Minutes of Forest Enterprise Scotland Management Board Meeting held at FESHO/VC on 10 July 2013 Attendees: Simon Hodge, Chief Executive Les Bryson, Head of Operations (Agenda Items 3, 5, 6 and 7) Moira Baptie, Head of Environment Alan Stevenson, Head of Communities, Recreation and Tourism Laurie Tyson, Head of Estates Michael Ansell, Head of Forest Renewables Niall Browne, HR Business Partner (Scotland) Doug Knox, Projects & Programmes Support Manager Suilven Pielou, Renewables Programme Manager (Agenda Item 8) Hugh Clayden, Tree Health Policy Adviser (Agenda Item 6) Ben Griffin, FES Survey Co-ordinator (Agenda Item 6) Mike Green, Harvesting & Marketing Officer (Agenda Item 6) Ian Murgatroyd, Plant Health Reg. Manager (North) (Agenda Item 6) Rob Soutar, FDM Galloway (Agenda Item 6) Frances MacKenzie (Secretary) Apologies: Alan Duncan, Michael Hymers, Jo Ellis 1. MINUTES OF LAST MEETING The minutes of the meeting held on 10 June were accepted as a true and accurate record. 2. MATTERS ARISING AP 2.1: Niall to look at emerging recruitment challenges. A paper being worked on at the moment. AP Discharged AP 2.2: Revised JEG's/Benchmarking Process - Niall has met with Oriana and will now revert to Recruitment Panel re cleansing of job titles. AP Rolled Over AP 2.3: Jo Ellis to firm upon on figures for woodland creation and revisit at the next board meeting in August. AP Rolled Over AP 2.4: Gordon Donaldson to complete revised project proposals for DML Wardens House and landscaping. Being presented later under AOB. AP Discharged 1 | FESMB Board Minutes | Frances MacKenzie | 24/09/2013 AP 2.5: Michael Hymers to arrange for Ben Griffin, Mike Green, Hugh Clayden and Rob Soutar to present a session at the July meeting on Plant Health. AP Discharged AP 2.6: All Board Members - Risk register updates back to Linda MacLeod by 12 July. AP Discharged AP 2.7: Alan D/Michael H facilitate costs centres to look at admin running costs across the organisation for the next BP round. AP Discharged AP 2.8: Jo/Michael H to propose a 3 year rolling target for woodland creation. AP Rolled Over AP 2.9: Les/Michael H to propose adjusting timber production target to a timber marketing target, which would be less affected by poor customer uplift; and to consider an alternative to the DP unit cost as an indicator of business competitiveness. AP Rolled Over AP 2.10: PMS - Niall to discuss further with L&D and come back to the Board. Board's views have been passed on and taken on board. AP Discharged AP 2.11: Health & Safety - Les/Moira to discuss training requirements from both an operational and environmental point of view and pass to L&D. Dealt with. AP Discharged AP 2.12: Health & Safety - Les to engage with the Safety Committee on safety boots and use of safety glasses. AP Rolled Over AP 2.13: Health & Safety - Michael H to communicate with project managers to ensure that our staff are pro-active and implement best practice on construction sites. AP Discharged AP 2.14: Organisational/Functional Update (Web Commerce) - Alan D to resume discussion on web commerce once analysis is available. AP Rolled Over AP 2.15: Organisational/Functional Update (DNB chemical spraying trial) - Jo to check with Hugh Clayden re community engagement. AP Rolled Over 3. ACQUISITIONS AND DISPOSALS Laurie updated the Board on the current position and the main points are summarised below. 2 | FESMB Board Minutes | Frances MacKenzie | 24/09/2013 Acquisitions: • • • Concluding this month on Garshake Farm Still awaiting Minister's decision on 2 cases in West Argyll FD Progressing a number of cases as best we can given the awaited publication of WEAG guidance, with several new LTA's circulating Short Term Leasing: • Auchnagillan agreement and lease documents have now been signed Disposals: • • • • • • We have sold £0.381m to date with a further £2.501m under offer Strong interest has been shown in North Otter and Ormidale with a closing date planned for early/mid August Lots of interest in Moray and Aberdeenshire plantations that are on the market with a further six due to come on Farmhouses: The forecasted target of £1.5m should be achievable. Rationalisation Sales: Whilst there is continued interest in Chapelhall, we have no offers and as this is the largest sale within this head Donald expresses concern that we will meet our target. Looking at other rationalisation sales which might be brought forward. Plantations FY 14/15: Ongoing and working towards marketing of repositioning properties in the autumn including The Barracks, Monachyle Glen and Craighead. Simon outlined scenarios for analysis of any future repositioning programme. We now have a first sift list and Simon/Donald McLellan have discussed how further analysis of these can be carried out in parallel. Information will be provided to Alan S, Laurie, Michael A and Moira. Donald will review recent sales and ascribe indicative values to the properties identified. Consideration needs to be given to impacts on the likes of timber production commitments, social delivery, environmental delivery and renewables interest. AP 3.1: Donald to review recent sales and ascribe indicative values to future scenarios. 