MINUTES OF THE BOARD MEETING HELD ON 20 OCTOBER 2006 AT
RENAISSANCE HOUSE, WARRINGTON
Present:
Bryan Gray (Chairman)
Joe Dwek
Peter Hensman
Pauleen Lane
Dave McCall
John Merry
John Moverley
Vanda Murray
Marie Rimmer
Anil Ruia
Brenda Smith
Mike Storey
Maureen Williams
Also Present:
Bernice Law
Peter White (83/05, 83/06)
Patrick White (83/04)
Ian Haythornthwaite 82/08
Mark Atherton (85/06)
David Higham, GONW
83/00 PRESENTATION: DAVID COATES, CHAIRMAN OF THE
REGIONAL ECONOMIC FORECASTING PANEL
David Coates provided a presentation on the recent findings from
the Regional Economic Forecasting Panel. He started by
reminding Board Members of the approach that the Panel was taking
in respect of its long term economic forecasting and provided
details of the previous forecast, which was that:
• Productivity growth would recover.
• Helped by the cities, a productivity growth gap of 0.1 pp
a year was expected.
• Adding in a workforce growth gap of 0.2 pp a year gave a
GVA growth gap of 0.3 pp a year on average with UK over the next 20
years.
The Panel had subsequently reviewed its forecast in the light of
developments around City Regions and recent GVA performance, the
effects of migration and low productivity in major services and
found that::
• Growth had been faster in London and its surroundings
than in Greater Manchester or the Northwest Corridor.
• City Region factors continued to favour growth prospects
in London ‘super city region’.
• GVA for London and its surroundings was now four times
that of the NW growth corridor and the Wider South East now
generated almost half of English GVA. Given agglomeration and
current weights, the NW faced a huge challenge to grow faster than
England
Consequently, the Panel had chosen not to change its long term
forecast and agreed that:
• Greater Manchester had the best prospects among City
Regions outside the London ‘Super City Region’.
• But not enough prospects relative to London, to narrow
the growth gap identified in 2005; and
• There had been a big shift in the location of choice for
future activity which was needed for significant revision.
83/01 INTRODUCTION AND APOLOGIES FOR
ABSENCE
Apologies were received from Sir Martin Harris, David Brockbank,
Steven Broomhead and Phil Robinson NWRA
83/02 MINUTES OF THE MEETING HELD ON 14 SEPTEMBER
2006 AND MATTERS ARISING
The minutes were approved as a correct record with the addition
of David Higham to the attendance list in place of Keith
Barnes.
83/03 ACTION POINTS FROM PREVIOUS
MEETINGS
The Board noted the progress made on the action points from the
previous meetings.
ITEMS FOR DECISION
83/04 SUB REGIONAL ACTION
PLANS
The Board was reminded that at the end of July the Agency received
from each Sub Regional Partnership (SRP) a Sub Regional Action Plan
that sought to identify the economic development priorities for
each sub region, together with proposed actions to address those
priorities. Since then, the Agency had undertaken a review of
the Action Plans and a summary of each Action Plan had been
presented to the Board. At its September meeting the Sub
Regional Strategic Liaison Committee had discussed the initial
assessment of the Plans. The Sub Committee’s findings were
that:
• SRPs had demonstrated good understanding of their sub
regional economies;
• Economic priorities that address opportunities had been
identified, but there were gaps in how sub regions would tackle
barriers to growth, particularly worklessness;
• Greater prioritisation of proposed interventions was
required. The total requests for additional funding could not be
funded by the Agency and expectations would need to be managed
across the region;
• There were inconsistent references to other public and
private sector funding; and activity that did not require NWDA
funding;
• There was a need for further discussion with SRPs about
developing business support activity through existing plans for the
Regional Service.
The Board endorsed the findings from the Sub Regional Strategic
Liaison Committee. The Board noted and endorsed the content
of a letter that had been sent to SRPs from the NWDA Chief
Executive, which outlined the key messages around the functions of
the Plans and explicitly advised SRPs to look beyond NWDA resources
and seek to align wider public sector funding and private
investment to support delivery of their priorities.
The Board noted the next stage of the process, which would be to
link SRP priorities with the preparation of the Agency’s Strategic
Investment Plan (SIP). This would include an assessment of
the potential for NWDA investment in the high level priorities
identified and not a review of individual projects.
Funding requirements would also be reviewed against the
RES.
The Board was reminded that the SIP would be presented to its
December meeting.
