SEA FISH INDUSTRY AUTHORITY. Minutes of a Board Meeting. Held on Thursday 4 September 2008

Transcription

1 SEA FISH INDUSTRY AUTHORITY Minutes of a Board Meeting Held on Thursday 4 September 2008 Present: Mr Charles Howeson (Chairman) Mr John Whitehead (Deputy Chairman) Ms Linda Cross Prof Mike Kaiser Mr Gordon Maddan Mr Ole Norgaard Mr Mike Park Mr Mike Parker Mr Norman Shaw Mr Alex West Executive: Mr John Rutherford Mr John Campbell Dr Jon Harman Dr Paul Williams In attendance: Mrs Pauline Cox Mr Chris Stevens The Chairman explained to the Board that Mr Rutherford had received notification of a technical challenge to the legitimacy of levy on imports based on specific wording within the Fisheries Act. The Board held a lengthy discussion on the financials and management of this issue. The Board agreed that the Chairman, Deputy Chairman and Executive would progress the matter initially and keep the Board briefed on developments. A. APOLOGIES Apologies were received from Mr MacSween and Mr Venmore. Page 1 of 11

2 B. CHAIRMAN S INTRODUCTION Update on recent activities The Chairman advised that he had been involved in a variety of visits to local south west fishing ports since the last meeting. C. MINUTES FROM PREVIOUS MEETING 19 June 2008 The minutes were agreed and the Chairman was authorised to sign them. D. MATTERS ARISING Grimsby office and signing of lease Dr Williams advised that the staff response to the move had been positive. The final costs associated with the relocation were still unknown as Dr Williams was in the process of concluding the contracts of employment for staff. The Board noted that there had been overspend on legal fees in respect of the lease. The lease had not yet been signed due to some technical issues which had to be resolved with the Council s freehold for the land. Dr Williams confirmed that this had been concluded and the lease was now ready for signature. Marine Bill Sea Angling data Dr Williams advised that the imminent conclusion of the processors survey would provide more accurate financial data on the value of commercial fishing compared with sea angling, and the Board would receive this in due course. (iii) At risk fishing grounds Dr Harman explained to the Board that following the Lyme Bay decision Seafish and Defra were in discussion on Marine Conservation Zones and were continuing to seek active involvement from the scallop industry. At present the scallop industry is running a non engagement programme with Natural England and other agencies. Page 2 of 11

3 The Board noted the current JNCC map showing proposed Special Areas of Conservation. Mr West had strong concerns on the number of potential areas earmarked. The Board noted that the JNCC had commissioned consultants to report on the impact closing sites would have. The Board noted the areas where Seafish could assist. It was noted that Defra had recently requested tenders for the provision on seabed mapping to identify other potential areas for closure. Seafish [Kingfisher] had not been involved in tendering for this. It was agreed that the letter would be drafted and circulated for comment prior to it being issued raising our concern on the potential impact of closures of sea areas and the impact this may have on food security. The Chairman confirmed that Seafish should tender for all such work in future. (iv) Fish Industry Forum LETTER OF CONCERN TO STAKEHOLDERS (CHAIRMAN) Mr Rutherford confirmed that the forum had reviewed their remit at July meeting. The forum were keen to secure a visit from Commissioner Borg, however, if this could not be confirmed it was likely it would then dissolve through lack of industry commitment. (v) Executive Director Update Mr Campbell s appointment as Finance Director effective from 1 September was ratified by the Board and a formal announcement would be made on 8 September. E. Executive Chief Executive The report was noted. Mr Rutherford confirmed that Defra were working on the 2009 appointments to the Board to include determination of if/how to inform candidates of legal action pending against Seafish. Page 3 of 11

