THE Convention of Scottish Local Authorities yesterday made a timely intervention into the furore over the missing council millions by highlighting the pressing need for councils to clarify where real accountability lies, writes Cameron Simpson.

Against an unsavoury background of officials and councillors ducking and diving responsibility in North Lanarkshire Council, Cosla said the public wanted to know where the buck stopped.

Ironically, one of two reports, on political leadership and democratic renewal, calls on the Government to give councils powers of community governance and greater control over their financial arrangements.

However, as a corollary to this, Cosla argues that the performance and competence of local politicians must be improved.

A task group on options for political leadership identifies serious problems with the current council set-up. Meeting these challenges will be essential if local government is to position itself as an equal partner with the Scottish Parliament, the report warns.

It says the role of councillors has ''lost public respect'' while there is little training in the serious role of political leadership. Local government in Scotland accounts for #6000m of expenditure but spending on member and management development is minimal.

The report adds: ''National politicians of all parties bemoan the calibre of some councillors. Instead of complaining, they must develop a strategy with the local government associations to rebuild the role, respect, and skills of councillors as a key part of rebuilding local government.

''This must mean we pay leading councillors properly. It is a nonsense that the leaders of every major authority in Britain have much greater responsibility and work than a backbench MP, yet have no pay and paltry allowances. If able people are to be attracted into local government leadership roles, they must be properly paid.''

To help attract more high calibre people, it calls for increased allowances to provide for childcare costs, and the introduction of legislation which would require employers to allow employees time off to serve in local government.

On accountability, the report quotes Prime Minister Tony Blair: ''Too many of the public do not understand how decisions are made nor who is responsible, let alone the relationship between service committees, the policy and resources committee, the full council and the party group.''

The task group accepts the argument that there is public confusion as to who is leader of the council - is it the civic or the political head? The separation of the civic and political roles in politically-controlled councils has become custom and practice but there is no legislative requirement for such a division, the report says.

The group says that it is an essential fact that most major policy decisions in practice are not taken by the full council or its committees, but in private within the ruling group. While formal authority rests with the council, real authority in practice rests outside.

The group says this is unsatisfactory because it ''does not provide a clear line of accountability and responsibility''.

As well as the need to clarify accountability, the group concludes that the lack of interest and involvement in local government must be addressed.

It says: ''But there is no cure-all solution. The group firmly believes that a range of reforms are necessary, embracing not only the relationship between councils and their communities through new leadership structures and electoral reform, but in the relationship between local and central government.

''Equally important is the need to invest in the development of the leadership skills of the elected members.''