 |
MINUTES OF THE FORTY SEVENTH MEETING OF
SOUTH EAST ENGLAND DEVELOPMENT AGENCY
HELD ON 2ND MAY 2003 AT SEEDA HEADQUARTERS
Present:
James Brathwaite CBE (Chairman)
Professor Sir Clive Booth (Deputy Chairman)
Elizabeth Brighouse
Poul Christensen
Robert Douglas
Cllr Sarah Hohler
Cllr Keith House
Janis Kong OBE
Mary McAnally
Terry Mills
John Peel
Dr Peter Read CBE
Cllr Ken Thornber CBE
In attendance:
Anthony Dunnett (SEEDA Chief Executive)
Paul Martin (Regional Director, Government Office for the
South East)
Marianne Neville-Rolfe, Agency Secretary and Director, Strategy
and Corporate Services
Paul Hudson, SEEDA, Director, Development and Infrastructure
John Parsonage, SEEDA, Director, Learning and Skills
Charlotte Dixon, SEEDA, Director, Economic Inclusion and
Sustainability
Valerie Carte,r SEEDA, Rural Director (Item 5)
Charlie Burton, Founder, Business Strategies Ltd (Item 6)
Sir John Bourn, Comptroller and Auditor General, NAO (Item
7)
Michael Whitehouse, Assistant Auditor General, NAO (Item
7)
Erica Mason, Director, NAO (Item 7)
Valerie Box, Head of Secretariat
Item 1 Welcome and apologies for absence
Apologies were received from: Barry Camfield
Cllr Ken Bodfish
Item 2 Minutes of last meeting (20 March 2003)
Matters arising
- Minor amendments were made to the minutes of the previous
meeting to clarify their meaning.
It was noted that the membership of the Major Projects
Committee had changed
with John Peel
appointed in place of Ken Thornber.
Subject to the changes identified, the minutes were
approved as a correct
record of
the Board meeting on 20th March 2003.
Members agreed that they be posted on the SEEDA website,
but without reference
to commercially
sensitive projects.
- The first update on Broadband will be given at
the July Board meeting provided the
necessary information on uptake is
available. It was suggested that Chambers
of Commerce may be able to identify gaps
in provision, albeit this information
would
not be comprehensive. It was agreed that
this information should be sought from
BT.
Item 3 Declarations of Interest
- Robert Douglas, as chair of Surrey
Learning and Skills Council, expressed
an interest in Item 10(2) as Surrey LSC
is participating in the adults skills pilot
- Jim Brathwaite expressed an interest in
Item 4 as he is involved in various waste
and environmental companies
- Anthony Dunnett expressed an interest
in Item 10(2) [Uplands Community College]
as he lives in the affected village, but
had no prior knowledge of the scheme.
- Sarah Hohler, as a member of Kent County
Council, expressed an interest in Item 10(7)
which concerns a funding arrangement
between SEEDA and KCC. She withdrew from
the meeting whilst this item was discussed.
Item 4 SEEDA's Programmes for Sustainable Use of Natural
Resources
- Charlotte Dixon (Director, Economic Inclusion
and Sustainability) introduced this item
by noting that although SEEDA is not
the lead agency on many issues, the other
partners (Environment Agency,
Countryside Agency, DEFRA for example) value
the different perspective that SEEDA brings.
SEEDA's
ability to identify where these agendas interact
with the regional
economy was particularly valued.
The strategic added value that SEEDA can
bring is acknowledged as very high. The key
priority objectives are
set out in the
Regional Economic Strategy (see attached
slides).
- The Environmental Economy study that SEEDA
commissioned is available to members. The
report points out that
although the environment is often regarded
as a constraint to the
regional economy, it is in fact a key strength
and contributes nearly £7.8bn.
per annum.
- The linkages between the rural and sustainability
agendas, and connections with social
enterprises were demonstrated. SEEDA
is encouraging the
development of alternative
crops and
has organised
a symposium on industrial crops for
the pharma/bio industries. Charlotte
Dixon chairs a forestry
group working with partners
to address supply chain and other
issues.
- Water, waste and energy are the
main foci of the team. Water
demand and flood management present
serious challenges. Members discussed the implications
of importing water from other
parts of country to meet
the projected demand in the
growth areas.
It was agreed that the Water
Resource Forum should look into the
net annual effect of
climate change on rainfall
as climate change could exacerbate
the existing imbalance between supply
and demand across the region. SEEDA
has an important role
within the Water Resource
Forum to sponsor research and exert
influence for the provision of the
necessary investment in water management
infrastructure. The Environment
Agency is the main body
dealing with the complex development
issues relating
to water catchment.
