Official - Sensitive

THE EIGHTY-FOURTH MEETING OF THE EXECUTIVE BOARDHELD IN THE SILVAN HOUSE BOARDROOMSON WEDNESDAY 25 JANUARY 2017

MINUTES

Members:Ian Gambles (Chair), Simon Hodge, Simon Hodgson, Jean Lindsay,
Jo O’Hara and James Pendlebury

Guests:David Felstead (agenda item 6 only) and John Morgan (agenda item 7 only)
Secretary:Stephen Bennett
1.Minutes of the previous meeting and matters arising

The minutes of the meeting held on 7 December 2016 were agreed.

2.Change Programmes - Updates

  • FC England (FCE)

Defra Ministers and officials were focussed on Brexit issues and a recruitment drive was underway. FCE had engaged in this process via the Future Agricultural and Land Use Options Policy Group.

Ministers continued to engage in woodland creation, carbon budget and air quality issues. However, there was some concern over some woodfuel sources. The Environment Agency was investigating wood chip supply chains from recycled or reclaimed sources which had the potential to contain heavy metals and other possible contaminants.

Director England was giving consideration to the future of the Forestry Commission when FC Scotland became part of the Scottish Government. Discussions on this were underway with Defra Ministers.

Internally, an upcoming meeting of the FCE Staff Council would consider Business Cases on future provision of HR, Finance and IT support for FCE going forward.

  • FC Scotland (FCS)

The results of the Spending Review exercise had not been finally confirmed, as the budget Bill needed to be passed by Parliament. However, draft proposals showed the combined FCS and FES budgets being maintained at 2016/17 levels. Therefore, in order to support further woodland creation and new planting targets, there would have to be a corresponding reduction in other forestry expenditure.

The Mackinnon review of forestry regulation and the forestry approvals process for woodland creation had reported to Ministers. The recommendations had been accepted. In response FCS had created a six workstream plan to deliver the recommendations which had been approved by Mr Mackinnon and the Minister. The most controversial aspect was likely to be the use of accredited agents. FCS would keep FCE informed of developments.

Action: Jo O’Hara

The draft Scottish Government Climate Change Plan included increasing annual planting targets over a ten-year period starting at 10,000 hectares and increasing gradually to 15,000 hectares of woodland creation by 2025. There was cross Party support for this Plan across Government.

After the consultation on the future of forestry in Scotland had closed, a formal independent analysis of the responses had been carried out and a report was due in February. During the Scottish Parliament forestry debate on 24 January it had been confirmed that a forestry Bill would be introduced in May. The resulting legislative timetable would probably lead to Stage II of legislative scrutiny taking place in the lead up to Christmas. Other political parties would be able to seek amendments to the Bill at this and subsequent stages. The timing of the Bill process in Scotland would need careful co-ordination with DEFRA officials in enacting the necessary secondary legislation.

The Devolution Programme would be formally established at a workshop in March. Meanwhile a clear interface had been established between FC and Scottish Government HR teams to facilitate the transfer of staff.

The programme of Forest Enterprise Scotland (FES) forest sales for 2017 was now known as the New Woodland Investment Programme with the aim of selling assets to raise money to invest in woodland creation. The programme aimed to achieve £10m of property sales in 2017-18 to re-invest into creating new woodlands. FES was committed to creating 500 ha of new woodland per year.

A Community Asset Transfer Scheme would be launched based on the Scottish Government’s commitment for communities to be able to bid for public sector assets.

Internally, FCS was currently focussed on the transition of IT services. The FCS HR and L&D teams would become part of Forest Enterprise Scotland.

  • Forest Research & Cross Border Functions

The development of the strategic outline business case examining future models for Forest Research was just starting with the support of Defra commercial team.

It was anticipated that a strategic outline case would be developed by the autumn with a full business case to follow. The aim was to submit final recommendations to Ministers by April 2018 with a view to implementing decisions by 1 April 2019. This timetable was subject to the provision of the necessary resources to carry out this work.

Defra, Scottish Government and Welsh Government officials had met to discuss proposals for cross border functions. After a meeting of the Working Group in February it was anticipated that proposals would be discussed and agreed at the Forestry Governance Programme Board meeting in March.

