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MINUTES OF THE BOARD MEETING HELD ON 15 MARCH 2007 AT RENAISSANCE HOUSE, WARRINGTON

Present: 

Bryan Gray (Chairman)
David Brockbank
Joe Dwek
Sir Martin Harris
Peter Hensman
Pauleen Lane
Dave McCall
John Merry
John Moverley
Vanda Murray
Marie Rimmer
Anil Ruia
Brenda Smith
Mike Storey
Maureen Williams.
 

Also Present: 

Steven Broomhead, Chief Executive
Bernice Law, Secretary
Mark Hughes (88/04)
Patrick White (88/05, 88/07)
Peter White (88/00, 88/06)
Ian Haythornthwaite (88/09)
Keith Barnes (GONW)
Phil Robinson (NWRA)

88/00 PRESENTATION: PRIORITISATION OF LAND REGENERATION ACTIVITY

Keith Jones, Regional Director Forestry Commission, introduced the Public Benefits Recording System (PBRS). The Board was advised that PBRS  was a comprehensive site selection tool which combined social, economic and environmental data. It was capable of prioritising sites by matching them to a wide range of standard datasets, and, for example City Regions, HMR areas and RES growth towns.

PBRS was developed for Newlands, to enable sites for community woodland to be selected for image enhancement opportunities and to remove investment inhibiting dereliction.

It had recently been recalibrated to use the National Land Use Database (NLUD) to ensure that sites matched the RDA tasking framework outputs for brownfield land.  As such, it was able to focus priorities and resources on tackling the “best of the worst” sites, so ensuring ‘grot spots’ were effectively dealt with.

Keith Jones answered a number of detailed queries from Board Members and confirmed that the PBRS model could be used for other purposes other than soft end use reclamation.       

88/01 INTRODUCTION, APOLOGIES FOR ABSENCE AND DECLARATIONS OF INTEREST

There were no apologies for absence.

Mike Storey declared an interest in item 88/05.

88/02 MINUTES OF THE MEETING HELD ON 15 FEBRUARY 2007 AND MATTERS ARISING

The minutes were approved as a correct record.

88/03 ACTION POINTS FROM PREVIOUS MEETINGS 
 
The Board noted the progress made on the action points from the previous meetings.

88/04 ENTERPRISE IN BURNLEY – PHASE 1 – HE/ FE CAMPUS

 The Board was reminded that the Regional Economic Strategy identified the need to promote enterprise and improve skills at all levels and improve HE provision in East Lancashire. The Board noted that to this end, the Agency was  supporting the development of an enterprise strategy (RES Action 3) in Burnley that would:

  • Deliver a positive step change in enterprise culture
  • Develop the role of HE opportunities in East Lancashire to tackle the low wage, low skills economy
  • The current limited presence of HE (RES Action 38), including the embedding of innovation and entrepreneurialism in new FE and HE provision and making it more responsive to local business needs
  • Provide high quality space to enable growth for new businesses and existing small, medium and large companies in priority sectors.

The Board was advised of the total cost for this transformational concept and noted that there were three distinct but linked elements:

  • A new FE/HE Campus, phase 1
  • Development of the Agency owned Michelin site as an Enterprise Park
  • An associated Enterprise Park at Princess Way

On this occasion the Board was specifically being asked to consider the first phase, i.e. the new FE/HE campus. 

The Board noted that Burnley College, through close working with the University of Central Lancashire (UCLAN), was seeking a new site on which to expand and improve FE/HE provision in East Lancashire. The Agency had encouraged Burnley College and UCLAN to consider a clustering approach with business to encourage enterprise development and strengthen the vocational curriculum to meet the needs of local employers. The development of a single FE/HE campus with an enterprise theme and an enterprise park, providing a range of incubation space, managed workspace and high specification office accommodation for new and growing companies, would increase employment in higher value business and improve productivity locally. There was also an opportunity to develop provision for Foundation Degrees, to match the needs of local industry, particularly in the advanced manufacturing and aerospace and digital and creative industries sector which were important to the economies of Burnley, East Lancashire and the Region.

