SUMMARY/PURPOSE

1 To consider adoption of a new scheme of members allowances having regard to the report of the Independent Remuneration Panel.

BACKGROUND

2 The Local Government Act 2000 and associated regulations requires local authorities to appoint independent panels to review and/or amend schemes for the payment of allowances to members. The panel’s remit is to make recommendations to the Council and the Council has to take those recommendations into account when amending or reviewing its scheme for members allowances.

3 The Members’ Allowances Regulations 2003 require the panel to make recommendations on Pensions, Travel & Subsistence and Co-optees allowances. The Panel’s recommendations are summarized at Appendix A and a full copy of the report has been made available for inspection at County Hall and on the Council’s website. In addition, the Council has published a notice in a local newspaper that states where and when copies of the report may be inspected and describes the main features of the panel’s recommendations including the amounts of allowances the panel has recommended should be paid to Councillors.

4 The Findings of a previous Panel were considered in April 2002, but not implemented and the scheme of allowances existing at that time was reaffirmed. The current scheme was approved in April 2000 and was based on the findings of the Inaugural Panel, whose recommendations for the levels of Basic and Special Responsibility Allowances (SRA) were agreed in full, with the exception of the SRA for the Chairman of the Licensing committee. The Council has previously determined that this SRA be payable at a rate equal to 40% of the Council Leaders allowance.

5 Members will note that the Panels recommendation in respect of the Suspension of Allowances is consistent with that recommended by the Standards Committee at its meeting on 21^st October.

6 The panel have not made recommendations in relation to the Schedule of Approved Duties. The list of duties is significant in that the cost of members’ travel and subsistence is currently only payable in relation to these approved duties. The current schedule predates the modernisation of council structures in June 2001 and needs refreshing. The draft schedule of Appendix B represents a modernisation of the existing schedule, maintaining wherever possible the same principles and costs of the current scheme.

7 Recent experiences by members shows there may be a deficiency in the current scheme for approved duties, as it does not provide for travel or subsistence to be paid for duties associated with constituency representation.

It is therefore proposed that the following addition is made to the scheme of Appendix B:

“That the holding of surgeries, attendance at Parish, Town or Community Council, Community Forums and Housing Associations be approved duties, with claims in respect of duties from this section, when taken together, being limited to two per month.”

8 Members will note that the report of the Panel is silent on the issue of approved duties. Rather than to refresh the current scheme and/or make an additional provision members may wish to ask the Panel to meet again in the new year to consider this issue in more detail.

FINANCIAL IMPLICATIONS

9 Appendix A summarises the panel’s recommendations. A full copy of the report is available for members’ inspection if required. If adopted from the date of the Council Annual General Meeting on 16^th April 2003 the additional budget provision required for 2003/2004 in respect of currently paid basic and special responsibility allowances would be £102,300 and would be £106,800 in a full financial year.

10 The above figures would increase by £7,500 per year once the Health Scrutiny Select committee was confirmed, and the continuation of the current SRA for the Chairman of licensing would add a further £3,700 to the cost of the panels recommendations above.

11 The financial implications in relation to pensions for Members will of course depend on the number of entitled members opting to join the Local Government Pension Scheme. If all eligible members joined the scheme the estimated annual cost (at the current employer contribution rate of 12%) would be £45,000. If only those members with SRA were to join the estimated annual cost would be £38,000.

12 The additional costs of other recommendations will depend on take up but are not expected to be of a material nature.

OPTIONS

13 (i) The Council receive the report of the Independent Remuneration Panel.

(ii) Having regard to the recommendations of the report, to adopt the revised scheme of Member Allowances as set out in Appendix A.

(iii) To adopt the revised schedule of approved duties set out in Appendix B.

(iv) To add the additional paragraph to Appendix B, as set out in paragraph 7.

(v) To give further terms of reference to the Panel.

(vi) To adopt the recommendations of the Panel except for the level of basic allowance and special responsibility allowance which be further considered as part of the forthcoming budget consultation, and therefore the existing basic allowances and special responsibility allowances remain at their current level.

RECOMMENDATIONS

14. Options (i), (iii), (iv) and (vi).

BACKGROUND PAPERS

15 Report of the Independent Remuneration Panel on Members’ Allowances dated October 2003.

The Local Authorities (Members Allowances) (England) Regulations 2001, No 1280

The Local Authorities (Members Allowances) (England) Regulations 2003, No 1021

ADDITIONAL INFORMATION

Contact Point : Gareth Hughes, ( 823604

PAUL WILKINSON

Chief Financial Officer

SHIRLEY SMART

Leader of the Council

Appendix A

Summary of Remuneration Panel’s Recommendations

Table 1: Summary of Recommendations:

Post	Maximum No of SRAs Suggested[1]	Basic Allowance	Special Responsibility Allowance

Basic Allowance
All Members (48)		£7,500
Band One
Leader	1	£7,500	£18,750
Band Two
Deputy Leader	1	£7,500	£12,400
Band Three
Executive Members with a Portfolio	8	£7,500	£9,400
Band Four
Select Committee Chairmen	6	£7,500	£7,500
Health Scrutiny Committee	1	£7,500	£7,500
Development Control Committee Chairman	1	£7,500	£7,500
Leader of Main Opposition Group	1	£7,500	£7,500
Council Chairman	1	£7,500	£7,500
Band Five
Licensing Committee Chairman	1	£7,500	£3,800
Council Vice Chairman	1	£7,500	£3,800
Band Six
Regulatory Committee Chairman	1	£7,500	£1,900
Deputy Chairman (see note 2)	1	£7,500	£1,900
Leaders of Other Opposition Groups (minimum of 4 Members)	0	£7,500	£1,900

Notes:

1. The above recommendations include a sum of £360,000 in respect of Basic Allowance and £192,750 in respect of current numbers SRA’s, a total sum of £552,750.

