South East England Development Agency (SEEDA)

BOARD MINUTES OF THE THIRTEENTH MEETING OF SOUTH EAST ENGLAND DEVELOPMENT AGENCY

HELD ON TUESDAY 15 FEBRUARY 2000 AT SEEDA HEADQUARTERS

In Attendance
Anthony Dunnett (SEEDA, Chief Executive), Jeff Alexander (SEEDA, Agency Secretary), Phil Bailey (SEEDA, Head of SEEDA Secretariat), David Saunders (GO-SE, Regional Director, Item 7), Ken Dufton (Regional Assembly, Vice-Chair, Item 7)

Item 1 Apologies for absence
Russ Nathan CBE, Janis Kong

Item 2 Minutes of last meeting

Matters Arising

Funding of Local Economic Partnerships

• The Chairman informed the Board that he had written to David Blunkett (Secretary of State for Education and Employment and Stephen Byers (Secretary of State for Trade and Industry) regarding this issue. 
  

Proposals on Wealth Creation - Costs

• Jeff Alexander had prepared a note for the Chairman on the costs of the wealth creating proposals in the RES. It was agreed that this note would be circulated to all Members.

ACTION
Jeff Alexander to circulate note to all Members (done on 16 February).

Regional Trust

• Bryan Davies has arranged to visit Paul Bradstock of Oxford Trust on Wednesday 8 March to discuss the idea that a Regional Trust should be established.

Board sub-committee expenses

• The Board were informed that current practice and policy amongst the majority of other RDAs on this issue was not to pay expenses unless:-
• The host organisation of the representative concerned was unable to pay; or
• There is no organisation from which the representative can claim.
• Members felt that a policy based on the above principles was justified and asked for a document to be prepared reflecting their views. The policy was to be approved, on the Board's behalf, by the Audit and Remuneration Committee.
• This policy should also make clear that the advisors appointed to SEEDA Board Committees were not representatives of SEEDA.

ACTION
Phil Bailey to prepare document setting out policy on the payment of expenses to participants on Board sub-committees. This policy to be approved, on the Board's behalf, by the Audit and Remuneration Committee.

RDA Chairmen's Lead Responsibilities

• A revised list of the RDA Chairmen's lead responsibilities was circulated.

Branding of SEEDA Funding

• It was explained that, in as much as Departmental guidelines permitted, any funding provided by SEEDA was branded as "SEEDA funding". This issue was also to be discussed at the next RDA Heads of Marketing meeting.

North/South Divide

• It was noted that a report produced for DETR claims that the North/South divide was widening. Relevant Press extracts were handed out to Members.
• The Board approved the minutes of the previous meeting subject to the insertion of "if requested" at the end of the paragraph on Item 14 (AOB). The summary minutes were approved subject to the insertion of wording that it was not the Government's intention to divert funding resources from the South so as to achieve economic growth in the North of England.
• The Board asked that their thanks and appreciation be passed on to staff involved in organising the visit by the Rt. Hon. Hilary Armstrong.

Item 3 Declaration of Members' Interests

• David Rogers declared an interest in project 002 (Battle and District Council for Voluntary Service Delivery) because East Sussex County Council was a partner in the project.
• Members agreed that no conflict of interest because appraisal of the project was under delegated authority.

Item 4 Operational Report

Financial Report (Paper 15/2/00-4)

• Jeff Alexander explained that SEEDA was reasonably satisfied that both the operational and programme budgets would be substantially spent by the end of the financial year. However it was acknowledged that the spend profile of the Single Regeneration Budget (SRB) was unacceptable and that this issue would be addressed for the following years. Members commented that issues such matched funding would continue to aggravate this problem but they agreed that a different profile, with targets, should be set for the accountable bodies.
• The Board noted the Financial Report.

Item 5 Operational Review of SEEDA (Paper 15/2/00-5)

Review of SEEDA Board

• The Chairman reminded the Board that he had confirmed to the Minister (Rt. Hon. Hilary Armstrong) that the performance of all current Members of the Board was acceptable. However the review of the Board's operations had highlighted the need to strengthen the Board by bringing in two high level business people. Accordingly he had written to the Minister formally requesting permission to increase the size of the Board. He understood that DETR were considering the wider implications of the issue and therefore had not yet responded.
• Members were generally supportive of the Chairman's approach although Barry Camfield noted that there was a concern generally on the part of the Unions as to the lack of workforce representation on the RDA Boards.
• It was agreed that this issue needed to be discussed again once a response had been received from DETR.

