MMO framework document

Q: Signatures

Signed: Mike Rowe Date: 12/05/2022 (On behalf of Defra ) Signed: Hilary Florek Date: 29/04/2022 (On behalf of the MMO )

Question 1

Introduction and background

Accepted Answer

1. Purpose of document

1.1 This framework document (the “framework document”) has been agreed between the Department for Environment, Food and Rural Affairs (Defra) and the Marine Management Organisation (MMO) in accordance with HM Treasury’s handbook ‘Managing Public Money’ (MPM) (as updated from time to time) and has been approved by HM Treasury.

1.2 The framework document sets out the broad governance framework within which the MMO and Defra operate. It sets out the MMO’s core responsibilities; describes the governance and accountability framework that applies between the roles of the Defra and the MMO and sets out how the day-to-day relationship works in practice, including in relation to governance and financial matters. The MMO and Defra, as the sponsor department, will ensure that they understand each other’s strategic priorities and those of other relevant parties, agree plans that reflect these appropriately, and keep each other informed, in good time, of risks and issues with the potential to affect delivery or performance.

1.3 The framework document does not convey any legal powers or responsibilities but both parties agree to operate within its terms.

1.4 References to MMO include all its subsidiaries and joint ventures that are classified to the public sector and central government for national accounts purposes. If the MMO establishes a subsidiary or joint venture, there shall be a document setting out the arrangements between it and the MMO agreed with Defra.

1.5 Copies of the framework document and any subsequent amendments have been placed in the libraries of both Houses of Parliament and made available to members of the public on the MMO pages of the gov.uk website.

1.6 This framework document should be reviewed and updated at least every 3 years unless there are exceptional reasons that render this inappropriate that have been agreed with HM Treasury and the Principal Accounting Officer (PAO) of the sponsor department. The latest date for review and updating of this document is June 2024.

2. Objectives

2.1 The Defra Group Outcome Delivery Plan shows how the diverse range of outcomes and activities across the group contribute to Defra’s priority outcomes and strategic enablers. All of Defra’s public bodies, regardless of their role and positioning, act together on a shared agenda in contributing to the single vision of improving and protecting our environment by making our air purer, our water cleaner, our land greener and our food more sustainable.

2.2 Defra and the MMO share the common objective of delivering Defra’s priority outcomes (DPO) and specifically, DPO 1 – Environment and DPO 4 – Agriculture, food, fisheries, animal welfare and biosecurity. These objectives are set out in the department’s Outcome Delivery Plan, as agreed by HM Treasury. To achieve this the MMO and Defra will work together in recognition of and respecting each other’s roles and areas of expertise, providing an effective environment for the MMO to achieve the outcomes through the promotion of partnership and trust, ensuring that the MMO also supports the strategic aims and objectives of Defra and the wider government as a whole. Both partners will also commit to keeping each other informed of any significant issues and concerns. The terms of engagement are included in this document including a description of the meetings that will take place and how any disputes between the department and the MMO will be resolved.

3. Classification

3.1 MMO has been classified as a central government organisation by the ONS/HM Treasury Classifications team.

3.2 It has been administratively classified by the Cabinet Office as a non-departmental public body.

Question 2

Purposes, aims and duties

Accepted Answer

4. Purposes

4.1 MMO was established on the 1 April 2010 under the Marine and Coastal Access Act 2009 (MCAA). Its general objective, powers and functions are set out within the MCAA and include functions delegated to it by the Secretary of State (SoS) pursuant to section 14 of that act and are to support the strategic aims and the Single Departmental Plan of Defra.

4.2 The MMO is responsible for regulating activities in the seas around England, and in relation to vessels registered to ports in England anywhere in the world, working at arm’s length from government departments, and is accountable to Defra ministers. It is accountable to the SoS for Defra and is a member of the Defra Group.

4.3 The MMO holds further cross departmental responsibilities and is accountable to the SoS for each respective department (agreements under Section.14 of the MCAA authorising MMO to perform marine functions of the SoS are outlined in Annex 1, paragraph 2 of this document).

4.4 Where permitted by statute, the government may ask the MMO to take on additional functions or new work, on a permanent or temporary basis. The decision to take on the additional work will be made jointly by the Secretary of State and the MMO Board.

5. Powers and duties

5.1 MMO’s statutory powers and duties are described in the MCAA 2009 (the act). The act transfers some functions of the SoS to the MMO for example the licensing of fishing boats and marine licensing and allows for the delegation of marine functions of the SoS via section 14 of MCAA, for example funding relating to fisheries. These functions are set out in Annex 1 and include the power to charge for services (Section 27) and the power to bring criminal proceedings (Section 29). The power to charge for services has since been extended by Section 34 of the Fisheries Act 2020.

5.2 MMO’s statutory duties and functions are:

marine licensing (including compliance monitoring and enforcement
marine planning
marine conservation and MMO byelaw implementation
fishing vessel licensing (including the licensing of non-UK vessels by the UK Single Issuing Authority)
the verification of catch certificates for fish exports via the UK Fish Export Service
fisheries management, monitoring and enforcement
Harbour Orders including Harbour Revision and Harbour Empowerment Orders
advice to Inshore Fisheries Conservation Authorities (IFCAs) regarding byelaws and managing the appointment of General Members to the IFCAs Committees
administration of the European Maritime and Fisheries Fund (EMFF), Maritime and Fisheries Fund (MFF)
any additional financial funding schemes as instructed by Defra, which may be detailed in writing in, for example, a letter of delegation, Operational Framework or Memorandum of Understanding (MOU):
- Fisheries and Seafood Scheme (FaSS) which is the domestic scheme for England following the UK’s exit from the European Union, re-launch managed via a letter of delegation, and agreed KPIs and roles & responsibilities
- UK Seafood Fund – Infrastructure Pillar, managed via a letter of delegation

6. Aims

6.1 The MMO’s strategic aims are to enable and maintain a coherent and co-ordinated approach to strategic delivery for the marine area, in conjunction with other delivery bodies and organisations, by drawing on its own knowledge and expertise and that of others.

6.2 The MMO will deliver its strategic aims in the context of the Defra Group Outcome Delivery Plan outcomes.

6.3 The MMO carries out marine planning function on behalf of the UK government (for waters around England) and is the government’s principal regulator in English territorial waters and the UK offshore area for matters that are not devolved or excluded under MCAA. It delivers functions on behalf of several government departments. The MMO leads on coastal and marine conservation issues and is the body charged with issuing licences for key developments impacting the marine area, including energy installations, infrastructure projects and dredging activities. It plays a key role in the regulation and enforcement of fisheries in England (in conjunction with the IFCAs) and is responsible for co-ordinating the reaction to marine emergencies e.g., oil and chemical spillages.

6.4 The MMO will contribute to the achievements of the Defra priority outcomes, delivering the MMO strategic purpose of enabling sustainable growth in the marine area and supporting coastal communities, whilst protecting and enhancing the marine environment for current and future generations.

6.5 The Marine Policy Statement (2011) provides a framework for the MMO’s activities in the marine area. This key piece of national policy sits alongside important United Kingdom legislation which implemented European Union legislation before the United Kingdom left the EU, such as the Marine Strategy Framework Directive, the Water Framework Directive, the Common Fisheries Policy, the Habitats Directive and Wild Birds Directive, the Environmental Impact Assessment Directive and the Renewable Energy Directive. National policy statements, for example, for ports, energy, renewable energy, gas supply infrastructure and oil pipelines, electricity networks infrastructure and nuclear power are all taken into account when decisions are made which require consideration of those policy objectives.