3. Shared Services Update

Director Central Services briefed EB members on the following issues:

  • Equal Pay Audit

Work on the Equal Pay Audit was underway. The EB would be provided with a summary of the outcomes at their meeting on 8 March. Initial findings showed that the gender pay gap had dropped. None of the pay gaps in individual pay bands were statistically significant, although the largest gaps were in the operational pay bands. The gap is mainly attributable to length of service

  • Gender Pay Gap Regulations

Public sector organisations would have a new specific duty under the Equality Act from 1 April 2017 to publish gender pay gap information. The FC would publish the appropriate information for the organisation by the required deadline.

  • Operational Pay

There was a historical anomaly with operational pay and the calculation of TRA. The EB would be provided with details in due course.

  • Senior Staff 360 Exercise

This process would be carried out from 30 January until March.

  • TUPE

A masterclass on TUPE had been held to prepare for the FCS staff transfer.

  • Decentralisation

Shared Services staff were approached to seek their views on potentially transferring to FC England (Bristol).

  • STTA

The current level of employment of STTAs across the FC was 25.4% compared to 60.1% for the same period last year.

  • PMS

The Civil Service had carried out a review of PMS with several recommendations which had to be implemented from April 2017. Essentially the changes moved from the current system to a framework which was slightly more flexible. HR would work through the implications and provide a paper for the EB soon.

Actions: Jean Lindsay

4.HMRC Tax Audits Update

The FE Agencies were in the process of implementing the changes recommended in the independent reports.

With regard to the employer compliance audit, the FC had introduced paper mileage logs but was challenging the HMRC on the practicalities. A questionnaire on travel patterns had been issued to clarify liabilities.

EB members had stated that they did not want HMRC to carry out a constant, rolling programme of audits. It was agreed that the FC would need a break between audits to consolidate and implement any changes and new procedures. HMRC had accepted this position.

5.Establishing New Corporate Service Arrangements (Paper 1/17)

EB members noted and were content with the progress being made to establish new corporate service arrangements.

The transition timelines for FC England, FC Scotland and FR were in preparation and would be brought to a future EB meeting for discussion and approval.

FC England would discuss their Business Cases for HR, IT and finance with their Staff Council in February. The Business Cases would be circulated to EB members for information.

Action: Ian Gambles

6.Disaster Recovery (Paper 2/17)

The EB noted the progress made to improve the FC’s ICT disaster recovery. EB members agreed to continue to support the on-going programme of work as outlined in the paper.

7.Plant Health Legislative Update (Paper 3/17)

EB members were informed that a Statutory Instrument was made in 2016 which amended the Plant Health (Forestry) Order 2015 to achieve three outcomes:

  • Consolidation of a separate Order for Phytophthoraramorum;
  • Implementation of recent changes in EU legislation; and,
  • Introduction of a new national measure introducing a statutory notification for all imports of solid firewood, unless this was already required.

A new EU Plant Health Regulation came into force on 14 December 2016. While the UK remained part of the EU it would participate fully in the process of implementing the Regulation by 14 December 2019. Defra was leading the process for negotiating the implementing legislation with support from the Plant Health team on forestry priorities, in consultation with country and industry representatives. Discussions around the future of the UK in Europe would impact on this process. Further detail would be provided to the EB once the picture is clearer.

As a result of the HMT ruling on fees for wood packaging material, the FC would be unable to raise income from any wood packaging material inspections. It had been suggested to the European Commission how the FC might improve the efficiency of these checks by using pre-notification to identify higher risk material. If accepted, the FC would expect to carry out a reduced frequency of checks and avoid an element of the Customs transaction charges which apply to the Chinese wood packaging material inspections. These efficiency savings should help towards mitigating the failed wood packaging material fees proposal.

The EB noted and discussed the progress being made and commended the Plant Health team on their efforts.

8.Any Other Business

One item of other business was raised:

  • Forest Research Corporate Plan

The key actions from FR’s latest corporate plan would be circulated to EB members for comment.

Action: James Pendlebury

9.Date of next meeting

The next meeting of the EB was scheduled for 10.30am, Wednesday 8 March 2017, in the West Boardroom of Silvan House.

1 | EB Minutes | Stephen Bennett | 10/03/2018