MINUTES OF THE BOARD MEETING HELD ON 18 JANUARY 2007 AT RENAISSANCE HOUSE, WARRINGTON

Present: 

Bryan Gray (Chairman)
David Brockbank
Joe Dwek
Martin Harris
Peter Hensman
Dave McCall
John Moverley
Vanda Murray
Marie Rimmer
Anil Ruia
Brenda Smith
Maureen Williams

Also Present: 

Steven Broomhead, Chief Executive
Bernice Law, Secretary
Ian Haythornthwaite (86/08)
Mark Hughes (86/04, 86/05)
Patrick White (86/00, 86/06)
Peter White (86/00)
Keith Barnes, GONW
Phil Robinson, NWRA

86/00 PRESENTATION: RENEW BEATRICE FRAENKEL AND PHIL BARTON

Beatrice Fraenkel, Chair of RENEW and Phil Barton, Director, provided a presentation on the progress the organisation had made since its inception in 2005.  The Board noted the purpose of RENEW, which was a centre of excellence that aimed to raise the quality of regeneration practice in the region.

RENEW supports the RES Quality of Life objectives to:

• Implement the sustainable communities plan and develop the skills of regeneration professionals and leaders to support sustainable communities.
• Understand the strong economic case for and promote good design, ensuring project developers and managers provide strong client leadership.

The Board was advised that the demand for learning and sharing best practice in regeneration was extensive:

• 4,500 attendees had taken part in RENEW organised events during the year.
• 900 practitioners have been trained.
• 36,000 visits had been made to the RENEW website.

The Board noted the positive feedback that RENEW had received from external partners and congratulated Beatrice and Phil on their achievements so far.

86/01 INTRODUCTION AND APOLOGIES FOR ABSENCE

Apologies were received from Pauleen Lane, John Merry and Mike Storey.

86/02 MINUTES OF THE MEETING HELD ON 14 DECEMBER 2006 AND MATTERS ARISING

The minutes were approved as a correct record.

86/03 ACTION POINTS FROM PREVIOUS MEETINGS 
 
The Board noted the progress made on the action points from the previous meetings.

86/04 INTERNATIONALISATION STRATEGY
 
The Board received a detailed report on the Agency’s proposed international action plans and associated resource implications. The Board was advised that the action plan had been developed to prioritise efforts to:

• Develop the six internationally competitive sectors as outlined in the RES.
• Maximise the international potential of the science, R&D and HEI base; and
• Target strategically important countries for inward investment and trade.

The Board noted that the action plan would be supported by a co-ordinated programme to promote the region’s international connections.

The Board also noted the Agency’s close working relationship with UKTI and that under a dual key arrangement its North West team operated as NWDA’s international trade arm.   In addition, nationally, NWDA sits on the Trade and Investment Partnership Group and is closely involved with many of the workstreams that have emanated from UKTI’s national strategy.

The Board agreed to the further development of the Internationalisation Action Plan.  A further report would be presented to the April Board.
 
86/05 AIR SERVICE DEVELOPMENT FUND (ASDF) ALTERNATIVE MEASURES PROGRAMME

John Moverley and Brenda Smith declared an interest in this item.

The Board was advised that following an assessment of the EC Commission’s draft guidelines in respect of the development and implementation of a Route Development Fund for Air Services, which proved to be restrictive in terms of the region’s needs, the NWDA’s Air Services Development Fund Board (ASDF) had agreed a new alternative measures strategy to provide direct support for the regions four main airports.  The Board noted that the strategy would meet regional connectivity objectives through a direct subsidy approach without State Aid restrictions.  The programme of alternative measures would require NWDA investment and private sector investment.
 
The Board noted the ongoing work with Blackpool, Liverpool, Manchester and Carlisle airports; and that the expected outcomes in return for the investment would include:

• Increased passenger numbers.
• Attraction of new international carriers and routes.
• Opportunities for unbound tourism and business.
• Growth of the airport with new job opportunities in the region.

