MINUTES OF THE BOARD MEETING HELD ON 17 MAY 2007 AT BAE SYSTEMS, SALMESBURY, LANCASHIRE

Present: 

Sir Martin Harris (Acting Chair)
David Brockbank
Joe Dwek
Peter Hensman
Dave McCall
John Moverley
Vanda Murray
Marie Rimmer
Anil Ruia
Brenda Smith
Mike Storey
Maureen Williams.

Also Present: 

Bernice Law, Deputy Chief Executive/ Secretary

David Higham (GONW)
Phil Robinson (NWRA)
George Baxter (90/05)
Ian Haythornthwaite (90/12)
Peter White (90/07. 90/08, 90/09, 90/10)
Mark Atherton (90/08, 90/09)
Sarah Kemp (90/06)

PRESENTATION: PROPOSED TRANSPORT MEASURES – SIR HOWARD BERNSTEIN, CHIEF EXECUTIVE  MANCHESTER CITY COUNCIL AND DAVID LEATHER CHIEF EXECUTIVE GMPTE

The Board received a presentation from Sir Howard Bernstein and David Leather on plans to ease transport congestion within Greater Manchester.

Sir Howard explained the necessity to understand the connections between the way in which congestion is tackled and how, if it is not monitored it could affect the economic growth of the sub region and the North West as a whole.

The Board noted that to help to ease transport congestion there were four tests to be addressed before any package of smart congestion charging measures would be implemented.  The Board was advised that GMPTE would embark upon an extensive public consultation on proposals before any bid for the Transport Innovation Fund was submitted to Government at the end of July 2007.

INTRODUCTION, APOLOGIES FOR ABSENCE AND DECLARATIONS OF INTEREST

Apologies were received from Bryan Gray, Pauleen Lane, John Merry, Steven Broomhead and Phil Robinson, NWRA.    Sir Martin Harris chaired the meeting.

Mike Storey declared an interest in item 90/05.

MINUTES OF THE MEETING HELD ON 15 MARCH 2007 AND MATTERS ARISING

The minutes were approved as a correct record.

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

RES BASELINE REPORT – 2007 UPDATE

The Board welcomed the updated baseline report.  The Board broadly agreed the approach to focus on the Transformational Actions although it also emphasised that the TAs should not be the sole areas of focus.  The Board also agreed that:

• Individual Board Members would be more actively involved in the specific six monthly reviews of progress with lead partners to ensure that RES actions were driven forward.
• Regional debates would be held on issues raised within the report, with a view to implementing the potential solutions as highlighted.

The Board discussed other measures of economic well being rather than just relying on GVA data, and agreed that there was a need to understand the impact on recent datasets given that much of the national data was two years old.

The Board agreed that there was a clear need for RES actions to be linked together more effectively, with less focus on process and more on how all RES actions contribute to the key growth opportunities identified in the region.

The Board agreed with the analysis that a key future focus for the region would be around raising the skills of the existing workforce (Level 3+), releasing the ideas potential in the workforce and targeted leadership and management skills.  This would raise productivity levels and up-skill the workforce, giving opportunities to make appropriate linkages to workless people to fill any lower level vacancies created.   The Board agreed that a Task and Finish Group would be established to look at future NWDA investment in this whole agenda.  It would report back to the Board after three months.

LIVERPOOL SCIENCE PARK PHASE 1b + “GROW ON SPACE” INVESTMENT

The Board was advised that Phase 1a of Liverpool Science Park, an innovation centre of around 40,000 sq ft situated in central Liverpool, was likely to reach full capacity by the end of 2008; and that some of its existing tenants would soon need larger premises. Unless the next phase of the Park was quickly put in place, new and growing science based businesses would not be accommodated and may be lost to the city or their growth stifled.

The Board noted that the Agency had negotiated a deal with Liverpool Science Park (LSP) Ltd whereby if it co-funded the construction and initial operation of Phase 1b of the Science Park in central Liverpool close to the universities, LSP Ltd would then build, by March 2012, a Phase 2, 40,000 sq ft multi occupancy building at the Edge Lane strategic site, using private sector finance.  

The Agency had received an application from LSP Ltd for funding in respect of the period 2007/08 to 2009/10 to take forward the proposals for Phase 1b and Phase 2 Grow on Space.

The Board noted that the Enterprise, Innovation and Skills Sub Committee, at its meeting on 1 May 2007, had reviewed the proposals in detail and had agreed to recommend Board approval subject to the following conditions:

• That LSP provides evidence that the company pipeline was in a healthy state or that there were plans to remedy the low numbers of companies in the pipeline at present.
• That LSP demonstrates a clear and credible plan to raise funding for Phase 2.

