MINUTES OF THE BOARD MEETING HELD ON THURSDAY, 18 MAY 2006 AT
BENTLEY MOTORS, CREWE, CHESHIRE
Present:
Bryan Gray (Chairman)
David Brockbank
Joe Dwek
Sir Martin Harris
Peter Hensman
Dave McCall
Vanda Murray
Marie Rimmer
Anil Ruia
Brenda Smith
Mike Storey
Maureen Williams
Also Present:
Steven Broomhead
Bernice Law, Secretary
Ian Haythornthwaite 79/04,79/11
Fran Hulbert 79/00,79/05,79/09
Patrick White 79/05,79/08
Tim Sheward 79/08
79/00 PRESENTATION: REGIONAL SKILLS
PARTNERSHIP – PHIL LOWTHIAN, RSP SECRETARIAT
Phil Lowthian provided a presentation on the background to the
establishment of the Regional Skills Partnerships; the context
within which it worked (i.e. in terms of relationships with other
partners and stakeholders); and achievements to date.
The future role of the RSP had been determined within three
categories of activity:
- Structural - The RSP needs to be aware of the changes taking
place within LSCs, JC Plus and European Funding administration
arrangements.
- Tactical – the RSP recognised that it needed to:
o Develop better linkages to Local Authorities
o Challenge planning and funding partners
o Build and maintain partner momentum
- Practical – The RSP would have an active role in the:
o Roll out of Sector Skills Agreements
o Skills Brokerage and Train to Gain programme
o Integration Brokerage and other Employer Services
o Impact through LAAs and LEGI
o L4/HE Pathfinder
79/01 INTRODUCTION AND APOLOGIES FOR
ABSENCE
Apologies were received from John Merry, John Moverley and
Pauleen Lane.
79/02 MINUTES OF THE MEETING HELD ON 20 APRIL
2006
The minutes were approved as a correct record.
79/03 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 FOR DECISION
79/04 FINANCIAL REGULATIONS AND SCHEME OF FINANCIAL
AND BUSINESS DELEGATIONS.
The Board agreed the policy statement on Financial Delegations
which had been designed to ensure:
- Compliance with the Management Statement and Financial
Memorandum, as issued by the Secretary of State;
- Transparency of the delegations process;
- That the financial responsibilities of the Accounting Officer
could be appropriately discharged; and
- That the day to day management of the Delegations process could
be undertaken in an efficient and effective manner.
The Board approved the Agency’s Financial Regulations and Scheme
of Financial and Business Delegations which would be applied to the
conduct of all the Agency’s financial business.
The Board noted the summary of responsibilities and
accountabilities; and also approved the specific schedule of
financial and business delegations as outlined within the policy
statement.
REGIONAL ECONOMIC STRATEGY
79/05 IMPLEMENTING THE RES AND PROGRESS ON THE
SKILLS AND EDUCATION TRANSFORMATIONAL
ACTIONS
The Board noted the progress made to date by the Agency and its
partners to deliver the Skills and Education Transformational
Actions contained within the RES; in particular the excellent
progress made to establish the University for Cumbria, on which a
full report would be presented to the June Board.
The Board requested that in future the report on Implementing
the RES should be amended to pull out examples of project delivery
and best practise and using the Traffic light scorecard show major
issues and risks.
79/06 EU POLICY AND FUNDING: RESPONSE TO THE
CONSULTATION ON THE DRAFT NATIONAL STRATEGIC REFERENCE
FRAMEWORK
The Board noted that in February, the Government had issued a
consultation document on the UK National Strategic Reference
Framework (NSRF), which relates to the use of structural fund
programmes between 2007 and 2013. The Board was advised that
since the consultation document had been issued, the Agency had
been working closely with the Regional Assembly and sub regional
and local partners to develop a joint regional response.
The Board noted particularly that the proposal was for one
single programme for the Region, within which a mechanism would be
designed to ensure that RES and sub regional priorities were
reflected. This would be particularly important in Merseyside where
it was proposed there would be a ring fenced element within the
regional programme.
The Board approved the draft response which included a number of
high level recommendations as follows:
- There was a need for a single regional programme, including a
ring fenced component for Merseyside.
- The RES should determine overall priorities for ERDF and ESF in
the next programme and provide a substantial evidence base for
programme development.