Question 3

Role of the department

Accepted Answer

7. The Responsible Minister

7.1 The Secretary of State for Environment, Food and Rural Affairs (the Responsible Minister) will account for the MMO on all matters concerning the MMO in Parliament (other SoS are accountable for aspects of the work of the MMO. Such cross-government relationships are discussed at Annex 1, paragraph 2 of this framework document).

7.2 The Minister’s statutory powers in respect of the MMO are set out in the MCAA.

7.3 These are:

to appoint a Chair and other members of the MMO Board (in consultation with the Chair) and approving the terms and conditions of board members
to confirm the appointment of the MMO’s Chief Executive Officer
to issue any general or specific directions, or guidance, to the MMO after consultation with the MMO
to lay copies of the MMO’s annual statement of accounts and auditors’ report of the statement before Parliament each year

7.4 Through the exercise of these powers the Minister:

is responsible for the policy framework within which the MMO operates
provides guidance and direction to ensure the strategic aims and objectives of the MMO are consistent with those of the department and government
approves the MMO corporate plan and business plan
has a power of approval in relation to the appointment of the MMO Chair in line with the Governance Code on Public Appointments
may review the performance of the Chair on a regular basis
has a power of appointment in relation to non-executives on the board in line with the Governance Code on Public Appointments
has a power of approval in relation to the appointment of the MMO Chief Executive Officer

7.5 The MMO will develop cross-government partnership arrangements to ensure that senior officials from the Centre for Environment, Fisheries and Aquaculture Science (CEFAS), the Foreign, Commonwealth and Development Office (FCDO), the Department for Business Energy and Industrial Strategy (BEIS), the Department for Transport (DfT) and the Department for Levelling Up, Housing and Communities (DLUHC) advise both the SoS and the Chair of the MMO on their strategic priorities including the MMO’s outcomes in light of the Government’s wider strategic aims, departmental priorities and Strategic Plans.

8. The Principal Accounting Officer (PAO)

8.1 The Principal Accounting Officer is the Permanent Secretary of the department.

8.2 The PAO of Defra designates the Chief Executive Officer as the MMO’s Accounting Officer and ensures that he / she is fully aware of his or her responsibilities. The PAO issues a letter appointing the Accounting Officer, setting out his or her responsibilities and delegated authorities.

8.3 The respective responsibilities of the PAO and accounting officers for ALBs are set out in Chapter 3 of ‘Managing Public Money’.

8.4 The PAO is accountable to Parliament for the issue of any grant-in-aid to the MMO.

8.5 The PAO is also responsible, usually via the sponsorship team, for advising the Responsible Minister on:

an appropriate framework of objectives and targets for the MMO in the light of the department’s wider strategic aims and priorities
an appropriate budget for the MMO in the light of the sponsor department’s overall public expenditure priorities
how well the MMO is achieving its strategic objectives and whether it is delivering value for money
the exercise of the Ministers’ statutory responsibilities concerning the MMO as outlined above

8.6 The PAO via the sponsorship team is also responsible for ensuring arrangements are in place in order to:

monitor the MMO’s activities, performance, and assurance mechanisms
address significant problems in the MMO, making such interventions as are judged necessary
periodically and at such frequency as is proportionate to the level of risk carry out an assessment of the risks both to the department and the MMO’s objectives and activities in line with the wider departmental risk assessment process and management
inform the MMO of relevant government policy in a timely manner
bring ministerial or departmental concerns about the activities of the MMO to the full MMO Board, and, as appropriate to the department’s board requiring explanations and assurances that appropriate action has been taken

9. The role of the sponsorship team

9.1 The Marine and Fisheries ALB Governance and Relationship Management team in the department is the primary contact for the MMO. The responsible Senior Civil Servant for this relationship is the Defra Director of Marine and Fisheries. They are the main source of advice to the Responsible Minister on the discharge of his or her responsibilities in respect of the MMO. They also support the PAO on his or her responsibilities toward the MMO.

9.2 Officials of the Marine and Fisheries ALB Governance and Relationship Management team in the sponsor department will liaise regularly with MMO officials to review performance against plans, achievement against targets and expenditure against its Delegated Expenditure Limit and Annually Managed Expenditure allocations. The Marine and Fisheries ALB Governance and Relationship Management team will also take the opportunity to explain wider policy developments that might have an impact on the MMO.

9.3 The sponsorship team will advise the PAO when necessary on matters related to section 8.5. Defra applies the best practice standards in the Cabinet Office (CO) Sponsorship Code. In doing so the department operates a proportionate, risk-based approach whereby accountability and oversight is managed between the MMO and the Sponsor team collaboratively. This function can be separate or integral to the policy team depending on a number of factors, including the size of the MMO. Sponsor teams draw on the central Defra Public Bodies Partnership team and nominated functional experts for support in carrying out their role

10. Group Corporate Services

10.1. The Defra Group operating model includes group-wide provision of Finance, HR, Digital, Data and Technology Services, Communications, Property and Commercial Services.

10.2. All corporate services that the MMO take from the Defra Group will be managed by Defra, with group Heads of Function responsible for the delivery of an effective quality of service. The scope of the services will be agreed with the MMO through a Partnership Agreement or similar mechanism to ensure that the service meets the needs of, and adds value to, the MMO’s Board and Accounting Officer.

10.3. The MMO is the Data Controller for all the personal data processed on its behalf by Defra. MMO will agree a formal Data Processing Agreement with Defra as required by the Data Protection Act 2018.

11. Resolution of disputes between the MMO and department

11.1 Any disputes between the department and the MMO will be resolved in as timely a manner as possible. The department and the MMO will seek to resolve any disputes through an informal process in the first instance. If this is not possible, then a formal process, overseen by the senior sponsor, will be used to resolve the issue. Failing this, the senior sponsor will ask the relevant policy director general to oversee the dispute. They may then choose to ask the Permanent Secretary to nominate a non-executive member of the department’s board to review the dispute, mediate with both sides and reach an outcome, in consultation with the Secretary of State.

12. Freedom of Information requests

12.1 Where a request for information is received by either party under the Freedom of Information Act 2000 (FOIA), the Environmental Information Regulations 2004 (EIR), the UK General Data Protection Regulation or the Data Protection Act 2018 (DPA), the party receiving the request will consult where relevant with the other party prior to any disclosure of information that may affect the other party’s responsibilities. The FOIA and EIR require the MMO to disclose information to the public upon request, except where one or more of the exemptions/exceptions to disclosure apply and, where applicable, the public interest test satisfied.

13. Reporting on legal risk and litigation

13.1 The MMO shall provide a regular update, with the format and content to be agreed between the MMO and Defra, to Defra on the existence of any active litigation and any threatened or reasonably anticipated litigation. The parties acknowledge the importance of ensuring that legal risks are communicated appropriately to the Sponsor in a timely manner.

13.2 In respect of each substantial piece of litigation involving the MMO, the parties will agree where relevant a litigation protocol which will include specific provisions to ensure appropriate and timely reporting on the status of the litigation and the protection of legally privileged information transmitted to the Sponsor to facilitate this. Until such time as a protocol is agreed, the parties will ensure that:

material developments in the litigation are communicated to the Sponsor in an appropriate and timely manner
legally privileged documents and information are clearly marked as such
individual employees handling the legally privileged documents are familiar with principles to which they must adhere to protect legal privilege
circulation of privileged information within government occurs only as necessary

14. Office of Environmental Protection

14.1 The Office for Environmental Protection (OEP) was created when the Environment Bill received Royal assent in November 2021. The OEP will, it is anticipated, have powers to monitor and report on the implementation of environmental law. It will also have powers to hear complaints from members of the public and investigate public bodies for failure to comply with environmental law. Where such failures are identified it will have powers to issue information and decision notices and may apply to the High Court for environmental review. The MMO looks forward to establishing a positive working relationship with the OEP when it is formally established.

