Contact: Ian Avery, ext 6264

1. Summary

1.1 The Cabinet agreed on 29 October 2001 the implementation of a Natural Resource Management (NRM) Initiative, subject to funding being met within existing resources and/or external sources. It was also agreed that the NRM Initiative will have both outward (community) and inward (corporate) focuses and that draft business plans be prepared for both areas. The purpose of this report is to set out the background and objectives of the initiative, and to enable the Committee to influence the proposed internal corporate focus of the work.

1.2 The Environment Policy Review Committee considered this report on 6 March 2002 and supported the initiative.

2. Introduction

2.1 There is increasing recognition from a global to a local level that future economic growth, development and increasing prosperity will stretch the earth's ability to meet demands for natural resources and absorb pollution. The following facts make the point graphically:

(i) 10 tonnes of natural resources are used per person per year, only 1% of which is in use after six months;

(ii) the global impact of human activity is expected to increase ten- fold by 2050; and

(iii) with 3% economic growth the economy doubles in size every 25 years as does the amount of waste produced.

2.2 The need for action is registered in the EC Sixth Environmental Action Programme where the more sustainable use of natural resources and management of wastes is recognised as one of four priority areas. This message was reinforced in the UK context in a report `Resource Productivity - Making More with Less' published in November 2001 by the Performance and Innovation Unit in the Cabinet Office. The report highlights improving efficiency in the use of natural resources as a key issue facing the UK in overall sustainability terms.

2.3 The internal impetus within the County Council for this type of approach came from concerns about the consumption of materials (eg dug as minerals and/or disposed of as waste) where the key to more efficient resource use was recognised as improving manufacturing efficiency, influencing consumption patterns and developing new reprocessing industries in addition to work in the conventional waste management area. However, similar cross-sector issues arise with other natural resources, including water, energy, soil and biodiversity.

2.4 The emerging solution involves society decoupling environmental impacts and degradation from economic growth, this in itself bringing opportunities for innovation and wealth creation.

3. Relevance to the County Council

3.1 The more efficient use of natural resources is a key aspect of achieving the County Council's Corporate Strategy objectives, particularly `Stewardship of the Environment', as well as the vision for `Lifestyles and the Environment' set out in the Hampshire `Greenprint' agreed by the former Community Development and Conservation Sub-Committee on 16 February 2001.

3.2 Apart from the wider societal implications, the potential direct benefits of the NRM agenda to Hampshire and the County Council can be exampled as follows:

(i) if growth in waste continues the waste management budget could treble in real terms to about £100 million over the next 20 years;

(ii) more use of resources means more unpopular waste disposal sites and mineral workings in Hampshire;

(iii) resource use is a major contributor to climate change that affects all of us who live or work in Hampshire; and

(iv) innovation in more efficient resource use could create jobs and wealth.

3.3 The role of action at a local level - Local Agenda 21 - has long been recognised as being crucial in raising awareness of sustainability issues and implementing local solutions. The County Council has a range of achievements in this area, including Beacon Council status for waste management, the Corporate Sustainable Development Strategy and action plans, and the series of Down to Earth conferences. Exploratory discussions with a core of external and internal stakeholders in 2000/01 demonstrated support for building on these foundations to bring about change.

3.4 However, it is recognised that achieving a step-change in NRM performance cannot be achieved by the County Council, or indeed any other organisation, acting alone. A new approach is therefore needed based on community aspirations for the management of natural resources and coordinated action across all sectors to achieve them. This links with the County Council's community leadership role, community strategies and the emerging local strategic partnerships, as well as a range of service delivery areas. NRM also accords with Best Value principles.

4. The Proposals

4.1 On 29 October 2001 the Cabinet agreed to the implementation of an NRM initiative, subject to funding being met within existing resources and/or external sources. It was also agreed that NRM will have both outward and inward focuses and that draft business plans be prepared for both areas. This work is well advanced with a view to the plans being put to the Leader in May for endorsement. A key issue is the recognition that whilst NRM is not a `quick fix', it is important to twin track progress towards long term goals with some early achievements that make a real difference. The key proposals are set out below.

External Community Focus

4.2 The community NRM programme is not `owned' by the County Council although it is playing a key leadership role and is acting as secretariat and, together with others, providing pump-priming finance. Development work is being led by an advisory group of community representatives with the overall aim of achieving the more efficient use of natural resources in Hampshire, both in terms of advancing a long term vision and implementing actions that lead to tangible improvements in the short term. Key issues emerging are improving the NRM performance of small and medium sized businesses and awareness/lifestyles in the community generally. The advisory group has provisionally agreed seven community business objectives for 2002/03, to:

(i) crystallise what the NRM initiative could mean for the community in Hampshire and influence its inclusion in community strategies;

(ii) develop a plan for engaging the wider community at all levels to raise awareness of NRM issues and influence lifestyles;

(iii) understand the origins, amounts and impacts of the natural resources presently used; the sectors and people that currently have an interest in this area; the work that is already under way; and the barriers that inhibit progress;

(iv) identify opportunity areas where the NRM initiative can support other complementary programmes and actions;

arising from the above:

(v) facilitate and fund innovative ideas and projects that will lead to quick wins in contributing to the overall NRM goal;

(vi) establish a `not for profit' company and environmental body to attract and distribute external funding; and

(vii) develop measurements and indicators that will enable progress to be managed and monitored.

4.3 The plan has been endorsed by a wider group of community representatives (to be called the Hampshire NRM Forum). The task now is to implement the plan and the advisory group's intention is to secure sources of external funding, eg Landfill Tax Environmental monies, to move the programme forward.

