MINUTES OF THE BOARD MEETING HELD ON THURSDAY, 13 JULY 2006 AT NWDA HEADQUARTERS, RENAISSANCE HOUSE, WARRINGTON

Present: 
Bryan Gray (Chairman)
Martin Harris
David Brockbank
Joe Dwek
Peter Hensman
Pauleen Lane
Dave McCall
John Merry
John Moverley
Vanda Murray
Marie Rimmer
Anil Ruia
Mike Storey
Maureen Williams
 
Also Present: 
Steven Broomhead
Bernice Law, Secretary
Ian Haythornthwaite (88/06,88/08, 88/10)
Peter White (88/04, 88/05)
David Perkins (88/07)

Phil Robinson NWRA (Observer)

81/00 PRESENTATION FROM PROFESSOR NICK JENKINS CHAIR, NORTH WEST ENERGY COUNCIL

Professor Jenkins provided the Board with an overview of the work of the NW Energy Council which was formed in October 2003 and which has a role to advise the Agency on the development and implementation of the RES as it relates to energy, creating:

• Wealth and employment.
• Greater diversity and security of supply.
• Environmental improvements from clean and sustainable energy systems.

It also supports initiatives such as Regional Climate Change and Energy Action Plan.

The Council’s key achievements were:

• Annual conference (Reghed 2003, Lancaster 2004, 2005, Manchester 2006).
• Establishment of the Joule Centre for Energy Research.
• Formulated responses to Government Consultations.
• Provided initial screening for the Agency’s Energy proposals.
• Provided proposals for Agency Intervention by NWDA in Energy.

The presentation set the work of the Energy Council both within the NW context, highlighting the size of the Energy sector within the region; and within the UK context relating to the Government’s Energy policy and the recent Energy Review.

Professor Jenkins highlighted the opportunities for the region which were:

• Very dynamic policy and commercial environment.
• Excellent track record of HEIs.
• Leading region for nuclear engineering.
• Large Government programmes aimed at energy efficiency (EEC, Carbon Trust and EST).
• Opportunities particularly for offshore wind, micro generation and marine renewables.
• High fuel prices that are likely to be sustained.

As well as the threats:

• Ageing power plant (generation and T&D).
• Uncertainty over commercial development of nuclear power.
• Rising energy costs impacting on industry.
• Opposition to renewables (on shore wind).
• Opposition to changes proposed in Energy Review.
• Significant skills shortages.

Within that context the future vision for the Council was to ensure that the NW was leading the region on:

• Energy policy development.
• Deployment of new energy technologies.
• Research and innovation.
• Business opportunities.

As part of the ensuing discussion the Board asked Professor Jenkins to enlist the Council in a review of energy production from waste materials.

81/01 INTRODUCTION AND APOLOGIES FOR ABSENCE

Apologies were received from Brenda Smith and Keith Barnes, GONW Regional Director.

81/02 MINUTES OF THE MEETING HELD ON 15 JUNE 2006 AND MATTERS ARISING

The Minutes were approved as a correct record.

The Board agreed that it would receive at its September meeting reports on the response to the consultation on the Climate Change Action Plan and the Energy review.

81/03 ACTION POINTS FROM PREVIOUS MEETINGS
 
 The Board noted the progress made on the action points from previous meetings.

ITEMS FOR DECISION
 
81/04 STEP FORWARD: WEST ALLERDALE REGENERATION

Linked to this item, the Board received from David Brockbank the presentation on West Cumbria Strategic Forum which would be made to the Secretary of State for Trade and Industry when he visited West Cumbria on 14 July to chair the Strategic Forum.  The presentation set the context for the Board’s consideration of the StepForWARd: West Allerdale Regeneration programme.

StepforWARd was an eight year programme designed to maintain and develop the economic sustainability and viability of Maryport and Workington. The Board was advised of how the programme would directly contribute to the new RES, the West Cumbria and Furness Strategy and the Cumbria Vision Strategic Plan.

Key projects within the programme include:

• Public realm improvements in the town centres of Maryport and Workington.
• Infrastructure to facilitate the development of Derwent Valley.
• Development of the Strategy for Derwent Howe.
• Development of two Business Improvement Districts.
• Development of the River Ellen Corridor.
• Reconfiguration of Maryport Harbour.

The Board expressed some concern at the capacity of West Lakes Renaissance and the associated risks, to deliver this programme. 

The Board approved investment to Cumbria Vision for the StepforWARd programme subject to confirmation that it meets the objectives of the emerging West Cumbria Strategic Masterplan.

81/05 DRAFT REGIONAL SPATIAL STRATEGY

The Board received the Agency’s response to the Draft Regional Spatial Policy which had been agreed by the Infrastructure Sub Committee and had already been submitted to Government with the caveat that the response was subject to NWDA Board approval.