- That the allocation methodology for ERDF and ESF should be
informed by the PSA2 target for regional economic performance and
that structural funds should be targeted at those regions with
below average GVA.
- That there should be a national top slice for Cumbria given
that it was the only UK sub region in economic decline.
- That there should be stronger recognition of the Northern
Way.
- There was a need to enhance the scope of the ESF component to
include training above level 3 in line with the RSP priorities in
the RES.
- There was a need to ensure that ERDF and ESF were properly
aligned at regional level to ensure appropriate linkages were made
at regional and local levels.
ITEMS FOR INFORMATION
79/07 UPDATE ON SUB REGIONAL
PARTNERSHIPS
The Board noted the progress made in respect of SRP planning and
the steps which the SRP Steering Group had implemented to ensure
that each SRP was clear on its role and responsibilities in
relation to RES delivery; on the purpose of the Action plans; and
that each Action Plan was fit for purpose.
The Board also noted the key dates within the process, which
were as follows:
End July 2006 - SRP Action Plans would be
submitted to NWDA
End August 2006 - NWDA would complete its review of SRP
Action Plans
September 2006 - SRP Action Plans would be presented to
the NWDA Board
The Board endorsed the policy statement in respect of SRPs which
had been discussed at the SRP Sub Committee the previous day and
sought to ensure that the Agency adequately supported the:
- Development and delivery of the RES at sub regional and local
level;
- Alignment of SRPs/URCs
- Development of the NWDA’s Strategic Investment Plan; and
- The greater alignment of public sector funding around sub
regional and regional economic priorities.
79/08 KEY SHORT TERM RISKS TO THE NORTHWEST
ECONOMY
The Board noted the report which provided an initial assessment
of the key risks to the region’s economy for the next
year.
The Board was advised that a list of high rated risks that fell
under NWDA’s scope of responsibility had been established, based on
work carried out by the Agency in conjunction with the GONW
Resilience Team. The Board acknowledged that the list, whilst
extensive, was not exhaustive and that it was subject to change on
an almost daily basis.
The Board also noted that as part of its ongoing relations with
strategic companies, the Agency was in the process of preparing a
confidential risk register of key businesses, which would feed into
the high risk list. More importantly, it would enable the
Agency to prepare for imminent changes to the region’s economy and
consequently develop appropriate policies and programmes to address
the issues arising. Regular updates of the risk register
would take place as part of the RES monitoring process.
The Board requested that the top ten risks be identified and
reported traffic light format to assist in highlighting key issues
to its meeting in November 2006.
79/09 LSC RE-ORGANISATION
The Board noted the proposed changes to the Learning and Skills
Council’s structure, which were a result of the Agenda for Change
document that set out a programme of improvement for LSCs.
The Board also noted a number of other Government documents which
would influence the relationship between RDAs, FE and the LSCs.
The Board received a summary report of proposals contained
within the FE White Paper, which had been presented to RDA Chairs
to inform their discussion with Ministers on the subject and which
outlined the RDAs position and the actions required.
79/10 CHIEF EXECUTIVE’S REPORT
a) Vauxhall Motors
The Board noted the situation at Vauxhall Motors which had recently
received press coverage. The Board was advised that for some
time the Agency had been working with partners to develop
contingency plans and that an operational group comprising
representatives from NWDA, Jobcentre Plus, Business Link, CWEA,
TMP, Mersey and Cheshire LSCs, and GONW had been established to
address any implications. NWDA was taking the lead on this
matter.
The Chancellor of the Exchequer and Secretary of State for Trade
and Industry had visited the Vauxhall site on 17 May, when the
company announced a number of job losses at the factory. The
Chief Executive reported that he had also been in attendance at
that visit.
b) Corporate Plan Update
The Board noted the progress made with the “refreshed” Corporate
Plan document:
- The Regional Assembly had been consulted on the draft document
and a response was expected by the end of May.
- Output targets had been submitted to DTI for final
approval.
The Board also noted that the updated Corporate Plan would be
distributed to SRPs to help them develop their final action
plans. The final draft of the Corporate Plan would be
published in June when it would also be sent to DTI for
information.
