South West Regional Development Agency

MINUTES OF THE 24th BOARD MEETING 23rd July 2001, 
Sterling House, Exeter 
 
 
 
Present:

• Sir Michael Lickiss Chairman
• Doris Ansari
• Cairns Boston
• Peter Chalke
• Michael Leece
• Alf Morris
• Stella Pirie
• Jeremy Pope - Deputy Chair
• Jonathon Porritt
• Jill Barrow Chief Executive
• Suzanne Bond Director of Strategy and Performance
• Caroline Bull Director Enterpirse and Innovation
• Nick Lewis Director of Corporate Services
• Colin Molton Director of Development
• Simon Hodgson Head of Corporate Affairs
• Melanie Farrant Chairman's Office

Guest: 
Thos Shearer Government Office for the South West

Apologies Received: 
Nigel Costley 
Helen Holland - Deputy Chair 
Tim Parker 
 
 
 
1 Minutes of the 22nd and 23rd Meetings 
 
Minutes of the 22nd and 23rd meetings were agreed as a correct record.  
 
2 Matters Arising 
 
Doris Ansari thanked staff for arranging the visit to Porton Down which had been very helpful, but noted that the site still required a large employer to bring about improvements such as better public transport in the area. 
 
3 Chairman's Report 
 
Members noted the commitments undertaken by the Chairman since the last Board meeting. In particular, the Chairman drew attention to:

• Secretary of State and Ministers' meetings with RDA Chairs - Patricia Hewitt intended that such meetings should be held every six weeks
• The RDA Chairs' Forum in Manchester - following this visit the Chairman suggested SWRDA should visit Manchester to see whether any of the plans and developments there could be adapted for the South West, in particular Plymouth, Bristol and Swindon
• RDA Chairs' responsibilities had changed and he was now leading on tourism and contacts with DCMS, which he hoped would be beneficial to the South West

Doris Ansari congratulated the Chairman on his reappointment for a further year until December 2002. 
 
4 Chief Executive's Performance Report 
 
Jill Barrow reported the Agency's performance over the year 2000-01 as would be presented in the Annual Review. The format from March 2002 would include the new targetry framework. Overall the RDA had met its targets for 2000-01. Although there were some under- and over-achievements, there were no areas of concern. 
 
Points raised

• Future reports would show how much additional funding the Agency attracted to the region
• Marking SWRDA's performance against that of other RDAs was difficult because of regional differences in budgets and programmes, but some comparisons could be drawn against the targets in the Chief Executive's report
• Government departments now accepted that RDAs could not be assessed on performance in areas where other organisations or departments were responsible for delivery. Allocation of funds and targetry were still therefore to be finalised

Board Decision 
The issue of comparison of RDAs' performance would be an item at the next Board meeting. 
 
5 Developing the Corporate Plan 2002 - 2005 : Summary Outcomes of Regional Workshops 
 
Jill Barrow reported that the RDA had been involved in a lengthy consultation process involving 300 participants in a series of workshops. Key themes and priorities had recurred at all workshops. Full outcomes were available on the website. The second phase of the consultation would begin in September involving a regional conference, and the Board and Regional Assembly meetings in October, before the plan was signed off by the Chairman in November and submitted to government in December.  
 
Until the budget for next year was confirmed it was not possible to draw up a framework to allocate funding to RDA priorities. However, there was a danger of raising expectations unless priorities were defined. 
 
The Regional Assembly now had a role and funding to scrutinise the Agency. The Assembly had set a target to have its own strategy in place by April 2002 into which the Regional Strategy would fit. There was a public misconception that the Assembly should approve the Agency's Corporate Plan. It was important that the RDA continued to build a constructive relationship with the Assembly and that together areas of work were established that could be jointly pursued. These could include bringing 14 year olds and businesses together in education/business partnerships, and planning and infrastructure issues that had an economic impact such as waste. The RDA was expected to lead strategically within the frame of economic prosperity and maximising funding and investment into the region.  
 
RDA Chairs did not hold a collective view about regional governance. Strong views previously held by the North West and North East had been modified as changes in the way RDAs and Regional Assemblies worked together had occurred over the past twelve months.  
 
Board Decision 
The main interfaces between the RDA and the Regional Assembly would be an item at the next Board meeting. 
 
6 Organisational Structure 
 
Jill Barrow explained that the changing role and expectations of the RDA required modifications to the organisational structure. She outlined broad principles and proposals which had been agreed by the Chief Executive and Executive Team. These included area teams which were primarily responsible for geographic areas but also had some functional responsibilities. Higher profile area operational managers would provide the public face of the Agency. The proposals did not involve additional staff or offices although the benefits of local offices in Gloucestershire and Wiltshire were acknowledged. Jill Barrow would look at the cost benefits of these additional offices. 
 
The role of Board Members in the new structure was considered. Greater contact between Members and the operational manager in their area was envisaged.  
 
Board Decision 
The proposals were endorsed in principle. A report would be made to the next Board meeting clarifying the Chairman's and Chief Executive's roles; proposing contact between Board Members and area operational managers; and outlining how Members could help to develop better relationships with large organisations and companies in their area. 
 
 
7 Osprey Quay, Portland, Dorset 
 
Commercial in confidence 
 
 
8 Objective One - Finance Cornwall Ltd 
 
Caroline Bull outlined a report which set out the background to Finance Cornwall Ltd and the implications to the RDA of becoming a member and guarantor. 
 
Members were keen to maximise funding opportunities into Cornwall but had serious reservations about involving the RDA in Finance Cornwall Ltd.  
 
