Northern
Ireland
Assembly,
Committee
on
Standards
and
Privileges: Review of Members’ Code
of Conduct
A Submission by:
The Chartered Institute of Public
Finance and Accountancy
May 2014
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the
professional body for people in public finance. CIPFA shows the way in public
finance globally, standing up for sound public financial management and good
governance around the world as the leading commentator on managing and
accounting for public money.
Further information about CIPFA can be obtained at www.cipfa.org
Any questions arising from this submission should be directed to:
Dr Ellie Roy
Colin Langford
Research Consultant
(Devolved Regions)
Principal Consultant
CIPFA
Tel: 07951 81 66 79
Email:
eleanor.roy@cipfa.org
Don Peebles
Head of CIPFA Scotland
CIPFA in Scotland
Tel: 0131 550 7543
Email: don.peebles@cipfa.org
CIPFA in Northern Ireland
Tel: 028 9026 1654
Email: colin.langford@cipfa.org
1. EXECUTIVE SUMMARY
1.1
CIPFA welcomes the Committee’s review of the Code of Conduct for Members, and
their consideration of the GRECO Fourth Round Evaluation report, 1 and Committee
on Standards in Public Life ‘s review of best practice in promoting good behaviour
in public life.2
1.2
CIPFA are strong advocates of good governance in the public sector and are
actively engaged in providing guidance and support in this regard.3
The
fundamental function of good governance in the public sector is to ensure that
intended outcomes are achieved whilst acting in the public interest at all times.
1.3
In considering the Code of Conduct, in the context of the Assembly’s overall
governance arrangements CIPFA suggests that:
1.4

The fundamental principle of acting in the public interest and acting with
integrity should be embedded within the culture of the Assembly and the
behaviour of Members/staff (para 2.24 and 3.6).

The code should be reinforced by positive leadership and consideration
given to how it will be communicated to best effect. Further guidance or
training may be beneficial in this respect (para 3.6).

There should be no compartmentalisation or overlap of the Code which
could lead to misinterpretation or confusion; particularly in relation to
applicability of the code to Ministers, in Chamber/Committee and to
Members’ staff (para 4.9).