Recommendations of SEEDA Operational Review (Paper 15/2/00-5)

• The Chairman reminded the Board that he had been updating the Board on the SEEDA Operational Review and that it had been agreed at the previous meeting that a paper, with recommendations for debate, would be discussed at this meeting. The intention now was to gather comments, take Members views into account and re-present a revised paper before the next meeting (16 March 2000) so that Members could conclude discussions at the next meeting.
• It was agreed that the best approach was to go through each of the recommendations in the paper.

Recommendation 1

That the review team should prepare an Operational Manual codifying key arrangements and relationships pertaining to the operation of the Agency. A draft of the first part of the Manual should be ready for presentation to the full Board by the 31 March 2000. It should incorporate the recommendations made below as well as covering:

• the role and prime responsibilities of the Chairman, Deputy Chairmen, other Board Members, Chief Executive and Executive Directors;
• how the above interface with each other, ensuring complementary empowerment and full utilisation of what each has to bring to the Agency;
• procedures for monitoring the effectiveness of the arrangements covered by the Manual;
• a definition of key delegations, including financial authorities, aimed at ensuring that the Board is fully involved in substantial new strategic and operational developments with proper delegation of more detailed or routine matters;
• arrangements for business planning developed around a Corporate Plan that looks three years ahead, a more detailed annual Business Plan and monthly summary financial reports to the Board;
• requirements for establishing a Standing Instructions Programme (SIP). Such Instructions will be formal documents approved by the Board providing a clear series of policy and operational statements covering such areas as service standards, openness and corporate identity. The Chairman and Chief Executive will consider and advise the Board on existing and new documents that should fall within the SIP series;
• organisational charts covering the overall structure of the Agency with detailed charts for each business area; and
• a detailed set of measurable objectives for the Chief Executive and each Executive Director, with details of the arrangements for reviewing these objectives and monitoring progress in achieving them.
  
• No comments were raised on this recommendation.

Recommendation 2

That the Agency's committee structure is reconstituted as set out in the table at Appendix C to better reflect the structure of the RES and Action Plans. The table also records for each committee the proposed Chair, other SEEDA Board Members who would join it and the lead Executive Director. The Chairs should review which outside individuals they wish to co-opt as advisors to their committees (the Board has previously agreed that only SEEDA Board members and executives can be actual members of the committees). In doing so they should seek to ensure, as far as is reasonably achievable, a balance in terms of geographical and sectoral spread, gender and ethnicity of the committee as a whole including the advisors. Each Committee should include at least one active business person, with a minimum of 20% business membership. The Regional Assembly and GOSE should each be invited to nominate an advisor to every Committee. Committee Chairs should seek the endorsement of the SEEDA Chairman to the membership and remit of their Committee before these are confirmed.

• This recommendation was broadly acceptable but that the text required revision so as to meet the points made by Members. These include:-
• The Regional Assembly and GO-SE should each be invited to suggest names for advisors of the Committees;
• The balance consideration of the Committees should include the workforce; and
• Business representation on Committees should be "significant" rather than bound by a stated percentage of membership.
• It was recognised that:-
• Social Exclusion, whilst not constituted as a specific Board Committee, should underlay the work of all the Committees; and
• Consideration of Workforce issues should not be restricted to the Learning and Workforce Committee.
• It was agreed that the composition of each Board Committee must be approved by the Chairman.

Recommendation 3

That it is confirmed that the Committees are non-executive with a remit to advise the SEEDA Board on policy and strategy. The Committees (in particular the Chairs and the other SEEDA Board Member(s) who sit on them) should actively promote SEEDA' s policy and approach within the region, with the lead executive director leading and co-ordinating this activity. Chairs should however explicitly discourage committee advisors from claiming to represent SEEDA. The Committees should be clear that it is the responsibility of the lead executive director to deliver the RES action plans. The role of the Committees with regard to the action plans is:


• to support the executive director;
• to ensure that the policy underlying each action is well-informed and clear;
• to assist in gaining support for the plans amongst interested parties across the region and in ensuring that they are taken forward in an inclusive way;
• to obtain the feedback of key stakeholders relevant to the Committee's particular remit; and
• to monitor the implementation of the plans.
  
• Members noted that the role of the Committees was to "advise" the Executive Directors and that, as sub-committees of the Board they were accountable to the full Board. It was also agreed that Board Committees should work closely with the Chief Executive. Members also recognised that it was important that the Committees harnessed the resources of partners throughout the region.