ACTION
Charlotte Dixon to ensure
that the mapping of waste streams, commissioned by the
waste
management group, be circulated
to Board members
- Members discussed several issues relating to waste
management. Hampshire County Council, which works
in partnership with its
District Councils, was seen as an exemplar Local Authority
in waste management. The Chairman requested that
the mapping of
waste streams, commissioned by the waste management group,
be circulated to Board Members. There is a strong
need for fuller
involvement from the private and academic sectors to address
the issues of finding new uses for waste products. There
are good examples across the UK that could be copied
in the SE of
using waste management or re-manufacturing as social enterprises
involving craft training.
- SEEDA is the lead RDA on renewable energy, and
is co-ordinating the response to the Energy
White Paper. Mary McAnally pointed
out the opportunity for SEEDA to promote sustainable energy
generation in light of a ruling that will
make the generators pay for transmission
losses. Currently, a significant amount of electricity consumed
in the south is generated in the north. The scale of the
house building programme projected in the
SE presents a unique opportunity
to encompass new technologies, although it was acknowledged
that at the moment it is very difficult to
justify a proper business
case for using sustainable resources. There is considerable
experience in other parts of Europe that
should be used, addressing issues
such as the best connections back into the grid. Intervention
may be necessary to encourage a long term pricing policy
that overcomes the high capital cost of solar
and wind energy.
- The Chairman stated his wish to have a meeting
with Brian Wilson, the Energy Minister. He
also said that it was important
for senior politicians across the region to address the energy
issue and to encourage take up through the planning process.
Wind farms might be a more attractive proposition if they
were better designed. SEEDA is encouraging best practice
demonstration projects for various renewable
energy sources, including
wood
fuels. The Chairman would like a major project brought forward
that encourages the necessary investment and farmers to participate.
- The wide ranging discussion indicated how exercised
the Board was by this agenda and its determination
that it should
receive due attention. Members and the Executive were urged
to use their influence with SEEDA's public and private
sector partners, including related sector groups such as the
Property
and Construction group.
ACTION
Secretariat to arrange meeting between Chairman and Brian
Wilson
Item 5 SEEDA's rural agenda
- Valerie Carter presented this item, demonstrating how
rural issues are integral in all chapters of the
RES. Enterprise Gateways have an important role in encouraging
new businesses
in rural areas. Government views the RDAs as key
partners in ensuring rural revival, with an important influencing
and catalytic
role. SEEDA focuses on working with particular sectors
- tourism, local produce, health and safety, and landbased.
The market
towns initiative is expanding to around 100 small
towns across the region, driving best practice and helping
to redesign town
centres when their focus has changed radically.
- Rob Douglas indicated the importance of SEEDA
working with the LSCs which are starting
strategic area reviews into
the balance of educational provision and the distances that
have to be travelled to access provision
now that they have become
more centralised. This should be addressed through the Small
Towns Partnership, the first to be established in any region,
that draws information together for targeting delivery.
- A new SEEDA rural leaflet is in production. The
Chairman indicated scope for new industries
in the landbased sectors,
suggesting that Kent should develop the horticultural business
along Dutch lines. £700m of plants are imported annually.
- Recent discussions between the RDAs, DEFRA and
Lord Haskins, who has been conducting a wide
ranging review of DEFRA's
delivery, indicate that it is likely that the RDAs will take
on the economic aspects of the Countryside Agency's remit.
- Members noted the rural report.
Item 6 South East Economic Update
- Charlie Burton, the founder of Business Strategies,
one of the main economic metrics companies, presented
this item
and circulated his presentation. He pointed out that the
UK economy is still expected to grow at the long term average
rate this
year (2¼%), although business may be surprised at this
as consumer spending is increasing more slowly than GDP.
High public expenditure is fuelling economic growth, including
in
the consultancy service sector. The structural changes in
manufacturing industry underlined the importance of moving
up the added value
chain in a knowledge based economy.
- The risks associated with oil prices and household
debt burden were discussed. The key determinants
for the successful
long term performance in any region are educational qualifications
and skills. Although the quality of the infrastructure has
a high impact on performance, it is not a sufficient stimulant
for growth.
- Members agreed that this was a very useful presentation
and one that should be repeated regularly.
Item 7 Working with the National Audit Office
- Sir John Bourn, Comptoller and Auditor General
for at the NAO, introduced this discussion.
He was accompanied by
his private secretary, Erica Mason, the director in NAO who
has responsibility
for the RDAs, and Michel Whitehouse, the assistant Auditor
General. The RDAs had been asked to supply the NAO with examples
of Government
regulation and control hampering their ability to take initiatives
to productivity and economic development in their regions.
The NAO will then produce a report to Parliament that would
indicate a range of superfluous controls and regulations.
SEEDA had
submitted
wide ranging case studies, but Sir John asked members to
send him details of any others, such as bureaucracy stifling
the effectiveness
of the community and voluntary sectors to deliver.