A site on Princess Way close to Burnley Town Centre had been identified as the optimum deliverable location for a combined new FE/HE Campus and Enterprise Park.  The Board was advised that it would consist of a relocated Burnley College, a new higher education facility run by UCLAN and an Enterprise Park providing a focus for new investment and business growth. There was also the potential to develop linkages with re-development of the Agency owned Michelin site on the outskirts of Burnley, to provide accommodation for larger advanced manufacturing companies.

The Board was advised that a feasibility study had been commissioned during 2006, which had recommended a split site approach. This had been endorsed in January 2007, by the Burnley Education and Enterprise Steering Group.

The delivery of the three phases would be sequential. The College would be on site in 2007; work at Michelin was likely to commence in 2008/2009; and Princess Way business space would be built some time after.

The Board also noted that phases 2 and 3 would require public sector funding for land assembly, site preparation and remediation as well as some possible gap funding of private sector development.

The Board noted that the Enterprise, Innovation and Skills Sub Committee had reviewed the project in detail and recommended Agency investment as outlined in the report.

The Board approved the Agency’s investment in phase 1 subject to the following conditions:

  • Confirmation is received to indicate that the HE facility will progress as an integral part of the scheme and that the release of NWDA funding will be contingent on this.
  • Confirmation is received to indicate that the identified shortfall in funding is to be covered by either the LSC or College.
  • Necessary land acquisitions are completed.
  • Agreement is made on the time line for the draw down of NWDA funding
  • Planning approval is obtained.

88/05 REGENERATION COMPANY BUSINESS PLANS
 
The Board was advised that the Agency had undertaken a robust process to assess Regeneration Company Business Plans to ensure their deliverability and that they fit within the RES.  In September 2005, the Agency had provided guidance on the completion of the plans and since then had worked closely with each of the RCs to help them develop the plans.

The Board noted that each Plan had been assessed against the following criteria:

  • URC objectives.
  • Priorities.
  • Projects: RES fit and funding profile.
  • Outputs.
  • Risks.
  • Past performance.

As a result the Agency had identified a number of issues which were being resolved through ongoing discussions and conditions were being agreed with the relevant RC as appropriate.   The conditions would allow the Board to approve plans at this stage, without leaving substantial delivery risks to be unmanaged. 

88/06 REGIONAL SUSTAINABLE DEVELOPMENT ADVISORY GROUP
 
 The Board was advised that Government required each of the English regions to establish Sustainable Development Groups. In the Northwest, the Agency, the Regional Assembly and GONW had been remitted to determine an appropriate approach for the region. 

The Board noted that there was an existing sustainable development roundtable for the region, known as the Action for Sustainability Management Group.  This Group was responsible for the development and implementation of the existing regional sustainable development framework. However, the Board was advised that the Management Board and the Framework were no longer fit for purpose and had become broadly obsolete.

The Board noted the proposed Terms of Reference for the Group.

The Board agreed:

  • To the establishment of a North West Sustainable Development advisory Group to replace the Action for Sustainability Management Board.
  • To request that the Community and Voluntary sector is included.
  • To delegate responsibility to the Regional Strategy team to select members for the Advisory Group, using Nolan principles.
  • That the Agency, jointly with NWRA and GONW would provide appropriate secretariat support to the Group.
  • To respond to recommendations from the Group in relation to those matters that related directly to the Agency.

88/07 IPA IMPROVEMENT PLAN

The Board noted the progress made by the Agency to deliver the IPA improvement plan.

88/08 CHIEF EXECUTIVE’S REPORT

a) Regional Casino Update 
The Chief Executive reported that following the release of the Advisory Panel’s recommendations regarding the location of the regional casino and the sixteen smaller casinos there had been considerable parliamentary and press activity.  The Secretary of State for Culture Media and Sport would be laying orders confirming the panel’s recommendations,  following a parliamentary debate that was scheduled for 28 March 2007.

