Select Committee on Environment, Food and Rural Affairs Fifth Report


4  New Integrated Agency

28. Lord Haskins's recommendation to establish an Integrated Agency, through the merger of English Nature, Defra's Rural Development Service and some functions of the Countryside Agency, was accepted by the Government. The Rural Strategy envisages the new Integrated Agency will be "a new large, powerful and independent statutory public body for protecting and enhancing the natural environment, biodiversity and landscape while realising the benefits for people, through improving access and recreation. […] It will have around 2,300 staff, in national, regional and local teams, in due course in co-located offices, with common pay and terms and conditions of service".[49]

Balancing priorities

Sustainable development remit

29. Defra's Rural Strategy states that "the Integrated Agency and its constituent parts, both from 1 April 2005 and when formally and legally established through statute, will have a remit to carry out its functions within a sustainable development context".[50] However, the Wildlife Trusts questioned this stipulation and suggested it would not be prudent "to include reference to sustainable development in any new law to establish the new Integrated Agency until these issues are clarified further".[51] Similarly, the Campaign to Protect Rural England (CPRE) argued that it was not possible to attach a single common understanding of the term 'sustainable development', and, as such, "any legislation should avoid using it statutorily to prevent confusion and misdirection" of the Integrated Agency and its associated activities.[52]

30. The draft NERC Bill provides more clarity as to the Government's intentions regarding the sustainable development remit of the Integrated Agency. Clause 2(1) of the draft Bill sets out that "the Agency's general purpose is to ensure that the natural environment is conserved, enhanced and managed for the benefit of present and future generations, thereby contributing to sustainable development".[53] That the agency will only be expected to contribute to sustainable development, rather than having a duty to deliver it per se, was thought by the Royal Society for the Protection of Birds (RSPB) to be correct. The RSPB felt that this wider responsibility should be "the sum result of overall government activity, at national, regional and local levels".[54]

31. The Country Land and Business Association (CLA) argued that sustainable development relies on the economic viability of land-based rural businesses, and was therefore concerned that the draft Bill places no obligation on the IA to have regard to sustainable development as a whole. "On the contrary, the clause assumes that management of the natural environment will itself support economic and social well being." The CLA argued that the new Agency should have a specific purpose to contribute to the achievement of sustainable development.[55]

Environmental remit

32. Witnesses differed over how the Integrated Agency should prioritise the environmental elements of its responsibilities. The Country Land and Business Association felt the Integrated Agency should have "an economic and social remit to underpin its environmental objective", so that it would not be "identified very closely with environmental objectives only". The CLA made similar points in evidence on the draft Bill.[56] The Countryside Agency also highlighted concerns "that the Integrated Agency will be perceived to be entirely an environmental agency".[57] In evidence on the draft Bill, Countryside Agency witnesses seemed reasonably sanguine that environmental concerns would not overwhelm other issues such as access.[58]

33. The opposite case was presented by CPRE and RSPB, who feared that if the objectives of the new agency were not prioritised, it could lead to irreconcilable conflict. Both organisations believed that, in the event of a conflict between the delivery of the different elements of the Integrated Agency's core purpose, there ought to be a clause in the legislation which requires the agency to give priority to the natural environment, so giving effect to the 'Sandford Principle', originally established in the context of National Parks.[59] Section 11A of the National Parks and Access to the Countryside Act 1949 states:

    In exercising or performing any functions in relation to, or so as to affect, land in a National Park, any relevant authority shall have regard to the purposes specified in subsection (1) of section five of this Act and, if it appears that there is a conflict between those purposes, shall attach greater weight to the purpose of conserving and enhancing the natural beauty, wildlife and cultural heritage of the area comprised in the National Park.

