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FINAL TRANSCRIPTION


PERMANANET SECRETARY SIR JON SHORTRIDGE

LORD RICHARD: Thank you very much for coming and thank you very much for coming early, at some benefit to the Commission. Can I ask you formally for the sake of the record to identify yourself.
SIR JON SHORTRIDGE: Jon Shortridge, Permanent Secretary, National Assembly.
LORD RICHARD: What we ask our witnesses to do is perhaps open up the topic for us for five or ten minutes and then, if we may, we will ask you questions following upon what you have said and on the paper that you have been kind enough to submit.
SIR JON SHORTRIDGE: What I have sought to do in my evidence is give you a Civil Service and civil servant's perspective on the way in which the devolution process has gone on so far. I am quite grateful for that opportunity because I think the story I put into my evidence is a story which is not fully known and understood at the moment, because I have rare opportunities to explain precisely what has happened and what it has felt like to be making this transformation from what I have, (perhaps unfairly but nonetheless) described as an offshore government department - a government department semi-detached from the main Whitehall machine; - and making the transformation from that to an entirely new constitutional body, one which never existed even on a shelf. When the Members were elected none of us really knew for sure how it was going to work and rightly so because essentially we created a shell into which were transfused 60 elected members and it was for them to decide how they wanted this organisation to work. The governing legislation and the associated standing orders actually gave them quite a lot of flexibility to themselves determine how they wanted to work. It did mean for us as officials that we could not be going in from day one and saying this is how it is all going to happen. We had to be tuning into this organisation, listening very carefully, seeking to understand how Members were going to be most comfortable with developing this organisation for themselves. The story, in part, that I have told here is a story of really very rapid evolutionary development. I would not describe the Assembly as yet anywhere near in a steady state but it has come a very long way in three years. There is now a much clearer and better understanding by both members and officials as to what their and our roles and responsibilities are. But there are still some quite fundamental difficulties with it, in my judgement. From my own personal perspective the biggest difficulty arises from the fact that the Assembly is a corporate body. It is a corporate body which has decided to develop itself insofar as it lawfully and statutorily can into two bodies, And in a number of respects it operates pretty well as two bodies. You can see why that development has happened, although I would say there was not necessarily an inevitability that it would develop in the way it has. In part it has developed in the way it has because of the founding arrangements on the one hand but then also because of the personalities and the background of some of those personalities who have come into the body. Certain powerful personalities/members had very clear views on the way in which they wanted to take it forward and they have successfully taken it.
But there are still fundamental problems for some of us, notably for me and for Winston Roddick whom you saw this morning. The Assembly now has two logos, an Assembly government logo, and it has a Presiding Office and Assembly member logo. To use the title of the recent business bill I have ‘no logo’ because I cannot associate myself exclusively with one side of this organisation or the other, because my function is determined in the statute and I am the Permanent Secretary of the National Assembly as a whole. That can be a pretty uncomfortable place to be when you have got these two organisations within the organisation seeking the maximum possible separation for themselves but where, because of my statutory responsibilities, there are times when I do not feel I can pretend I am a member of one part or the other. So there is a lack of clarity at the heart of this institution in the way it has developed and irrespective of anything else, that is an issue that needs to be addressed anyway. I will pause there, Chairman.
LORD RICHARD: Thank you very much indeed. I think I would like to pursue this corporate body point, if I may, because it really does seem to me that the concept has creaked just about as far as it can and the next stage is some kind of rupture. Winston Roddick described it as on the verge of a divorce but the parties were still technically living together. Given the fact that it is government on the one hand and parliament, if I can use that phrase although it is imprecise, on the other hand, how could you give advice to both at the same time?
SIR JON SHORTRIDGE: I do not and if I were to try to I would get myself into great difficulty. I think if you talk to probably every member they would say that my role is to serve the government of the day, and I cannot serve the government of the day at the same time as serving the other two parties and the other 51 elected members either collectively or individually; you just cannot do it, given the way in which the Assembly has developed.  From a very personal perspective, I think it would be much the best if statutory reality could be given to that situation.  Just to repeat, I think from day one and certainly when the Bill was going through Parliament and when the standing orders were being drafted, none of us really thought that inevitably this is where we would end up. You have got two members of your Commission who come from local government and up until now officials of local authorities have been able to have a relationship in terms of engagement with the other party groups.  I think they will increasingly, if they have not already done so, find that very difficult to do with the introduction of cabinet government into local authorities.  But from where we were four years ago there was an expectation that the Assembly would develop in a way where officials would be able to appropriately serve members, not necessarily in an equal way but would have a serving relationship with all members of the Assembly.  That has not happened but it does cause me, on occasions, problems.  If you are the accounting officer for the Assembly at large, with its £10 billion plus expenditure, and you do not know for sure what decision the Assembly might take on a matter which you think reflects on your own personal interests, that is an uncomfortable position to be in. Where you have a situation where it is generally acknowledged that the Presiding Office and members have to have access to what is called ‘independent’ legal advice, that causes me a problem because independent legal advice as far as they are concerned is advice which I as Permanent Secretary do not have access to.  So I do not know the basis upon which they may be going to take decisions. I do not want to exaggerate the point.  For the most part, these things have been managed through and I can cope with them and I do not feel the need, except very rarely, to raise what I regard as these fundamental issues of principle which go to the heart of what the members regard as their democratic rights, because I am associated with government, and what am I doing wanting to interfere and intervene? I could envisage a situation where there was potentially a big decision that was going to be taken which I thought impacted on my personal interests and I had no real basis ---
PETER PRICE: Can you define what ‘personal interest’ means?
SIR JON SHORTRIDGE: If there was a decision to spend a lot of money which I did not think was necessary in the Assembly's budget and the politics were working out in such a way that this might happen, then I am the accounting officer for the Assembly.
VIVIENNE SUGAR: Can I ask you how these things are managed in Scotland?
