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MINUTES OF THE 77th MEETING OF THE
SOUTH EAST ENGLAND DEVELOPMENT AGENCY
HELD ON 5 MAY 2006 SEEDA, GUILDFORD
Present:
James Brathwaite (Chairman), Rob Douglas, Peter Jones, Poul Christensen, Mary McAnally, Sarah Hohler, John Peel, Peter Read, Phil Wood, Bill Wakeham, John Peel, Imtiaz Farookhi
In attendance:
Pam Alexander, Paul Hudson, Paul Lovejoy, Duncan Straughen, Jeff Alexander, John Parsonage, Simon Walker, Donal Galligan, Ed Metcalfe (for item 7), Valerie Carter (for item 8)
Item 1 Welcome and apologies for absence
- Apologies had been received from Rob Anderson, Keith House, Liz Brighouse and Rolande Anderson.
- The Chairman congratulated Paul Hudson on his appointment as Chief Planner at the ODPM and thanked him for his contribution to SEEDA over the last seven years. The Chairman also welcomed Barbara Hammond, the Chief Executive's Policy Advisor, as an observer.
Item 2 Minutes of the last meeting (8 December 2005)
- Sarah Hohler requested inclusion of Pam Alexander's point on item 9, that in the event of any cut to RDA budgets SEEDA would prioritise its committed projects.
- The minutes of the last meeting were agreed as a correct record of proceedings.
Matters arising
- John Parsonage updated the Board on the LSC reorganisation. 75 of 100 top national posts have been filled including two of the five South East area director posts. However there are concerns that business contact might suffer as a result of the reorganisation, consequently SEEDA is working hard through the RSPA to ensure that business views are communicated to the LSC. There has been some suggestion, not yet confirmed, that the London Development Agency might get greater accountability for LSC budgets. Rob Douglas added there is ongoing discussion within the LSC on its national, regional structure with South East LSC chairs favouring a local council structure. John Parsonage undertook to keep the Board informed of developments.
- Duncan Straughen noted that administration costs would be taken to Executive Board on 8 May in advance of coming to the Board on 15 June as part of the 2005/6 Full Year Review. Poul Christensen requested a comparative data set of RDA administrative spend for 2005/6.
Action : Item 2, Matters Arising, paragraph 7
Duncan Straughen to provide a comparative analysis of cross-RDA administrative spend for 2005/6.
Item 3 Declarations of interest
- John Peel in respect of item 11, projects 7 and 8, as chair of Sussex Enterprise.
- Peter Jones in respect of item 9, as director of the East Sussex Economic Partnership, director of Hastings & Bexhill Regeneration Limited and member of the Hastings & Bexhill Task Force Steering Group.
Item 4 Year End Review
- Duncan Straughen summarised the Year End Review. Following a significant effort by all staff to meet expenditure forecasts a very close to balanced out-turn is expected. Work is now underway to address the nature of the spend profile to ensure a smoother profile in future years, including for example expenditure targets being included in staff objectives and working with partners to improve mutual working practices for example by building partners' capacity and simplifying SEEDA's systems.
- The Board NOTED the year end review.
Item 5 RES Forward Look
- Paul Lovejoy invited comments on the Draft RES. The consultation period closes on 30 June, efforts are currently focussing on bilateral discussions with partners on lead responsibility for RES actions, and on addressing the remaining complex issues e.g. mainstreaming culture and addressing the diversity agenda. The aim is to deliver a shorter, sharper document with clarity of action ownership.
- In parallel SEEDA is working with partners on the draft Framework for a South East Coastal Strategy that is being taken forward as one of the strands highlighted for further development in the RES. The Chairman welcomed the draft Framework for a South East Coastal Strategy and noted that it had been well received by the Deputy Prime Minister.
- The Board welcomed and fully supported the Draft RES. Members offered the following comments:
- whilst brevity is a commendable aim it should not be pursued at the expense of necessary detail; diagrammatic representations of the interlinkage of issues and actions, and an inspirational executive summary would greatly aid understanding;
- the significance of rail improvements should be highlighted (e.g. CTRL benefits, and benefits of parkway stations);
- SEEDA should maintain its position on housing growth proposals in the draft South East Plan.
