Commission Report (2002): Latvia

The executive

The Action Plan for the implementation of the Public Administration Reform Strategy for the years 2001--06 was approved by the Government in December 2001, and a corresponding co-ordination Council was established to monitor its implementation. The Council reports twice a year to the Government on the results achieved in implementing the Action Plan.

In June 2002, the Framework Law on Public Administration, which regulates the establishment, subordination, control, accountability and funding arrangements of public administration bodies, was adopted. It seeks to introduce the principles of good governance throughout the whole public administration, including in self-government bodies and in those institutions, which perform public administrations functions delegated by the state.

A new Law on Administrative Procedure defining administrative procedure in public institutions and courts was adopted in October 2001 and is due to enter into force in July 2003. The implementation of the Civil Service Law is in progress, and the confirmation of civil service posts and assignment of civil service status was completed in February 2002. In addition, the performance-appraisal system for civil servants was put in place and the first annual performance-appraisal round was completed in December 2001. In October 2001 the Government adopted a regulation to define the procedure for the determination of qualification grades of civil servants, which will also constitute the basis for the new pay scale.

As regards the development of a unified pay system, the ongoing evaluation of the qualification grades will be decisive in determining the necessary financial resources to be allocated to the state budget in 2003. Adequate information on actual needs and job descriptions in the administration as well as details of category scales and corresponding financial costs are essential inputs for legislation to establish the new system.

Latvia has made good progress since the last Regular Report regarding implementation of the Law on Agencies. Criteria for the establishment of public agencies were set by the Government and around 150 enterprises and non-profit organisations have been analysed. So far a list has been adopted of 25 agencies to be restructured as state agencies by the end of the year. In addition, a number of regulations have been adopted defining the operational conditions of public agencies, including state responsibility for public agencies' liabilities, the obligation to establish internal audit units and the methodology for setting fees for services provided by public agencies.

During the reporting period, the Government has adopted a number of guidelines and rules to improve policy planning, involve society, strengthen the link between policy planning and budgeting, speed up the decision-making process and implement government policies.

Since the last Regular Report, 7 753 civil servants have attended training courses at the Latvian School of Public Administration. Training priorities included EU policies, administrative procedures, legal drafting, prevention of corruption, project management, internal audit, strategic management, personnel management and quality management.

Latvia has continued to address the remaining reform issues, and the legislative and administrative framework will be quite comprehensive once the Civil Service Law and the Framework Law on Public Administration are fully implemented. As the importance of a professional and stable civil service is widely recognised, it is now important to ensure minimum staffing levels, training, and adequate financial resources, including the completion of a uniform civil service pay system, at all levels of the public administration, with a view to strengthening the capacity to implement the acquis.

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