teachers in Years 1, 2, 5, 6, 8, 9, 11 and 12. Training is scheduled for teachers in Years 3, 4, 7, and 10 for the 2008/09 school year.

The approach will be further reinforced once the finalised literacy and numeracy strategy is put in place.

Write to all schools in February 2007 summarising the main issues arising from the Northern Ireland Audit Office report and the subsequent report by the Committee, stressing the central importance of literacy and numeracy across the curriculum and emphasising the need for all schools to reflect this within their school policies and priorities, especially within the context of school development planning and target setting.

Circular issued to all schools on 31 March 2007.

Set up a Literacy and Numeracy Task Force by April 2007, with an independent chair and senior Departmental representative to promote literacy and numeracy in the school curriculum, to ensure appropriate implementation of DE’s response to the Committee’s report and to ensure that there is appropriate co-ordination of all the necessary actions

Taskforce established February 2008 and is meeting at regular intervals.

Publish a revised policy for school improvement in spring 2007, central to which will be the importance of and standards achieved in literacy and numeracy in primary and post-primary schools

Proposals for a revised policy issued for consultation on 21 January 2008. Consultation closed on 31 March with approximately 200 responses received.
[1]

PAC 2

In our view, schools which are well managed and have proactive leadership are much better placed than others to enable all children, even those most at risk of failing, to succeed. Unless the teaching of literacy and numeracy is well-led, schools will not provide the best educational experience nor the highest standards for their pupils. In order to raise standards we look to the Department to ensure that support is focused on schools where the leadership and management of literacy and numeracy efforts is weak.

ACTION

PROGRESS

The development of school leadership will continue to be an important element of DE’s strategy. Northern Ireland is participating in an Organisation of Economic Co-operation and Development study of school leadership and will draw on it and on work undertaken by the Department for Education and Skills (DfES)1 in order to revise current training and development programmes and qualifications in headship, leadership and management.

The final OECD comparative report (including policy recommendations) is expected very shortly. On receipt of this report the Department will initiate a review of the current training and development programmes and qualifications in headship, leadership and management with a view to addressing any gaps or weaknesses identified in the report, including the focus on literacy and numeracy.

The revised school improvement policy will introduce new statutory arrangements and interventions for those schools where performance is below the standard expected. These will focus on the involvement of support bodies and/or partner schools in improving pedagogy, on improving whole school approaches to the raising of standards, and on raising the quality of school leadership.

The revised school improvement policy that issued for consultation included details of the new statutory and non-statutory arrangements that would apply. Work is underway, informed by the consultation responses, to finalise that policy. The statutory arrangements will, it is hoped, be given effect through the Education Bill that will also, if approved by the Assembly, facilitate the creation of the new Education and Skills Authority

During the 2007-08 academic year, the Education and Training Inspectorate (ETI) will survey leadership and management in schools to include, inter alia, an assessment of the extent to which those involved in school leadership give an appropriate emphasis to literacy and numeracy. Where, in the Inspectorate’s view, this has not taken place, the issue will be raised with the school leadership including the governors.

The Inspectorate findings will form part of the Inspectorate’s annual report to the Department of Education (October 2008) and be included in the (biennial) Chief Inspector’s report (2006-2008), due for publication in January 2009.

PAC 3

Under-achievement among boys constitutes a cultural challenge. We expect the Department to help meet that challenge by seeking to draw together research on best practice so that it can develop both preventative and remedial programmes to help boys who are struggling with literacy and numeracy from falling further behind each year. The Committee urges the Department to give particular attention to the very worrying position of boys in the Belfast Board area.

ACTION

PROGRESS

DE has initiated a comprehensive review of current research on the issues related to boys’ under-achievement in literacy and numeracy. When the outcomes of the research are available in June 2007, DE will consult closely with schools, partner bodies (especially the ELBs and Council for Curriculum Examination & Assessment (CCEA)), initial teacher education providers, and the Inspectorate, in order to identify the appropriate preventative and remedial strategies and to set priorities for the future.

Final report received and published on DE website on 28 February 2008. Conclusions and evidence have been considered and reflected in the Department’s proposals for a revised literacy and numeracy strategy.

A specific target for raising the performance of boys will be included in the revised literacy and numeracy strategy.

The proposals for a revised strategy do not include a target specifically for boys. Research indicates that there is no case for boy-friendly pedagogies. Teaching methods which appeal to and engage boys are equally applicable to girls and it is also important to recognise that girls too face challenges.

