MINUTES OF THE BOARD MEETING HELD ON 20 SEPTEMBER 2007 AT RENAISSANCE HOUSE, WARRINGTON

Present: 
Bryan Gray (Chair)
Sir Martin Harris
Joe Dwek
Peter Hensman
Pauleen Lane
John Moverley
Marie Rimmer
Anil Ruia
Mike Storey
 
Also Present: 
Steven Broomhead, Chief Executive
Patrick White, Executive Director of Policy /Secretary
Ian Haythornthwaite (92/04, 92/05, 92/08)
David Higham (GONW)

93/00 PRESENTATION: SUB NATIONAL REVIEW: STEVEN BROOMHEAD AND PATRICK WHITE

The Board received a presentation from the NWDA Chief Executive and the Executive Director of Policy on the recent Sub National Review (SNR), which covered the aim of the review; the policy changes; the implications for the Agency and the region; and the next steps towards implementation.

The Board noted that SNR had been conducted in the context of a wider review of Government spending; central Government reorganisation and reform; and the Government’s aims to align public spending more closely to economic priorities. 

The Board noted SNR proposals at regional, sub regional and local authority levels; and specifically the evident implications for RDAs which were that:

• RDAs would increase strategic role and focus.
• The RDA Tasking Framework would be reformed. One regional growth objective would be set for each region.  
• RDAs would increase programme management, and seek to delegate project investment decisions where it was appropriate to do so and where capacity was in place.
• RDAs would become regional planning bodies;
• RDAs would lead on an Integrated Regional Strategy that would bring together the RES and the RSS.

The Board agreed that at sub regional level SNR was consistent with the NW Sub Regional Partnership approach and welcomed the intention to align national  policy interventions with regional and sub regional economies.

The Board noted and agreed the work programme underway within NWDA on SNR implementation.

The Board also agreed, subject to further guidance from Government, to move towards the production of an integrated regional strategy as soon as practicable and therefore in principle to defer the production of the RES 2009.  The Regional Strategy Team would co-ordinate the production of an integrated evidence base, on which work was already underway.

93/01 INTRODUCTION, APOLOGIES FOR ABSENCE AND DECLARATIONS OF INTEREST

Apologies had been received from David Brockbank, John Merry, Maureen Williams and Phil Robinson (NWRA observer)

93/02 MINUTES OF THE MEETING HELD ON 12 JULY 2007 AND MATTERS ARISING

The minutes were approved as a correct record.

93/03 ACTION POINTS FROM PREVIOUS MEETINGS 
 
The Board noted the progress made on the action points from previous meetings.

93/04 DEVELOPMENT OF NEW ANFIELD

The Board was advised that Liverpool City Council had applied for Agency funding towards the New Anfield project.  The project consisted of a package of improvements to maximise the economic development benefit of separate proposals for Liverpool Football Club’s proposed new stadium.

The New Anfield project would include improvements to Stanley Park; the restoration of the Gladstone Conservatory; public realm, access and infrastructure work; a new community partnership centre within the stadium; and programme management costs. A funding package for the project was being sought that comprised Agency investment, Objective 1 ERDF, Neighbourhood Renewal funding and LFC investment.

The Board noted that in July 2004, planning permission had been granted for a new 60,000 seat stadium; and that the planning conditions and Section 106 agreement had required a range of improvement works to be implemented before the new stadium could be opened. The Board was advised that in July 2007 the new owners of LFC submitted a new planning application for a re-designed stadium which would initially have a capacity of 60,000, but could be subsequently expanded to accommodate 76,000.  The Board noted that the City Council had indicated that it was likely that similar conditions and Section 106 agreement terms would be applied to the new application.

Board Members noted that an NWDA Board Task and Finish Group had met on 31 August 2007 to consider the project in detail and, had agreed that overall the project would bring about significant economic, tourism and learning opportunities, together with environmental and social benefits.  NWDA funding would be additional to any other source of private or public sector investment and would be targeted on securing benefits that would not otherwise occur. 980 gross direct jobs and 302 net additional full time jobs would be generated.  The Task and Finish Group had therefore agreed to recommend to the main Board that the Agency should invest in the project, subject to a number of conditions.

The Board agreed that it was appropriate for a Joint Venture Company (JVC) to be established to oversee the implementation of the project and the future regeneration plans for the area.  The JVC would be governed by a Board which would have representation from Liverpool City Council (LCC) and LFC.