In addition the Board agreed to review SRP capacity at a future
meeting, taking into account the lessons learned from the Action
planning process.
83/05 MERSEY WATERFRONT SUCCESSION
PROGRAMME
The Board was reminded that it approved the Mersey Waterfront
Succession Programme (MWSP) at its meeting in July. The Board
was also reminded that the approval was conditioned to return to
the Board should planning consent be refused for “Brand New
Brighton”, which was a comprehensive redevelopment of the coastal
resort.
The Board was advised that planning consent for Brand New
Brighton had been refused, hence part of the scheme could not
proceed in its original form. However the Board heard that
the remaining elements of MWSP were not affected by this decision
and therefore could deliver the proposed package of environmental
and strategic public access benefits.
The Board noted that the Mersey Waterfront Board (MWB) had
agreed to continue its support for the regeneration of New Brighton
through a revised and phased development proposal. MWB had
also agreed to the principle of an additional package of projects
and had asked NWDA to support this overall approach (within the
approved NWDA resource commitment) and to extend the scheme period
by one year.
The Board noted that the revised scheme had been reappraised
externally and reassurance had been given that an alternative
robust succession programme had emerged.
The Board agreed to continue its commitment to the revised
scheme and reaffirmed its approval of £10.915m for the MWRP
Succession Programme subject to the following:
• That the conditions from the previous Board approval
(made in June 2006) should be carried over.
• A revised expenditure profile extending into 2009/10.
• A full project level appraisal to be undertaken on all
major component elements of the Programme, with NWDA retaining the
right to withdraw funding allocated against any project which does
not subsequently proceed.
• Investigation of the potential of a Quality Assurance
approach and present proposals as appropriate in the Merseyside
SRAP for 2007 onwards.
83/06 CLIMATE CHANGE ACTION PLAN
The Board received a progress report on the development of the
Climate Change Action Plan, which was one of the Transformational
Actions within the RES. The Board noted that consultation
from the Action Plan had begun on 15 June and formally closed on 5
September. An extension for Groups and Partnerships had been agreed
for their responses to be received by the end of September.
The Board was also advised that a number of presentations and
workshops had been held throughout the consultation period and all
this work had been overseen by an Advisory Group which consisted of
a range of stakeholders from across the region.
The Board heard that over 110 responses to the consultation had
been received and analysed. Feedback on the Action Plan had
been overwhelmingly positive.
The Board noted that two dinners for senior leaders had been
arranged in the region to help obtain commitment from key regional
organisations. The first with NW Business Leaders had taken place
on 17 October; and the second, with representatives from the
principal Action Plan Lead Organisations would take place on 23
October.
The Board approved the Action Plan which would be officially
launched on 9 November at the City of Manchester Stadium.
ITEMS FOR INFORMATION
83/07 CHIEF EXECUTIVE’S REPORT
a) Draft Regional Spatial Strategy
(RSS)
The Board was advised that, following the consultation on the draft
RSS, an Examination in Public had been arranged to take place from
31 October to 17 November 2006 and from 9 to 28 January
2007. The Board noted that the EIP would take the form
of a structured discussion, led by a panel that would be appointed
by the Secretary of State. The Panel would explore issues of
major concern, rather than a systematic review of the whole
document.
The Board also noted that once the EIP closed, the Panel would
submit a report, including any recommendations it had on the draft
RSS, to the Secretary of State, who would then publish proposed
changes for a further consultation exercise before the final RSS
was issued.
b) North West Regional Assembly: Scrutiny
Role
The Board was advised that the North West Regional Assembly (NWRA)
in its scrutiny role had decided to examine each of the RES themes
in turn, with particular focus on those areas for which NWDA was
responsible. The Board noted that there would be a three
stage process for each theme, which would start with the
appointment of a consultant; then a Select Committee Hearing; and
finally a report would be issued, which would include
recommendations to which the Agency would be invited to
respond.
The Board was advised that the activity, as described above, had
already taken place for the Business theme; and that the Scrutiny
Group had considered the Agency’s response at its meeting on 11
September. The Board was also advised that the consultants
for the other three themes had been appointed on 9 August and noted
the timetable for the rest of the process.
