03 June 2005
Scottish Finance Minister Tom McCabe has demanded immediate assurances from Inverclyde Council that it will improve its performance following a damning report this week by the Accounts Commission.
McCabe said the council's performance was 'completely unacceptable' and that he would be visiting the Greenock-based authority to seek details on the action it is proposing to take.
'The council has clearly not delivered across all areas in the period covered by the report – that is obviously a grave concern and a major disappointment,' he said.
Council leader Alan Blair said he saw no need to sack any senior managers. 'A knee-jerk reaction to sack people is not helpful,' he said.
Chief executive Robert Cleary said the report highlighted many examples of good working practices and areas where progress had been made.
The commission might hold a hearing if the council does not provide a satisfactory response by October. It has powers to recommend that Scottish Office ministers intervene to take over the management of the council.
The newly formed Local Government Improvement Service, with a support group that includes political leaders and chief executives from other councils and from the Convention of Scottish Local Authorities, will lead a recovery group to act on the commission's recommendations.
Cosla chief executive Rory Mair said the whole local government community wanted to support Inverclyde.
The 50-page report, which has been widely leaked, discloses 'extensive and fundamental weaknesses in leadership and direction by both elected members and senior management'.
The severity of the criticism is thought to be unprecedented in Scottish local government. The deputy chair of the Accounts Commission, Isabelle Low, said it was the most critical Best Value audit report yet.
It refers to a pattern of poor performance and concludes that the council will not be able to deliver for the people of Inverclyde without urgent and major remedial action.
The report also says that annual financial statements for the five years between 1996/97 and 2000/01 were heavily qualified, and the council had been subject to four statutory reports.
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