MINUTES OF THE BOARD MEETING HELD ON 12 JULY 2007 AT
RENAISSANCE HOUSE, WARRINGTON
Present:
Bryan Gray (Chair)
Sir Martin Harris
David Brockbank
Joe Dwek
Peter Hensman
Pauleen Lane
John Moverley
Marie Rimmer
Anil Ruia
Mike Storey
Maureen Williams
Also Present:
Steven Broomhead, Chief Executive
Bernice Law, Deputy Chief Executive/ Secretary
Ian Haythornthwaite (92/04, 92/05, 92/08)
Patrick White (92/06)
David Higham (GONW)
Phil Robinson (NWRA)
92/00 PRESENTATION: SIR DAVID HENSHAW, CHAIRMAN AND
MIKE FARRAR, CHIEF EXECUTIVE, NW NHS
The presentation outlined the Strategic Health Authority’s (SHA)
priorities to improve the quality of life and life expectancy of
citizens and to erode health inequalities in the region.
Discussion took place on the economic effects of poor health and
how the Agency and the SHA could work together to deliver the
health and regeneration elements of the RES.
The Board was advised that NW Health procurement was worth
around £10.96bn per annum; and noted the management issues in
relation to the SHA, PCT’s and the NHS generally.
It was agreed that:
- Increased joint dialogue would take place to move forward joint
issues, beginning with a “stock take” of what could be done
differently.
- Where possible, the Agency would involve the SHA in R&D
discussions and other related issues with health links.
92/01 INTRODUCTION, APOLOGIES FOR ABSENCE AND
DECLARATIONS OF INTEREST
Apologies had been received from Dave McCall, John Merry, Vanda
Murray and Brenda Smith.
Anil Ruia and Martin Harris declared an interest in respect of
Manchester Knowledge Capital, item 92/08.
92/02 MINUTES OF THE MEETING HELD ON 20 JUNE 2007
AND MATTERS ARISING
The minutes were approved as a correct record.
92/03 ACTION POINTS FROM PREVIOUS
MEETINGS
The Board noted the progress made on the action points from
previous meetings.
92/04 ROCHDALE KINGSWAY – REVISED
INVESTMENT
The Board was reminded that the development of the Rochdale
Kingsway Business Park was being carried out by a Joint Venture
between Wilson Bowden Developments (WBD) and the Agency.
The Board was also reminded that at its meeting on 16 November
2007 it had approved extended gross authorised expenditure on
Rochdale Kingsway. The request for the increase in the
expenditure limit had not been submitted to DTI/HM Treasury,
pending finalisation of the external project re-appraisal. The
re-appraisal was delayed whilst the cost and value of the project
to the Agency’s development partner was clarified, but this had not
affected the Agency’s own cost position.
The Board noted that a detailed project financial review had
been conducted, and a revised forecast for the overall project had
been developed. As part of this process some issues were identified
in the interpretation and calculation of the write down costs,
which in turn had impacted on the Agency’s costs. Therefore Board
approval for the increase was required.
The Board approved the increase in the gross expenditure limit
for Rochdale Kingsway subject to DTI/HM Treasury approval.
92/05 ANNUAL REPORT AND FINANCIAL STATEMENTS
2006/07
The Board was advised that for the financial year 2006/07 the
Agency had managed its expenditure within 0.06% of its
budget.
The Board noted that following its end of year audit, National
Audit Office had been pleased to report that no fundamental issues
were identified and that no material weaknesses in the accounting
and internal control systems had been brought to the attention of
the Audit Committee, which had reviewed the financial statements at
its meeting on 11 July 2007.
The Board approved the Agency’s Annual Report and Financial
Statements 2006/07.
92/06 ANNUAL PERFORMANCE MONITORING
REPORT
The Board was reminded that each RDA was required to provide
an Annual Performance Monitoring report to show achievement against
corporate objectives. The Board received the draft report for
the 2006/07 operational year, and was advised that the Agency had
achieved all its key outputs for the financial year.
The Board noted the key achievements as highlighted within the
report.
- The launch of new Business Link Service.
- Securing the BBC’s confirmation of their move North into
mediacity:uk, and kick-starting the first purpose built media city
development in the UK.
- The completion of Daresbury Innovation Centre and the Cockcroft
Institute.
- The opening of the National Bio-manufacturing Centre in
Liverpool.
- The opening of the £25 million Core Technology Facility in
Manchester.
- The launch of the Northwest Science Strategy
- The successful implementation of the change agenda and Agency
re-organisation leading to better operational
focus.
