Select Committee on Environment, Food and Rural Affairs Fourth Report


4  MANAGING DEFRA

Integrating Defra

17. One of our consistent concerns has been to monitor the progress of Defra towards becoming a single, integrated organisation.[33] In our inquiry into the 2004 Departmental Report, the then Permanent Secretary said that the process of integration was going "pretty well", given the circumstances of the "unplanned merger" of the Department in 2001, but acknowledged that further work needed to be done.[34]

18. This year, Ms Ghosh echoed the previous Permanent Secretary's views. She said that, on the whole, Defra's progress since 2001 had been "a real success story".[35] She was happy with the level of integration achieved within the Department under her predecessor, particularly at Senior Civil Service level and key Grade 7 posts. However, she noted that more needed to be done to ensure the Department was fully integrated, particularly amongst staff at junior levels.[36] She was confident that forthcoming structural changes within the Department—such as the merger of rural affairs and natural environment with sustainable farming and food into a single Directorate-General—and further use of cross-departmental teams, would "help enormously to make people think holistically".[37] Officials also told us that historic differences in pay between staff of the former Ministry of Agriculture, Fisheries and Food (MAFF) and the Department for Environment, Transport and the Regions (DETR) had now converged.[38] We welcome the steps taken by senior managers to encourage integration in the Department. Defra has made significant progress in improving integration since 2001, particularly at senior grades, and we congratulate the previous Permanent Secretary for his contribution in achieving this. We recommend the Department continue its efforts to improve integration and now focus specifically on this work at junior staff levels.

19. We asked the Permanent Secretary whether some of Defra's traditional "customers"—such as farmers—might get overlooked within the integration process. She told us she had gained the impression that the Department still spent a large proportion of time with traditional "old MAFF customers" compared to some others, such as recreational users of the countryside and large environmental organisations such as RSPB and National Trust.[39] Nevertheless, she emphasised that "first-rate communications" with customers was the key to ensuring that no organisation felt Defra was not listening to it.[40] In the case of farmers, she said: "it is all about persuading the farming community that … their interests and the wider sustainability of the farming, food and rural economic policy in fact is in all our interests".[41] Whilst we welcome further integration of Defra's structure and working practices, it is essential that the Department's links with specific interest groups are not weakened as a result. We are concerned that some of Defra's traditional "customers" might become overlooked as a result of the Department's integration process. We remind Defra of its responsibility to ensure all its customers are fully valued and served by the Department.

Working across Government

20. Much of Defra's work requires the co-operation of other Government departments and agencies. In our last report, we expressed concern about the Department's ability to influence other 'actors' across Government. [42] We said Defra lacked sufficient "clout" to be taken seriously by other departments in framing their key policy decisions, and recommended the Department "continue to work to increase its influence across Whitehall".[43]

21. This year's Departmental Report suggests Defra is making progress in this area. Examples include Defra's review of the Sustainable Development Strategy, published in March 2005, which obliged all Government departments to produce a "sustainable development action plan" by December 2005.[44] Sustainable development was also a cross-cutting theme in the 2004 Spending Review process and incorporated within other departments' Public Service Agreement targets.[45]

22. We questioned the Defra officials further on the issue of Defra's 'clout' and particularly the Department's aim of embedding sustainable development across Government. The Permanent Secretary believed the Department was making progress. She emphasised the importance of the sustainable delivery action plans as a "key tool" in influencing the policy decisions of other Government departments, as they would set clear "baselines and targets" and be monitored by a "strengthened" Sustainable Development Commission.[46] Her "ultimate objective", however, was that Defra could "never have enough clout", and this depended on it "being out there and engaged" and supplying high-quality staff to work on projects with other Government departments.[47] She told us of very positive feedback she had received from, for example, HM Treasury on this point.[48]

