First rung of the ladder to taming the dragon

THERE has been something of a circus feel to the reaction to the Wales Audit Office report.

Or maybe it's like a hot potato being thrown around that no one wants to touch for too long.

Or perhaps a sketch from the Chuckle Brothers as they try to manoeuvre a ladder – 'to you, to me...'.

What has become apparent is that the Public Accounts Committee, which commissioned what could prove to be a keystone report in the evolution of the States, should have been bolder from the start.

Or that's certainly the whisper in the corridors from those who feel it should have taken the report to its logical conclusion from the outset.

When the report was released, PAC said it had not gone as far as asking for recommendations because that would be stepping on the Policy Council's toes.

Subsequent reactions appear to defy that view, because ministers seem content for the PAC to take it forward.

So what should have been released in September has waited until November to even get under way.

In between, the report has been handed from PAC to the Policy Council and now back again.

The committee faced a hostile reception even when it announced the corporate governance investigation would take place and that may have been its steer in not going for recommendations straightaway.

For the ministers, the hostile reaction to a decision not to want it debated but used as a 'benchmark to measure the pace of change against' may have helped them make their minds up to pass it back again. That and a growing workload as a result of the redrawing of the tax strategy.

When the Policy Council voted by a majority to effectively park the report because it said the fundamental spending review and States Strategic Plan would answer the criticisms, PAC was happy with the response.

At the time it would not have seen either of those reports so had to take the council's word at face value.

But those documents were not what it expected, and obviously did not answer all the questions raised.

PAC forced the issue with a proposed amendment to the Strategic Plan for an independent commission to be set up to make recommendations.

This sent alarm bells ringing all over the States as deputies wedded to consensus government warned of 'Harwood Two'.

It was the catalyst for the council to give the green light to PAC to move on.

How much of this was procedural and how much political manoeuvring we do not know. What we do know is that months have been wasted.

And who suffers?

Well, given that the WAO said the current arrangements did not deliver value for money for taxpayers, any delay in addressing this means that every islander suffers.

Admittedly, since the report was released there have been some big steps taken.

Work is already under way on achieving the easy-win savings identified in the fundamental spending review.

Treasury now has on the table mandatory rules and guidelines for all departments on accounting and financial procedures.

But if this was enough you would have thought the PAC – as the States financial watchdog – and the island's business community that takes such an active interest in these matters would be happy.

But they clearly are not.

The PAC and the Scrutiny Committee working together to take the report to recommendations is still on the table.

Scrutiny chairman Barry Brehaut was at pains last week to stress that an instruction to take the report forward was not needed from the Policy Council, just reinforcing the thought that PAC should have been more confident.

What is key now is the constraints imposed on the body chosen to take it forward, and it would come as no surprise if the WAO was chosen.

Will it have to work within the constraints of utilising the current consensus model, or will the straitjacket be taken off and all options left open?

* DEPUTY Peter Gillson's request to the Policy Council for the WAO to come back to explain its findings in depth to deputies, to clear up different interpretations, has now been passed to the PAC. It is expected to consider the suggestion this week.