The Board welcomed the fact that the Agency would continue to
work with the Assembly to ensure that the process was as helpful as
possible and that the consultants input was used to identify and
study areas where there were gaps in the economy.
c) Liverpool Delivery
Vehicles
The Board noted that a formal consultation would begin later in the
month as part of a review of the current delivery vehicles that
currently existed in Liverpool. The Agency would respond to
the consultation.
d) Compulsory Purchase Order (CPO): Edge Lane West,
Liverpool
Board Members noted that the High Court had upheld a challenge to
the Edge Lane West CPO which had been brought forward by English
Partnerships. The Board was advised that the CPO would enable
the full clearance of a substantial tract of land which contained
370 properties, of which 240 were already in public ownership as
part of the Housing Market Renewal proposal.
The Board noted that the Judge had asked the successful
challenger and English Partnerships/ Liverpool City Council to meet
and agree away forward.
The Board was reminded that Liverpool Land Development Company
was managing the project on behalf of the public sector.
e) Derwent
Forest
The Board was reminded that at its meetings on 7 July 2005 and 15
September 2005 the Board discussed and agreed in principle to the
proposal to invest in the former RNAD site at Broughton Moor,
Derwent Forest to undertake remediation works. The Board was
also reminded that it had remitted Cumbria Vision to seek the full
engagement of the private sector in any potential end use. In
his report the Chief Executive provided confirmation that Cumbria
Vision had sought the views of 140 private sector partners, from
which there was evidence of developer / investor interest in the
site, subject to clarity on planning issues from Allerdale Borough
Council. The Chief Executive was also able to confirm that he
had met the Leader and Chief Executive of the Council and that the
Council was fully committed to the scheme, envisaging a mixed use
development of leisure and residences.
The Board welcomed the fact that the Agency would now go out to
tender to formally determine the level of private sector interest
in the knowledge of the planning position and whether any public
funds would be required. The Board agreed with the Chief
Executive’s proposals that no decision would be made regarding the
private sector until there was clarity following the tendering
process; and that Cumbria Vision would manage the process.
f) Modernising Rural Delivery – New Responsibilities
for RDAs
The Board noted that on 1 October the Secretary of State for the
Environment, Food and Rural Affairs transferred to RDAs the
responsibility the responsibility for the delivery of the legacy
Project Based Schemes that were funded under the rural Development
Programme; as well as the control of the delivery of the socio –
economic aspects of the new Rural Development Programme for England
(RDPE), which the Board heard was worth a minimum of £35m per annum
nationally. The Board was advised that the RDPE, which fell
under the European Rural Development Regulation would start at some
point in 2007 (once the European Commission had approved funding)
and would run until 2013.
The Board noted the detail of the funding allocations and staff
resource implications in respect of the RDPE and that NWDA had lead
responsibility within the RDA network for rural delivery. The
Board welcomed the fact that the RDAs were seeking to manage the
socio-economic funds through an investment led strategic approach
based on a menu of measures; and noted that each RDA was working
with its regional partners in Natural England and the Forestry
Commission to produce an implementation plan. The Board
noted that in the North West it was envisaged that a significant
amount of the implementation would be undertaken by sub regional
partners.
g) Review of UK Assisted
Areas
The Board noted that on 10 October Government had published its
response to the second stage of the Public Consultation process to
review the UK Assisted Areas, which included the Assisted Areas map
for the period 2007 to 2013 being sent to the European Commission
for approval. The Board was advised that once approved, the
new map would be implemented into UK legislation and take effect
from January 2007.
The Board noted that the Agency had worked with partners to
ensure that the most relevant wards were covered and based on the
submission from the North West, DTI had been persuaded to include
16 new wards in the region which reflected the changing economy.
East Lancashire was also to be included, given that it had been
excluded from the previous map. The Board was advised that
the revised map provided the North West with a small population
gain of 17,800.
h) The Mersey Partnership Annual Report: Leading
Connections
The Board noted that at the end of September, The Mersey
Partnership had published its Annual Report for 2005/06 which
highlighted the range of events and partner activities that TMP had
facilitated during the year as well as its key achievements.
The Board also noted that TMP membership was at its highest
level (455 organisations) and that now it had been designated as
the SRP for Merseyside, the Partnership had extended its
responsibilities across the sub region’s six local
authorities. The Partnership was working hard to ensure that
it became an effective SRP, with continuing support from all its
stakeholders.
i) Streamlining LSC Accountability:
Update
The Board received an update on developments:
• The new LSC Regional Board had been established. The role
and membership of the Regional Boards would be strengthened,
particularly in respect of employer representation. Regional Boards
would be strategic committees for each region and would become
formal decision making bodies for the LSC nationally.
• The national LSC had agreed proposals to streamline its
accountability structures, whilst at the same time increasing
engagement with key stakeholders, especially employers and
learners.