- All the regions have provided valuable input,
with insufficient delegation and lack of
empowerment as recurring themes.
- NAO is keen for this project to be a success
and for the RDAs to see it as an auditor
who wants its client to
succeed. The NAO will look for ways to enable rather than
constrain projects.
They try to be proactive, especially in the value for money
work they undertake. Their message to Government is that
RDAs can
succeed if trusted to do so. There are other models in the
public sector where there is autonomy with accountability
against key
targets but with operational flexibility. Sir John hoped
that his report would be part of NAO's advocacy role with
the Treasury by pointing out that achievement of Government
aims can be damaged by time wasted responding to control mechanisms.
- Members discussed possible changes to the Audit
Committee structure to include non-executive
members. NAO agreed to
bring a report on the strengths and weaknesses of financial
management in SEEDA to the Audit Committee. Sir John challenged
RDAs
not
to accept the degree of controls imposed upon them. He also
emphasised the need to balance risk with innovation: the
NAO is not seeking
to eliminate risk but needs to be sure it has been properly
considered. The Chief Executive, as Accounting Officer, asked
that other
agencies and Departments accepted NAO's audit as definitive
and not duplicate the monitoring process. Sir John said that
the audit for 2002/03 is nearly complete. It shows a sound
control environment operating within SEEDA and that the agency
is well
managed. Members congratulated the Chief Executive on the
verdict from the NAO.
Item 8 Chairman's report
- The Chairman reported on a number of
his meetings. In
future this list will be part of the Board papers.
i. He discussed the new Brighton Centre and
community work
on a visit to Brighton and Hove.
ii. He accompanied Baroness Symons on a visit to
Greece concerned with encouraging Europe to adopt Lisbon agenda
on small business
support in growing EU.
iii. Charlotte Dixon is to take forward issues discussed
between the Chairman and NHS leaders from across
the region. The NHS is a large industry, both in terms of its
primary
function but also its associated infrastructural
demands.
iv. The Chairman has been addressing relationship
issues with Kent County Council
v. The meeting of the RDA Chairs did not include
the customary meeting with Ministers because of the
local elections. The
main topic discussed was the Haskins report. Members
agreed that they
found it useful to have the RDA Chairs papers posted
on their website.
ACTION
Board secretariat to issue Chairman's list of meetings
along with Board Papers
Item 9 Higher Education
White Paper
- Clive Booth introduced this item, saying
that the only non-negotiable part
of the White Paper was that Universities
will be able to charge top
up fees in return for widening access
from 2006. John Parsonage added that
SEEDA's
response had been to welcome
large parts of the White
Paper but to offer constructive criticisms where
these were weak.
- The Chairman commented
on the northern regions' wish
for more research to be located within
their universities rather
than concentrating in the south. John Parsonage
informed the
Board that the figures are distorted
by medical research and the
preponderance of teaching hospitals in London.
Research funding
is set by peer review and should
not be subject to outside
interference. Research ratings are not the only source
of finance for universities:
there is private sector and non-research
funding available. The UK
has a national science base,
which should
be encouraged and
developed wherever it is spatially
located as it is a vital
national resource.
- Members discussed SEEDA's response to the white paper,
and asked for stronger wording stressing the link between research
and teaching. The White Paper, if implemented, will present the
smaller universities with the opportunity to concentrate on their
strengths and collaborate, which may not always coincide with
their ambitions. SEEDA has a brokerage role to play. It is also
a concern that the White Paper has a limited outlook, and does
not address non-scientific studies, students outside the usual
18+ entry, the need to attract children into science and technology
at a young age, nor how to raise the aspirations of parents and
children in deprived wards. All these form part of SEEDA's
Learning and Skills agenda.
- Most of the expansion in higher
education is likely to come from
2 year Foundation Degrees which will
be delivered through an enhanced
role for FE Colleges. Rob Douglas
highlighted the potential for funding problems
in FE colleges with LSCs funding their
non-Higher Education functions
but HE funding coming from the
Higher Education Funding Council.
Members agreed to draw attention to the
need for seamless FE funding in SEEDA's
response to the White Paper.
- Members discussed ways of funding
bursaries for science and engineering
students or to encourage completion
of modern apprenticeships. SEEDA
may have a role to play by assisting in the
administration of matched funding
schemes. The suggestions will
be pursued by the Executive.
- Members agreed that SEEDA's response to the Higher
Education White Paper be posted on SEEDA's website.
ACTION
John Parsonage to make agreed amendments
to Higher Education White Paper response
and submit. John Parsonage and Rob
Douglas to take consider ideas for
funding students including bursaries
and community work credits, to take forward
Item 10 Chief Executive's Report
General Report
- The Chief Executive's report was noted and has been
published on the SEEDA website (www.seeda.co.uk)
In updating the Board, the Chief Executive noted
that SEEDA is involved in Architecture week and is hoping
to get design champions
from amongst Local Authority officers
and members.
