This is a House of Commons Committee report, with recommendations to government. The Government has two months to respond.
Environment, Food and Rural Affairs Committee and Environmental Audit Committee
Pre-appointment hearing: Chair of the Environment Agency
Date Published: 8 July 2022
1. The Environment Agency (EA) was established in 1996 and is the lead body for the protection and improvement of the environment in England. It is Defra’s largest non-departmental public body (NDPB) with around 10,600 employees and an annual budget of around £1.4 billion - a proportion comes from charges, such as abstraction licences, and flood and coastal risk management levies, as well as government funding.1 The EA’s remit covers about 13 million hectares of land, 22,000 miles of river, 3,100 miles of coastline and 2 million hectares of coastal waters.
2. The EA’s stated vision is “to create better places for people and wildlife and support sustainable development”. The three goals of its current five-year action plan (2020–2025) are:
3. The EA operates in three main business areas—industrial waste and emissions; flood and coastal erosion risk management; and water, land and biodiversity. While it is a Defra-sponsored NDPB, the Agency also works closely with other parts of government such as the Department for Business, Energy and Industrial Strategy and the Department for Levelling Up, Housing and Communities. The EA also works with local government, business and industry, and civil society organisations and groups.
4. The Agency’s specific responsibilities are to regulate and/or oversee:
5. Currently, the vast bulk of environmental legislation and standards applying in the UK derive from European Union law prior to the UK’s withdrawal from the EU. Under ‘non-regression’, the UK has undertaken not to undo, either by legislation or by lack of enforcement, the harmonised environmental standards in place at 31 December 2020.2
6. The EA remains responsible for implementing these measures—now under the framework established by the Environment Act 2021—and is accountable to the Office for Environmental Protection (OEP) for its performance in pursuing compliance. The EA uses consents to set the conditions with which operators—such as power stations, the chemicals industry, food and drink manufacturers, farms and the water industry itself—must all comply with, so that their activities do not adversely impact on people and the environment. It also regulates water abstraction for drinking water, irrigation and industry, commercial fisheries and licensed anglers, and boat users.
7. The EA also plays strategic and operational roles in the management of the risks and incidence of flood and coastal erosion from all sources, including rivers, the sea, groundwater, reservoirs and surface water. The EA works in partnership with local authorities, who are responsible for managing flood risk from surface water and smaller local watercourses.
8. The EA also has a role as an independent adviser on environmental matters, within government and more widely. The EA advises government on developing legislation and policy, and it is a statutory consultee for land use planning as well as advising local authorities to prevent inappropriate new development in flood plains.
9. The current Chair of the Environment Agency (EA), Emma Howard Boyd CBE, will step down in September 2022. A competitive recruitment process for her replacement was conducted between 24 February and 28 June 2022, with the window for applications closing on 24 March.3 To attract the widest pool of suitable candidates, a twin-track approach was taken, deploying an executive search company as well as a separate search committee formed by Defra’s own Public Appointments Team.4
10. In total there were 21 applicants for the role. Of these, seven were invited to interview: four were subsequently considered appointable. The diversity breakdown provided by the Department was as follows:
Gender |
Percent Male |
Percent Female |
Percent Identify another way |
Percent Not declared |
Applicants |
61.9% (13) |
23.8% (5) |
4.8% (1) |
9.5% (2) |
Shortlist (applicants invited to interview) |
85.7% (6) |
14.3% (1) |
0% |
0% |
Ethnicity |
Percent White |
Percent Ethnic Minority |
Percent Not declared |
|
Applicants |
90.5% (19) |
4.8% (1) |
4.8% (1) |
|
Shortlist (applicants invited to interview) |
100% (7) |
0% |
0% |
|
C. Disability |
Disabled |
Non-disabled |
Not declared |
|
Applicants |
4.8% (1) |
81.0% (17) |
14.2% (3) |
|
Shortlist (applicants invited to interview) |
0% |
85.7% (6) |
14.2% (1) |
11. Defra announced on 28 June 2022 that Alan C. Lovell DL was the preferred candidate for appointment to the role of chair of the Environment Agency.5
12. The post is one of the positions to which the procedure for pre-appointment Parliamentary scrutiny applies.6 The Environment, Food and Rural Affairs Committee and the Environmental Audit Committee held a joint hearing with the candidate on 5 July 2022.