The Board noted that the Agency had met both Blackpool and Manchester to discuss the implications and the NWDA Chairman had written to Margaret Hodge, Minister of State for Industry and the Regions following her recent visit to Blackpool and her concerns for a need for a “Plan B”. 

The Board agreed that the Agency should not become involved in any further discussion or debate on this issue until the outcome of the parliamentary debate was known.

b) Business Link North West  
The Board noted that Business Link NW would “go live” on 2 April.  The Board received a detailed progress report, which outlined the situation in respect of staffing, service delivery and accommodation matters.

c) RDA Budget Input    
The Board was advised that on 23 February 2007 the RDAs collectively had submitted to HM Treasury their input to the Budget 2007. Specifically HM Treasury had asked RDAs to:

  • Suggest ways in which RDAs could work more effectively with the private sector, to maximise economic growth within the regions, levering in further private sector support.
  • Consider how RESs could be better targeted on those factors most likely to drive regional economic growth and competitiveness in a global market place and what were the institutional or other barriers to those improvements.
  • Suggest how, building on the Impact Evaluation Framework, RDAs can ensure a comprehensive, proportionate approach to the full evaluation of their impact and programme spend.

The Board welcomed the fact that the RDAs had worked closely to consider the issues and had used regional expertise to present examples of current regional approaches, challenges to future delivery and an agreed set of national actions which RDAs would wish to see considered through the Budget process.

d) Prosperous Communities II- Vive La Devolution    
The Board noted that the Local Government Association (LGA) had published the document Prosperous Communities II- Vive La Devolution as its evidence base and proposals for the devolution of powers to local councils. The Board was advised that the document followed on from the report Prosperous Communities which was published in November.

The Board noted that Prosperous Communities II - Vive La Devolution confirmed the principal decision making powers that the LGA had concluded should be located at sub regional level in respect of Labour Market, Transport, Economic Development and Planning and Housing. Generally proposals centred on the role and empowerment of sub regional partnerships and the report included a number of possible models for governance arrangements at sub regional level, which included reference to company structure, joint committees, Local Area Agreements, Local Strategic Partnerships and Multi Area Agreements.  There was recognition that some partnerships would require a mechanism to make sure that the spending of public money was properly accounted for; and that others would want to make decisions about priorities for public spending for land use, transport provision, and the capacity to build and use an evidence base.

In relation to economic development there was a suggestion that the process for producing regional strategies should be aligned and rationalised to reflect the sub regional nature of local economies.

e) CBI SME Trends Survey   
The Board noted that the latest CBI SME Trends Survey, which had been published on 12 February, showed that manufacturing output and total orders among smaller firms had risen at their fastest rate in over a decade. However demand was expected to slow over the next three months.  There had been surprising growth in orders and output due to overseas demand, but significant job losses were expected over the coming quarter.

f) Public Accounts Committee Report on the Small Business Service   
The Board noted the key conclusions and recommendations from the Public Accounts Committee (PAC) report on the Small Business Service (SBS) which had been published on 6 February 2007.  The report followed on and was consistent with the National Audit Office report on SBS which had been published in May 2006.

The Board was advised that since the PAC report Government had announced that SBS would be reformed as a smaller unit to focus on influencing policy.

g) Government Office North West (GONW) Change Agenda
The Board received copies of the document “Working for Whitehall and the region” which had been published by GONW and which summarised how the organisation saw its role developing in the context of the Sub National Review. 

The Board noted that the Agency had been involved in a number of discussions in relation to GONW’s change agenda, which had been organised on a sub regional basis.
 
h) Comprehensive Performance Assessment (CPA) 2007: Results 
The Board noted the results from the Audit Commission’s performance assessment of the Upper Tier Local Authorities.  The Board agreed that they were an encouraging and good set of results.

