Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Examination of Witnesses (Questions 180-200)

9 NOVEMBER 2004

PROFESSOR PHILIP LOWE, MR RICHARD WAKEFORD AND MS MARGARET CLARK

  Q180 Mr Jack: It sounds to me—and Mr Wakeford may want to answer this—as if you have a lot of expertise in the delivery of innovative ideas to regenerate and refresh the countryside are giving what appears to be a muddled, ill-thought out, badly-designed policy a parting thumbs down. Is that a fair summary of where you stand on this?

  Mr Wakeford: I would not have used those words.

  Q181 Mr Jack: I know because those are my words but would you agree with them?

  Mr Wakeford: I am not going to agree with them. I am going to use the word "challenge" again, if you like, because there is a real issue that some of the investment in rural sustainable development is made by bodies that are national bodies and that have national programmes which may or may not be carved up into regional priorities. Others, like RDAs, which are focused on particular regions, and others, as Philip was saying, like local authorities who have every right to decide what priorities are locally, are operating on a less than regional basis. So how the government offices are going to broker this is a challenge and it is untried, but the Government is intending to try it because it has actually set up and announced a series of pathfinders to test how this could work before full implementation. We have highlighted—which I think is a fair thing for us to do—that this is an area   of some difficulty. The Government has acknowledged that and is putting a pilot into place in order to test that. I would also like to go back to something else that Chris Haskins said which we feel quite strongly about in the Countryside Agency, from the perspective of the customer. A couple of weeks ago, I went to see a very successful new village hall development in Brockweir in Gloucestershire. The promoter of it in that community, a community leader, explained to me where the money had come from. Some of those funds came from within the Defra family, for example the Rural Enterprise Scheme, but other funds came from other sources which are well outside the scope of Chris Haskins' review. If you are looking for a simpler system for the customers on the ground, we are making some progress in the Rural Strategy but the local authorities have still got their own approaches, the Lottery bodies have their approaches, different government bodies (including the DTI in the case of this village hall because it had a magnificent energy-saving roof, I have to say) and various charitable trusts all have different funding rules and approaches and there are some overlaps between them. Chris Haskins' review, if we are looking at it from the perspective of rural customers, needs to be seen as only a start. There is a considerable agenda here for the New Countryside Agency (using our wonderful diagram) to continue to address because success in achieving sustainable development in rural areas is not only about Defra's programmes, which are relatively small, it is about all the other programmes of government. That is where rural-proofing, one of the major roles of the New Countryside Agency, is absolutely critical. That is why it is important for the New Countryside Agency to have the statutory remit in order to be able to go into those areas and to be recognised as the Government's statutory adviser reporting to Parliament and having that kind of arm's length critical friend role that I believe the Countryside Agency has performed well over the last five years.

  Q182 Mr Breed: You were listening when we were taking evidence from Lord Haskins when we broached the money aspect. As a sort of lean and mean watch dog you would not want to have too much money to be fat and lazy, so is £10 million too much?

  Mr Wakeford: It is a little bit less than we would have liked but we believe that we can deliver a great deal with £10 million.

  Q183 Mr Breed: Right, but you could do with less?

  Mr Wakeford: There is a significant change going on here because the challenge for the New Countryside Agency to be successful is to have really good communications and networks with people who are delivering on the ground right the way across the country. We do not want it to be a London-centric body influencing policy alone. Until now the Countryside Agency has had a comprehensive set of regional offices and some sub-regional offices across the country which has enabled us to be at least regional as well as national. The challenge to the New Countryside Agency is to be effective without that set of offices on the New Countryside Agency side. The regional offices will continue to be in place for the integrated agency functions but not for the New Countryside Agency. So we are going to be trying out some new ways of working but we have a particular challenge there now and until we have got under way it is going to be difficult to know whether we are strapped for cash, whether we are adequately catered for or whether we are flush for funds. What Chris paid credit to us for at the end of his evidence was the progress that we are making so that we can get the New Countryside Agency in particular off the ground within the statutory framework of the Countryside Agency from next April. So a couple of years before it becomes a formal reality we have had a really good chance to show what value for money we can deliver with that budget .

  Q184 Mr Breed: So £10 million a year for the first two years and then a review?

  Mr Wakeford: We are reviewed every year.

  Professor Lowe: Our sense is we want to get the functions and responsibilities right and resources are a secondary issue. Within that, we are just keen that we have sufficient resources to be able to be seen as expert and authoritative. So there is an element that we have got to do in terms of making sure we are gathering research. There is an element in which we have got to make sure we are very in touch with rural opinion and that we can search out pockets of disadvantage.