Question 4

MMO governance and structure

Accepted Answer

15. Governance and accountability

15.1 The MMO shall operate corporate governance arrangements that, so far as practicable and in the light of the other provisions of this framework document or as otherwise may be mutually agreed, accord with good corporate governance practice and applicable regulatory requirements and expectations.

15.2 In particular (but without limitation), MMO should:

comply with the principles and provisions of the Corporate Governance in Central Government Departments Code of Good Practice (as amended and updated from time to time) to the extent appropriate and in line with their statutory duties or specify and explain any non-compliance in its annual report
comply with ‘Managing Public Money’
in line ‘Managing Public Money’ have regard to the relevant Functional Standards as appropriate and in particular those concerning finance, commercial and counter fraud
take into account, the codes of good practice and guidance set out in Appendix 2 of this framework document, as they apply to arms’ length bodies

15.3. In line with ‘Managing Public Money’ Annex 3.1 the MMO shall provide an account of corporate governance in its annual governance statement including the board’s assessment of its compliance with the code with explanations of any material departures. To the extent that the company does intend to materially depart from the code, the sponsor should be notified in advance and their agreement sought to this approach.

16. The Chief Executive Officer

Appointment

16.1 The Chief Executive Officer of the MMO is appointed by the board under Section 1 and Schedule 1(14) of MCAA with the approval of the Responsible Minister.

Responsibilities of the ALB’s Chief Executive Officer as Accounting Officer

16.2 The Chief Executive Officer as Accounting Officer is personally responsible for safeguarding the public funds for which they have charge; for ensuring propriety, regularity, value for money and feasibility in the handling of those public funds; and for the day-to-day operations and management of the MMO. In addition, they should ensure that the MMO as a whole is run on the basis of the standards, in terms of governance, decision-making and financial management, that are set out in Box 3.1 of ‘Managing Public Money’. These responsibilities include the below and those that are set in the Accounting Officer appointment letter issued by the PAO of the sponsor department.

Responsibilities for accounting to Parliament and the Public

16.3 Responsibilities to Parliament and the public include:

signing the accounts and ensuring that proper records are kept relating to the accounts and that the accounts are properly prepared and presented in accordance with any directions issued by the Secretary of State
preparing and signing a governance statement covering corporate governance, risk management and oversight of any local responsibilities, for inclusion in the annual report and accounts
ensuring that effective procedures for handling complaints about the MMO in accordance with Parliamentary and Health Service Ombudsman’s Principles of Good Complaint Handling are established and made widely known within the MMO and published on the MMO pages of the gov.uk website
acting in accordance with the terms of ‘Managing Public Money’ and other instructions and guidance issued from time to time by the department, the Treasury and the Cabinet Office
ensuring that as part of the above compliance they are familiar with and act in accordance with:
any governing legislation
this framework document
any delegation letter issued to body as set out in Section 20
any elements of any settlement letter issued to the sponsor department that is relevant to the operation of the MMO
any separate settlement letter that is issued to the MMO from the sponsor department
ensuring they have appropriate internal mechanisms for the monitoring, governance and external reporting regarding compliance any conditions arising from the above documents
giving evidence, normally with the PAO, when summoned before the Public Accounts Committee (PAC) on the MMO’s stewardship of public funds

Responsibilities to Defra

16.4 Responsibilities to Defra include:

establishing, in agreement with the department, the MMO’s corporate and business plans aligned with the department’s wider strategic aims and agreed priorities
informing the department of progress in helping to achieve the department’s policy objectives and in demonstrating how resources are being used to achieve those objectives
ensuring that timely forecasts and monitoring information on performance and finance are provided to the department; that the department is notified promptly if over or under spends are likely and that corrective action is taken; and that any significant problems whether financial or otherwise, and whether detected by internal audit or by other means, are notified to the department in a timely fashion

Responsibilities to the board

16.5 The Chief Executive Officer is responsible for:

advising the board on the discharge of the MMO Board’s responsibilities as set out in this document, in the founding legislation and in any other relevant instructions and guidance that may be issued from time to time
advising the board on the MMO’s performance compared with its aims and objectives
ensuring that financial considerations are taken fully into account by the board at all stages in reaching and executing its decisions, and that financial appraisal techniques are followed

Managing conflicts

16.6 The Chief Executive Officer should follow the advice and direction of the board, except in very exceptional circumstances with a clear cut and transparent rationale for not doing so.

16.7 If the board, or its chair, is contemplating a course of action involving a transaction which the Chief Executive Officer considers would infringe the requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness, is of questionable feasibility, or is unethical the Chief Executive Officer in their role as Accounting Officer should reject that course of action and ensure that the board have a full opportunity to discuss the rationale for that rejection.

16.8 Such conflicts should be brought to the attention of the PAO and the Responsible Minister as soon as possible.

16.9 Furthermore and if agreed with the responsible Minister, the Accounting Officer must write a letter of justification to the Chair of the Board setting out the rationale for not following the advice and recommendation of the board and copy that letter to the Treasury Officer of Accounts.

16.10 If the Responsible Minister agrees with the proposed course of action of the board it may be appropriate for the Minister to direct the Accounting Officer in the manner as set out in ‘Managing Public Money’ paragraph 3.4 onwards.

17. The Board

Composition of the board

17.1 MMO will have a board in line with good standards of corporate governance and as set out in its establishing statute and in guidance as set out in Annex 2. The role of the board shall be to run the MMO, and to deliver the objectives, in accordance with the purposes as set out above, their statutory, regulatory, common law duties and their responsibilities under this framework document. Detailed responsibilities of the board shall be set out in the board terms of reference. Remuneration of the board will be disclosed in line with the guidance in the Government Financial Reporting manual (FReM).

17.2 The board will consist of a chair, together with the Chief Executive Officer and no fewer than 5 and no more than 8 of non-executive members that have a balance of skills and experience appropriate to directing the MMO’s business. For MMO there should be members who have experience of its business, operational delivery, corporate services such as HR, technology, legal, communications and performance management. This will include as an executive and voting board member an appropriately qualified Finance Director as described in Annex A 4.1 of ‘Managing Public Money’. The board should include a majority of independent non-executive members to ensure that executive members are supported and constructively challenged in their role.

Board committees

17.3 The board may set up such committees as necessary for it to fulfil its functions. As is detailed below at a minimum this should include an Audit and Risk and Remuneration Committees chaired by an independent and appropriately qualified non-executive member of the board.

17.4 While the board may make use of committees to assist its consideration of appointments, succession, audit, risk and remuneration it retains responsibility for, and endorses, final decisions in all of these areas. The Chair should ensure that sufficient time is allowed at the board for committees to report on the nature and content of discussion, on recommendations, and on actions to be taken.

17.5 Where there is disagreement between the relevant committee and the board, adequate time should be made available for discussion of the issue with a view to resolving the disagreement. Where any such disagreement cannot be resolved, the committee concerned should have the right to report the issue to the sponsor team, Principal Accounting Officer and Responsible Minister. They may also seek to ensure the disagreement or concern is reflected as part of the report on its activities in the annual report.