The Board was advised that in addition, the Agency was also
preparing a summary Business Plan for 2006/07 which would also be
published in June 2006.
c) Independent Performance Assessment (IPA) – Draft
Report
The Board noted that on 2 May the Agency had
received a first draft of NAO’s Independent Assessment of the
Agency’s performance. The final report would be published
nationally early in June. The Board welcomed the findings
recorded in the draft report which indicated that overall the
Agency was performing strongly.
d) Comprehensive Spending Review (CSR)
The Board noted that as part of CSR2007, HM Treasury would consider
the RDA single programme as part of its review of economic
development funding. Consequently, by early June, RDAs were
required to provide to HMT detailed analysis of their existing
spend and potential for future efficiencies. Discussions with
Government would then take place in respect of future policy
requirements particularly around how support can most effectively
be provided to deliver each region’s RES.
The Board noted that NWDA was chairing the collective RDA input
into the process. Also the NWDA Chief Executive was chairing
the development of a report on the overall impact of RDAs over the
last six years.
e) The Lyons Enquiry
The Board received
a brief summary of the interim findings from Sir Michael Lyons
independent inquiry into the present system of local government
funding, including the reform of council tax. The Board
noted that the interim findings were an interesting development in
advance of the Local Government White Paper which was due to be
published in June 2006. The Board was advised that Sir
Michael Lyons would continue to review the funding and functions of
local government to inform his final report which would be
presented to Ministers in December 2006.
f) The Energy White Paper
The Board
was reminded of the background to the Energy Review which was
launched by the Government in January 2006. The review had
included a period of consultation which had concluded in April
2006; and to which the RDAs had provided a collective
response. The detailed response had addressed all the
questions raised within the review and had highlighted where RDAs
could contribute to UK national goals. It also expressed
support for a new nuclear bid and as a point of particular concern,
had raised the UK’s lack of natural gas storage capacity.
The Board was advised that NWDA had agreed with SEEDA and SWERDA
to produce a joint narrative and analysis which would set out the
three RDAs’ commitment to a balanced energy base that will seek to
address the economic imperatives around security of supply and the
opportunities represented by new technology and innovation in
energy generation.
The Board noted that the NW Energy Council had met on 26 April and
considered the future direction of NWDA’s energy policy and
priority areas for support. The Council would now prepare
recommendations for NWDA.
g) Market Survey of Companies Operating within the
Renewable Energy Sector in England’s Northwest
The
Board noted that Envirolink Northwest had recently published the
results of a survey of the region’s renewable energy sub sector,
which included companies that supplied products and services to the
wind, solar, wave, tidal, hydro, landfill gas and biomass
sectors.
The Board was advised that respondents to the survey were
overwhelmingly optimistic about the future of the sector. (The
majority of businesses included within the sector were SMEs.)
In response to the findings from the survey, Envirolink had
confirmed its objectives for 2006/07 in order to support the
sector, which the Board noted were to:
- Help the region’s companies to supply parts, components and
services into the renewables sector.
- Attract inward investment.
- Assist companies with commercialisation of new
technologies.
h) State of the North West Economy: Long Term
Forecasts and Sub Regional reports
The Board noted that on 5 May the Regional Economic Forecasting
Panel had published its latest reports. The reports had been
agreed by the Panel at its January meeting, however publication had
been delayed due to purdah.
The Board also noted that the panel’s view of the region’s long
term prospects remained the same as previously reported, i.e. that
over the next 20 years the region’s economy was expected to grow
more slowly than that of the UK by a margin of 03 percentage
points.
The Board was advised that included in the May publication was a
sub regional report which provided a compendium of statistics on
the sub regions’ economy.
The Board agreed that the Regional Economic Forecasting Panel
should review the Marketing process for the RES.
i) European Funding: New Assisted Map Post
2006
The Board was advised that in February the UK
Government had issued its consultation document on the new assisted
area map post 2006, which also included consultation on criteria to
be used. The Agency had taken the lead, in conjunction with
the NWRA and Sub Regional Partners, to draw together the region’s
response.
The Board noted that the region’s response argued for continued
coverage within the NW region, based on the spatial targeting in
the RES and the relative needs of the region; as well as a map that
would be informed by regional and local coverage.
j) Restructuring of the UK’s Police
Force
The Chief Executive reported that further to his report in
November, the Home Secretary had now taken advice from Her
Majesty’s Inspectorate of Constabulary and concluded that there
would be only one acceptable option for the restructuring of the NW
Police Forces, which would be as follows:
- Greater Manchester Police “Standalone”
- Cheshire and Merseyside to merge.
- Cumbria and Lancashire to merge.
