MINUTES OF THE BOARD MEETING HELD ON THURSDAY, 19 JANUARY 2006 AT RENAISSANCE HOUSE, WARRINGTON

Present: 
Bryan Gray (Chairman)
David Brockbank
Joe Dwek
Sir Martin Harris
Peter Hensman
Pauleen Lane
Dave McCall
John Merry
John Moverley
Anil Ruia
Brenda Smith
Maureen Williams 

Also Present: 
Steven Broomhead
Bernice Law, Secretary
James Berresford (Item 75/00)
Mark Hughes (Item 75/04)
Peter White (Items 75/05, 75/06)
Nick Gerrard (Item 75/07)
Ian Haythornthwaite (Item 75/09)
David Higham, GONW Observer

75/00 PRESENTATION: LOWTHER DEVELOPMENT PLAN
The Board received a presentation on the Lowther Development project from Jim Lowther of Lowther Estates and Kate Willard of Rural Regeneration Cumbria. The core of the project will be to create an attraction of national and international renown securing the restoration of the castle facade and re-instating the site's historic gardens.  An innovative new build will provide an immersive museum experience, conferencing and education facilities.  A 4,000 seater events arena will be created to the North of the Castle.  A luxury hotel and 300,000 sq feet enterprise park for creative industries will complete the development.  The project will present a mixed public /private sector investment opportunity.  Total costs at this stage are in excess of £100m.

The Board noted that a small steering group would manage the project development plan to final planning stage.

75/01 INTRODUCTION AND APOLOGIES FOR ABSENCE
Apologies were received from Marie Rimmer and Mike Storey.

75/02 MINUTES OF THE MEETING HELD ON 15 DECEMBER 2005
The minutes were approved as a correct record.
 
75/03 ACTION POINTS FROM LAST MEETING AND MATTERS ARISING 
The Board noted the progress made with regard to the action points from the previous meetings.

ITEMS WHICH REQUIRE A DECISION
 
75/04 REVIEW OF BUSINESS SUPPORT AND BUSINESS LINK
The Executive Director, Enterprise, Innovation and Skills provided a presentation on the review of Business Link to update Board Members on developments since the discussion at the November Board meeting.  The Board were reminded of the case for change, which covered the following key factors:

• Economic performance
• The business support environment
• Value for money
• Alignment with RES priorities.

The aim was to provide a high quality, customer led cost effective service for the region’s businesses and to deliver a step change in the rate of new business formation and growth of existing businesses in the North West.

The Board noted the progress to date and in particular the risks associated with the project. 

75/05 REGIONAL FUNDING ALLOCATIONS: DRAFT ADVICE TO GOVERNMENT
The Board were reminded that under the devolved decision making initiative, regions were invited to submit advice to Government on spending priorities in three areas – transport (road schemes), housing and economic development (RDA budgets).  The advice would cover the period 2005/06 - 2007/08 for which funding allocations had already been made and also 2008/09 - 2015/16 for which indicative planning assumptions had been published. 

The Board noted that the Agency had been working with the North West Regional Assembly and Government Office for the North West who is facilitating the process. 

The Board also noted that the draft advice emphasised the integration of spending priorities in the different resource areas to meet agreed regional priorities and that agreement of the advice had been reached on all three elements i.e. housing, transport and economic development.

The Board agreed that the document should include a statement to highlight the special status of Cumbria and its importance regionally and nationally, particularly in respect of the nuclear agenda. 

The Board approved the draft regional advice to Government, subject to the additional statement about Cumbria and any final amendments agreed by the Chairman and Chief Executive following further meetings with the North West Regional Assembly and Government Office North West.

ITEMS FOR INFORMATION

75/06 REGIONAL HOUSING STRATEGY 2005
The Board noted that further to the publication of the Regional Housing Strategy 2003, a revised Strategy had been submitted to Government in July 2005, which had recently been published.

The revised Regional Housing Strategy (RHS) is more explicitly focused on the economic impacts and benefits of the housing sector, pays greater attention to the relationship between the housing and planning agendas and has a spatial dimension largely absent from the previous Strategy of 2003.  It sets out four strategic priorities for housing intervention:

• Delivering urban renaissance.
• Providing affordable homes to maintain balanced communities.
• Delivering decent homes in thriving neighbourhoods.
• Meeting the needs of communities and providing support for those who need it.

The Board noted that whilst the revised RHS was produced slightly ahead of the current RES review, there had been close working on the production of the two documents and that the Agency had been represented on the Regional Housing Board.  The Board also noted that key issues and themes in the RHS aligned well with the RES and the RHS recognised the interdependence of housing and economic growth.
 