17.6 The Chair of the Board and chairs of supporting committees should ensure they are properly structured with appropriate terms of reference. The terms of each committee should set out its responsibilities and the authority delegated to it by the board. The chair should ensure that committee membership is periodically refreshed and that individual independent non-executive directors are not over-burdened when deciding the chairs and membership of committees.

Appointments to the board

17.7 The chair is appointed by the Secretary of State under Schedule 1of MCAA. (This appointment is subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments).

17.8 Non-executive members (Schedule 1, Section 7(1)b of the MCAA refers to non-executive board members as “ordinary” members) are appointed by the Secretary of State under Schedule 1 of MCAA. This appointment is subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments.

17.9 All such appointments should have regard to the principle that appointments should reflect the diversity of the society in which we live, and appointments should be made taking account of the need to appoint boards which include a balance of skills and backgrounds.

Duties of the board

17.10 The board is specifically responsible for:

establishing and taking forward the strategic aims and objectives of the MMO consistent with its overall strategic direction and within the policy and resources framework determined by the Secretary of State
supporting the delivery of Defra’s objectives, while respecting the MMO’s independent statutory status and duties
providing effective leadership of the MMO within a framework of prudent and effective controls which enables risk to be assessed and managed
agreeing an action plan for each year that sets out MMO’s specific delivery commitments
ensuring the financial and human resources are in place for the MMO to meet its objectives
reviewing management performance
ensuring that the board receives and reviews regular financial and management information concerning the management of the MMO
ensuring that it is kept informed of any changes which are likely to impact on the strategic direction of the MMO or on the attainability of its targets, and determining the steps needed to deal with such changes and where appropriate bringing such matters to the attention of the Responsible Minister and PAO via the executive team, sponsorship team or directly
ensuring that any statutory or administrative requirements for the use of public funds are complied with; that the board operates within the limits of its statutory authority and any delegated authority agreed with the sponsor department, and in accordance with any other conditions relating to the use of public funds; and that, in reaching decisions, the board takes into account guidance issued by the sponsor department
ensuring that as part of the above compliance they are familiar with:
this framework document
any delegation letter issued to body as set out in Section 18
any elements of any settlement letter issued to the sponsor department that is relevant to the operation of the MMO
any separate settlement letter that is issued to the MMO from the sponsor department
that they have appropriate internal mechanisms for the monitoring, governance and external reporting regarding any conditions arising from the above documents and ensure that the Chief Executive Officer and MMO as a whole act in accordance with their obligations under the above documents
demonstrating high standards of corporate governance at all times, including by using the independent audit committee to help the Board to address key financial and other risks
appointing with the SoS’s approval a Chief Executive Officer and, in consultation with the department, set performance objectives and remuneration terms linked to these objectives for the Chief Executive Officer which give due weight to the proper management and use and utilization of public resources
putting in place mechanisms for independent appraisal and annual evaluation of the performance of the chair by the independent non-executives, taking into account the views of relevant stakeholders. The outcome of that evaluation should be made available to the Responsible Minister
determining all such other things which the board considers ancillary or conducive to the attainment or fulfilment by the MMO of its objectives

17.11 The board should ensure that effective arrangements are in place to provide assurance on risk management, governance and internal control.

17.12 The board should make a strategic choice about the style, shape and quality of risk management and should lead the assessment and management of opportunity and risk. The board should ensure that effective arrangements are in place to provide assurance over the design and operation of risk management, governance and internal control in line with the Management of Risk – Principles and Concepts (The Orange Book). The board must set up an Audit and Risk Assurance Committee chaired by an independent and appropriately qualified non-executive member to provide independent advice and ensure that the department’s Audit and Risk Assurance Committee are provided with routine assurances with escalation of any significant limitations or concerns. The board is expected to assure itself of the adequacy and effectiveness of the risk management framework and the operation of internal control.

18. The chair’s role and responsibilities

18.1 The chair is responsible for leading the board in the delivery of its responsibilities in line with strategies and plans agreed with Defra (and relevant OGDs as noted in paragraph 7.5). Such responsibility should be exercised in the light of their duties and responsibilities as set out in the Chair’s contract of employment (referred to in Schedule 1, Section 7 of the MCAA as the ‘terms of appointment’), any appointment letter, the statutory authority governing MMO, this document, and the documents and guidance referred to within this document.

18.2 Communications between the MMO Board and the Responsible Minister should normally be through the chair.

18.3 The chair is bound by the Code of conduct for board members of public bodies, which covers conduct in the role and includes the Nolan Principles of Public Life.

18.4 In addition, the chair is responsible for:

monitoring and engaging with appropriate governance arrangements to ensure that the MMO’s affairs are conducted with probity
ensuring that policies and actions support the Responsible Minister’s and where relevant other ministers’ wider strategic policies and where appropriate, these policies and actions should be clearly communicated and disseminated throughout the MMO

18.5 The chair has the following leadership responsibilities:

formulating the board’s strategy
ensuring that the board, in reaching decisions, takes proper account of guidance provided by the Responsible Minister or the department
promoting the efficient and effective use of staff and other resources
delivering high standards of regularity and propriety
representing the views of the board to the general public

18.6 The chair also has an obligation to ensure that:

the work of the board and its members are reviewed and are working effectively including ongoing assessment of the performance of individual board members with a formal annual evaluation and more in-depth assessments of the performance of individual board members when being considered for re-appointment
that in conducting assessments that the view of relevant stakeholders including employees and the sponsorship team are sought and considered
that the board has a balance of skills appropriate to directing the MMO’s business, and that all directors including the chair and Chief Executive Officer continually update their skills, knowledge and familiarity with the MMO to fulfil their role both on the board and committees. This will include but not be limited to skills and training in relation to financial management and reporting requirements, risk management and the requirements of board membership within the public sector
board members are fully briefed on terms of appointment, duties, rights and responsibilities
they, together with the other board members, receive appropriate training on financial management and reporting requirements and on any differences that may exist between private and public sector practice
the Responsible Minister is advised of the MMO’s needs when board vacancies arise
there is a Board Operating Framework in place setting out the role and responsibilities of the board consistent with the Government Code of Good Practice for Corporate Governance
there is a code of practice for board members in place, consistent with the Cabinet Office Code of conduct for board members of public bodies

19. Individual board members’ responsibilities

19.1 Individual board members should:

comply at all times with the Code of Conduct for Board Members of Public Bodies, which covers conduct in the role and includes the Nolan Principles of Public Life as well as rules relating to the use of public funds and to conflicts of interest
demonstrate adherence to the 12 Principles of Governance for all Public Body Non-Executive Directors as appropriate
not misuse information gained in the course of their public service for personal gain or for political profit, nor seek to use the opportunity of public service to promote their private interests or those of connected persons or organisations
comply with the board’s rules on the acceptance of gifts and hospitality, and of business appointments
act in good faith and in the best interests of the MMO
ensure they are familiar with any applicable guidance on the role of public sector non-executive directors and boards that may be issued from time to time by the Cabinet Office, HM Treasury or wider government

Question 5

Management and financial responsibilities and controls

Accepted Answer

20. Delegated authorities

20.1 The MMO’s delegated authorities are set out in the delegation letter. This delegation letter may be updated and superseded by later versions which may be issued by the sponsor department in agreement with HM Treasury.

