South West Regional Development Agency

SOUTH WEST OF ENGLAND REGIONAL DEVELOPMENT AGENCY 
MINUTES OF THE 68th BOARD MEETING 19 September 2005 
Sterling House, Exeter 
 
Present: 
 
Juliet Williams - Chairman  
Nick Buckland - Deputy Chairman 
Cathy Bakewell - Board Member 
Christine Channon - Board Member 
Nigel Costley - Board Member  
Alan Courts - Board Member 
Brian Kemp - Board Member 
Jonathon Porritt - Board Member  
Christine Reid - Board Member  
Judith Reynolds - Board Member 
Colin Skellett - Board Member 
Harry Studholme - Board Member 
Eric Thomas - Board Member 
 
In attendance: 
 
Geoffrey Wilkinson - Chief Executive 
Suzanne Bond - Director of Strategy and Communications 
Nick Lewis - Director of Corporate Services 
Colin Molton - Director of Operations and Development 
Stephen Peacock - Director of Enterprise and Innovation 
Graham Harrison - Head of Sector Development (item 4 only) 
Simon Hooton - Head of Policy (items 5 and 6) 
Claire Gibson - Head of Planning, Transport and Environment (items 5 and 6)  
Pat Steward - Planning Manager (items 5 and 6) 
Jeff Chinnock - Corporate and Parliamentary Affairs Manager 
Caroline Bloodworth - Board and Policy Advisor 
 
Apologies: 
 
Duncan Hames - Board Member 
 
1. MINUTES FROM 66th and 67th MEETINGS AND MATTERS ARISING 
 
The minutes were agreed as a correct record. 
 
Colin Molton confirmed that the report on property intervention in Cornwall had just been received in draft form, and would be available in about four weeks time. 
 
There was discussion about progress within the region following the Olympic bid decision in July most particularly in regard to infrastructure and transport. Unlike most other regions outside London, the region had to deliver a core part of the games, namely the sailing events at Portland. 
 
It had been agreed with Sport England South West that a vision and action plan would be developed. In addition meetings with the Sailing Academy and Portland Port to discuss specific issues for that area were planned. There was concern that there had been little engagement with local government in the region since the announcement. 
 
It was confirmed that there should be a formalised structure with both a representative group and an implementation group in place by the end of 2005. It was agreed that there would be a regular progress update provided for the Board. 
 
There was positive feedback following David Miliband's recent visit to Bristol. It had been considered successful with a consistent approach being adopted by all West of England partners.  
 
2. CHAIRMAN'S REPORT 
 
The Chairman had agreed to take over as Chairman of SWESA from Brian Kemp.  
 
3. CHIEF EXECUTIVE'S REPORT 
 
Geoff Wilkinson explained that the content of the Chief Executive's report had been changed in line with the different RDA reporting structure for 2005/6. With regard to the 2004/5 report led by GOSW, SWRDA had received an overall marking of "good". A copy of the full report was available on ERIC or by request from the C&PA team. 
 
Geoff Wilkinson explained that there would be an opportunity for Board members to attend a specifically focussed Freedom of Information awareness session as part of the Induction programme planned for new Board members on 2 December. There were also more general awareness raising sessions planned for staff on 11, 12 and 21 October which Board members were also welcome to attend. 
 
Q1 Performance Report 
 
Suzanne Bond explained that the new performance report was a trial for this quarter- the formal report would be submitted to DTI at the six and twelve month points. The report included a narrative section which reported against the Areas of Increased Emphasis, a projection against outputs, spend update and progress against service first indicators. Although the system was intended for 2005/6 only, it was likely that it would be run in tandem with CPA/IPA in 2006/7. 
 
Nick Lewis updated the Board on changes to measurement of non-cashable benefits within the Efficiency Plan. As a consequence, this had resulted in lower Q1 performance for the Agency. He agreed that benchmarking against other RDAs would be beneficial. 
 
Discussion focused on how the performance report might in future provide information on issues or projects where progress was slower than anticipated or where there was a risk of failure. It was agreed that information from the risk analysis framework would help to improve the performance assessment and allow the Board to adequately carry out its scrutiny role.  
 
It was highlighted that the first report was work in progress and that the Board comments would be taken into consideration when developing the half year report. It was also agreed that exchanging performance reports with other RDAs would be beneficial.  
 
Q1 ACCOUNTS 
 
Nick Lewis reported that the financial position in regards to spend was not directly comparable to last year because of the addition of Business Links and Modernising Rural Delivery funding. The trend, as with other RDAs, was that there would be increasing pressure on the current account budget. There was continuing discussion with Treasury on the guidance that all write offs had to be met from current funds, this would cause the Agency major problems when purchasing sites. 
 