34. The Environment Agency (EA) commented on the "perceived risk that separation of funding and delivery into separate social/economic/environmental streams could mean any one body could focus only on one element".[60] EA felt that that, in practice, this risk will be addressed by the Rural Strategy provision that all bodies take account of all elements to achieve sustainable development and work closely together. EA noted that, by its definition, "the Integrated Agency will focus on the biodiversity, landscape, geology and access but that does not mean it will not pay due regard to social and economic issues".[61]

35. Clause 2 of the draft NERC Bill sets out the general purpose of the Integrated Agency. We discuss the details of this part of the draft Bill in Chapter 12 of our report.

Relationship between the Integrated Agency and the Environment Agency

36. Had the remit of the Rural Delivery Review not excluded consideration of the Environment Agency, then, as Lord Haskins confirmed, "one of the options might have been to give the Environment Agency total responsibility for the environmental agenda".[62] CRE felt it was an "over-simplification" for Lord Haskins to argue that the Environment Agency deals with regulation, while the new Agency delivers 'incentive payments'.[63] CRE thought this could lead to "an institutionalised divide between one organisation that finances environmental 'public goods' and another that has to regulate environmental 'bads'".[64]

37. CRE argued that, if its idea of a single 'Natural Resources Agency' was rejected, there should at least be "a clear framework for collaboration at the regional level between the Integrated Agency and the Environment Agency".[65] The Minister broadly accepted this point, acknowledging that "there needs to be a very close co-operation between the two and clarity of who does what".[66]

38. Baroness Young of Old Scone, Chief Executive of the Environment Agency, admitted there was "potential for confusion" when seeking to differentiate between the roles of the Environment Agency and the new Integrated Agency.[67] She said it was "going to be a very rich relationship" and stressed the need for the boundaries "to be written down very carefully otherwise we could tread on each other's corns".[68] The Environment Agency reiterated this point in evidence on the draft Bill: the new Agency "must have clear and distinctive purposes which do not unnecessarily overlap with those of the Environment Agency, but which enable it to use its powers to work with us to protect and enhance the environment".[69]

39. However, English Nature played down the importance of this issue, reminding us that "these are not new relationships". [70] It said that it was "essential that in any draft legislation there is clarity about the purpose, and functions [of the Integrated Agency], and that this is distinct from, but complementary to, the Environment Agency remit".[71] English Nature also told us about the "aim to revise and strengthen current memoranda of agreement to form the basis for co-operation".[72] The analysis carried out to help with this process had confirmed that there are "no significant clashes or duplications envisaged between the Integrated Agency and the Environment Agency. Nor are there significant gaps which require either organisation to take on substantial new functions or roles in order to deliver its contributions to natural environment protection".[73]

Independence

40. The announcement that English Nature was to be subsumed into the new Integrated Agency attracted some criticism, with press reports speculating that it might be Government's "revenge for the watchdog's successful opposition to GM crops".[74] The environmental organisation, Friends of the Earth, was adamant that what was needed was "a wildlife watchdog, not a Government poodle". It felt that the "laws setting up the new body will be the real test of the Government's intentions".[75]

41. Many witnesses welcomed the Secretary of State's confirmation of the independent status of the Integrated Agency as a non-departmental public body.[76] English Nature felt this assurance was absolutely critical and was keen to ensure the independence was not eroded in the process of drafting the legislation.[77] Evidence from the CPRE seemed to capture the importance witnesses attached to the independent status of the Integrated Agency. It said:

We wish the legislation to make it blindingly clear that we have a bone crackingly independent force … that it has a constitution and a council which is not influenced beyond the expertise of those appointed to it: that it has a seamlessly good connection with its existing expertise and the different elements which are being brought together and that it should have an independence of research commissioning.[78]

42. The Minister argued that the Integrated Agency would be independent, in the same way as the Environment Agency and English Nature. The Rural Development Service element of the new Agency would in fact be more independent than before. He stressed that the Agency would not be a body "which in detail would be interfered with by the Secretary of State".[79] Provisions of the draft NERC Bill allow the Secretary of State to give wide-ranging guidance and directions as to the exercise of the Integrated Agency's functions.[80] The draft Bill also gives the Secretary of State power to appoint any number of members to the Agency, after consulting the Chairman.[81] These powers were seen by some witnesses as potentially compromising the agency's independence.[82] We consider these aspects of the draft Bill in more detail in Chapter 12 of our Report.