The Board agreed with the proposals as outlined particularly in view of the fact that claw back provision had been included within the Funding Agreement.  This meant that should LSP Ltd not go ahead with Phase 2 without reasonable cause, the Agency investment would be returned.  On that basis the Board agreed that the Agency should invest subject to the conditions outlined and agreed by the Enterprise, Innovation and Skills Sub Committee.

VAUXHALL MOTORS ELLESMERE PORT

The Board received an update on developments in respect of Vauxhall Motors.  The Board was reminded that on 17 April 2007 General Motors (Vauxhall’s parent company) had announced that Ellesmere Port, along with Bochum in Germany, Trollhatten in Sweden, and Gilwich in Poland, had been selected to produce the new model Astra. 

The Board also noted that the production of the new Astra was expected to begin in 2010, although the full operational details were not known at this stage.

The Board was advised that the Enterprise, Innovation and Skills Sub Committee had been kept fully informed of developments and had agreed to recommend Board approval of investment to Vauxhall Motors for Workforce Development so that the company was able to meet the manufacturing standards required for the new model.  The funding would cover the period 2007 to 2013.   The Board noted that resolution of associated State Aid issues was currently being sought with the EU Directorate. 

The Board agreed to approve a grant offer to the Company for Workforce Development, subject to:

• EU approval as outlined above.
• Board approval of the Agency’s Strategic Investment Plan for the period 2010/11 to 2012/13 given that part of the funding grant covered the period 2010 to 2013.
• A mechanism being devised to enable effective measurement of outputs and outcomes as a return on the Agency’s investment.

WATERFRONT BARROW – RAMSDEN BUSINESS PARK
 
The Board noted that Ramsden Business Park was the first stage of the Barrow Waterfront Business Park and one of two major schemes of the Waterfront Barrow Masterplan. 

The Masterplan, which had been completed in 2004, was developed to diversify the areas economic base and develop the town’s role as an economic, civic and cultural centre for the wider South Cumbrian economy.  Its other main focus was a Marina Development programme which would provide new marina, housing and leisure facilities. 

Barrow Waterfront Business Park would occupy a 23ha site and would be developed as a new high quality employment location serving the town and its wider hinterland.  The Board noted that the site was entirely brownfield and could accommodate up to 59,000 sqm of office, industrial and storage and distribution floorspace as well as 2000 jobs.  The development would take place over a 15 year period and in three stages to maximise private sector engagement. 

The Board was advised that NWDA investment was being sought, through West Lakes Renaissance, for Ramsden Business Park in respect of the construction of an access road through the 7.4ha site, the provision of structural landscaping, perimeter fencing, mains drainage, services and the remediation of contaminated land to provide developable plots. 

The Board was advised that the proposal for Ramsden Business Park was supported by a recent market demand review and market testing that had been undertaken by Donaldson Chartered Surveyors.  The Board also noted that the Infrastructure Sub Committee had reviewed the project in detail at its meeting on 16 May 2007.

The Board approved NWDA investment (through the WestLakes Renaissance Business Plan 2007/08) towards the reclamation and site servicing of Ramsden Business Park subject to planning permission being secured; Agency agreement of development briefs and management arrangements for the Business Park; and CPRG approval. 

90/08 IMPLEMENTATION OF THE NORTHWEST CLIMATE CHANGE ACTION PLAN AND NORTHWEST ENERGY STRATEGY

 The Board was reminded that the region’s Climate Change Action Plan (CCAP) “Rising to the Challenge” which incorporated actions to deliver the Northwest Energy Strategy was launched in November 2006.

The Board noted that the implementation phase began on 1 January 2007 and that since that date priority had been given to ensure that:

• Implementation arrangements were robustly co-ordinated.
• Sufficient resources and capacity were available to drive delivery.
• CCAP actions were being progressed and monitored.
• Progress was accurately communicated to stakeholders.

The Board noted the progress that had been made since 1 January 2007:  

• The Northwest Climate Change Partnership, chaired by Professor Nick Jenkins had agreed a delivery model for the Action Plan.  The Board welcomed the approach which would utilise existing regional partnerships to oversee the delivery of the thematic CCAP actions.
• Several activities, either partially or fully satisfying their respective CCAP actions had commenced delivery utilising existing resources.  Full progress reports had been issued to stakeholders in February and April.  A web based programme management tool had been developed to help monitor delivery of specific activities under CCAP.
• CCAP lead organisations had submitted provisional plans to deliver respective actions that included milestones, outputs and funding requirements.  The plans had formed the basis on which an outline funding portfolio for the implementation of relevant actions within the CCAP had been developed.  Match funding for the portfolio was expected to be provided from public, private and European sources.

