ANNUAL PLAN 2014/15

1. ANNUAL PLAN 2014/15 Centre for Environment, Fisheries and Aquaculture Science (Cefas) March 2014 Draft (Internal version)

2. A: Vision and purpose Cefas has an inspiring and challenging vision: To make a real difference for society . . . . . . . by supporting the long-term prosperity, growth and well-being of industries, communities and individuals that enjoy and depend on the rich natural assets found in our marine and freshwater environments. With many competing demands, decision making is complex, often international, and relies on the timely, integrated evidence and advice that we provide as recognised leaders in our field. We have a clear purpose as the government's foremost source of marine evidence, applied science and impartial expert advice. This purpose is founded on our ability to innovate and to integrate a uniquely comprehensive national capability. It is enabled by the excellence of our science, technology and people; by effective collaboration and partnerships; and by applying commercial disciplines. We focus on marine and closely related sectors, with our activities extending across both the public and private sectors to bring valuable knowledge, industry insight and financial benefit to government policy making. Our activities support Defra and the government’s ambition to: grow the national economy, improve our environment and safeguard animal health and biosecurity. Our work directly contributes towards the annual £49bn of economic activity within the UK’s marine sectors and brings wider socio-economic benefits including incident response capability. #

3. A: Cefas strategy We are confident our varying customers have a strong, long-term need for our science. This underpins our strategy and enables us to seek the many opportunities arising in challenging and changing times. Our strategy is to maintain the leading edge, integrated science our customers need through attracting and developing the brightest people in our sector, utilising the latest technology and collaborating with other leading partners. Nearly 50% of Cefas work is now won in open competition and we apply the commercial approach required for such success to all our activities, whether for UK government or wider markets. We aim to maintain the breadth of science capability required by our Defra customers through diversifying our customer base. We expect to offset the impact of public sector funding reductions through serving new customers to sustain Cefas delivered turnover around current levels. Our overarching strategic principles are: • We focus on marine, aquatic animal health and closely aligned sectors in the support of government; extending our customer base across the public sector, UK wider markets, the EU and, where appropriate, worldwide to help maintain our leading capabilities and assets; • We openly compete on value and our ability to provide comprehensive capabilities. We pride ourselves on the high quality of our science, our customer focus and our strong relationships across the marine sector; • We place a strong emphasis on long term relationships and partnerships: with our customers, core suppliers and the wider scientific community; • We always operate to leading health and safety standards and promote an exemplary behavioural safety culture; • We continually challenge ourselves to improve our performance and sustain our competitiveness. We retain in-house only those services that ensure our unique offering; • We act as a bridgehead to help UK SMEs access overseas markets by using our government to government position; • We re-invest margins generated from competed work with approximately 5% of revenue allocated to self-investment. This ensures that our science, technology and skills remain leading-edge and relevant to our customer’s needs; • We will work to secure leading facilities and rewards for our staff that support our long term vision. Diversifying income story: 2007 - 2015 Defra Network Others Other UK Govt 2007 2012 2015 % £48m £53m £50m 37% 45% 20% 13% 20% 27%

4. B: 2014/15 priorities Over the next three years to 2017, we will strongly support a “blue growth” agenda using our science to drive economic opportunities for the marine sector of the UK and in carefully selected overseas markets. This year, as Defra’s marine science advisor, we will support growing the industry sectors within Defra’s remit and major UK infrastructure investments . We will increase collaborative working with Fera and AHVLA and enhance partnerships with academic and Research Council bodies to leverage our scientific impact. We will respond to public sector funding reductions by further diversifying income, with sales from beyond core Defra rising c10% pa to £28m by 2016/17. This requires a step change in our wider market approach to win work from new customers and so sustain our capabilities for UK government. We will continue to deliver the recommendations arising from the Cefas Science Review 2012 to further enhance the quality, impact and reputation of our science. We will create active development opportunities for our people and will continue to invest in customer management, health and safety and leadership skills. This will support our people in managing our growing & diversified customer base. Within the Defra reward strategy we will evolve Cefas pay scales towards equivalent government and science bodies. We will further invest in our IT capability to ensure we are applying leading technology to our customers’ needs. We will continue to work as ‘one business’ with colleagues in Defra and the wider network, to bring together structures, systems and processes to deliver a better customer experience at a lower cost. Within this, we will work with Defra to consider proposals for new laboratory and office facilities to accommodate the Lowestoft site, ideally by 2017. In delivering our Plan, we also need to manage c£3m of Defra reductions, £0.6m of inflationary pressures and mitigate £0.5 – 2.5m of identified risks to sustain a viable and vibrant future for Cefas, its customers and its people. Detailed actions are set out in Annex 1 under the themes of business, science and people.

