Part of the debate – in the Senedd at 5:29 pm on 13 March 2019.
Natural Resources Wales is not fit for purpose. The creation of Wales's largest quango came from an ill-conceived and poorly executed proposal to merge three different organisations with three different working strategies. As a result, leadership has been lacking, staff morale has been plummeting, public money has been wasted and confidence in the organisation has evaporated. The Welsh Government has received plenty of warnings about the serious failing of NRW but it has failed to act. For an organisation so important to life in Wales to have its accounts qualified for the third consecutive year is unprecedented and unacceptable. We now hear that the new chief executive of NRW has admitted that their accounts could be qualified for another unprecedented fourth year.
In its recent report, the Public Accounts Committee concluded that NRW's internal controls are not fit for purpose, but—and this is particularly concerning—the same issues of irregularities were highlighted three years ago by the then auditor general. This combination of incompetent leadership, lack of accountability and low staff morale led to the departure of staff with vital commercial expertise. As a result, decisions have been made that have caused serious financial loss for the taxpayer. This is demonstrated by the controversy over how timber was sold repeatedly without going to the open market. This scandal lost the Welsh taxpayer at least £1 million, and it resulted in the resignation of the NRW chair.
The situation was described at the time by Lee Waters, before his promotion to the frontbench, and he said—and these are his words—
'there should be accountability from the senior leadership...of this organisation, which does seem to be out of control.'
He went on to say that
'it does appear that the forestry section of NRW is out of control'.
There has been a consequent and widespread loss of faith in NRW. Ten timber firms recently sent a joint letter to the Welsh Government saying that they had no confidence in NRW's ability to manage forestry in Wales. They claimed that 12,000 jobs in the rural economy and £100 million of new investment over the next five years were at risk. These companies concluded that they had no confidence in the ability of NRW to deliver commercially, viably, a sustainable or commercially driven service.
In 2018, NRW gave in to ministerial pressure and decided not to renew licences for game bird shooting on land owned by the Welsh Government. This decision flew in the face of scientific evidence and NRW's own report that there was no need to change existing laws. By caving in to the Welsh Government, NRW has put a sector worth £75 million a year to the Welsh economy and 2,400 jobs at risk.
Deputy Presiding Officer, Natural Resources Wales has systematically failed the people of Wales. The current situation cannot be allowed to continue. It is time to scrap NRW and replace it with two separate bodies: one handling the regulatory duties undertaken by the organisation and the other, its commercial aspects. That's what this side of the Chamber is asking for. Only by making these changes can we deliver value for money for the taxpayer and provide efficient and effective protection for the environment in Wales. Thank you.