- In the context of the RES themes of global competitiveness and smart growth Duncan Straughen summarised ABP's 'Southampton Container Port Growth Strategy'. The Chairman was grateful for this insight into the thinking of a major South East business, noting that it was a good example of how a business can pursue smart growth and deliver productivity gains. He observed that it would be vital that rail infrastructure can support these growth plans, the plans for rail gauge enhancement are very important. Paul Hudson commented that SEEDA, AWM and ABP are working together on detailed design work for the rail gauge enhancement in preparation for an EU funding bid.
- The Board NOTED the update on the RES.
Item 6 CSR07
- Paul Lovejoy summarised the nature of the Comprehensive Spending Review 2007 and progress to date in providing RDA input to the Review.
- Pam Alexander noted that RDA work is currently focussing on quantifying and analysing cross-RDA expenditure in the present Corporate Plan period. Once completed the focus will shift onto the questions 'what should RDAs be doing more or less of?' which is at the heart of the cross-cutting sub-National Review of Economic Development.
- Imtiaz Farookhi queried whether discussions with DTI on RDA budgets for 2006/7 had been concluded. Pam Alexander responded that although DTI have not confirmed RDA budgets for 2006/7 HM Treasury are not allowing Departments to reallocate ringfenced budgets, including the Single Pot.
- Bill Wakeham asked how energy would be positioned in the RDAs' input to CSR07. The Chairman commented that energy will be addressed as an enterprise in itself and as having an impact on enterprise (in terms of security and affordability of supply). He confirmed that RDA Chairs see energy as a significant issue and would be stressing the value of RDAs in helping to shape and deliver Government policy during their upcoming meeting with the Prime Minister.
- Peter Read queried the weight that the NAO's IPA of RDAs would carry in the CSR07 process. Duncan Straughen confirmed that HM Treasury would be looking closely at the results of each IPA and the network is working to situate the IPA is part of a learning improvement process rather than an isolated audit of RDA performance.
- The Board NOTED the update on CSR07.
Item 7 Science and Innovation – strategic issues
- Ed Metcalfe updated the Board on progress on SEEDA's Innovation Action Plan and sought its advice on the lead role response to the Government's 'Science and Innovation Framework 2004-14: next steps' consultation, and on the shape of RDA input to CSR07 on Science and Innovation.
- The Innovation Action Plan sets out three strategic themes as the regional response to the Government's '10-year Framework for Investment in Science and Innovation': identification and use of emerging technologies; closer business engagement with the SET base; improved supply of SET workers. Progress under each theme has been strong:
- Four priority emerging technology areas have been identified (healthcare, complex systems and extreme environments, sustainable development, nanotechonology) supported by calls for collaborative R&D proposals. The first nanotechnology call has been contracted with healthcare underway.
- The Innovation Advisory Service was launched on 4 April with 12 FTE innovation advisors covering the region and already working with 100 businesses. The Business Fellows and PoCKeT projects are up and running, with 36 Business Fellows in the region helping to broker business collaboration with universities and £430,000 of PoCKeT funding allocated to 15 projects in the region.
- A regional STEM Hub Board, chaired by Norman Boyland of the LSC, has been established with representatives from schools, university and industry. It aims to join up and communicate regional best practice in encouraging school children to pursue scientific careers.
- The Board welcomed progress on the Innovation Action Plan, Peter Read noted that it has the strong support of SESETAC. The Board affirmed the direction being taken in the RDA response to the Next Steps consultation, simplification and collaboration in RDA programmes are vital, the link between public procurement and innovation should be stressed and exploited, and a full cross-RDA evaluation of best practice is required to inform the response.
- The Board NOTED the update on progress in implementing the Innovation Action Plan and AGREED the general direction being taken in the draft RDA response to the Government's 'Science and Innovation Framework 2004-14: next steps' consultation.
Item 8 Project Update: Rural Innovation & Enterprise
- Valerie Carter updated the Board on SEEDA's work in supporting and encouraging rural innovation and enterprise. The South East is home to 109,000 rural businesses and 18,000 farms, land-based businesses and farming are therefore vital to the South East economy and share the common need for innovation to help drive competitiveness and profitability. SEEDA has therefore focussed, through a range of programmes, on increasing the competitiveness of rural businesses and improving their access to business advice. To address these issues a Rural Business Team is being established within the Business and International Division.