13. Pre-appointment hearings scrutinise the quality of ministerial decision-making, which is a proper part of ministerial accountability to Parliament. Although the outcome of the hearing is not binding on the Government, a committee’s view should inform the Ministerial decision on whether to proceed with an appointment.
14. Mr Lovell has held several chairing, board level and senior executive roles in a range of companies, predominantly in the construction and renewable energy sectors. He has also served as Chair of the Consumer Council for Water.
15. Mr Lovell is currently Chairman of the Interserve Group Limited, Chairman of Safestyle UK plc (a replacement door and window supplier), Senior Independent Director, SIG plc (a distributor of construction products) and Chairman of the Association of Lloyd’s Members. The candidate’s full CV, including his voluntary roles, is available in Appendix 1.
16. Alan Lovell gave evidence to us at a pre-appointment hearing on 5 July 2022. We questioned Mr Lovell on several areas including his motivation in applying for the role, the management of a potential conflict of interest, his professional background, his knowledge of the current challenges facing environmental regulation, and his anticipated priorities upon appointment. He was also open about areas, such as air quality, where he would need to develop his expertise.
17. We explored with Mr Lovell his views on the potential reorganisation of Defra’s public body landscape—a topic which he said he was coming to with an open mind—and were encouraged by his commitment that any restructuring should only proceed after having identified the improved environmental protection which it would deliver. We welcome his commitment to come back to us in six months with his views on what environmental benefits and efficiencies any structural reorganisation should seek to deliver.
18. We also discussed the EA’s enforcement activity. Mr Lovell promised to return to us with his view on the future shape of the EA’s enforcement activity, where there appeared to be a significant gap in his knowledge. We welcomed his commitment that this would include an exploration of the reasons behind the decrease in the rates of cautions, prosecutions and sanctions, and what actions might be needed to respond to that trend.
19. Overall, during the pre-appointment hearing Alan Lovell demonstrated relevant corporate and institutional experience and an appropriate grasp of the priorities for his proposed tenure. However, we were surprised that he had not come to more fully researched and formed views on some of the key environmental issues and challenges facing the Environment Agency.
20. We are satisfied that Alan Lovell has the professional competence and personal independence required of the Chair of the Environment Agency and that the recruitment campaign and his selection as the Government’s preferred candidate were conducted in accordance with the Cabinet Office’s Governance Code on Public Appointments.
21. We are content with Alan Lovell’s appointment and look forward to future robust engagement with him during his tenure as Chair of the Environment Agency—particularly on water quality, enforcement and the future of the Agency.
Experienced Chairman of both commercial and not-for-profit enterprises. Executive career included time as Chief Executive of six companies, four in difficult financial circumstances and two in renewable energy; three of the six were listed. I now have a mixed portfolio of some listed and some charities, mostly in the heritage and culture sectors.
2019– Chairman, Interserve Group Limited
Facilities Management and Construction Group originally with £3bn turnover. Brief was to sell divisions to good owners and wind up the Group; sold FM to Mitie in December 2020, RMDK (construction equipment) in October 2021 and span out Tilbury Douglas (Construction) in May 2022. Task largely complete and role reduced to supervision of final clean-up
2018– Chairman, Safestyle UK plc
Replacement door and window supplier, no. 1 in UK. Has suffered a series of challenges including competition from a prior CEO, Covid and a cyber attack
2018 - Senior Independent Director, SIG plc
Distributor of construction products with £2.5bn turnover. Has required a new direction following previous management mistakes and is now firmly on a path to growth
2006–22 Chairman (since 2012), Association of Lloyd’s Members (ALM)
The trade association representing 700 of the 1800 Names at Lloyd’s; I am also on one of the committees of Lloyd’s itself. Retiring October 2022.
2009–22 Chairman, Progressive Energy Limited
Renewable energy with focus on CCS and hydrogen production; co-ordinator of the Hynet project, recently selected as one of two successful clusters in UK. Retiring June 2022.