There was also discussion about the potential impact of Agency staffing numbers which were currently 10% below agreed establishment levels. It was suggested that levels may need to be reviewed twice yearly rather than the current practice of one annual review.  
 
4. AEIGT (Aerospace Innovation and Growth Team) 
 
Stephen Peacock introduced Graham Harrison, Head of Sector Development. Graham underlined the importance of the Aerospace industry to the South West and explained that the DTI had passed the task of engagement with the sector to the RDAs.  
 
The Aerospace Innovation and Growth Team (AeiGT) process was commissioned in 2002 by DTI to produce a 20 year vision for the sector.  
 
The new vision was broken down into five sections, with Board discussion focussing on the Technology Strategy. Graham Harrison outlined the benefits to the region of the strategy. It would bring both private and public sector investment, new R&D facilities, supply chain support and collaboration with HE. The potentially difficult issues for the RDA were that the projects involved were very complex, identifying regional outputs would be a challenge and state aid issues needed to be resolved. 
 
It was explained that individual projects resulting from this strategy would be appraised separately, with any individual investment of more than £3m being put before the Board in keeping with agreed protocols.  
 
 
Board decision 
 
The Board endorsed the approach set out in the paper to the AEIGT opportunities described.  
 
5. FINANCIAL DELEGATIONS  
 
Nick Lewis explained that there had been no significant changes in financial delegations for three years and that the paper reflected the increase in Agency budgets and in the use of delegated funds. 
 
Board decision  
 
The Board approved the revised delegations. 
 
6. REVIEW OF THE REGIONAL ECONOMIC STRATEGY (RES) 
 
Suzanne Bond explained that the draft RES, which would be formally launched on 20 September in Torquay, included comments received from stakeholders following a comprehensive consultation exercise. 
 
Simon Hooton outlined the key changes within the RES, including "mainstreaming" rural delivery within the delivery plan, the stronger emphasis given to sustainable development, and a revised approach to sectors. Board members welcomed the clarity given within the RES to the responsibilities of the public and private sectors. It was planned to include a summary of the formal responses made by stakeholders on the draft RES to demonstrate how these have influenced the final document. 
 
Formal congratulations and thanks were offered to Simon Hooton and his team for their hard work over the past months.  
 
7. REGIONAL ECONOMIC STRATEGY (RES) AND REGIONAL SPATIAL STRATEGY (RSS) 
 
Colin Molton provided background information on the potential disparity between growth scenarios emerging from the RES Review process and those within the RSS. It was noted that the two strategies work to different timeframes (with the RES looking at 10 years and the RSS, 20) but that complementarity between the two strategies was essential. Harry Studholme, RDA Board member with the lead role on the RSS, reported on some of the difficulties faced by the Regional Assembly in developing growth projections and the changing planning environment when compared to the existing RPG10 guidance. 
 
The key issue to emerge was the need to plan adequately for forecast levels of economic growth in order to ensure more sustainable outcomes. 
 
The outcome of similar discussions in the South East was outlined and caution given against standing apart from the democratic process of producing a Regional Spatial Strategy. 
 
Other issues discussed included affordable housing and needs of key workers; importance of the rural economy; pressure on employment land from housing; infrastructure implications; deliverability; links with the Regional Funding Allocations and the need to communicate more clearly what the RSS comprises. 
 
8. BUSINESS LINKS 
 
(Colin Skellett declared an interest as a member of Business Link West). 
 
Stephen Peacock updated the Board on progress made since the transfer of Business Link funding to the Agency in April 2005. He explained that he had also been part of continued national negotiations with the Small Business Service. 
 
In the South West, Business Links had proposed that operations would be consolidated into two operational zones: North (Gloucestershire, West of England and Wiltshire) and South West (Devon, Cornwall and Somerset), with Dorset entering into a strategic alliance with the North. There would be a period of sub-regional liaison on the proposals during the autumn.  
 
 
9. STANDING ITEMS 
 
a. Projects Approved 
 
Noted.  
 
b. Policy Consultation Reponses 
 
Noted. 
 
c. Summary of Board Advisory Group minutes 
 
None 
 
d. Decisions taken using Urgency Procedures 
 
None. 
 
e. Documents Sealed 
 
Noted. 
 
f. Loan Write Offs 
 
Noted 
 
g. Audit Committee minutes 
 
Noted.  
 
h. Remuneration Committee minutes 
 
None.