43. We welcome Ministers' confirmation of the independent status of the Integrated Agency as a non-departmental public body, as in order for it to be successful, it is important that it has a strong independent voice and credibility among its stakeholders. The independence of the new Agency must be clearly enshrined in its establishing legislation. We examine how this can be reflected in the text of the draft Bill in Chapter 12 of our report.

Resources

44. English Nature stressed the need for the Integrated Agency to be "sufficiently resourced to continue the progress towards meeting a number of the Government's environmental targets and objectives".[83] It was concerned that the potential cost savings, which could be achieved as a consequence of the integration, should not come to be regarded as a principal driver of the change process. English Nature concluded by saying that "penny-pinching now would doom the future of a successful integrated agency".[84] CPRE argued that the Agency needed to be "resourced satisfactorily to achieve all its statutory purposes". In evidence on the draft Bill, English Nature told us that the budget for the Integrated Agency had not yet been set, but the plan was for budgets to be "carried through" from those parts of existing bodies that were being transferred to the new Agency. There were "clear opportunities for efficiency savings to be gained" from the merger of the different bodies, including a reduction in the number of senior and middle managers, back office efficiency gains and estate rationalisation. For this reason the agreed efficiency targets, though demanding, were achievable. Programme budgets were "not necessarily going to be squeezed".[85]

45. We agree with the Government that it should be possible to realise some efficiency savings when setting up the new Integrated Agency, as overheads from the different elements that make it up can be streamlined. However, the new Integrated Agency must have sufficient resources to carry out the tasks it has been set, and should not be expected to deliver the level of programmes it has inherited on a reduced programme budget. The Government should also publish a detailed breakdown of how it proposes to use the Integrated Agency's establishment budget, taking into account its requirement to slim down Defra's workforce and simultaneously fund the birth of the new Agency and associated developments.


49   Department for Environment, Food and Rural Affairs, Rural Strategy 2004 Fact Sheet: Integrated Agency in England, (London, 2004), p 1 Back

50   Department for Environment, Food and Rural Affairs, Rural Strategy 2004, (London, 2004), p 36 Back

51   Ev 106 Back

52   Q 263 Back

53   Department for Environment, Food and Rural Affairs, Draft Natural Environment and Rural Communities Bill, Cm 6460, February 2005, p 2 [emphasis added] Back

54   Appendix 3, para 2.1.1  Back

55   Appendix 11, paras 3, 8, 13 Back

56   Ev 40; and Qq 85, Appendix 11, paras 9-10 Back

57   Ev 59 Back

58   Qq 440-42 Back

59   Ev 98-99, Appendix 3, para 2.1.5 Back

60   Ev 26 Back

61   IbidBack

62   Q 135 Back

63   Ev 8; Q 135 Back

64   Ev 8 Back

65   Ev 11 Back

66   Q 297 Back

67   Q 37 Back

68   Qq 37-38 Back

69   Appendix 18 para 2.3; and Qq 353-56 Back

70   Q 213 Back

71   Ev 85 Back

72   IbidBack

73   IbidBack

74   "Ministers retreat from plan to scrap countryside watchdogs", Independent on Sunday, 9 November 2003, p 16 Back

75   "England's wildlife watchdog threatened with extinction", Friends of the Earth press release, 21 July 2004 Back

76   HC Deb, 24 February 2004, col 11WS Back

77   Q 202 Back

78   Q 267 Back

79   Qq 547-50 Back

80   Clauses 15 and 16 Back

81   Schedule 1, para 3(1) Back

82   E.g. English Nature, Appendix 5, para 15, Wildlife Trusts, Appendix 17, para 18 Back

83   Ev 75 Back

84   Q 202 Back

85   Qq 486-93; Appendix 5(a), paras 5-6 Back


 
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