Board Members were advised that Cheshire Police Authority had
made representation against the decision.
The Board noted that under a joint arrangement with GONW, the
Business Crime and Continuity Survey had been completed, which
would be published later in the month and which sought to plug gaps
in the evidence base across both resilience and business crime
agendas; thus providing valuable data to support the delivery of
the RES. A pre release event had been held on 26
April.
The Board welcomed the Agency’s continuing support of the
emerging private sector led Fraud Forum, which aimed to raise
awareness of fraud and share information and best practice.
k) The Future of Regulation in the Public
Sector
The Board noted that on 3 April the
Audit Commission had published this discussion document, which
intended to contribute to the current debate about the scope and
value of regulation. The Audit Commission recognised that
public service providers were moving from traditional roles (often
as sole deliverers) to become commissioners, market creators and
innovators. Given the changes in the Police Force, the Health
Service and the Local Government review, the Audit Commission
recognised that public services would look different in the future
and therefore regulation would need to be different.
The Board noted that the Agency had been given the opportunity
to comment on the discussion document.
l) Success at Work: Protecting Vulnerable Workers;
Supporting Good Employers
The Board noted that in March, DTI published the Success at Work
document which set out the Government’s measures to continue to
meet the challenges presented by the global economy. The
Board was advised that the Government had an aspiration to achieve
an 80% employment rate (the modern definition of full employment)
which would require new opportunities to be developed for those
people currently excluded from the employment market, as well as
meeting the challenge of an ageing society. The document set
out a strategy to meet such challenges and proposed further
extension of legal entitlements alongside measures to simplify and
clarify laws to make it easier for employers to comply.
The Board welcomed the publication of the document which above
all aimed to support and encourage good practice by employers,
investors and trade unions to create high performing good
workplaces and which clearly fit within the ethos of the RES and
the Agency’s Business Link delivery proposals.
m) Organisational Review
The Board noted the progress made to implement the new
organisational structure and the associated efficiency savings
which would be made as a result. The Board requested regular
updates on progress with the review.
n) Public Health Awards
The Board welcomed the news that the Agency had received an award
in recognition for its contribution to the region’s health agenda,
particularly in respect of the support it had provided to the NHS
to tackle health improvement and reduce health inequalities, which
the Board recognised was a key RES objective.
o) Local Elections 2006 / Changes in
Government
The Board noted the results of the local elections which had taken
place on 4 May and the changes to central Government Ministerial
posts, which the Prime Minister had announced on 5 May.
79/11 FINANCE DIRECTORS REPORT
The Director of Finance and Corporate Resources provided an
update on the Agency’s financial position leading up to year
end. The Board noted that NAO would commence its final audit
on 12 June 2006 and was expected to conclude on 28 June. The Board
requested that all staff involved in the year end procedures be
thanked for their work.
The Board noted the approved delegations for the period 23 March
2006 to 13 April 2006.
79/12 CHAIRMAN’S REPORT
The Chairman reported that:
- The meeting of RDA Chairs with The Prime Minister, Ruth Kelly
and Margaret Hodge which had been very productive. The letter sent
to Government following the meeting would be placed on the intranet
for Board Members to review.
- The BBC move to Greater Manchester was progressing well. The
proposals had been sent to the Director General and would be
considered by the Governors in mid June.
79/13 MINUTES OF THE ENVIRONMENT SUB COMMITTEE HELD
ON 20 APRIL 2006.
The Board noted the minutes of the Environment Sub Committee
Meeting held on 20 April 2006.
The Board were reminded of the plans for World Environment Day
on June 5 2006.
79/14 MINUTES OF THE AUDIT COMMITTEE HELD ON 20
APRIL 2006
The Board noted the minutes of the Audit Committee held on 20
April 2006.
79/15 MINUTES OF THE MARKETING, COMMUNICATIONS AND
TOURISM SUB COMMITTEE HELD ON 20 APRIL 2006.
The Board noted the minutes of the Marketing, Communications and
Tourism Sub Committee held on 20 April 2006.
78/14 MINUTES OF THE HEALTH AND SOCIAL INCLUSION
SUB COMMITTEE MEETING HELD ON 21 APRIL 2006.
The Board noted the minutes of Health and Social Inclusion Sub
Committee held on 21 April 2006.
78/15 DATE AND TIME OF NEXT MEETING