The Board noted the critical issues raised within the Agency’s response which were likely to be the subject of significant debate at the Examination in Public that would take place in autumn 2006.  In summary, the issues which the Agency raised were around the way in which the Draft RSS reflected the RES.

The Board noted that following the Examination in Public the Panel would submit its report to the Secretary of State for Communities and Local Government, after which there would be a further round of consultation on any resultant changes that the Secretary of State proposed.  A final version of the RSS was expected in the autumn of 2007.

The Board approved the Agency’s response to the Draft RSS.

81/06 ANNUAL REPORT AND FINANCIAL STATEMENTS 2005/06

The Board received the Annual Report and Financial Statements 2005/06, which had been presented to the Audit Committee earlier that day for detailed review. 

The Board approved the Annual Report and Financial Statements 2005/06 for onward submission to NAO.

81/07 ANNUAL PERFORMANCE MONITORING REPORT 2005/06

The Board noted the range of activity which the Agency had undertaken throughout the 2005/06 financial year and in particular its key achievements including outputs against targets.  The Board was advised that the Agency had achieved its expenditure targets and nine out of ten of its performance targets.  The Board noted the reason for non achievement of the output for the number of adults in the workforce achieving at least a full level NVQ2 or equivalent and was advised that the target had been a point of discussion between the RDAs collectively and DfES.

The Board approved the Annual Performance Monitoring Report 2005/06 for onward submission to Government Office and publication on the Agency’s website.

81/08 CLUNET
 
The Board noted the detail of the CLUNET project, which would enable the NWDA priority clusters to compare and contrast cluster policy with other cluster organisations across a partnership that includes exemplar regions in Germany, Spain, Italy and France.  The project was being developed following a EU call under FP6 Innov 9 which had invited all RDAs across Europe to develop and share policies and networks relating to cluster development.

The Board noted that the benefits from this project to the region were:

• Technology exchange between partners.
• Market exploitation opportunities.
• Inward investment opportunities.
• Strong positioning of NWDA /NW Clusters/ SME’s to bid for further funds in the Framework 7 CIP programme to enhance the regional economy.

The Board also noted the key outcomes which were:

• Recognition by EU of NWDA as a leader in cluster development programmes.
• NWDA would contribute to the EU Cluster Memorandum.
• NWDA would contribute to the EU cluster internationalisation strategy.
• Sharing of best practice in cluster development within the partnership to mutual benefit.
• Good practice guidelines for new and emerging and existing clusters.

The Board noted that a European Cluster Alliance was being established which would consist of the four successful EU cluster projects in the Innov 9 call. The Alliance would be launched formally in September 2007. An Advisory Group would oversee the work of the Alliance and would consist of Ministers and RDA representatives.  NWDA had been asked to nominate a representative.

The Board agreed to the appointment of a senior NWDA representative to sit on the Advisory Group.

81/09 CHIEF EXECUTIVE’S REPORT
 
a) North West Regional Assembly Business Plan 2006/09   
The Board noted that the North West Regional Assembly (NWRA) had recently published its Business Plan for the three year period 2006 to 2009.  The Board noted that the document outlined the Assembly’s immediate priorities.  The Board welcomed the acknowledgement within the document that stated that the Assembly’s relationship with the Agency and Government Office had never been better and that communications and collaboration had much improved, particularly in respect of the Regional Funding Allocations; Regional Transport Priorities; Regional Spatial Strategy; Regional Economic Strategy; Regional Housing Strategies and Initiatives; Equality issues; Sustainable Development and the European Framework.

The Board agreed that the Assembly’s three year objectives in respect of its Regional Scrutiny role were of particular interest.  These were as follows:

• Agreement of joint protocol with NWDA to provide an effective method of scrutiny of the Agency’s activity to meet statutory requirements.
• Strategic and detailed assessments of the RES thematic priorities.
• Examination of key NWDA strategic issues around the Corporate Plan.
• Joint meetings of NWDA and NWRA Executive Boards.

The Board welcomed the document and agreed that it illustrated the focussed approach that the Assembly was taking.

b) Department of Health Research Centres    
The Board was advised that earlier in the year the Department of Health (DH) had initiated a competitive bidding process for both Biomedical and Specialist Research Centres.  It was expected that approximately ten centres would be funded and would receive 20% of all DH R&D budget for the foreseeable future.  The Board was advised that the NW Science Council had agreed a regional approach, whereby Manchester would bid for Biomedical research and Liverpool would bid for a Specialist Centre (Microbial Diseases).  Sir Martin Harris NWDA Deputy Chair was leading for the Agency in terms of lobbying and supporting the bids at national level.  The final decision was expected at the end of the calendar year, with implementation beginning early in 2007.
 
c) National Manufacturing Skills Academy (NMSA)   
The Board received an update on progress on the development of the NMSA which was being led by the Sector Skills Council Science Engineering Manufacturing Technologies alliance (SEMTA).  The aim is for the North West to be one of the first to develop and launch a regional spoke of the NMSA. 

