Binning Bad News: Health Minister Edwina Hart 'withheld NHS report'

Welsh Liberal Democrat leader Kirsty Williams produced the document in the Senedd

Health Minister Edwina Hart has been accused of withholding a consultants' report which criticises the Welsh Assembly government's NHS leadership.

Welsh Liberal Democrat leader Kirsty Williams made the accusation in the Senedd, producing a McKinsey document.

Mrs Hart had previously said there was "no formal document for scrutiny".

The assembly government said Mrs Hart misled no-one, there was no McKinsey report, and the document was an example of "numerous inputs and analysis".

The consultants' conclusions were made public by Welsh Liberal Democrat leader Kirsty Williams during First Minister's Questions.

She asked First Minister Carwyn Jones how he explained "the existence of this report, which I have here, commissioned by his health minister, written by McKinsey and company".

She said the report described the assembly government's strategic objectives as 'too numerous and are not prioritised so that none or the wrong objectives are implemented'."

Ms Williams said the health minister had previously stated there was no McKinsey report and accused her of having "misled" AMs and the people of Wales by not publishing the "damning" report.

Mr Jones asked Ms Williams to write to him if she had any complaint about earlier statements given by the health minister. 'Five-year plan'

In a later statement, a spokesman for the Welsh Assembly Government said: "The (health) minister has not misled anyone. There is no McKinsey report. "

Edwina Hart did not mislead anyone, says the assembly government

The spokesman said the document produced by Ms Williams was "one such example" of "numerous inputs and analysis" which formed part of a five-year plan for the NHS.

He added: "The minister has been transparent throughout the whole process."

The McKinsey document made public by the Welsh Liberal Democrats identified criticisms of the way strategies have been implemented in the Welsh health service.

It said: "Our discussions have highlighted several reasons why strategy implementations have fallen short in Wales."

It noted:

• strategic objectives are too numerous and not prioritised, so none or the wrong ones are implemented
• a gap between policy leads and operational delivery
• strategic objectives are politically unviable
• implementation lacks accountability
• initiatives are financially unaffordable
• lack of capability to deliver
  

The document also made a number of recommendations to make savings. These included:

• prevent interventions of limited clinical value
• transfer cost of non-essential items items to patients (e.g nicotine patches)
• shut elective care over Christmas period
• require non-clinical nursing staff to cover shifts
• reduce staffing levels e.g overtime
• freeze pay spend (in certain areas).

Analysis by Vaughan Roderick Welsh Affairs Editor

The row that's erupted over the McKinsey analysis of the Welsh health service is basically a battle of semantics.

For the Welsh Liberal Democrat leader Kirsty Williams, it was an open and shut case. The health minister had denied the existence of a report by the management consultants in two written answers to AMs earlier this year.

Her industrious staff then unearthed a 60-page document written by McKinsey, which she flourished theatrically in front of First Minister Carwyn Jones.

The assembly government's defence is clear and specific. It is not a report, merely a document which was part of a much wider five year framework for the NHS as a whole.

In a sense, you pays your money and you takes your choice.

But document or report, Mr Jones looked uncomfortable, and it's an early political hit for the Lib Dem leader on the first day of the new term.

'Streamlining' reorganisation = reward for Assembly Government's Civil Servants

Serious questions are being asked today about a shake-up of senior civil servants within the Assembly Government that has led to more of them earning above £120,000.

Seven “director general” posts were created last year in a streamlining move aimed at cutting overall costs. But critics are unconvinced that the new arrangements are appropriate.

Concerns have also been raised about “back-up” appointments that risk eating into savings made as a result of the reorganisation.

It is understood, for example, that when Andrew Davies was Finance Minister, he resisted a request from Emyr Roberts – Director General, Public Services and Local Government Delivery – to appoint a Director of Public Services Delivery at a pay grade immediately below his own. We have now confirmed such an appointment is being made.

Meanwhile, concerns have also been raised about the general competence of civil servants.

