The next item on our agenda is the motion to approve the Assembly Commission’s budget for 2017-18, and I call on Suzy Davies to move the motion on behalf of the Commission.

Motion NDM6139 Suzy Davies

To propose that the National Assembly for Wales in accordance with Standing Order 20.16:

Agrees the budget of the Assembly Commission for 2017-18, as specified in Table 1 of the ‘National Assembly for Wales Assembly Commission Budget 2017-18’, laid before the Assembly on 9 November 2016 and that it be incorporated in the Annual Budget Motion under Standing Order 20.26 (ii).

Motion moved.

Diolch, Lywydd, and I move the Commission’s budget motion for 2017-18 and ask that it be incorporated into the annual budget motion. This budget is for 2017-18, the second year of this fifth Assembly, and in the budget, the Commission is seeking £53.7 million, which is an increase of 1 per cent above inflation compared to this year. The budget is made up of three parts: £34.4 million for Commission services; £15.5 million for the remuneration board’s determination; and £3.8 million for ring-fenced, non-cash budgets—the accounting provision required by the Treasury for the Members’ pension scheme would be an example of that. This budget will ensure that the Commission can address the imminent challenges that face the Assembly. It properly supports the delivery of our strategic goals, which are: providing outstanding parliamentary support; engaging with the people of Wales and championing the Assembly; and using resources wisely, whilst being mindful of the wider public sector financial position.

The Commission exists to support the Assembly and Assembly Members, and we recognise that the pressures on Assembly Members are greater than ever. An already demanding range of work for committees and Plenary has been intensified by further constitutional change, tax-varying powers and managing the exit from the EU. The legislative, financial and scrutiny responsibilities of elected Members are unique and paramount, so it is critical that we maintain the delivery of excellent services to support Members as you discharge those responsibilities.

At the beginning of this week, the Llywydd sent a message to all Members setting out the Commission’s new plans to make our parliament fit for the future: giving young people a voice in our democracy, communicating effectively with the public and fulfilling our statutory duty to enable the Assembly to undertake its legislative and scrutiny work, including taking forward work to address the capacity of the Assembly. Wales needs good government, and good government can only be delivered when it is improved, scrutinised and held to account by an effective parliament. Should the Wales Bill pass, and the Assembly decide to exercise its new legislative powers in this area, we are determined to do what is necessary to equip our parliament with the capacity to deliver a strong and sustainable Welsh democracy. As you will appreciate, this work is only just beginning. As we move forward, the Commission will consider the budget implications and come back to the Assembly for your scrutiny at the appropriate point.

As for this budget year, the budget that you’re considering today, I would like to thank the Finance Committee for their scrutiny. As a publicly funded organisation, the Commission must consistently demonstrate that it uses its resources efficiently and effectively. The committee’s scrutiny is an important part of that, so we are making sure that we approach the process with the aim of being clear, open and transparent. The committee made four recommendations and we, as a Commission, have accepted all four. And of course we welcome—of course we welcome—the fact that the committee supports our request for resources for 2017-18. In our budget strategy, we also provided indicative figures for the remainder of this fifth Assembly, but due to the level of uncertainty in the years ahead, including the Commission’s plans that I mentioned earlier, we share the committee’s view that we should revisit these longer term figures in future years.

The committee had three other specific recommendations. Firstly, they’ve asked us to send them details of the outcomes from the annual capacity planning exercise so that they can see where additional staff resources will be deployed; secondly, we’ve agreed to provide details of how the Commission uses any underspend against the remuneration board’s determination; and, thirdly, in future budgets we will provide more detail about the investment in ICT services. Finally, I want to assure Members that we will continue to work in a way that delivers value for money and strive to be as efficient as possible whilst providing all Members with high-quality services to support you effectively in your roles.

I call on Simon Thomas to speak on behalf of the Finance Committee.

Thank you, Llywydd, and may I thank Suzy Davies, the Commissioner for budget and governance, for presenting the Commission’s draft budget? As outlined, the Finance Committee has discussed the budget and appreciated the way in which Suzy Davies and officials came before the committee and answered our questions in an open manner and, of course, provided more information promptly following the evidence session.

We made four recommendations and, as suggested, the four have been accepted and we’ve received the Commission’s response to all four as well. We’re very pleased with that process. I think that the Government could learn a great deal from that process in terms of responding so quickly to committee recommendations.

The Commission’s draft budget sets out the intended expenditure plans for 2017-18, as well as indicative plans and financial requirements through to the end of the fifth Assembly. Our first recommendation supported the overall request for resources for the year in question, and I’m pleased to say that the Finance Committee recommended that the Assembly endorse the Commission’s draft budget. However, whilst the indicative spending plans up to 2021 are useful, due to the current uncertainty surrounding key challenges—such as the timing of the Wales Bill and Brexit, which have already been mentioned—we came to the conclusion that it would be inappropriate for the committee to make any comment on the wider spending plans at present. So, our recommendation appertains to the next financial year.

The Commission has requested an additional investment of almost £1 million for staff resources. We’ve heard already from Suzy Davies why that is needed: there will be investment for supporting an additional two committees, additional legislation, responding to constitutional change and also implementing the Commission’s priorities. But, there was a lack of detail in the draft budget on where this significant investment in staff would be made, so we did request additional information on how the money would be allocated following the Commission’s consideration of its capacity plans. We are pleased that the Commission committed to writing to us with the outcome of that in due course. Of course, Members will have received a letter from the Presiding Officer and the Commission since the tabling of the report as regards the work that’s being undertaken on the expansion of committee capacity, and so on, in the Assembly.

