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Mr. Benyon: The amendment gives the Minister an opportunity to tell the Committee a little more about the structure of the new organisation, particularly at the higher levels. We have heard about the appointment of the chairman, but I do not know what the process was or what skills he will bring to the job. We have not had time to find out much about him, and I look forward to the Minister enlightening us. We also want to know the make-up of the board. We want to be sure that it has a broad range of skills that reflect the demands made on the new organisation.
There is unhappiness among the MFA staff about the degree of consultation on the move to the new headquarters. That is a matter of great concern, as is the lack of incentive for the staff to move. It is crucial to the success of the organisation that as many staff as possible make that move. They are highly skilled and many have years of experience, but they are being required to make a major, life-changing move to a different part of the world—one of which many have no knowledge and with which many have no connection. It is important that their concerns are met.
The credibility of the organisation will be measured largely by its ability to hit the ground running. I am concerned that we do not have the correct number of people in place at this stage. Not enough people have expressed a willingness to move to Tyneside, and we do not know how the organisation will be structured at the highest level or what more can be done to encourage the many people who have contributed to marine and fisheries management over the years to join the new organisation.
Nick Ainger: I wish to raise my concerns about the resourcing of the MMO and its staffing, and about the Welsh Assembly Government Departments that will take on the responsibilities of the MMO in Welsh waters.
I wonder whether the MMO will have sufficient staffing resources, with the right skills, to deal with such a series of applications. The worst thing for the renewables sector is unnecessary delay. It is good to get the consent process working well, ensuring that the environmental impact assessments are completed. The sector understands that, but it is concerned that inadequate staffing resources will lead to unacceptable delays, particularly when dealing with offshore projects. Time is of the essence. Basically, we do not want things being built at sea in the middle of winter, and almost 12 months can be lost if a project is delayed.
As I said earlier, the MMO functions will be dealt with by Welsh Assembly Government Departments in Welsh waters. Is the Minister satisfied that Wales will have sufficient resources? I have cited the four projects already on the drawing board or in various stages of development in my constituency. We should consider what is happening elsewhere in the world, with offshore wind farms and particularly with renewable energy tidal and wave power. I know that the Minister is well aware of the various developments. Will the Welsh Assembly Government have sufficient resource to deal with such projects?
Finally, will the Minister comment on the fact that, although the MMO will act as a one-stop shop for all such developments, as I understand it, depending on the size of a development, the MMO could become involved in some parts of the consenting process, and the Welsh Assembly Government in others?
Linda Gilroy: I want to make a brief contribution and add to the various points made by previous speakers. the Joint Committee on the draft marine Bill raised a point about access to data. The MMO will need to be funded adequately to enable it to access both privately-owned and public date alike. When we made our recommendations, we suggested that it should either be a question of the MMO being adequately resourced or else having free access. As a Member representing a constituency with various scientific organisations collecting data, such as the long-term plankton data recording set, I know that such institutions will not be particularly amenable to giving their data for free. That matter needs drawing to the Minister’s attention. The MMO needs to be adequately resourced in that regard.
Huw Irranca-Davies: Some very good points have been made. First, however, I reiterate that the chairman of the MMO, Chris Parry, whom we appointed today, will be an excellent first chairman; I have no doubt about that. We had a strong field of candidates. Chris Parry has a very strong record in strategic development and management of complex, multi-disciplinary maritime organisations. In fact, it has been difficult to get hold of him over the past few days, because of the work that he has been doing with other countries on marine management. He has a fascinating background. With his agreement—I shall have to clear it with him first—I shall write to all Committee members next week with more background on him.
Members asked about the timetable. The chair designate is now in place, and he will be appointed as chairman after Royal Assent. If the Bill does not receive Royal Assent, of course, the appointment will be terminated, so please keep the good will going! Board recruitment cannot ordinarily commence until after Royal Assent, which is in line with standard Treasury guidance on public expenditure. However, in order to keep things moving, we intend to apply for an advance from the contingency fund. If successful, it will allow early recruitment of the board. So we intend to have a chair and board in place in good time to allow the vesting of the organisation on 1 April 2010.