A well-placed source said: “I have real worries about whether many of the senior civil servants we have in Wales are up to coping with primary lawmaking powers.

“It has been difficult to persuade people to go on attachment to Whitehall departments to broaden their experience. Imagine the value of spending some time working in the Treasury, for example.”

Professor Brian Morgan, of the Creative Leadership and Enterprise Centre at UWIC’s Cardiff School of Management, said: “It used to be the case that government departments had a permanent secretary with two deputy secretaries beneath them. that is obviously no longer enough for the Welsh Assembly Government.

“Now there are effectively seven deputy secretaries, all on salaries of over £120,000. In Whitehall terms, the Assembly is a small department and it makes no sense to have so many chiefs.”

Last November, the Permanent Secretary, Dame Gill Morgan, told the Institute of Welsh Affairs in an interview that she had reorganised management structure so senior civil servants working for the Assembly could communicate on equal terms with their counterparts in Whitehall departments.

Previously, there had been 16 executive members of a management board, although in addition to the Permanent Secretary only one had been designated a senior director.

Prof Morgan said: “This idea that you need to look people in the eye from a position of equal status and inflated salary is absolutely ridiculous. You gain respect by the strength of what you are saying and how you say it, not because of the status you hold. If you have to rely on some artificial status, it suggests you are not up to the job you are doing.

“The status argument can be taken further. If each director general is responsible on average for 20 senior civil servants, and they meet someone on the same pay grade in Whitehall who has 55 senior civil servants answerable to them, they are going to want more people in their empire.”
Prof Morgan said creating such a large number of directors general was a variation on Parkinson’s Law – a satirical creation which states that work expands so as to fill the time available for its completion.

“Having a top-heavy structure like this must have an impact on morale lower down,” he said.
Asked whether he thought senior civil servants in Wales were up to running an administration with primary lawmaking powers, Prof Morgan said: “It seems to me that civil servants who have come up through the Welsh Office have not had any experience anywhere else. Often they’ve relied on Buggins’ turn for promotion. I don’t want to state categorically that they’re not up to dealing with primary powers. We will have to see.”

Professor Kevin Morgan of Cardiff University, who chaired the Yes For Wales referendum campaign in 1997, said: “There is unprecedented pressure on the public purse, with what has been referred to as two Parliaments of pain ahead of us.

“The biggest challenge of all is how to achieve sustainability and fairness in the face of a decade of austerity.

“It is quite clear there is a need in Wales for us to fully acknowledge the extent to which we have screwed up in terms of costs and structures in the public sector.

“There is really deep disquiet about the scale of local government, with 22 councils, and how we then copied that with 22 local health boards. When that reorganisation took place, chief executives and finance directors were appointed, but when the number of health boards came back down to eight, they were allowed to keep their jobs.

“For ordinary people in Wales – and I count myself among them – what has happened beggars belief. We have to get things right in the public sector.”

On the question of whether senior civil servants are up to handling primary lawmaking powers, Prof Morgan said: “Hope springs eternal. It will certainly make more exacting demands on the current structure of the Assembly Government. I’m not sure people have really thought about this in the detail we should.

“Ultimately, the proof of the pudding will be in the eating.”

A spokesman for the Permanent Secretary said: “The number of directors has decreased by over 25% since the restructuring of the senior Civil Service last year. This reduction has achieved savings of over £500,000 and reflects our commitment to a structured reduction in the number of senior civil servant posts over time.

“We do intend to appoint a Director for Public Service Improvement as part of a review of the Public Services and Performance department. This position will ensure we continue to deliver the Government’s ambitious public service improvement agenda, and is particularly important given the current financial pressures facing the public sector. The creation of this position will be accompanied by a reduction of seven senior Civil Service posts as part of the departmental review. This reduction represents a further net saving to the Assembly Government of just under £100,000.

“As a dynamic organisation, there will inevitably be further internal changes as we continue to reflect and deliver government commitments. Any appointment has to be justified by a comprehensive business case, and is fully considered by the independently chaired remuneration committee.