The Board noted that excellent progress had been made and that the NMSA Business Plan had been completed by the end of June.

d) Cox Review    
The Board noted that the Cox Review had been commissioned to look at how best to enhance UK business productivity by drawing on world – leading creative capabilities.  The Board was advised that to support the recommendations from the review and to promote creativity, design and innovation in business there was a need to:

• Engage with SMEs to raise awareness and demonstrate the practical benefits of applying creativity.
• Educate the wider business community to how design can develop business.
• Provide mentored intervention to identify and deliver design projects.

In addition the Board noted that delivery would need to link closely to the future Business Link Information, Diagnosis and Brokerage model through the use of specialist advisors (similar to Skills Brokers and Manufacturing Advisory Service), who would undertake transformational innovation, creativity and design activity with businesses.  The Board was advised that an initial proposal was being developed, for which Agency funding would be sought. 

The Board also noted that the Review also recommended the creation of greater visibility for the UK's creative capabilities through the development of a network of 'Creativity and Innovation' centres across the UK.  For the NW region the Agency would engage with the cluster organisations to assess the opportunity and need for such centres.
 
The Board agreed that the approach would support the Cox Review recommendations and would help to accelerate the change required to ensure the NW was capable of exploiting the creative capabilities at its disposal.

e) Institute for Public Policy Research (IPPR) Report:  City Markets   
The Board was advised that the Centre for Cities, an independent urban policy unit based at the IPPR had recently produced a report on City Markets which looked at deprived areas in relation to their levels of business activity, calling them Business Deprived Areas (BDAs).  The work had focussed on a group of 30 BDAs, of which most were in the North East, however Oldham had been included. The Board noted the recommendations from the report and the collective RDA response to the recommendations, which had been prepared by ONE North East and which in essence agreed with the recommendations. It also explained how RDAs had already acknowledged some of the issues raised within Regional Economic Strategies and subsequently were in the process of taking forward some of the recommendations.

f) National Microsystems Packaging Centre (NMPC)  
The Board received a brief update on the development of this project. Specifically:

• The economic analysis had been satisfactorily completed;
• The structure of the new University SPV was agreed;
• State Aid issues had been resolved;
• Operator contract terms and conditions had been agreed in principle;
• Property terms agreed; and
• The principles around the SPV’s modus operandi had been completed.

The Board was also advised that detailed negotiations were underway on a range of legal agreements. 
 
g) CSR/RDA Evaluation   
The Board noted the Agency’s involvement in the CSR/RDA Evaluation as follows:

• The future RDAs’ budget was being considered as part of an HM Treasury review of economic development which would feed into CSR 2007.
• The Agency was leading the cross RDA work on the spending review.
• The Northern Way had been asked to provide suggestions for future Government policy and the Agency was leading the work on that too.
• The Chief Executive was chairing a cross RDA group that was preparing a detailed analysis and evaluation of RDAs outputs and impact to date.

The Agency had also been asked to provide a regional input into CSR in conjunction with the NWRA Regional Executive.

h) New Anfield     
The Chief Executive reported that the Agency was still awaiting confirmation from Liverpool Football Club that it had obtained the necessary funds to construct a new Stadium in Stanley Park, Liverpool.  The Objective 1 Programme on Merseyside had set a deadline of 27 July for the Club to provide the confirmation. Should it not be received by then the funding identified for the new Anfield project would be re-allocated.  The Agency understood that high level meetings between the City Council and the Football Club had taken place to progress matters.
 
i) Chinamex / ITEC  
The Board noted that a collaboration between ITEC (a group of NW based Chinese business men) and Chinamex (a Chinese facilities organisation) were seeking to establish a Chinese Trade Centre at Westwood Park, Wigan.  The centre would provide a Western European wholesale and distribution base for approximately 1,200 companies.  In addition to office, warehousing and distribution facilities, the proposal included hotel, casino and conference facilities; residential accommodation for Chinese nationals; leisure, retail and restaurant facilities; a Chinese temple; and a British Pavilion to showcase British products.

The Agency had been asked to provide funding to support transport infrastructure, with additional funding being sourced from ERDF. Wigan BC had confirmed that it could forward fund the cost until 2007/08. However, the Board noted that progress depended on a number of prerequisites. 

j) Transport Innovation Fund (TIF) Productivity Proposals   
Further to his report to the Board in March 2006, the Chief Executive reported that, following consultation with RDAs, the Secretary of State had announced a number of schemes to be considered for an initial allocation of funding from the Productivity TIF.  For the North West, the reinstatement of Olive Mount Rail Chord in Liverpool had been shortlisted for business case development and appraisal by DfT.  The scheme would be taken forward as a Northern Way ‘early win intervention’ and the Board was advised that the funding partners anticipated completion or at least substantial completion by March 2008 prior to Productivity TIF coming on stream.

