Further Supplementary Memorandum submitted
by the National Forest Company
DEPARTMENTAL COMPREHENSIVE
SPENDING REVIEW:
THE NATIONAL
FOREST COMPANY
The Rationale behind The National Forest Company
The National Forest Company (NFC) was established
as a company limited by guarantee and as a Non Departmental Public
Body in April 1995. This followed considerable research and deliberation
as to the nature of the organisation that should be set up to
undertake the implementation of the National Forest Strategy that
had been approved by Government following wide public consultation.
These investigations were undertaken by the
Development Team specifically employed by the Countryside Commission
to plan and test the feasibility of a new National Forest in the
Midlands. Work was commissioned by the Development Team from KPMG
Management Consulting to analyse the various organisational options
and this was incorporated into the Business Plan submitted to
Government in November 1992.
The KPMG report identified the functions proposed
for the organisation and the powers it would need to fulfil them.
The specified functions could be grouped into four generic categories:
— operation of the National Forest
Tender Scheme; and
— fundraising and trading.
It was concluded that no existing public or
private agency had the necessary remit or powers to embrace the
wide range of functions and interests that the National Forest
was to encompass in the implementation of the Strategy by the
means envisaged. A new organisation with the specific remit of
realising the National Forest was recommended and this recommendation
was accepted.
The not-for-profit company, limited by guarantee,
was seen to offer the best way to ensure the National Forest organisation
focused clearly, and without distraction, on achieving the Forest
objectives. This was seen to be a powerful argument in the light
of the decision that the organisation should operate principally
in an enabling and facilitating capacity. It was also seen to
offer the potential to be more flexible and light-footed than
a statutory body. The disadvantages were seen to be in discharging
the important public policy functions and the question of public
accountability.
It was proposed that the new organisation should
be funded and facilitated in its work from a variety of sources
in the public, private and voluntary sectors but that its core
functions and the Tender Scheme it was to pioneer and administer
would be directly supported by Government. Clear lines of accountability
were therefore required and thus NDPB status was conferred with
direct responsibility to the sponsoring Department, the then DoE,
now DETR. The Secretary of State became a Member of the Company
together with the Minister of Agriculture as Minister with responsibility
for forestry in England. Thus the necessary public accountability
was ensured.
20 December 2001
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