5. B: Cefas performance indicators 2014/15 A balanced scorecard approach aligns performance indicators with Cefas’ strategic objectives. Each indicator assesses the agency’s performance against externally assessed metrics. Summarising 2014/15: we will further focus on diversifying income alongside gains in science excellence and corporate responsibility measures.

6. C: Defra Business Plan priorities Cefas provides significant support to Defra and government’s priorities, these are reflected in the sectors in which Cefas operates, including: Growing the national economy: New models for fisheries management are needed to secure long-term sustainable fisheries, to support a viable fishing industry and to provide secure, healthy food supplies. Progress with reform of the CFP and partnership working with industry provides opportunities for greater regionalisation of resource management. Implementation of the Marine and Coastal Access Act, and engaging with EU proposals on maritime spatial planning, can support economic growth in the marine area, balanced with environmental and community protection, as well as ensuring future investments take account of the risks of a changing climate. Improving the environment: This includes implementing the EU’s MSFD and delivering on a wide range of obligations at the domestic, European and international levels. A well managed network of Marine Protected Areas can contribute to the conservation of biodiversity and associated ecosystem services. Decision making is complex and needs to manage tensions between conservation and socio-economic needs. A strong evidence base is crucial to supporting effective policy decisions. Safeguarding animal health and biosecurity: Disease surveillance and advice on biosecurity measures to industry are cornerstones to ensuring aquatic animal health and supporting a sustainable aquaculture industry which is reliant on healthy stock and high quality products to underpin consumer confidence. Wider protection of fisheries from disease threats and contingency plans for the control and eradication of disease outbreaks are an essential part of effective risk management. New risks from the introduction of non-indigenous species due to climate change provide additional challenges to safeguarding fish and shellfish health. Detailed actions are set out in Annex 2, Cefas Impacts.

7. D: Finance summary

8. E: Risks, opportunities and assumptions In aggregate, operational risks for 2014/15 could reduce the business plan surplus by up to £2.5m. The table below summarises the material risks identified in our current risk register. Individual risks are managed within the totality of the plan, flexing our responses as appropriate. Strategic risks are identified where action is required during 2014/15 to mitigate potentially significant impacts during the Spending Review period. The actions are embedded within this plan.

9. E: Risks, opportunities and assumptions Plan assumptions Executive agency status: we remain an Executive Agency of Defra, with substantially unchanged governance structures and no major changes to the business model or core elements of Cefas. Diversification of income is valued and enables contract margins from non-Defra customers to be self-invested. Cefas and Defra will deliver on the 2012 Cefas Science Review actions. High Level Agreement (HLA): on-going commitment to key principles of partnership, single-point customer focus for all Defra activities and 3 year stability of funding indications. Agreed 2014/15 budgets and capital commitments are maintained. Resources: an ability to take management decisions on recruitment and day-to-day capital needs, within agreed budgetary and planning envelopes while applying Cefas’ customary business controls and delegated authorities.

10. F: Governance and structures As an Executive Agency, Cefas is accountable to Parliament through ministers. Ministers nominate a member of the Departmental Supervisory Board to act on their behalf in all ownership matters. Day-to-day responsibilities are discharged through the CEO. Governance structures are formalised in the agency’s Framework Document. Defra defines strategic context and overarching financial/ operational controls, and approves the strategy/ plans set by Cefas. Cefas’ Chief Executive, as Accounting Officer, has personal responsibility and accountability to Parliament for the organisation and quality of management within Cefas, including its use of public assets and stewardship of public assets. The Chief Executive is supported and challenged by the Cefas Management Board (CMB). The CMB provides strategic entrepreneurial leadership within a framework of effective controls that enable risk to be assessed and managed. It is collectively responsible for advising the Chief Executive and Accounting Officer in securing the long-term success of the agency. This includes setting strategic aims and objectives, ensuring that necessary leadership and resources are in place to deliver these aims, challenging and supporting management performance, reporting to Defra and externally on its stewardship. A broadly equal split of Executive and Non-Executive Directors (NEDs) gives the appropriate balance of skills, experience, independence and knowledge of Cefas to enable the CMB to discharge its duties and responsibilities. The CMB is chaired by the Lead NED and includes a Defra Director level board member. The key sub-committees of the CMB are Audit, Science Advisory and People. These have an wholly external membership and are chaired by NEDs. Cefas adopts relevant principles and protocols outlined in the “Corporate Governance in Central Government Departments: Code of Good Practice” (July 2011). Cefas maintains a range of quality assurance systems and processes including accreditations to ISO9001 (Quality), ISO17025 (Laboratory Testing and Calibration Competence), OHSAS18001 (Health and Safety) and ISO14001 (Environmental). Cefas is committed to supporting the government’s transparency agenda and publishes a range of corporate data (http://www.cefas.defra.gov.uk/publications-and-data.aspx).