4 Mr Parker asked how the Executive would monitor the commitments in the Three Year Plan were being achieved. Mr Rutherford confirmed that this was being done through the departmental traffic light reports, the risk register, the strategic priorities and objectives and his own monthly board report. The Board reminded Mr Rutherford that these mechanisms were tactical and that they would like a more formal tracking process. In addition, the Board were keen to identify that the projects being completed did deliver the benefits projected. Dr Harman advised that the benefits of each project are reviewed at the initial application stage and are monitored throughout the projects timeline and these details are held on the Seafood Information Network (SIN). The Board requested that a review of the Industry Project Fund was required to establish the benefits that these projects have delivered to the industry. TRACKING OF THREE YEAR PLAN (JR) REVIEW OF THE BENEFITS DELIVERED THROUGH IPF (JH & PW) (a) Strategic Priorities from risk register The Board were in agreement with the ten priorities presented to them. It was noted these were identified from the risk register, and were not listed in priority order and simply numbered bullets. Research The report was noted. Dr Williams commented that the Marine Survey team had identified there was an emerging trend for hobby fishermen who have seen an opportunity in the market to register their fishing vessel, and sell the fish they caught. Dr Williams was pleased to report that the move to the BRC / SALSA award system had been received positively. Page 4 of 11

5 The Board had concerns that the traffic light reports were not providing a clear indication of projects being on track (or not) due to the phasing of the costs. The Board requested that this be altered to show a clear at a glance position of both each individual projects progress and also the phased (financial) funding position. (iii) Business Development FORMAT OF TRAFFIC LIGHTS TO BE ALTERED (EXEC) The report was noted. Dr Harman reported that he had been involved in building strong industry relationships with Food & Drink Federation (FDF), and Fish Information Review Group (FIRG). He was concerned that progress was poor with the Frozen at Sea Fillets Association (FASFA), and we had withdrawn direct support from the Fishmeal Industry Network (FIN)) but continued to deliver the service from within Seafish. The Seafood Fortnight campaign had started well with positive media campaigns coming from the Communications team. Dr Harman was in discussion with Defra and the Scottish Government on State Aid regulations to ensure that Seafish were not infringing these. EFF applications for projects would be made in due course. (iv) Finance The Board were made aware of the variances with the year to date figures and that the department and location costs incorporated the extra expenditure for the Grimsby relocation and advice sought on the pelagic criminal investigation. The report highlighted a request to increase the expenditure of 75k to cover the cost of the IPF International Assistance project. On examination of the early draft record immediately after the Board meeting the Chairman concluded that this had not been specifically ratified by the Board as the Executive had intended that it should be, and so he subsequently confirmed it as being authorised by the Board in his capacity as the Chairman (and sent an explanatory note to all directors.) Page 5 of 11

6 The Board noted that the notification from West Yorkshire Pension Fund on the revised assumptions had a positive impact on the balance sheet, reducing the overall deficit by 900k. The Board requested that the cost of any possible redundancies due to the Grimsby relocation be reserved within the balance sheet. INCORPORATE REDUNDANCY COSTS INTO BALANCE SHEET (JC) F. CRIMINAL INVESTIGATION Latest position Mr Rutherford was disappointed to report that there had been no developments since the June meeting. Whilst the Board accepted that they had to wait until the Crown Office had reviewed and decided if any action should be initiated against Seafish, they continued to have concerns with the way in which the warrants had been served on Seafish. The Board then held a lengthy discussion on the history of the pelagic levy collection and the involvement that Seafish had with Government over the years. The Board concluded that no further action need be taken on the matter until the October meeting at the earliest. The Board requested Burness and Paul Cullen QC attend the October meeting so they had an opportunity to be briefed in person on the facts surrounding this issue. BURNESS AND QC TO ATTEND OCTOBER MEETING (JR) G. PELAGIC LEVY RATE The Board considered the paper presented but agreed to defer any discussion on this until the October meeting. The Executive were asked to obtain agreement from Defra on this proposed Scottish legal process before the Board would proceed further. OBTAIN AGREEMENT FROM DEFRA AND REVISIT AT OCTOBER MEETING (JR) Page 6 of 11