Internal Corporate Focus

4.4 Internally there is a trend of continuous improvement in the way the County Council approaches and deals with natural resources with a range of achievements in materials use, and waste, water and biodiversity. However, a step-change improvement in performance cannot be achieved unless the County Council exerts its leadership and influence in the community and there is greater recognition of the interrelationships in NRM terms between different functions and departments. By way of example, economic development activities can potentially play a key role in stimulating recycling by supporting new reprocessing industries, as can the County Council's procurement functions in purchasing sustainable goods and services to complete the loop. Adopting this more holistic approach is not an easy or a quick fix but it should allow a culture of mutual support to develop so that there is greater understanding of the linkages with all services and the benefits that can be gained. NRM can therefore be seen as a corporate issue which cuts across traditional departmental responsibilities and functional areas.

4.5 NRM has been included as one of the service areas in the County Council's Public Service Agreement (PSA) submission, the proposed focus being on material resources with a target of reducing the amount of waste in Hampshire going to landfill by 40,000 tonnes over three years, this being in addition to what would otherwise have been achieved. Meeting this target is the key short term objective for NRM.

4.6 The internal work on NRM is being steered by a corporate officer group. Its overall aim is to support the County Council's external community leadership and influencing role and optimising the County Council's own performance (through its policies, plans and actions) in NRM, including achieving the PSA target. The draft internal business objectives to advance the overall aim in 2002 /03 are as follows, to:

(i) facilitate and support the external community focus of NRM;

(ii) implement a plan of action to achieve the PSA target for NRM;

(iii) set Hampshire County Council on the way to becoming an example of best practice in NRM in its own business activities by 2005;

(iv) develop an action orientated materials/waste strategy and land use plan; and

(v) develop and commence implementation of a plan to raise awareness of NRM in Members and staff.

5. Outcomes

5.1 The community and internal NRM programmes should achieve the following generic outcomes over time. The aim will be to develop specific performance measures in each area:

(i) a Hampshire NRM Forum linked to local strategic partnerships established and operating effectively. A vision for NRM included in community strategies;

(ii) NRM PSA target of diverting an additional 40,000 tonnes of material from landfill achieved by end of 2004;

(iii) strategic cross-functional NRM projects identified and successfully implemented;

(iv) a range of natural resources included within the framework over time, and strategies and action plans developed to ensure their more efficient use;

(v) a new resource focused materials and waste strategy/local plan adopted;

(vi) performance targets in the Corporate Sustainable Development Strategy for more efficient use of natural resources in the County Council's own business activities achieved;

(vii) NRM included as part of wider sustainable development awareness in Member and staff training programmes;

(viii) an NRM support and advice network for commerce and industry provided;

(ix) public awareness and support for the areas covered by NRM and the associated programmes increased year on year;

(x) a regional NRM network established with NRM concepts reflected in regional strategies and development of a regional framework for implementation;

(xi) new markets and jobs created through a Hampshire materials market development initiative linked to a regional Waste and Resources Action Programme; and

(xii) national and regional leadership by the County Council in NRM demonstrated.

6. Resources

6.1 A significant resource input has been involved over the past 18 months in developing the NRM initiative and getting it to this point. The underlying philosophy of the NRM approach is to provide leadership and support to both the wider community and managers and staff within the County Council in being more effective in making linkages and working across functional areas to achieve NRM objectives. To this extent NRM is founded on making better use of existing resources although the scope of the initiative does mean that some additional and added value activities, not currently resourced, are involved in achieving the business objectives.

6.2 There is a specific need for a project director to lead the initiative, together with a small executive team to support the external work, assist in making linkages and provide overall coordination. In addition it is envisaged that the team would be responsible for certain added value services in the materials area, including leading work to achieve the PSA target, strategy and market development, support to business and commerce, and community engagement. It is proposed to build on the model of the Environmental Challenge Team (ECT) role in supporting the Corporate Sustainable Development Strategy by extending the brief of the ECT to include that of the executive team.

6.3 As noted above, the Cabinet has agreed that the NRM initiative be commenced using existing resources and/or external funding. A review of priorities within parts of the Environment Grouping is being undertaken to release modest resources to move the initiative forward. In addition, PSA pump-priming funds amounting to £153,900 will be available to support achievement of the PSA target. It is proposed to use this money to fund two additional posts over an initial period of two years. Activities over the two years should lead to considerable achievement and at the end of this period the long term budget requirements would be much clearer.

6.4 It is envisaged that the main funding for community NRM projects will be from external sources, such as Landfill Tax environmental monies, via the proposed Hampshire NRM Trust.

6.5 Inevitability progress and achievement will be related to the staff and financial resources that can be secured and it may be necessary to further prioritise activities when the full picture is determined.

7. Conclusion

7.1 The NRM Initiative is about embarking on a journey that will engage the Hampshire community in a process that will progressively lead to a step-change in the more sustainable use of natural resources. It has been agreed in principle by the Cabinet and fully accords with the County Council's vision and strategy objectives, as well as EC and Government policy. It links with community strategies, Best Value and the County Council's community leadership role by building on community aspirations through joint working both inside and outside the County Council. The concept is a visionary one to which Members should have their attention drawn.

7.2 The initial focus of the work will be on the high priority area of material resources, ie those which are dug as minerals and/or end up as waste. However, the intention would be to apply the concept to other natural resources (eg energy, water, soil, biodiversity) in due course.

7.3 The proposed aims and business objectives are intended to advance the NRM agenda both in the community and within the County Council. The objective is to adopt a twin track approach based on progress towards long term goals whilst making some early achievements that make a real difference. In the latter respect, achieving the PSA target for NRM is the key priority.

7.4 The NRM initiative will be established using existing resources and PSA pump-priming finance. The aim is to maximise the use of external funding for community projects.

Recommendation

That following the Cabinet's agreement to Natural Resource Management on 29 October 2001 the further progress and direction of this initiative be supported.

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