SIR JON SHORTRIDGE: It does not apply in Scotland because Scotland is the Westminster model. My opposite number, if that is the word, in Scotland is the Permanent Secretary of the Scottish Executive and the Scottish Executive is the government arm of the devolved arrangements in Scotland. So he has exactly the same accountability arrangements to ministers in Scotland that exist in Whitehall.
VIVIENNE SUGAR: So there is no ambiguity, there have not been any teething problems initially from which we could learn?
SIR JON SHORTRIDGE: You would have to ask him that. I am sure there have been novelties and innovations and all the rest of it. I think the point that I am making cannot by definition apply in Scotland. Just to repeat, I have made the point and I do not want to over-state the point. This is not a problem that arises with me weekly, monthly, or, with any luck, yearly.  But it is a theoretical problem which is of concern to me from time to time where, because of my personal responsibilities, it could cause me difficulties because it is not self-evident.
LORD RICHARD: What would you have to do statutorily to put it right? How much would you have to do?
SIR JON SHORTRIDGE: You need a lawyer rather than me, but I think essentially it means that there should be a separate government arm so you would split the two parts de jure. And it would mean that whereas at the moment the Assembly ministers or the First Minister gets his statutory powers by delegation from the Assembly at large, you would have to change the situation so that those powers were vested in the First Minister probably by the Crown, so the delegation would not come down through the Assembly route, and then you would just have two separate bodies rather than a single body seeking as far as possible to behave as if it were two.
SIR MICHAEL WHEELER BOOTH: The effect on your chart at the back of your paper would be just to draw a line up?
SIR JON SHORTRIDGE: It would separate out the Presiding Office.
SIR MICHAEL WHEELER BOOTH: Just that one column would separate out?
LAURA McALLISTER: There would be quite enormous staffing implications surely in terms of the balance between them?
SIR JON SHORTRIDGE: If nothing else changed, I do not think, as Sir Michael has indicated, there are necessarily going to be any knock-on effect on staffing because, as it is, the Presiding Office operates as autonomously from me, if I can put it that way, as they possibly can. We might need to formalise certain very informal relationships because we have a central finance function, central personnel function and so on which the Presiding Office can have access to whenever they want to, and rightly so. I do not think any member has a concern about that because the technical support that they are getting from the government side of the house on matters like personnel and budgeting and so on are services which are available to the institution as a whole and which they can have access to. I do not think it would be necessary and probably not sensible to seek to replicate those skills that exist at the moment. So you could create two bodies without it having a significant impact on staff.
LAURA McALLISTER: Is the implication of that that the provision of support to the Assembly members as a whole is inadequate as it currently stands with this divide? I am talking about legal advice, policy advice and so on to subject committees. Is that your understanding?
SIR JON SHORTRIDGE: I think the support that members get in subject committees is largely politically party-based support as opposed to support from Assembly policy officials, if I can put it that way. And that gets back to the split because everyone who works on the policy area on the government side of the house is now perceived as exclusively serving ministers, so to the extent that they assist a committee, they do that with the agreement of the minister. So that when you attend a subject committee meeting and the minister is there, you contribute with the licence that the minister gives you. If the minister does not ask you to be taking the lead on a subject you would obviously stand back and let the minister do that.
SIR MICHAEL WHEELER BOOTH: One practical detail, the cost of a member of the House of Lords at the moment i , 85,000 each, they have not got salaries, an MP is about, 380,000, a member of the European Parliament is over, 1 million each.  One of the chief causes of this is language translation. One of the sources of cost of the devolved Assembly is its bilingual nature. Which would that fall to if you carried out the divide? Firstly, how much does an AM cost? What is the comparable figure for an AM at the moment?
SIR JON SHORTRIDGE: I think I would have to put a note in on that, Sir Michael. There is a figure for their salary and then the associated allowances that they get which is not an especially large figure but I am not sure whether the figures you have quoted are taking account of other things as well, so if you count in all the members' services available through the Presiding Office and then pro rata that out, you get a different figure. I will let the Commission have the figures on that via the Secretariat. In the case of the translation service they are an example of the opposite to the personnel services that I was talking about. At the time when the split was formalised, there was an agreement that the translation unit would sit in the Presiding Office but it would provide services on an equal basis to the government side of the house. If there was a split there would be a need to address whether that situation was going to continue and, if so, was it going to be formalised into some sort of service level agreement or whether actually you should have two separate units. The arguments go to and fro on that. There is a value in having as much of a critical mass as you can in one unit, but that is a detailed issue that will need to be addressed at the time.
TED ROWLANDS: On the back of your question, one thing that surprised me about the paper to us is that there is not a single figure in it cost-wise. The original Voice for Wales estimated that the cost of running the Assembly was between £15 and £20 million. What is the actual cost of that today?
SIR JON SHORTRIDGE: I probably will have to give you a note on that, partly because I am here an hour earlier than I thought I would be so I have not been able to go through all these papers here.
TED ROWLANDS: The second original Voice for Wales cost was that the Welsh Office side, the administrative side was going to be £72 million. What has actually happened?
SIR JON SHORTRIDGE: I will certainly let you have those figures. I can abstract from that and say, in line with what I was saying at the outset, the Assembly has developed in a very different way from the way in which it was originally envisaged and, as a consequence of that, certainly the staffing and support requirements have been greater than was genuinely and honestly expected at the time. Once you separate out the Presiding Office then there is an understandable demand from members to have their own support staff, their own researchers to underline their independence from the government side, so that has created more staff than we had originally envisaged. As I try to indicate in my paper, I would put it that there has been an increase in the basic workload of somewhere between 10 and 15 per cent. We then brought in all these other bodies.
TED ROWLANDS: You have to extrapolate, I want a like-for-like comparison.
SIR JON SHORTRIDGE: It does get quite complex but I will do what I can.
SIR MICHAEL WHEELER BOOTH: In the White Paper there was a suggestion there would be economies, for example, in quangos which would go some of the way towards balancing the books, so to speak. Can you give an indication, it may be impossible to do but if you could it would be useful because it is an absolutely admirable paper, you have done so much so quickly and one feels, ‘Phew, gosh, they have been running,’ and one is all the time coming back to the increase of work, increase of responsibilities and one wants to get a true figure of what this really involves. I think that does mean pluses and minuses, so to speak?  As a last point on this, if they are available, could we have some comparable figures with Scotland and Northern Ireland?