- Members asked for an update on the Regional Housing
Board. Paul Martin, Regional Director of the Government
Office, said that a housing strategy in response
to the Communities Plan was
required by the end of July, but
due to the complexities of the housing market and
cross regional working in London, the SE and
East, the constitution of the partnership
has until the end of September to be submitted to
the Deputy Prime Minister for approval
by the end of the year. Three existing
funding streams for social housing will be wound
up over a two year period with the intention
that future funding should follow
the need for affordable or key worker housing and
homelessness provision rather than be
allocated by formula.
- Paul Hudson is involved on the
steering group that has been set
up short term to formulate a strategy.
In the longer term, there should
be Board level as well as senior
officer involvement in the creation
of the strategy. Keith House will
represent SEEDA. Paul Martin agreed
that the strategy is viewed with suspicion
by Local Authorities who are lodging their
county structure plans, and that
Local Authority involvement in the
RHB would be desirable. Although
SEERA has 5 nominees,
they are regional representatives,
not there on behalf of their own
authorities. There are some urgent
funding issues to be resolved
in the short term. Paul
Hudson offered to supply further
detail to the Board.
Inward Investment Report
- The Chief Executive stated that
as not all the year end reporting
has been completed, the final inward
investment numbers will be better
than shown in the report.
- SEEDA had no prior knowledge
of the independent GDP Global Development
Benchmarking Study. This was an international
comparison of 72 inward investment
agencies, including 5 English RDAs.
The report is the result of four
separate investigations undertaken
between June 2001 and November 2002.
The response of each agency was evaluated
on the basis of:-
• The personal handling of the enquiry
• The content and presentation of information for the client
• The time taken to receive the information pack
• The enquiry follow-up process
- Key results were:-
• SEEDA was ranked No. 1 in the international top 10.
• SEEDA was ranked No. 1 in the top 5 regional agencies, only
one other English RDA made the listings, which was One North East in third position.
• SEEDA was ranked No. 1 in the European top 5 agencies.
- The Board and Chief Executive congratulated Mike
Gooch, Inward Investment
Director, on his leadership which has resulted in a successful
team. The coming year
will be
tough. The
world
flows of
Foreign Direct Investment dropped by 50% in 2001 and
are estimated
to decrease by a further 27% in 2002. SEEDA's
focused team,
policies and global regions work aims to deliver 40 projects.
Part of the role
of the Investor
Development
Network
is to ensure
that the new companies
stay and grow in the South
East. Figures
relating to outflow of jobs to other regions in the world
are not available. The
main manufacturing
losses
are
reported
but SEEDA works with employers
to mitigate job losses.
Item 11 Europe - Government Consultation on Future Regional
Policy
- Members noted
the paper. The Chair
of the Joint Europe Committee, Liz Brighouse,
will be attending a meeting with Commissioner
Barnier and the RDA
Chairs on 12 May.
They will be broadly supporting the British
Government proposals that Government
money for the UK regions
should go directly
to the regions and not via a Brussels distribution
policy. The patches of deprivation
in the SE make
it hard to access
EU funding with the
present number of members, a situation which
is unlikely to improve with further enlargement
of the Union.
Item 12 Operational
review
FinancialReports
- The Chairman
congratulated the
team on achieving
full year spend and the commencement of several
major projects. Marianne
Neville-Rolfe explained
and analysed the
administration budget,
showing that costs are being contained.
Future quarterly
reports will provide a profile summary of
contractual, forecast
and actual
spend, plus expenditure,
against previous
years. Members noted
the operational review and programme expenditure
for the current
year.
Draft Business Plan
2003-04
- The draft Business
Plan was presented.
Marianne Neville-Rolfe
explained that it
replaces the previous accountability plans
and will give greater
visibility of progress. The plan has been seen by
SEERA, who are supportive of its content.
Mary McAnally
asked for better
indexation for cross cutting issues
to be included. This
was agreed, but the plan in its present form will
go on the website immediately.
There are some areas of the agency's
role which do not
have a high profile in the plan because they
do not incur much expenditure, although
effort
is expended in
influencing and catalysing.
Members approved
the
Business Plan for
2003/04
Audit Committee
- The minutes of the Audit Committee meeting
held on 20th February
were noted. Members endorsed the NAO's
praise for the work
of the committee.
Item 13 AOB
- There was no any other business
Item 14 Date of next meeting
- The next meeting will be on 11th June 2003. The
Chairman may not
be able to attend for the whole meeting. Clive Booth
agreed to Chair if
required. The meeting will be held in London, and
start at an earlier time, to facilitate
the Chairman's
attendance. Time and venue
to be notified
by Secretariat.
|