“Our skills strategy has been rated third of all UK government departments, and we are confident that we have the skills, capability and capacity to fully support ministers in delivering their commitments to the people of Wales.”

All it takes is a picket fence to hold up a not-so-rosy Government of Wales

An assembly debate is due to go ahead in the Senedd building later - in the absence of both government parties and has left this photograph as a lasting image of Welsh Assembly Government, and sadly casts a shadow over Welsh politics and devolved government in the UK.

First Minister Carwyn Jones said Labour and Plaid members "would be very concerned" about crossing picket lines of striking PCS union members.

The decision not to attend has been criticised as "silly posturing".

The Tories called it "absurd" and will debate a motion with the Lib Dems that the assembly government's programme is not delivering for Wales.

All assembly government business was moved to Tuesday's plenary session.

Civil and public servants across Wales plan to walk out for a third day of strike action on Wednesday in an ongoing dispute over cuts to redundancy terms.

Labour and Plaid refused to cross the picket line:

The strike, called by the Public and Commercial Services union (PCS), follows a two day strike earlier in March which led to a plenary meeting being postponed. It will again involve jobcentre staff, tax workers, courts staff, driving examiners and Welsh Assembly Government staff among others.

First Minister Mr Jones said:

The whole Labour group and indeed the Plaid Cymru group... would be very concerned about crossing a picket line.

Speaking as far as the Labour party is concerned, its something that is ingrained in party thinking, that you don't cross a picket line.

A Plaid Cymru spokesperson said Plaid's AMs supported the right of the PCS union to withdraw labour during this dispute and would not be crossing their picket lines.

He said the Plaid group would write to Gordon Brown's UK government urging an immediate return to negotiations with the union.

'One Wales' debate

In the assembly government's absence Conservative and Liberal Democrats will debate a wide-ranging motion that the Labour-Plaid administration's 'One Wales' agreement "is not delivering for the people of Wales."

Welsh Conservative Leader Nick Bourne criticised the first minister's stance, accusing him of "silly posturing", and said for his group it would be "business as usual".

He's pushed himself into a ridiculous corner... it's absurd. It looks like he's afraid of coming in as first minister...

We weren't elected to start skulking around the Bay carrying out business from cafes. I think it's farcical but I think they're making themselves look silly and if they want to do that it's up to them.

Labour and Plaid members aren't expected to attend the Weds March 24th plenary session.
Welsh Liberal Democrat leader Kirsty Williams called for all Labour and Plaid members who refuse to cross a picket line to disclose whether they have asked the fees office to deduct sums from their pay as a result.

It is easy for Labour and Plaid Cymru AMs to cancel assembly business but people will rightly expect that as a matter of principle, if they refuse to cross the picket line to work, they should forgo part of their salary in proportion to the amount of time they spent not working, just like everyone else who was on strike.

An Own Goal for Labour

The Ashcroft saga looks like it will end up as an own goal for Labour.

There is nothing illegal about the whole story. Not only that, but Lord Ashcroft wasn't born with a silver spoon in his mouth (sorry, socialists), as everyone knows he's a self-made man, and one of the success stories of the old Grammar School System.

What will come as a great shock for Labour luvvies is that he also pays tax on his financial and private affairs in the UK, making him a UK taxpayer.

In a nutshell, despite the media spin and fake outrage from Labour Ministers and supporters, it seems that the trustworthy UK public have worked out that it's a simple smear campaign, orchestrated (if somewhat slightly out of tune) by Brown's backstairs department.

This is going to end up an own goal for Labour as it draws attention to Labour's Non-Dom supporters.

Since 2001, Ashcroft has given £5,160,915 to the Tories. Mittal, Cohen and Paul all Non-Doms have given Labour £6,734,250. Paul funded at least one of Brown's election campaigns. Between 2001 -2008 Lord Paul sat and attended the House of Lords 1047 times and claimed £281,263 in expenses. Please tell me if I'm wrong, but Lord Paul has left the Government over Expense issues. Over the same period 2001 - 2008 Lord Ashcroft attended the House 285 times and claimed no expenses.

