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MINUTES OF THE BOARD MEETING HELD ON 15 NOVEMBER 2007 AT OAKMERE CONFERENCE CENTRE, LIVERPOOL


Present: 
Bryan Gray (Chair)
Sir Martin Harris
Joe Dwek
Peter Hensman
Pauleen Lane
Dave McCall
Vanda Murray
Marie Rimmer
Anil Ruia
Brenda Smith
Mike Storey
Maureen Williams 

Also Present: 
Steven Broomhead, Chief Executive
Patrick White, Executive Director of Policy /Secretary
Phil Robinson (NWRA)
Mark Hughes (95/04)
Simon Nokes (95/06)
Mark Atherton (95/07)
 
95/01 INTRODUCTION, APOLOGIES FOR ABSENCE AND DECLARATIONS OF INTEREST

Apologies were received from John Moverley and Keith Barnes (GONW)

95/02 MINUTES OF THE MEETING HELD ON 18 OCTOBER 2007 AND MATTERS ARISING

The minutes were approved as a correct record.

95/03 ACTION POINTS FROM PREVIOUS MEETINGS 
 
The Board noted the progress made on the action points from previous meetings.

95/04 HIGH GROWTH SUPPORT PROJECT

The Board was reminded that the Regional Economic Strategy identified action to increase business start up, survival and growth as a way of reducing the GVA gap and increase the number of “knowledge” occupations to bring the North West proportion up to the England average. 

Work conducted in response to this action identified the client base/needs in the underperforming sectors of high growth, knowledge based start-ups, women, BME communities, disabled entrepreneurs and hard to reach communities.

Specific support for hard to reach communities had already been commissioned under the Regional Start-Up project.

The Board was asked to consider the proposed project which would deliver support for high growth and knowledge based start-ups that satisfied the criteria including the ability and ambition to achieve significant growth. 

The Board noted that the NW Science Council had provided advice in respect of the content of the project and the Agency’s Enterprise and Skills Sub Committee had agreed to recommend the project for NWDA Board approval. 

The Board was advised that the focus of the project would be on those businesses that had identified potential for significant growth and would contain two major elements: 

  • Support for pre start and new start up “knowledge based” businesses
  • Support for businesses that are more than two years old.

Support would include:

  • Mentoring, coaching and consultancy as required.  
  • Training sessions including encouragement to make use of peer learning and networking.
  • Promotion and access to existing growth entrepreneurs to share experiences.

Additional features would include:

  • “Out of hours” support so that it could be accessed by the employed and unemployed at the same time.
  • Linkages to HE/FE networks to encourage local delivery.
  • Exposure to successful entrepreneurs at an early stage.
  • Opportunity for employed people to identify whether business start up was right for them without jeopardising their existing position.
  • Expert training and education from an experienced team.

The Board noted that companies would be expected to contribute both in cash and “in kind” to the project; and an “umbrella” insurance policy would be offered to potential non – executive directors to remove what was a potential barrier to their engagement with clients.

The Board was advised that coaching rather than alternative forms of support was now proving to show a higher probability of “transferring” knowledge and experience to businesses; and would ensure a sustainable approach by individual businesses to achieve their own growth potential.

The Board was also advised that Business Link Northwest would be the “gateway” for all enquiries and referrals.  Delivery of the training and coaching would be put out to tender.

The Board noted that the project required Agency investment which would be matched by private sector investment from the companies involved.  Expected outputs were 2536 jobs created; 1106 businesses assisted; and £350m economic impact return.

The Board agreed to support the initiative and approved funding for the project, subject to further review by the Enterprise and Skills Sub Committee during the tender process to ensure that delivery was consistent with the Agency’s objectives for Business Link and Business Support Simplification. 

In addition, the Board asked for delivery to be subject to ongoing monitoring and evaluation to ensure that early lessons learned were applied to future years.