The Board noted that the District Council results would be published in May 2007.

i) Delivering for the Region:  Improving the Economic Performance of England’s 1999 – 2007  
The Board noted that the Agency had recently published the document “Delivering the Region, Improving the Economic Performance of England’s Northwest 1999 -2007”, which summarised the economic performance of the region since 2000 and the role that the Agency has played in making a lasting impact on the regional economy.

j) Leitch Review of Skills: Implications
The Board noted that the Agency had held discussions with DTI, DfES and the LSC regarding the implications of the Leitch Review. The discussions had focused on:

  • The relationship between Skills, productivity and competitiveness.
  • The need for skills policy priorities to be driven by the RES.
  • The role of the regions in respect of Skills and how it should be recognised in any future skills delivery arrangements.
  • The relationship between the RES, Regional Skills Partnerships, LSC Regional Governance Studies and the Sector Skills Councils.
  • The determination of the capacity of employers, in a sustainable manner; as well as their training needs.
  • The impact of the Train to Gain initiative.

The Board was advised that final decisions on the implications of Leitch were not expected to be made until the outcome of CSR 2007.

The Board was also advised that the LSC would soon begin its recruitment process, based on Nolan principles, for the Chair of its Regional Board.  An advertisement would be published in late April.  The region’s five local LSCs were expected to cease to exist in late Autumn and their activity would then become the responsibility of the regional LSC.   The Agency was in discussion with Sub Regional Partnerships concerning their role in respect of the Skills Strategy.

k) Women Ambassadors   
Board Members were advised of the background to an announcement by Margaret Hodge that RDAs would work with the Enterprise Insight to recruit 100 Women Ambassadors per region.  A programme of activity had been agreed between SEEDA (the lead RDA for Women’s Enterprise), the SBS and Enterprise Insight (an organisation which aims to encourage young people to be enterprising).

The Board noted that in the North West, there was already an established Strategic Women’s Enterprise Steering Group, which at its meeting on 15 February had agreed an action plan to achieve, by the end of September 2007, the 100 Women Ambassadors for the region.  The Agency will work closely with the Steering Group and other Women’s Business Networks, websites and advocates to achieve this objective.

88/09 FINANCE DIRECTOR’S REPORT

The Board noted the Agency’s financial position for the period ending 31 January 2007.

The Board was also advised of the situation in respect of the ERDF liability on Business Link transfer and noted that the Agency would continue to discuss the issue with GONW in order to secure an assignment of contracts.

The Board noted the delegations for the period 6 January 2007 to 5 February 2007.

88/10 CHAIRMAN’S REPORT

The Chairman reported on the following:

Media City
All documentation had been accepted and would be discussed at the BBC Trustees meeting in April.  A BBC top management conference was held recently in Salford at which the NWDA Chairman had spoken and which included very positive discussions about the relocation.

RDA Chairs meeting
David Milliband attended to discuss Climate Change. RDA Chairs discussed the role of Business Link in offering advice on Climate Change and Business Resource Efficiency.  EEDA would follow up with Government.

Ministerial meeting with RDA Chairs
Discussion covered Energy White Paper (expected in May); and CSR (timing now Autumn).

Meeting with Gordon Brown and John Healey
Issues discussed as follows:

  • Ministerial support for RES in NLGN proposals to align with RSS.
  • Regional Innovation Fund.
  • Business Support.
  • Climate Change and opportunity for Business Link SME penetration to offer advice.

88/11 MINUTES OF THE SUB REGIONAL STRATEGIC LIAISON COMMITTEE HELD ON 15 FEBRUARY 2007.
 
The minutes were noted.

88/12 MINUTES OF THE SPECIAL MARKETING, COMMUNICATIONS AND TOURISM SUB COMMITTEE MEETING HELD ON 20 FEBRUARY 2007
 
The minutes were noted.

88/13 DATE AND TIME OF NEXT MEETING

The next meeting will take place at 12.30pm on Thursday 19 April 2007 at Renaissance House, Warrington.

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