• Subject to amendment to the LSC Act, the 47 local LSCs
would be abolished. (The Board was reminded that there were five in
the North West).
The Chief Executive advised that at the LSC Regional Board
meeting on 21 September, he had proposed that employer driven Sub
Regional Skills Boards should be established to align with the
SRPs, the RES and the Regional LSC Board. The Board was
advised that the proposal was accepted and a joint LSC/ RDA policy
paper would be produced. The Board was also advised that the
discussions were taking place around the relationship between the
new Regional LSC Board and that of the Regional Skills Partnership,
and that the Chief Executive was working with DfES and the LSC to
develop a policy approach to this issue for the north West.
j) Environment Agency Annual Report: Spotlight on
Business Environmental
Performance
The Board noted that on 1 September the Environment Agency (EA)
published its annual report on good and bad environmental behaviour
by businesses in England and Wales. The Board was advised
that the report named and shamed environmental companies (of which
there were eight in the North West) and considered the impact that
each sector had on the environment as well as the extent to which
EA regulated them.
The Board also noted from the summary of the report, the cost to
companies in respect of fines, prison sentences and other penalties
as a result of non compliance; and that the regulations applied by
EA appeared to be working. The Board welcomed the fact that
EA was modernising the way in which it regulated companies through
a more supportive approach, offering advice, targeting high risk
businesses and reducing financial burden where possible.
k) The Agenda for Growth: North West Forestry
Action Plan 2006 – 2009
The Board was advised that the Regional Forestry Framework for
England’s Northwest: The Agenda for Growth, was published in 2005
following extensive consultation within and beyond the forestry and
timber sectors. The Board noted that the Framework aimed to
shape the woodland and forestry sector in the region for the next
twenty years; and that to ensure deliver an action plan for the
three year period 2006 to 2009 had been published. Delivery of the
Regional Forestry Framework was highlighted as Action 117 within
the RES.
The Board was advised that the action plan was to be delivered
by partners across the region and that delivery was being
championed by the Regional Forestry Framework Delivery Group, (on
which the Agency was represented). The Board welcomed
the approach within the action plan, whereby potential resources
had been identified for each action against specific financial
years and lead bodies had been identified to take forward
delivery. The Agency had been identified as the lead body for
six key actions and was also a supporting partner for seven
others.
l) The Views of Business Towards the European
Union: Report by Chambers of Commerce North
West
The Board was advised that at the end of August, Chambers of
Commerce North West published a report on a survey it had conducted
with over 560 businesses in the region to build up a picture of
business attitudes towards the European Union. The Board
noted the main conclusions which were that:
• The majority of businesses that responded to the survey
considered the UK’s membership of the EU had generally done more
good than harm. However EU Employment, Health and Safety and
Environmental legislation was seen to be having a significant
impact upon day to day business operations. Small businesses, in
particular, felt they were ill informed about new and forthcoming
legislation.
• The EU was the most important trading market for North
West businesses, followed by Asia Pacific and North America.
• Businesses were increasingly looking to recruit migrant
labour from other EU member states to meet skills gaps in the
workforce.
The Board noted that the Chamber would use the survey results as
an evidence base for future policy work and intended to promote the
results extensively across the region over coming months.
m) Vital Signs
2005
The Board was reminded that the Government Office North West: Vital
Signs 2005 document (July 2005) provided regional stakeholders with
a picture of the region’s performance against an agreed set of
indicators. The Board received extracts from the document
which provided a detailed summary of changes in vital signs from
2004 to 2005 and trends; as well as a summary of the short term and
long term performance profiles.
n) Labour Party
Conference
The Board noted that the Agency had held a number of successful
events and meetings at the Labour Party Conference, (held in
Manchester in September) which sought to promote the region; the
Agency and its policies; and its Lead Role responsibility for
Skills and Work.
o) NWDA Annual General Meeting 4 October
2006
The Board noted that six hundred delegates from the public, private
and voluntary sector had attended the Agency’s AGM at the
Manchester International Conference Centre on 4 October. Initial
feedback had been positive with 89% of delegates rating the event
as very good or good.
p) Review of Corporate
Governance
The Board noted that the Audit Committee, at its meeting on 31
August, had received the findings from the Internal Auditors review
of the Agency’s Corporate Governance procedures; and subsequently
had raised a number of issues of clarification with the
Board. Board Members were advised that their Extranet now
contained a number of Corporate Governance documents for ease of
reference.
q) Secondment
The Board were notified that with effect from 1 December, Nick
Gerrard, Head of Strategy and Policy, was moving on secondment to
Manchester Enterprises as Deputy Chief Executive to Mike Emmerich,
the newly appointed Chief Executive. His responsibilities
would include managing the strategy and implementation
functions.