95/05 CORPORATE SOCIAL RESPONSIBILITY

The Board was advised that as a public sector business of significant size the Agency had significant responsibilities to maximise the economic, social and environmental benefits of how it operated as an organisation.  The Board recognised that this responsibility sat alongside, but was separate from, the core responsibility that the Agency had to influence sustainable economic and social development through its core investment programme and strategic activity.

As a result the Agency had been working with Business in the Community (BITC) to develop its Corporate Social Responsibility role and policy.  Indeed the two organisations had made use of each other’s skills and expertise to take forward the whole issue of CSR policy and evaluation.  This work had identified that the Agency had already carried out a significant amount of CSR related activity and that its main internal systems and procedures took account of its responsibilities (for example: energy use and efficiency).  However to take this forward BITC had made a number of recommendations which in turn led the Agency to develop its CSR policy and priorities. 

The Board agreed the Agency’s CSR policy, but asked for further work to be done on the annual priorities to ensure that stakeholders were identified clearly and the right links were made to the Agency’s Investment Programme and the Corporate Plan.

95/06 RES TRANSFORMATIONAL ACTIONS MONITORING REPORT

The Board received a six monthly report on the progress made by the region to deliver the RES Transformational Actions.  The Board noted that significant progress had been made with eight of the TAs, and that steady progress was being made with a further 28.  However there was still considerable work needed to deliver the TAs relating to skills and employability.

The Board was advised that workforce productivity was one of the main causes of the continuing economic performance gap and whilst it was acknowledged that the skills and employability TAs were long term, there was evidence that the complexity of delivery structures and relative immaturity of the delivery arrangements in place were important factors.  The Board was advised that Government had recognised the issue and through CSR had confirmed its intention to further align the work of Departments and agencies with regional priorities.  The Board noted that a separate Board Task and Finish Group had been convened to review the issue in detail and to make recommendations for the way forward in respect of RES delivery.

The Chief Executive would ensure that dialogue between TA lead officers and respective Board Members was more focused and improved in respect of the progress towards the achievement of RES Transformational Actions (TAS).  A revised list of TAs with respective nominated Board Members and officers would be presented to the Board at its next meeting.  

95/07 CLIMATE CHANGE ACTION PLAN PROGRESS REPORT

The Board received an update on the progress made to deliver the Climate Change Action Plan.  The Board noted that whilst progress was steady, activity needed to move more quickly to achieve all of the year 1 aspirations contained within the Plan. 

Several research studies had been completed including:

  • A study on regional Energy and Greenhouse Gas Emissions.
  • A Climate Change Perceptions study.
  • An analysis of regional energy data collection and modelling.

The Board noted that the studies would inform the future development of the climate change programme and target setting as well as a communications strategy, which was currently in development.  A new regional climate change website was launched in July and newsletters were being circulated on a quarterly basis.

The Board agreed the importance of maintaining a sense of urgency and asked the Agency to work with partners to further improve commitment to the changes required to meet the Climate Change challenges.  The Board agreed that this should involve identification of strands of innovative activity and measures to help business understand the potential for change.

The Board also asked for the development of a Climate Change baseline to be taken forward as a matter of urgency.

95/08 CHIEF EXECUTIVE’S REPORT
 
a) Regional Select Committees        
The Chief Executive reported on Government’s announcement that the House of Commons Modernisation Committee would examine the Governance of Britain Green Paper proposals that sough to improve democratic accountability and scrutiny of the delivery of public services in the English regions.  The Board noted that in effect, the Committee would consider whether Regional Select Committees were the way forward, without excluding the consideration of other potential models.  Evidence had been requested by 23 November 2007 and the Agency would provide a response. 

