Forestry Commission Trade Unions - www.fctu.org.uk
Operational Efficiency Programme (OEP)
News
Asset Portfolio UPDATED 8th December 2009
The OEP Asset Portfolio released on 7th December shows how the Public Forest Estate in England could be dealt with as part of the OEP. The FCTU have asked for further clarification on certain aspects such as leasing and Special Purpose Vehicles. We hope to bring you another update once the Chancellor has outlined his Pre-Budget Report to Westminster on Wednesday. You can view the whole report via this link: http://www.hmg.gov.uk/frontlinefirst.aspx
Should you have any questions about this programme and how it will affect you please contact the FCTU Office or your local representative.
What is OEP and how will it be carried out?
The Operational Efficiency Programme is part of the Government’s ongoing strategy to deliver better value for public money. It is the next step in a series of cross – public sector reforms which started with the Gershon Review in 2004. The Operational Efficiency Programme has 5 strands of which one is looking at Asset Management. The other strands cover: back office and IT; collaborative purchasing; property (office based); and local incentives and empowerment. A progress report from the Treasury in April 2009 flagged up the inclusion of the Public Forest Estate in England.
The terms of reference for the OEP work as agreed by Treasury and DEFRA Ministers are to:
“Consider how the public forest estate in England can generate greater commercial benefit – including from new and innovative opportunities – while respecting the Government’s continuing commitment to public sector ownership of and involvement in the management of England’s woodlands and continuing to deliver social and environmental benefits.”
The work will be undertaken by the FC in England through a working group led by Simon Hodgson Chief Executive for Forest Enterprise in England and will be made up of a mixture of internal experts and external consultants.
The Working Group will in turn report to a Steering Group comprising of representatives from FC (Paul Hill-Tout), DEFRA, Treasury and the Shareholder Executive. The Steering Group will take advice from the FC England National Committee and will then report to DEFRA and Treasury Ministers.
Progress reports on the work will be included in the OEP strand of the Pre-Budget Report in the autumn of 2009 and the Budget in the spring of 2010.
The Steering Group has agreed that the Working Group will focus on 5 strands:
- Forestry and Timber;
- Recreation and Leisure;
- Renewable Energy (wind power);
- Other main actual or potential areas for income generation (i.e., minerals, development etc);
- New funding opportunities (Joint Ventures, leases, bonds, etc).
In examining each strand, the Working Group will examine where appropriate:
- the current business model;
- new opportunities;
- alternative business models.
Our prime concern is that the OEP appears to be a programme aimed at trying to address current budget deficits and any scrutiny of individual income streams may lead to proposals for outsourcing, leasing, etc. This may aid in the reduction of Government costs within the current delivery mechanisms, but may also lead to cash cuts, staff cuts, etc. It is therefore vital that the unions are engaged with the Working Group so that we can attempt to influence decisions and protect our members working in England at this time.
If you have any comments or views please feel free to contact the FCTU office or speak to your local representative.