The Board was advised that the Environment Sub Committee had agreed in principle to the establishment of a Climate Change Unit to monitor and co-ordinate delivery of the CCAP.  The Board noted the Unit’s Terms of Reference.

The Board agreed that the continued delivery of the CCAP would require the release of resources as identified within the Agency’s Strategic Investment Plan. The Board therefore agreed in principle to the portfolio allocation over three years to implement the Climate Change Action Plan and Northwest Energy Strategy, subject to detailed appraisal and approval of individual projects.

The Board also agreed that the Agency should seek further financial assistance from Government and regional partners for the implementation of the CCAP.

90/09 NWDA SUSTAINABLE BUILDINGS POLICY
 
The Board noted the work that had been undertaken to develop the Agency’s Sustainable Buildings Policy which had included: 

• The establishment of challenging yet achievable minimum standards to be applied to deliver the policy and also develop the processes necessary to integrate these with the Agency’s project appraisal system.
• The commissioning of work by DTI’s Construction Sustainability Forum to determine the state of readiness of construction clients and contractors in the region to implement these standards.

The Board was advised of the difficulties associated with the setting of such standards and welcomed the fact that the policy sought to address each of the challenges.

The Board agreed the amendments to the policy as determined by the Environment Sub Committee at its meeting on 19 April 2007; and agreed the Agency’s Sustainable Building Policy which would now be integrated into the Agency’s appraisal process and fully implemented in summer 2007.

The Board also agreed that the Agency would:

• Work with the Regional Assembly to modify as appropriate the regional Sustainability Checklist for Development, which would then be developed as a web based tool and be available to construction clients in the region.
• Need to consider the other recommendations of DTI’s Construction Sustainability Forum study, to assess whether further action was required by the Agency to prepare or help the region’s construction sector adapt to the new minimum standards.
• Review and revise the policy in two years time.

90/10 RURAL POSITION STATEMENT 
 
The Board noted the report which provided a stock take of current Agency rural programmes and activities; and assessed emerging issues and trends that impact on those programmes.

The Board was advised that NWDA activity, particularly in terms of funding, was still, to a substantial extent, dominated by the legacy of programmes established some years ago in response to particular needs.  The Board was reminded that the Rural Recovery Programme totalling over £100m was a response to the perceived needs of agriculture and tourism in the wake of the Foot and Mouth epidemic.  Similarly, the Market Towns Initiative, inherited from the Countryside Agency, was aimed at the needs of centres serving rural communities.

The Board was also advised that in total, these programmes amounted to substantial resources primarily aimed at rural ‘problems’.  The bulk of the programmes, however, would end in 2007/08 and there were currently no replacement programmes in the Agency’s SIP.  Other funding streams such as the Rural Development Programme for England would come into being but their focus would be severely constrained by the limits set by Europe.

The Board noted the issues and trends which would affect the environment within which the Agency operated in terms of rural activity.  These included:

• Increasing acceptance of the need to mainstream rural activity where all main programmes and interventions should address the rural agenda.
• Recognition of the importance of the rural economy to overall regional economic performance.
• Changes in the policy context affecting rural areas.
• DEFRA’s Capability Review which now provided a clearer sense of direction for the department, supported by high level targets to avoid dangerous climate change and to secure a healthy natural environment.
• Changes in the way in which the Agency operates, including the move away from direct activity and the increasing importance of sub regional partnerships in identifying and prioritising requirements in their areas.

The Board agreed that given the above it was timely to re-examine and re-focus the Agency’s rural activities; and that such activity should be within the overall objective of improving the contribution of rural areas to regional economic performance.  The Board agreed the following:

• That the Agency should ensure effective incorporation of rural issues into mainstream programmes and activities.  In the first instance this should focus on the Agency’s own activities in support of RES transformational actions.  
• Even with effective mainstreaming there would still be a requirement for some specialised and focused funding.  The evaluation of current programmes, including the Market Towns Initiative, would provide a good opportunity to design more appropriate interventions to tackle particular opportunities.
• There was a need to ensure more effective integration of key rural and environmental priorities into other agendas, particularly those of the sub-regional partnerships.  
• There was a continuing need to develop the ability of the Agency to lead and influence the activities of other organisations at regional and national levels.  This would be best achieved by a more explicit statement of priorities, based on the RES and underpinned by a strong evidence base.