The Committee was expected to report by March 2008.  As Government would base its decision on the recommendations from Parliament and the SNR consultation, there was unlikely to be a final conclusion until May 2008.  Board Members were asked to provide the Chief Executive with any views or comments which they would like to be included in the RDA’s input to the Committee.

b) BERR Strategy Document – Our Commitment to Business       
The Board noted that the RDA sponsor Government Department, the Department for Business, Enterprise and Regulatory Reform had launched its new three year strategy document “Our Commitment to Business’.  The document confirmed the Department’s central role in creating a more competitive Britain that could respond to the challenges of the future, including globalization and climate change.  BERR would work with businesses, employers and consumers to create an environment that would support business success.  The Department was responsible for the following Government PSA targets: 

  • To raise the productivity of the UK economy.
  • To deliver the conditions for business success in the UK.
  • To improve the economic performance of all English Regions and reduce the gap in economic growth rates between Regions.

c) Further Education and Training Bill: Royal Assent       
The Board was advised that the Further Education (FE) and Training Bill had now become law.  The Act would bring about changes to the governance arrangements for FE colleges, who would now be able to validate and award their own Foundation Degrees.   It would require streamlined arrangements for the introduction of new courses, and would also have implications for FE funding.

The Act would also streamline and restructure Learning and Skills Councils and it confirmed their new regional structures, which would allow LSCs to respond more quickly to skills initiatives. They would be allowed to intervene in FE colleges deemed to be under-performing and would also be able to fill vacancies on college boards. 

The Board also noted that Government was expected to commission a review of the role of the National LSC.  In particular in respect of its role in Adult Education and Training, given the decision made in the Comprehensive Spending Review that from April 2009, all 14 – 19 resources and Train to Gain brokerage would move to Local Government and RDAs respectively.  The details of how 14-19 changes would be implemented were likely to be the subject of further Government consultation.

The Chief Executive reported that he continued to be a member of the shadow regional LSC Board.   Recruitment for the new Board would take place early in 2008.

d) Our NHS/ Our Future     
The Chief Executive reported that he had become a member of the Regional Strategic Health Authority’s Strategic Programme Board.  This would enable the Agency to contribute to the national consultation on the future of the NHS.  There were three main themes being considered: access to NHS services; the quality of the services provided; and health and well being.  The Agency was working closely with NHS Northwest to develop its approach to health inequalities.  A final report would be made available in July 2008. 

The Board was reminded that the national consultation was being led by Health Minister Lord Darzi.  In the North West the focus would be on a fair, personal, effective and safe NHS.  At the first meeting of the Strategic Programme Board, the Chief Executive had stressed the need to link those priorities to economic and regeneration objectives (i.e. the RES).

e) Health and the Economy         
The Board received a copy of a document that had been prepared by the Agency’s Regional intelligence Unit, which summarised the recently published Northwest Public Health Observatory report on Health and Equality.  The Board noted that the Agency would work closely with the NHS Northwest towards the development of healthy workforces and health promoting organisations.

f) Regional Index of Sustainable Economic Wellbeing      
The Board also received a briefing note, again prepared by the Agency’s Regional Intelligence Unit, following the recent publication by the New Economic Foundation of the Regional Index of Sustainable Economic Wellbeing (RISEW).  The report sought to take account of a wide range of economic and quality of life type measures and was very positive for the North West.  In terms of GVA per head the region was eighth out of nine regions, but of all the regions in the country, the North West had the smallest gap between GVA per head and RISEW per head (which discounts GVA to take account of quality of life factors).  

g) Government Response to the Eddington and Stern Reports    
The Chief Executive reminded Board Members that in October 2006, Sir Nicholas Stern had reported to Government on the economics of climate change; and in December 2006 Sir Rod Eddington reported on the long term links between transport and the UK’s economic productivity, growth and stability. 

In response (in October 2007) Government had published the document “Towards a Sustainable Transport System – Supporting Economic Growth in a Low Carbon World”.  The Board noted that the document outlined Government’s proposed approach to support economic growth in relation to transport; and described how Government was: 

  • Responding to the recommendations from the Eddington study
  • Ensuring that transport will play its part to deliver the overall reductions in carbon emissions recommended by the Stern Review.

The document also set out DfT’s ambitious policy and investment plans for the period up to 2013; its proposals for a new approach to a longer term transport strategy; and its plan to engage and consult with a wide range of stakeholders to evidence and develop a strategic transport framework. 