The Board approved NWDA investment in the alternative measures programme as recommended by the ASDF Board, subject to each individual project being evaluated in line with the Agency’s normal practice.

86/06 EVALUATION POLICY

The Board noted that the RDAs nationally had recently completed an Impact Evaluation Report as part of their contribution to CSR2007; and that there was a clear requirement from Ministers that RDAs should continue to strengthen their approach to evaluation.  The Board was advised that within this context NWDA had developed an evaluation policy, which included a supporting process and guidance to ensure that:

• Investment decisions are informed by evaluation of past activity.
• The Agency is able to show how its activity has achieved things that would otherwise not have occurred as well as the net cost and impact.
• The Agency complies with the HM Treasury’s and DTI’s requirements for RDA evaluation.

The Board received a summary of the findings from two pilot evaluations which the Agency had commissioned in respect of Rural Renaissance and the Manufacturing Action Plan the results of which had been used to inform the Agency’s overall evaluation policy. 

The Board approved the Agency’s Evaluation policy for implementation.

86/07 CHIEF EXECUTIVE’S REPORT

a) Northwest Regional Accounts (GVA)
The Chief Executive reported that the Office for National Statistics had recently published the Northwest Regional Accounts which included the latest figures for the region’s Gross Value Added (GVA).  The Board noted that:

• In line with all other regions the Northwest had experienced a decline in its rate of GVA growth in 2005 to stand at 3.7%.  This figure was marginally below UK growth of 3.9%.
• The region’s growth in GVA per head was 3.4%, which was marginally above the UK rate of 3.3%.
• In 2005 the Northwest performance in terms of GVA, relative to other regions remained stable; ranked seventh of the nine UK regions
• Sub regionally wide disparities remained in terms of GVA per head; Cheshire having GVA per head which was 7% above the UK average in 2004; and Merseyside and Cumbria respectively 27% and 24% below.
• Sub Regional GVA per head growth rates between 2000 and 2004 indicated that Cheshire’s relative performance was significantly below other areas.

b) Cumbria Economy / Cumbria Vision    
The Board was reminded that a key priority within the Regional Economic Strategy was to improve the economic performance of Cumbria.  The Board noted that the Northwest Regional Accounts had indicated that there were some signs of recovery in Cumbria; and that in particular the Sub Region’s 2003/04 growth rate (6.5%) was faster than the UK (5.9%) and the eighth fastest of any sub region in the UK; and, over the last year, it was the fastest growing Sub Region in the North West.

The Board acknowledged that the new economic focus provided by Cumbria Vision had helped to contribute to this positive picture for Cumbria; and that the emerging West Cumbria Strategic Action Plan, as well as the more focused economically prioritised West Lakes Renaissance URC Business Plan would significantly contribute to narrowing the GVA gap between Cumbria and the region / UK.

The Chief Executive advised the Board that from 1 February 2007 Richard Greenwood, currently the Area Director of Gloucester LSC would take up post as Chief Executive of Cumbria Vision.  Ian Haythornthwaite would then resume his full time duties as NWDA Executive Director Finance and Corporate Resources.

c) Business Start Up Survival    
The Board was reminded that the RES indicated that the region needed another 38,000 businesses to enable it to mirror national levels of business density; and that the region was in the bottom third of the UK regions for most of the start up and survival indicators.  The Board noted that in line with RES Transformational Action 3, the Agency had researched, consulted and developed an approach to provide intensive start up support to underperforming areas and hard to reach client groups. The Board noted that the approach would run in parallel to the universal service that Business Link would provide.