The Board approved Agency investment subject to a number of conditions.

93/05 CENTRAL SALFORD STRATEGIC CONNECTIONS
 
The Board noted that, given the rapid expansion of Salford Quays and its increasing importance as a major economic site within the region (including the forthcoming Media City Development) enhanced transport infrastructure was required  to ensure that the location would be sustainable. 

The Board was advised that Central Salford Strategic Connections would support major improvements on the Eccles to Manchester City centre Metrolink line; and would create turnback facilities at Cornbrook as well as other associated infrastructure including new sidings at the depot.  The Board noted the importance of Cornbrook station in that it connected the existing Altrincham to Bury line with the Eccles to Manchester City Centreline.  Also in the future it would be a connection point for the proposed extensions of the Metrolink network to Didsbury and Manchester Airport.

The Board noted that in addition, the project would include the purchase of rolling stock, with three Alsando Trams to be acquired.  The Board noted that the additional rolling stock would double the capacity on the line from five trams per hour to 10.  This would result in significant wider benefits along the whole route corridor and not just Salford Quays, thus helping to stimulate investment in the St George’s, Ordsall and Old Trafford districts. 

At its meeting on 19 September 2007 the Infrastructure Sub Committee had reviewed the project in detail and had agreed to recommend that the Board should approve Agency investment, subject to a number of conditions.

The Board agreed that the Agency would provide funding towards the project subject to a number of conditions.

The Board also agreed that the Agency should further develop its policy approach to investment in economic development schemes with a transport element, to provide a clear framework for future activity.

93/06 AIR SERVICES DEVELOPMENT FUND (ASDF)

The Board received an update on the delivery of ASDF.  The Board was reminded that ASDF was created in 2006 to stimulate greater regional connectivity through supporting growth of the region’s airports and to encourage inbound tourism and business opportunities.  The Board noted that the ASDF budget was a four year programme from 2006 to 2010, with targets of 8m additional passengers; £48m additional airport turnover; 250 jobs to be created; and £33.5m private sector leverage.

An ASDF Board had been established to oversee implementation, chaired by.  NWDA Board Member Anil Ruia

The Board noted that the ASDF Board had agreed to support Liverpool, Manchester and Blackpool with their proposals; and that the small residual balance within the fund would be made available to support Carlisle should a proposal be developed. The Board endorsed the Agency’s decision not to seek any further proposals and to close access to ASDF funds by December 2007.

The Board welcomed the Agency’s intention to continue to maintain the good business relationships that were in place with the regional airports, recognising their contribution to generate economic wealth by passenger growth and regional connectivity within a globally competitive aviation market.

93/07 DELIVERING A SUSTAINABLE RAILWAY

The Board noted that on 24 July 2007, the Secretary of State for Transport launched “Delivering a Sustainable Railway”, the Government’s 30 year White Paper on rail, as well as the High Level Output Specification and the Statement of Funds Available. 

The Board noted that the Infrastructure Sub Committee at its meeting on 19 September had discussed the content and implications of the White Paper.

The Board was advised of the key issues within the document and noted that:

• Whilst Government considered it impossible to accurately forecast demand 20-30 years into the future and that longer trains and new technologies would deliver extra capacity on existing lines, should future demand exceed expectation, investment would need to be accelerated; and the London – Birmingham – Manchester corridor could be one of the first areas where additional intervention could happen.
• Government completely ruled out maglev and freight only lines given their inflexibility; and in the case of maglev, expense. 
• Government was committed to an additional £200m to enable work to start on a strategic freight network to provide attractive choices for shippers, in addition to other funding such as Productivity TIF. This was likely to benefit ports in the North West.  The region was also likely to benefit from the route for European sized freight rolling stock to the main conurbations outside London.
• The White Paper committed to reduce journey times between Liverpool and Manchester to 40 minutes; and Manchester to Leeds to 43 minutes. 
• There was also a commitment for Government to procure an additional 1300 rail vehicles up to 2014; and whilst it would appear that most of those vehicles would go to the South East, there was a commitment for selective train lengthening for services in Northern City Regions. In addition DfT would develop its own rolling stock strategy. which would impact on the Northern Way proposal to invest in rolling stock in 2007/08, as DfT was not looking for any funding contribution from Northern Way.