The document also confirmed that Government would consult and develop guidance on the mechanisms by which regional and individual local authority funding would be allocated, building on the existing RFA and LTP processes. The RDAs’ influencing role in terms of rail connections and ports was clearly acknowledged. 

The Board noted the timetable for consultation and was advised that the Agency would provide a response to be agreed by the Infrastructure Sub Committee.

h) West Coast Mainline Update       
The Board noted that following the launch of the West Coast Main Line Strategy in 2003, the planned major refurbishment of the line’s rail infrastructure as well as the introduction of a new train fleet with a higher operating speed of 125 mph, had almost completed.  The Board was advised of the work that was still to be undertaken and that some of the work would continue past December 2008.   The key outputs for the North West from December 2008 would include a 20 minute frequency service from London to Manchester (half hourly at the moment); faster journeys from the North West to London; and much faster Liverpool, Preston and Glasgow services.

i) Uk Cities Monitor 2007      
The Board noted that Estate Agents Cushman & Wakefield had recently published “UK Cities Monitor” which outlined the results of a survey that the Company had undertaken on the UK’s major business cities.  The report acknowledged that cities were recognising that they were increasingly in competition with each other to attract inward investment.  The survey examined 15 cities across the UK; and included a total sample size of 200 companies from around the UK. 

Findings from the survey had been very positive for Manchester.  It was one of the three top UK cities for business; and was seen as the best for a new headquarters building and also for a new back office function.  It was also the top rated city for the availability of office space and the availability and cost of car parking. It was second to London in terms of the quality and value of hotels for business travellers.  The report also confirmed that all of the cities surveyed could expect some expansion over the next ten years.  However Manchester was expected to have the biggest influx over that period.  Ten of the companies surveyed stated that they expected to locate there.

Overall Manchester was ranked second (London being top) having moved up one place from the previous year; and Liverpool was ranked ninth, again having moved up one place.

j) Steam Tourism Figures     
The Chief Executive reported on the Scarborough Tourism Economic Activity Monitoring (STEAM) Tourism figures for the region for 2006.  The Board noted that STEAM was an economic model owned and operated by Global Tourism Solutions (GTS) UK Ltd, which provided estimates of tourist numbers, tourist days and total revenue generated for overnight tourists and day visitors.   It was used by three RDAs - East Midlands Development Agency, ONE Northeast and NWDA; and also by VisitScotland and VisitWales.

The results for the Northwest for 2006 were good:  

  • Visitors to the region had generated £11.4bn revenue – that showed an increase of 2% on 2005.  (This supported approximately 190,000 full time equivalent jobs in the regional economy.)
  • Close to 30m visitors had stayed overnight in the region, spending £4.6bn.  Regional day visitors generated an estimated £6.8bn.

k) Northwest Tourism Awards    
The Board noted that on 10 October 2007 BBC North West Tonight had hosted the Northwest Tourism Awards.  Tourism businesses and officials from the across the region had attended the event, which had been organised by the Agency.  The Board noted the list of winners, who would now have the opportunity to represent the region on the national Enjoy England Awards for Excellence, organised by VisitBritain, to be held in April 2008.

l) Pennine Lancashire City Development Company (East Lancashire)     
The Board was reminded that the Local Government White Paper, published in October 2006, included a proposal to develop City Development Companies (CDCs).  A CDC was envisaged as an arms-length delivery vehicle that would work across local authority administrative boundaries to mirror functional economic footprints.  Government approval was not required and Local Authorities could determine responsibilities, although there was a stipulation that CDCs should have an economic focus.  The Sub National Review (SNR) reinforced the potential role of CDCs.

The Chief Executive reported that Pennine Lancashire Local Authorities [led by Blackburn BC and Lancashire County Council (LCC)] had discussed with DCLG the potential for a CDC as the delivery arm of a Pennine Lancashire Multi Area Agreement.  Subsequently GONW had formally invited Blackburn BC and LCC to develop pilot proposals.  