SIR JON SHORTRIDGE: I will put in a separate note on all that. I will have to research comparable figures on Scotland and Northern Ireland. We may not have comparisons there
SIR MICHAEL WHEELER BOOTH: The research being done by academics on devolution. I think there is somebody in Edinburgh although I have not seen it.  I certainly do not want to ask, insofar as I am able to ask, for a lot of new work to be done; it is to get what is available.
TED ROWLANDS: The reason we are asking is that one of our terms of reference is we have to make an assessment of the financial implications of any changes that we recommend. It would suggest that we ought to be sceptical about estimates.
SIR JON SHORTRIDGE: I would not comment on that. What I would say, and I think it is a relevant point for you to take into account when you read this information, is that Sir Michael has been kind enough to say about there being an enormous amount of change and a lot achieved in a short space of time, and I believe that to be true. When you are responding to that amount of change in circumstances of great uncertainty - and we did not know where we were going to end up, so you cannot plan for an unknown destination - it meant that to an extent in the short term I have had to put in resource to do more of the same in order to deliver what is now required. I hope I am now at the stage where we can as an organisation be taking stock and looking to find ways of doing things better, smarter and reducing some of our overheads. I do not think it necessarily follows that the sort of growth path that we have had should necessarily be continued whenever you have additional responsibilities imposed or placed on us. I am in the business of looking to make the organisation work much more effectively and therefore much more cost-effectively because I think that is one of my main duties.
TED ROWLANDS:  If we put in our report estimated costs I would not like in a year's time to turn around like I look at the Voice of Wales and be out by that sort of factor. That is all I am suggesting.
PETER PRICE: Linked to that I assume that if we separate out the two bodies the staff who work for the National Assembly would cease to be civil servants. Would that mirror Parliament and Whitehall arrangements?
Secondly, you talked about the fact that that might then lead to further demands for staff for the National Assembly itself.  Against that, how do you see the initiatives that you are referring to particularly in 21 and 22 of your evidence in terms of trying to expose a greater number of staff within public service in Wales to work in the National Assembly and the National Assembly drawing from their strengths?
SIR JON SHORTRIDGE: On the first point, I do not think it necessarily follows that, if you split the two organisations, the parliamentary end necessarily should no longer be staffed by civil servants. It is a matter of judgement and ultimately it would be a matter of political judgement. Linking that to your second point, as I have tried to make clear in my evidence, I am very much in the business of trying to develop a much stronger public sector in Wales because I think that is in the interests of public services in Wales and I think it is also in the interests of staff who want to pursue a career in the public sector in Wales. And part of that is trying to minimise what I think I have described as the ‘obstructions’ or ‘frictions’ between different types of organisation, because the moment you have different terms and conditions of staff it makes it that much more difficult to have staff moving around. From where I am sitting, with perhaps a slightly more narrow perspective, I would not like to see a new set of terms and conditions and a new type of public sector being established unless there is a very good reason for it. I had a discussion with staff from the Presiding Office earlier this week because I wanted to have an opportunity to share with them my evidence and hear what they felt about it, and in particular I was interested in the point that I had floated into this evidence that it may well be if there is a separation that the Presiding Office staff would cease to be civil servants. There were some people there who were quite strongly of the view and attracted to the idea of them ceasing to be civil servants, but I do not think I am doing them an injustice by saying that their main interest was to ensure that there was a full and proper separation, and they would see the question of their status as to whether they were civil servants or not as a secondary issue.
VIVIENNE SUGAR: Can I ask you a question about the numbers of staff that are needed for the different things. I thought there was a slight contradiction in the paper in that in your last paragraph you say that you think that if powers were enhanced that the Assembly Civil Service would have the capacity to cope without much further enhancement of its numbers and yet in the staff survey that you have included over 40 per cent of your staff are saying that they cannot get their work done within their normal working hours.
SIR JON SHORTRIDGE: It is a conundrum, is it not. I think I have a leadership role and, part echoing what I was saying earlier, I think where you have got pressures on people's time and capacity problems in an organisation you do not automatically and necessarily take the view that the way to deal with that medium to long term is by recruiting lots more staff. I think you have a responsibility, particularly as a senior management team, to be looking at ways in which the work can be done differently. You are looking to discuss with ministers in our case the extent to which it is satisfactory to reduce standards in certain areas in order to make sure that we can provide the service expected of us without imposing unreasonable burdens on staff. I am conscious always, perhaps picking up partly Mr Rowlands' point, that I am in the business of reducing our overheads as much as I reasonably can so as to make resources available for front-line services. We do have to remember that this is still a very fluid period in the life of the Assembly. Part of that evolution is the new pressures that puts on staff. We have to have a certain amount of time to be able to adapt to those pressures without me constantly asking for more staff. I hope you would acknowledge what I put in this paper - workplace stress is a question which I take very seriously indeed and does need to be addressed. It may be that having addressed it I would conclude that the solution is that we are under-staffed but I am not convinced of that yet.
PETER PRICE: By integrating a number of public bodies you have added both extra functions and extra staff?
SIR JON SHORTRIDGE: Yes.
PETER PRICE: What has been the net impact on workload as a result of that? Have you found, for example, that the number of staff when brought in have enabled you to deploy some of them to other functions that were previously carried out by civil servants who did not come from that public body?
SIR JON SHORTRIDGE: I cannot give you a strong evidence-based answer to that because it differs with the different organisations. We have just created the CSIW which is a lot of very professional staff being brought together to perform that inspectorate function. That is a self-contained process. We brought in Tai Cymru just before the Assembly was established and there they have become part of the Housing Directorate, and there will still be quite a lot of people working in that Housing Directorate that came from Tai Cymru. But there are a lot of Tai Cymru staff who have taken the opportunity of working in this larger organisation to develop themselves in different ways, and I really value that. But in the straightforward accounting ---
PETER PRICE: Netted off?