23. We wanted to know what other progress the Department had made during the past year in extending its influence. We asked for a tangible example of Defra successfully "embedding" sustainability into the policies of another Government department, such as the Department for Education and Skills (DfES).[49] Defra's Chief Operating Officer told us the Department had worked "very closely" with DfES as part of its public sector food procurement initiative and, as a consequence, "the sustainability agenda around locally-sourced produce … featured prominently within [DfES's] guidance to schools and local authorities in respect of the provision of school meals".[50] Defra's Director-General, Environment added that Defra's joint PSA targets with other departments "in themselves, provide a clout for Defra".[51] Co-ownership of the targets enabled Defra to "put pressure on those departments to deliver their part of the bargain" through a "structure of formal monitoring and reporting".[52] He acknowledged that Defra's influence could sometimes be "rather slow" as there were "plenty of other players and other considerations", but was confident that in the end "we get there".[53]

24. We welcome the improvements Defra has made in the past year in increasing its influence across Whitehall. In particular, we consider the sustainable delivery action plans, which other Government departments are obliged to produce by December 2005, to be a significant development. We urge Defra to ensure that performance against the targets set out in the action plans is monitored vigorously. Given the huge importance of its work on the environment, in particular, we agree with the Permanent Secretary that Defra "can never have enough clout". We therefore recommend the Department to continue to work to increase its influence further across Whitehall.

SUSTAINABILITY WITHIN DEFRA

25. The Departmental Report explains that Defra has been raising awareness of sustainable development amongst its own staff and how it can be incorporated into their everyday work.[54] A package of interactive tools, called thinksustainable, was launched internally in April 2005 and aims to "encourage people in Defra to integrate sustainable development into all they do".[55] In October 2005 the Department also signed up to the Carbon Trust's Management Programme, which aims to help large public and private sector organisations reduce energy use. Defra's website states it is "the first Government department to take this step".[56]

26. We asked the Permanent Secretary to expand on Defra's efforts in incorporating sustainable practices within the Department. She stressed it was extremely important that Defra led by example in adopting such practices:

    Being "best in class" for us is one vital way in which we will influence other departments to follow our lead, across the whole policy-making as well as internal management issues. We need to show that we are a step change better than other departments, to show them the way forward.[57]

27. We congratulate Defra for taking the lead in implementing sustainable practices within the Department, through initiatives such as thinksustainable and the Carbon Trust's Management Programme. We strongly recommend it continues its endeavours to be "best in class". This not only reflects well on Defra in practicing what it preaches, but also, by setting a good example to other Government departments, increases the credibility of Defra in arguing for sustainable practices across Government.

Staffing

STAFF CUTS

28. We noted earlier in our report that Defra aims to meet an efficiency saving target of £610 million by 2007-08, following the Gershon Review. This target includes staff cuts of around 2,400: 800 staff from the core department and 1,600 from the Rural Payments Agency (RPA). Defra states that it is currently "on track" to meet its trajectory for staff reductions in 2004-05.[58]

29. We asked the Department how it intended to maintain staff morale amidst such significant cuts. The Permanent Secretary admitted that it was not easy to "sell to staff the idea that we would be reducing numbers".[59] But she told us of a number of activities that were in operation "around communication and … improving the quality of our leadership and management", to ensure staff were kept informed of developments. She stressed a large proportion of the reductions would be achieved by "a combination of the natural wastage levels … and targeted programmes of early retirement", and that this message was being clearly communicated to staff.[60] Her personal commitment was "to try and engage … and communicate with staff as clearly as possible about what the future holds for them as early as possible".[61] Defra's Chief Operating Officer added that the staff efficiency savings were part of a three-year programme, which allowed for "more sensible planning and communication".[62] He explained that the majority of cuts related to the RPA, and had been anticipated to some extent since 2000, so they had had a long lead time.[63]

30. We understand the difficulties the Department faces in maintaining staff morale amidst significant staff cuts, so we recommend Defra maintains a high level of communication to ensure its staff are appropriately informed of ongoing developments relating to staff reductions. We will continue to monitor the impact on staffing of the Rural Payments Agency (RPA) Change Programme through the work of our rapporteurs on the RPA.

DIVERSITY

31. In our previous two reports on the Departmental Report we discussed the issue of staff diversity. We noted that Defra had set itself targets for the recruitment and retention of female employees, staff from ethnic minority backgrounds and those with disabilities.[64] Whilst we congratulated the Department for meeting its targets at junior grades, we urged Defra to do more in order to meet its diversity targets relating to Senior Civil Service (SCS) and Grade 6 posts.[65]

32. Table 2 sets out the figures provided in this year's Departmental Report relating to the proportion of female employees, staff from ethnic minority backgrounds and those with disabilities in SCS and Grade 6 posts. The table also shows the figures for last year, and Defra's 2005 targets.

