MINUTES OF THE TWENTY-SEVENTH MEETING OF THE EXECUTIVE BOARD
HELD IN THE SILVAN HOUSE BOARDROOMS
ON WEDNESDAY 27 JUNE 2007
Members: Tim Rollinson (Chairman), Ian Forshaw, Keith Gliddon, Wilma Harper, Paul Hill-Tout, Kim Lardge, Jim Lynch, Bob McIntosh
Secretary: Stephen Bennett
Guests: Rachel Anderson (Agenda Item 7 only), Norrie Craig (Agenda Item 12 only), Peter Garson (Agenda Item 12 only), Derek Gilfillan (Agenda Item 3 only), Peter Weston (Agenda Item 11 only) and
Richard Williamson (Agenda Items 5 & 6)
1. Minutes of the last meeting and matters arising
The minutes of the meeting held on 3 May were agreed as a true record, with no amendments.
Seven matters arising were discussed:
· BSD Review
The recommendations of this review were all in the process of being implemented.
· Paying Agency
Steady progress was reported in each country. It was reported that although the G&L Service Board would cease to operate, the country heads of G&L would still meet on a regular basis to discuss overarching and common issues such as this.
· Red Band Needle Blight
The FC needed to make the link between the outbreak of these diseases and climate change. All of the issues surrounding the disease needed to be communicated to the private sector.
Action: Wilma Harper
· On The Ground
Scottish Ministers had asked the four main countryside organisations to look at how they could present a more unified approach without the need for legislation. This was an extension of the “On the Ground” project. The new delivery ‘body’ was due to be announced at the Highland Show in 2008. The leaders of the relevant projects had been asked to present their proposals to Ministers in three months. As the project continues, the EB would be kept fully informed.
Action: Bob McIntosh
· FR Development Strategy
The EB received a verbal update on the progress with this initiative and was informed that everything was on target. As Commissioners were due to be updated at their meeting in September, the EB would have a strategic discussion at their August meeting on this subject. The series of FR Seminars had been well-received and were a successful link between the Agency and the Conservancy and District teams.
Action: Jim Lynch
· Communications
The Silvan House Branding workshop was scheduled for 6 July. The Scottish workshop had been postponed temporarily in view of the ‘On The Ground’ announcement.
2. Finance and Accounting Issues
Director, Finance highlighted the following key issues from his paper:
· Charges to the countries had reduced in real terms due to the effort to reduce costs across Silvan House.
· All of the FC’s Annual Reports would be laid in July prior to the summer recess’. Good progress was being made with the audit of the accounts. Auditors had not raised any significant issues so far.
Action: Keith Gliddon
· Discussions with Defra to integrate the Vote into that for Defra continued. Although progress had been made, a lot of work remained to be done.
Action: Keith Gliddon
· The benchmark templates for public sector corporate services had been published. These would be adapted for FC use.
Action: Keith Gliddon
· It was possible that the FC would be advised of the CSR outcome in July although an official announcement would not be made until October. Although timber receipts were rising, this money would be reinvested in new policy development and funding the efficiency programme in order to remain aligned to new agendas. It was important that the TUS and staff understood the financial pressures on the FC.
Action: EB Members
· Although new Ministers in Scotland and Wales were interested and enthusiastic about the FC and the green/sustainability agenda, the financial picture remained unclear. In Wales, the new Ministers had expressed an interest in access, climate change and the wider green agenda.
Action: Country Directors
3. Procurement Strategy Update
The Head of Procurement outlined for the EB the savings that had been made for the FC by his team.
The EB agreed that the FC had to take full advantage of the savings that had been made, with transparency about how the savings had been utilised. Director, Finance would engage with country finance teams to examine the benefits realisation and how to demonstrate these efficiencies to Ministers.
Action: Keith Gliddon
However, there was a potential to achieve more savings and to this end business cases were being prepared to engage procurement officers within each of the three countries. The business case would highlight the direct and indirect savings including improved services and reduced staff time. It was the responsibility of Country Directors to ensure that the savings were appropriately accounted for in a transparent manner.