20.2 In line with ‘Managing Public Money’ Annex 2.2 these delegations will be reviewed on an annual basis.

20.3 The MMO shall obtain the department’s, and where appropriate HM Treasury’s prior written approval before:

entering into any undertaking to incur any expenditure that falls outside the delegations or which is not provided for in the MMOs annual budget as approved by the department
incurring expenditure for any purpose that is or might be considered novel or contentious, or which has or could have significant future cost implications
making any significant change in the scale of operation or funding of any initiative or particular scheme previously approved by the department
making any change of policy or practice which has wider financial implications that might prove repercussive or which might significantly affect the future level of resources required
carrying out policies that go against the principles, rules, guidance and advice in ‘Managing Public Money’

21. Spending authority

21.1 Once the budget has been approved by the sponsor department and subject to any restrictions imposed by statute, the Responsible Minister’s instructions, HM Treasury settlement or delegation letters, the MMO shall have authority to incur expenditure approved in the budget without further reference to the sponsor department, on the following conditions:

the MMO shall comply with the delegations set out in the delegation letter. These delegations shall not be altered without the prior agreement of the sponsor department and as agreed by HM Treasury and Cabinet Office as appropriate
the MMO shall comply with ‘Managing Public Money’ regarding novel, contentious or repercussive proposals
inclusion of any planned and approved expenditure in the budget shall not remove the need to seek formal departmental approval where any proposed expenditure is outside the delegated limits or is for new schemes not previously agreed
the MMO shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require

22. Banking and managing cash

22.1 The MMO must maximise the use of publicly procured banking services (accounts with central government commercial banks managed centrally by Government Banking).

22.2 The MMO should only hold money outside Government Banking Service accounts where a good business case can be made for doing so and HM Treasury consent is required for each account to be established. Only commercial banks which are members of relevant UK clearing bodies may be considered for this purpose.

22.3 Commercial accounts where approved should be operated in line with the principles as set out in ‘Managing Public Money’.

22.4 The Accounting Officer is responsible for ensuring the MMO has a Banking Policy as set out in ‘Managing Public Money’ and ensuring that policy is complied with.

23. Procurement

23.1 The MMO shall ensure that its procurement policies are aligned with and comply with any relevant UK or other international procurement rules and in particular the Public Contracts Regulations 2015 and Public Procurement (Amendment) (EU Exit) Regulations 2020.

23.2 The MMO shall establish its procurement policies and document these in a Procurement Policy that will be published on the MMO intranet.

23.3 In procurement cases where the MMO is likely to exceed its delegated authority limit, procurement strategy approval for the specific planned purchase must be sought from the department’s sponsor team.

23.4 Goods, services, and works should be acquired by competition. Proposals to let single-tender or restricted contracts shall be limited and exceptional, and approval must be sought from the department’s sponsor team.

23.5 Procurement by the MMO of works, equipment, goods, and services shall be based on, a full option appraisal and value for money (VfM), such as the optimum combination and whole life costs and quality (fitness for purpose).

23.6 The MMO shall:

engage fully with department and government wide procurement initiatives that seek to achieve VfM from collaborative projects
comply with all relevant Procurement Policy Notes issued by Cabinet Office
co-operate fully with initiatives to improve the availability of procurement data to facilitate the achievement of VfM

23.7 The MMO shall comply with the Commercial and Grants Standards. These standards apply to the planning, delivery, and management of government commercial activity, including management of grants in all departments and arm’s length bodies, regardless of commercial approach used and form part of a suite of functional standards that set expectations for management within government.

24. Risk management

24.1 The MMO shall ensure that the risks that it faces are dealt with in an appropriate manner, in accordance with relevant aspects of best practice in corporate governance, and develop a risk management strategy, in accordance with the Treasury guidance Management of Risk: Principles and Concepts.

24.2 The MMO’s Chief Executive Officer is responsible for managing the MMO’s risks and issues with oversight from the MMO’s board and within its governance structure. On a quarterly basis, the MMO should share its strategic risk register with the Defra sponsor team. The MMO should inform the sponsor team at an early stage of any risk or issue that may require engagement, or have impact, beyond their own organisation. These risks may be escalated to the relevant director general or to the Defra Executive Committee. When a risk is escalated, ownership of that risk will usually be retained by the MMO. Changing or emerging risks and issues should form part of the regular discussions between sponsor teams and ALBs, as part of a shared ‘no surprises’ culture.

24.3 The MMO’s board has a responsibility to ensure that proper internal audit arrangements are established and maintained, and for that purpose should establish an Audit and Risk Committee (ARAC). The committee should be chaired by a non-executive member of the MMO and provide regular reports to the Chief Executive Officer and the board on its programme, recommendations, and their implementation.

25. Counter fraud and theft

25.1 The MMO should adopt and implement policies and practices to safeguard itself against fraud, bribery, corruption and theft.

25.2 The MMO should ensure it complies with requirements set out in the Counter Fraud Functional Standard GovS013. The MMO Board should champion a fraud aware culture which encourages staff to raise concerns and provide appropriate routes to do so. It should operate in line with the procedures and considerations set out in ‘Managing Public Money’ Annex 4.9 and with the NAO good practice guidance on Fraud and Error. It should also take all reasonable steps to appraise the financial standing of any firm or other body with which it intends to enter a contract or to provide grant or grant-in-aid.

25.3 The MMO should record and report all instances of fraud, bribery and theft annually to Defra and notify the sponsor department of any unusual or major incidents as soon as possible, in line with Defra guidance. The MMO should also report detected loss from fraud, bribery, corruption and error, alongside associated recoveries and prevented losses, to the Counter Fraud Hub in Defra (fraudanderror@defra.gov.uk) in line with the agreed government definitions as set out in Counter Fraud Functional Standard.

26. MMO staff

Broad responsibilities for staff

26.1 Within the arrangements approved by the Responsible Minister (and the Treasury), the Accounting Officer of the MMO will have responsibility for the recruitment, retention and motivation of its staff. The broad responsibilities toward its staff are to ensure that:

the rules for recruitment and management of staff create an inclusive culture in which diversity is fully valued; appointment and advancement is based on merit: there is no discrimination on grounds of gender, marital status, sexual orientation, race, colour, ethnic or national origin, religion, disability, community background or age
the level and structure of its staffing, including grading and staff numbers, are appropriate to its functions and the requirements of economy, efficiency and effectiveness
the performance of its staff at all levels is satisfactorily appraised and the MMO performance measurement systems are reviewed from time to time
its staff are encouraged to acquire the appropriate professional, management and other expertise necessary to achieve the MMO’s objectives
proper consultation with staff takes place on key issues affecting them
adequate grievance and disciplinary procedures are in place
whistle-blowing procedures consistent with the Public Interest Disclosure Act are in place
a code of conduct for staff is in place based on the Cabinet Office’s Model Code for Staff of Executive Non-departmental Public Bodies

Staff costs

26.2 Subject to its delegated authorities, the MMO shall ensure that the creation of any additional posts does not incur forward commitments that will exceed its ability to pay for them.

Pay and conditions of service

26.3 The MMO’s staff are subject to levels of remuneration and terms and conditions of service (including pensions) within the general pay structure approved by the sponsor department and the Treasury. The MMO has no delegated power to amend these terms and conditions except where approval has been given by Defra to vary such terms. The department should have regard to the Cabinet Office’s Public Bodies: information for departments that provides guidance on staff issues in public bodies.

26.4 If civil service terms and conditions of service apply to the rates of pay and non-pay allowances paid to the staff and to any other party entitled to payment in respect of travel expenses or other allowances, payment shall be made in accordance with the Civil Service management code and the annual Civil Service Pay Remit guidance, except where prior approval has been given by the department to vary such rates.