Table 2: Proportion of women, people from ethnic minority backgrounds and people with disabilities in Defra Senior Civil Service and Grade 6 posts

  
Women (%)
Ethnic minority (%)
Disabled (%)
  
2004
2005
2005 target
2004
2005
2005 target
2004
2005
2005 target
Senior Civil Service
25
30
30
2
3
4
1
1
3
Grade 6
26
34
30
1
2
4
4
4
3


33. The figures show there has been considerable improvement in the last year in the proportion of female employees in senior grades. The target of 30% of female employees in SCS grades by 2005 has been met. However, the Departmental Report shows very little change in the figures for staff from ethnic minorities and people with disabilities.[66] In its supplementary written evidence, Defra told us that improvements had been made since the publication of the Departmental Report. Recent data showed the 3% target relating to people with disabilities had now been met within the core Department, and there had been "substantial progress" against the core Department's target for ethnicity.[67] Defra explained that the inclusion of staff data for the Executive Agencies had a "downward influence on the figures".[68] There was "greater under-representation of minority groups" in these organisations due to their "size, location and specialist nature which impose restrictions on the pools from which they can recruit staff".[69] The Department also said there were problems of "under-declaration", with staff failing to complete a disability or ethnicity questionnaire.[70] It told us a number of measures were being introduced to improve declaration rates, such as the introduction of self-service elements to the electronic human resources system, which would allow individuals to declare a disability "without reference to managers or Human Resources staff". [71]

34. We congratulate Defra on meeting its target of 30% female employees in Senior Civil Service (SCS) level grades by 2005, and are pleased that progress has been made since the publication of the Departmental Report in improving the proportion of SCS level staff from ethnic minority groups and with disabilities. Nevertheless, we remain concerned at the under-representation of minority groups in Defra's Executive Agencies, when compared to the core Department. We recommend Defra focuses specifically on improving the proportion of SCS level staff from these groups in its Executive Agencies.


33   Environment, Food and Rural Affairs Committee, Tenth Report of 2001-02, The Role of Defra, HC 991; HC (2001-02) 969; HC (2002-03) 832; HC (2003-04) 707. Back

34   HC 2003-04) 707, Q 1 Back

35   Q 1 Back

36   Q 3 Back

37   Q 3 Back

38   Q 5 Back

39   Q 4 Back

40   Q 4 Back

41   Q 4 Back

42   HC (2003-04) 707, Recommendation 8. Back

43   HC (2003-04) 707, Recommendation 8. Back

44   Defra, Departmental Report 2005, pp 37-38. Back

45   Defra, Departmental Report 2005, pp 37-38. Back

46   Q 54, Q 57 Back

47   Q 49 Back

48   Q 49 Back

49   Q 55 Back

50   Q 55 Back

51   Q 50. Defra shares targets with the Department for Trade and Industry (PSA 2: climate change) and the Department for Transport (PSA 2: climate change (since the Spending Review 2004) and PSA 6: air quality). Back

52   Q 50 Back

53   Q 50 Back

54   Defra, Departmental Report 2005, p 43 Back

55   Defra, Departmental Report 2005, p 43 Back

56   Defra signs up to the Carbon Trust's Carbon Management Programme, Defra news release, 26 October 2005, www.defra.gov.uk/news Back

57   Q 54 Back

58   Q 40 Back

59   Q 40 Back

60   Q 40 Back

61   Q 40 Back

62   Q 40 Back

63   Q 40 Back

64   HC (2002-03) 832, para 14; HC (2003-04) 707, para 24. Back

65   HC (2003-04) 707, Recommendation 12. Back

66   Data taken from Defra, Departmental Report 2005, figure 49, p 271 Back

67   Ev 46, para 39 Back

68   Ev 46, para 39 Back

69   Ev 46, para 39 Back

70   Ev 41, para 39 Back

71   Ev 41, para 39 Back


 
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Prepared 20 December 2005