Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 14 September 2001 at Romney House, Westminster, London SW1.

Present:

• Graham Tope (Chair)
• and Nicholas Long (Deputy Chair)
• Elizabeth Howlett
• Cecile Lothian
• Eric Ollerenshaw
• Sir John Quinton
• Richard Sumray
• Rachel Whittaker

MPA staff:

• Peter Martin (Treasurer)
• Derrick Norton (Best Value officer)
• Simon Vile (Head of Secretariat)
• John Crompton (Committee Services)

MPS staff:

• Tarique Ghaffur (Assistant Commissioner)
• Keith Luck (Director of Resources)
• Trevor Lawrence (Director of Property Services)
• Commander Graham James
• Commander David Smith
• Bob Alexander (Head of Finance)

Also present: 20 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

196. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Reshard Auladin, John Biggs and Catherine Crawford.

197. Minutes - 19 July 2001

(Agenda item 2)

Resolved: 
That the minutes of the meeting held on 19 July 2001 be agreed and signed as a correct record.

198. Chair and member's update (verbal report)

(Agenda item 3)

1. The Chair reported that a further meeting had been held with the Commissioner to discuss financial matters. Much was being done to make the MPS a more "financially conscious" organisation.

2. The Chair said that the Resource Allocation Formula Project Board which he chairs had met. Consultation is continuing with Borough Commanders and others.

3. The Chair also reported that he and the Deputy Chairs were continuing to scrutinise the MPS budget submission for 2002/03.

199. Update on planning and best value

(Agenda item 4)

A report was submitted which updated the Committee on issues relating to the corporate strategy, the policing and performance plan for 2002/03 and best value reviews.

Resolved: 
That the report be noted.

200. Police reform programme

(Agenda item 5)

A report was submitted which provided an overview of the police reform programme upon which it is anticipated the government will publish a white paper in November.

Rachel Whittaker reported that a workshop had been held following the consideration of the report by the Human Resources Committee. A small panel of Members had been leading on this issue from a HR perspective, but given the wide reaching implications of the reform programme it would be appropriate to widen the remit and the membership.

The Chair said that the Authority would need to give detailed consideration to the white paper proposals within a tight timetable.

Resolved: 
That the report be noted.

201. Thirty years plus: retaining officers

(Agenda item 6)

A report was considered which sets out options for retaining police officers with over thirty years of service as means of reducing police wastage. The report stated that there would be major financial implications.

The Committee noted that the report had been considered by the Human Resources Committee where it had been agreed:

• that the piloting by the MPS of a retention scheme should not be supported at the moment
• to note the further work that is in hand
• further refinement be made as to whom should be offered retention.

Resolved: That

1. the decisions of the Human Resources Committee be noted.
2. the financial implications be noted.
3. when further consideration has been given to the proposed terms of a scheme a report be submitted to the Human Resources Committee and then to the Finance, Planning and Best Value Committees setting out details of the financial implications.

202. Devolution of police functions

(Agenda item 7)

A report was submitted which set out the the financial and operational effects of the MPS devolving to an appropriate body (1) the traffic warden service, (2) the enforcement of traffic regulations and (3) a single organisation for providing waterborne services in London currently provided by the London Fire and Emergency Planning Authority (LFEPA) and the MPS.

Assistant Commissioner Ghaffur stressed that the situation was fluid in the light of discussions with officers in other agencies. He said that in these discussions it had been made clear that if the MPS was expected to carry out new functions then new monies would have to be made available.

Eric Ollerenshaw said it would have been useful if this matter could have been progressed further so that the financial considerations could be considered with the budget submission.

In reply Assistant Commissioner Ghaffur said that further discussions would be held and more information on the financial aspect would be known before the final budget was submitted.

In summing up the Chair emphasised that there were justifiable expectations within the GLA that the creation of the new body would lead to the rationalisation of certain functions of which waterborne services were a good example. The point about new services requiring appropriate financial provision was well made and he would recommend that this be made a formal decision of the Committee.

Resolved:  That

1. the legislative and operational barriers to devolving the specific responsibilities be noted;
2. a report on the future of the Traffic Warden Service will be submitted when all options have been assessed and the full financial implications are known.
3. it be agreed that the MPA will not agree to provide any new or enhanced services without appropriate financial provision.

203. Revenue budget monitoring  2001/02

(Agenda item 8)

During consideration of this item the Committee and all others present marked the three minute silence being observed throughout Europe in respect of the terrorist attacks events which had taken place in the United States on 11 September.

A report was submitted which provided a summary of the expenditure against budget as at 31 July 2001 together with a commentary on the main budgetary issues and items impacting on the year end outturn.

Members indicated that they welcomed the new format of this report.

