LABEL

Strasbourg, 14 April 2010 LR-GG(2010)5

EUROPEAN COMMITTEE ON LOCAL AND REGIONAL DEMOCRACY

(CDLR)

COMMITTEE OF EXPERTS ON GOOD DEMOCRATIC

GOVERNANCE AT LOCAL AND REGIONAL LEVEL

(LR-GG)

STRATEGY FOR INNOVATION AND GOOD GOVERNANCE

AT LOCAL LEVEL:

ARRANGEMENTS FOR THE GRANTING OF THE LABEL

Secretariat Memorandum

prepared by the Directorate General of

Democracy and Political Affairs

Directorate of Democratic Institutions

This document is public. It will not be distributed at the meeting. Please bring this copy.

Ce document est public. Il ne sera pas distribué en réunion. Prière de vous munir de cet exemplaire.

Introduction

Launched by the European ministers responsible for local and regional government at the 15th session of their conference (Valencia, 2007) and adopted by the Committee of Ministers at the 1022th meeting of the Deputies (26 March 2008), the Strategy is a Council of Europe project aimed at promoting good democratic governance at local level through the combined action of local, central and European actors. Good governance targets are identified in the form of Twelve principles, each one being subsequently detailed in a number of specific sub-targets.

At local level, individual municipalities or – if consensus is reached at regional/national level – all municipalities through a collective engagement commit publicly and officially themselves to respecting and fulfilling the Twelve principles of democratic governance. Individual municipalities may further apply, if they wish, for such commitment and achievement to be officially acknowledged by the awarding of the European Label for Innovation and Good Governance.

At regional/national level – depending on the distribution of competences on local government in individual member states – the authorities responsible for local government may establish in liaison with local authorities’ representatives (associations) a “state of play” report in respect of the Twelve principles so that possible shortcomings and difficulties in meeting the targets set in individual Principles are identified. On this basis, regional/national action plans may also be drawn up, aimed at promoting the adoption or implementation of positive measures and removing obstacles that would prevent local authorities from having the “virtuous” behavior that characterizes “good governance”.

At European (Council of Europe) level, the Stakeholders’ Platform examines and approves regional/national action plans and adopts the rules for the granting of the Label. It can also provide guidance to individual regions/states aiming at introducing the Strategy and facilitate the provision of “capacity building” assistance to local and regional authorities – by the Centre of expertise for local government reform – with a with a view to enhancing their performance under specific Principles, thus making it possible to meet the targets and eventually compete for and obtain the Label.

The European Local democracy Week and the annual debate on the Strategy to be held in the Congress of Local and Regional Authorities will contribute to both raising awareness of local democracy issues at member states’ level and enhancing citizen participation in local affairs.

With a view to making its implementation, as described above, possible by the largest number of member states, the Stakeholders’ platform has requested the Secretariat to prepare a “benchmark” for the Twelve principles, listing the measures, actions or behaviors that would make it possible to conclude that a given Principle is implemented. This “benchmark” has been prepared with the assistance of experts from countries where similar programmes exist and drawing from their countries’ experience. The “benchmark” has been tested in a number of municipalities (in Norway, the Netherlands, France, Bulgaria, Ukraine, Belgium and Italy) and will be finalized in the light of the lessons learned at a meeting of regional/national project managers to be held in parallel with the LR-GG meeting on 27 and 28 April 2010. It is understood that the “benchmark” may have to be adjusted to the situation prevailing in each participating state. The Stakeholders’ Platform however will need to validate each benchmark in order to ensure high standards and consistency in behaviour requested.

Furthermore, the Secretariat has drawn up a procedure for the awarding of the Label to municipalities that implement the Principles. The Label is attributed to all municipalities that satisfy a certain number of criteria – to be finally decided upon by the Stakeholders’ platform – and therefore does not reward excellence or best practice. The procedure for the awarding – to be discussed at the same meeting of the project managers – is based on two principles: first, decentralization to “granting authorities” (national stakeholders’ platform) in each member state (at regional/national level, as the case may be) that adheres to the Strategy and second, accreditation by the Council of Europe (Stakeholders’ Platform) of the authority of whose competence, independence, transparency and sustainability the Platform is satisfied.

The draft procedure for the accreditation has been established by the Secretariat in the light of the experience of similar bodies and appears at the Appendix. In view of its relevance in and for member states accepting and committing themselves to the Strategy, it is suggested that the LR-GG give its opinion on it, prior to its finalization by the Secretariat and adoption by the Stakeholders’ Platform.