- The Chairman welcomed SEEDA's integrated approach to supporting rural businesses. He also expressed concern that the Forestry Commission is considering moving the Alice Holt national research centre in Surrey to the North of England.
- Poul Christensen commented that the high-tech use of non-food crops will require investment in research, development and deployment and in the supporting infrastructure needed.
- Action: item 8, Rural Innovation and Enterprise; paragraph 27
- Valerie Carter to provide the Chairman with a draft letter to the Forestry Commission arguing for retention of the national research centre at Alice Holt.
Item 9 Major Projects & Programmes
- Newhaven Enterprise Gateway
- Paul Hudson presented for the Board's approval an alternative delivery mechanism for the Managed Business Centre (part of the Newhaven Enterprise Gateway) by means of grant funding the Local Authority and an increase in the budget to cover contingencies.
- Peter Read commented that MPC had endorsed this proposal but had requested clarification of SEEDA's strategy for managing the exit of incumbent businesses from Enterprise Hubs and Gateways.
- The Board APPROVED the alternative delivery mechanism for the Managed Business Centre (part of the Newhaven Enterprise Gateway) by means of grant funding the Local Authority and an increase in the budget to cover contingencies.
Hastings & Rother College proposals
- John Parsonage introduced for the Board's approval a proposal for SEEDA, in response to a request from the Learning and Skills Council, to agree in principle to contribute to and/or facilitate the delivery of plans for the new Hastings and Rother College, in order to achieve additional outputs and outcomes in support of the Regional Economic strategy.
- The new proposals for post-16 education provision in Hastings (approved by Ministers following their rejection of the original proposal) would see a new Hastings and Rother College on the Station Plaza site adjacent to Hastings rail station, and a new Vocational Training Facility in the Ore Valley, adjacent to the Millennium Community project. The LSC is leading, and funding, the design work on the whole project. The aim is for the new college to receive its first intake of students in September 2009. This will not be possible without support from SEEDA hence the request from the LSC.
- Rob Douglas requested clarification of whether the project is primarily addressing further education or regeneration needs. The Chairman confirmed that the new college is central to the education-led regeneration of Hastings, and Phil Wood noted that the LSC is actively focussing on the interaction between the college and the local community to ensure that it supports the 5 Point Plan for the regeneration of Hastings and Bexhill. The aim is to use education to support the skills needs of local businesses, providing a skills escalator from 6 th Form and FE at the new college to HE at UCH with multiple points of exit into employment opportunities in the local economy. The new college offers the chance to do this in a way that integrates FE into the townscape in Hastings.
- The Chairman noted that the new college should be an iconic example of design excellence and sustainability (of construction methods and building operation), and agreed the suggestion that the outputs delivered by any SEEDA support should be clearly identified.
- The Board AGREED in principle to contribute to and/or facilitate the delivery of plans for the new Hastings and Rother College, in order to achieve additional outputs and outcomes in support of the Regional Economic strategy. The Board requested HBRL to pursue negotiations with the LSC on the nature of SEEDA's support for the project.
Shoreham Maritime
- Paul Hudson summarised the consultancy study into the delivery of Shoreham Maritime, which had been commissioned jointly with the Shoreham Port Authority. The report looked at the likely level of finance needed to progress plans for Shoreham Maritime, at likely outputs from the development (housing units and business floor space) and at possible next steps. It identified an estimated £30million investment gap. Paul Hudson recommended developing Shoreham Maritime as a SEEDA project with the full involvement of partners.
- Peter Read reported that MPC had commented on the need for SEEDA leadership to progress Shoreham Maritime but was concerned at the long term viability of the project given the level of commitment required from partners. MPC supported the recommendation that further discussions should be pursued with SEEDA leading on scoping and defining the project and deliverables.
- The Chairman gave his support to the plans for Shoreham Maritime which he considered would create real opportunities in a deprived area of the region, not least with approximately 1800 new homes. He congratulated the SEEDA team for getting the Port Authority fully involved.
- Rob Douglas queried the prioritisation process for any expenditure in Shoreham. Paul Hudson noted that the draft Framework for a South East Coastal Strategy once fully worked up would provide the framework and justification for any SEEDA investment. Pam Alexander added that the RES implementation plan would generate an investment strategy, given this SEEDA should not seek to assign project costs at this stage but should continue work on the project to bring it nearer to investment readiness. The Chairman agreed and requested that the project be brought back to the Board, when ready, to consider any potential investment.