As has been the case in the previous years, the Commission is seeking the maximum amount of funding required for the remuneration board’s determination on Members’ pay and allowances in order to meet Members’ full entitlements. This was, of course, the only aspect of this budget on which there was any kind of dispute in the Assembly last year. Neither the Commission nor the Finance Committee are responsible for the remuneration board; they are responsible for the funding that is allocated for the pay and allowances of Members. Recognising that this approach may result in un-accessed funds, we agreed with the fourth Assembly’s Finance Committee and the Public Accounts Committee that we should have greater clarity on the use of this surplus allocation.

We are not talking about insignificant amounts here. The Commission’s accounts last year show an underspend of over £1 million. So, in order to avoid the possibility that this is some kind of reserve account that is used without it being obvious exactly how it will be spent, our third recommendation asked for updated information from the Commission towards the end of the financial year on this projected underspend and the way in which these surplus funds will be used at the end of the financial year. I’m pleased, once again, that the Commission agreed to provide this information in March 2017, and therefore we will note the full details of that expenditure in the annual report. I hope this will bring greater clarity to the way in which any reserve funding in the process will be used by the Commission.

Finally, we commend the Commission on the success of its ICT transition programme. It’s true to say that I am speaking a day after a number of us were without our e-mail for a day, but it has been successful when you think of the substantial financial saving that has been made by becoming more independent as regards ICT in the Assembly. We are grateful for the additional information on expenditure supplied by the Commission, but another of our recommendations was that future budgets should contain detailed costings associated with ICT investment projects. I therefore welcome the Commission’s commitment to include more information on this to include more information on this work over the ensuing years.

So, the Finance Committee and I are very happy to commend the commission’s budget for the financial year.

In the context of the commission’s responsibilities to use resources wisely, I just wondered whether you could elaborate a little bit on how much money we spend on the catering service, where we have a contract with Charlton House, and, in the context of the Well-being of Future Generations (Wales) Act 2015, and the Environment (Wales) Act 2016, whether there are any clauses in there to ensure that we reduce, reuse and recycle as far as possible.

Obviously, in the context of food waste, a third of all food gets thrown, and I’m afraid that in the catering industry it’s even more than that—57 per cent of food in the catering industry, which includes restaurants and cafes, gets thrown away before even touching anybody’s plate. So, I just wondered whether you are able to give me any details of what the tonnage of food waste is at the moment, or in the last available period, how that compares with the previous year, and whether there’s anything in the contract to encourage the caterer to focus even more on this issue.

I call on Suzy Davies to respond to the debate.

Diolch yn fawr. Thank you very much, Simon Thomas and Jenny Rathbone. I’ll start with Jenny Rathbone’s question, if I may. What I can’t give you off the top of my head is the specific amount that we spend on the contract. It is actually in the report, which, of course, I haven’t brought with me. But I can certainly make sure that you get a note on that immediately.

In terms of the food waste question that you asked, obviously, you’re quite right, in terms of using resources wisely, there’s an obligation on the commission to ensure that we do that. And, on the data that I’ve got to date, at the moment, as of 1 April this year, a total of 7 tonnes of food waste has been recorded, compared to the total for the previous year of 12.5 tonnes. But, of course, you’ll accept that we haven’t got the full year’s details yet. But, just extrapolating those figures, they’re actually going to be broadly similar. So, I’m grateful to you for raising the concern with this.

Of course, part of this is out of the control of the commission, or any of its staff, because of the way that organisations coming in here order their buffets and so forth, and we have to rely on their details in order to tell us how many people will need food, and, if fewer people come, there’s precious little we can do about that. But we’ll always be grateful as the commission for ideas that actually help us reduce food waste. So, please, don’t hesitate to contact us about that if you have something specific you’d like to tell us.

I’d like to thank the Finance Committee again for the careful consideration of the commission’s budget and support of plans. As I said in my opening remarks, we will be accepting all your recommendations, and further details will be provided to the committee as they arise; you won’t have to wait for the annual report.

And, in terms of the remuneration board, obviously, you’ve explained that that’s outside the commission’s direct control, but, as the Finance Committee is aware, they are able to offer recommendations on how part of the underspend of a given year can be directed.

I’m sure that Members will also join me in thanking our chief accounting officer, who’s overseen the complicated procedure of budget preparation and delivery, through years of considerable change for the Assembly. Claire Clancy is, of course, the Assembly’s Chief Executive and Clerk as well, and, as this is likely to be the last annual budget that comes through your hands, Claire, I hope you won’t mind me taking this opportunity, on behalf of commissioners, past and present, to acknowledge the supreme effort and success you’ve brought to the role, and for the insurance and confidence that you’ve given the commission as well, and the Assembly as a whole. I think we have enjoyed that as a result.

I think the importance of the work of the commission has been recognised in the two contributions made today. The greatest challenge for the commission ought to be to ensure that the Assembly, charged as it is with this greater responsibility, but within the constraints of being the UK’s smallest legislature—I don’t think we should forget that—is properly equipped to do its job. Our aim is to set and maintain high standards during a time of close public scrutiny and to enhance our international reputation as an effective, open, world-class parliamentary institution.

So, on behalf of the Llywydd and my fellow commissioners, I assure you that we’re doing all we can to use the resources provided by this budget to ensure that we meet those challenges in accordance with our strategic goals, and I commend the budget to Members. Thank you.

The proposal is to agree the motion. Does any Member object? Therefore, the motion is agreed in accordance with Standing Order 12.36.

Motion agreed in accordance with Standing Order 12.36.