The Board agreed that the Agency’s Rural Advisory Group would take forward strategically the re-focusing of the Agency’s effort on rural issues as outlined above.

90/11 CHIEF EXECUTIVE’S REPORT
 
a) Making the Grade:  British Chambers of Commerce Report on UK Skills 
The Board noted the summary of findings from the report issued on 14 March 2007 by the British Chambers of Commerce which highlighted the increasing difficulties faced by British businesses in finding employees with the right skills.  The cost of training; the time taken away from the business in order to attend training courses; and the limited eligibility for Government funding were the main barriers cited. 

The Board also noted that the report called for Government to place business needs at the heart of its plans to revise vocational training for young people and adults and, whilst it recognised the effort Government was making to increase the skills base in the UK, it stated that certain parts of the Skills Strategy needed to be improved. 

b) Evaluation of the Role and Impact of Regional Assemblies   
The Board noted that the Communities and Local Government Department had recently produced an evaluation report on the role and impact of the eight Regional Assemblies outside London.  The evaluation sought to assess the extent to which Regional Assemblies had met their aims and objectives; and to measure the extent of change or difference facilitated by Regional Assemblies, both positive and negative.

The Board noted that the report had concluded that the work of Regional Assemblies was now focused on four main areas:

• Spatial planning.
• Regional housing function.
• Scrutiny of RDAs.
• Regional policy co-ordination.

The Board welcomed the fact that the report had fully explored the scrutiny role of Regional Assemblies and had concluded that the scrutiny work led by Regional Assemblies was clearly differentiated from the role and coverage of the RDA Independent Performance Assessment.

The Board noted specifically that the report had stated that significant advances had been made in developing more strategic approaches to spatial planning and acknowledged the Regional Spatial Strategy as the principal policy making exercise for Regional Assemblies. 

c) NWRA Scrutiny Role – Memorandum of Understanding  
The Board received a copy of the Memorandum of Understanding (MOU) in respect of the Assembly’s Scrutiny function, which it performs as part of its strategic objectives in line with the RDA Act 1999 and which had been discussed and agreed between the Agency and the North West Regional Assembly.   

d) NWRA Review and Scrutiny Group Inquiry into NWDA’s relationship with Sub Regional Partnerships    
The Chief Executive reported that the North West Regional Assembly’s Review and Scrutiny Group had commissioned Regeneris Consulting to conduct an inquiry into the Agency’s relationship with Sub Regional Partnerships.  The inquiry would:

• Review the Sub Regional Action Planning process, especially the relationship between NWDA and SRPs.
• Assess the role of SRPs in the delivery of identified RES actions for which they lead.
• Assess SRP resources and capacity to deliver, as well as the performance management arrangements with NWDA. There would also be an assessment of SRP’s relations with other key partners and stakeholders.
• Identify how SRPs could work best, given national, regional and local policy context and operating environments.
• Analyse potential future developments of SRPs in the light of the Sub National Review and CSR.

Draft recommendations were expected to be prepared in September 2007, although this would be dependent on the publication of the Sub National Review.  Final recommendations were expected to be published in November 2007.

The Board agreed that rather than ask SRPs to produce new or revised Action Plans for 2007/08 it would be more appropriate for them to provide updates, given this exercise, CSR,  the Sub National Review and that there was no RES review this year.

e) Raising the Learning Leaving Age Green paper “Raising Expectations”  
The Board received a summary paragraph of the key points contained within the Green Paper “Raising Expectations” which had recently been published.  Proposals included legislation to make it compulsory for all teenagers to stay in some form of education until they reached their 18th birthday.  The intention was that the new proposals would be implemented from 2015 and if implemented it could be the most significant change in education policy in a generation. 

The Board was advised that the current staying on rate of 16 -17 year olds was 76% nationally, which made the UK 20th out of the 30 OECD countries.  Youth unemployment was estimated to cost £10m per day to the economy.

The Chief Executive reported that the Agency had recently sponsored a national conference to stimulate discussion on this issue. 

