| SPOTLIGHT |
Calls for the removal of ‘nannying’ restrictions on local authorities are premature, says Maria Memoli
Corporate governance means different things to different organisations. Most of us know what it means, but can we define this accurately?
Three definitions:
Wikipedia: “The term corporate governance has come to mean two things: the processes by which all companies are directed and controlled and a field in economics, which studies the many issues arising from the separation of ownership and control.”
Audit Commission: “The framework of accountability to users, stakeholders and the wider community, within which organisations take decisions, and lead and control their functions, to achieve their objectives.”
CIPFA/SOLACE: “Governance is about how local government bodies ensure that they are doing the right things, in the right way, for the right people in a timely inclusive, open, honest and accountable manner. It comprises the systems and processes for the direction and control of local authorities through which they account to, engage with and lead their communities.”
Corporate governance and local government
The UK saw a shaping of corporate governance in local authorities even before the new millennium, as evidenced in the Cadbury report of 1992, the Nolan principles in 1995, the Local Government Act 2000 and the requirements for a Code of Conduct for Councillors of all tiers of Local Government, up to the Good Governance framework in 2007 and the Code and Statement of Good Governance.
Legislation has never stood still for local government, constantly changing with various governments, social environments and financial pressures, making more and more demands with less and less resources. Local authorities are now expected to deliver their services in partnership with other organisations and agencies, but this brings an inherent danger in fusing roles and responsibilities.
It is therefore even more important to have all the necessary controls in place such as protocols, standing orders, and codes to ensure there are no breaches of the rules, to protect the councillors, officers and local authorities.
Is “nannying” a good thing?
To a certain extent, yes it is. The parameters of how local authorities operate are enshrined in legislation, being creatures of statute, but beyond that it is sensible to have protocols and codes to cover the more “social” aspects of the duties imposed by strict legislation to protect the unscrupulous, or forgetful.
However, there is one school of thought that suggests excessive nannying regulation is far too prescriptive and does not allow enough imagination or creativity.
We cannot have it both ways. So the answer is moderation – enough regulation and guidance to guide and protect but not over burdensome so as to tie our hands. Practising good governance is common sense, and having the courage to ask those awkward questions or to spill the beans. It is good to have this encompassed in a written form, so that everyone can sing from the same hymn sheet.
Maria Memoli provides interim management and consultancy services for local government. She is chair of LGG and Law Society Council Member for local government
