Purpose : for Decision

Committee: FULL COUNCIL

Date : 23 NOVEMBER 2005

Title : APPOINTMENTS TO, AND TERMS OF REFERENCE FOR, THE INDEPENDENT REMUNERATION PANEL

REPORT OF ASSISTANT CHIEF EXECUTIVE

PURPOSE

1. To appoint members to the Independent Remuneration Panel and to agree terms of reference for the Panel.

2. The terms of reference should seek recommendations which reduce the real cost of supporting elected members over the lifetime of the Council and incentivise effective activity by elected members.

BACKGROUND

3. The Council is empowered to agree a scheme for the payment of allowances to elected Members (the Members Allowances Scheme). However in agreeing such a scheme the Council has to establish an Independent Remuneration Panel (having a membership that is completely independent of the Council) and has to have regard to the recommendations of this Panel on the level of allowances etc paid to members.

4. The Council has considered various reports from its Independent Remuneration Panel over the years and the current Members Allowances Scheme (as included as the final section of the Council’s Constitution) reflects various recommendations from the Panel. The new Council now needs to establish, and appoint to, a new Remuneration Panel.

APPOINTMENT OF MEMBERS TO THE PANEL

5. Previously the Panel has comprised of four independent members and it is suggested that this size should remain as it is sufficiently small for the business to be conducted effectively whilst having sufficient numbers to reflect the diversity of the Island community.

6. It is suggested that appointments be made as follows:

· Chair – Professor David Farnham – reappointment of Chair who has served on the previous Panel with distinction;

· Mr Chris House – General Manager of Bardon Vectis, to represent the business community; and

· Two members of the public from a shortlist drawn up following press advertisement. Appointed by the Monitoring Officer, following interviews by

· Professor Farnham, and the Monitoring Officer (or nominee) and in consultation with the Leader of the Council.

BRIEFING PAPER FOR THE PANEL

7. Draft Terms of Reference for the Panel is set out in the legislation and is produced at Appendix 1.

FINANCIAL/BUDGET IMPLICATIONS

8. The establishment of the Panel will have modest call on Officer time (the Panel will be supported by the Democratic Services Manager) and a modest fee is payable to the members of the Panel reflecting their time input to the work of the Panel. At this stage Council is not being asked to make any changes to the current scheme and the full financial implications of these will be set out in detail once the Panel’s report has been finalised. However Council are asked particularly to note that an objective is an annual reduction on the baseline cost of members allowances of 2.5% per annum.

LEGAL IMPLICATIONS

9. The Local Authorities (Members’ Allowances)(England) Regulations 2003 sets out the requirement for the Council to establish an Independent Remuneration Panel and these proposals comply with that regulation.

OPTIONS

10. The Council has to, by law, appoint a Panel – the terms of reference, size and appointments proposed are an effective way of discharging this duty.

RECOMMENDATIONS

11. It is recommended:

(i) That Professor David Farnham be appointed as Chair to the Independent Remuneration Panel until May 2009 (the life of this Council)

(ii) That Mr Chris House be appointed as a member of the Panel until May 2009.

(iii) That the Assistant Chief Executive be delegated authority to appoint, in consultation with the Leader of the Council, such other members to the Panel as are required to ensure that is has a total membership of 4.

(iv) That the Terms of Reference for the Panel as attached at Appendix 1 be approved.

APPENDICES

12. Appendix 1 – Terms of Reference of the Panel as set out by legislation

Contact Point : Chris Mathews, Democratic Services Manager ' 823280 [email protected]

JOHN LAWSON

Assistant Chief Executive

COUNCILLOR ANDY SUTTON

Leader, Isle of Wight Council

APPENDIX 1

Terms of Reference of the Independent Remuneration Panel as set out in the Local Authorities (Members’ Allowances)(England) Regulations 2003

1. An independent remuneration panel shall produce a report in relation to the authority or authorities in respect of which it was established, making recommendations –

(a) as to the responsibilities or duties in respect of which the following should be available, and in what amounts -

(i) special responsibility allowance;

(ii) travelling and subsistence allowance;

(iii) co-optees' allowance;

(iv) dependents’ carers allowance; and

(v) with the following objectives:

· To reduce the total cost in real terms, to the public purse against a baseline of the cost in 2004/2005 to the projected cost in 2009/2010. The average reduction on a year-on-year basis amounts to 2.5% per annum.

· To incentivise Members to reduce non-cash costs of facilitating Member activity (for example the cost of printing, word processing, etc).

· To incentivise a reduction in the environmental impact of Member activity (for example, travel, paper and IT consumables).

· To incentivise Members to concentrate on the strategic improvement of the performance of the Council.

· To enable and encourage the role of elected Members as community leaders.

· To ensure the retention of existing Members in their elected role and to attract a diversity of Members in the future.

· To include the independent chairman and members of the Standards Committee and co-opted members of the Scrutiny Committee and one of the Policy Commissions within the scheme.

(b) whether to backdate the effect of any changes to the scheme.

(d) as to which members of an authority are to be entitled to pensions in accordance with a scheme made under section 7 of the Superannuation Act 1972; and

(e) as to treating basic allowance or special responsibility allowance, or both, as amounts in respect of which such pensions are payable in accordance with a scheme made under section 7 of the Superannuation Act 1972.

2. The Panel shall comprise of at least 4 members (but may co-opt more if to do so will deliver these terms of reference more effectively) appointed by the Council, or under delegated authority, by the Monitoring Officer.

3. The Panel and appointments shall be effective (unless casual vacancies arise and are filled) until the next ordinary Council Elections in 2009.