To report Officers’ concerns over possible risks to the effective delivery of fisheries management over the next 2 years.

1.1 The Committee faces a period of at least 2 years major change in all components of its organisation and work. For the remainder of the period in which the NWNWSFC is in operation, all the administrative staff will be necessarily focused on the work required to prepare for the changes which are now imminent.

1.2 The NWNWSFC will be abolished on 31 March 2010 and replaced on 1 April 2010 by a new North West SFC. The NWSFC will be set up for one year only and will not have time to become properly or fully established before it is also abolished with the setting up of the North West IFCA on 1 April 2011. The establishment of the NWIFCA will include a merger with Cumbria SFC.

1.3 The Committee’s accountants, Moore and Smalley, conducted the 2009 Internal Audit Review and commented in observation 7 of their letter of 10 June that in the Statement of Internal Control, ‘little mention is made of the Welsh Assembly’s plan to bring in house the management of Welsh Waters’. Moore and Smalley recommended that as this is such as important risk, the actions to be taken are formally documented. This report identifies the risks arising from the reorganisations in Wales and England. The report will be updated for the Committee at subsequent meetings.

2.1 Risk: A budget shortfall in 2010-2011. With a minimal inflationary increase, the levies on English Local Authorities will total approximately £400,000. This is 0.46% of the levies paid to NWNWSFC and compares with a total levy on all local authorities in the NWNWSFC of £868,000 in 2009-10.

2.2 Nine staff posts are based in England and expected to stay with the NWSFC. Eight staff posts are based in Wales including the Crew of ‘Aegis’ but the future of the crew (3 staff) is uncertain as yet.

2.3 The majority of the fixed operating costs of the NWNWSFC will fall to the NWSFC and cannot be transferred to Wales. These include (for example) office lease and running costs, and contracts for vehicles, IT and phones.

2.4 There may be necessary redundancies of staff. If WAG are not able to reach agreement with staff in Wales on their transfer to WAG, there may be a duty on the NWNWSFC or its successor body to continue their employment or pay redundancy.

2.5 Legal advice may be required on the application of TUPE to the proposed staff transfers.

2.6 Defra may fail to meet any budget shortfall.

2.7 Operating costs of ‘Aegis’ may not be met by WAG and may fall entirely on the NWSFC.

2.8 In order to cover the significant financial risks identified and meet the concerns of the auditors, it is proposed that finance should be transferred from the general reserves to create 3 new Risk Reserves set aside for Redundancies, Leases and Reorganisation costs. If calculations can be completed, details of the amounts required will be tabled on 11 September.

3.1 The uncertainty created by the reorganisations in Wales and England is causing stress to staff. Senior officers have noted that performance in some areas may already be affected. WAG has stated that all staff in Wales will be offered posts in WAG under TUPE terms and conditions. However as yet, no contract details have been confirmed and no details of the jobs which staff will do have been set out. It is assumed that Fishery Officer jobs will be similar to those in NWNWSFC but clearly staff will experience considerable cultural upheaval in changing to jobs supervised by WAG.

3.2 There is an increased risk that staff morale may decline. Staff may seek other employment posts with other SFC, MFA or outside fisheries management. Staff may take more than usual levels of sick leave over the coming months or resign to take up other posts. Indeed one officer is already expected to tender resignation in September.

3.3 The re-organisations are creating significant additional work for all the administrative staff that is, the CEO, PFO Finance officer, Clerk and Admin Officers. The secondment of the Principal Fishery Officer to WAG for 2 days a week (40% of total time) since 1 May 2009 has now been extended to October 31. As a result of this secondment, additional work has fallen to the CEO, Clerk and Finance Officer. This additional work arises from cover for the absence of the PFO and the information demands of WAG in preparation for their reorganisation.

3.4 There is a risk that routine tasks may be overlooked or completed to a lower standard and that the quality of delivery of SFC duties is seen to be reduced by external partners.

3.5 Staff have reasonably asked for Union advice in respect of the impacts of the reorganisations. There is a risk that stress on staff and dissatisfaction with proposals from WAG in the short term and Defra in 2010, could lead to employment disputes and legal costs.

4.1 The NWSFC may not have the finance or personnel to perform adequate patrol and enforcement duties.

4.2 FPV ‘Aegis’ may not be fully maintained in an operational state with the result that patrols of fisheries away from the coast would be lost and enforcement would be reduced.