The Agency would respond to the consultation paper.  Board Members were invited to provide comments.

f) Office of National Statistics     
The Chief Executive reported that following recommendations from the Allsopp Review (2005) on the need to improve economic knowledge base for regional policy making, ONS was now represented within the Agency. The Board agreed that this would help to contribute and strengthen the Agency’s research evidence base. 
 
g) Partnership with NHS Regionally and Nationally    
The Chief Executive had recently met the NHS Chief Regional Executives and each Primary Care Trust / Acute Care Chief Executives to discuss Agency / NHS relations.  The Board noted the key areas for co-operation and that a prioritised action plan for 2007/08 would be developed.  In addition regular meetings would take place between the two organisations.

h) European Regional Development Fund     
The Board noted that following the presentation at the May Board on the opportunities and risks of the transfer of ERDF to the Agency, which was expected to take place later in the year, the Agency had held a positive discussion with Government and Government Office. 

The Board was advised that Yvette Cooper, Minister for Housing and Planning had written to Bryan Jackson, EMDA Chairman, to confirm that Government was keen to align the priorities of ERDF with the RES.   The letter also confirmed that the chairmanship of the advisory body i.e. the Programme Monitoring Committee (PMC) would be held by the GO Regional Director. However, in their capacity as Accounting Officers, RDA Chief Executives would have full responsibility for funding in terms of due diligence and assurance arrangements. 

i) Manchester International Festival    
The Board noted the background to the Manchester International Festival and was advised of the plans for the 2007 event which would run from 28 June - 15 July.

Due to its contribution to the RES and link to the Regional Major Events Strategy, the Agency had established a formal relationship with the Festival and had provided sponsorship over a four year period.  The Agency would expect a detailed evaluation report to indicate impact assessment of the event.

The Chief Executive confirmed that the Agency was pleased with the progress so far and that there was an interesting and mixed programme for this first Festival which had been well received by the national media.

The Board also noted that as well as day-to-day liaison, the Agency attended the Sponsors Committee and Brenda Smith was a member of the Festival Board.

k) National Tourism Awards     
The Board noted the winners of the National Tourism Awards, which had been organised by VisitBritain and for which the North West had received more winners than any other region.

The Board welcomed the news that to mark 2008 Capital of Culture next year’s awards would be held in St George’s Hall Liverpool.

l) RENEW    
The Board noted that the Agency would conduct a mid term evaluation of the overall effectiveness of RENEW (the NWDA funded regional centre of excellence for Sustainable Communities).

The Board agreed that the Infrastructure Sub Committee would take responsibility for the appraisal of RENEW’s Business Strategy 2007/10.

m) Sunday Time Rich List 2007    
The Board noted that the region was the third nationally in terms of wealth as indicated in the Sunday Times Rich List 2007.

n) Local Elections 2007     
The Board noted the outcome of the local elections which had been held on 3 May 2007.

o) Appointment of Board Representative on Women’s Enterprise   
The Board welcomed the news that Vanda Murray had volunteered to be the Board’s representative on women’s enterprise.  She would provide briefing to the Board on all matters regarding regional and national women’s enterprise issues.

90/12 FINANCE DIRECTOR’S REPORT

The Executive Director, Finance and Corporate Resources updated the Board on the Agency’s end of year financial position.  He also advised that NAO had completed its interim audit of the year end process and that the final audit would take place between 4 and 22 June 2007.

The Board noted that for the last four years the Agency had participated in the Society of Information Managers (SOCITM) annual ICT customer satisfaction survey.  The objective of the survey was to measure customers’ perception of the quality of the ICT service provided within the organisation.  For the 2007 survey 76% of Agency staff responded and in respect of the overall level of ICT customer service, the Agency’s ICT team received a rating of 6.25 out of a maximum of 7. 

The Board noted the approved delegations for the period 19 March 2007 to 20 April 2007.

90/13 CHAIRMAN’S REPORT

Due to unforeseen circumstances the Chairman was called away to another meeting, hence no report was provided.

90/14 MINUTES FROM THE HEALTH AND SOCIAL INCLUSION SUB COMMITTEE HELD ON 13 APRIL 2007

The minutes were noted.

90/15 MINUTES FROM THE ENVIRONMENT SUB COMMITTEE HELD ON 19 APRIL 2007

The minutes were noted.

90/16 MINUTES FROM THE MARKETING, COMMUNICATION AND TOURISM SUB COMMITTEE HELD ON 19 APRIL 2007

The minutes were noted.

90/17 MINUTES FROM THE ENTERPRISE, INNOVATION AND SKILLS SUB COMMITTEE HELD ON 1 MAY 2007.

The minutes were noted.

90/18 MINUTES FROM THE AUDIT COMMITTEE HELD ON 4 MAY 2007

The minutes were noted. 

 DATE AND TIME OF NEXT MEETING

The next meeting will take place at 12.30pm on Wednesday 20 June 2007 at Renaissance House, Warrington.