75/07 NORTHERN WAY GROWTH STRATEGY
The Board noted developments with the delivery of the Northern Way Growth Strategy and in particular, the details of the projects that had been approved by the Northern Way Management Group.  This included a worklessness pilot in Knowsley and the Northern Leadership Academy, which would be delivered by a consortium led by Lancaster University, to address leadership development in the North. 

The Board also noted the nominations for the membership of the Northern Transport which were as follows:

• NWDA - Pauleen Lane, Board Member.
• NWRA - Brian Simpson (Ex MEP; now the Director of North West Rail Campaign.)
• City Region representative - Councillor Tony McDermott (Halton Borough Council for Liverpool City region).
• Private Sector - Dennis Mendoros (Managing Director, Euravia Ltd)

The first meeting of the Compact would take place early in 2006.

The Board was also advised that Neville Chamberlain had been appointed as the new Chairman of the Northern way, to replace Sir Graham Hall.  He would take up appointment in March 2006.
 
75/08 CHIEF EXECUTIVE’S REPORT

BBC North Project
The Board noted developments with regard to the BBC’s proposed move to the North, which included significant progress in assessing the four Media Zone proposals in Manchester and Salford.

The Board was advised that on 16 December, the BBC received NWDA’s detailed evaluation of the proposals, which would inform the BBC Governors selection, in mid January, of the two short listed proposals.

It was also noted that the Agency had commissioned Price Waterhouse Cooper (PWC) to assess the economic impact of the Media Zone.  This work would be developed further to include the potential benefits for the rest of the North of England in liaison with Yorkshire Forward and ONE NorthEast. 

The Board was made aware that the Agency’s investment proposals were contained within the SIP 2006/2009 and that detailed discussions were taking place with the BBC and the bidders about relevant Media Zone issues for Agency investment. The Urban Sub Committee would receive a detailed proposal on the Agency’s investment, prior to a full report to the March Board. The Board also noted that the BBC’s final decision on relocation was not expected before April 2006 and would be subject to the Licence Fee negotiations.  The Agency was also working closely with DCMS on this issue. 

Cox Review Of Creativity In Business: Building on the UK’s Strengths
The Board noted the summary of findings from the Cox Review, which had been commissioned by the Chancellor of the Exchequer as part of the Budget Review 2005.   Sir George Cox had looked at how design and creativity could improve business productivity.

The Board was advised that the RDAs were currently working with the Design Council to develop an evaluation framework for the Design Programme for Business to examine the outcomes of the pilot exercises, which Yorkshire Forward and One North East are taking forward.  NWDA, however, had been working with the Design Council for over two years and during that time had formed a Design Forum, consisting of industry leaders, academia and intermediaries.  The Board noted that the Design Forum had developed a Design Strategy, which included a number of initiatives that fully aligned with the findings from the Cox Review. 

Pre Budget Report
The Board noted the summary of the Pre Budget report which had been announced by the Chancellor on 5 December 2005 and which included a series of measures to stimulate regional economic performance, strengthening regional institutions and increasing regional input into national policy design.  As part of this, RDAs had been invited to provide policy advice for the 2006 Budget on three specific areas:

• Rationalising business support.
• Developing the links between national and regional frameworks for innovation.
• Increasing private sector investment in economic regeneration.

The Board was advised that initial proposals were being prepared by Yorkshire Forward, on behalf of all the RDAs and would be submitted to the RDA Chairs’ meeting later in January.

The report also confirmed that an Independent Performance Assessment, of which NWDA was in the first phase, would be rolled out across the RDA network. In addition, a new RDA evaluation framework, providing RDAs with tools to assess their economic impact would be completed by Summer 2006.

Business Forecasts Northwest – December 2005
The Board noted the summary of the Business Forecasts for the region for December 2005, which showed that the Northwest had outperformed the UK in recent years, growing by 2½% in 2003 and over 3½% in 2004.  However, during 2005 the region’s economy was expected to have grown by a little less than 1¾%. The slowdown reflected the pressures that had affected the UK economy as a whole. 

The Northwest was still expected to have grown a little faster than the UK in 2005, partly because of the differences in structure.  Market intelligence suggested that regional growth is now slowing as rapidly as in the UK and a trough in the present economic cycle, regionally and nationally, was anticipated fairly early in 2006.  Some recovery was expected during 2006 and in 2007/08 growth is expected to be around 2½%.   
 
City Summits in the Core Cities
The Board noted that in Autumn 2005 the Rt Hon David Milliband had held a series of City Summits to illustrate the importance of all levels of Government working together towards a common goal to help our cities overcome the barriers that have prevented them from competing effectively with the best in Europe.  In December, the Minister had written to the NWDA Chairman to advise him of the outcome of the events and in his correspondence had emphasised the importance of cities and regions working together to maximise economic potential. 