- The launch of revamped evaluation strategy and framework in
line with the RDA Impact Report and Impact Evaluation
Framework.
The Board approved the Annual Performance Monitoring report for
submission to Ministers, subject to the detailed comments, as
provided by Board Members, being addressed.
92/07 CHIEF EXECUTIVE’S REPORT
a) National Waste
Strategy
The Board noted that in May 2007, Government had published the
“Waste Strategy for England”’ which aimed to:
- Decouple waste growth in all sectors from economic
growth.
- Meet and exceed Landfill Directive diversion targets.
- Increase diversion from landfill of non-municipal waste.
- Secure investment in infrastructure needed to divert waste from
landfill.
- Get the most environmental benefit from that investment through
increased recycling of resources and energy.
The Board was advised that the Strategy specifically identified
RDAs as having a key role to improve resource efficiency in
businesses and encouraging the uptake of environmental
technologies. The Board noted that RDAs already made a valuable
contribution towards the strategic regional perspective on
integrated resource management in regions through the BREW
programme. However, in future, Government wanted to ensure
that this role was carried out strategically in each region and was
keen to ensure that the RDAs’ role in resource efficiency and waste
management was promoted more strongly. The Board also
noted the specific activities that RDAs would undertake as part of
their role in this regard.
b) Improving Performance - A Review of Regional Development
Agencies’ - Report By The Engineering Employers
Federation The Board noted that the Engineering
Employers Federation (EEF) had recently conducted a review of RDAs,
which set out what it believed the RDAs’ role should be. It
had been compiled by analysing existing data on regional economic
performance and through discussions with EEF regional
members. The EEF also provided its own assessment of how well
it thought RDAs had performed from a business perspective.
The Board noted the specific recommendations which EEF had made,
most of which were already in place or currently being
implemented. The Board was advised that collectively RDAs had
welcomed EEF’s engagement and interest.
c) City Challenge For World Class
Education
The Board noted that the Secretary for State for Education and
Skills had recently announced that following the success of the
London Challenge programme, similar programmes would be introduced
in the Black Country and Greater Manchester. The Board was
advised that the London Challenge was set up in 2003 as a five year
programme to turn round London’s major school problems and had been
successful.
The Board noted that the new programme would be known as the
City Challenge programme and would run for three years. It
would be tailored to local needs using some of the proven
approaches adopted in London over the last five years; and would be
launched in 2008. Delivery would be through partnership
working between Government Office, local authorities, schools and
other educational stakeholders.
For Greater Manchester, the main outcomes to be achieved by 2011
would be a sharp drop in underperforming schools, particularly
focusing on English and Maths; more outstanding schools; and
significant improvements in educational outcomes for disadvantaged
children.
d) Submission to the Sub-National Review Of
Economic Development and Regeneration
The Chief Executive reminded the Board that during 2006 he had
been interviewed by the Audit Commission as part of its study of
regional governance in England. The findings from the study
had been published in March 2007 as a submission to the Treasury –
led Sub National Review of Economic Development and Regeneration,
which in turn would feed into the 2007 Comprehensive Spending
Review.
The Board noted that the Audit Commission’s submission had
suggested that the future framework for regional governance
should:
- Be sufficiently flexible to recognise the differences that
exist between and within the English regions and sub regions.
- Clearly articulate the different roles of key bodies.
- Provide visible and valuable incentives to those bodies.
- Be based on a model of leadership that recognises that the
leadership necessary to set out a vision for regions and drive
economic growth would be shared and distributed across a range of
different bodies; and that these arrangements would be different in
each region.
- Take account of the unique place-shaping role identified for
councils by the Lyons Inquiry and in the 2006 Local Government
White Paper.
- De-centralise responsibility for executive funding to the
lowest level consistent with effective exercise of those
functions.
- Draw on the democratic authority of elected representatives at
both central and local levels.
e) The Value Added
Scoreboard
The Board noted that on 30 April 2007, DTI had published its sixth
annual Value Added Scoreboard, which provided a measure of wealth
created by each of the top 800 UK companies and the top 750
European companies. The Board noted the key findings from the
report and noted that UK companies were the largest group in the
European 750 accounting for 26% of total VA, with the fastest
growth of VA, the highest profitability and the highest wealth
creation efficiency.