The Board was advised that the Enterprise, Innovation and Skills Sub Committee had reviewed the proposed approach on several occasions and a procurement exercise was now underway.

d) Anticipated Legislation in 2007   
The Board noted the summary list of Government legislation (relevant to RDA business) that was expected to be processed during 2007.

e) Departmental Capability Reviews   
The Board noted the summary results of the Departmental Capability Reviews which had been conducted on DTI, DCLG, DfES and DWP (i.e. the main departments with which RDAs work most closely).  The Board was advised that the reviews sought to assess how well equipped departments were to meet their delivery challenges. Each review assessed capability of each Government Department’s senior leadership in three areas: Leadership, Strategy and Delivery.  The reviews were conducted by a Capability Reviews team that was based in the Cabinet Office and included external reviewers from the private sector, the wider public sector and board level members of Government Departments.

f) DEFRA’s Simplification Plan 2006 – Maximising Outcomes Minimising Burdens  
The Board noted that on 11 December the Department of Environment, Food and Rural Affairs (DEFRA) had launched its Simplification Plan 2006.  Entitled Maximising Outcomes, Minimising Burdens the Plan confirmed DEFRA’s commitment to ensure that it continues to improve the way it regulates business. Specifically, the Department had committed that by 2010 it would have reduced its administrative burdens by 25%. 

Key proposals within the Plan included:

• A major programme of cultural change within DEFRA that involved a range of internal challenge processes and quality assurance mechanisms to ensure that new regulations were fit for purpose;
• A move towards risk based regulation; and
• Improvements to the way in which regulations were enforced. 

g) City Business Plan – Merseyside    
The Board noted that the Agency was continuing to support the Merseyside City Business Plan which was being led by Liverpool City Council.  The Merseyside Partners presented their initial business case to Ruth Kelly, Secretary of State for Communities and Local Government on 28 November, to which a response had been received that confirmed that more work was needed to further develop the Plan.  The Board welcomed the fact that the Agency would continue to provide support towards the development of the Plan and noted that the NWDA Chairman and Chief Executive would meet Local Authorities’ Leaders and Private Sector representatives to discuss how the Agency could help with the process.

h) Local Government White Paper   
The Board noted that since the publication on 26 October 2006 of the Local Government White Paper, Strong and Prosperous Communities, three developments had occurred:

• On 6 December 2006 Government announced an extension to the Lyons Inquiry into the role, function and funding of local government to consider the implications from the results of the Eddington Transport Study,  the Barker Review of Land Use and the Leitch Review of Skills.  The RDAs would provide a collective response by 19 January 2007.
• Before Christmas DCLG had published its consultation on City Development Companies for cities and city regions. A joint RDA response would be provided by 7 March 2007.
• Proposals were being developed by a number of the region’s Local Authorities on how they would establish themselves as Unitary Local Authorities.

i) Development of Unitary Local Authority      
The Chief Executive provided details of those Local Authorities that were developing proposals to apply for Unitary status.  The Board acknowledged the Agency’s position which was to support the principle of Unitary Local Government given its:

• Economic focus/ benefits.
• Greater cohesion in economic, social and community leadership; and 
• Simplification of decision making structures.

The Board noted the timetable for the application process for which proposals were required to be with Government by 25 January 2007.   The intention was that Unitary Local Authorities would be in place by April 2009.

j) Adult Learning Inspectorate Annual Report 2006     
The Board was advised that on 12 December 2006 David Sherlock, the Chief Inspector of Adult Learning published his Annual Report which had confirmed that standards of publicly funded education and training for adults in England had improved dramatically.  However the Board noted that he had also warned that the progress made over the last five years could reverse if constant changes to the infrastructure continued.  The Board noted the key findings from the Annual Report which were as follows:

• Standards had improved in all areas of learning and skills provision.
• Nearly 90% of training providers passed inspection compared to 60% five years ago.
• Programmes for the most disadvantaged people in society had shown the greatest improvement.
• Despite better standards of training, success rates for learners was still lagging behind and in some areas of work based learning more than 50% of learners failed to complete their apprenticeships.

k) NWDA Business Planning Process   
The Board noted that the Agency had started the production process for its Business Plan 2007/08.  The intention was that the Plan would be published in April 2007. 

86/08 FINANCE DIRECTOR’S REPORT
 
The Board noted the Agency’s financial position for the period 1 April 2006 to 30 November 2006.

The Board also noted that the Agency’s property joint venture completed on 8 December 2006.  The Public Private Partnership was with Ashtenne Industrial Fund and the company, which had extensive experience of managing properties in the UK would now implement the operational phase of the portfolio.

