Supplementary memorandum submitted by
the Department for Environment, Food and Rural Affairs
Question 23 (Mr Edward Leigh):
National Fallen Stock Company
The National Fallen Stock Company is a "not
for profit", farmer-led organisation. It delivers a national
service for the collection and disposal of fallen stock to help
farmers and horse owners comply with the regulations which prevent
on-farm burial of dead stock. It is funded through subscriptions
from farmers, with a Government contribution of 10% of the cost
of collection (increased to 20% from mid-February to mid-May 2008
during the spring lambing and calving period).
The Government's contribution will cease from
November 2008. From 1 April 2008, the Company's administration
has been outsourced, after proper competition, to the private
sector. Prior to that it received administration support from
the Rural Payments Agency.
Further details are available from its website:
http://nfsco.co.uk
Question 60 (Nigel Griffiths): National Forest Company
Defra's shared services organisation came into
existence in April 2007 and has focused in its first year on the
stabilisation and improvement of services to its initial customers
with the Defra Network (including the Core Department, Animal
Health (Executive Agency), and Natural England (NDPB)).
We are now discussing migration to shared services
with other network bodies, but have as yet not spoken with the
National Forest Company or the Horticultural Development Council
about this.
The benefits of buying services from a shared
service organisation vary, according to size and governance arrangements.
For our own Executive Agencies, we have a policy that they will
take service from Defra's shared service organisation, unless
there is a better value alternative. Natural England (an NDPB)
is also already a customer.
Our analysis indicates that the largest benefit
to the taxpayer arises from migrating Agencies with larger transactional
volumes, particularly where their need to upgrade systems is most
pressing. For other bodies listed in the NAO Report, their financial
and statutory independence from Defra (the NAO reported gross
expenditures, not the body's contribution from Defra) will be
probably the determining factor in their decision. We would need
to decide on the value for money of migrating very small service
activities within the shared service organisation.
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