DE is working closely with the Belfast Education and Library Board (BELB) and others in the city to devise a long-term plan to raise standards in literacy and numeracy in the primary and post-primary schools serving areas of disadvantage across the city. The plan, to be implemented from September 2007, will draw upon the various aspects of research set out in this response and the revised Strategy.

Discussions with other Departments and BELB have been ongoing. A programme called Achieving Belfast was launched by BELB in February 2008 and the Board has developed, and is refining, an action plan setting out how it will tackle underachievement and raise standards in 19 of its lowest performing schools. At the Minister’s request a similar programme is being developed for the Derry area which will be launched in September. A project board has been established to oversee progress across both programmes .

PAC 4

It is clear from the evidence presented to the Committee that, among socially deprived communities in Belfast, significant differences between Protestant and Roman Catholic children exist in GCSE English and Mathematics. This raises a concern that children in Protestant working-class areas may not be enjoying equal educational opportunities. There is a noticeable difference between Belfast and Glasgow. The data provided by the Department shows that, whereas there is a reasonable degree of consistency between the performance of Catholic and nondenominational schools in Glasgow in English and Mathematics at GCSE/Scottish National Qualification level, this is certainly not the case in Belfast. Here, schools with 40% or more pupils entitled to free school meals do disturbingly less well than their Catholic counterparts, as well as much less well than their counterparts in Glasgow. Differences in performance by pupils from different religious backgrounds is a sensitive topic but we suggest that if real improvements are to be made the issues involved must be addressed. This requires thorough research and rigorous analysis so that evidenced-based actions can be put in place to overcome the difficulties. In its response to our Report, we would like the Department to explain in detail how it is tackling this issue which must be one of the major challenges Northern Ireland faces.

ACTION

PROGRESS

Monitor the Extended Schools Initiative to inform future strategies and policies.

Initial evaluation evidence from the ETI highlights the positive role that extended schools can play in tackling some of the barriers to learning. ETI will embark on further evaluations based on the work of the District Inspectors in June and September 2008. Evaluations will reflect back to the baseline report (2006) and seek to discern examples of good/exceptional practice and focus on the five high level outcomes seen as having the potential to contribute to the ten year strategy for children and young people.

Research into the religious differentials and into approaches elsewhere in the United Kingdom to ensure that subsequent actions are evidence-informed.

Research on this area has been completed and a final report received and published on the DE website on 28 February 2008.

Work with the BELB and others to devise a long-term plan to raise standards in literacy and numeracy in the primary and post-primary schools serving areas of disadvantage across Belfast.

. Discussions with other Departments and BELB have been ongoing. A programme called Achieving Belfast was launched by BELB in February 2008 and the Board has developed, and is refining, an action plan setting out how it will tackle underachievement and raise standards in 20 of its lowest performing schools. At the Minister’s request a similar programme is being developed for the Derry area which will be launched in September. A project board has been established to oversee progress across both programmes .

PAC 5

The Department has a pressing responsibility to take the lead in identifying and championing best practice in literacy and numeracy teaching in schools. It needs to provide a clear direction and impetus to the promotion of literacy and numeracy performance. The Committee will be interested to learn what steps the Department takes to address the issue.

ACTION

PROGRESS

Establish a literacy and numeracy Taskforce.

Taskforce established February 2008 and is meeting at regular intervals.

In establishing ESA, the Department will clarify respective roles of DE, ESA and schools in improving quality and raising standards by June 2007.

Defining roles, responsibilities and accountability are included in the Department’s proposals for a revised school improvement policy and, as appropriate, in the draft Education Bill.

DE will hold the ESA to account for progress on standards of literacy and numeracy and ensure that the ESA sets appropriate targets and includes discussion of them as a standing item in the regular monitoring and accountability meetings.

Ministerial announcement on 31 July 2007 deferring establishment of ESA until April 2009. In the interim, the regular accountability reviews that the Permanent Secretary holds with the chairs of the Education and Library Boards include a focus on standards and on efforts being made by ELBs and their partners to tackle underachievement

ESA will hold schools to account via an annual meeting with each school to consider their target setting and performance.

This arrangement is detailed in the proposals for a revised school improvement policy. In developing the policy it was agreed that “annual” should be amended to “regular” meetings. Ministerial announcement on 31 July 2007 deferring establishment of ESA until April 2009.

DE will require schools to carry out computer-adaptive assessments in literacy and in numeracy for all pupils in Years 4-7 during the Autumn term of each academic year, beginning in September of the 2007-08 academic year. The computer adaptive assessments will help teachers to devise strategies to address individual difficulties and to set appropriate targets for improvement.