The Board welcomed the White Paper and also endorsed the Agency’s decision to commission a piece of work with Network Rail and the NWRA to examine the economic benefits of key schemes in the North West Route Utilisation Strategy, including the Manchester Rail Hub.  The Board also agreed that NWDA should, in advance of future revisions to national rail policy, continue to develop the economic case for further improvements to Cross Pennine routes and further capacity on main line routes to London.
 
93/08 NWDA RESPONSE TO THE PLANNING WHITE PAPER “PLANNING FOR A SUSTAINABLE FUTURE”.

The Board noted that the Planning White Paper plus four related consultation documents had been published on 21 May 2007.  The documents set out a package of reforms to the planning system, taking forward recommendations from Kate Barker’s review of land use planning and Sir Rod Eddington’s transport study.

The Board noted that the Infrastructure Sub Committee had considered the White Paper and consultation documents in detail and had agreed the Agency’s response to the consultation. 

The Board noted the key points within the Agency’s response, which were that:

• The Agency welcomed in principle proposals to establish a new Infrastructure Planning Commission to make decisions on nationally important projects; and the proposals to improve procedures to deal with nationally significant infrastructure projects. However the process for dealing with projects which fell outside the Commission’s remit should be clarified.
• The Agency had expressed concern that the White Paper failed to recognise the contribution that Regional Economic Strategies could provide towards the  framework for the key infrastructure needs for the next 25 years, stating that such a framework would be set by National Policy Statements that would be prepared by Ministers.  However the Agency acknowledged that this may have been overtaken by the SNR requirements for a single integrated regional strategy.
• The Agency supported the proposals in respect of the IPC’s consultation and approval processes. 
• The Agency also supported the move to reduce the volume of applications for minor household development as well as the related proposals concerning appeals, managing large scale applications and householder permitted development rights.

The Board was also advised that the White Paper included an announcement of a new Planning Policy Statement on “Planning for Economic Development” and other proposals for a new test to promote competition and improve consumer choice.

The Board noted that planned changes to the planning system were significant and would need to be clearly communicated by Government, to prevent a period of change and reform resulting in slower decision making.

93/09 APPOINTMENT OF CONSULTANTS

The Board noted that a report by NAO had recently advised Government that NAO’s and the Public Accounts Committee’s previous recommendations on the use of consultants must be implemented by the public sector.  The Board also noted that as a move to drive efficiencies and improve expenditure control the Agency had already reviewed its procedures to appoint consultants.  In the light of this review and NAO’s advice to Government the Agency had revised its policy on the appointment of consultants.  The policy took into account NAO’s definition of consultancy; and a revised nominal coding structure.

The Board welcomed and endorsed the policy, which would be reviewed by the Audit Committee on an annual basis.

93/10 CHIEF EXECUTIVE’S REPORT
 
a) ERDF Update      
The Board noted that following comments from the European Commission on the initial draft, the final draft of the North West Operational Programme (NWOP) would be re-submitted to the Commission shortly; and a final decision from the EC was expected to be received in November 2007.  Negotiations were going well.

The Board was advised that the shadow Programme Monitoring Committee (PMC) would convene on 8 October.  The PMC would be small and focused and include representation from GONW, NWDA, NWRA, SRPs, private sector and socio economic stakeholders.  The GONW Regional Director would chair the PMC, however the NWDA Chief Executive would have full Accounting Officer responsibilities on behalf of the NWDA Board. 

The Board also noted that work was progressing to ensure a smooth transition of the programme from GONW to the Agency. The transition was a major change programme for the Agency and was being appropriately managed, with all major risks and issues identified.

b) DTI Annual Report and Accounts 2006/07     
The Board was advised that in July 2007, DTI had published its final Annual Report and Accounts 2006/07. The Board noted the key achievements for the financial year and the DTI’s performance against its eleven PSA targets.

In particular the Board noted that DTI had cited Business Link as a real success; and had acknowledged the strong partnership between SBS and RDAs which had enabled this achievement. 

The Board welcomed the reference within the report to Daresbury Science and Innovation Campus as an example of a successful RDA funded project.

c) English Partnerships Annual Report 2006/07       
The Board noted that also in July 2007, English Partnerships (EP) published its Annual Report and Financial Statements 2006/07.  The report had confirmed that EP had exceeded all its core output targets, and compared to 2005/06 programme receipts were reported as being up by 34% and private sector funding up by 51%.