26.5 Staff terms and conditions should be set out in HR policy, which should be provided to the department together with subsequent amendments.

26.6 The MMO shall abide by public sector pay controls, including the relevant approvals process dependent on the organisations classification as detailed in the senior pay guidance and the public sector pay and terms guidance.

26.7 The MMO shall operate a performance-related pay scheme that shall form part of the annual aggregate pay budget approved by Defra or the general pay structure approved by Defra and the Treasury where relevant with due regard to the senior pay guidance.

26.8 The travel expenses of board members shall be tied to the rates allowed to senior staff of the MMO or rates as outlined in the MMO expenses policy. Reasonable actual costs shall be reimbursed.

Pensions, redundancy and compensation

26.9 Compensation scheme rules and pension scheme rules should reflect legislative and HM Treasury guidance requirements regarding exit payments.

26.10 ALB staff shall normally be eligible for a pension provided by PCSPS. Staff may opt out of the occupational pension scheme provided by the MMO, but that employers’ contribution to any personal pension arrangement, including stakeholder pension shall normally be limited to the national insurance rebate level.

26.11 Any proposal by the MMO to move from the existing pension arrangements, or to pay any redundancy or compensation for loss of office, requires the prior approval of the department or SoS. Proposals on severance must comply with the rules in Chapter 4 of ‘Managing Public Money’.

Question 6

Business plans, financial reporting and management information

Accepted Answer

27. Corporate and business plans

27.1 Within a timeframe agreed by Defra, the MMO shall submit annually to the sponsor department a draft of the corporate plan covering the period for which financial settlement has been agreed. The draft should be submitted by a date agreed with the sponsor department. The MMO shall agree with the department the issues to be addressed in the plan and the timetable for its preparation. The plan shall reflect the MMO’s statutory and/or other duties and, within those duties, the priorities set from time to time by the Responsible Minister (including decisions taken on policy and resources in the light of wider public expenditure decisions). The plan shall demonstrate how the MMO contributes to the achievement of the department’s Outcome Delivery Plan and priorities and aligned performance metrics and milestones.

27.2 The Outcome Delivery Plan, which also serves as the Defra Group business plan, sets out the priorities, success measures and resource allocations to deliver the strategic objectives. It includes more detailed sections for priority outcomes where delivery bodies and director areas must include their priorities, indicators, risks and outcomes. Director generals, directors and chief executive officers report on delivery of their plans through the new performance reporting framework agreed between the sponsor and the MMO, and report on maintaining forecasted financial positions within budget limits. The plans should be developed as appropriate through joint working between sponsorship teams, policy and delivery teams to ensure coherence. They should reflect allocations and priorities which have been agreed by ExCo, the board and approval by ministers.

27.3 The first year of the corporate plan, amplified as necessary, shall form the business plan. The business plan shall be updated to include key targets and milestones for the year immediately ahead and shall be linked to budgeting information so that resources allocated to achieve specific objectives can readily be identified by the department. Subject to any commercial considerations, (a digest of) the corporate and business plans should be published by the MMO on its website and separately be made available to staff.

27.4 The following matters should be included in the plans:

key outcomes and sub-outcomes associated key performance indicators (with targets where appropriate) for the forward years, and the strategy for achieving those objectives
a review of performance in the preceding financial year, together with comparable outturns for the previous (2 to 5) years, and an estimate of performance in the current year
alternative scenarios and an assessment of the risk factors that may significantly affect the execution of the plan but that cannot be accurately forecast
other matters as agreed between the department and the MMO

28. Budgeting procedures

28.1 Each year, in the light of decisions by the department on the updated draft corporate plan, the department will send to the MMO prior to the start of the financial year:

a formal statement of the annual budgetary provision allocated by the department in the light of competing priorities across the department and of any forecast income approved by the department
a statement of any planned change in policies affecting the MMO

28.2 The approved annual business plan will take account both of approved funding provision (where this applies) and any forecast receipts, and will include a budget of estimated payments and receipts together with a profile of expected expenditure and of draw-down of any departmental funding and/or other income over the year. These elements form part of the approved business plan for the year in question.

28.3 During the financial year the MMO will provide financial reporting data to the department in accordance with agreed processes. This will include monthly out-turn data, contributions to periodic reviews on budget risks and opportunities, and other commissions as appropriate.

29. Grant-in-aid and any ring-fenced grants

29.1 Any grant-in-aid provided by the department for the year in question will be voted in the department’s Supply Estimate and be subject to parliamentary control.

29.2 The grant-in-aid will normally be paid in monthly instalments on the basis of written applications showing evidence of need. The MMO will comply with the general principle, that there is no payment in advance of need. Cash balances accumulated during the course of the year from grant-in-aid or other exchequer funds shall be kept to a minimum level consistent with the efficient operation of the MMO. Grant-in-aid not drawn down by the end of the financial year shall lapse. Subject to approval by Parliament of the relevant estimates provision, where grant-in-aid is delayed to avoid excess cash balances at the year-end, the department will make available in the next financial year any such grant-in-aid that is required to meet any liabilities at the year end, such as creditors.

29.3 In the event that the department provides the MMO separate grants for specific (ring-fenced) purposes, it would issue the grant as and when the MMO needed it on the basis of a written request. The MMO would provide evidence that the grant was used for the purposes authorised by the department. The MMO shall not have uncommitted grant funds in hand, nor carry grant funds over to another financial year.

Other sources of income

29.4 The MMO has the power to charge for services it provides under section 27 of MCAA. The power to charge for services has since been extended by Section 34 of the Fisheries Act 2020. It may also be given power to levy charges under other primary legislation, or in limited cases can rely on secondary legislation. These charges should be on a full cost recovery basis in line with Chapter 6 of HMT ‘Managing Public Money’ and need to be factored into any fees strategy.

30. Annual report and accounts

30.1 The MMO Board must publish an annual report of its activities together with its audited accounts after the end of each financial year. The MMO shall provide the department its finalised (audited) accounts by May each year in order for the accounts to be consolidated within Defra’s. A draft of the report should be submitted to the department two weeks before the proposed publication date. The accounts should be prepared in accordance with the relevant statutes and specific accounts direction issued by the department as well as the Treasury’s Financial Reporting Manual (FReM).

30.2 The annual report must:

cover any corporate, subsidiary or joint ventures under its control
comply with the FreM and in particular have regard to the illustrative statements for a non-departmental public body (NDPB)
outline main activities and performance during the previous financial year and set out in summary form forward plans

30.3 Information on performance against key financial targets is included within the annual report and subject to the auditor’s consistency opinion. The report and accounts shall be laid in Parliament and made available on the MMO website, in accordance with the guidance in the FReM.

31. Reporting performance to the department

31.1 The MMO shall operate management, information and accounting systems that enable it to review in a timely and effective manner its financial and non-financial performance against the budgets and targets set out in the corporate and business plans.

31.2 The MMO shall inform the sponsor department of any changes that make achievement of objectives more or less difficult. It shall report financial and non-financial performance, including performance in helping to deliver Ministers’ policies, and the achievement of key objectives regularly, specifically, DPO 1 – Environment and DPO 4 – Agriculture, food, fisheries, animal welfare and biosecurity.

31.3 While responsibility for management of performance lies with the relevant delivery organisation and the sponsor team, the MMO performance shall be formally reviewed by the department periodically, at a frequency dependent on the extent of the MMO scope of responsibilities and its contributions to the Defra Outcome Delivery Plan. The MMO will be expected to share their corporate performance reports with the department on a quarterly basis.