SIR JON SHORTRIDGE: --- I could not give you an off-the-cuff figure.
PETER PRICE: An impression?
SIR JON SHORTRIDGE: I would be surprised if we have made very significant staff savings as a result of bringing these organisations in but I have never done the calculation.
PETER PRICE: If I may pursue the bringing in of staff from wider organisations just for a moment. Is there anything about the nature of devolution that makes this a more suitable thing to do, to bring in those organisations and incorporate them? Is it linked in some way to devolution or is this a policy that has been pursued. What have turned out to be the advantages and disadvantages of doing it?
SIR JON SHORTRIDGE: I think in many ways that is a question for a politician and not for me so if you will excuse me I will give a slightly narrow answer to it. I think that one of the potential benefits of the Assembly is that it creates the opportunity to provide much stronger and greater democratic accountability within Wales, and you can do that in a number of ways. You can do it by closing organisations down and bringing them into the body corporate, as we have done, or you can keep them in existence but have a much greater political engagement and involvement in the process of appointing the board members of the bodies, and then you have a much closer political engagement between the minister responsible for the body and the bodies. So you have got these two, I suppose I can polarise them, models of how you can use the Assembly to create more democratic accountability in these areas of policy delivery. At any one time I think it will be a political judgement for the government of the day to decide where they want to position themselves on that continuum.
MR JONES: In terms of the staff you say that you wish to see more of them perhaps exchanging and getting wider experience by going to Whitehall. It is more of a challenge. If there were a division of the Presiding Office staff, would that allow them to go to Whitehall or would that debar them from having that wider experience?
SIR JON SHORTRIDGE: At one level there is no barrier because it is a question of initiative, both of the individual members of staff and of their managers to create and allow these opportunities. I would have thought staff in the Presiding Office who are wanting to experience other relevant institutions would tend to be looking for exchanges with Parliament rather than with government departments. Some of that goes on now and I am sure there is an opportunity for more of that to happen. I know the Presiding Officer in particular is very keen that it should. Whatever happens and if anything happens, if the Presiding Office were to be split off into a separate institution I do not think that that would materially affect the staff's opportunities to experience comparable activities and comparable organisations. In all my time as Permanent Secretary when I have direct or indirect influence I will be doing all I can to encourage that because in the long term organisations benefit from people having experienced other related areas of activity.
TED ROWLANDS: Could I pursue your paragraphs 33, 34, and 35. This is where you offer us the judgement of how you can accommodate primary legislation to a manageable load. As you say in different paragraphs costs occur in different ways. I can see why, given that you are already doing quite a lot of preparatory work in drafting instructions and all the rest of it, that that is not a huge additional cost possibly but then in the other paragraphs you start to identify some real costs. First of all, there is the question of the cost to the Presiding Office side of things and handling it all, it is all time-consuming and there are extra sitting days. Then in paragraph 35 in the very last couple of sentences you draw attention to others you do not think much about. I can assure you it happens, if you start to prepare legislation in a more front-line sort of way you generally build in additional administrative costs because you have pressure groups mounting more effort than they would have done previously possibly and, secondly, the correspondence and things that flow from it. All my experience teaches me that legislation is not cheap and the resource that goes into it, the ministerial time alone as a cost is enormous. If we are going to address this question, would it be possible to try to have a short answer describing the cost of carrying out such a programme. We know that the Assembly this year listed its ten bills or whatever it was, the equivalent of what the Queen's Speech would have been if it were a prime legislative body, and it would have contained those ten bills. Assuming they wanted to carry those through, could we devise an attempt of working out what the resource implications and cost implications would be of doing that so we can address our remit about the financial implications of recommending such a switch or a course?
SIR JON SHORTRIDGE: I am very happy to do that and to put in a note on it. In part, though, I think one has to bear in mind that it does not necessarily follow that the Assembly would deal with legislation in exactly the same way as Westminster. I was having an interesting discussion with my senior colleagues before I came here because I wanted to get their views on my evidence. It may be, for example - and it is hypothetical - that you could have a situation where you could follow through a primary legislative programme in such a way that it was not going to itself generate as much subordinate legislation.
TED ROWLANDS: So you could save on that.
SIR JON SHORTRIDGE: Precisely so.
TED ROWLANDS: It would be a longer bill.
SIR JON SHORTRIDGE: It could be but I think as a Commission there needs to be an awareness that it does not necessarily follow that the primary legislative process and its consequentials within an Assembly context would be the same as Westminster.
LORD RICHARD: My impression reading your paper is you see the possibility of primary legislation as a desirable addition to what they have got, provided they do not use it too often, which is a perfectly rational and acceptable position
TED ROWLANDS: That is a temptation politicians will not accept.
SIR JON SHORTRIDGE: I understand that.
LORD RICHARD: If I am understanding what you are saying, you can cope quite nicely with four or five important pieces of primary legislation a year and the Assembly Civil Service would manage that. I suppose if there were more, perhaps ten or so bills a year, it may be a bit different.
SIR JON SHORTRIDGE: That conclusion you have fed back to me would have to be tested against the work I have promised to Mr Rowlands, so I think it is important that I should do that.  I think what I was really saying, and perhaps taking advantage of my position a bit, is that if you are in effect the chief executive of the Assembly, I should take the opportunity to speak the Assembly up whenever I can. I think the impression that I have got, and a lot of my colleagues have got, is that the Assembly has filled an important gap in the governance arrangements within this country. That gap is how I have tried to express it.  When you have 60 elected members focusing on the things that are important to the people of Wales within an existing statutory framework but with different budgets, eventually you come up with all sorts of interesting, novel, highly desirable things which can be done to improve people's lives in Wales.  I make this as a non-political point. It is something which the institution has the capacity to do and to deliver and increasingly over the last two or three years that is what we have seen the Assembly doing. I am very proud that the institution has been doing that. I think it can do more of that and become more successful at it. I just think - and this is a personal view - that it would be a shame if it had primary legislative powers and then became a bill-producing machine and that was lost. So I just hope that if you were to recommend in that direction, and I literally hold no views on that, I would ask you to think very carefully about the extent to which the institution might evolve in that way so as not to lose the very real benefits which are being realised at the moment.