Board Decision 
It was agreed to defer the decision on the RDA's involvement with Finance Cornwall until the Agency was fully reassured on the capability of Finance Cornwall Ltd. 
 
9 Higher Education Innovation Fund - South West Regional Bid 
 
Alfred Morris declared an interest in this item. 
 
The development of a pan-regional South West bid to the Higher Education Innovation Fund (HEIF) was outlined by Caroline Bull, and endorsement of an in-principle commitment to RDA match funding sought. The bid involved Exeter, Plymouth and Bournemouth universities and would lead to a region-wide collaborative application. If successful, £5m from the HEIF would be supplemented by £1m Objective One funding and £4m match funding from the RDA. 
 
The Chairman was keen to see the RDA working in a positive partnership with all of the HEIs across the region. However, concerns were voiced that this particular scheme was lacking in innovation and unimaginative, and questioned what value it would add. The Board agreed it would require some recrafting once HEFI funding was confirmed. 
 
Board Decision 
The Board agreed to endorse the in-principle commitment, subject to appraisal, to provide match funding of up to £4m for the period 2002-05 to support the bid's key areas of activity, subject to a number of conditions as set out in the report. 
 
10 International Trade 
 
The action plan to implement the International Trade Strategy had been drawn up following wide consultation and a series of workshops. It was intended to be practical, straightforward and achievable based on the resources available. It would link various areas of the RDA's work and promote international trade in the region. 
 
The progress of the Strategy was noted. 
 
11 Internal Audit Annual Report 
 
A report had been circulated that outlined the findings of the internal audit conducted by the Agency's auditors, and the work of the Audit Committee over 2000-01.  
 
The Board noted that the Internal Audit Annual Report and the Annual Audit Plan had been approved by the Audit Committee. 
 
12 Internal Communications for Board Members 
 
The current sources of information and forms of communication to keep Members up to date with the Agency's work had been set out in a report circulated with the agenda. It was agreed that area briefings for Members should be formalised, particularly in Gloucestershire and Wiltshire. Board Members would also be invited to directorate and corporate away-days. 
 
Board Members noted the report. 
 
13 Attitude and Awareness Research 
 
Following the annual attitude and awareness research (key findings of which were set out in a report circulated to Members), a regional marketing campaign had been drawn up. It was proposed that this should include TV, poster and direct marketing to businesses in order to reinforce the RDA's achievements.  
 
Points raised

• Targeted marketing to key people in the region could be more effective that a wider marketing campaign. A focus on aftercare may be a better use of the Agency's resources
• It was suggested that concentrating on improving key partners' satisfaction levels should be the priority in respect of low customer satisfaction levels with the RDA
• Finalisation of the Corporate Plan and the Agency's focus for the next three years would make marketing the RDA easier.

The Board noted the research report and associated action. The Communications and External Affairs Strategy would be included as an item at the October Board meeting. 
 
14 Annual Review and Financial Statement 
 
An advance copy of the Annual Review 2000-01 had been circulated to Members. The Chairman's urgency action had been used to sign off the final document. 
 
15 Regional Supply Office 
 
Maurice Masters, Head of the Regional Supply Office (RSO), joined the Board to give a presentation on the work of the RSO, its team, its links with other organisations, and the supply chain structure. Increased customer awareness was leading to greater demand for locally sourced products. The RSO was currently working with the Sainsbury's Regionalisation Manager to develop regional links for the organisation. 
 
16 Regional Centre of Excellence 
 
Colin Molton gave a presentation on the Regional Centre of Excellence and Funding Forum. Via a Regional Co-ordination Centre, a number of funding agencies could be co-ordinated and information made available on the availability of funding opportunities. A working group had been established involving the RDA, GOSW, the Countryside Agency, Sport England, UWE, the Community Fund, the Regional Assembly, CABE, Sustainability South West and the South West Forum to progress this initiative. 
 
17 Standing items 
 
a. Executive Reports 
Strategy and Communications Directorate

• The Hand in Hand Conference had been extremely successful
• The Regional Equalities Meeting would now be held in late Autumn as the Regional Assembly wished to be involved
• The Communications Steering Group would meet in September

Enterprise and Innovation Directorate

• SWRDA had achieved the second highest number of inward investors into its region in the first quarter. However, UK-wide activity was down and many regions had only one project or less. The six projects in the South West were well spread
• Very few inward investment enquiries were being received via Invest UK. There was widespread concern that this would be a very poor year for inward investment especially in view of the global downturn. Generating enquiries in areas or sectors not previously used was extremely difficult
• A paper on the funding of inward investment was suggested for a future Board meeting
• The first meeting of the Skills Select Committee had taken place

Development Directorate

• Departmental approval had been received for the Gloucester Docks project
• UWE was currently undertaking a mapping exercise of regional transport infrastructure. The RDA would be working with the Rail Passenger Users Association and the Regional Assembly to examine transport opportunities in the South West

b. Policy Consultation Responses 
The RDA's response to Ofgem's consultation document 'Transmission Access and Losses under NETA' was noted. 
 
c. Board Advisory Sub Group Minutes: Summary of Key Points 
Chairs of the sub groups whose work was summarised highlighted key issues. 
 
d. Decisions taken using Urgency Procedures 
Two decisions taken by the Chairman using urgency procedures were noted. 
 
e. Documents Sealed 
Documents sealed between 1 May to 30 June 2001 were noted. 
 
f. Loan Write Offs 
Loan write offs between 1 April - 30 June 2001 were noted. 
 
g. Any Other Business 
There was no other business. 
 
h. Date of Next Meeting 
Monday 17 September 2001 at North Quay House, Plymouth. 
 
 
 
 
APPENDIX 1 
 
Items listed for future action in minutes