SEA FISH INDUSTRY AUTHORITY. Minutes of a Board Meeting. Held on Thursday 20 March 2008

Transcription

1 SEA FISH INDUSTRY AUTHORITY Minutes of a Board Meeting Held on Thursday 20 March 2008 Present: Mr Charles Howeson (Chairman) Mr John Whitehead (Deputy Chairman) Ms Linda Cross Mr Iain MacSween Mr Gordon Maddan Mr Ole Norgaard Mr Mike Park Mr Mike Parker Mr Norman Shaw (item four onwards) Mr Chris Venmore Mr Alex West Executive: Mr John Rutherford Dr Jon Harman Dr Paul Williams In attendance: Seafish Mr John Campbell Mrs Pauline Cox Mr James Wood B2B Mr Paul Hague Ms Julia Cupman Hymans Robertson Mr John Wright A. APOLOGIES Apologies were received from Professor Kaiser. 1

2 B. CHAIRMAN S INTRODUCTION Update on Recent Activities The Chairman explained that he had been involved in: Visits to a local fish and chip shop and vessels; and North Atlantic Seafood Conference and Embassy Reception. The Chairman reported to the Board that Seafish had assisted SFPA with a full disclosure of papers relating to pelagic from 1997 to The Chairman reported that Tom Pithie, John Rutherford and John Campbell had been interviewed as part of this process. It was noted that the NAO would undertake, as part of their audit, a review of the completeness of levy collection. The Board confirmed its policy to condemn black fish. C. MINUTES FROM PREVIOUS MEETING 19 February 2008 The minutes were agreed and the Chairman was authorised to sign them. D. MATTERS ARISING Marine Bill ~ Sea Angling Dr Williams confirmed that an updated report is being prepared and would be available shortly. (ii) ToR ~ European Legislation Sub Committee The Board agreed the revised terms of reference. It was noted that the sub committee would commence with two projects, Animal by products Regulation and (ii) Emergency import control measures. It was noted that if any new areas of work were identified these would be discussed and agreed with the Board in advance. 2

3 (iii) SFA14 ~ Socio-economic Model Funding Dr Williams confirmed that he had discussed the issue of additional funding with Defra. Whilst the European Fisheries Fund was expected to start in 2008, Dr Williams was unsure if funding would be available for this project. It was expected that some work on marine protected areas would take place towards the end of 2008/start of The Board agreed that, where appropriate, requests for funding should continue. (iv) Risk Register The Board noted that the risk register had been presented to the Audit Committee. It was confirmed that the executive and management team would review the register on a regular basis and amend where appropriate. The Board would review on an annual basis. (v) Seafish Participation in Scottish Marine Bill The Chairman confirmed that he had discussed the issue at the North Atlantic Seafood Conference with Mike Nielson, Marine Director and Richard Lochhead, Cabinet Secretary. The Chairman hoped a positive response from the Scottish Government would be received shortly. E. TRAINING Consultation The Chairman summarised for the Board the process taken to date. The Board were then informed a group of Scottish GTAs meeting at the SFF had raised concerns about the level of consultation in respect of Individual Training Support Grants (ITSG) to replace outcome funding from April Mr West explained his strong position on the issue. He was concerned that the legal advice received by the Board was being challenged in his area and requested that a summary should be prepared to explain the advice given. Mr West confirmed that he would revoke his decision to proceed if it were shown that the advice which the Board received was incorrect. Mr Rutherford explained that the legal advice the Board had been presented with was twofold: 3