It is recalled that the Stakeholders’ platform – whose composition is established by the Strategy – meets usually twice a year and aims at adopting all relevant documents for the effective implementation of the Strategy in June or July 2010. This would enable some member states – in particular those that have volunteered to test the “benchmark” – to establish the national accreditation agency quickly and even deliver, if the procedures are implemented efficiently and expeditiously, the first Labels to municipalities by the end of this year.

Action required

LR-GG members are invited to consider the proposed arrangements for the granting of the Label – see Appendix – and make comments for the Secretariat to take into consideration with a view to submitting a final proposal to the Stakeholders’ Platform Meeting in June-July 2010 (date to be set).

Members are also invited to initiate all appropriate action aimed at promoting interest in, and taking action on the Strategy both by regional/national authorities and associations of local authorities, with a view to making accession to it possible as soon as both the “benchmark” of the Principles and the procedure for the granting of the Label are agreed upon.

APPENDIX

DRAFT

Structures and procedures for awarding the Label of

Innovation and Good Governance at Local Level

The structures, bodies and procedures described below are a significant part of awarding the label under the Strategy for Innovation and Good Governance at Local Level. The following procedures aim at enabling European and national stakeholders, i.e. governmental bodies and associations responsible in the field of local government and decentralisation, to assume responsibility for the process of awarding the Good Governance Label, within the framework established and guaranteed at European level. Respect for the rules, structures and procedures as set out below will guarantee a fair and effective management of the process. The overall principle is that the final decision on the award of the Label to a local authority will be the responsibility of National Stakeholders Platforms, where as the respect for the European framework will be overseen by the Council of Europe Stakeholder’s Platform, to which also complaints for violation of the framework requirements can be addressed.

The procedures for attributing the Label will be set up in accordance with the following:

- The process for awarding the label to local authorities within a country will be the responsibility of a National Stakeholders’ Platform, set up in accordance with the rules below. This body will have to be officially accredited by the Council of Europe Stakeholders Platform;

- Experts (selected from a Pool of Experts) will be responsible for the verification of the applications by municipalities which claim to meet the required level of good governance. They will also be responsible for drawing up the conclusion of these verifications and make a recommendation to the National Stakeholder’s Platform whether the label should be awarded;

- The final decision to the award the Label to municipalities will be taken by the National Stakeholders’ Platform.

1. The National Stakeholders’ Platform

i. Composition and appointment

It is to be composed in such a way that it has the trust of the main stakeholders, i.e. the Minister responsible for Local Government and decentralisation, the Parliament, the national association(s) of Local Authorities (or any equivalent association), local authorities and credibility in the eyes of citizens.

The composition of the National Stakeholders’ Platform must include, but need not be limited to members corresponding to the following four categories:

Category	Members
A	representatives of national bodies and/or ministries
B	elected members of Local Government bodies, including mayors, chairmen/women of deliberative or executive bodies at regional levels; At least one member must be a member (or substitute member) of Congress of Local and Regional Authorities for the country concerned
C	representatives of Local Government executives and staff members
D	academic experts of Local and Regional Government

Additional individual members can be appointed according to their special knowledge of the field, or special responsibility related to it like ombudspersons, civil society representatives (such as NGOs, trade unions, private business companies’ representatives or employer associations), or public law lawyers.

The decisions on possible further members and the total number of members needs be taken by the stakeholders. However, the number of members in category A may not exceed the number of members from categories B and C taken together. An uneven number of members is recommended to make final decisions by vote possible. Furthermore, a fair balance will have to be struck between members adhering to or associated with political parties that make up the national parliamentary majority that constitutes or supports the government of the country and members adhering to or associated with other political parties, notably those in opposition at national level. A fair gender balance also has to be ensured.

The National Platform will be appointed for the same duration as decided for the validity of the Label (see below Accreditation, Responsibilities).