The Board also noted that since the Summits, an article on the emerging “New Deal for Cities”, written by the Minister, had been published in the Policy Review Magazine (week commencing 2 January 2006).  The article explained how ‘New Deal for Cities’ would tie in with a new vision and long term strategy for towns and cities, and emphasised the interdependence of Region and City Regions from a socio-economic perspective.  

Big Lottery – Living Landmarks
The Board noted that in June 2005, the Big Lottery Fund had launched Living Landmarks, a UK wide programme that seeks to encourage communities to work together to improve their quality of life and their environment through major capital projects.  There were two parts to Living Landmarks.  The first would be an award of a small number of grants between £10 million and £25 million, and the second a single grant of between £25 million and £50 million. 

The Board noted that interest in the region had largely concentrated on the smaller financial award. Applicants had been advised by the Big Lottery to consult RDAs on their bids and subsequently NWDA had been contacted by a number of bidders.  The Board noted that, of the North West bids, three had immediate relevance to the new RES: i.e. Hadrian’s Wall, the Lowther Project, Cumbria and the ‘Peoples Playground’ in Blackpool

All bids had been submitted.  Successful applicants would be informed in May as to whether their bids would be taken through to the next round.  At that time the Agency would be asked to comment on the proposals.

Configuration of NHS Ambulance Trusts in England
The Board noted that a national consultation document, which sets out proposals for the restructuring of the ambulance service in England had recently been issued.  This document aimed, amongst other things, to improve patient care, provide more investment into frontline services and respond quickly and effectively to local needs.  Recommendations included proposals to dissolve the four Ambulance Trusts in the North West into one single Ambulance Service NHS Trust.

Board members noted that the consultation period would close on 22 March 2006. 
 
Corporate Management Structure
The Board noted that the Chief Executive was currently reviewing the Agency’s Corporate Management Structure in the light of the new RES, which would be in place from 1 April 2006.  A report would be presented to the February Board.

75/09 FINANCE DIRECTOR’S REPORT
 
The Board noted the Agency’s financial position as at 30 November 2005 and in particular that the Agency was forecasting to end the financial year within the broad budget constraints that the Board had set and agreed with DTI.

The Board also noted that work on the Strategic Investment Plan (SIP) 2006/2009 was continuing and that presentations to the Board Sub Committees were on schedule.  The Board would be asked to approve the final SIP at the Board meeting, taking into account the findings from the Sub Committees.

The Board were advised of the progress made with regard to the Agency’s Property Strategy:

• The Property Advisors and Legal Advisors had been appointed to assist the Agency with the development of the PPP
• The Agency was preparing and issuing the OJEU notice. Evaluation of the OJEU responses was expected to be completed by March 2006
• The Agency would then undertake a shortlisting, selection and negotiating exercise to be complete by June 2006.

The Board noted the approved delegations for the period 18 November to 19 December 2005.

The Board approved the Single Tender Action for Manchester International Festival Ltd to the value of £600,000

75/10 CHAIRMAN’S REPORT  
The Chairman provided a summary of the outcome of a series of meetings he had held with individual Board Members during December. 
 
75/11 MINUTES FROM THE URBAN SUB COMMITTEE HELD ON 15 DECEMBER 2005.
The Board noted the minutes from the meeting of the Urban Sub Committee held on 15 December 2005.

75/12 BOARD MEMBERS FEEDBACK
Joe Dwek advised that he was undertaking a tour of the region to review derelict land.  He would let Board Members know the outcome once the tour was completed

Bryan Gray and Pauleen Lane gave feedback from the visit to the region by Lord Sebastian Coe, the Chairman of the London Organising Committee for the Olympic Games.  The visit included:

• A dinner in Manchester, at which Lord Coe acknowledged the North West’s contribution to securing the Olympics in 2012
• A conference which the Agency had organised and at which Lord Coe outlined the challenges and opportunities for the North West to make the most of the Games.

The Board noted that the bidding company (London 2012) had re-constituted itself into an Organising Committee and as part of the process, a Nations and Regions Group had been established.  The North West representative on this group was Andy Worthington, Chair of the NW Sports Board, with Bryan Gray as an alternate.

Dave McCall advised the Board that the Migrants Charter had been launched in Manchester earlier that week.
 
75/13 DATE AND TIME OF NEXT MEETING
The next meeting will take place on 16 February 2006 from 10.00am until 4.00pm at Renaissance House, Warrington.