Agenda item

A report to update the Committee on the implications of the Localism Act 2011 and the regulations published on 8^th June 2012 setting out the new Code of Conduct and advice on pecuniary interests.

Fiona Ledden (Director of Legal and Procurement) introduced the report and explained that a draft new Code of Conduct had been in circulation for some time and had been discussed at the Constitutional Working Group (CWG).  Clear guidance was still awaited as to how complaints would work under the new code which was due to come into effect from 1 July 2012.  The main changes to the new code were in respect of interests and in particular pecuniary interests and how these would also apply to councillors’ spouses.  Furthermore, if a pecuniary interest had not been properly registered or disclosed, it would be a criminal offence to do so.

In respect of the future role of the Standards Committee, Fiona Ledden advised that it was not intended to refer every single matter to the committee and following consideration with regard to the composition of the committee, it was felt that this should be politically balanced.  The regulations had also changed in respect of independent members and existing independent members could only continue to serve on the Standards Committee if they resigned from their post before 1 July and then subsequently re-apply.  A rolling programme for recruitment of independent members would be required in future years.  Fiona Ledden advised that in respect of recommendation 2.5 in the report concerning dispensations, it was highly unlikely that such action would be needed in practice.  The committee noted that all councillors would be written to providing clear guidance on the new code.

During discussion, Councillor Colwill expressed his disapproval in the changes to legislation that would diminish the Standards Committee’s powers to take action against councillors who had violated the code.  He felt that the Standards Committee had functioned well and that there had been worthy debates on a number of issues.  Councillor Beck sought further information on the views of the CWG in respect of political balance on the Standards Committee and clarification that the size of the committee could be decided by the individual local authority.  He also commented that the current composition of one member from each political group prevented the committee from being controlled by a particular political group and expressed concern that introducing political balance would allow the opportunity for the largest political group to monopolise decisions. 

In noting the proposed changes to the composition of the Standards Committee, Sola Afuape enquired what measures were being taken to safeguard the council’s reputation with regard to upholding the code’s standards.

The Chair stated that information on the code should be disseminated to the public to manage expectations in terms of upholding standards.  She commented on the need to address the issues that had been raised and to make arrangements for an independent adviser for the committee.  The Chair advised that the committee was being asked to provide broad agreement of the structure prior to the Full Council meeting on 9 July.

In reply to the issues raised, Fiona Ledden acknowledged that the Standards Committee’s powers had been reduced as a result of the Localism Act 2011.  In effect, the action available to the committee in respect of councillors breaking the code would be limited to persuading councillors to change their behaviour or place them on relevant training sessions.  She advised that differences of opinion had been expressed during discussions at CWG in respect of the changing the composition of the Standards Committee to reflect political balance.  However, as independent members on the committee were to lose their voting rights under the Localism Act 2011, this could open the committee to politicisation, so introducing political balance would help prevent this from occurring.  Fiona Ledden advised that a membership of five councillors was being considered, with three comprising Labour Group members and one each from the Conservative and Liberal Democrat Groups.  However, the numbers decided on the committee could be discussed further at CWG.  Fiona Ledden added that most other London boroughs were also drawing up plans to introduce political balance to their respective standards committees. 

Fiona Ledden advised that as there would be less matters being referred to the Standards Committee, it would be an opportunity for the committee to become more involved in other ways on standards and code of conduct issues, such as establishing working groups on particular matters of interest.  She acknowledged the need for more publicity regarding the code, including setting out a clear process for complaints and emphasising the need to enter into dialogue before a matter was raised with the Standards Committee and this could be of some benefit as it gave more opportunity for councillors to ensure that they were conducting themselves appropriately.

The Chair confirmed that as she was expecting a child, she would not be putting herself forward to be an independent member of the committee.

RESOLVED:-

(i)            that the implications of the Localism Act 2011 and in particular that it places an obligation on the council to promote and maintaining high ethical standards by its members and co-opted members be noted;

(ii)          that Full Council be recommended to appoint two “independent persons”, and authorise the Director of Legal and Procurement to carry out the recruitment process for those independent persons;

(iii)         that Full Council be recommended to adopt the draft Code of Conduct for Members set out in Appendix 1 to this report, including any changes agreed by this committee;

(iv)         that Full Council be recommend to give authority  to the Director of Legal and Procurement to take decisions in relation to dispensations, as set out in the draft Code of Conduct;

(v)          that the Director of Legal and Procurement, following consultation with the Constitution Working Group, be authorised to draw up and agree detailed procedures to support the Code of Conduct and the new standards regime, including detailed powers and duties, and terms of reference for the proposed new Standards Committee;

(vi)         that the advice note from the Monitoring Officer to be sent to all members in relation to the definition of Pecuniary Interests attached as Appendix 2 be noted; and

(vii)        that it be noted that if the recommendation to create a new Standards Committee is accepted by Full Council, Standards Committee will review and refine the detailed procedures and operation of the new regime at its meeting during the 2012/13 municipal year.