11. F: Cefas Senior Management and Divisional Structures Non-Executive Directors: Sue Sharland (Chair, People Cttee, Lead NED) , Andy Field (Chair, Audit Cttee to May) Nick Owens (Chair, Science Advisory Cttee), Michael Gates (to July). Lee McDonough (Defra - Board Member) Chief Executive & Accounting Officer Mike Waldock Operations Dir Steve Millward Finance Dir Tim Green Chief Scientist Stuart Rogers Commercial Dir HR / OD & Corp Dir Karin Rundle Fisheries Division Ross Jolliffe Provides expert advice on the management of wild fisheries to secure sustainability, support a viable fishing industry and to provide healthy food supplies.  Delivers robust evidence that enables development and implementation of fisheries policy and contributes to the Marine Strategy Framework Directive.  Innovates in international fisheries and ecosystem management advice. Aquatic Health & Hygiene Division Steve Irving Ensures that fish and sea-food is safe to eat and supports food sustainability and security objectives. Works with the aquaculture industry to secure healthy farms, to contain disease outbreaks and to assess options for increasing domestic production. Ensures compliance with EU law on aquatic animal health, linking closely with work on wild fisheries. Assesses impact of chemical contaminants on aquatic animals. Monitoring & Programme Management Division Sian Limpenny Plays a lead role in marine monitoring and data management through the provision of monitoring technology, chemistry/ radiochemistry laboratories, software tools and operation of the Research Vessel. This high quality evidence supports wider Cefas activities, and forms the basis of important partnerships across the public sector. Portfolio/ fund management skills support delivery of major programmes. Environment & Ecosystems Division David Carlin Implements the ecosystem approach to the management of a wide range of human activities, including dredging, construction, fisheries and the oil and gas industry. Advises on implementation of the EU Marine Strategy Framework Directive, determining what Good Environmental Status means in practice. Leads on marine climate change impacts & adaptation and hydrodynamic & ecosystem modelling.

12. Acronyms and abbreviations CEO Chief Executive Officer CFP EU’s Common Fisheries Policy CMB Cefas Management Board CSAC Cefas Science Advisory Committee DECC Department of Energy and Climate Change DEFRA Department for Environment, Food and Rural Affairs EAP Employee Assistance Programme EdF Electricite de France EU European Union FTE Full-time-equivalent employees FSA Food Standards Agency HLA High Level Agreement, between Defra and Cefas HMT Her Majesty's Treasury HR/OD Human Resources and Organisational Development HSEQ Health, Safety, Environment & Quality IT Information Technology JCOP Joint Code of Practice quality standard KPI Key Performance Indicator MCZ Marine Conservation Zone MMO Marine Management Organisation MoD Ministry of Defence MSFD EU’s Marine Strategy Framework Directive NED Non-Executive Director NERC Natural Environment Research Council OH Occupational Health QA Quality Assurance RACs Regional Advisory Councils (for fisheries) R&D Research and Development SD Science Director SME Small and Medium Sized Enterprise SNCB Statutory Nature conservation Body SMT Cefas’ Senior Management Team executives # £49bn annual economic activity in the UK’s marine sectors as agreed by the Productive Seas Evidence Group, 2013

13. Annex 1: Business Creating a safe and vibrant business that is valued and trusted as a strategic partner Defra continues to be central to Cefas’ activities and the commitment embodied in our High Level Agreement (HLA) adds considerable mutual value. There continues to be strong legislative and environmental drivers for our services to wider customers. This year we will further expand our wider markets income through pursuing all appropriate UK opportunities and deepening customer relationships in the Middle East. The focus on further income diversification maintains Cefas delivered turnover at current levels by assuming wider market growth of c10% pa. To achieve this we will focus on: • The low carbon energy sector, other major capital projects in the coastal zone, the oil and gas sector and the veterinary medicines sector; • food safety and security, strengthening partnership with the FSA and in the aquaculture sector; • nurturing /growing business in the Middle East using our customer delivery in Kuwait as a reference model and to enhance our cultural experience. This relies on continued investment in our people, our health & safety performance, our customer management capabilities and the nurturing of partnerships with other public and private delivery bodies and suppliers. Recruiting relevant commercial and project management skills continues to be essential. We will continue to maintain resilience and flexibility of delivery through adaptable staff (see “People”) and by further developing a high-quality suppliers network We will continue to invest to maintain strong project management across Cefas and highly efficient and effective corporate services. We will also collaborate with wider civil service “efficiency” initiatives, maximise the use of our assets and seek to simplify internal processes. Cefas Reaching Worldwide The UK brand is strong internationally and as advisers to Government we are well placed to work in partnership with overseas policy makers to deliver better resource management and environmental protection. In this way we can act as a bridgehead for smaller companies to deliver new services. An example of our increasing overseas portfolio includes work with the Kuwait Environment Public Agency. Cefas is designing monitoring programmes for Kuwait coastal waters and training their staff to implement and manage future projects. Ultimately much of the surveillance work will be tendered in the open market giving UK companies a competitive edge since they have experience of UK compliance systems.