4. FY 14/15 AND FY 15/16 BUSINESS PLAN Simon gave an overview on 13/14 - 15/16 Business Plan. 2013/14 BP: Estimated figures have been agreed but there is the possibility of a further SG cut. 2015/16: period. Awaiting clarification of likely SG funding in the next Spending Review Simon asked for any feedback on the outline business plan income assumptions from Les, Michael and Laurie. 3 | FESMB Board Minutes | Frances MacKenzie | 24/09/2013 Main points summarised below: • • • • Increased programme on restock. Zoe Laird has produced restocking forecasts from design plans. Les/Jo to discuss and feedback to Simon on strategic implications and living within the outline Business plan figures. MES - We want to avoid a move back to leasing VME as this embeds future cost commitments. However, we will need to reduce VME purchases to stay within budget. Legal Advice and agents fees (Estates) - Move to self billing which will include an electronic form for initial instruction and will restrict the number of parties able to instruct lawyers. Michael H to investigate how the new ERMS system might help us to better manage our use of legal advice. Legal Advice (HR and Procurement) - Michael H, Alan D and Niall to review gatekeeping of contacts to solicitors. AP 4.1: Jo to discuss with Les and feedback to Simon on future restocking requirements. AP 4.2: Michael H to look into how ERMS system might help us better manage our use of legal advice AP 4.3: Michael H, Alan D and Niall to review gatekeeping of contacts to solicitors Staffing: Simon gave an overview on the staffing situation for the 13/14 - 15/16 BP period. Over the last year 15 new posts have been approved. Our headcount has been inflated by the growth in the number of apprentices and internships but the underlying figure for occupied posts is around 800. Some pressure is currently being felt, for example on FM with North Highland, Moray and Aberdeenshire, Tay and Lochaber. The posts flagged through the pre-BP process now need to be evaluated and ranked by the Board. Simon asked we start a new evaluation process as we have no sense of priorities for posts being sought at present. AP 4.4: All Board Members - To consider the ragging of priority posts. AP 4.5: Les - To consider CECS and MECS country requirements and staffing implications going forward. 5. HEALTH & SAFETY UPDATE Les Bryson advised that the FC Health and Safety Strategy has been formally launched and a briefing pack sent to managers to disseminate the information by way of a series of cascades. A short film has also been included in the pack in which FC Chairman Sir Harry Studholme talks with staff about safety; the film is seen as a starting point to get group conversations going and it emphasises that all staff should be prepared to challenge and be challenged regardless if the person is more senior or in a different team. It is envisaged that all staff will be briefed by the end of August and that the new Scotland Action Plan will be produced and signed off sometime in September. 4 | FESMB Board Minutes | Frances MacKenzie | 24/09/2013 AP 5.1: All Board Members - Ensure that staff within their specific teams are involved in the H&S briefing and that it is done in a way that ensures that staff get both the wider briefing and a discussion session relevant to their domain of work. 6. TREE HEALTH DISCUSSION - PHYTOPHTHORA RAMOURUM Simon welcomed Hugh Clayden, Mike Green, Ben Griffin, Ian Murgatroyd and Rob Soutar to the meeting. Hugh Clayden started off the discussion by giving an update on the latest state of play with P. ramorum in Scotland. Aerial surveys in June/July had confirmed a major expansion, coupled with rapid symptoms expression, in the Galloway area. Elsewhere the speed of progression and rapidity of symptom development was not evident although this needed to continue to be monitored as the season progressed. The apparent difference in progression was thought to be associated with either differential climatic conditions (drier in the north) or the new EU2 lineage (currently known only from Galloway and Northern Ireland), or both. At a meeting called by FCS with key stakeholders on 20 June there had been general agreement that tree health effort now needed