LORD RICHARD: You say that the existing settlement produces enough pressure on the individual members - and that this will be more inventive and it will be able to work around the road blocks in their way.  If you remove the road blocks ---
SIR JON SHORTRIDGE: They are inventive and they are very creative.   The way I characterise it is that in the past - and I do not mean this in a pejorative way, Mr Rowlands was a minister himself - you had three Welsh Office ministers who were operating to a very significant extent from London and from Whitehall and they were doing the best they could with their networks and their ---
TED ROWLANDS: I need to say I do dissent from the first paragraph - your reference to ‘offshore’. In 1975-79 there was nothing offshore about it.
LORD RICHARD: It was wading in the shallows!
SIR JON SHORTRIDGE: I did not mean any offence, I wanted to have an impactful phrase which showed that the Welsh Office was a bit out of the mainstream of some government departments, or perceived to be as such. What you have got now is 60 elected members from all over Wales with their different political values and beliefs with their own networks which they are bringing into the Assembly and into their subject committees, so when bits of business are coming before a subject committee there is a much more forensic, well-informed assessment and consideration of those issues than was possible under the old arrangements. It is out of that cauldron that we have had a lot of innovative proposals. Again I make that not in a party political sense, it is just the system, whatever party was in power, would be delivering those things which I think have been a bit better.
LORD RICHARD: What you have got to have for that to work surely is an effective three party system? If the Assembly is deeply political that would not be effective.
SIR JON SHORTRIDGE: You have got the experience of party that I have not. The point that I would hang on to, which I think is critical to what I have been saying as continuing to be achievable, is the concept of having a minister present in the subject committee. If you have a minister present in a subject committee where these things are being discussed and debated, by definition, the minister's views are being formed and influenced in a much more focused way than would happen otherwise. If you had a situation where ministers were detached from the subject committee then that would encourage a much greater politicisation and I would agree with you.
PAUL VALERIO: You say you are quite capable of coping with additional powers and the atmosphere in the Assembly is good and very positive but what about the time and opportunity for scrutiny of secondary legislation, with an increased workload, what sort of ratios of increases would be required to adequately maintain the standards?
SIR JON SHORTRIDGE: I cannot, I am sorry, give you an informed and evidence-based answer to that. I think it is a judgement you may feel that you as a Commission need to reach. I think you would need to take the views of the members themselves because I have not discussed this with them. These are just really my reflections and my observations. Logically there would come a point when you could not add powers and responsibilities to the Assembly to such an extent that you could expect the existing 60 members adequately to do the job. I think we can agree on that logical position. Where that point comes is not something I can make judgements on. All I can do is draw attention to it and in so doing say there may be things which the Assembly is currently doing which it could be doing differently and in a less time-consuming way, and if members felt sufficiently comfortable with that then that would create additional space to do, say, primary legislation without losing any of the other things which are generally regarded to be of particular value. I think one of the things you might like to look at is the extent to which, if the Assembly were to have primary legislative powers, the amount of time devoted to subordinate legislation could be reduced without there being a significant loss of democratic accountability and control.
HUW THOMAS: Part prompted by the ‘offshore’ government departments, how does Whitehall now regard you and to what extent do you see your role as helping overcome some of the boundary issues and ragged edges that we have been hearing about from ministers and some of your senior colleagues?
SIR JON SHORTRIDGE: Can I just take this as an opportunity to withdraw the offshore remark because I do not want to cause offence to Mr Rowlands or indeed to anyone. I was just wanting to try and ---
TED ROWLANDS: --- Thank you
SIR JON SHORTRIDGE: --- capture the reader's attention in the first few lines. I seriously do not want it to cause offence and I withdraw it in deference to Mr Rowlands. On the relationship with Whitehall, my own personal view is that at one level Whitehall have got used to devolution, they do not see it as a big issue or a big problem. They are very tolerant of us and when issues arise they will always be looking to resolve them in a constructive way. The problem we have is that the devolution to the Welsh Assembly is still very new and if suddenly some issue arises and the Whitehall official or team which has got responsibility for that has never had to deal with the Assembly before, it has never been on the radar screen, they have never thought through what that means for the way they conduct themselves, then something can go seriously wrong and cause embarrassment because they advised the minister in the wrong way and the minister has not had drawn to his or her attention the Assembly or Wales angle, so things go wrong. That is all part of the learning process and whilst it is unfortunate I do not think one should read too much into it.
On the ragged edges, it always was the case that the Welsh Office was an expansionist department which whenever an opportunity arose to take additional responsibilities it would do so, and that is where the ragged edges have grown up because all we did when we created the Assembly was take a snapshot of what those ragged edges looked like and transferred them into the transfer order which give the Assembly its powers. There are areas where officials and perhaps members feel these edges could be rounded off a bit but that is much more in some portfolios than others. I have not read all the evidence you have had from the ministers or read their transcripts but that will be the impression that they have given you. Some ministers do not see the absence of legislative powers as a problem at all.
VIVIENNE SUGAR: Can I ask you about your budgets and how the staff budget is agreed. What is the process by which the appropriate numbers and so on to support the Assembly functions are agreed? What is strictly within your purview as Permanent Secretary and has had to be brokered within the political process? How does it compare with staffing costs in other parts of the Civil Service?
SIR JON SHORTRIDGE: The Assembly has an administration budget for which I have responsibility and all the other policy areas have budgets for the main expenditure groups and in our jargon those are the programme budgets, so there is a programme budget for economic development and a programme budget for agriculture and then we have our administration budget for administration costs. When a budget is approved by the Assembly, the Assembly formally approves all these main expenditure groups so the budget that I work from is formally approved by the Assembly and what goes ---
VIVIENNE SUGAR: On the recommendation of the finance minister?