Pennine Lancashire Local Authorities had since formally agreed to develop a proposal to establish a CDC from April 2008; and the Board noted its proposed remit.

m) Unitary Authority Update      
The Board noted that the judicial review, which had been called by a number of Local Authorities to determine whether the Secretary of State had the appropriate powers to determine the creation of Unitary Authorities, had concluded.  The Board was advised that the Judge, Mr Justice Underhill had ruled against the challenge although some of the Local Authorities (including Congleton Council) may appeal. 

n) Economic and Fiscal Impact of Immigration   
The Board received a summary (provided by the Agency’s  Regional Intelligence Unit) of a report on the economic and fiscal impact of immigration which had been recently submitted to the House of Lords by the Migrant Impact Forum.    

The Board noted that the report considered the socio-economic impact of migration to the UK.  The main conclusion was that it had a positive effect on the economy, but there was an urgent need to consider the appropriate infrastructure to support and integrate migrants.

o) Liverpool New Development Company    
The Chief Executive reported that during the past month he had made considerable effort to determine the function, role, purpose and spatial focus of the new Liverpool Development Company.  He reminded Board Members that the new Company would be a merger of Liverpool Vision, Liverpool Land Development Company and Business Liverpool and would be in place from 1 April 2008. 

The Chief Executive confirmed that the Agency had recently received for comment, a document which outlined a protocol for the relationship between the new Company, TMP, the Local Authorities and the Agency in respect of Inward Investment.  Liverpool City Council had indicated that the new Company would have no role in the promotion of Tourism for the City Region.

The Board noted that following an open competition, Michael Parker, currently the Chief Executive of British Nuclear Fuels, had been appointed as Chairman; and the new Company would soon produce its Business Plan. 
 
p) ISO27001   
The Board welcomed the news that the Agency’s ICT team had successfully achieved accreditation against the internationally recognised ISO 27001 standard in Information Security Management.  NWDA was first RDA to have achieved this standard.

q) Disability Discrimination Act      
The Chief Executive reported that as a result of changes to legislation within the Disability Discrimination Act the Agency was required to make some alterations to its premises at Renaissance House. Hence, over the next month there would be some building work and refurbishment taking place.  All efforts would be made to minimise disruption.

r) West Cumbria Masterplan     
At its request the Board received an update on the West Cumbria Masterplan.  The Agency would seek to ensure that the Masterplan had sufficient spatial focus.

95/09 FINANCE DIRECTOR’S REPORT

The Board noted the Agency’s financial position for the period ending 30 September 2007. 

95/10 CHAIRMAN’S REPORT

The Chairman provided an update report on Daresbury.  He advised that Government’s decision not to pursue the 4GLS project was disappointing but in a very positive context.  Daresbury had attracted 59 companies and the private sector was leading the next phase of development. 

The replacement for 4GLS - the New Generation Light Source should be located at Daresbury and the region would seek strong Government re-commitment to the bipolar approach to science as announced in summer 2006.   The Chancellor of the Exchequer was likely to visit Daresbury in the New Year, which would provide an important opportunity to showcase its success.


95/11 MINUTES FROM THE ENTERPRISE AND SKILLS SUB COMMITTEE HELD ON 19 SEPTEMBER 2007

The minutes were noted.

95/12 MINUTES FROM THE INFRASTRUCTURE SUB COMMITTEE HELD ON 19 SEPTEMBER 2007

The minutes were noted.

95/13 MINUTES FROM THE EQUALITY AND DIVERSITY SUB COMMITTEE HELD ON 20 SEPTEMBER 2007

The minutes were noted.

95/14 MINUTES FROM THE ENVIRONMENT SUB COMMITTEE HELD ON 19 OCTOBER 2007

The minutes were noted.

95/15 DATE AND TIME OF THE NEXT MEETING

The next meeting will take place at 9.30am on 13 December 2007 at Renaissance House, Warrington.

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