ADVANCING LOCAL VOLUNTARY ACTION

Ashton House

1a Gatefield Street

Crewe

Cheshire

CW1 2JP

Tel/Fax 01270 211545

Registered Charity No. 506632

It is beneficial for both the voluntary sector and local government to have close and properly conducted relationships. Such relationships have often been built up over many years and involve a high degree of mutual respect and effective partnership.

 

Local authority members and officers often serve on or attend the boards of voluntary organisations This is usually natural and healthy. It reflects the interests of the local authorities in the work of voluntary organisations. It also reflects the aim of many voluntary organisations for their work to relate to the wider responsibilities of local authorities. Sometimes such involvement also indicates a long standing interest in a particular issue or cause which may predate the board member becoming a councillor or an officer of a local authority.

 

In proposing this code neither NCVO nor the LGA is advocating that local authority members and/or officers should serve on the boards of voluntary organisations. Indeed, in some circumstances, particularly where there are contractual relationships between the parties, this might not be appropriate. However, in many cases it has become custom and practice often over many years for members and/or officers to serve on such boards. In these circumstances NCVO and the LGA recommend that the relationship should be reviewed to determine the most suitable arrangement. Where membership of the governing body is judged to be right the recommendations for written agreements between the parties should be followed.

 

There are increasing calls for good governance in the public, voluntary and private sectors. This requires greater clarity about the relationships between local authorities and voluntary organisations. A written agreement setting out the roles, relationships and responsibilities of local authority members and officers who serve on the boards of voluntary organisations would be a significant step towards good governance. The several different legal forms which are adopted by voluntary organisations have implications for the roles, responsibilities and potential liabilities of board members. It is highly appropriate for relationships to be examined afresh in areas where local government structures have been re-organised because of the likely changes in personnel on the local authority side.

 

Evidence on these matters was submitted to the Committee on Standards in Public Life (the Nolan Committee) during its inquiry into aspects of the conduct of local government. In its report the Committee recommends "a radical change in the ethical framework within which local government operates" and proposes "a clear code of conduct for councillors developed by each individual council within a framework approved by Parliament". This code is a step towards this objective .

 

For the purpose of this paper, the word board is used to include the governing body of a voluntary organisation which might otherwise be known as the Management Committee, Board of Trustees or Board of Directors, and the phrase voluntary organisation is used to include all types of charity.

 

Third Report of the Committee on Standards in Public Life 'Standards of Conduct in Local Government in England, Scotland, and Wales', Volume 1 CM 3702-1 July 1997.

 

Complex Relationships

There is sometimes an assumption that the primary relationship between local authorities and voluntary organisations is that of giver and receiver of public funds. The reality is much more diverse. In fact they have developed a complex and multifaceted pattern of relationships which depend on different histories and functions. These include strategic partner; advocate for special needs groups; representative of carer and user groups; membership of emergency planning committees; grant aid; service provider; contractor; membership of specialist advisory groups on subcommittees; colleagues in development and regeneration initiatives; developing and managing housing; managers of community buildings owned by local authorities. It is not unusual for a single voluntary organisation to fulfil several of these relationships with a single local authority. Also, large voluntary organisations often work with many separate local authorities.

 

Potential Difficulties for Both Parties

While the relationship between many local authority members and officers with the other members of voluntary organisations' boards is generally satisfactory, there can be difficulties for both sides. These usually stem from a lack of clarity about the role, the possibility of conflicts of interest, disputes about funding and contractual terms when a local authority is also purchasing services and tensions when a voluntary organisation conducts campaigns about a subject with which the local authority has interests or responsibilities. There are also problems where a local authority member or officer is formally present as an observer at board meetings but is thought to exercise considerable influence over policy and management decisions of the voluntary organisations.

 

These difficulties are not one sided. Some voluntary organisations expect a local authority

member or officer to serve the interests of the organisation above all other interests and assume that this person will act as an advocate on its behalf at meetings of the Council. Members clearly have an interest in such a voluntary organisation but this cannot be a pecuniary interest as board members cannot receive payment. Must this be declared in meetings of the Council or Committees? Will such interests disqualify the member from speaking and/or voting on a subject which it is reasonable to assume they have greater expertise than their peers?

 

Note: The boxes shown throughout the text are not intended to form part of the main code but help to illustrate the rationale and importance of the Code, where this does not involve local authority representatives serving on the boards of voluntary organisations

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