The Board also noted the key highlights within the report that related to the North West region, which  included:

• The completion of the Liverpool Kings Waterfront.
• The establishment of the English Cities Fund which has funded the start on site for St Pauls Square in Liverpool and secured commitment for mixed use schemes in Manchester and Salford.
• Omega Employment Park in Warrington.

d) Audit Commission Annual Review 2006/07     
The Chief Executive reported that the Audit Commission’s Annual Review was published in August.  The Review illustrated the Commission’s achievements against its five strategic objectives; and demonstrated how throughout the operational year it had focused on developing its core business and achieving improved value for money for tax payers.  The Review also included a range of activities that the Commission had undertaken throughout the year; as well as a number of case studies and examples of good practice.

e) NHS North West Review      
The Chief Executive reported that in July 2007, Alan Johnson the Secretary of State for Health had announced a year long review of the NHS which would also include an engagement exercise with patients, NHS staff and the general public.  The Board noted that the review, which was being led by Health Minister Professor Sir Ara Darzi, would seek to:

• Ensure that clinical decision making was at the heart of the NHS’s future and service delivery.
• Improve patient care, including high quality, joined up services.
• Deliver more accessible and more convenient care integrated across primary and secondary providers.
• In time for the 60th anniversary of the NHS, establish a vision for the next decade of the health service.

The Board received a copy of the NW Strategic Health Authority outline framework and programme management approach for the NW element of the review.  The Board noted that as part of the review a constitutional debate would take place with strategic partners in the region during June/July 2008. 
 
f) Unitary Authority Proposals     
The Board noted that, following the announcement on 25 July of the nine Unitary proposals, Government had published its approach for implementation, including the two Cheshire Unitaries.  The Board was advised that final decisions would be taken if and when necessary primary legislation was enacted in the Autumn.

The Board noted that Government had invited comments on the proposals to be submitted by 28 September 2007.  The Board agreed that, should the Agency be asked to provide any contribution towards Cheshire’s response, the content of that contribution would be confined to matters that affect the way in which the Agency could work effectively with new authorities in support of the development and delivery of the RES.

The Board also agreed that, following Government’s decision not to proceed with a Unitary Authority for Cumbria, the Agency would work closely with all local authorities, Cumbria Vision and GONW to further develop delivery of the RES within the framework provided by SNR.
 
g) RES Advisory Group    
The Board received details of the membership and remit of the RES Advisory Group, which had been established to provide guidance on the implementation of the RES; to ensure that the range of diversity and key actions in the RES were fully covered; and to provide an effective mechanism to ensure that future monitoring of the RES was represented and reported.
 
h) The Future of Daresbury Science and Innovation Campus     
The Board received an update on developments with the Daresbury Science and Innovation Campus. 

The Board was reminded that the Agency had agreed to invest £50.3m over ten years in the Campus; and that a Special Purpose Vehicle (SPV) had been set up to manage the Campus which was chaired by Professor Sir Martin Harris.

The Board noted that progress to date had been good.  Last year Government had announced that Daresbury as well as Harwell Innovation and Science Campus in Oxfordshire were the only two major science campuses in the UK.  The Board was advised that at present Daresbury was attracting private sector companies from the region, UK and overseas.

The Board noted that the Department of Innovation, Universities and Science had advised that to take further development forward it would prefer a public private partnership with a long term investor (20 years) with the capacity to invest significant finance should be established.  The Board agreed in principle,  therefore, that the most appropriate way forward would be to establish a Joint Venture Company subject to final agreement on the process and partners.

i) Lake District World Heritage Site   
As requested at the July Board, Board Members received detailed information on the cost implications and potential risks for the Agency in respect of the Lake District National Park’s bid to be a World Heritage Site.  The Agency investment would contribute towards the cost of the preparation of the application to UNESCO.

The Board was reminded that in 2006 the Chief Executive wrote to the Chairman of the Lake District National Park to clarify the importance of the Lake District’s economy and confirmed the Agency’s full support for the World Heritage Site bid provided that:

• Detailed consideration would be given to the proposed boundaries; 
• The Lake District’s principal settlements were excluded from the proposed designation area and buffer zones.