Action: Country Directors
Director, Scotland highlighted that the Scottish Executive was currently focusing on rationalising procurement and aggregating procurement contracts across Scottish Government. The FC would have to be closely involved in this agenda to protect FC business interests.
Action: Bob McIntosh
After reviewing the savings that had been delivered by the procurement team the EB expressed their gratitude to Derek Gilfillan and his team. Although Derek would remain with the FC on a part-time basis until December 2007, the EB took the opportunity to wish him well in his next venture.
EB members were clear that the FC needed to maintain the current procurement function and expand procurement expertise within the organisation.
4. HR Activity Report
Director, HR focused on five key areas within her report:
· People Strategy
The Strategy had been amended to include more detail around the diversity targets. The HR Service Board had agreed to extend a couple of deadlines to more achievable targets. It was planned to launch the Strategy in early September after the summer leave period using various techniques including Director, HR attending appropriate meetings of cost centre managers all across the FC. Hard copies of the Strategy would be made available in A5, loose-leaf format.
Action: Kim Lardge
· Graduate Recruitment
The HR Service Board had recommended repeating the exercise this year to seek two further graduates. The EB agreed to this. It was also agreed that there would be two recruitment events this year, one in Scotland and one in England close to the Welsh border to cover both countries. Director, HR and Chief Executive FR would discuss the selection of projects for graduates at a future date.
Action: Kim Lardge & Jim Lynch
· Pandemic Flu
HR was developing the HR processes for dealing with sick lines, etc as part of the contingency planning process.
Action: Kim Lardge
· Safety, Health and Environment
Emily Ramsay was currently reviewing the governance of this function and would report to the EB at an early opportunity.
Action: Kim Lardge/Emily Ramsay
· Diversity
The EB agreed that the HR Service Board would fulfil the role of Steering Group of the Diversity Technical Group (DTG). The Service Board would also prepare terms of reference for the DTG. EB members were concerned that there should be a clear governance structure for this important area and that clear guidance and training for staff was developed as a matter of urgency. It was clear that all new and reviewed/renewed policies must undergo an impact assessment but the existing guidance on this needed to be reviewed for compliance with current legislation and relaunched. An exercise was currently underway to recruit a new FC Diversity Manager but it was anticipated that the successful individual would not take up post until September. In the meantime, an external expert would be engaged ASAP to put together the new guidance and review the existing framework. EB members confirmed that funding would be made available for this and other diversity issues as they saw this area as a priority for the FC. The Diversity Action Programme would be submitted to the EB in line with the arrangements put in place by the Steering Group. Diversity would become a standing item on the EB agenda from now on.
Action: Kim Lardge
5. Pay 2007
A confidential discussion took place on the 2007 Pay Award.
6. Pay and Reward Strategy – Context and Planning
The EB approved the direction of travel as outlined in the paper. EB members were keen that the strategy was continually developed over the coming months and EB members kept appraised via the HR Activity Report currently submitted via every EB agenda. The EB requested a formal paper and discussion on this issue at their meeting in October.
Action: Kim Lardge
EB members asked Director, HR to ensure that the Rural Affairs Departments in each country were used in the benchmarking exercise with other employers.
Action: Kim Lardge/Richard Williamson
The first meeting to discuss the longer-term strategy with the TUS was scheduled for 12 July.
Action: Kim Lardge/Richard Williamson
7. Competence Framework
EB members were very impressed by this presentation and supportive of the work that had been carried out to develop a competence framework for the FC.
The EB requested that the presentation was incorporated into the guidance on this issue for cost centre managers. Director, Finance also requested that Rachel Anderson attend meetings with the Finance Directors to develop a framework for financial professional skills and experience.
Action: Kim Lardge/Rachel Anderson
The EB approved the next steps for the project, particularly linking into other frameworks to ensure ease of transfer or secondments to other Government departments for employees.