SIR JON SHORTRIDGE: Absolutely, so what goes into that budget reflects some discussions which have taken place between us as officials and the Finance Minister.
VIVIENNE SUGAR: What about a comparison with other areas of the Civil Service?
SIR JON SHORTRIDGE: I would have to let you have a note on that if you wanted that to be pursued. The impression, and I think it is a fair impression, was that we always felt in the Welsh Office that as compared with the Scottish Office we have had less generous funding than them. In part that may be an unfair conclusion because I think if you are twice the size of us, as the organisation in Scotland is essentially, that gives you certain advantages in terms of capacity and overheads and so on. I am certainly not suggesting to you that I regard, myself, the Assembly as seriously under-funded on administration costs and I would be surprised if any comparison indicated that we were, but, equally, I would be very surprised, to the extent you can do a straight comparison, if the figures indicated that we were particularly generously funded.
PETER PRICE: If one looks at the impact on the staff themselves, you have quoted the staff attitude survey for the National Assembly. Are there comparable figures for Whitehall government departments or for the Scottish Executive and, if so, are there any notable differences between the two.
SIR JON SHORTRIDGE: I do not think at the moment there are sufficiently comparable figures but we are currently doing this year's annual survey and in this year's survey we have extended the number of questions and built into the questionnaire questions which are comparable across a large part of Whitehall, so that will give me (and therefore you) comparative data, I expect these to be available in February and I am very happy to share those with the Secretariat.
LAURA McALLISTER: Can I ask you about the Public Service Management Initiative you referred to. It strikes me as a very laudable aim. Two questions really. First of all, are you confident that we have sufficient infrastructure? I am thinking particularly about the university sector in terms of offering one form of provision for this. To my knowledge, and I teach in this area, there are not specific public administration programmes in universities as things stand at this time, certainly not at post-graduate level. Have you had any liaison with them? Secondly, should that happen and should this group of specifically Welsh looking civil servants emerge, what would be the implications of that in terms of their loyalty? Would there be implications in terms of their loyalty towards the United Kingdom Crown Civil Service or would they see their loyalty as an Assembly loyalty first and foremost almost to the exclusion of the other side?
SIR JON SHORTRIDGE: On the Public Service Management Initiative, and this is a view that I passionately hold, there is a very strong case for creating better career opportunities within the public sector in Wales a benefit to public services as well as to people who want to live and work in Wales. We are still at the early stages but obviously we are involving and engaging the higher and further education sectors in this. There has been some quite active interest from certain parts of the higher education sector. The way I look at it is this: it is a question of tapping into both the physical and intellectual infrastructure that exists in Wales so that there should not be a need to have a massive investment to achieve this. You make use of the teaching facilities that exist in colleges and universities up and down Wales, and to the extent they have got down time you can exploit that down time. If you have provided the necessary leadership and given people the confidence that this is going to happen and this is what you want, it is my experience that the higher and further education sectors can be sufficiently responsive. Okay, it takes a bit of time but if this is going to become a reality they can adapt themselves and we can make use of the intellectual capital that is here. I am not suggesting that we should be relying exclusively on them because I am also a great believer that on matters like leadership and management, a lot of it is sharing experience that exists anyway. So where that happens all you want is the physical location and the secretarial infrastructure to bring people together to give people on the course the necessary experience and opportunity for interaction.
On the question of the Civil Service and loyalty, this is something that I feel very strongly about. In all my experience civil servants - and the Civil Service Code makes it clear - owe their loyalty to the administration that they serve. So in the case of the Assembly Civil Service we owe our loyalty to ministers or where appropriate, to the Assembly at large. It is in our blood and there is no difficulty about that and where people get concerned about dual loyalty and do we not also therefore have a loyalty to the Civil Service arrangements or government departments, the way you reconcile that is through our integrity. If you have integrity and you know you have a loyalty to your administration, that just drives you. It really does drive you and you are operating in a system and a set of circumstances where certainly all your official colleagues are sailing by this same lodestar. There is an understanding and a recognition that in order to fulfil your responsibilities you have an absolute duty to service the administration that you are serving, and you do that with integrity.
SIR MICHAEL WHEELER BOOTH: Departments very often are thought to have a departmental ethos. How would you describe the departmental ethos of the National Assembly circular administration since 1998?
SIR JON SHORTRIDGE: 1999. Are we talking about the ethos within the Civil Service circular administration? I have been in the business of transforming that ethos for two reasons: one, as I have indicated in my paper, the Civil Service needed to be refreshed and I needed to be giving leadership to that transformation process anyway, and then the way we did business in serving the Welsh Office, by definition, is no longer going to be appropriate for serving the Assembly. I had two reasons for wanting to change the culture of my organisation. The way I am seeking to change it is to get everyone to realise that it is their job to identify themselves with the provision of excellent public services in Wales, to know that they are part of a large organisation which is constantly seeking to improve itself, which values people and in particular the people of Wales. These strong principles are in the process of being embedded through the organisation and it will take time for that to be recognised and acknowledged.
I think if you talk to my colleagues who have lived through this, they would acknowledge that the nature of the organisation that they work for and therefore the nature of the culture that we have has changed. It has still got a long way to go.
TOM JONES: To win the hearts and minds of the Welsh people, the Assembly as opposed to the government has perhaps to be seen to be closer to those people and perhaps geography would be one thing and there are some moves afoot to relocate some of your staff to different parts of Wales, starting with Ted's patch. Does that create problems? Are you keen on encouraging that or will it be difficult to maintain this team spirit that you are building?
SIR JON SHORTRIDGE: The National Assembly is the National Assembly for Wales and therefore it needs to be well represented throughout Wales. I think as staff we all fully accept that and want to, as effectively as we can, deliver that ambition of having three large, new offices located in different parts of Wales.
Achieving that is not going to be easy because there are all sorts of personnel issues in particular around it. There is a very clear and firm resolve that it will happen, that we will do it as professionally as we can. At the intellectual level I am not aware of any serious resistance to that. You can well imagine at the individual level people can get concerned about what it may mean for them, but as officials within the organisation we have totally accepted that.