The Board was advised that Government had made it clear that only a limited proportion of the eleven short-listed schemes were likely to receive TIF funding.  Decisions on the first round allocations of Productivity TIF, and the approach to handling future allocations from the TIF, would be announced by DfT at the end of the year.

k) UK Inward Investment Results 2005/06  
The Board noted the Inward Investment results for 2005/06 which had been announced by UKTI on 5 July.  The Board was advised that the NW performance, (i.e. 112 projects; 3,385 new jobs; and 3,418 safeguarded jobs) maintained the region’s position as one of the top UK locations for attracting inward investment.

l) NW Strategic Women’s Enterprise Steering Group   
The Chief Executive reported that over two years ago the Agency had established a North West Strategic Women’s Enterprising Steering Group to represent the views of business women within the region and act as a strategic advisory group to the Agency in respect of the women’s enterprise agenda.  The Board was asked to respond to a request from the Group for a regional Champion for women’s enterprise.

m) Perceptions of England’s Northwest 2006:  MORI Research Study   
The Board received a summary of the findings from the research study, which MORI had conducted on behalf of the Agency into the perceptions of the region.  The programme of research was undertaken with residents, businesses and opinion leaders in the region, across the UK as well as opinion leaders in Europe and the US.  The Board agreed that the survey results should be published.

n) Train to Gain   
The Board received a short report on the background to the Train to Gain programme, the LSC’s new flagship service to employers that builds on the success of the Employer Training Pilot, which operated in Greater Manchester and Lancashire; and was a re-branding of the National Employer Training Programme.    
 
The Board was advised that the Agency had secured the contract for the regional Skills Brokerage Service to be delivered under the Train to Gain brand in the Northwest. The service was designed to help businesses identify their workforce training needs and to link those needs with training and learning providers across the region.

o) Organisational Review   
The Board received an update on the Agency’s organisational review, which was progressing well. 
 
81/10 FINANCE DIRECTOR’S REPORT
 
 The Board noted:

• The Agency’s financial position for the period ending 31 May 2006.
• The current position with regard to the investment available within the SIP and the prioritising of projects for investment decision.
• The Delegations which had been approved during the period 23 May 2006 to 12 June 2006.

The Board also noted the progress made to implement the Agency’s Property Strategy.  Three tenders had been selected to be taken forward to the next stage.  The Board was advised that during the tender process a request had been made by Salford City Council to purchase Salford University Business Park.  The Property Task and Finish Group had agreed to recommend to the Board that it should approve the proposal. Consequently the Board approved the sale of University Business Park to Salford City Council. The Board also agreed that the Liverpool Digital site should be included in the PPP in place of the Salford site.

The Board received the Efficiency Plan performance report for quarter ending 31 March 2006, which had been submitted to DTI, and noted that the Agency had achieved its targets for the year. 

81/11 CHAIRMAN’S REPORT

The Chairman reported the following:

• The BBC had chosen Salford as its preferred site in Greater Manchester. Now that the location had been determined the Agency would focus on the delivery of the wider Media Enterprise Zone with the BBC as the anchor tenant. 

• The Secretary of State for Trade and Industry would chair the West Cumbria Strategic Forum on 14 July.
• Excellent progress was taking place in Liverpool.  In particular the Mann Island development was progressing well.  An exhibition of the whole site was planned for the autumn.
• The appointment of the Managing Director of Business Link and the progress to implement the new Business Link service from 1 April 2007.
• The NWRA Annual Conference and particularly the key note speech from EU Commissioner Hubner, who gave some strong messages around transparency, partnership working and the continued need for the Region to have a strong economic focus recognising the balance between infrastructure and other interventions around people and place.

The Chairman also provided feedback from the RDA Chairs meeting which had taken place on 6 July 2006.

The Board were reminded of the date of the Agency’s Annual General Meeting on 4 October 2006 at the Manchester International Conference Centre.

81/12 MINUTES OF THE ENTERPRISE AND INNOVATION SUB COMMITTEE HELD ON 15 JUNE 2006

The Board noted the Minutes from the Enterprise and Innovation Sub Committee held on 15 June 2006

81/13 MINUTES OF THE PROPERTY TASK AND FINISH GROUP HELD ON 19 JUNE 2006
 
The Board agreed the Minutes from the Property Task and Finish Group held on 19 June 2006
 
81/14 DATE AND TIME OF NEXT MEETING

The next meeting would be part of a residential event in Greater Manchester from 13 to 14 September 2006.