I'm saying nothing more, but make your own mind up about a so-called scandal, and where it lies.

Morgan's legacy leaves recurring hangovers

Rhodri Morgan only left a short while ago, and now we find that civil service sleaze lingers on to affect Carwyn Jones' administration. WAG staffing has always managed to raise the odd eyebrow in the media, but when is someone going to take control of a problem that has been in the making since Rhodri's bonfire, nearly four years ago?

Welsh Assembly Government staff relocating to the Llandudno Junction base are to be given thousands of pounds of tax payers’ money in “disruption allowances”.

Staff who were employed by WAG on February 23 2005 and are in a post transferring to the new office will be eligible for the allowance, which ranges from £750 to £2,500.

Clwyd West MP David Jones has described the move as astonishing and is seeking an explanation from the Assembly.

The allowance is based on the distance of a WAG employee's current office from the new office in Llandudno Junction.

Six hundred staff are to be relocated to the new Assembly office, which is set to open this summer. They will be transferring from Colwyn Bay, St Asaph, Mold, Caernarfon and Cardiff.


Meanwhile, A source told the Western Mail: “All civil servants can claim this money, even if they live nearer the new office. For example, staff who work in St Asaph, but live in Colwyn Bay, Penrhyn Bay, Llandudno, Conwy or even Llandudno Junction itself, will be paid a £2,500 lump sum because they will no longer have to travel to St Asaph. It’s crazy.

“The other crazy thing is that the union has negotiated that it is 20 miles from St Asaph to Llandudno Junction. Why would they do this when it’s only 16 miles? The reason is that if the distance is only 16 miles, the civil servants will only get £1,500, but as they’ve agreed a figure of 20 miles it goes up to £2,500.”

The source added: “They’ve also agreed that Colwyn Bay is eight miles away from Llandudno Junction, so the staff there can claim extra allowances – it’s four miles at the most.

“This is public money. It may be within the rules – just like the MPs – but when we are coming out of the worst recession in living memory, with people who have lost their jobs being forced to travel miles extra for less pay and tough decisions having to be made in Wales due to the cut in funding from Whitehall, it’s sickening to think that hard working taxpayers are paying for this.”

A WAG spokeswoman explained: “The package for staff relocating to the new office in Llandudno Junction has been put together to recognise the impact the relocation will have on staff and their families.

“The allowance will vary depending on which office staff are currently based at.

“Allowances begin at £750 depending on the location of the office and up to £2,500 for offices further away in the North Wales region.”

The spokeswoman said the figure for the number of staff eligible for the allowance is not yet available.

An employee will need to pay the allowance back if they are no longer based at the new office within two years of it opening.

MP David Jones commented: “This is extraordinary news, and the Welsh Assembly Government has some serious explaining to do.

“In fact, some employees who presently work at St Asaph may even find it quicker and more convenient to commute to Llandudno Junction, yet they will still receive a minimum payment of £750.

“At such a difficult economic time, this is sending out the signal that WAG just doesn’t care about spending tax payers’ money prudently.

“Many people are feeling the pinch in the depths of this cold winter and will be rightly appalled.”
He added: “I will be contacting my colleagues in the Welsh Assembly and asking them to call WAG to account for this astonishing decision.”

Llandudno Junction councillor Mike Priestley was also shocked by the move.

He said: “If that’s their policy then it should be reviewed immediately.

“I can understand if employees are given a fuel allowance for the first few months if they have to travel longer distances, but giving out lump sums even if they live next door to the new office is ridiculous.

“The employees will leave the offices they are currently working in on a Friday and start at the Junction on the Monday. Where is the disruption in that?

“We are being told by the Government that we are all going to have to tighten our purse strings for the next decade.

“The Welsh Assembly should practice what it is preaching.”

Government civil servants pile on the expenses

While MPs are experiencing a further grilling over expenses, we find ourselves revisiting a former blog post regarding another development over an old WAG civil servant expenses scandal.