The Board asked the Director of Finance and Corporate Resources to congratulate all involved in the work relating to the PPP.

 The Board received the Agency’s Efficiency Savings report for the second quarter of the financial year 2006/07. 

The Board noted the Delegations for the period 18 November 2006 to 8 December 2006 and approved Single Tender Actions in respect of:

• Liverpool City Council for the European Senior Amateur Boxing Championships.
• Tate Liverpool for the Turner Prize 2007.

86/09 CHAIRMAN’S REPORT

The Chairman reported on the following:

Media City: UK      The Board noted with pleasure the decision by the BBC to move to Salford, which had been announced that day; and asked that all involved so far should be congratulated.  All legal discussions were expected to conclude by the end of March 2007.

Burnley    Good progress was being made with the development of the FE/HE/Enterprise Centre at Burnley.  It had been the subject of discussion when Lord Sainsbury had visited the region.  Progress was also being made with Burnley Vision: a Community Strategy had recently been launched and the Prince’s Charities had agreed to assist the Agency in increasing involvement with a range of initiatives in the town.

University of Cumbria     The new name for the University had been announced. The Chairman and Deputy Chairman would continue to regularly meet the Vice Chancellor to ensure progress.

Cumbria    A number of high level meetings had taken place between the Agency and different Cumbria representatives in respect of the West Cumbria Masterplan; Westlakes Renaissance and Carlisle’s City Region Business Plan.

The visit by Margaret Hodge would take place on 25/26 January 2007.

The visit by David Milliband and Prince Charles to Cumbria on 5 February 2007.

The Board also agreed to the proposed changes (as from 1 February 2007) to the constituency membership of each of the Board Sub Committees, which included;

• The appointment of Joe Dwek and Dave McCall for a second term of office on the Agency’s Audit Committee.
• Vanda Murray as Chair of the Enterprise, Innovation and Skills Sub Committee.
• Maureen Williams as Deputy Chair of the Infrastructure Sub Committee.
• Marie Rimmer to become a member of the Health and Social Inclusion Sub Committee.

The Board also agreed that from 1 April 2007 Peter Hensman would replace Marie Rimmer as Chair of the Audit Committee.

86/10 COMPREHENSIVE SPENDING REVIEW 2007 UPDATE 
 
The Board received a presentation from Patrick White, Director of Policy on the Comprehensive Spending Review 2007:  He outlined the timetable for the process, which began in March 2006.  The Board noted the key elements, and contributing factors to CSR:

• The Sub National Review which would take place in March 2007.
• All Government Departments, including RDAs required to provide efficiency plans. RDAs were required to submit by the end of January 2007.
• Discussions ongoing regarding the remit of RDAs; specifically in respect of their role in Enterprise and Regeneration.
• Recognition of RDAs strategic role; stronger RES’s, stronger contracts for outcomes.

The Board noted the opportunities that the CSR process provided:

• Review of targets.
• Review of freedoms re CPRG / Approvals.
• Development of IPA.

The Board also noted the implications for NWDA:

• A good model for Government.
• Opportunity to continue to strengthen economic and policy focus.
• Strong delivery of Business Support and Innovation.
• Ministerial sign off of the RES – stronger challenge.
• Developing relationships with SRPs/ Cities.
• Evaluation / Monitoring.

86/11 MINUTES FROM THE SUB REGIONAL LIAISON COMMITTEE HELD ON 14  DECEMBER 2006

The minutes were noted.
 
86/12 MINUTES FROM THE ENTERPRISE, INNOVATION AND SKILLS SUB COMMITTEE HELD ON 14 DECEMBER 2006

The minutes were noted.

86/13 MINUTES FROM THE INFRASTRUCTURE SUB COMMITTEE HELD ON 21 DECEMBER 2006

The minutes were noted.
 
86/14 DATE AND TIME OF NEXT MEETING
 
The next meeting will be held at 12.30pm on Thursday 15 February 2007 at NWDA Headquarters, Renaissance House, Warrington.