The Board was advised that UK companies' out-performance was not
just a feature of the largest companies but was also seen in
mid-sized companies. Within the top UK companies, although many had
business/production units in the North West some stood out as major
contributors to the region’s economy. Unilever (in the top 50
in the EU) had gone from rank 41 to 50 and Astra Zeneca and Bae
were within the top 30 UK, both respectively moving from rank 11 to
14 and 18 to 19.
f) Review of Small Business and
Government
The Board was advised that the Conservative Party had invited
Douglas Richard, (a successful entrepreneur with 20 years
experience in the development and leadership of technology and
software ventures) to convene a small Business Task Force to
consider Government’s role in supporting small businesses. As
a result the Task Force had recently published an interim report,
which outlined the current state of activity; highlighted key
issues; and concluded that at this stage certain things were
already clear. The Board noted the key points, which were as
follows:
- The largest issues facing small businesses were not the sort
that could be remedied by direct Government support programmes:
overregulation, taxes, infrastructure limitations, finance,
Government procurement and education must be addressed with small
businesses in mind.
- Government support for entrepreneurialism and small business
should not be abandoned.
- Government programmes should be radically reviewed so that they
are simple to implement, measure and understand, with clear
measurable objectives.
- The programmes intended to support small business should not be
burdened with other objectives and agendas.
- The current overall expenditure of over £12bn per year could
not be justified in the absence of compelling evidence of
effectiveness; and the burden of proof was on Government to justify
the expenditure or to discontinue it.
- Despite current failings there was dynamism amongst many small
firms and the UK was a good place to start and run a small
business.
The Board was advised that the final report would specifically
include a new set of criteria by which programmes could be measured
as well as recommendations for change.
g) Hidden Innovation
Report
The Board was advised that on 19 June 2007 the Secretary of State
for Trade and Industry had launched Hidden Innovation, a research
report by the National Endowment for Science, Technology and the
Arts, (NESTA). Hidden Innovation was the innovation that was
vital to the UK but which went unmeasured by traditional indicators
and was largely unsupported by policy.
The Board noted that the report identified and valued the
innovation that mattered to six sectors that were low on R&D
spend and patent production, outlined how it could be measured and
then recommended steps that Government and industry could take to
ensure that the UK maximised its capacity for innovation.
h) RES 2009/10 to 2011/12 and Corporate Plan
2007/08 TO 2009/10
Further to the Board’s discussion at the May Away Day on the RES
Baseline report, the Chief Executive advised the Board that the
Agency was now progressing the production of the evidence base for
the next RES, which would cover the period 2009/10 to
2011/12. The Board was reminded that at the meeting between
the NWDA Board and NWRA Executive, held immediately after the June
Board, it was agreed in principle, to use the same approach and
format for the next RES as that for the 2006 RES. This would
include the use of the RES Advisory Group, which was already well
established and continued to work hard to enable RES
implementation.
The Board noted that the production of the RES would be
determinant on Government requirements and the outcome of the
Comprehensive Spending Review. However, the Board
agreed that until any further information from Government was
received, the Agency should proceed as described above.
Similarly it was agreed that the Agency should start to progress
activity in respect of the Corporate Plan which would run from
2007/08 to 2009/10; and subsequently start to consider the Agency’s
priorities for that period.
The Board noted the proposed timetable for the production of
both documents.
i) West Lakes Renaissance Business
Plan
The Board was reminded that at its March 2007 meeting it received
for approval a copy of the Business Plan for WestLakes
Renaissance. At that meeting the Board agreed that more work
was required to ensure that the Plan fit with the West Cumbria
Masterplan; and the Board also expressed concern about WLR's
management, financial systems and capacity. As a result, the
Agency withdrew Delegations from WLR.
The Chief Executive reported that following close working
between Agency staff and WLR, as well as high level meetings (which
he had attended), he was satisfied that WLR’s Business Plan was a
much more focused document with a greater emphasis on
transformational-type activity. He confirmed that it also
reflected the priorities set out in the West Cumbria Masterplan,
which had been endorsed by the West Cumbria Strategic Forum meeting
chaired by Alistair Darling (Secretary of State for Trade &
Industry) on 19 June 2007. The Board was also advised that
WLR had provided a satisfactory management response to the KPMG
audit, which had been undertaken on behalf of the Agency, and that
WLR had also taken specific management action to change key
personnel, particularly in West Cumbria.
On the Chief Executive’s recommendation the Board approved the
Business Plan (of which Board Members received a copy) and agreed
to restore Delegations to WLR.
j) West Cumbria Strategic Forum: “Britain’s
Energy Coast” A Masterplan For Cumbria – Executive
Summary
The Chief Executive provided a full report on the West Cumbria
Strategic Forum meeting, which had taken place on 19 June and at
which he had attended. The Board received a copy of the
presentation that had been provided to Ministers at the meeting by
Jamie Reed MP.