The hon. Member for Newbury asked about the recruitment process. We will use specialist recruitment consultants to undertake parts of the process, including drawing up specifications, executive search advertising, application sift and interviews. Another point was raised about the lack of proper consultation with staff at the MFA. I understand hon. Members’ concerns. The move could have been to Carrick, Southampton, Liverpool, Tyneside or Plymouth—the latter was a very favourable location and many were attracted to it. However, we have worked intensively with MFA staff; I, myself, have met them at least twice.
We carried out a staff survey on staff preferences and made staff visits to Tyneside with a series of presentations on Tyneside, the living environment, quality of life and so on. Furthermore, a question and answer facility has been provided on the intranet for staff, and we also held meetings with coastal staff. We always recognised that some staff would not want to come—for family reasons and so on—and we continue to engage with them to ensure that they are properly looked after.
2.30 pm
Mr. Benyon: It would be a great help to know whether the Department has yet secured a building as an office and when it expects to announce a shadow chief executive, if not a chief executive.
Huw Irranca-Davies: We are looking at two or three possible locations for the site of the building. A number of factors are involved, which I do not want to bore the Committee with. They include the environmental status of the building, which is important in ensuring that the Department for Environment, Food and Rural Affairs estate keeps its commitment to having buildings of the highest environmental standards. We need to make a decision quite soon. I will return to the other question about the chief executive in a moment, when I have some inspiration.
The MMO will have around 50 more posts than currently and will need to take on additional strength in depth around enforcement, engagement and science. We have already mentioned a chief scientific adviser but it is also about the science base and how it reaches out to other organisations.
Linda Gilroy: On the science, and the debate we had earlier about engineering, what advice will the chief scientist have at his disposal? How will that be organised? Will it be free-standing? Will there be a Committee? How will it work?
Huw Irranca-Davies: The chief scientific adviser will have a panel to work with that reaches outwards from the MMO. Ultimately, the MMO will determine the exact nature of the chief scientific adviser’s role. Lord Hunt said that it would be a very senior role—the fact of the appointment indicates its importance. The MMO chief scientific adviser will not sit in a bunker in Tyneside. He will have to make connections with the marine scientific advisory panel that we have established and that is already extending its work. The panel reaches out to all centres of expertise in the UK, including our own Centre for Environment, Fisheries and Aquaculture Science in Lowestoft and elsewhere, Plymouth, Southampton, the Proudman Institute and so on.
Mr. Swire: We are surprised that the Minister has managed to hang on to a contingency fund that has not been snaffled to pay for one of the Prime Minister’s new initiatives. The Minister has just announced that the MMO will expand on the MFA by recruiting an additional 40 or 50 new posts. Will he give the Committee an indication of the range of pay scales of the new posts and what the additional cost to the taxpayer will be?
Huw Irranca-Davies: No; I do not have that information at my disposal. Ultimately, it will be for the MMO to work within its budget. As we take this forward in Committee and make obligations, for example, to appoint a chief scientific adviser, we are revising as we go to ensure that the MMO has the appropriate resources. When we talk about engineering, we need to ensure that the MMO has a basis of expertise. Let me turn to the other two areas that I did not touch on, which concern statistical analysis and also, crucially, economics and social science. The MMO will be not an MFA-plus, but a very distinct, strengthened organisation. I give an undertaking that the resources will be there.
Mr. Williams: A number of people are concerned that only one and a half people are going to have the knowledge and expertise to work on the renewable energy responsibilities of the MMO.
Huw Irranca-Davies: I think I have made clear that, as the Bill goes through Committee and on Report, there will be finessing of the necessary expertise. It is not only to do with one and half, two, five or ten people working within the MMO. It is also to do with the expertise that they are drawing on externally.
Mr. Williams: Consultants.
Huw Irranca-Davies: No. We have a body of expertise in the UK within the energy industry, organisations, NGOs and academia that should not be isolated from the MMO; it should be integral to the functionality of the MMO. The MMO is, as it were, the supreme manager and strategist on the marine environment and its success will depend on engagement with other sectors.
Regarding the chief executive, we will be interviewing from an extremely strong and powerful field of chief executive-designate positions next week. Regarding the extra cost for pay, which was mentioned, I can give some indication. We estimate that the additional cost will be about £2.1 million. However, it is up to the chairman and the chief executive to decide the appropriate pay structures and grades for the expertise that they need. It is not for me, as the Minister, to do that; that is what the MMO is all about.