  Q185 Chairman: Chris Haskins told us that there is a lot of goodwill around and that you are all working generally in the right direction. That is my general impression. How long can this go on like that? What is the timetable for change? When will this process finally be over?

  Mr Wakeford: What I am interested in is what Chris did not say when he brought his little dose of "this is how it works in the private sector" It is generally not enough to let people just push towards solutions, if I can put it that way. I and my fellow chief executives for the integrated agency are pushing for a confederation from next April and an integrated agency after legislation. But generally in business what you also do is put someone out there who is going to pull as well, somebody who is going to have some vision. That is why we have made the point that it is a pity that there seem to be conventions in place that prevent the appointment of a shadow chairman of the integrated agency until such time as the second reading of the legislation, especially given the confederation where we are coming together to be half way there from next April. In terms of the timetable that really is something that you are going to have to ask the Secretary of State on because you have—

  Q186 Chairman: Just help me, you are managing things at the moment. If you are managing things you have got to have a timescale in mind. What is the timescale that you have got in mind?

  Mr Wakeford: The project that we are implementing envisages a New Countryside Agency created within the statutory powers of the Countryside Agency next April. It envisages the creation of a confederation between the Countryside Agency, what we will call the landscape, access and recreation division, English Nature and the Rural Development Service from next April. It is a process of evolution, because that is something where we will get closer with closer working. The current plan—and it does depend on the ability to manage the legislative programme, which is a government-wide thing about government priorities—leads towards that legislation coming into force in early 2007. At the moment, I would say that there has been some impact on the delivery of programmes because of the uncertainty. A number of people are less certain about what they are doing, less confident about making commitments in connection with programmes that have been transferred to the RDAs, and so on. That is inevitable. I am keen to get that uncertainty out of the way, which, again, is what Chris was saying, so then people can work within a clear framework.

  Q187 Chairman: Put slightly differently, despite the best endeavours, people working together, there is a bit of planning blight because of the change process.

  Mr Wakeford: I think that was inevitable.

  Q188 Chairman: You are going to move, are you not, to a "lagging" region or a "laggard" region? I am not sure I would like to be called a "lagging rural area". What is the timetable on this?

  Ms Clark: We do not have a precise timetable. The Secretary of State said that in due course the headquarters of the New Countryside Agency should move to a lagging rural region outside the South East. We clearly need to have a proper location review. What we are doing at the moment as a first stage is a piece of benchmarking: looking at   what other similar bodies do. Where are they   located? How do they manage the work of influencing both central government and having a consumer interest? We are looking at that, and we will be having a proper review and testing different locations against that. Since, clearly, the major customers for the New Countryside Agency are going to be government and policy makers, most of whom are situated in London, we will need good communications with London, but we are going to have customers outside London as well, so I do not think it is an easy one to crack.

  Q189 Chairman: I do not think it is going to be easy, and I do not think it is easy when you are not going to have any regional links either. You are going to be this one office and you are going to have what I think you call the interlocutors at regional and local level. What does that mean?

  Ms Clark: I am not sure I used that word. It is not easy. I am not sure it necessarily follows that we only have one office. It may be that we also need a small London office. I do not think it necessarily means in this day and age that everybody has to be located in one office. You can use lots of other methods for having people who are working for the agency, who come into the office at different times in the week, or who work from home. Clearly, we are not going to have a series of regional offices, we are not going to have a regional presence, which means we have to find new and different ways of engaging with regional partners and local partners. One of the ways of doing this will be through Board members. We see—and the Board themselves have discussed this—Board members being more visibly engaged with the New Countryside Agency's overall agenda and work nationally, regionally and locally. We think we will need to have closer relationships than we have at the moment with the regional rural affairs fora. We will have to use other people to act as our eyes and ears on the ground. I hate to use this word again, but it is challenging and I think it will be different in different areas. There will not be one prescriptive model for how we will work.

  Q190 Mr Jack: Let us stop for a moment on the definition of "rural". It is a word we keep talking about. In September you published a document entitled "New definition of urban and rural areas in England and Wales". It is not exactly an easy read when you start looking at the detailed statistical definitions that you try to use to enable us to work out what is "rural". The document contains lots of different maps with different results according to the different formulae. Have you come to a conclusion yet? Is there any easy way of defining what on earth is rural?

  Mr Wakeford: There is not an easy way but there has to be across government as consistent a way as possible so that the data that we are using from the different delivery and different services can be analysed broadly on the same basis.

  Q191 Mr Jack: Am I right in saying at the moment that, notwithstanding the valiant attempt you have made to come to a definition of these matters, there is not one universal, across-government formula for "rural" at this time?