Action: Kim Lardge/Rachel Anderson
EB members asked to be kept informed of the next stages, including sight of the project plan for phase II.
Action: Kim Lardge/Rachel Anderson
8. Climate Change
The EB noted the contents of this information paper and requested that an action plan that outlined responsibilities was produced within the next few weeks. This would enable FC Scotland and Wales to link into the wider country SE and NAW agendas on this issue at the appropriate time.
Action: Wilma Harper
To facilitate this process, EB members would feedback comments to CFS as soon as possible.
Action: EB Members
The action plan would distinguish between GB led issues, GB support issues and FC Country led issues.
Action: Wilma Harper
Clearly, the FC was not responsible for taking the lead on every climate change issue but we would take the lead where we can make an important contribution. Setting standards for carbon offsetting and forest adaptation were the key areas for the FC.
Action: Wilma Harper
9. Forestry, Health and Wellbeing
The EB accepted and approved the conclusions of the paper as follows:
· There was a need for advocacy and for long-term collaborative research. FR would be mandated to develop the evidence base.
· FC would not be constrained by the slow pace of other outdoor bodies and would continue to look for partnership with organisations with clear and active health-related agendas.
· Senior staff would continue to engage with senior regional and central government officials and with Ministers.
· Countries would exploit opportunities for secondments from or to health organisations.
Action: Wilma Harper/Marcus Sangster
10. Forest Holidays Governance
The EB was informed of the progress made on this issue at a recent meeting of the Board of Commissioners. There was a legally binding document that set out the governance of the Forest Holidays LLP that must be adhered to.
Commissioners had decided that decisions on new Forest Holidays sites would be made at National Committee level. James Swabey was producing generic guidance, criteria and a checklist, including the requirement to advise FAS. This would be circulated to the EB for approval.
Action: Bob McIntosh
Director, Finance would brief country Finance Directors about the financial implications of the Forest Holidays LLP.
Action: Keith Gliddon
The dual role of the FC as landlord and members of the LLP working through the nominated membership of the Management Committee was pointed out. Therefore, although the EB wanted to see the LLP Business Plan annually, it was not the EB’s responsibility to approve it. Director, Scotland would keep the EB informed via his role on the LLP Management Committee, particularly of any issues likely to have a financial or reputational impact on the FC.
Action: Bob McIntosh
11. Inventory and Production Forecast
The EB noted the progress made on the implementation of the review of this function. It was important to note that the EB was not revisiting the decisions reached at their meeting on 3 May but refining which roles were involved and would form part of the new Inventory and Forecasting Unit. It was expected that this work would be completed within 6 months.
Action: Wilma Harper
The EB agreed the scope and governance of the 2010 production forecast.
However, further work was required to ensure extensive private sector engagement in the forecast beyond the existing Private Sector Data Group. The FC needed to improve existing systems and arrangements in order to do so. Work was required on the methods and resources on engaging the private sector. The EB would consider this at their meeting in August.
Action: Wilma Harper & Paul Hill-Tout
The EB also agreed in principle to the appointment of a Programme Manager for the 2010 forecast. The OSU Service Board would discuss and agree how to fund this post. A second post would be created to support the production forecast and SCDB maintenance by switching resource from contract.
Action: Wilma Harper/Peter Weston
The EB decided that an external view would be sought on how the FC carries out the production forecast.
Action: Tim Rollinson & Wilma Harper
12. GLADE Update
The EB noted that some business critical functionality remained to be developed, identified as follows:
· Paying Agency controls, such as grant re-claims and inter-departmental processes to prevent double funding, are incomplete.
· Reporting functionality is still very limited and will be critical for financial control as well as EU co-financing and audit purposes.
· The development of a grant scheme functionality for Scotland is incomplete.
· The development of felling licence administration is not complete.
· GIS functionality is very limited despite the strong administrative and policy drivers for greater spatial functionality.