I want to turn directly to the amendment. The members of the Committee will want to know that the Joint Committee of both Houses, which carried out pre-legislative scrutiny of the draft Bill last summer, also raised the issue of staff numbers and expertise. The Joint Committee specifically wanted to see the importance of scientific input reflected in the Bill and that issue was extensively debated in the other place. The Government’s response was as follows:
“We will revisit our analysis of the expected number of additional staff the MMO will require in the light of more detailed understanding of the MMO’s proposed functions and the staff required to deliver them. In particular, in response to the Committee’s comments we need to ensure there will be sufficient scientific expertise within the MMO. In any event, we intend the MMO to evolve, growing into its role - and have provided flexible provisions in the draft Bill to enable this. As and when the MMO takes on further functions, we will review the resources needed to deliver them.”
Members of this Committee will also wish to note that we established an MMO implementation team last year to work with the MFA as it prepares for its transition. Members of that team are currently carrying out a review of staffing and other resources that will be required for the MMO. However, it will of course be up to the MMO board, once it is appointed, to take the final decisions on how the new organisation should be structured and staffed to ensure that it is fit for purpose.
As I mentioned earlier, at launch we expect the MMO to comprise about 250 staff posts in total, which is 50 more than the current number. The MMO will include a range of expertise from the MFA and new staff with appropriate skills will be recruited. A comprehensive training and induction programme is being developed, as well as managed knowledge transfer plans for those staff who are coming from the MFA, the Department of Energy and Climate Change and the Department for Transport, as well as for those staff who will not be relocating to Tyneside.
The structure and format of the new body will not just be the MFA remade. The MMO will not only need to plan for new functions to be resourced but to meet the needs of its existing customers, such as aggregate businesses and offshore renewables. It needs to plan for increasing demands, which will involve working with the IPC on major projects to meet the Government’s challenging targets on renewable energy. As I have mentioned, industry also has a role to play in helping accurately to forecast the demands on the MMO, to ensure that it can deliver the service required. So we are listening, and the chairman of the MMO will be listening and making adjustments as appropriate.
Andrew George: The Minister has mentioned the IPC. Is he aware how many staff the IPC will have to deal with questions about the renewables industry?
Huw Irranca-Davies: I will try to come back to the hon. Gentleman with some inspiration on that question; I certainly do not have the facts at the front of my mind.
Huw Irranca-Davies: Thank you for that guidance, Mr. Gale. I must say to members of the Committee that amendment 30 is neither appropriate nor necessary. However, I hope that I have reassured them that we understand the importance of ensuring adequate resources. As the MMO evolves and takes on more functions, we will keep the resourcing issue under review, and we will augment resources where necessary.
On that basis, I invite the hon. Member for St. Ives to withdraw the amendment.
Andrew George: I am grateful to the Minister and to the hon. Members for Carmarthen, West and South Pembrokeshire and for Plymouth, Sutton for their comments and contribution to the debate.
The Minister has mounted a defence of the MMO’s capacity to cope with the new demands that will be placed upon it, but the functions transferred from the MFA to the MMO will be augmented simply by a 20 per cent. increase in the staffing complement available, despite the fact that the new organisation is taking on, in my view, a great deal more than 20 per cent. in additional work load.
Although some of the Minister’s words were welcome, I had hoped that he would say more about, for example, the defence of the MMO’s capacity, on which the industries involved will want reassurance. I had also hoped that he would cover the consequences of accepting the amendment—in other words, the problems that would be created for the organisation were it required simply to make a statement within the report to reassure the industry that it had the capacity to fulfil its function, which would not take a great deal of effort. That is all the amendment asks for, so I do not understand for the life of me why it is not acceptable. What would be the consequences of ensuring that the report includes what the renewables industry is concerned about and wants to be reassured about, namely that the MMO has the necessary capacity? That should be included.
Having heard what the Minister has said, and despite the fact that I am not reassured on the matter, I will not push the amendment to a vote. I hope that he will reflect outside the debate on the issues that have been raised, consult the industry and perhaps find other ways to reassure it before coming back on Report and having another go. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Schedule 1 agreed to.
Schedule 2 agreed to.
 
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