  Mr Wakeford: There is much more of one than there was before.

  Professor Lowe: There used to be one. We set up our State of the Countryside Report—that was one of the big developments that the Countryside Agency pioneered—which revealed the inconsistency, and ministers became alarmed at that, that people could make different arguments about the nature of a rural problem or rural deprivation or whatever. This was a project to come up with a consistent definition. It   is not easy; within what you might call a predominantly rural district, there might be a large town.

  Q192 Mr Jack: Is not the real reason that in the past there has been a mechanical distribution of money that has to be made to what is thought of as rural Britain, and so that you do not get everybody outside the obvious urban areas, you have to find a way of defining the people who might be able to qualify for rural development schemes?

  Professor Lowe: Yes.

  Q193 Mr Jack: The reason I stop on this for a second is that, if we are talking about regenerating, sustainability and conservation, I find it much easier to look at rural Britain from the point of view of defining it by everything that is not what I would have any difficulty in defining as urban Britain. That may be too broad-brush, but do you not think you have to sort this out? If you go into my constituency, which is what I would call semi-rural, two-thirds of the land area Fylde is farm landscape. It is typified by small villages, one or two small country towns, or something that lies between country towns and villages, and the people in those areas exhibit all the characteristics of people who live perhaps in the sparser areas: strong affinity to the local community, village hall the centre of life, church important, etc. Yet under the definitions that we might be looking at   here, they are ruled out of being in "the countryside"; they are not counted as rural because, if you take a broad brush, sparsity approach, as you have done here, they would not necessarily qualify. If we are going to maximise the economic potential and therefore deal with the consequences of that maximisation exercise, taking into account your sustainability arguments and English Nature's concerns about the environment, are we not in some danger here?

  Mr Wakeford: This Committee—and I have been giving evidence to you in particular for quite a long time on this—has several times in the past said clearly that there needed to be a single rural definition. That work was going on and has been concluded. It was concluded in an overall approach which Defra and the ODPM, the Office of National Statistics and the Countryside Agency have agreed and it has been launched. That is now being applied across government. It may have a lot of words on the page, but the general approach is actually much as you have described. If you live in something which is a reasonably cohesive urban settlement of more than 10,000 population, you are not rural; if you live in other areas, you are generally classified as rural. The significant advance I would say is that during the Eighties and Nineties the Rural Development Commission needed to make these sorts of measurements, but at that time the power of computers and post-coded data was nowhere near strong enough to be able to measure most things on that kind of detailed basis. Often needs had to be estimated at local authority level, characterising them as rural or remote rural, which is a rather crude way of actually distributing funds. So we are making great progress here. We have now got to the point, I would say, where the grain of the science has become so fine that if we are not careful, that drives the policy as distinct from the way in which people are living their lives, which you are also hinting at. When you start to measure rural employment, do you measure rural employment by where the job actually is or do you measure it by way of where the worker lives who has that job? There is a whole series of different functions about the countryside, in relation to entertainment, access to health services, police service and so on, where rurality questions need to be asked in a much more careful way. I think science is helping us here and we are making progress. In a sense, what you have there, because it is a technical definitional document, may need a plain man's guide to enable those who look for simpler solutions to be able to describe it, but your description of it was pretty close to what we have been trying to achieve.

  Ms Clark: May I just add something? The other positive benefit to having an across-government definition is that one of the problems in monitoring rural proofing and the application of policies across government is that, because there has not been an agreed definition, a lot of the data which is collected by other government departments—the Department of Health, Home Office or whatever—is very difficult to disaggregate. So you do not actually know whether they are achieving their PSAs, or other targets differently in urban, rural or suburban areas. The new rural definition now allows most government departments who have signed up to being able to tag their data to find out how they are performing in rural areas. That is quite an achievement, because that has held back their own ability to judge their success—not just as a stick, but to understand what the data are showing them.

  Q194 Mr Jack: Can you send us a note of which departments are in and which are out? I want to move on to the name of the new agency. What do you think it should be called if it is to communicate the broadness of its area of responsibility and not just be seen as focusing, for example, on one aspect of the countryside, namely the environment?

  Mr Wakeford: We will send you a note. Can we just be clear whether the question is about the integrated agency or about the New Countryside Agency?

  Q195 Mr Jack: The integrated agency.

  Professor Lowe: We are keen that, whatever the name is, it conveys the notion that this is not a body which is just about environmental protection. It is a body which is going to be responsible for streamlining huge amounts of payments to farmers and land management, so we want to convey the sense that it is a sustainable development agency as well as an environmental protection agency. We are keen that any name should really reflect that critical identity. We have not come up with a favoured name. I sense it is one of those things that, if we get the agency right—and we welcome it as a development—it will grow into its name, if it is doing the right things and is recognised to be doing the right sort of functions.

