Memorandum submitted by Horticulture Research
International (D4)
BACKGROUND
1. Horticulture Research International (HRI)
was established as a MAFF-sponsored Executive Non-Departmental
Public Body in April 1990, following a review of horticultural
research and cuts in near market R&D by the then Government.
It integrated under single management the Institute of Horticulture
Research (one of the institutes of the former Agricultural and
Food Research Council (AFRC), now the Biotechnology and Biological
Sciences Research Council (BBSRC)) and three Experimental Horticulture
Stations of the Agricultural Development and Advisory Service
(ADAS, then part of MAFF).
2. HRI's function is to carry out horticultural
research and development and to transfer the results to the UK
horticulture industry. It is an integrated and multidisciplinary
R&D organisation with the capacity to undertake research on
all the major UK horticultural commodities. Its science programme
covers a broad spectrum, from fundamental research at the molecular
level on processes underlying plant development and crop quality
to knowledge and technology transfer. It has particular strengths
in pest and pathogen biology; biological control; integrated pest
and disease management; host-pathogen interactions; signalling
mechanisms in plants; plant breeding and genetics; responses of
plants to environmental stresses and horticultural crop production
systems.
3. HRI operates from six sites—Wellesbourne
in Warwickshire (the administrative headquarters and registered
office), East Malling and Wye in Kent, Efford in Hampshire, Stockbridge
House in North Yorkshire and Kirton in Lincolnshire. Most of these
are owned by MAFF and leased to HRI. It has 547 permanent staff
and 128 temporary staff, most of whom are directly employed or
on attachment from the BBSRC. There is also a small number of
staff on attachment from MAFF.
4. HRI is governed by a Non-Executive Board
of 10 part-time Directors (including a Chairman). The Chairman
and six of the Directors are appointed by the Minister of Agriculture,
Fisheries and Food. The Secretary of State for Trade and Industry
appoints the remaining three (Science) Directors through the Office
of Science and Technology (OST) following consultations with the
BBSRC.
5. HRI reports on its performance through
annual, rolling five-year Corporate Plans and Annual Reports and
Accounts.
STATUS
6. HRI is established as a private company
limited by guarantee (without share capital), a registered charity
and an Executive Non-Department Public Body sponsored by MAFF.
It operates to a Management Statement which was agreed with the
Minister following consultations with the AFRC and OST. This sets
out broad strategic aims and objectives, the planning framework,
reporting arrangements and audit requirements. The Minister approves
HRI's Corporate Plans.
7. Following a Quinquennial (Prior Options)
Review, the then Minister (Douglas Hogg MP) announced in January
1997 that HRI would remain in the public sector "for the
present" and that MAFF would be working with it over the
coming years "to resolve outstanding operational and staffing
matters and to develop the body's science strategy and business
plan".
FINANCE
8. HRI's income in 1999-2000 was nearly
£22 million of which just over £11 million (52 per cent)
was derived from MAFF and £3.4 million (16 per cent) from
BBSRC. HRI also receives income of £7 million from other
competitive sources including UK industry levy bodies (particularly
the Horticultural Development Council and the Apple and Pear Research
Council), other Government Departments, the EU and commercial
customers.
9. MAFF's R&D funding at HRI is designed
to bridge the gap between the basic research supported by the
BBSRC and the near market research supported by the horticulture
industry. The main policy customer in MAFF is Horticulture and
Potatoes Division.
10. In addition to placing R&D contracts,
MAFF has provided HRI with financial assistance for restructuring
and other purposes totalling nearly £60 million. This included
a major restructuring programme between 1994-95 and 1997-98 which
involved closure of the former Littlehampton site.
11. The financial framework and assumptions
within which HRI has operated to date have changed, and will continue
to change, significantly.
12. A profile of HRI's income since 1990
is attached at Annex A. HRI has been unable to increase its commercial
income to cover the recent reductions in public sector funding.
As a result, HRI is moving into a loss-making situation. HRI is
now examining, in discussion with MAFF, the options for turning
this situation around without access to significantly increased
public funding, including a realistic targeted increase in commercial
receipts, reductions in operating costs and some restructuring
of its business. HRI's commercial and marketing function, HortiTechTM
had the remit to maximise income from HRI's science programmes
and resources as well as marketing and selling HRI products and
services. However, great uncertainty remains about the timing
and build up of HRI/HortiTech's commercial activities. HRI's capacity
to generate an operating profit will not be achieved easily or
overnight. It will require investment over the coming years.