Members of the National Stakeholders’ Platform may be expected to carry out their duties on an honorary basis. Countries, i.e. National Platforms, may nevertheless decide to pay fees to members of the Platform during meetings, and to cover travel and accommodation expenses if relevant. The funding for these arrangements as well as any payments made further to them must be administered by or on behalf of the National Stakeholders Platform in a fully transparent manner of which detailed records are to be kept.

ii. Chair

The Provisional National Stakeholders Platform elects a chair to preside over the meetings and to represent the Platform to the Council of Europe in the application for accreditation. The election will take place during the first meeting. Candidates to the election are to be announced to all members of the Platform no later than 48 hours before the opening of this first session. Pending the election of the chair the meeting will be chaired by the member who is the most senior in age. The chairperson will be elected by absolute majority, after as many voting rounds as necessary.

iii. Accreditation

After the Provisional National Stakeholders’ Platform has been established, the Chair will be responsible for submitting its application to the Council of Europe for accreditation. The accreditation dossier sent to the Stakeholders Platform of the Council of Europe must include:

- A list of members of the National Stakeholders’ Platform, their profiles and evidence of their consent to serve on the National Stakeholders Platform;

- The list of experts appointed to examine the local authorities’ applications to obtain the Label (see below);

- The resources dedicated to the implementation of the Strategy, i.e. the Label (secretariat and budgetary means), and the internal rules and process for the functioning of the National Stakeholders’ Platform, including management of applications;

- The benchmarks and opinion surveys questionnaires to be used in the country, with all justifications for departing from the original model benchmark and survey adopted by the Council of Europe, if this is the case.

Once it has satisfied itself that the requirements for so doing have been met, the Council of Europe’s Stakeholders Platform may officially accredit the national authority for a period of three years, renewable further to an official request of the country (Chair of the National Stakeholders Platform) according to the procedure outlined above. This includes the approval for the national benchmarks and outlines for surveys.

The CoE SHP is free to ascertain the compliance with the framework requirements at any time, including by means of a visit to the country. The NHSP is required to receive and meet with representatives of the Council of Europe Stakeholders Platform and to provide any information it may require as well as to provide access to any and all documents and data pertaining to the National Stakeholders Platform and the awarding of the label. The Council of Europe Stakeholders Platform may suspend the awarding of the label by the National Stakeholders Platform at any time, pending further investigation. Where, following investigation, the Council of Europe Stakeholders Platform concludes that there has been a violation of the framework requirements it may withdraw the accreditation of the National Stakeholders Platform and retroactively invalidate the award of labels.

Furthermore, where the framework requirements have been violated, parties with a direct interest may file a complaint with the Council of Europe Stakeholders Platform, providing evidence of the violation and upon payment of………….. This amount will be repaid if the violation is established by the Council of Europe Stakeholders Platform.

iv. Responsibilities

The National Stakeholders Platform decides:

On the duration of the label’s validity, which should not be less than two years, or more than five years;
On which municipalities will be granted the Label on the basis of recommendations made by the experts (see below National Pool of Experts).

The National Stakeholders Platform will deliver the crystal dodecahedrons which symbolise the Label of Innovation and Good Governance to deserving municipalities during a national ceremony. If there is disagreement within the Platform to award the Label to a specific municipality, the decision will be put to the vote and it will be decided by simple majority.

If a municipality desires to, it can re-apply for a new Label when the validity has expired. The re-evaluation will be carried out in the same way as the original application, namely using the self-assessment tools (benchmark and questionnaires).

If a municipality does not apply for an extension of the Label, or if the Label is being withdrawn on decision of the National Stakeholders’ Platform, the crystal dodecahedron symbolising the Label of Innovation and Good Governance will be returned to the National Stakeholders Platform.

The National Stakeholders Platform has the following specific tasks:

Adopt its own regulation and methodology in the light of the current document;
Nominate experts to the Pool, Secretariat (see later) and approve the budget for the programme;
Decide which municipalities will receive the Label and which not;
Officially inform municipalities which will be granted the Label and which will not;
If questions asked in the benchmark and questionnaires prove not to be relevant or not to apply to the context of the country, or to the level of local government, the National stakeholders Platform may decide to modify or to delete them, provided the standards for Innovation and Good Governance are not significantly modified. The Stakeholders Platform of the Council of Europe will be informed on any decisions during the accreditation request;
Provide the Stakeholders Platform of the Council of Europe with a yearly report which will include the following items: number of total applicants to the Label, number of awarded Labels, number of rejected applications, issues which were raised and number and sort of complaints and how they were dealt with;

Disseminate information about the Label and municipalities having obtained them;
Disseminate good practice identified during the process.

Any dispute on decisions made by the National Stakeholders’ Platform can be raised with the Stakeholders Platform of the Council of Europe.

