6. Debate on the Public Accounts Committee Report: Natural Resources Wales's Annual Report and Accounts 2017-18

Part of the debate – in the Senedd at 4:52 pm on 13 February 2019.

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Photo of Lesley Griffiths Lesley Griffiths Labour 4:52, 13 February 2019

Thank you very much, Deputy Presiding Officer, and thank you for the opportunity to respond during this debate today. There were three recommendations made by the Public Accounts Committee following their scrutiny of NRW's annual report and accounts and NRW has responded to the first two recommendations. I wrote to the committee on 11 January setting out the Welsh Government's response, and I agreed to consider the findings of the independent review NRW commissioned, together with the evidence they gave to the committee earlier this week.

I welcome the committee's report and its work in challenging NRW and Welsh Government to ensure our natural resources are maintained and enhanced now and in the future. I want to give the Assembly my assurance that Welsh Government is fully prepared to grasp the issues described in the committee's report. We're determined to see through the necessary changes at NRW and to learn lessons. We recognise and welcome the National Assembly's role in scrutinising this process and making its contribution to driving that change.

Since the auditor general's qualification of NRW's accounts last summer, I've appointed an interim chair and six new board members. These changes to the board mean the full complement of the longest-standing members' strengths combined with the new members will ensure we have the mix of experience and knowledge required to ensure strong leadership of such a large and complex organisation. Indeed, during the PAC session on Monday, the interim chair outlined to the committee the positive impact the new board's leadership was already bringing to NRW, and, in his remarks, I think the Chair, Nick Ramsay, alluded to the change that the new leadership is now having on the organisation.

I've spoken in detail to the chief executive about the independent review of NRW's commercial forestry operations, conducted by Grant Thornton. I'm satisfied she and the interim chair are taking a strong lead on putting things right in the organisation. The organisation accepts the findings and recommendations of the Grant Thornton report and is making progress at pace against them. They will be keeping me appraised of their progress against these at our regular meetings. The report, which has been made publicly available, is a powerful driver for change. The required changes to contract management set out in the report are especially urgent. I know NRW is taking advice from the appropriate agencies to support them with this. They've assured me that, where Grant Thornton has suggested issues require further investigation, their internal audit team are doing so. 

At the Public Accounts Committee evidence session this week, the chief executive stated that their internal audit team are reviewing the remaining contracts not covered by the Grant Thornton review. The results of these will be available to their audit and risk assurance committee, which includes representatives from Wales Audit Office and the Welsh Government. 

Yesterday, I met with representatives of the Confederation of Forest Industries. They have told me they are willing to work with NRW and Welsh Government and are confident there are clear solutions to the concerns they have expressed in the past. I'm assured from my discussions with Confor and NRW that we are now in a stronger position to see the forestry sector deliver even more value to the Welsh economy and the industry can make an even greater contribution to protecting and enhancing our natural environment. 

I would like to remind Members—and this is especially Mohammad Asghar—that NRW is supported by many hardworking, committed staff across the whole country, who deserve our respect. I was very disappointed to hear you say that they've failed the people of Wales. At times, the public discourse surrounding the challenges in one area of NRW's work has neglected the fact that the organisation delivers some of our most fundamental responsibilities to the people of Wales. 

Today, and every day of the year, NRW staff are protecting people's homes from the devastating impacts of floods, they're tackling the scourge of illegal waste, they are defending our most vulnerable native species from extinction. They are doing outstanding work—as referred to by Llyr Huws Gruffydd and Jenny Rathbone—often in extremely challenging circumstances, and I urge Members to take the opportunity to show their appreciation and I want to put on record my sincere thanks to them.