This is being introduced on a phased basis and started with Year 5 in September 2007, with training being provided in advance for Year 5 teachers. Training for Year 6 teachers commenced May 2008 for the 2008-09 school year when Years 5 and 6 will undergo the assessment. Years 4 and 7 will undergo assessment from 2009-10 and training will be provided beforehand for the teachers concerned.

PAC 6

We are extremely disappointed that literacy and numeracy targets have been frequently adjusted since the introduction of the Strategy. We recognise that it is sometimes necessary to adjust targets. However, the Department’s record on literacy and numeracy suggests to us that it has lacked commitment to and confidence in its target setting. If targets are to serve as useful and meaningful tools of accountability and retain credibility, they have to become a consistent element in the process of setting literacy and numeracy objectives for schools and for assessing and reporting on attainment levels. We expect the Department’s current review of the Strategy to establish an approach to target setting which will communicate a clear message around which schools can mobilize resources in tackling under-achievement in literacy and numeracy. We also expect the Department to maintain a consistent approach to targets rather than adjust them when results are falling short.

ACTION

PROGRESS

Data will be provided annually to all schools for the purposes of benchmarking and target setting.

Data is already available to all schools via the C2k system but we are aware that more schools need to be supported and encouraged to make use of this information for benchmarking and target-setting. A project has been initiated to identify key performance indicators and promote the effective use of data in schools. The tender process has been completed and a consultant appointed. The project is schedule to complete on 30 November 2008.

The new school improvement policy will include a requirement for representatives of the ESA to meet annually with schools.

In developing the policy it was agreed that “annual” should be amended to “regular” meetings. Ministerial announcement on 31 July 2007 deferring establishment of ESA until April 2009.

DE is committed fully to establishing, at the earliest opportunity, appropriate targets on a consistent basis. This will be facilitated by the revised assessment arrangements which will be introduced progressively from September 2007.

Targets and milestones for literacy and numeracy are set out in the Department’s proposals for a revised literacy and numeracy strategy and reflected also in the Department’s Public Service Agreements.

PAC 7

Central to the accountability for literacy and numeracy improvement programmes is the establishment of processes to ensure that data collected on attainment levels is analysed and used for planning and continuous improvement. We recommend that the Department ensures that this data is used to identify any aspects of the design and delivery of literacy and numeracy programmes that can be enhanced and to inform effective targeting of improvement programmes to groups of pupils whose performance is not satisfactory.

ACTION

PROGRESS

DE will ensure that data is used at all levels to inform target-setting and the delivery of programmes - this will be emphasised in both the revised school improvement policy and the revised literacy and numeracy strategy.

A project has been initiated to identify key performance indicators and promote the effective use of data in schools. The tender process has been completed and a consultant appointed. The project is schedule to complete on 30 November 2008.

Benchmarked data will be available to the schools to enable them to adjust their programmes to classes, groups and individuals and to improve performance.

Last circular issued in June 2007. It is intended that the 2008 circular will issue in August 2008.

The data, at school level, will enable the new ESA to challenge schools about performance against targets and to discuss how best to amend their strategies.

The challenge role for ESA is included in the Department’s proposals for a revised school improvement policy. Establishment of ESA deferred until April 2009.

Particular attention will be given to data relating to boys’ wider-performance, the levels achieved in areas of disadvantage and the differentials between high and low performing schools.

A project has been initiated to identify key performance indicators and promote the effective use of data in schools. The tender process has been completed and a consultant appointed. The project is schedule to complete on 30 November 2008.

PAC 8

The lack of benchmarking by the Department against comparable cities in the United Kingdom has been a missed opportunity to identify good practice in literacy and numeracy teaching, to learn from others and improve performance. Benchmarking provides a means of testing achievements and processes in literacy and numeracy against those of other organizations. The Department should make greater use of its liaison arrangements with its equivalent organizations in England, Wales and Scotland to examine whether the approaches adopted in similar cities are proving to be more effective in delivering better literacy and numeracy outcomes. In particular, the results from Glasgow and Liverpool need to be followed up promptly to see what lessons can be learned.

ACTION

PROGRESS

DE is committed to undertake significant benchmarking exercises both in the near future and on an ongoing basis.

Research into good practice in literacy and numeracy in British and Irish cities where the level of social deprivation is comparable to, or worse than, that of Belfast has been completed. Report published on DE website on 28 February 2008.

A research project has been initiated to inform DE about what is working successfully in delivering better literacy and numeracy outcomes in comparator cities elsewhere in the United Kingdom; this project is due to be completed in June 2007.