2. The Panel recommends that the SRA for the Deputy Chairman be discontinued with effect from the election of a new Council in 2005.

3. The Panel also recommends that the SRA for the Licensing Committee Chairman be increased to £7,500 for one year only commencing from the 2004 Council AGM.

4. The Panel recommend that no member can be in receipt of more than one SRA at any one time.

5. The recommended SRA for the Chairman of the Health Scrutiny Committee will need further consideration and approval once the role is fully established.

6. A summary of the Panel’s other recommendations is detailed on the following pages.

The Independent Remuneration Panel also recommends the following:

1. Pensions

That all Members who are eligible to join the Local Government Pension Scheme, be able to do so and that it should apply to both Basic Allowance and Special Responsibility Allowance.

2. Dependant Carer’s Allowance

That a Dependant Carer Allowance be introduced along the lines of that suggested by the Panel, with the necessary detail to be brought before members for approval.

3. Travel Allowances – In Authority

For in authority travel on approved duties, that members mileage rates be based on the approved Inland Revenue (AMAP) rates.

4. Subsistence – In Authority

That the current allowances as specified under Section 174 of the Local Government Act 1972 for attending approved duties be continued, indexed to the retail price index (RPI) and increased in April each year commencing April 2004.

5. Travel Allowance – Out of Authority

That the following rates should apply:

- car and van 40p per mile (Inland Revenue Rate and indexed to such)

for a four year period, with an additional 5p per mile for the carrying of one or more passengers.

- rail, train, air, taxi current rates and receipted fares

and hire car

- ferry economy class or reduced rate.

6. Accommodation and Subsistence – Out of Authority

a) That wherever possible Members organise their meals and accommodation through the Council which pre books and makes payment.

b) Current rates of allowance be continued, indexed to the RPI and increased in April each year commencing April 2004.

c) For meals that cannot be pre booked and that are in excess of current rates, that reasonable costs are reimbursed on production of receipts up to a limit of £20 per day.

7. Public Transport

That where members use public transport for approved duties, that costs be claimed at standard rates, and with receipts for all journeys costing £10 or more.

8. Co-optees Allowances

That the following allowances be introduced:

Standards Committee Members £250 per annum

Education and Community Development

Select Committee £400 per annum

9. Implementation and Indexation

- that Basic Allowance, SRA and Co-optees Allowance be implemented with effect from the Council AGM in April 2003.

- that the above allowances be indexed for a four year period to the annual percentage increase in salary applicable to local authority administrative staff and that this method of indexation be reviewed at the end of that period.

- that travel and subsistence costs be indexed to the Inland Revenue mileage rates, the retail price index and actual costs of disbursement as detailed.

10. Suspension of Allowances

That when a Member is suspended from acting as a Councillor by the Standards Committee or Adjudication Panel then the Standards Committee be empowered to suspend in whole or part the allowances payable to that member, for the period of the suspension

APPENDIX B

SCHEDULE II

MEMBERS ALLOWANCES

APPROVED DUTIES FOR PAYMENT OF TRAVEL AND SUBSISTANCE ALLOWANCES

Category A

Meetings of Full Council

Meetings of the Executive and of Committees and Sub-Committees (by Members of those bodies).

Meetings of working parties/groups, interviewing and selection panels (by Members of those bodies)

Site visits or inspections by the Executive or Committees and Sub-Committees.

Meetings of the Investment Panel.

Category B (where Members of at least two political groups have been invited)

Attendance at meetings as local Member where the invitation is sent in the name of the Chief Executive Officer and/or the Head of Legal and Democratic Services AND the invitation states the meeting is an approved duty.

Meetings of Committees, Sub-Committees, working parties/groups and panels by invitation of their Chairman.

Training and other development activities as and when approved by the Executive or the appropriate Committee.

Briefings for the Executive, Committees or Sub-Committees.

Category C

Conferences organised by other bodies (daytime only) when the approved under the scheme for the approval at conferences and seminars or the Executive or relevant Committee has approved attendance.

Category D

Meetings of outside bodies on which members have been appointed by the Council apart from the following exceptions/qualifications:

Isle of Wight Foster Care Association (annual general meeting only)

IsleCare (annual general meeting only)

OSEL Enterprises (annual general meeting only)

Local Government Association (including attendance at meetings as representative of the LGA – special attendance rates payable as set by the LGA).

Meetings with Government Departments and nationalised bodies when approved by the Executive, Committee or Sub-Committee (and where more than one political group is included in the delegation).

Category E

Inspection of Westminster House community home in accordance with rota of visits.

Category F

i. Attendance at Council offices by Members at the request of Directors/Heads of Service.

ii. Meetings with Government Departments and nationalised bodies as Portfolio Holder or when deputed by the Executive or a Committee.

iii. Pre-agenda meetings (Leader, Deputy Leader, Chairman and Vice-Chairman only).

iv. Briefings for the Leader and Deputy-Leader and for Chairman and Vice-Chairman.

v. Attendance at a meeting of the Executive, a Committee, Sub-Committee, Working party, Group or panel by elected Members who are not members of that body.

vi. Attendance of the Council’s representative at meetings of the Association of Garden Trusts.

[1] The maximum number of SRAs listed in the second column (24) is based on the presumption that there will be no other opposition group leader who will draw the recommended SRA at present. This is because no other opposition group currently has the minimum of four members that the Panel recommends be reached before this SRA is paid. However, if other opposition groups do reach four members through political defections and/or by elections then the Panel presumes that this SRA will come in to operation. That consequently affects the total sums payable.