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Ministers are clearthat all costs for providing a service should be met, and that the third sectorshould not subsidise, or be expected to subsidise, public services.

We are committed toworking with the sector and local government to ensure all are aware of the consequencesof not providing for full cost recovery.

The Independent Reviewof Scrutiny, led by Professor Lorne Crerar, is examining how regulation, audit,inspection and complaints are functioning in Scotland’s public services. The review is developing recommendations for a bettersystem of scrutiny which should reduce the burden of regulation on third sectorbodies which deliver such services.

Voluntary sector employersare independent of government. Staff terms and conditions are a matter for staffand the employer, within the boundaries of employment law.

Local authoritiesare fully funded to provide services at local level and all organisations shouldbe paid the costs for delivering any given service.

We recognise the importantcontribution that third sector bodies can make in delivering public services. Inmany areas they are already substantial suppliers of service. Overall, it is clearthey have capacity to do more and we are considering work to improve commissioningby local authorities and public bodies which should enable third sector bodies toplay their full part.

Organisations shouldbe paid the full costs for providing a service, and we expect local authoritiesand third sector organisations to conduct suitable negotiations for service deliverythat take all costs into account.

We support the principlesof the Scottish Compact, which was explicit that Government should apply best practicein funding and in the administration of grants. We support the practice ofthree-year funding for the voluntary sector across the public sector and encouragethe use of longer term funding agreements, where possible, to provide a stable andefficient operating environment for the sector.

Within that context,we are considering what more can be done to enable local authorities and voluntaryorganisations to develop contracts which ensure effective delivery of services whilenot jeopardising the sustainability of the service provider.

As stated in responseto answer to question S3W-1134 on 26 June 2007 the Scottish Government will discuss these issues withstakeholders, taking account of information gathered from annual outcome and progressreports submitted by local authorities, homelessness statistics and other data sources.These will include the sources set out in the Statement on Abolition of PriorityNeed published in December 2005 under section 3 of the Homelessness etc (Scotland) Act 2005.All answers to writtenparliamentary questions are available on the Parliament’s website the search facilityfor which can be found at http://www.scottish.parliament.uk/webapp/wa.search.

A wide range of actionsis required to meet the 2012 target and it is for each local authority to decidethe most effective methods of achieving the target in their area. Central Governmentfunding for homelessness services, housing supply and the wider range of servicesrequired to meet the target will be considered as part of the Spending Review process.

The Protection of Vulnerable Groups (Scotland) Act 2007 is intended to deliver a modern, streamlined,efficient and effective vetting and barring system. The legislation will come into force once all the constituent elementsare in place to ensure that that is what is delivered. This necessarily involvesthe development of processes and IT systems, a comprehensive programme of consultationand secondary legislation and guidance and training for users prior to the systemgoing live. A substantial implementationprogramme has already begun but it is too early in that process to be definitive about when the legislationwill come into force. We will keep the Scottish Parliament and stakeholders informedof progress and planned commencement dates through regular reports.