An investigation by expert auditors KPMG found 11% of expenses – totalling more than £290,000 – by staff at International Business Wales staff may have been in breach of policy.

The experts uncovered unusual expenses at the body, which promotes Wales as a destination for businesses.

They included:

• the purchase of a first class flight (£6,125.63);
• a monthly mobile phone bill of £1,946.83;
• the electricity bill for a residential address (£345.22);
• AA membership (£203.54);
• furniture items including vases, candles and towels (£380.06);
• an item of “personal care” (£45.30).
• This is in addition to £150 spent on football kits and £553.87 paid for children’s textbooks in the 12 months to March.
• A further £3,394.44 was spent on overseas hospitality for a Wales vs South Africa rugby match.
  

The follow-up investigation into the 781 transactions where there may have been breaches of policy will report by Christmas.

It is not expected that the police will be called in, but disciplinary action is likely and staff may be asked to repay expenditure.

The expenses revelations came on the same day that a major report by independent inward investment expert Glenn Massey strongly criticised the performance of IBW and its forerunner, the Welsh Development Agency, describing its record as “at best mixed”.

Permanent Secretary Dame Gillian Morgan said the Assembly Government would work “urgently” to address the issues raised in the report.

She also acknowledged the expenses investigation had an impact on staff morale.

The KPMG investigation team were not able to decide whether a further 817 transactions – worth more than £280,000 – were within the rules, due to vague policy or a lack of documentation.

The Permanent Secretary pledged to address ambiguities in expenses policies. Dame Gillian said the international wing of the Assembly Government was the area where the opportunity for misuse of expenses was highest.

It’s our highest risk area because people are travelling overseas, they work independently, and therefore if you were going to have things going wrong it’s
the sort of part of the organisation you would expect to have the biggest issues.

In short, not only was Rhodri Morgan lied to, but it appears that Gillian Morgan is knee-deep in a public money expenses scandal brought on by unscrupulous civil servants. Her quote "Arguing that it did not point to chronic failure in the organisation...This is not a sick part of the system. There is some stuff that needs doing and there are some further questions to be asked but it was not a report that made me have all the flesh falling off my bones and whatever." is a perfect example of someone not willing to face facts.

But Kirsty Williams, leader of the Welsh Liberal Democrats, said fears about the expense claims of IBW staff were well-founded.

In July we asked whether the huge amount of money being spent on expensive flights, top-class hotels and fine-dining was delivering a return for Welsh taxpayers,” she said.

The performance report confirms IBW’s failure to deliver adequate investment but the separate expenses report makes for astounding reading.

This report on the expenses of civil servants in IBW has proved our fears that there was a runaway culture of spending in the IBW, which Government was failing to monitor.

What we found most worrying about the expenses review is the amount of claims that have been made by IBW civil servants that are not part of the work that they do in promoting Wales as a destination for business.

The report shows that Government failed to implement effective policies, that policies on expenditure were not followed and that around 800 claims can still not be accounted for.

Together, the reports amount to a damning indictment of [Minister for Economy and Transport Ieuan Wyn Jones’] oversight of IBW.

We’re left wondering why this was allowed to happen for so long and what would have happened had we not raised our concerns earlier this year.

Two reports were commissioned into the assembly government-run International Business Wales (IBW) after a row over staff expenses which has led to further revelations.

Quote of the Week

Expenses probe will cost £129,000

A review, by auditors KPMG, followed revelations in July that officials flew first class and charged nearly £750,000 to corporate credit cards in a year.

Mr Bourne said he was "astonished" Mr Morgan was spending a "six figure sum" to "review spending in one of his own government departments".

This is typical of the assembly government - mounting an expensive investigation into why one of its own departments is spending so much.

Bonus* Bonanza Balls up

Just when politicians are having to bite the bullet over expenses, it seems that the tide has not turned in other parts of the Assembly. It appears that others are slow to catch on when it comes to the general mood of the public.