ROLE AND
RESPONSIBILITIES OF
HRI
13 HRI provides the world's largest single
integrated team of horticultural scientists and is the leading
source of underpinning science, technology and know-how relevant
to the horticulture industry. Our aim is to be the first choice
supplier in the UK and international market for "research
and development for sustainable horticulture" to create high
quality, added-value products as well as safe, healthy and nutritious
foods. HRI's mission remains "To innovate and communicate
for the benefit of consumers and producers of horticultural and
other plant-based products".
14. The principal objective of HRI is to
discover and apply new knowledge, obtained through high quality
science and technology, in order to address current and future
problems and opportunities confronting the UK horticulture industry.
The key to achieving this must be proactive and ongoing recruitment,
retention, support and empowerment of the brightest, most able
and productive scientists in key future growth areas of horticultural
biosciences (eg nutraceuticals; integrated (intelligent) crop
management; biocontrol; organics; and bioinformatics). Competitive
teams of critical mass with the proper mix of skills, experience
and vision are crucial.
RECENT MANAGEMENT
REORGANISATION OF
HRI (NOVEMBER 1999)
15. Bringing a fresh viewpoint, and extensive
experience in several UK and US Universities and Research Institutes,
Professor T M A Wilson was appointed Science Director (on 1 April
1999) and then Chief Executive (on 16 August 1999) of HRI. Despite
the historical, geographical and financial complexity of the organisation,
it was immediately clear that HRI had tremendous potential to
exploit new opportunities and to access additional UK and global
sponsors/customers and markets in both the public and private
sectors. HRI has a unique skill base, with strong links to industry
and an excellent reputation for capturing, developing and transferring
knowledge to its traditional customers.
16. In 1999 HRI embarked on a programme
of change. This was conceived and designed to integrate and streamline
management and to empower key scientists. A series of rigorous
internal and external reviews has been undertaken to assess the
quality, quantity and focus of HRI's R&D portfolio and the
potential and fitness-for-purpose of its research capacity for
the new millennium, and for the next 10 years in particular.
17. The ultimate objectives of this programme
of change are:
(i) To raise the profile and impact of HRI's
R&D within and outwith the organisation.
(ii) To sharpen the focus and further improve
the quality and delivery of research knowledge to our customers;
to add value and to secure an increasing share of competitive
income from both commercial and public sector sources; and to
improve cost effectiveness.
(iii) To develop multidisciplinary research
teams which span and integrate all of HRI's sites whilst providing
our diverse range of customers with internationally competitive
R&D as well as relevant, applicable results.
(iv) To improve links with the UK horticulture
industry.
18. A strategic scientific committee (SCICOM),
composed of the nine Heads of Research Departments, provides scientific
leadership, vision, management and liaison with the Research Review
Board (the Non-Executive, DTI-appointed Directors) and with the
current group of 16 Research Area Strategy Teams referred to in
17(iii) above.
19. HRI's senior management team (EXCOM)
has been restructured so that HRI-wide responsibilities are better
represented, replacing the previous structure of Site Directors
which did not provide sufficient corporate focus. Site Managers
are responsible for local support services.
20. This information has been communicated
to all staff by notices and by personal site tours and talks from
the Chief Executive during November 1999 as part of our continuing
commitment to retain Investors in People accreditation achieved
in July 1999. An organogram of the new structure is attached at
Annex B.
MAJOR ACHIEVEMENTS
SINCE 1990
— HRI won the Queen's Award for Environmental
Achievement in 1993 for the commercial development of insect-parasite
nematode products for the biological control of vine weevil and
other soil and compost-borne pests.
— HRI has released more than 40 new
plant varieties into the commercial sector. HRI's new strawberry
varieties are now grown on 25 per cent of the total UK strawberry
area compared with 10 per cent in 1992.
— A series of crop-decision support
software programmes has been released to aid growers to minimise
the use of agrochemicals.
— New herbicide degradation options
have been researched using genes from natural soil bacteria.
— Major investments are being made
in sustainable organic fruit and nursery stock research. These
include a successful bid via MAFF to the Treasury for £2.261
million from the Capital Modernisation Fund to create the European
Centre for Organic Fruit and Nursery Stock at HRI's East Malling
site. The EU is also supporting this project.
— Marker-assisted accelerated breeding
programmes are being developed for woody perennial species together
with extensive genetic analysis of true and model Brassica crop
species.
— Novel classes of biocontrol agents
against insect pests have been identified.
— The production of between 500-700
scientific papers, popular articles and contract reports each
year. Our extensive scientific and corporate achievements are
summarised in successive Annual Reports.
— The number of technical subject days
held each year for growers and other customers has doubled since
1990. This has been achieved in collaboration with the Horticultural
Development Council, the Apple and Pear Research Council and the
Horticultural (now HRI) and East Malling Research Associations.
The first HRI International Scientific Conference was held in
1997; the next one will be in October 2000.
3 May 2000
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