- The Board NOTED the update on the consultancy study into the delivery of Shoreham Maritime.
Item 10 Committee Report: Audit
- Rob Douglas reported on the Audit Committee's discussions at its recent meeting. Following interest from Committee members in Special Purpose Vehicles (SPVs) the Head of Internal Audit would be arranging training in their establishment and use.
- Mary McAnally queried what action had been taken to guard against internal breaches of financial procedure. Duncan Straughen confirmed that it is now a disciplinary offence for staff not to declare interests, the register of interests has also been updated and expanded to include immediate relatives. Staff are also regularly advised on the importance of whistleblowing and on the support available to them.
- Bill Wakeham queried the high level of 'unsatisfactory' ratings on Internal Audit reports. Rob Douglas reassured him that individual Executive Directors are being held to account if ratings have not improved between reports, and furthermore the reasons for lower ratings are generally related to particular aspects rather than systemic failures.
Item 11 Projects
- Bill Wakeham queried whether the 'NHS Innovation SE' project is linked to the new NHS Innovation Fund announced by Government, and whether NHS funding for this project will still be available in the light of this new fund. Pam Alexander commented that the Innovation Fund essentially involves a dual key arrangement between DTI and the NHS over the NHS research budget.
- The Board NOTED the summary of projects.
Item 12 Chairman's Report
- The Chairman noted that SEEDA's leadership on waste and business resource efficiency is having an impact. Waste and resource efficiency are being seen by Whitehall and industry as a business opportunity.
- The Chairman welcomed news that the South East has overtaken London on broadband penetration with 30% uptake compared to 28% in London. However more remains to be done on business usage of broadband.
- The Board NOTED the Chairman's report.
Item 13 Agency Report
- Pam Alexander outlined SEEDA's priorities during its tenure as Chair of the RDA network ('Chair of Chairs'): (i) ensuring an effective start to the CSR07 process; (ii) ensuring that engagement between RDA Chairs and Ministers is as productive as possible; (iii) ensuring business resource efficiency is treated as a business opportunity; and (iv) identifying ways of bringing forward infrastructure projects more quickly.
- Pam Alexander informed the Board that the search for Paul Hudson's replacement is underway, as is the search for a new Head of Planning to report to Paul Lovejoy. In the interim Duncan Straughen would take management responsibility for the Development and Infrastructure Division.
- Pam Alexander welcomed the successes of the inward investment team in securing 11 inward investments which will result in the creation of 252 new jobs over the next 3 years. She noted with disappointment that the Queenborough and Rushenden link road had not been included in the published list of Community Infrastructure Projects to be funded by the ODPM.
Item 14 AOB
- None.
SEEDA BOARD SUMMARY OF ACTIONS
5 MAY 2006 MEETING
Action: Item 2, Matters Arising, paragraph 7
Duncan Straughen to provide a comparative analysis of cross-RDA administrative spend for 2005/6.
Action: item 8, Rural Innovation and Enterprise; paragraph 27
Valerie Carter to provide the Chairman with a draft letter to the Forestry Commission arguing for retention of the national research centre at Alice Holt.
23 MARCH 2006 MEETING
Action: item 10 – 2006/07 Budget
Duncan Straughento report back to the Board, in June, on administration costs.
Paul Lovejoy to bring an Olympics Regional Action Plan to the Board in June. On the agenda for the June Board.
Action: item 11 – Major Projects
Paul Lovejoyto provide further information on other CHP projects.
A CHP carbon equation for the South East is being worked up and will be reported to the Board in the Autumn
Action: item 12 – Financial & Operational Review
Duncan Straughen to report back to the Board on outcomes.Included as part of the Full Year Review 2005/6.
Action: item 13 –Projects
Duncan Straughento provide a 'total investment' element in the list of projects.
26 JANUARY 2006 MEETING
Action: item 13 –Projects; paragraph 69
John Parsonage to provide further information on Project 4, the South East Proof of Concept Fund (outputs from SEPOC to date).
Full report to come to the September Board.
27 OCTOBER 2005 MEETING
Action : Item 3, Matters Arising, paragraph 3
Paul Lovejoy to bring a paper to the Board on public sector reorganisation in the South East.
To come to the September Board, but with an update sooner if the Local Government White Paper is published during the Summer.
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