4 i. It would be improper to operate a closed network of training providers. The Board s governance could be challenged for not allowing open market tenders to be submitted for the provision of training. ii. The Fisheries Act empowers Seafish to grant funds to individuals being trained, not to organisations for co-ordinating training. Providing funds through GTAs requires much more transparency than exists at present, so a Funding Agreement has been drafted by Burness, our lawyers, to protect Seafish interests. Dr Williams confirmed that the funds available for next year would train circa 400 fishermen through GTAs rather than circa 1,000 if GTA core funding was used directly for training fishermen. It was noted that refinement of the GTA network had been discussed, and has been necessary, for a number of years. With no proposal from the GTAs forthcoming, the Sub Committee was formed and tasked with identifying the way forward. There was a lengthy discussion on the process taken by the Training Sub Committee on how to tackle this issue. Ms Cross confirmed that due to the closure of FIFG funding, the network had required review and modernisation for a while. She reminded the Board that the Sub Committee had recommended this model as they were confident this would allow some GTAs to continue, albeit in a reformed manner. The Board noted the paper circulated by the Scottish Fishermen s Federation on behalf of Scottish group of GTAs. Mr Whitehead was disappointed to report that three of the listed GTAs had been unable to meet with himself and Simon Potten to discuss the proposals. This resulted in statements within this paper being inaccurate. It was noted that a meeting with the Scottish Fishermen s Federation was being organised. Mr Shaw joined the meeting Mr Park had concerns that the route being taken may not achieve the numbers Dr Williams had referred to earlier. The GTAs had been able to ensure that the fishermen were targeted to attend training sessions. Due to numbers of fishermen in North East Scotland, Mr Rutherford reminded the Board that Seafish had offered to provide a fully funded individual into NEFTA to assist with organising training requirements. Mr Whitehead explained that the majority of GTAs he and Mr Potten had met with may have initially opposed the new proposals, but there was evidence that they were now looking into ways in which the new method of working would complement their businesses. 4

5 Mr Venmore s view remained unchanged. He would like the see the GTA structure retained with some refinements. He commented that fishermen did support their GTAs and he had concerns whether Seafish could reach the individuals directly. Mr MacSween commented that he had seen evidence of Seafish consultation and was surprised at the comments received. The Chairman concluded the discussion with summarising with the following points: i. The Board was divided on this issue; ii. iii. iv. Mr Whitehead and Dr Williams should pursue a meeting with the Scottish GTAs to discuss their new ideas; Defer the new payment / funding regime for one quarter; A written summary of legal advice to be presented to Board; v. He would write personally to both the Scottish GTA group and to the Chairman of all GTAs very frankly setting out where the Seafish board stood and tacitly inviting the Scottish GTA group to table an alternative solution which their letter to the Board suggests that they have on the stocks. He will write these letters over the Easter weekend copying the Board as an active dialogue was to be expected; and vi. Item will be on June agenda for decision. FURTHER CONSULTATION MEETING SCOTLAND (JW & PW) INFORM GTAS OF FUNDING POSTPONEMENT (CH & JR) LEGAL ADVICE TO RE-PRESENTED (JR) (ii) New Strategy for Processors / Wholesaler Awards Dr Williams explained his paper to the Board. It was agreed that he should explore this proposal in more detail. 5

6 Mr Hague and Ms Cupman joined the meeting F. CUTOMER SATISFACTION RESULTS The Board was given a presentation highlighting the key points of the survey carried out in January It was noted that the 200 contacts interviewed this year resulted in a similar overall score to The one sector scoring low satisfaction was the Processors, Importers and Distributors (PIDs). The Board noted that reaching the acceptable score of 7 and above was expected to take in region of three years. Mr Hague explained to the Board that whilst the Seafish brand was recognised, our focus appeared to be on the delivery of these projects and services. The Board noted that the majority of the PIDs would be members of large member organisations (eg Food and Drink Federation) and therefore gather information, which they could easily obtain through Seafish, from a third party. There was a discussion on the low scoring respondents. Whilst it would be easy to disregard these, the Board felt it important to review them under separate cover and take appropriate action. The Board agreed that a possible re-branding exercise was not necessary at the moment. The Chairman thanked B2B. Mr Hague and Ms Cupman left the meeting G. REGIONAL ORGANISATIONS Seafood Scotland Mr MacSween explained that Seafood Scotland had been the subject of an independent business review funded by the Scottish Government and their Board now needed to consider the conclusions and recommendations put forward. It was noted that changes to their corporate governance structure was required. 6

7 (ii) South West Mr Venmore confirmed that Seafish South West marketing was underway, website launched and being populated. The quality reporting at the markets was progressing with the appointment of two individuals. The Board was disappointed to note that there still appeared to be a divide between Devon and Cornwall. Dr Harman confirmed that he was scheduled to visit the area shortly. The Chairman offered his assistance if necessary. (iii) Northern Ireland Seafood Dr Harman confirmed that a delivery plan to the end of August 2008 had been prepared and was being considered. Discussions were being held with DARD and the industry as part of a review into the role of this organisation within Northern Ireland. (iv) Yorks & Humber Seafood Group Dr Williams confirmed that Seafish would provide space for two individuals within the Grimsby office. The local processors Code of Practice had been launched successfully and it was hoped that local engagement in the scheme would begin to build. H. FINANCIAL ISSUES Remuneration Committee ~ 2008 Pay Awards The Board noted the paper. The Board agreed to increase the grade scales by 2% and for the overall pay award of 3%. (ii) Audit Committee Mr Whitehead confirmed that the Audit Committee met to discuss the budget (ii) the timetable for the NAO audit and (iii) the internal audit report. The Board noted that a sensitivity analysis had been prepared as comfort for the Board being asked to agree to a deficit budget. 7