31.4 The Responsible Minister will meet the chair and Chief Executive Officer at least once a year and the schedule of meetings will be agreed on an annual basis between the MMO and the sponsor team.

31.5 The PAO will meet the Chief Executive Officer at least once a year. In between these meetings the sponsoring department will provide reporting structures and meetings for MMO to regularly report to the Responsible Minister and the sponsor department. As part of this, for any additional function which Defra has asked MMO to operate, such as but not limited to grant management, an additional agreement will be put into place (such as a letter of authority, an Operational Framework, or a MoU) as appropriate which will include regular reporting expectations.

32.1 The department can access MMO records it may reasonably require for purposes including sponsorship audits and operational investigations.

32.2 The MMO shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require and the MMO is reasonably able to provide.

32.3 The department and HM Treasury may request the sharing of data held by the MMO in such a manner as set out in central guidance except insofar as it is prohibited by law. This may include requiring the appointment of a senior official to be responsible for the data sharing relationship.

32.4 As a minimum, the MMO shall provide the department with information monthly that will enable the department satisfactorily to monitor:

the MMO’s cash management
its draw-down of grant-in-aid
forecast outturn by resource headings
other data required for the Online System for Central Accounting and Reporting (OSCAR)
data as required in respect of its compliance with any Cabinet Office Controls pipelines or required in order to meet any condition as set out in any settlement letter

Question 7

Audit

Accepted Answer

33. Internal audits

33.1 The MMO shall:

establish and maintain arrangements for internal audit, ensuring that the Government Internal Audit Agency (GIAA) have complete access to all relevant records
ensure that any arrangements for internal audit are in accordance with the Public Sector Internal Audit Standards (PSIAS) as adopted by HM Treasury
set up and maintain an Audit and Risk Assurance Committee of its board in accordance with the Code of Good Practice for Corporate Governance and the Audit and Risk Assurance Committee Handbook
forward the audit strategy, periodic audit plans and annual audit report, including the MMO Head of Internal Audit opinion on risk management, control and governance as soon as possible to the sponsor department
keep records of and prepare and forward to the department an annual report on fraud and theft suffered by the MMO and notify the sponsor department of any unusual or major incidents as soon as possible
will share with the sponsor department information identified during the audit process and the Annual Audit Opinion Report (together with any other outputs) at the end of the audit, in particular on issues impacting on the department’s responsibilities in relation to financial systems within the MMO.

Audit of delegated duties from the European Union

33.2 The MMO, as the UK Managing Authority and England delivery body for the European Maritime and Fisheries Fund, will be subject to audit by the EU. Further, where the MMO receives funding from the EU, it may be subject to an audit by the European Court of Auditors. It may also be subject to audit from other auditors acting under the terms governing the provision of the financial assistance or the protocol arrangements agreed between government departments and the EU.

34. External audit

34.1 The Comptroller & Auditor General (C&AG) must sign off and audit (Schedule 1, para 28 of the MCAA refers to this as to “examine, certify and report on”) the MMO’s statutory Annual Report and Accounts. The C&AG passes the audited accounts and their report to the Secretary of State who will lay the accounts together with the C&AG’s report before parliament.

34.2 The C&AG:

will consult the department and the MMO on whom – the NAO or a commercial auditor – shall undertake the audit(s) on his behalf, though the final decision rests with the C&AG
has a statutory right of access to relevant documents, including by virtue of section 25(8) of the Government Resources and Accounts Act 2000, held by another party in receipt of payments or grants from the MMO
will share with the sponsor department information identified during the audit process and the audit report (together with any other outputs) at the end of the audit, in particular on issues impacting on the department’s responsibilities in relation to financial systems within the MMO
will consider requests from departments and other relevant bodies to provide Regulatory Compliance Reports and other similar reports at the commencement of the audit. Consistent with the C&AG’s independent status, the provision of such reports is entirely at the C&AG’s discretion

34.3 The C&AG may carry out examinations into the economy, efficiency and effectiveness with which the MMO has used its resources in discharging its functions. For the purpose of these examinations the C&AG has statutory access to documents as provided for under section 8 of the National Audit Act 1983. In addition, the MMO shall provide, in conditions to grants and contracts, for the C&AG to exercise such access to documents held by grant recipients and contractors and sub-contractors as may be required for these examinations; and shall use its best endeavours to secure access for the C&AG to any other documents required by the C&AG which are held by other bodies.

Question 8

Reviews and winding up arrangements

Accepted Answer

35. Review of ALB’s status

35.1 The MMO will be reviewed every three years. The date of the next review will be in 2024.

36. Arrangements in the event that the ALB is wound up

36.1 The sponsor department shall put in place arrangements to ensure the orderly winding up of the MMO. In particular it should ensure that the assets and liabilities of the MMO are passed to any successor organisation and accounted for properly. (In the event that there is no successor organisation, the assets and liabilities should revert to the sponsor department). To this end, the department shall:

have regard to Cabinet Office guidance on winding up of ALBs
ensure that procedures are in place in the MMO to gain independent assurance on key transactions, financial commitments, cash flows and other information needed to handle the wind-up effectively and to maintain the momentum of work inherited by any residuary body; specify the basis for the valuation and accounting treatment of the MMO’s assets and liabilities
ensure that arrangements are in place to prepare closing accounts and pass to the C&AG for external audit, and that, for non-Crown bodies funds are in place to pay for such audits. It shall be for the C&AG to lay the final accounts in Parliament, together with his report on the accounts
arrange for the most appropriate person to sign the closing accounts. In the event that another ALB takes on the role, responsibilities, assets and liabilities, the succeeding ALB AO should sign the closing accounts. In the event that the department inherits the role, responsibilities, assets and liabilities, the sponsor department’s AO should sign

36.2 The MMO shall provide the department with full details of all agreements where the MMO or its successors have a right to share in the financial gains of developers. It should also pass to the department details of any other forms of claw-back due to the MMO.

Question 9

Signatures

Accepted Answer

Signed: Mike Rowe

Date: 12/05/2022

(On behalf of Defra)

Signed: Hilary Florek

Date: 29/04/2022

(On behalf of the MMO)

Question 10

Annex 1: MMO’s functions

Accepted Answer

1. Functions and Duties allocated to MMO under the Fisheries Act 2020 and ss. 4 to 13 of the Marine and Coastal Access Act 2009 (“MCAA”)

i. Fisheries

Various functions under the Fisheries Act 2020 including the licensing of fishing boats, trans-shipment licences for fishing boats (s.4A Sea Fish (Conservation) Act 1967) and authorisation of exempt fishing operations for scientific and other purposes (s.9 Sea Fish (Conservation) Act 1967).