to be focused outside the core infected area (the ‘red zone’) in Galloway and that this should involve a bold approach (Statutory Plant Health Notices to specify felling of entire stands of larch in which infection had been found plus all other larch within 250m of those stands). Within the red zone, larch removal would be driven by operational and marketing considerations together with prioritised removal of larch in those areas which would achieve greatest benefit in terms of outward spore dispersal from the red zone, landscape/recreation considerations, and public safety. Within the red zone the intention was to implement a general ‘Order’ relating only to timber movement. Until such an Order was in place, individual SPHNs (or FES equivalent) to that effect would need to be issued. Outside the red zone, SPHNs (or FES equivalent) would require felling of larch by a given date and with associated timber movement stipulations. FCS and FES needed to develop a communications package for the Galloway outbreak in particular. The Scottish Timber Market Impacts Group were engaged with the marketing and utilisation aspects of Ramorum in Scotland (liaising with England and Wales) and were also exploring the implications for bark treatment/utilisation. HC was liaising with FC GB Plant Health colleagues to ensure continued compliance with the EU emergency phytosanitary measures specified in 2002. Guidance on future larch planting/restocking will need to be developed. 5 | FESMB Board Minutes | Frances MacKenzie | 24/09/2013 The potential for another ‘species jump’ was of potential concern to the forestry sector but current evidence suggests this is not a high risk. Continued vigilance was required. FES had set up an OMT to manage the Forest Enterprise Scotland response to the Ramorum epidemic on larch in Scotland. Its first meeting was scheduled for 12 July. Simon Hodge has requested designation of a 'lead person' for Ramorum in Scotland and it was agreed this would be the subject of further discussion at the FCSMB on 17 July. 7. QUARTERLY PROJECT REPORTING Doug Knox updated the board on the status of projects and programmes. Whilst progress and practice has been generally good, SROs for a number of projects were coming back to the board asking for additional funds because of compensation events, unanticipated costs or high tender returns. There are also cases where project scope is being reduced as a cost saving measure, but then supplementary projects are put up to fund the de-scoped work. After a lot of discussion on the various projects there was reaffirmation of the importance of a sufficient lead in time for detailed planning, identification of risks, getting planning and environmental consents in place and obtaining robust costings before final FESMB approval. It was also recognised that several projects involved existing structures which had not had investment for a considerable period of time and which have been challenging to evaluate. Regarding future projects, Doug agreed to write out to Cost Centre Managers asking them to put forward any new large scale project proposals (£100k +) for FESMB review. Priority projects would then be agreed for working up in more detail so they were ready to start if "shovel ready" money/FES direct funding became available. The Board also noted the positive feedback on project health and safety management. AP 7.1: Doug Knox to provide evidence to the October meeting on our practices around contingency levels and optimum bias. AP 7.2: Doug Knox to collate and present a list of potential new projects to the next board meeting on 15 August for prioritisation and subsequent project planning. Some of the projects discussed: • • • • 6 | Cairnbaan Workshop: Application for planning consent with planners this week. Issues over drainage being investigated. Fishish Pier: Satisfactory progress being made on construction but Laurie to push ahead with completion of land acquisition. Galloway Visitor Centres: Glentrool has been handed back to FES with Clatteringshaws to follow fairly soon. Cunnigar Loop: Delivery timeline, spend profile and target cost under review. FESMB Board Minutes | Frances MacKenzie | 24/09/2013 • • Glenmore Sewage Works: ALA estimates that sign-off will be achieved late summer 2013. Insurance for buildings at Galloway: Laurie to check position regarding shared shop and café. Similar situation to the visitor centre at Glentress. Insurance should be restricted to buildings where we share occupation with a tenant. AP 7.3: Laurie to confirm and clarify insurance cover at Galloway VCs. 8. OUTSTANDING HYDRO DEVELOPMENT OPPORTUNITIES Suilven Pielou presented the following schemes in Lochaber Forest District for development by Green Highland Renewables. • Allt Cheanna Muir (800kW, Loch Arkaig): infrastructure on neighbouring land. joint scheme. 