The Director of Resources set out some further financial pressures:

• continued high level of firearms offences
• high level of security alerts
• the work being done on the draft budget for 2002/03
• public order events especially those which are not known about in advance.
• the recent events in the United States and the decision had been made to put extra police on the street to reassure the public.

With regard to the final point, Members agreed that in view of the status of London as a major capital city it would not be appropriate for Londoners to be expected to pay for the cost of extra policing in the aftermath of recent events in the United States. Representations on this point should be made in conjunction with the Mayor.

With regard to the proposal to offset £3.1 million of general inflation and £2.5 million of newly approved grant income relating to DNA support against the efficiency savings target, Members felt that it would be more accurate to describe these sums as general savings rather than as efficiency savings.

With regard to the overtime budget, the Committee considered that Accenture should be asked to look at this as a matter of urgency and the Treasurer reported that the project board had just agreed an accelerated timetable for this review.

Resolved: That

1. the financial position as set out in the appendices 1 and 2 and the explanations set out in paragraphs 7 and 8 be noted.
2. the actions that have taken place since the July Committee with regard to improving financial management and control within the MPS set out in paragraphs 12 to15 be noted.
3. the update on the budget priorities as set out in paragraphs 16 to 19. be noted
4. the proposal to offset £3.1 million of general inflation and £2.5 million of newly approved grant income relating to DNA support be agreed but this should not be described as efficiency savings.
5. the budget virements in respect of the above proposal and that in respect of the part year investment in the Finance function of £900,000 be approved.
6. the Chair and/or Chair of the Authority formally engage with the Home Office regarding the shortfall in funding due to the decision not to fund the ERNIC element of the London Pay Lead.
7. in conjunction with the Mayor, Member-level representations be made to the Home Office on the funding of anti-terrorist measures.

204. Budget setting

(Agenda item 9)

A report was submitted which set out the process by which the budget for 2002/03 is being constructed. It included reference to emerging budget pressures and changes in national funding arrangements.

The Chair reported on a meeting of the GLA Budget Committee he had attended on 13 September. The Mayor had stated that provision would be made in the MPA precept for a 2% allowance for inflation and for a further 1,000 police officers. Any further growth would have to be met from savings or efficiency savings unless the circumstances are really exceptional.

The Chair stressed the importance of the budget submission containing adequate funding for all the incidental expenses in employing extra officers such as vehicles and lockers etc. He also requested that the report to be considered at the next meeting contained alternative budget options for Members consideration.

Resolved: That

1. the work programme being undertaken in drawing up the budget proposals for 2002/03 be noted.
2. the cumulative adverse effects of the changes to the grant position be drawn to the attention of the Home Office.

205. Efficiency and effectiveness review programme

(Agenda item 10)

A report was submitted which set out the results of the competitive run for tranche 1 of the efficiency and effectiveness review programme and outlined the progress to date.

Resolved: That

1. the report be noted;
2. delegated authority be given to the Project Board to let the tranche 1 property review contract outside the MPS Framework Arrangement, and
3. Nicholas Long be appointed to the Project Board.

206. PFI review

(Agenda item 11)

A report was submitted which proposed a way of carrying out a review of PFI before proceeding with any further PFI procurements.

Members signalled that they would wish to receive certain assurances from 4Ps, the body proposed to carry out the work, before the review was formally commissioned. It was agreed that the report be deferred to enable the Treasurer to pursue various points with 4Ps and to report back to the Committee.

Resolved:
That it be agreed in principle that the PFI review should proceed on the basis of i) the proposal from 4PS at a total cost not exceeding £40,000 and ii) subject to a further report being submitted to the Committee when the Treasurer has held further discussions with 4Ps to:

1. ensure that there is recognition by 4Ps that there is concern about the appropriateness of PFI as a way of proceeding and the need for neutrality in carrying out the review;
2. assess the quality and relevant experience of the person (s) carrying out the first stage of the review;
3. negotiate the costs downwards, and
4. seek an assurance that there will be no conflict of interest amongst the people carrying out the reviews.

207. Pay arrangements for MPA staff

(Agenda item 12)

A report was submitted for information on the pay arrangements for MPS staff which had been considered by the Human Resources Committee on 6 September.

Rachel Whittaker, the Chair of the Human Resources Committee confirmed that as a result of amendments made to the report by the HR Committee there would be no budgetary implications for 2001/02. The matter was thus being reported to the Finance, Planning and Best Value Committee for information only.

The Director of Resources stated that the MPS Management Board had considered the report and had asked him to relay to the Committee its concern at the proposals. Although all civil staff were technically employed by the MPA the Authority staff were placed on the upper quartile of public sector pay whilst the rest of the civilian staff salary structure was based on the lower quartile and was only just aspiring to the median.