TOM JONES: Just one small question on something somebody asked earlier on. Are you also Permanent Secretary to the staff of the Wales Office?
SIR JON SHORTRIDGE: No, the direction of travel was I was Permanent Secretary of the Welsh Office, then for three months I was Permanent Secretary of the Welsh Office and the National Assembly, then on 1 July the Welsh Office ceased to exist and I remain as Permanent Secretary of the National Assembly. When the Welsh Office ceased to exist what is now called the Wales Office came into being but that is a very, very small department and it has its own head of department who is not a permanent secretary.
LORD RICHARD: Could I ask you about paragraph 22, it is the one that Laura was asking you about. Towards the end of that paragraph you say: ‘This in turn should help to reduce the frictions that currently exist within the policy ‘delivery chain’...’ Can you expand on that a little bit?
SIR JON SHORTRIDGE: You have a situation where the Assembly minister or the Assembly government decides that they want to have this change in education which is going to impact on schools. So that decision is taken and the implementation of that decision then goes to the local education authority and then goes to the school. You have got similar things in health perhaps where something goes from the Assembly to a health authority to a trust and then it is down to a consultant to implement it. If you have got people involved in that delivery chain who do not know each other, do not understand each other, do not necessarily share the same basic values, you can see how you will not necessarily get the message across or the team work that is required through that delivery process. What I am saying, effectively, is that if we can create opportunities for people in the future who have a career in public service in Wales as part of their own training and development either to have experienced two or more different parts of the public sector or to have had a series of development training experiences with people who operate in these sectors, you will start to reduce the artificial psychological barriers that may exist and you will create a much better shared understanding of what people's roles and responsibilities are and how they can operate more effectively.
LORD RICHARD: It has got to be a small institution for that. I do not know how it works in England, for example. Presumably, the frictions are lubricated in various ways.
SIR JON SHORTRIDGE: For those of us who are involved in thinking about delivery at the moment, which is quite a topical subject, one of the things that we are concerned about is the fact that there are just all these people who have got the responsibility for different aspects of service delivery who do not necessarily understand themselves as much as they should do, and therefore communication is not as good as it could be and therefore that is impacting on the way things happen. What I am saying is that Wales is a small country but it is a country where people share a very strong feeling for Wales and if you can create opportunities for people to interact as part of their training and development experiences, there will be a payoff over time, not necessarily very quantifiable but there will be a payoff in the way in which services are managed and delivered in the future.
VIVIENNE SUGAR: I wonder if I could go back to your earlier answer about jagged edges. I think you said that you had not had an opportunity to see all the ministers but you felt there would be more jagged edges in some portfolios than others. To what extent is uncertainty causing problems on a day-to-day basis for Assembly civil servants?
SIR JON SHORTRIDGE: Not on a day-to-day basis. The basic tenet, and it is a view held very strongly at the highest political levels of both sides - the UK government and the Assembly - is that the relationship at all levels should be one of no surprises. The job of all of us who are making the devolution settlement work is to ensure that there genuinely should be no surprises. What I was saying is that where surprises exist or occur, in my experience, they usually occur because of ignorance or misunderstanding as opposed to wilful conduct. One of the things I am doing to address that is I am setting up meetings at least once or probably twice a year with my key permanent secretary opposite numbers in Whitehall so that we can pause and review what has gone well and badly in terms of their relationship with us and our relationship with them. So we are seeking to embed the learning and ensure that we do not make the same mistakes twice. Through things like that I think we will smooth out the relationships. What you will then make be left with is the view that the Assembly ought to have certain powers and responsibilities which did not transfer at the time. You have got that jagged edge as well which is a separate issue and essentially a political issue.
SIR MICHAEL WHEELER BOOTH: Do you get the impression that I have got from people in Whitehall that they think the settlement of which you were one of the authors, embodied in the Government of Wales Act, is bound to change?
SIR JON SHORTRIDGE: I do not think I can answer that on a political level for reasons you will understand, but at an official level I think there is a view, going back to the first discussion we had really, that given the way the Assembly has evolved into these two quasi organisations that has to be made reality in some form or another. That aside, anything over and above that is a political extra, if I can put it that way, but the basic structures that exist at the moment, given the way in which the Assembly has evolved constitutionally, mean that it has inherited a fault line drawn it which needs to be acknowledged.
TED ROWLANDS: Could I ask you how you get on with the Permanent Secretary at the Home Office because Edwina Hart came here and talked of frustration. If you have these meetings with permanent secretaries, do you see it as an opportunity for persuasion of the Permanent Secretary of the Home Office?
SIR JON SHORTRIDGE: He is on my list of permanent secretaries whom I will be having a formal meeting with on these matters. I meet him anyway on a reasonably regular basis when permanent secretaries are coming together. I have no reason to believe that he would not fully share all the sentiments I have expressed to you this afternoon. In other words, I do not think it is a Civil Service problem that may arise.
TED ROWLANDS: Historically, if I may say, the Home Office has always been the most jealously non-devolutionary department from my own researches and experiences. Edwina Hart's evidence is that this tradition has been well maintained!
SIR JON SHORTRIDGE: I do not think I should add to Mrs Hart's evidence. I think it is the case that the Home Office has a reputation for being one of the more traditional government departments, if I can put it that way, and which is therefore perhaps institutionally less exposed to the impact of external changes than others.
LORD RICHARD: Spoken like a civil servant!
PETER PRICE: Can I follow that through, whether the differences in the relationships with Whitehall departments are almost entirely a reflection of the different ethos in the different departments, which inevitably has grown up over time, or whether there is any other factor that you could identify in terms of the different powers of the two bodies or in some other way an identifiable pattern to the relationships and the differences between them?