The National Stakeholders’ Platform will decide to set up a dedicated secretariat, in charge of the current management of the process (pool of experts, reception of applications, assisting in the self-assessment process, distribution of benchmarks and questionnaires to the experts for examination, organisation of the National Stakeholders’ Platform meetings, publishing of results, liaison with the Council of Europe).

2. The national Pool of experts

i. Appointment

Experts are appointed by the National Stakeholders Platform, by vote if necessary, by absolute majority. Candidates can apply to the Chair of the National Stakeholders Platform in writing, stating reasons for their application, with an enclosed CV. This application process should be well publicised. All expenses made by the experts will be refunded, while there should also be the possibility of pay them an honorarium.

ii. Number, qualification and guarantee of objectivity of experts

The Pool of Experts may have an indefinite number of members, and as many experts as are necessary to process the number of applications received from municipalities. The experts’ knowledge and experience of the issues addressed by the Strategy of Innovation and Good Governance must be thorough, relevant and proven, thus enabling them to evaluate municipalities’ self-assessments.

Experts may be academics, lawyers, economists, local government senior executives, or specialists of sectors relevant to local and regional governance. They should not have ties to the local authorities they examine that could affect or could be perceived as affecting their ability to carry out their duties objectively.

The experts’ CVs, which guarantee their expertise in the field of local governance, will be updated every 5 years, in order to verify that their capacity of expertise is maintained. The updating of the experts CV’s will be the responsibly of the National Stakeholders Platform.

iii. Responsibilities

The National Stakeholders’ Platform will be formally responsible for the distribution of the different applications among the experts, although the Chair or the secretariat could be mandated by the National Stakeholders Platform to fulfil the task. A minimum of two experts should be appointed to each municipality.

After examination of the documents submitted by the applicant municipality, the experts can decide to visit a municipality and/or ask the municipality to organise meetings with members of the elected body, major executives and other persons it deemed relevant for an interview. "Résumés" of visits and interviews will be appended to the recommendation report. The experts will deliver a report to the National Stakeholders Platform in which they will make a case for their advice on the granting of the Label to a specific municipality or not.

The list of experts will be sent to the Stakeholders Platform of the Council of Europe with the application made by the country for the accreditation of its National Stakeholders’ Platform (see above the National Stakeholders’ Platform, iii. Accreditation). The Stakeholders Platform of the Council of Europe will be informed of all changes made to the Pool of Experts.

3. Applications

The municipality will have to provide the following documents in order to apply for the Label:

- A letter stating when the municipal council adopted the twelve principles of Good Democratic Governance;

- A proposal in which it proposes how to take active part in at least one initiative aimed at learning from colleagues;

- A filled in benchmark with supporting documents;

- A report on the outcome of the citizens and councillors questionnaires.

4. Timetable and awarding ceremonies

The ceremony to award the Label of Innovation and Good Governance will be held in principle once every year during the Local Democracy week. The duration of the procedure for attributing the label should not longer than 2 months, and will run according to the following timetable.

Deadline	Action
1 September	Deadline for municipalities’ applications. The secretariat assesses the admissibility of applications as soon as applications come in.
1 September- 1 October	Self-assessments and surveys examined by experts, preparation of the recommendations to the National Stakeholders’ Platform.
1 October to 3^rd week of October	National Stakeholders’ Platform meeting. Final agreement on the list of municipalities to be awarded the Label, official notification of which municipalities have been awarded the Label and informing the Council of Europe of this decision.
Third week of October	Start of award ceremonies.

For implementation of the Label to be effective, the National Stakeholders’ Platform and pool of experts should be appointed and operational by 1 September, for a period of time to be decided by the Platform (between 2 and 5 years).

If a large number of municipalities are interested in applying for the Label, the National Stakeholders' Platform can decide to organise a second round for the award procedure. The timetable would start on 1 January and having the award ceremonies in March of that year.

Countries will be responsible for organising their own award ceremonies and the purchase of the crystal dodecahedrons which symbolise the Label of Innovation and Good Governance. These dodecahedrons will need to be made like the model as set by the Council of Europe. Every country will receive one model.

The Stakeholders Platform of the Council of Europe will publish the yearly report based on the input received from the National Stakeholders Platform. This report will include statistics, a list of awardees and interesting facts on their achievements. This will facilitate the exchange of best practices.