The Welsh assembly official overseeing substantial cuts in AMs' expenses received at least £15,000 extra pay in the last year, it has emerged.

Chief executive Claire Clancy's salary rose from a salary range of up to £125,000 to at least £140,000.

The assembly said it reflected a bonus from a previous year and, as Ms Clancy and the directors had given up their bonuses, her pay would fall next year.

The pay of another senior official also rose by at least £15,000 in 2008-09.

Assembly members agreed last month to make substantial cuts in their expenses, including scrapping interest payments on mortgages for second homes and linking their salaries to changes in average earnings.

According to the assembly's annual report, in the last financial year Ms Clancy's salary was between £140,000 and £145,000, compared to £120,000 to £125,000 in 2007-08.

An assembly spokesman said the higher figure included a deferred final bonus payment from the previous year, under different rules.

The spokesman said:

Because the bonuses have now stopped, the figures published in the accounts for the current financial year (2009/10) will show...the chief executive's actual income dropping during 2009-10 compared to 2008-09, from the salary range £140,000-145,000 to £135,000-140,000.

The report says the second highest-ranking official, chief operating officer Dianne Bevan, enjoyed a salary rise of between £5,000 and £15,000.

She was paid within a scale of £115,000 to £120,000 in 2008-09 compared to £105,000 to £110,000 in the previous year.

Her salary next year is likely to stay the same under the new rules.

* not technically a bonus, but a welcome 'bonus' all the same.

Civil servants 'lie' to Rhodri Morgan in expenses row

Following on from three earlier posts on developments in the civil service expenses scandal - It gets worse - Wales' First Minister, who also happens to be Minister responsible for staffing and civil service matters - has apologised after it emerged civil servants had taken first class flights despite his denial that this had ever taken place.

Rhodri Morgan had said the Liberal Democrat claim civil servants led "first class" and "jet set" lifestyles was "repugnant" and an "outright lie".

Mr Morgan was defending civil servants who promote Welsh business abroad after details of their spending emerged.

He has now written to Welsh Lib Dem leader Kirsty Williams to apologise.

On Monday, the Liberal Democrats, whose Freedom of Information request uncovered the figures, had accused the staff of International Business Wales (IBW) of enjoying lavish living at taxpayers' expense.

Ms Williams said: "Whilst we're in the middle of a recession it's disgusting to know that public officials are flying first class, staying in the most expensive hotels, eating in the best restaurants - all at the swipe of the Welsh credit card."

In an angry response the following morning, Mr Morgan told reporters: "I do find it repugnant that an allegation has been made that civil servants are using first class travel.
Mr Morgan went on to call the allegation "an outright lie".

But on Wednesday he wrote to Kirsty Williams saying he apologised for misleading her and the wider public.

He wrote:

...I stated on the clear and explicit advice from the relevant senior officials that no officials from IBW had flown first class. Today I have learned this is not the case.... I apologise for having misled you and the wider public. I need hardly say how disturbed I am by the latest information now to hand... I am instructing the permanent secretary to undertake an immediate and thorough investigation and audit of the IBW's expenditure and audit systems... This review will be led from outside the assembly government.

First class fib

He was speaking after evidence emerged that at least two IBW employees from the New York office took first class internal flights in the United States.

Leaked travel documents show Geraint Jones, head of the New York office, flew first class on Virgin America from New York to Los Angeles and back in February 2009.

An IBW corporate credit card was debited £1,302.99 four days before he departed.
The same card was debited £1,475.92 at the Hyatt Regency Hotel in Los Angeles a couple of days later.

In November 2008, Christopher Williams, IBW's Vice President for ICT took three first class internal flights with Virgin America.

It is understood assembly government officials in Cardiff sought a written guarantee from IBW on Tuesday morning that no first class flights had ever been booked, before Mr Morgan launched his attack on the Liberal Democrats on camera.
'Strong and personal'

Ms Williams had been furious about the First Minister's attack on her, which she said was "strong and personal".

Kirsty Williams and others welcome the investigation.

Whatever next? This man placed in charge of the review?