The Board noted that discussions continued amongst partners about the designated boundary; and agreed that the Agency’s involvement in the project would provide greater opportunity to uphold its position on the issue.  The Board also agreed that support must be conditional on the WHS partnership having continual regard for the economic impact of any boundary decision.

j) NWDA Business Plan 2007/08 Quarter 1 Progress Report and Progress Report on Key Performance Indicators     
The Board noted the reports in respect of the Agency’s performance.

k) Investors in People: Re – Accreditation     
The Board noted that early next year the Agency would undergo IiP re-accrediation.

l) Strategic Review Meeting with DBERR Officials   
The Chief Executive reported that on 21 August he and the NWDA Chairman met officials from the Department of Business, Enterprise and Regulatory Reform (DBERR) to discuss the Agency’s 2006/07 Annual Performance Report.  The Board noted the specific issues that were discussed in detail:

• Progress on RES objectives (year one).  The baseline report was appreciated by Whitehall colleagues.
• Progress on the Independent Performance Assessment Improvement Plan.
• The implications for the region of the Sub National Review.
• The Agency’s performance in respect of our lead role responsibilities.
• The Agency’s commitment to the Northern Way objectives.
• Progress on specific projects (Media City, West Cumbria Masterplan, Daresbury and issues in respect of Blackpool).
• The Agency’s financial management and performance management, including our evaluation arrangements.

The Board welcomed the fact that the meeting had been very positive; and noted that a further meeting with a DBERR Minister would take place in mid 2008.

m) OECD Reviews of Regional Innovation – The North of England   
The Board noted that OECD had launched a series of reviews of regional innovation and the North of England which covered the three Northern Way RDAs was one of the studies in the series.   The Board noted that in respect of the Northern Way the review would seek to:

• Assess the overall performance of the three Northern regions in terms of a standard set of competitiveness and innovation indicators;
• Evaluate the functioning of the innovation system in respect of Strategy; Barriers and incentives; policies; and governance and funding flows.

The review would include both quantitative and qualitative analysis, with adaptations to the specific needs of the North of England.  Data collection and analysis was already underway and would conclude in October.  Site visits to each RDA region would take place in November 2007; and the final report would be available in June 2008.

n) Project Know It All (KIA) 
The Chief Executive reported on the progress the Agency had made to implement project KIA which was a management information system that sought to make all information across the Agency more accessible to staff and ensure that all documentation was held in a more structured and organised fashion.  The Board noted the benefits of KIA to Staff and Board Members.
 
93/11 FINANCE DIRECTOR’S REPORT
 
The Board noted the Agency’s financial position for the period ending 31 July 2007.

The Finance Director reported that considerable work had been undertaken by RDA Chief Executives and Finance Directors to agree joint proposals for administration efficiencies to help deliver savings across the RDA network for the CSR period 2008/11.

The Board welcomed the news that the Agency had developed a clear implementation plan to ensure that from October 2007 the operation of ERDF funding would be efficiently administered.  A full project plan had been agreed and staff recruitment was underway.

The Board noted the Delegations for the period 14 July 2007 to 10 August 2007; and approved a Single Tender Action in respect of OciusB2 (the Internet Connection at Daresbury).

93/12 CORPORATE RISK REGISTER

The Board welcomed the opportunity to review in detail the Agency’s register of considered risks; and agreed that the process was a key factor in effective risk management across the Agency. 

93/14 CHAIRMAN’S REPORT

The Chairman made the following points:

• A full report on Agency expenditure against forecasts for the first 6 months of the year would be made available at the November Board meeting.
• Board members would be involved in the mid year review of progress against RES objectives, and had an important role to play in driving forward oversight of the actions on which they had a strategic role in ensuring delivery
• It would be important to ensure that implementation of the Sub National Review of Economic Development and Regeneration did not detract from delivery of ongoing priorities.  In particular, as new Government Departments became fully operational it would be important for the RDA to explain the integrated approach the region took to Science, Innovation, Business and Higher Education.
• The BBC Trust had visited Greater Manchester that week and had welcomed the integrated investment underway in Transport, Skills, Enterprise and Regeneration with Mediacity:uk as its core.

93/15 MINUTES FROM THE AUDIT COMMITTEE HELD ON 31 JULY 2007

The minutes were noted.
 
93/16 MINUTES FROM THE ENVIRONMENT SUB COMMITTEE HELD ON 12 JULY 2007

The minutes were noted.
 
93/17 MINUTES FROM THE MARKETING, COMMUNICATIONS AND TOURISM SUB COMMITTEE HELD ON 12 JULY 2007

The minutes were noted.
 
93/18 MINUTES FROM THE RURAL ADVISORY GROUP HELD ON 30 JULY 2007
 
The minutes were noted.
 
93/14 DATE AND TIME OF THE NEXT MEETING

The next meeting would take place at 8.00am on 18 October 2007 at the Manchester Central Conference Centre.