Council spending - have YOUR say

Scalloway Hall - 27 October

Interesting discussion at Scalloway savings meeting

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Scalloway Hall was the location for the second public meeting to discuss how the Shetland Islands Council should save £26 million from its budget over the next two years. Better procurement and doing more business with the private sector were the dominant issues of the night.

Around 30 people attended the session, which began with a briefing on the detail behind the authority’s present financial situation by Councillors Alistair Cooper and Cecil Smith, Council Head of Finance, Hazel Sutherland and Director of Infrastructure Services, Phil Crossland.

One retired businessman, who had traded in Orkney and Shetland throughout the 1970s and 80s, spoke of a gulf between how the two authorities bought goods and services. In his experience Orkney Islands Council had been more joined-up in its thinking, which led to significant savings for the authority. By contrast, Shetland Islands Council had not taken enough care over purchasing and allowed a fragmented spending culture to develop through the years. This situation, he argued, has not only seen Orkney Islands Council manage its finances more efficiently; it has also encouraged a dynamic local economy, a mobile workforce and a competitive tendering marketplace.

Taking up the point of Orkney being an example that Shetland can learn from, a second commenter encouraged the panel to speak with the neighbouring council to find out how it delivers services without having to rely on cash reserves to pay for them. A person who works in the construction industry in both island groups said that big savings could be made by studying how Orkney Islands Council manages capital spending. Shetland would soon see that money can be saved in construction by taking a less extravagant approach to choosing materials and setting specifications. The result would be cheaper builds with perfectly adequate materials, many of which are available from local traders.

Another person suggested looking at whether Shetland’s inter-island ferry services could be run at a lower cost by a commercial operator, with the recent awarding of the Foula ferry contract to a private firm highlighted as an example that could inform future decisions. The same commenter stressed that no jobs need be lost in such an arrangement; because the work would still be there, existing staff could be transferred when any changes took place. A second person spoke of how spending more locally would help ease the impact of public sector cuts on the economy and support employment opportunities with commercial operators.

Staffing, specifically back-office functions in administration and finance, was highlighted as an area that needed to be examined. Officials responded by saying that a senior management restructure has already taken place which is expected to bring yearly savings of £1 million, and that further reviews of central services, including administration, were under way.

Toward the end of the session a commenter spoke of the need to encourage Shetland’s young people to get involved in future meetings. The panel agreed, adding that this would be considered carefully when organising the second stage of the Council’s Have Your Say public conversation later in the year.

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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