The Board noted this and felt it was an excellent opportunity
both for the Agency and Manchester Enterprises and Nick as it would
enable us to foster closer working relationships with one of our
sub regional partnerships.
83/08 FINANCE DIRECTOR’S REPORT
The Board noted the Agency’s financial position for the period to
31 August 2006. The Board was advised that the Agency had
entered into the half year review and budget setting stage and that
the final budget for 2007/08 would be presented to the December
Board.
The Finance Director also reported on a number of other
issues:
• The Property
PPP
The Board was advised of the progress made to implement the
Agency’s Property PPP; and that Ashtenne Industrial Fund had been
selected as the preferred bidder. It was expected that the
PPP would become operational from 1 December 2006.
• Coalfields
DTI had clarified its position in respect of Coalfields
expenditure; and following the Board’s decision that Chairman’s
action could be applied in respect of Bickershaw colliery, work
would now begin in conjunction with English Partnerships, on the
remediation of the site.
• Efficiency Plan Performance Report Quarter 1
2006/07
The Board noted the report.
• Train to
Gain
The Board approved the Project Review Group recommendation to
approve the Train to Gain project, which was to design and
establish the new Train to Gain service which would be delivered by
the five Business Link Service providers from 1 August 2006 to 31
March 2006. The Board noted that whilst the value of the
project was above the Chief Executive’s financial delegation limit,
the project would in fact generate income greater than the approved
expenditure and therefore there was no financial impact to the
Agency.
The Board noted the delegations for the period 11 August 2006 to
18 September 2006.
83/09 CHAIRMAN’S REPORT
The Chairman reported on the following:-
• A very encouraging meeting with Ruth Kelly where she gave
her departmental priorities which were citizenship, place, economic
development and climate change. She supported the primacy of
the RES and supported Regions and took on board the need to align
the timescales of the RSS and the RES.
The Local Government White Paper, expected in late
November was hailed as being directional and not prescriptive.
• A meeting with RDA Chairs and David Milliband on the 3rd
sector.
• A meeting with Chris Banks on LSC changes.
• A meeting with Brian Bender at DTI regarding CSR and RDA
relationships which was also attended by Vanda Murray.
• A very encouraging meeting with Richard Haythornthwaite,
Chair of the Better Regeneration Commission.
• An update on Media City UK.
83/10 MINUTES FROM THE AUDIT COMMITTEE HELD ON 31
AUGUST 2006
The Board noted the minutes from the Audit Committee held on 31
August 2006.
83/11 MINUTES FROM THE HEALTH AND SOCIAL INCLUSION SUB
COMMITTEE HELD ON 6 SEPTEMBER 2006.
The Board noted the minutes from the meeting of the Health and
Social Inclusion Sub-Committee held on 6 September 2006.
83/12 MINUTES FROM THE ENTERPRISE, INNOVATION AND
SKILLS SUB COMMITTEE HELD ON 13 SEPTEMBER 2006.
The Board noted the minutes from the meeting of the Enterprise,
Innovation and Skills Sub Committee held on 13 September
2006.
83/13 NOTES FROM THE NWDA ADVISORY GROUP MEETING HELD
ON 13 SEPTEMBER 2006.
The Board noted the minutes from the meeting of the NWDA Advisory
Group held on 13 September 2006.
83/14 MINUTES FROM THE REMUNERATION AND APPOINTMENTS
COMMITTEE HELD ON 13 SEPTEMBER 2006
The Board noted the minutes from the meeting of the Remuneration
and Appointments Committee held on 13 September.
83/15 MINUTES FROM THE SUB REGIONAL STRATEGIC LIAISON
COMMITTEE HELD ON 14 SEPTEMBER 2006
The Board noted the minutes from the meeting of the Sub Regional
Strategic Liaison Committee held on 14 September 2006..
83/16 MINUTES FROM THE PROPERTY STRATEGY TASK AND
FINISH GROUP HELD ON 15 SEPTEMBER 2006
The Board noted the minutes from the meeting of the Property
Strategy and Finish Group held on 15 September 2006.
83/17 DATE AND TIME OF NEXT MEETING
The next meeting will take place on Thursday 16 November 2006 at
Renaissance House, Warrington.