Rachel Whittaker stated that the principle of the MPA pay arrangements had been decided some months ago. The report had been written to bring these earlier decisions into effect and introduced no new concepts. The Chair commented that the points raised were a matter for the Human Resources Committee

Resolved:
That the report be noted.

208. Efficiency plan

(Agenda item 13)

A report was submitted which advised the Committee that HM Inspectorate of Constabulary had concluded that the efficiency target set for 2000-2001 had been achieved.

Resolved:
That the report be noted.

209. Accommodation for Lambeth Borough Operational Command Unit

(Agenda item 14)

A report was considered which sets out the requirements for additional accommodation for Lambeth Borough Operational Command Unit (BOCU). It proposed the acquisition of a leasehold office building to supplement the overcrowded borough properties with the extension and amelioration of Brixton Police Station. The report also recommended that the site acquired for a divisional Police Station at Clapham is declared surplus and sold to assist in the funding of this proposal

Commander Brian Paddick, the Borough Commander for Lambeth attended for consideration of this item and reiterated the need for the improvements to the police accommodation in the borough.

The Director of Property Services reported that since the Committee last considered the matter improvements to the estate in Lambeth had acquired a higher priority within the MPS and had been identified by Territorial Policing as the top priority.

In reply to questions from members on the lack of detailed supporting information, the Director of Property Services stated that the investment appraisal had been sent to the MPA for placing in the Members Room.

Members stated that they should be advised when important documents were placed in the Members Room. The Head of Secretariat undertook to look into this point.

Members felt that the report did not convey the reasons why the acquisition of Otis House was now being recommended so strongly when the Director of Resources had reported at the meeting on 19 June that for financial reasons the proposal could not be pursued.

The Committee indicated that they would not be prepared to make a decision on the matter until the following information was made available:

• Investment appraisal
• business case
• the justification for it being the top priority for territorial policing.
• revenue implications
• consequential effects on other schemes in the capital programme.

Resolved: 
That while the Committee supported the proposals in principle a final decision be deferred to the next meeting in order that the further information listed above can be supplied.

210. Changing habits

(Agenda item 15)

Two MPA Members Nicholas Long and Jennette Arnold have investigated the conditions in locker rooms, showers, WCs and other spaces within police stations. A report on their findings, which had also been submitted to the Human Resources Committee on 6 September, was considered together with an initial response from the MPS.

In reply to a question from a Member Assistant Commissioner Ghaffur stated that police officers could access the report through the MPS intranet site.

Resolved: 
That the financial implications of the proposals be noted and considered in due course in the context of the 2002/03 budget discussions.

211. Livescan procurement

(Agenda item 16)

This paper seeks approval from the Authority to place a contract to lease equipment and procure LiveScan services from TRW, suppliers of National Automated Fingerprint Identification System (NAFIS). This provides direct support to front line policing with the additional benefit of an improvement in the overall quality of the National Fingerprint Information System records at Hendon

The Director of Resources stated that there was financial provision for the present financial year and for subsequent years it would depend on future budget decisions.

Resolved: That

1. the Authority enters into a five-year contract with TRW, suppliers of NAFIS (National Automated Fingerprint Identification System) for the lease of equipment and LiveScan services to equip 50 additional locations across the MPS; and
2. the Authority notes that work is ongoing to determine the number of custody suites required in the MPS. Once this work is complete there may be a requirement for additional LiveScan terminals (up to a total of 60).

212. Resolve business case

(Agenda item 17)

The Committee was informed that a recent re-assessment of business continuity arrangements has highlighted the need to upgrade present facilities and plans (known as Operation Resolve) to ensure that essential emergency services and control of major operations can continue to be provided for London following a disaster affecting the MPS estate. The proposed new arrangements are known as Operation Resolve 2.

Resolved: 
That the report be noted.

213. Exclusion of press and public

(Agenda item 18)

Resolved: 
That under section 100 A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involved disclosure of exempt information as detailed in paragraphs 8 and 9 of Schedule 12A of the above Act.

Summary of decisions made on exempt items

Agenda Item 19 Police Reform Programme exempt appendix
Exempt information noted.

Agenda Item 20 Accommodation for Lambeth Borough Operational
Command Unit
Exempt information noted.

Agenda item 21 Resolve Business Case
Agreed to upgrade the emergency communications provision.

Agenda item 22 Vehicle Maintenance Contract
Exempt information noted.

Agenda item 23 Vehicle Removal Contract
Exempt information noted.

Agenda item 24 Exempt minutes of the meeting held on 19 July
The minutes were agreed as a correct record.

The meeting ended at 1.35 p.m.

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