2022– Member of Chapter of Winchester Cathedral
Lay Canon and Chair of Finance Committee
2014– Founder Chairman, Hampshire Cultural Trust
Looks after 23 arts centres and museums; required significant culture change; has been very successful, including better exhibitions, enhanced social impact and sound finances
2015–2019 Chair, Consumer Council for Water
Defra arm’s length body representing consumer interests in water sector. Successes:
2007–2016 Council Member, Lloyd’s of London
RemCo member from 2010 and Audit from 2014
2018–2019 NED, Amey Birmingham Highways and Amey UK
Helping to resolve contract breakdown and financial challenges
2017–2018 NED and Chair, Restructuring Committee, Carillion plc
On board for last 10 weeks of Carillion, nearly succeeding with a rescue package
2017–2018 Chairman, Flowgroup plc
Holding company of one of the challenger mid-scale utilities. In difficult times for the sector, task was to sell the Energy subsidiary (to Co-op Energy) and wind down the plc
2016 - 2017 Chairman, Sepura plc
Professional radio business which ran into severe financial trouble and was ultimately successfully sold to a Chinese competitor.
2014–2016 SID, Sweett Group plc
Construction Services Group, listed on AIM, rescued from a number of problems and sold successfully to a competitor at an uplifted price
1990–2006 Three NHS roles as NED and Vice Chair of a Health Authority, Hospital Trust and PCT
Acting Chair of PCT for four months; Chair of Audit Committees
2011–2013 Tamar Energy Limited
Chairman and Chief Executive
The most ambitious player in anaerobic digestion in UK, with five plants in operation
Achievements were:
2006–2009 Infinis Limited
Chief Executive
UK’s No 2 renewable energy business, with 190MW output from landfill gas, moving into wind, biomass and other renewable opportunities; owned by Terra Firma.
2004–2006 Jarvis plc
Chief Executive
Engineering and construction business specialising in track renewal, electrical projects, railway plant and road safety products. Over ambitious foray into PFI and other factors had pushed company to brink of collapse. £610m losses in two years to March 2005 and debt of £350m.
Led the financial restructuring including disposal of Tube Lines interests and a £375m debt for equity swap. Also led the operational improvements including £55m annual cost savings and broadening of customer base away from Network Rail. Jarvis was on budget and made £11m operating profit in the year to March 2006.
1997–2004 Dunlop Slazenger Group
Finance Director, then Chief Executive
Global sporting goods business with 2,000 employees and a £200m turnover. Trading subsidiaries in Europe, USA and Far East, and manufacturing in the Philippines and the USA. I joined as part of the new senior management team to rescue an overpriced MBO and to maximise returns to the banking syndicate owning the business. This sale and return of investment was completed in January 2004.
To achieve the turnaround and sale, we rejuvenated the brands after a period of chronic under-investment (highlight: three semi-finalists and both finalists in the 2002 Australian Open); radically improved business processes and systems; reduced manufacturing plants from seven to two (in US and Philippines); and created a single European business with regional sales units.
My key contributions were two financial restructurings, the sale of the Maxfli brand to adidas for $75m and leading the exit sale process. Overall result was a turnaround from a loss of £20m in 1999 to profit of £8.2m in 2004.
1992–1997 Costain Group PLC
Finance Director, then Chief Executive
£1 billion turnover international contracting company with coal mining interests in the USA. 10,000 employees. Incurred £340m losses in 1991 and 1992 due to real estate and other write-offs. Gearing 440% at Dec 2012.
Appointed on advice of the company’s bankers. Principal achievements were:
1989–1992 Conder Group PLC
Finance Director then Chief Executive
£300m turnover contractor specialising in structural steelwork and business parks in UK and USA. Problem contracts and acquisitions pre-1989 required emergency corporate recovery role.
Specific achievements included sale of six subsidiaries for £20m and eight properties for over £6m, drastic cost-cutting in operating companies (by 50%) and Head Office (by 75%), restoration of Group morale and re-invigoration of sales/marketing function.
1980–1989 The Plessey Company plc
Various finance and general management roles
£1.5 bn telecommunications and defence electronics company.
A variety of financial and general management roles including project manager of an export defence radar contract, Group Chief Accountant and an 18 month secondment to the M&A Department of Kleinwort Benson.