8 (iii) Budget Mr Rutherford presented the budget to the Board for approval. The Board noted the small percentage reduction in levy and that all agreed Industry Project Fund proposals had been included. The Board was keen for the NAO to clarify the position of Treasury access to Seafish cash reserves which were based on industry levies not grant in aid. Mr Campbell tabled a sensitivity analysis paper highlighting to the Board projects that could be cancelled, postponed or reduced. It was noted that the Research projects had more flexibility than the Business Development projects. After some discussion, the Board requested a revised budget with the same bottom line of -447k but with a prudent levy income of 8.1m. This provided flexibility if income rose. The Executive was instructed to proceed with this. REVISED BUDGET TO BE PREPARED (JC) (iv) Annual Report The Board noted that the format of the annual report would be similar to last year and that work on the preparation of this was in progress. Mr Wright joined the meeting (v) WYPF Valuation Results Mr Wright presented to the Board succinct results from the recent valuation. The Board noted the reduction in membership, the increase in assets, the increase in pensioner liabilities (due to having closed and maturing membership), a reduction in payroll and a switch from a deficit position in 2004 to a surplus position in 2007 due to excellent investment performance by WYPF. The current contribution rate was noted as 14%. A minimum payment requirement of 9% from Mercers, the WYPF actuaries, was noted. A brief outline of the stock market returns and their impact was given and noted. The Board noted changes in the benefits of the scheme that had been implemented at a Government level. 8

9 To conclude, Mr Wright recommended to the Board that they consider continuing with the current contribution rate of 14% for the next 12 months. It was recommended that more detailed figures be prepared for their consideration at this time. In addition to this, the Board should consider a contribution rate switch into monetary terms, due to the impact of a declining membership and increasing pensioner liability. The Board agreed formally to adopt this approach for the next period. The Chairman thanked Mr Wright for his time at the meeting. Mr Wright left the meeting I. CAPITAL COSTS FOR GRIMSBY RELOCATION The Chairman was disappointed to report that no letter of comfort had been received from Yorkshire Forward but was confident that this was in progress. The paper from Dr Williams was noted. Mr Rutherford informed the Board that an additional capital cost of 20k was required to install the IT links between the Edinburgh office and Grimsby. The Board noted that contracts were with lawyers for review. An exchange date of 21 April was expected with an entry date of early June. The Chairman was keen to host a VIP official opening of the new Grimsby office scheduled around the June board meeting. Mr Wood agreed to co-ordinate the event. CO-ORDINATION OF EVENT (JW) J. EXECUTIVE REPORTS Chief Executive The report was noted. 9

10 (ii) Business Development The report was noted. Dr Harman apologised for a late adjustment to the 2008 budget and requested approval from the Board to transfer 80k underspent from the 07/08 budget into the 08/09 budget for the Omega 3 PR campaign. The Board agreed the request. (iii) Research The report was noted. (iv) Finance The report was noted. Mr Campbell highlighted to the Board that levy received to date was lower than the budgeted figure. K. INFORMATION PAPERS The papers were noted. Mr Parker requested that the account management team continue to develop industry engagement and in particular with those clients whom they have not yet developed a relationship with. FEEDBACK TO ACCOUNT MANAGEMENT TEAM (JH) L. AOB ESE, April 2008, Brussels The event and date was noted. (ii) September Board Meeting The September meeting would be held in London to coincide with the launch of Seafood Fortnight. The Chairman would host a VIP dinner and a reception on a pelagic vessel. Mr Wood would assist with co-ordinating this event. CO-ORDINATION OF EVENT (JW) 10

11 (iii) Publications and costs It was agreed to provide the Board with a list of Seafish publications and reports and associated costs. PUBLICATION LISTING AND COSTS (JW) M. DATE OF NEXT MEETING 18 and 19 June 2008, Grimsby The dates were noted and further information surrounding the meeting and logistics would be supplied in due course. There being no further business the meeting closed at 12.45pm. 11