14. Annex 1: Business Creating a safe and vibrant business that is valued and trusted as a strategic partner

15. Annex 1: Science Investing in future capability to generate excellent applied science ‘The general level of science at Cefas is excellent and in several areas is leading at the European and global level.’ (Review Panel report, 2012) Over the next 12 months, planning for integrated evidence provision across the Defra Network will have a growing influence on Cefas science. We will provide support via the Defra Strategic Network Evidence Group and Marine Science Coordination Committee, working with policy leads and network partners to provide cost-effective solutions and support government in development of national programmes to deliver data and evidence. Cefas will continue to diversify sources of R&D income to counter continuing public sector austerity, thereby maintaining our reputation for high quality applied science. Strategic Alliances with the University sector, engagement with nine new Doctoral Training Partnerships, and new collaborations for Horizon2020 funding will help maintain our innovative approach to problem solving. Seedcorn investment will support our successful studentship programme, and investment in aerial/marine remote observation, modelling and forecasting, ecosystem goods and services and molecular techniques for rapid diagnosis will grow. Demonstrating a return on such investment will be central to the programme. We will build on progress already made with the Cefas IT Strategy, increasing the provision of rapid and flexible web access for staff, cloud based data storage and high performance computing facilities. We will consult on our developing evidence strategy to ensure that we have a clear vision for future science capability in Cefas. Cefas on RRS Discovery in the Celtic Sea Following the award of projects under the NERC-Defra funded Shelf Sea Biogeochemistry Programme, Cefas staff will be joining an intensive series of surveys by the new NERC research vessel in the Celtic Sea throughout 2014. Research will examine the intensity of carbon and nutrient fluxes in shelf seas, and undertake detailed studies of nutrient cycling in benthic ecosystems – the first time such a coordinated programme has been attempted. Together with a innovative modelling programme to extend and combine existing hydrodynamic and ecosystem models, these programmes allow Cefas access to world class research facilities, and a great opportunity to influence the direction and outcome of this major UK research exercise.

16. Annex 1: Science Investing in future capability to generate excellent applied science

17. Annex 1: People Attracting, developing and enthusing exceptional people Staff Survey Engagement Scores Cefas has achieved levels of engagement among the higher performing organisations in the Civil Service. We know that our people are immensely interested in the work they do and value the flexibility and autonomy to deliver, that our working environment provides. Maintaining this flexibility and autonomy is proving challenging to maintain given changing political and commercial priorities. We will therefore work harder to ensure open and timely communications support our continued evolution to new ways of working and new attitudes to sustain the organisation. This could mean differing locations and, most importantly, a change in leadership style as the organisation continues to carve out new markets and technology speeds up our evidence collection. By default these are opportunities that attract and retain the right people. We will be focusing on attracting, developing and motivating a highly skilled workforce by providing time to carry out research, to innovate techniques and to share ideas to meet our longer-term vision as well as personal aspirations to “make a difference”. Wellbeing and ensuring there is the right balance between home and work life is a key priority. Whilst change is a constant feature of working life there is a duty to safeguard people’s health, safety and welfare at work. Professional support and clear guidance on where to go for to for assistance will be relaunched as part of our holistic approach to managing our people. This plan requires 530-535 full-time equivalent employees (FTEs), equating to a total salary bill of £22m. This enables an acceptable level of resourcing , after several particularly tight years, to sustain business, quality and capability. Safeguarding People in a High Performing Organisation The Safeguard Software system has been designed to transform the HSEQ Management Systems. The web based platform will be easily accessible, intuitive and allow people to manage business risk in a modern, user friendly manner. The system has customised modules for reporting and managing ‘risk flags’, tracking actions and notifying key staff of progress in workflows. Further modules for managing Cefas documents, audits, inspections and training records will allow people to manage their business processes in one integrated software solution. This will not only save considerable time and resource; continue to improve our overall business performance but allow people to use the time to connect and join up work areas in innovative ways. This system is unique in the science agencies, in fact no organisation in the wider Civil Service has an integrated HSEQ management system.

18. Annex 1: People Attracting, developing and enthusing exceptional people

19. Annex 2: Cefas Impacts Our status requires us to provide impartial evidence and advice. We maintain an emergency response service and breadth of capability to provide integrated answers to complex problems. In line with our vision of “making a real difference for society”, we view Cefas’ overall impact in terms of our contribution to supporting sustainable economic growth, to ensuring good environmental status for our seas, to maintaining high aquatic animal health and to providing healthy, secure food supplies. Cefas has a key role to play as Defra’s marine science advisors in ensuring effective delivery of Government priorities. Specific Impact actions are set out below:

20. Annex 2: Cefas Impacts