7 H. SAFETY AT SEA Mr Park and Mr West (and Mr Venmore if he wished) agreed to review the proposal by the Executive in detail and report back to the Board with their comments on how this could be implemented. RECOMMENDATIONS TO BOARD (MPARK & AW) I. TRAINING UPDATE Dr Williams reported that the new system was introduced on 1 July with a positive take up on the numbers being trained. The Board were notified that this could result in a 50k overspend. Dr Williams would continue to monitor the position would keep the Board informed. J. REGIONAL PARTNERS Seafood Scotland (SFS) The paper was noted and discussion was deferred to item M. South West Dr Harman was pleased to report that the south west was progressing well with no major events to report and that collaboration with the South West RDA should result in 1M of funding to the Southwest over a three year period for a Seafish investment of 225k. (iii) Northern Ireland Seafood (NIS) Dr Harman reported that a meeting was scheduled with NIS and the NI Fisheries Director, on 12 September to determine a clear strategy and list of objectives. (iv) Yorks & Humber Seafood Group (YHSG) The report was noted and Dr Williams commented that, on behalf of Seafish, he would continue to ensure YHSG delivered the outcomes on their projects. Page 7 of 11

8 (v) Seafish Wales Dr Williams explained to the Board the paper presented and the support received from the Welsh industry to establish the steering group. The Board noted that a project manager may be necessary in the future and Dr Williams was confident that outside funding could be secured. In addition, the Board noted that the current complement of Seafish staff would also be utilised. The Board agreed to proceed as proposed with a potential Ministerial launch in December in Cardiff. K. SERVICES REVIEW Mr Whitehead confirmed that Service Review Group meet and considered the non project work. The Board were informed that this work would be budgeted into the 2009/2010 business plan. The Board agreed to the proposal. Mr Norgaard suggested we reviewed our advisory committee structure and to consider introducing a group for the Processing and Importer sector. The Board agreed this. STENGTHEN OUR ADVISORY / WORKING GROUP OPERATIONS WITH PIDS PAPER (JH) L. MARINE SERVICES UPDATE Mr Whitehead confirmed that whilst the marine survey team were consistently busy the overheads for the department were still high and continued to impact their budget performance. The Board noted that the department s cost to levy had reduced over the years and it was expected that within another 12months the department would start to turn reach the nil-cost target. The Board expressed the wish that in principle this cost / profit centre becomes profitable as early as practicable and thus that additional tender opportunities be pursued. M. SEAFOOD SCOTLAND Strategic Plan Dr Harman confirmed that the Seafood Scotland Board had reviewed, approved and adopted the Strategic Plan and MoU. Page 8 of 11

9 The Board noted that a letter of comfort, in respect of the Scottish Government s funding, had been received from the Fisheries Director responsible which the Board were content with. Dr Harman confirmed that the Seafish contribution, of staff, would be done primarily by existing personnel. The Board agreed to adopt both the Strategic Plan and revised MoU. MoU Covered until item M and agreed. N. FINANCIAL ISSUES Risk Register The likelihood of risk five on the legality of levy is now considered highly likely and the Board discussed the detailed steps required to mitigate this risk. The Board noted the other papers but did not consider actions on any other specific risks. Budget / Business Plan Review This item was not discussed. (iii) Sharepoint proposal This item was deferred for three months. (iv) Edinburgh office refurbishment This item was deferred for a period of three to six months. O. ADMINISTRATION ISSUES SIFG Seafish employment The paper was noted and Dr Harman confirmed that the six individuals being employed are fully funded through the Scottish Government with no employment risks associated to Seafish. The Board agreed the proposal. Page 9 of 11

10 Scottish Fleet Health Checks ~ staff Dr Williams confirmed the intention was to utilise the contracted marine surveyors to assist with the fleet health checks. The Board agreed the proposal. P. INFORMATION PAPERS The papers were noted. Q. AOB 2009/2010 meeting dates The Board noted that Mrs Cox was working on the dates for 2009 / 2010 and that final dates would be confirmed at the October meeting. Shellfish AC, 9 September (iii) Sustainable AC, 10 September (iv) Whitefish AC, 16 September (v) Pelagic AC, 17 September (vi) PRG, 30 September Page 10 of 11

11 R. DATE OF NEXT MEETING Thursday 30 October 2008, Edinburgh There being no further business the meeting closed at Note: Meeting etiquette Many Board members expressed the approval of this and so welcomed the new board meeting format. Page 11 of 11