Further guidance should be considered in relation to specific rules within
the code, including direction on where advice can be obtained if required
(para 5.6).
CIPFA further considers that the Code of Conduct, although a fundamental aspect
of good governance arrangements, should not be considered in isolation, but
rather as part of the Assembly’s overall governance framework (para 2.24).
GRECO, Fourth Evaluation Round: Corruption prevention in respect of Members of Parliament, judges and
prosecutors: Evaluation Report United Kingdom.
2
Committee on Standards in Public Life, Standards Matter, 2013.
3
Public Finance International, IFAC and CIPFA publish governance best practice, June 2013. Good Governance
in the Public Sector - Consultation Draft for an International Framework, June 2013
1
2. GOOD GOVERNANCE: ACTING IN THE PUBLIC INTEREST TO ACHIEVE
OUTCOMES
2.1
CIPFA are strong advocates of good governance in the public sector and are
actively engaged in providing guidance and support to drive improvement in this
regard. Currently, CIPFA are in the process of developing a Governance Mark of
Excellence or to enable organisations, via a process of rigorous assessment,
monitoring and evaluation to gain external recognition of their good governance
practices.4
2.2
CIPFA are also working together with the International Federation of Accountants
(IFAC) to develop International Good Practice Guidance: Good Governance in the
Public Sector.5 This framework aims to encourage better service delivery and
improved accountability by establishing a benchmark for aspects of good
governance in the public sector, and is intended to apply to all public sector
entities.
2.3
The framework is not intended to replace existing governance codes, but rather to
inform the updating and reviewing of existing codes, and to stimulate action
where such codes do not exist. It also provides a basis for the public to challenge
substandard governance in public sector entities.
2.4
Governance comprises the arrangements put in place to ensure that intended
outcomes for stakeholders are defined and achieved. The fundamental function of
good governance in the public sector is to ensure that entities achieve their
intended outcomes whilst acting in the public interest at all times.
2.5
The framework sets out seven core principles characterising this fundamental
function of good governance, as illustrated below.
Leading Governance Conference 2013 the Future for Boards, November 2013
Public Finance International, IFAC and CIPFA publish governance best practice, June 2013. Good Governance
in the Public Sector - Consultation Draft for an International Framework, June 2013
4
5
2.6
The public sector is generally responsible for using a significant proportion of
resources raised through taxation to provide services to citizens. Public sector
entities are accountable not only for how much they spend but also for the ways
they use the resources with which they have been entrusted. This includes
accountability for outputs, and for the outcomes they have achieved.
2.7
In addition, they have an overarching responsibility to serve the public interest in
adhering to the requirements of legislation and government policies. Public sector
entities are accountable to legislative bodies for the exercise of legitimate
authority in society. This makes it essential that the entire entity can demonstrate
the appropriateness of all its actions and has mechanisms in place that encourage
and enforce adherence to ethical values and the rule of law.
2.8
When considering the Code of Conduct for Members, principle A: behaving with
integrity, demonstrating strong commitment to ethical values and respecting the
rule of law is likely the most pertinent.
Principle A1: Behaving with integrity
2.9
Members of all forms of governing body should behave with integrity. The
Assembly should promote and embed a culture where acting in the public interest
at all times is the norm together with a continuing focus on achieving objectives.
It should do this by taking the lead in establishing - and living up to - specific
values for the Assembly and its staff.
2.10
These values should be communicated, understood, and shared. They should be
over and above minimum legal requirements and should build on established
principles for behaviour in public life, such as objectivity, selflessness, and
honesty.6 These principles reflect public expectations about the conduct and
behaviour of those who manage public service provision and spend public money.
2.11
The Assembly is a role model and it is, therefore, important that it keeps the
values at the forefront of its own thinking and behaviour and uses them to guide
its decision making and other actions (‘leads by example’). The values can also be
used to promote an ethical culture and collaboration throughout the Assembly
through a number of mechanisms. These include their definition and
communication through codes of conduct, frequent staff consultation and
communication, exemplary behaviour, training and performance assessment and
reward processes.
Principle A2: Demonstrating strong commitment to ethical values
2.12
Ethical values should permeate all aspects of a public sector entity’s operation, for
example the procurement of goods and services, the appointment of staff on
merit, performing job responsibilities properly and using public funds to benefit
the community. They should underlie the personal behaviour for Assembly
members and staff. It is the role of the governing body to ensure that these
ethical values are embedded throughout an entity
2.13
Having an effective code of conduct for Assembly members and for staff is one of
the key elements of good governance. Developing, reviewing, and communicating
a code that illustrates what the values mean in specific circumstances helps to
make visible:
(a) how the entity operates;
(b) how it embeds its core values, such as by reflecting values in
communications, processes, and behaviour; and
(c) how it relates to its key stakeholders.
2.14
Codes also help reassure stakeholders about the entity’s integrity and its
commitment to ethics. It is the governing body’s responsibility to ensure that the
code of conduct is understood, implemented, adhered to, and reviewed on a
regular basis to ensure it remains up to date
2.15
It may not always be easy to measure objectively factors affecting an entity’s
performance in leadership, ethics, and culture, or to identify ethical problems
before they manifest in organisational performance. However, it is important that
the governing bodies of entities seek to know, understand and maintain their
performance in these areas. Useful evaluative approaches to measure ethical
performance include staff surveys, performance appraisals, administrative
reviews, exit interviews, whistleblower arrangements and leadership selfassessments.
2.16
Stakeholders can also provide important feedback on how an entity is performing
in leadership, ethics, and culture. This can be solicited formally or be received
through comments and complaints. Complaints can form a vital part of feedback
and should be handled and resolved efficiently, effectively, and in a timely manner
so that lessons learned are used to improve the performance, both ethical and
operational, of the entity and its services.
6
The Nolan Principles, The Seven Principles of Public Life
Principle A3: Respecting the rule of law
2.17
Fair legal frameworks, enforced on an impartial basis, as well as an independent
judicial system assist in building societies where entities and individuals alike can
flourish. They do this by affording legal protection for rights and entitlements,
offering redress for those harmed, and guarding against corruption or other
crimes and unethical behaviour.
2.18
THe important legislative role of the Assembly demands a high standard of
conduct that prevents this role from being brought into disrepute. Adhering to the
rule of law also requires the Assembly to ensure that there are effective
mechanisms to deal with breaches of legal and regulatory provisions. Public sector
entities should as far as possible be subject to laws which are generally applicable
to the rest of the community to ensure equity
2.19
Public sector entity governing bodies and staff should, therefore, demonstrate a
strong commitment to the rule of law as well as complying with all relevant laws
and regulations. They should also strive to utilize their powers for the full benefit
of their communities and other stakeholders and to avoid any misuse of power or
corruption.
Reporting good governance
2.20
The Code of Conduct, although a fundamental aspect of governance
arrangements, should not be considered in isolation, but rather as part of the
Assembly’s overall governance framework.
2.21
It is essential that governance arrangements are not regarded merely as
bureaucracy, but foster sound decision making with effective processes to support
it. At the same time, they should not become onerous and effectively an industry
in themselves.
2.22
In CIPFA’s view, public bodies should be encouraged to test their governance
structures against a framework of good governance and to report publicly on an
annual basis on the extent to which they are living up to the framework and on
their planned actions for the future. In local government, for example, authorities
prepare and publish an annual governance statement in accordance with
Delivering Good Governance in Local Government Framework 7 setting out how
they have monitored the effectiveness of their governance arrangements in the
year and on any subsequent planned changes.
2.23
An effective governance framework should encourage leaders to focus more
systematically upon the sustainability of their organisations and the wider and
longer term implications and impacts of their actions and activities. As discussed
above, together the CIPFA/IFAC guidance being developed and the CIPFA
Governance Mark of Excellence offers a set of core principles for good governance
in public sector entities, supplemented by practical implementation guidance.
2.24
CIPFA recommends that:

7
The Code of Conduct should be considered as part of the Assembly’s
overall governance arrangements, rather than in isolation, and ensure
CIPFA and SOLACE, Delivering Good Governance in Local Government Framework, 2007


that it embeds the fundamental function of good governance, that
Members should act in the public interest at all times.
The Committee, in considering the code, should have regard to
International Good Practice Guidance: Good Governance in the Public
Sector, in particular the first principle: behaving with integrity,
demonstrating strong commitment to ethical values and respecting
the rule of law.
The Committee should consider developing a framework of good
governance within the Assembly, and publically reporting on
performance and achievements. CIPFA would be willing to provide
support in this regard.
3. PRINCIPLES OF CONDUCT AND ACTING IN CAPACITY AS A MEMBER
3.1
Members of all forms of governing body should behave with integrity, as set out in
principle A1. This should be the guiding force behind the overall scope of the
code, and coverage relating to ‘Acting in the capacity as a Member’ and ‘Members
private lives’.8 Although the Code does not cover activities of Members in their
private lives, it should be emphasised that the behaviour of Members in their
private lives may impact on the reputation and integrity of the Assembly, and
therefore the principle of integrity should be embedded as underlying the personal
behaviour of Members and staff.
3.2
This is reflected in the Code of Conduct for Members of the National Assembly for
Wales, which states that:
‘Assembly Members should at all times conduct themselves in a manner
which will tend to maintain and strengthen the public’s trust and
confidence in the integrity of the Assembly and refrain from any action
which would bring the Assembly, or its Members generally, into disrepute.’ 9
3.3
In relation to the ‘Principles of Conduct’, CIPFA welcomes the inclusion of the
Nolan principles, similar to the Codes of the other devolved regions,10 and notes
the Committee’s consideration of the relationship between principles and rules. 11
CIPFA considers that in conjunction with the interpretation or observation of rules,
Members and staff need to have the underlying principles at the forefront of their
thinking at all times (in order to avoid instances such as the expenses scandal).
3.4
It is worth noting that the Scottish Parliament’s Code of Conduct clearly sets out
the key principles underpinning the Code, then provides more detailed rules, as
well as details of how such rules will be enforced, and a separate volume of
guidance on the interpretation of the rules.12
3.5
The Committee’s paper consider what a Code requires in order to be effective, and
sanctions required for failure to comply with the code. 13 However, there appears
to be no consideration of how the code will be communicated, any training
provided to Members or staff in relation to the code, and how adherence will be
ensured. As discussed above, CIPFA considers that to be effective the code must
be reinforced by positive leadership and embedded in the culture. Thus, the
Assembly’s shared values incorporated within the code should be communicated,
understood, and shared. A culture based on these values can be fostered through
mechanisms such as communication, consultation, training and performance
assessment.
Committee on Standards and Privileges: Review of the Code of Conduct and Guide to the Rules Relating to the
Conduct of Members , Issues Paper (para 13-14 and 21).
9
National Assembly for Wales, Code of Conduct for Assembly Members
10
Scottish Parliament, Code of Conduct for Members of the Scottish Parliament and National Assembly for
Wales, Code of Conduct for Assembly Members
11
Committee on Standards and Privileges: Review of the Code of Conduct and Guide to the Rules Relating to
the Conduct of Members , Issues Paper (para 45)
12
Scottish Parliament, Code of Conduct for Members of the Scottish Parliament
8
Committee on Standards and Privileges: Review of the Code of Conduct and Guide to the Rules Relating to
the Conduct of Members , Issues Paper (para 44 and 139-144)
13
3.6
CIPFA recommends that:

The principle of integrity should be embedded as underlying the
personal behaviour of Members and staff.

The Committee considers providing further
interpretation of the rules within the Code.

The Committee consider how the code could be reinforced by positive
leadership, how it will be communicated to best effect and whether
any training for Members or staff could be beneficial in raising
awareness and adherence to the code.
guidance
on
the
4. APPLICABILITY OF THE CODE OF CONDUCT
4.1
CIPFA welcomes the fact that the Committee are considering the Ministerial Code
of Conduct,14 and agrees that all efforts should be made to ensure that there is no
overlap between this and the Code for Members.
4.2
As both codes will apply to Ministers, the Committee should ensure that in
wording the scope of the code in relation to Ministers there is no room for
confusion with a clear differentiation between the two. CIPFA considers that there
is a case for evaluating the two codes in tandem, to ensure both consistency and
clear lines of separation to leave no doubt as to potential overlaps.
4.3
In relation to the applicability of the code in the Chamber and in Committees, 15
although appreciating the distinctions in
powers between the Speaker and
Committee Chairs, CIPFA considers that the applicability of the code in some
circumstances but not others makes it potentially compartmentalised.
4.4
In the Scottish Parliament’s Code, there is a section on Conduct in the Chamber or
in Committee.16 Although this refers to the relevant Standing Orders, recognising
the different powers of Conveners and the Speaker, it clarifies that conduct must
be maintained within both environments, and thus embeds the underlying
principles of the code in both.
4.5
The code must emphasise the importance of consistently embedding the
underlying principles, in order that a strong commitment to ethical values is
demonstrated across the board and Members are committed to acting with
integrity at all times.
4.6
In relation to staff conduct,17 CIPFA agrees with the GRECO report that ‘the
conduct of staff should be judged against the standards expected of the
Members’.18 In this regard a code of conduct for both Members staff and
Commission staff would be appropriate, consistent with that applied to Members,
whilst providing for their respective roles. As discussed above, the Guidance on
Good Governance on the Public Sector, and the underlying principles, is applicable
to all public sector entities, and at all levels, and as such these principles should
be equally embedded in the behaviour and thinking of both Commission and
political staff.
4.7
The Scottish Parliament’s Code states that:
‘Members will be held responsible for the behaviour of their staff within the
Parliamentary complex and in their dealings with other members, other
members‘ staff, and Parliamentary staff.
Committee on Standards and Privileges: Review of the Code of Conduct and Guide to the Rules Relating to
the Conduct of Members , Issues Paper (para 17-20)
15
Committee on Standards and Privileges: Review of the Code of Conduct and Guide to the Rules Relating to
the Conduct of Members , Issues Paper (para 35-38)
16
Scottish Parliament, Code of Conduct for Members of the Scottish Parliament
17
Committee on Standards and Privileges: Review of the Code of Conduct and Guide to the Rules Relating to
the Conduct of Members , Issues Paper (para 107-112)
18
GRECO, Fourth Evaluation Round: Corruption prevention in respect of Members of Parliament, judges and
prosecutors: Evaluation Report United Kingdom
14
Members are responsible for ensuring that their staff are fully aware of and
understand the policies, rules and requirements that apply to the conduct
of personnel on the SPCB‘s premises.’19
4.8
However, this does not address the issue of staff conduct when not on the
Parliamentary estate, nor account for the possibility of a Member being unaware
of inappropriate conduct on the part of their staff.
Such issues could be
addressed by adopting a modified version of the code of conduct, specifically for
the staff of Members and the political parties.
4.9
CIPFA recommends that:




19
The Committee consult the Ministerial Code and ensure there is no
room for confusion or overlap between this and the Code for Members.
The Committee recommend that the Executive revisit the Ministerial
Code to ensure that there is consistency of the underlying principles
between the two Codes.
The Committee consider the compartmentalisation of the code
between Chamber and Committee functions, and how this may
undermine the consistent embedding of the underlying principles and
values.
Codes of Conduct consistent with that for the Members, should be
established for political and Commission staff to embed the principles
of good governance Assembly-wide.
Scottish Parliament, Code of Conduct for Members of the Scottish Parliament
5. OTHER SPECIFIC ISSUES
Conflicts of interest
5.1
Conflicts may arise between the personal interests of Members involved in making
decisions and the decisions that the governing body or staff need to make in the
public interest. To ensure continued integrity and openness and to avoid public
concern or loss of confidence, the Assembly should ensure that appropriate
policies are in place so that members and staff take decisions objectively and
steps are taken to avoid or deal with any conflicts of interest, whether actual or
perceived.
5.2
CIPFA agrees with the Committee that it is crucial that rules covering conflicts of
interest should be retained within the Code. 20 It is important to recognise that
such interests may be actual or perceived, and that Members should be able to
seek advice on this if unsure. It is also necessary to recognise that disclosure
promotes transparency and thus in such matters it is better to err on the side of
transparency when such decisions are taken.
5.3
The Committee may wish to note that in this regard, the Scottish Parliament’s
Code of Conduct contains a separate volume of guidance for the various sections
of the code, including where Members can seek further advice on specific issues. 21
Whistleblowing
5.4
As highlighted under principle A2, having arrangements for whistleblowing can be
an indicator of demonstrating a strong commitment to ethical values. From the
Committee’s paper this potentially important area does not appear to be covered
within the consideration of the code of conduct.
5.5
Whistleblowers can play an essential role in detecting mismanagement or
corruption, but this can involve high personal risk as they may face employment
difficulties or dismissal in doing so. Promotion of responsible whistleblowing and
adequate protection for whistle blowers should be a feature of good governance.
Transparency
International
has
developed
international
principles
for
whistleblower legislation to aid in developing such standards. 22
5.6
CIPFA recommends that:

The code retain rules relating to potential conflicts of interests,
whether these be actual or perceived.

The Assembly has clear procedures and processes by which Members
can seek advice in relation to such potential conflicts.

The Committee should consider incorporating provision for
whistleblowing into the code, taking note of international principles.
Committee on Standards and Privileges: Review of the Code of Conduct and Guide to the Rules Relating to
the Conduct of Members, Issues Paper (para 62)
21
Scottish Parliament, Code of Conduct for Members of the Scottish Parliament
22
Transparency international, Recommended draft principles for whistleblowing legislation
20