Final report received and published on the DE website on 28 February 2008. Findings have been considered and reflected as appropriate in the proposals for a revised literacy and numeracy strategy which issued for consultation on 23 June 2008.

Meet with local authorities in Glasgow and Liverpool to discuss the various strategies in operation in those cities.

Meetings have taken place and findings considered and reflected as appropriate in the proposals for a revised literacy and numeracy strategy which issued for consultation on 23 June 2008.

PAC 9

Teacher quality is an important catalyst for improvement in literacy and numeracy attainment levels. We consider it important, therefore, that the Department’s review of the Strategy satisfies itself that the training provided to teachers ensures that they develop a thorough understanding of the relevant literacy and numeracy initiatives and are committed to them as a way of achieving improvement.

ACTION

PROGRESS

When the revised Strategy is available, in the Summer term of 2007, it will be disseminated to principals and teachers at a series of briefing conferences and seminars for implementation from September 2007.

Proposals for a revised literacy and numeracy strategy issued for consultation 23 June 2008. The consultation period will end on 30 November 2008. Once a final strategy is in place the Department intends to hold a conference to ensure effective dissemination to principals and teachers.

The Education and Training Inspectorate (ETI) will report annually to DE, and will continue to pay particular attention to implementation issues and to standards in respect of the revised Strategy.

This has been built into the ETI business plan for 2008-09. In view of timescales for completion of a final strategy this will likely be deferred until 2009-10.

[1] The Department of Children, Schools and Families

Chairperson’s Letter of 13 October 2008 to Mr Will Haire

NIA Logo (Black).ai

Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Jim.Beatty@niassembly.gov.uk

Date: 13 October 2008

Mr Will Haire
Accounting Officer
Department of Education
Rathgael House
Balloo Road
Bangor
BT19 7PR

Dear Will

Re: Update on Memorandum of Reply relating to House of Commons Committee on Public Accounts Report on Improving Literacy and Numeracy in Schools

The Committee considered the update on progress on the undertakings given by the Department in the Memorandum of Response at its meeting on 9 October.

The Committee acknowledges the detail of the response, but there are some issues on which members would like further clarification. Members have asked Mr John Dowdall CB, Comptroller and Auditor General, to raise a number of matters on their behalf, and report back to the Committee.

In the circumstances, Mr Dowdall will contact you in the near future.

Yours faithfully

Signature Paul Maskey

Paul Maskey
Chairperson
Public Accounts Committee

cc Mr John Dowdall CB, C&AG

Clerk’s Letter of 13 October 2008 to Mr John Dowdall CB

NIA Logo (Black).ai

Public Accounts Committee
Room 371
Parliament Buildings
BELFAST
BT4 3XX
Tel: (028) 9052 1208
Fax: (028) 9052 0366
Email: Jim.Beatty@niassembly.gov.uk

Date: 13 October 2008

Mr John Dowdall CB
Comptroller and Auditor General
Northern Ireland Audit Office
106 University Street
Belfast
BT7 1EU

Dear John

I enclose for your information the letter which the Chairperson of the Public Accounts Committee sent to Mr Will Haire, Accounting Officer, Department of Education.

I would appreciate it if you would contact Mr Haire to discuss the issues which the Members raised in relation to the Memorandum of Reply, Improving Literacy and Numeracy in Schools.

I look forward to forwarding your findings to the Committee.

Yours faithfully

signature Jim Beatty.ai

Jim Beatty
Clerk
Public Accounts Committee

Graphs on Literacy and Numeracy provided by Mr John Dowdall CB, C&AG

Diagram 1

This graph shows how performance has changed over recent years.

It plots the % of pupils each year across all schools who are performing at or above the expected levels of English and maths at Key Stage 2 (year 7 in Primary school) and Key Stage 3 (year 10 in Post-primary schools)

App2g5 C&AG graphs on Literacy and Numeracy.ai

Relative performance of primary schools in Key Stage 2 English

Diagram 2

At Key Stage 2, on average 78% of pupils achieve at or above the expected level in English and 79% in Maths – a Level 4. There are, however, considerable variations between schools. There is also a correlation between educational outcomes at this level and social disadvantage. What this table attempts to illustrate is, taking the example of English, the spread of that performance – put simply, the number of schools and the number of pupils who are achieving at or above the average set against the relative levels of disadvantage within schools as measured by entitlement to free school meals.

App2g5 C&AG graphs on Literacy and Numeracy_2.ai