§ Baroness Rawlingsasked Her Majesty's Government:
What progress has been made on the financial, management and policy review of English Nature.
Earl FerrersThe financial management and policy review of English Nature has been completed. The intention of the review was to see whether English Nature's systems of internal control over both administrative and programme expenditure were reliable and effective. Today the report was presented to my right honourable friend the Secretary of State for the Environment and to the chairman of English Nature, and I have arranged for copies of the report to be placed in the Library of the House.
The review by my department has made more than 50 recommendations. As a result of the review there will be a major change in the relationship between the department and English Nature which will include the introduction of single running cost control, a revised financial memorandum, and a management statement.
Single running cost control is an annual cash limit for a non-departmental public body running costs which replaces more detailed item by item scrutiny. It enables a non-departmental public body to manage its own administration expenditure within that limit, subject to such overall constraints as government policy on pay. The establishment of single running cost control emphasises that primary responsibility for both financial control and value for money rests with the non-departmental public body's own management.
For a non-departmental public body to be able to follow such an approach requires the support, encouragement and co-operation of its sponsoring department. English Nature and the department will work together to achieve this aim.
I consider that all of the recommendations are important. Together, they constitute a package which will enable English Nature to continue to ensure that it is operating in an efficient and effective manner.