The MMO acts as the Single Issuing Authority, on behalf of the devolved administrations, to issue licences for UK boats to fish in the waters of other coastal states under international agreements and to issue licences to non-UK vessels to fish in British Fishery Limits. Functions are delegated by devolved governments under agreements made in line with s.43 Fisheries Act 2020.

ii. Conservation

power to issue licences for any part of England or English inshore region to take or kill seals under the Conservation of Seals Act 1970 (s.9 MCAA)
power to issue licences to authorise certain activities in the English inshore region in relation to section 16 of the Wildlife and Countryside Act 1981
duty to have regard to “conservation of marine flora and fauna” under s.1 of the Sea Fisheries (Wildlife Conservation) Act 1992 when discharging sea fisheries functions

iii. Generating and renewable energy installations

certain consent functions under s.36 of the Electricity Act 1989 for offshore generating stations (s.12 MCAA)
declaration of safety zones under s.95 of the Energy Act 2004 (s.13 MCAA)

2. Agreements under s.14 MCAA authorising MMO to perform marine functions of the SoS

The MMO is authorised to perform a range of the marine functions of the SoS (including Defra, BEIS and DfT) under various s.14 MCAA agreements. For example:

Under the Defra/MMO s.14 agreement, MMO is authorised to carry out functions of the SoS in relation to:

various fisheries management legal obligations under retained European Union law, for example the validation of catch certificates for the export of fisheries products
various licensing functions of the SoS contained in other legislation
various conservation functions of the SoS contained in other legislation

These functions remain the legal function of the SoS. MMO carries them out on behalf of the SoS but the function may be recalled by the SoS and may continue to be able to be performed by the SoS whilst MMO is authorised.

MMO’s role in relation to Development Consent Orders (DCO)
The MMO’s primary roles in relation to DCOs are provided for in the Planning Act 2008 as amended by Part 4 of MCAA (see s23). MMO’s roles are as a statutory consultee at the pre-application stage, as an interested party during the examination stages, and as the licensing and consenting authority for any marine licence deemed to be granted under Part 4 of MCAA through a DCO given that marine licensing functions under Part 4 of MCAA are delegated to the MMO. The MMOs role as a statutory consultee and interested party is in relation to those applications for developments which would affect, or would be likely to affect, the areas in which the MMO operates.

4. MMO’s general powers and duties

The MMO has various general powers and duties contained within ss.24 to 31 MCAA, examples include:

power to undertake research on matters relevant to its functions or its general objective (s.24 MCAA)
power to bring criminal proceedings for enforcement of criminal offences (s.29 MCAA)
various incidental powers, for example, to enter into agreements, borrowing money, acquire/dispose property (s.31 MCAA)

The MMO has further powers to charge for services, including:

power to charge for relevant marine functions (s.34 Fisheries Act 2020)
power to charge for providing certain services and for issuing marine licenses (s.27 and s.67 MCAA)
other miscellaneous statutory charging powers

5. Delegation of functions relating to marine plans

The Marine Planning functions (which include a number of powers/duties) under Part 3 MCAA are delegated by SoS to MMO by “direction” under s.55 MCAA. The North East, North West, South East and South West Marine Plans have been formally adopted by the Secretary of State.

6. Delegation of functions relating to marine licensing (including enforcement)

The Marine Licensing functions including enforcement (which include a number of powers/duties) under Part 4 (and Schedules 7 – 9) MCAA are delegated by SoS as the appropriate licensing and enforcement authority to MMO by “Order” under s.98 MCAA (Marine Licensing (Delegation of Functions) Order 2011).

7. Duties in relation to byelaws for marine conservation

Various duties are placed on MMO as a public authority in respect of Marine Conservation Zones (MCZS) (ss. 125 – 128 MCAA).

The MMO also has powers to make byelaws for the protection of MCZs (ss. 129 – 133 MCAA) and for the purpose of marine conservation in both the English Inshore (0-12nm) and the English offshore region (12-200nm) relating to the exploitation of Sea Fisheries Resources by Schedule 10 of the Fisheries Act 2020.

8. Enforcement

MMO is responsible for the appointment of Marine Enforcement Officers (“MEOs”) under part 8 of MCAA (s.235). MEOs are responsible for the enforcement of the following areas:

Marine Licensing regime (s.236)
nature conservation legislation (s.237)
fisheries legislation (s.238)
ancillary marine criminal offences from other legislation arising out of the above (various statutory instruments). In particular, legacy powers of British Sea Fisheries Officers in England and the UK offshore region

MEOs powers are set out in Part 8 of MCAA and include powers of entry, search, inspection and seizure. MEOs powers are exercised in accordance with the wider law of criminal evidence and procedure, for example the Police and Criminal Evidence Act 1984.

9. Powers in relation to harbours

Schedule 21 of MCAA amends the Harbours Act 1964 to include provision to make orders delegating functions of the SoS. Specified harbour functions of the SoS (DfT) have been delegated to the MMO (Harbours Act 1964 (Delegation of Functions) Order 2010), for example: the MMO has power to make Harbour Revision Orders or Harbour Empowerment Orders.

10. Inshore fisheries and conservation authorities

The MMO has a role in relation to IFCAs as set out in Part 6 of MCAA. The MMO:

is to be consulted before any order establishing an IFCA is made, amended or revoked
holds a seat on each IFCA
provides operational support to the IFCAs

11. Other legislation

The MMO has various other powers/duties contained within other legislation, including the following examples, but not limited to:

i. Environmental Impact Assessment (EIA)

In relation the MMO’s Marine Licensing function, the MMO is required to consider whether or not a project (requiring a marine licence and/or electricity consent) is subject to an EIA. Where an EIA is required, the MMO must comply with the requirements of the relevant legislation (Marine Works (Environmental Impact Assessment) Regulations 2007 repealed by Electricity Works (Environmental Impact Assessment) (England and Wales) Regulations 2020).

ii. Freedom of Information Act 2000 (FOIA) and Environmental Information Regulations (EIRs)

The MMO is a public authority for the purposes of the FOIA and EIRs and is obliged to comply with the requirements of each when considering disclosure of information held in response to a request for information.
iii. Local Legislation
The MMO may also have powers/obligations under various local Acts of Parliament. For example: granting of Board of Trade consent.

iv. European Fisheries and Maritime Fund (EMFF)

The MMO has been designated as the UK Managing Intermediary Authority and delivery body in England for the European Fisheries Fund and the European Maritime Fisheries Fund.

v. Fisheries and Seafood Scheme (FaSS)

The MMO has been commissioned to operate the Fisheries and Seafood Scheme on behalf of Defra. This is the domestic scheme for England following the UK’s exit from the European Union, re-launch managed via a letter of delegation, and agreed Key Performance Indicators (KPIs) and roles & responsibilities.

vi. UK Seafood Fund – Infrastructure Pillar

The MMO has been commissioned to operate the Infrastructure Pillar of the UK Seafood Fund in accordance with a letter of delegation.

vii. Agency arrangements under the Fisheries Act 2020

Under s.43 Fisheries Act 2020, the MMO may enter into agency arrangements with the devolved administrations of the United Kingdom either to perform functions on their behalf or to have them perform MMO functions on its behalf. These arrangements may relate to fisheries functions more generally, or specific functions related to fisheries product movement functions (for example, the validation of catch certificates for the export of fisheries products).

MMO has already entered into agency arrangements in relation to the licensing of non-UK vessels in British fishery limits and of UK vessels in third country waters and the high seas (undertaken by the single issuing authority). MMO has additionally agreed to undertake functions in respect of the validation of catch certificates for exports of fisheries products to the European Union (undertaken by the Fish Export Service).

viii. European Union (Withdrawal) Act 2018

Under the above legislation, the body of EU law that has been retained as UK law after the end of the Transition Period includes certain operability changes that transfer functions formerly carried out by EU institutions such as the European Commission to the UK. Some of these functions are transferred directly to the MMO in respect of England and English fishing vessels, and some are transferred to the Secretary of State and will be delegated to the MMO under s.14 MCAA referred to in paragraph 2 above.

Question 11

Annex 2

Accepted Answer

The MMO shall comply with the following general guidance documents and instructions:

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