The Board noted that the aim of the Masterplan was that by 2027
West Cumbria would be a confident place that prided itself on its
strong economy, providing opportunities for all and offering a
lifestyle of choice.
The Board was advised that the Masterplan, which was a key RES
Transformational Action, would fit with the WestLakes Renaissance
Business Plan and there was increasing synergy of activity between
the two approaches.
The Board welcomed the news that the meeting was very positive
and that the Masterplan had been agreed in principle.
Detailed plans for each priority would now be developed by WLR and
partners and would be presented to a full meeting of the Forum in
Autumn 2007. The Board agreed that given the large public and
private sector interest in West Cumbria that was expected over the
next ten years it was important that there was a spatial plan for
the area.
k) Lake District World Heritage
Site
The Board noted that the Agency was working with Cumbrian partners
to approve investment in the development of a World Heritage Site
for the Lake District with a target for official nomination by
2010. The investment would support the costs of nomination;
public engagement; and a long term WHS Management Plan.
The Board was advised that by October 2007, a Project Director
would be appointed; and a funding package would be sought for the
project from HLF, the National Park Authority, Natural England,
English Heritage, National Trust and Forestry Commission.
l) Liverpool Development
Company
The Chief Executive reported that after the last Board meeting he
had written to Liverpool City Council to outline the Agency’s
concerns about the way in which the new company was being
established. In addition he had specifically asked for the
opportunity to discuss (before it was launched) the new company’s
prospectus to ensure that the Agency was fully aware of the
proposed strategic objectives and spatial focus.
m) Communities England
Consultation
The Board noted that DCLG had recently launched a consultation on
“Communities England”, which was the next step towards the creation
of the new agency. The new agency was expected to
incorporate the functions of English Partnerships, most of the
functions of the Housing Corporation and DCLG’s Housing Growth,
Housing Market Renewal and Decent Homes programmes.
The Board agreed that it was important that the role of
Communities England complemented the role of RDAs and focused its
activity on housing and neighbourhood regeneration within a
regional framework. In addition it was essential that there
was regional and local flexibility if Communities England was to be
an effective partner.
The Board was reminded that a consultation event would be held
on 31 July 2007; and noted that the consultation period would end
on 10 September 2007. The Agency would prepare a
response.
n) Changes in Government
Machinery The Chief Executive
provided details of the changes to Government Departments following
the appointment of the new Prime Minister. The
RDA Sponsor Department would be the new Department for Business,
Enterprise and Regulatory Reform. The Board noted that the
new Department had a clear focus to promote productivity,
enterprise, competitiveness, trade and better regulation within a
framework of free and fair markets. John Hutton the Barrow in
Furness MP had been appointed as the Secretary of
State.
The Board welcomed the appointment of a Minister for each region
and in particular, the news that Beverley Hughes MP had been
appointed as the Minister for the North West.
o) Corporate Executive
Structure
The Chief Executive confirmed that, following discussions with the
Remuneration and Appointments Committee and Staff Consultative
Committee, he had published the Agency’s revised corporate
structure, which would be implemented from 1 August 2007.
92/08 FINANCE DIRECTOR’S REPORT
The Board noted the Agency’s financial position for the period
ending 31 May 2007.
The Board also noted the Agency’s Efficiency Plan 2006/07,
Quarter 4 performance report, which had been submitted to
DTI. The Board welcomed the news that the Agency had achieved
the targets that had been set at the start of the year.
The Board approved the Agency’s Health and Safety Annual Report
for 2006/07.
The Board noted the Delegations for the period 29 May 2007 to 15
June 2007.
92/09 CHAIRMAN’S REPORT
The Chairman reported on the following issues:-
- Blackpool Task Force – the report was close to finalisation and
would be presented to Ministers shortly.
- Machinery of Government – RDA’s – NWDA had agreed to take Chair
of Chairs role from April 2008 to October 2008.
- LSC – The LSC Council had held two special meetings to discuss
the loss of the 16-19 funding for schools. The Chairman
stressed that it was important that the Agency pressed on with its
regional leadership role.
- Board appointments – The sift of applications for new Board
members would take place on 7/8 August 2007. An internal
audit report had been commissioned to assess the inclusiveness of,
and accessibility to the Board appointments process.
- New Anfield – a report would be presented to the September
Board meeting.
92/10 MINUTES FROM THE ENTERPRISE, INNOVATION AND
SKILLS SUB COMMITTEE HELD ON 20 JUNE 2007
The minutes were noted.
92/11 DATE AND TIME OF NEXT MEETING
The next meeting would take place at 12.30pm on Thursday 20
September 2007 at Renaissance House, Warrington.