1976–1980 Price Waterhouse & Company
Qualified as a Chartered Accountant with all first time passes; specialised in tax for a year
2012–Date Deputy Lieutenant of Hampshire
2022–Date Lay Canon and Chair of Finance Committee, Winchester Cathedral
2014–Date Founder Chairman, Hampshire Cultural Trust
A new Trust set up to take over two Councils’ arts centres and museums. This has been a terrific success with upgraded exhibitions and other visitor offerings, a massive increase in social impact and a successful commercial and financial performance which has enabled £1m investment back in the 26 venues
2013 - Date Patron, Blue Apple Theatre
Professional theatre for young people with severe learning difficulties
2008–2022 Trustee of Winchester Cathedral
Completed £22m appeal for ‘Birth of a nation’
2006–2021 Trustee, former Appeal Chairman and from 2015 Chairman, Mary Rose Trust
Led £42 million appeal for a new museum, opened May 2013; negotiated new partnership agreement with NMRN
2011–2021 Governor, University of Winchester; Chair from 1 August 2016
University grew numbers each year, won awards for student engagement and satisfaction, had excellent reputation for environmental programmes and sustainability; completed a £48m new building and ended with small net cash balances
2010–2011 High Sheriff of Hampshire
2008–2017 Member of Cathedral Council, Winchester
2010–2016 Founder Chairman, Blue Lamp Trust
1999–2004 Governor, Southern Theological Education and Training School
1990–1997 Governor, Malvern College
MA (Oxon) Classics–First
Chartered Accountant (FCA)
Fellow of the Society of Antiquaries (FSA)
See
As EA Chair, you will:
Candidates must be able to demonstrate all the following essential criteria:
1. Experience in the strategic leadership of a complex, high-profile organisation under media, political and stakeholder scrutiny, particularly through periods of change.
2. The ability to develop collaborative and productive relationships–with board members, senior leadership, ministers, and colleagues in other organisations.
3. Excellent communication skills, judgement, discretion, and political sensitivity.
4. The capability to ensure effective strategic oversight and delivery of large-scale infrastructure projects.
5. A demonstrable commitment to protect and enhance the environment.
Successful candidates must abide by the Nolan principles of public service, the Code of Conduct for Board Members and demonstrate the 12 Principles of Governance for all Public Body NEDs.
The remuneration for the role is £100,000 for a time commitment of 3½ days a week. Expenses are payable for expenditure reasonably and necessarily incurred on behalf of the Environment Agency and in accordance with the travel and expenses policy. The appointment is expected to be for three or four years. In accordance with the Governance Code on Public Appointments, Ministers may extend the terms of public appointees for a second or third term.
Gender |
Percent Male |
Percent Female |
Percent Identify another way |
Percent Not declared |
Applicants |
61.9% (13) |
23.8% (5) |
4.8% (1) |
9.5% (2) |
Shortlist (applicants invited to interview) |
85.7% (6) |
14.3% (1) |
0% |
0% |
Ethnicity |
Percent White |
Percent Ethnic Minority |
Percent Not declared |
|
Applicants |
90.5% (19) |
4.8% (1) |
4.8% (1) |
|
Shortlist (applicants invited to interview) |
100% (7) |
0% |
0% |
|
C. Disability |
Disabled |
Non-disabled |
Not declared |
|
Applicants |
4.8% (1) |
81.0% (17) |
14.2% (3) |
|
Shortlist (applicants invited to interview) |
0% |
85.7% (6) |
14.2% (1) |
The Environment, Food and Rural Affairs and Environmental Audit Committees met concurrently, pursuant to Standing Order No. 137A.
Ian Byrne
Barry Gardiner
Sir Robert Goodwill
Dr Neil Hudson
Mrs Sheryll Murray
Duncan Baker
Philip Dunne
Barry Gardiner
Sir Robert Goodwill
James Gray
Caroline Lucas
Jerome Mayhew
Dr Matthew Offord
Claudia Webbe
Sir Robert Goodwill was called to the Chair (Standing Order No.137A(1)(d)).
Draft Report (Pre-appointment hearing for the Chair-designate of the Environment Agency) proposed by the Chair, brought up and read.
Ordered, That the Chair’s draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 21 read and agreed to.
Papers were appended to the Report as Appendices 1 to 3.
The Environmental Audit Committee withdrew.
Sir Robert Goodwill, in the Chair.
Ian Byrne
Barry Gardiner
Dr Neil Hudson
Mrs Sheryll Murray
Draft Report (Pre-appointment hearing for the Chair-designate of the Environment Agency) proposed by the Environment, Food and Rural Affairs Committee and the Environmental Audit Committee, brought up and read.
Resolved, That the Report be the Second Report of the Committee to the House.
Ordered, That the Chair make the Report to the House.
