Council spending - have YOUR say

Bixter Hall - 31 October

Reserves in the spotlight at latest public meeting

The purpose of the Council’s reserves, financial planning and the new Anderson High School were the recurring issues at last night’s public meeting to discuss how the authority should save £26 million from its budget in the next two years.

Around 50 members of the public and 10 Councillors gathered in the Bixter Hall for a presentation and discussion on the authority’s current financial position, led by Councillors Betty Fullerton and Allan Wishart, Director of Infrastructure Services, Phil Crossland and Head of Finance, Hazel Sutherland.

One retired head teacher felt that the authority had failed to approach its financial affairs with a clear strategy. This, he argued, has left it in a ‘negative’ fiscal state and bred a culture of ‘firefighting’ at the expense of focused spending informed by clear priorities. He contrasted the local situation with that of Orkney and Caithness, questioning why both places had recently managed to finance new schools, when Shetland was yet to agree on a new Anderson High, despite having spent a significant amount of time and money trying to do so. A second speaker encouraged the panel to solve the Anderson High project quickly and think about the lessons that can be learnt from it.

Service provision was the subject of a question on whether the Council has been too generous in its activities. This prompted discussion on which services the authority has a statutory duty to provide, against those that are discretionary. The panel agreed that, due to its oil-funded reserves, the Council has provided higher levels of service across both areas than a typical mainland authority. This has seen spending of approximately 25% to 30% more per year on services such as ferries, care, education and roads.

The reserves themselves formed the focus for a number of questions. One person asked why no one objects to the preservation of the £250 million ceiling for the fund, adding that perhaps it was time to spend the money on things that Shetland needs now, such as fixed links and a new Anderson High School. In response, another commenter asked where the money would come from to maintain such facilities when the reserves were gone. A third person asked about the effect that having reserves has when the Council asks for grants from central government. Councillor Fullerton acknowledged that successive governments have been less than forthcoming with financial assistance for this reason.

The oil and gas industry were the focus for a comment on whether the Council had secured the best bargain for Shetland when negotiating with French energy firm Total on its £500 million gas plant in Brae. Councillor Fullerton replied, saying the Council had ‘played a hard game and got a good deal’.

The Council’s high spend on fuel, particularly as a result of running ferries, was brought up by a questioner who asked if the authority shops around to get the best deal from suppliers. Director of Infrastructure Services, Phil Crossland, acknowledged the point, adding that smarter fuel and energy procurement is a key focus for his team.

Councillor for the Westside, Frank Robertson, spoke of an idea that a neighbour of his has, where the Council would use tankage capacity at Sullom Voe to store fuel which it would bulk-buy and sell locally at a much reduced rate than is currently available. This, he said, would depend on a viable distribution system, and if it were to occur, could bring considerable savings for everyone if people bought into the idea.

One commenter encouraged the panel not to waste any opportunities when looking for savings. He used furniture budgets as an example, saying that the authority has always tended to buy new, rather than make good use of its exiting assets. He added that a positive start would be to follow his advice when furnishing the new council offices at Lerwick’s North Ness.

The cost of care was the focus of a discussion on whether it was time to look at outsourcing. One person suggested this could be done by sectioning care services out into trusts, which could then access methods of funding that are unavailable to local authorities. Another speaker feared that this would lead to a privatised care service, and for this reason alone should be avoided.

Other questions on the night covered long-term vacant council housing, the cost of street lighting, and whether one of the two Yell super ferries might be better placed by servicing Whalsay.

Written by Jordan Ogg.

Click here for a full transcript of the meeting

If you have a savings suggestion for the council please email: savings@shetland.gov.uk

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