  Q196 Mr Jack: So we will recognise it when we see it, will we?

  Professor Lowe: Hopefully, you will recognise that it is doing the job.

  Mr Wakeford: The process of branding is generally one where you identify to start with what you want the body to do, and the name comes after that, rather than starting with the name and then trying to fit the functions within it.

  Q197 Mr Jack: Let us just talk about the boundaries between the integrated agency, the Environment Agency and the Forestry Commission. From your analysis of the proposals, is "boundaries" the right word to use or should we be using something fudgier like "areas of responsibility"? Immediately you start looking, they all impact one upon another, and yet they are clearly not part of the new integrated structure. The Forestry Commission in one sense, in the delivery end of it, maintains its own identity; the Environment Agency clearly represents what it is doing now; and then there is the integrated agency. Give us your take on these boundary issues.

  Professor Lowe: There has got to be cooperation, very close cooperation, both at the very local level and at a regional level. In terms of tackling things like the land and water interface, it is a critical area where the two have got to cooperate. I do not think I would quite go along with Chris's distinction that one is a regulator and one is essentially not—I forget what he referred to the other one as.

  Mr Wakeford: No, but also he made the point that you should have a separate body which is a regulator and a separate body that is paying incentives but, if you have a single body that has both those options at hand, you can actually secure the outcomes with better value for money than if you have those options in separate bodies. We have discussed that and come to a different view than Chris Haskins on that.

  Professor Lowe: To a certain extent the new agency was critical about it. It is bringing together certain regulatory functions about the land which the old Countryside Agency had, and English Nature had, and this huge flow of money under the second pillar of the CAP, and bringing that together and combining it in a very powerful way, which, hopefully, will stop the steady, relentless decline of the last 50 years in biodiversity and countryside character. It is also important that that money be used to help overcome some of the critical regulatory functions that the Environment Agency faces. The fact is that now the majority of diffuse pollution in England is through agriculture. We have got to have that money that is being made available through the new integrated agency to solve not just the biodiversity and landscape issues but also to help deliver on a joined-up approach to land and water.

  Q198 Mr Jack: If you take the river basin proposals under the Water Framework Directive, by definition, they are going to bring all the players that we have discussed round a table, because they are all going to have to deal with different aspects of the requirements of the Water Framework Directive. Does that mean that there needs to be some formal structure that links together the key players? What you said, Professor Lowe, was that there has got to be lots of cooperation. That means "Shall we ring somebody up? Shall we have a meeting?" as opposed to every quarter the heads of all of the bodies sitting down round a table to discuss matters of common concern. Which of those approaches would you prefer?

  Professor Lowe: You could be either very prescriptive or you could do what I was saying earlier about this being a rural strategy, say that government, for spending this amount of money, wants effective delivery of the Water Framework Directive and in essence, the new integrated agency and the Environment Agency have to cooperate to ensure that.

  Q199 Mr Jack: You are almost advocating a bidding-in process, where the government has a series of tasks that it wants and a series of pots of money which it is prepared to make available, and it is up to the bodies who can deliver to come together and put a proposal.

  Professor Lowe: Yes.

  Mr Wakeford: That was part of a paper which we produced a couple of years ago about the future of agri-environment funds. I want to go back to your original question where you talked about areas of responsibility, because I like that phrase. When the government comes to draw up the legislation, it will probably end up with an integrated agency and an environment agency which have broad areas of responsibility where there will not be a clear boundary, and I think that is quite important, because when it comes to the delivery of things like the Water Framework Directive implementation, which is some way away, if we want to fine-tune that delivery, we need to be able to actually pick and choose between those two agencies to see who is going to lead on particular things. Having said that, it seems to me there must also be a clear accountability, so that when you call the chief executive of the integrated agency or the chief executive of the Environment Agency, they know which aspects of those they are responsible for delivering. So there is an accountability role. To me, the legislation needs to be broad, with some flexibility, and the Secretary of State's management statement which she then gives to the different bodies needs to make clear how the bodies should work together.

  Q200 Chairman: We are going to have to stand you down now, because we have to go and vote. Before you all go, could I wish the transition well and, more particularly, Richard, wish you well. As you have pointed out, you have been to see us many times over recent years. We have not always agreed but we have always had a good discussion. The best of luck with your new job.

  Mr Wakeford: I thank the Committee very much.

The Committee suspended from 5.09 pm to 5.25 pm for a division in the House







 
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