Ordered, That the provisions of Standing Order No. 137A(2) (Committees working together; joint reports) may be applied to the Report.
Ordered, That embargoed copies of the Report be made available, in accordance with the provisions of Standing Order No. 134.
Adjourned till Tuesday 12 July 2022 at 2.00 p.m.
The Environment, Food and Rural Affairs Committee withdrew.
Philip Dunne, in the Chair.
Duncan Baker
Barry Gardiner
Sir Robert Goodwill
James Gray
Caroline Lucas
Jerome Mayhew
Dr Matthew Offord
Claudia Webbe
Draft Report (Pre-appointment hearing for the Chair-designate of the Environment Agency) proposed by the Environment, Food and Rural Affairs Committee and the Environmental Audit Committee, brought up and read.
Resolved, That the Report be the Second Report of the Committee to the House.
Ordered, That Sir Robert Goodwill make the Report to the House.
Ordered, That the provisions of Standing Order No. 137A(2) (Committees working together; joint reports) may be applied to the Report.
Ordered, That embargoed copies of the Report be made available, in accordance with the provisions of Standing Order No. 134.
Adjourned till Wednesday 6 July 2022 at 2.00 p.m.
The following witnesses gave evidence. Transcripts can be viewed on the inquiry publications page of the Committee’s website.
Alan Lovell DL, Government’s preferred candidate, Chair of the Environment Agency Q1–63
All publications from the Committee are available on the publications page of the Committee’s website.
Number |
Title |
Reference |
1st |
Australia FTA: Food and Agriculture |
HC 23 |
Number |
Title |
Reference |
1st |
Moving animals across borders |
HC 79 |
2nd |
Environmental Land Management and the agricultural transition |
HC 78 |
3rd |
Tree planting |
HC 356 |
4th |
Labour shortages in the food and farming sector |
HC 713 |
5th |
Pre-appointment Hearing: Chair of Ofwat |
HC 1253 |
Number |
Title |
Reference |
1st |
COVID-19 and food supply |
HC 263 |
2nd |
Pre-appointment hearing for the Chair-Designate of the Office for Environmental Protection (OEP) |
HC 1042 |
3rd |
The UK’s new immigration policy and the food supply chain |
HC 231 |
4th |
Flooding |
HC 170 |
5th |
Air Quality and coronavirus: a glimpse of a different future or business as usual |
HC 468 |
6th |
Public Sector Procurement of Food |
HC 469 |
7th |
Covid-19 and the issues of security in food supply |
HC 1156 |
8th |
Seafood and meat exports to the EU |
HC 1189 |
All publications from the Committee are available on the publications page of the Committee’s website.
Number |
Title |
Reference |
1st |
Building to net zero: costing carbon in construction |
HC 103 |
Number |
Title |
Reference |
1st |
Biodiversity in the UK: bloom or bust? |
HC 136 |
2nd |
The UK’s footprint on global biodiversity |
HC 674 |
3rd |
Green Jobs |
HC 75 |
4th |
Water quality in rivers |
HC 74 |
5th |
Greening imports: a UK carbon border approach |
HC 737 |
Session 2019-21
Number |
Title |
Reference |
1st |
Electronic Waste and the Circular Economy |
HC 220 |
2nd |
Pre-appointment hearing for the Chair-Designate of the Office for Environmental Protection (OEP) |
HC 1042 |
3rd |
Growing back better: putting nature and net zero at the heart of the economic recovery |
HC 347 |
4th |
Energy Efficiency of Existing Homes |
HC 346 |
1 Environment Agency, How we’ll use the money we have for the people we serve, 15 March 2022
2 White and Case, Environmental law after Brexit, 2021
3 Department for Environment, Food and Rural Affairs and Environment Agency, Appointment of the Chair of the Environment Agency: Briefing pack for applicants, 24 February 2022
4 The search committee comprised senior leaders from within the Defra group and wider key stakeholders, who were encouraged to recommend potential candidates. Existing networks and social media were also used to promote the vacancy.
5 “Alan Lovell announced as preferred Environment Agency Chair candidate”, Department for Environment, Food and Rural Affairs and Environment Agency, 28 June 2022
6 The full list is: Chair of the Environment Agency; Chair of Natural England; Chair of the Office for Environmental Protection; and Chair of the Water Services Regulatory Authority (Ofwat).