SIR JON SHORTRIDGE: I think all government departments have their own particular cultures which are evolving in different ways and at different times. One thing which all the government departments increasingly have in common is that there is a requirement on them to transform themselves, and Andrew Turnbull has been appointed essentially to drive through further and quicker change in the Civil Service machine. As part and parcel of that, there are certain imperatives on departments which they all share now which they did not in the past. So Whitehall departments have all got their public service agreements which they have to deliver. They have a much stronger accountable set of arrangements with the centre and permanent secretaries have a much stronger accountability relationship with Andrew Turnbull. All of that is affecting the nature of the relationship but in my experience in these sorts of relationships to a very significant extent the most significant variable is personality, and at all levels if you can establish a good working relationship it requires both sides to invest in that working relationship and then you can usually ensure that the no surprises requirement is delivered.
TED ROWLANDS: Can I ask one personal question, you are the first post-devolution Permanent Secretary. Do you still look at a career structure within the broader Civil Service or do you see yourself now as the sort of man who will see it through?
SIR JON SHORTRIDGE: It is a very personal question and I will give you a personal answer. I do not see how anyone can take the responsibilities that I have got without making an absolute commitment to the organisation, so I have made that commitment and I am not looking to do anything else. On the other hand, if you are in a role fulfilling the sort of role I am doing, you actually hold that position in trust, and so I am very conscious that I fully expect to continue to do it for as long as I have the trust of the people who I am either responsible for or accountable to.
LORD RICHARD: You could not really move to central government, could you? You are not in the same position as the Permanent Secretary of the Home Office.
SIR JON SHORTRIDGE: The whole process of senior appointments in the Civil Service has changed anyway and it is now very unusual for a permanent secretary in Whitehall to just be moved from one job to another. It has happened to Rachel Lomax, but in very special circumstances. The normal process is that permanent secretary posts are either advertised openly or, if the circumstance are regarded as warranting it, are advertised internally to the Civil Service, but there is nonetheless a competition. The thought that somebody might decide to pick me up and drop me somewhere else is just not going to happen.
SIR MICHAEL WHEELER BOOTH: In an earlier exchange I asked an official: ‘more going on, more policy initiatives and more work. Would you say it has been more fun in the Welsh Office since devolution or not?’ And the reply was: ‘I look for fun wherever I can find it. The straight answer is that there are days when it is absolutely exhilarating, wonderful and remarkable and days when you wonder why you joined.’ Do you think that the level of Assembly staffing is adequate and if it is inadequate in any way - and you put something in your paper but you put it more elegantly, in more of a Sir Humphrey form what that exchange represents - what can be done about it, given that you said earlier in answer to a question from Peter Price that more or less you can get the levels of support you want.
SIR JON SHORTRIDGE: It is about the biggest issue that I am currently grappling with. I take stress in the workplace very seriously. I take it very seriously when my staff tell me that they think we are not able as an organisation to allocate the resources to tasks as quickly and responsively as we should. It will take me a bit of time to know the answer to the question as to whether, all other things being equal, we can now regard the Assembly staffing as being in a sufficiently stable state for me to be able continuously to improve the quality of the service that we provide at the same time as taking out the long work hours and associated stress which some, although not all, of my staff experience. By definition, those are very important issues and ones which are right at the top of my list to address. But as I was saying earlier, I do not think that the solutions to these things are necessarily or should necessarily be let's just keep throwing money at it. There are things you can do. You can invest in and make better use of IT. You can have a better engagement with members to find out if you can provide them with what they would regard as a satisfactory service without putting as much resource into it. You can do other things. We are not a strongly executive organisation or implementation organisation but we do, for example, handle lots of grant applications. One of the things I have got my eye on is whether we can centralise the whole of the grant-giving procedures as a way of saving resource which can then be applied to doing some of the other things that are under pressure.
Over the next 12 months I think I will be wanting to reach a judgement on those matters. I cannot give you a definitive answer but I think I have given you an indication that I have not got an appetite for assuming the answer is always to put in more staff.
VIVIENNE SUGAR: Can I ask you a question about the composition of staff. We are charged with looking at the representativeness of the Assembly. Can I ask you about the representativeness of the Assembly staff. Can you just talk about the equality agenda.
SIR JON SHORTRIDGE: In terms of gender we have slightly more women than men, but in the senior Civil Service we only have 27 per cent women. So we have a highly skewed distribution of women, which is something that is being actively addressed. I think our percentages are slightly better than the overall Civil Service average, but I do not make that point as one I am proud of.
On ethnic minorities I think we are significantly under-represented. I would think probably the figure at the moment is between one and two per cent of the Assembly's staff comes from ethnic minorities. In terms of self-reported disability - and we have different measures of disability - we have slightly more than the national average. These are all figures that I am giving you from memory so I ask you to acknowledge that.
What are we are doing about it? It is an area where I am giving a lot of personal leadership. We had a report which was done for the Equal Opportunities Committee on institutional racism, and as a result of that report there have been a lot of recommendations made which were saying: ‘If you want to be able as an organisation to rebut any charge that you are institutionally racist, there are these things you should be doing.’
The most important and critical recommendation was that we should be opening up recruitment rather than relying on internal promotion, so we are in the process of moving to a system of open recruitment for advancement within the Assembly which I think will be the most effective way of ensuring that we have addressed some of those imbalances. In the case in particular of the ethnic minorities, and possibly in the case of Welsh language speakers as well, just opening up recruitment will not in the short or medium term be enough. So we are investing time and effort into outreach activities in particular communities. I have strengthened the Equality Policy Unit so that we have a greater capacity to deal with these issues on the one hand, but also to be working more actively to mainstream equality through the way in which we do our business. This is an area where I would not claim we are there yet but increasingly the Assembly will be at the cutting edge of how you drive equality and value diversity through an organisation both in terms of employment policies but also in terms of the way it actually does its business. In our case that means in terms of the way in which we develop and determine policy and also in terms of the way we implement it.
LORD RICHARD: I think you gave those figures in your evidence to the select committee, if I remember rightly. Can I thank you very much indeed for coming. I found it personally very illuminating and very helpful. You will send us the notes.
SIR JON SHORTRIDGE: I will indeed.
LORD RICHARD: Good, thank you very much indeed.