2 owners. 95% • Allt Camus a Choire (630kW, Loch Sunart) 68% penstock and powerhouse on our land. • Allt Glas Dhoire (100kW, Clunes): Concern about campsite in the vicinity. How the tailrace would affect it. Mitigation on rec interest. Outfall – using same approach. Putting a box on the tailrace any noise and flow of water will go into a box further up the scheme. House the machinery in a turbine house with extra soundproofing. Noise of the tailrace won’t be of any concern. • Allt Ruighe Blair (100kW, Invergarry): YES with the provision that the detailed proposals will take into account the requirements for Coire Ghlas if it comes to pass. The Board agreed approval to move to option, with the proviso that the detailed proposals for Allt Ruighe Blair will take into account the possible Coire Ghlas development. 9. RISK MANAGEMENT Simon presented the Risk Management paper and the Board discussed the top risks. Risk 38 will be expanded to cover our risk analysis of pests and diseases as under: • • • • • • 7 | DNB significantly impacts on operational costs and harvesting income DNB significantly impacts on strategic delivery eg by setting back forest diversification, affecting CRT provision, reducing species choice and impacting on production forecasts DNB threatens native pinewoods P.Ramourum significantly impacts on operational costs and harvesting income P.Ramourum significantly impacts on strategic delivery eg by setting back forest diversification, affecting CRT provision, reducing species choice and impacting on production forecasts Failure to implement Chalara and P Austrocedrae management measures on the NFE further threatens native species FESMB Board Minutes | Frances MacKenzie | 24/09/2013 It was suggested that the emerging risk on Cairnbaan Workshop refurbishment be expanded to cover pressures on project budgets and timetables. 10. FOREST RENEWABLES MANAGEMENT BOARD UPDATE Michael A updated the Board as follows: • • 11. PfR have launched an appeal following the initial planning refusal for the Carron Valley site. A determination is hoped for by end July 2013. Hydro developers are still concerned about DECC plans to trigger lower payment rates based on the numbers/MW of pre-accredited schemes. ORGANISATIONAL/FUNCTIONAL UPDATE Moira: Discussed and agreed not to include SP for CPI zones in the plant demand cube for 2015/16 and beyond this year. Will be reviewed before next year's BP input. Laurie: Updated the Board on the Scottish Coal situation. We are talking positively with Hargreaves who are taking over most of the Scottish Coal sites on the NFE from the liquidators. Niall: Interviews being held shortly for the vacancy created by Mike Cowan's promotion on TRA. Alan S: The Planning Minister visited the recently completed Ardgarten Forest Holidays site with the Depute Chief Planning Officer, as part of a visit organised by Loch Lomond and Trossachs National Park. This provided an opportunity to explain FCS role, including in relation to tourism. Feedback was positive. Two new members of staff have been recruited to fill the posts of Web/Digital Manager and Web Editor. Simon: A meeting of the key organisations is being arranged by Cairngorm National Parks to discuss the long term vision for Cairngorm Mountain. 12. FES PRIORITY POSTS A new list to be prepared for the August meeting to allow a ranking exercise. 13. AOB • PID - The Lodge House Re-development Project: was requested by the district for 2013/14. A further amount of £210k • PID - the Lodge Landscaping Project: An additional £129,500 was requested for external landscaping and car park surfacing at David Marshall Lodge. The Board did not agree to the further redevelopment of the Lodge House at this time. The Board agreed that the house be made sound through the normal buildings maintenance budget, and that potential uses for the building be reconsidered once 8 | FESMB Board Minutes | Frances MacKenzie | 24/09/2013 David Marshall Lodge is again fully operational. Experience from Glentress suggests that a range of service delivery businesses may become interested in a base from which to operate at David Marshall Lodge. On the landscaping project, the Board agreed that the works would add value; but that this should be remitted into the normal business plan and variance process to be considered against other districts' priorities. • Auchlochan in Scottish Lowlands FD received Scottish Finest Woods award for new commercial planting. The next meeting of FESMB is on 7/8 August 2013. 9 | FESMB Board Minutes | Frances MacKenzie | 24/09/2013