Recommendation 4

That each Committee should establish and nurture contacts across the region linked, where appropriate, to existing networks covering their area of interest. These networks will serve to widen the advice and expertise on which the Committees can draw, and help develop a strong base of individuals and organisations across the region who feel involved with SEEDA and encouraged to support and promote the Agency's strategic approach and policies.

• Members agreed that the diversity and size of the region meant that the creation of appropriate networks was essential in enabling SEEDA to reach out to all parts of the region.
• However it must be made clear to the "advisors" on the Committees that they were not acting as SEEDA representatives.

Recommendation 5

That each Committee should define its objectives and the measures against which progress in achieving these will be assessed. This will provide the basis against which the contribution of each Committee will be reviewed, at least once a year, by a panel comprising the SEEDA Chairman, Chief Executive and Director of Strategy and Corporate Services (as a minimum) with other Board Members and Executive Directors (other than those involved with the Committee concerned) also participating on an ad hoc basis. Each review should comprise a substantive meeting between the panel and, as a minimum, the Committee Chair and lead Executive Director. Chairs may involve other Committee members/advisors at their discretion. Each review will be conducted on the basis of a set of standard questions (to be developed) and will result in a report to the full SEEDA Board. The monthly Committee reports to the SEEDA Board should be discontinued.

• The above recommendation was generally accepted subject to the following points:
• Board Committee objectives should be approved by the Board;
• The Review panel will consist, as a minimum, of the Chairman, a Deputy Chairman and the Chief Executive acting on behalf of the Board; and
• Board Committee reports should be submitted on an exception basis; they were not obligatory.

Recommendation 6

That Board Committees should keep attendance records on a similar basis to those maintained by the full Board.

• This recommendation was agreed.

Recommendation 7

That the Board should retain full responsibility for decisions relating to substantial new or amended policy. In this context "substantial" should be defined as:

• significant redirection of funding (more than 10% of the funding approved by the Board for a particular purpose subject to a minimum redirection to be determined) outside the agreed corporate/business plan;
• significant departures in strategic direction or policy from that set down in the RES and/or the corporate/business plan;
• any changes to policies that are specified in the Operational Manual and/or Standing Instructions approved by the Board (see Recommendation 1).

Advice on proposals to make such substantial policy changes will normally be prepared by the relevant Executive Director and cleared through the Chief Executive and Chairman before being put to the full Board.

Responsibility for more minor decisions on policy should be delegated to the relevant Executive Director working with the Chief Executive and the lead Board Member where appropriate. It will be for the Chief Executive, in consultation with the Chairman, to judge whether a matter should be referred to the full Board and whether this should be for decision or information.

• It was explained that this recommendation complied with the roles and responsibilities for the Chairman, Members and Chief Executive as set out in the Management Statement but was also designed to allow Committee Chairs to take responsibility for their area of activity.
• It was suggested that the recommendation be revised so that the Executive Director should "agree" minor decision on policy with the Chief Executive and appropriate Board Member.

Recommendation 8

That the Operational Manual incorporates the principles and guidelines for establishing a directory of the key organisations within the region and outside with whom SEEDA should nurture effective relations and identifies the individual Board Members, executives and other SEEDA staff responsible for managing these relationships at the various levels necessary. When completed, the directory should be accessible via SEEDA's IT system.

The following specific arrangements are also recommended:

• The Chairman should take the lead on fostering effective relations with Government Ministers and, along with the Chief Executive, the most senior Whitehall officials. This will include twice-yearly meetings with each of the main Departments;
• Board Members and Executive Directors should be given geographical lead roles relating to county and unitary areas;
• The Chairman should have a working meeting with each county and unitary authority at least once a year and once every eighteen months respectively. The Board Member and/or Executive Director with lead responsibility for the geographical area concerned will also attend. The Chief Executive will attend as required;
• The Chairman should respond to all substantive letters from MPs;
• The Deputy Chairman with lead political responsibility should take the lead on developing effective relations with all MEPs, reporting back to the Chairman and to the full Board at the monthly Board meetings;
• Kevin Wilson should continue to take the lead with regard to SEERA and district/borough authorities, reporting back to the Chairman and to the full Board at the monthly Board meetings;
• twice-yearly meetings should be arranged with the South East's MPs in their separate political groups, with the local authority Board Member(s) of the same political party taking the lead.
  
  The Chairman, lead local authority Board Member(s), Chief Executive and Director of Strategy and Corporate Services will normally attend all such meetings. The lead Board Member(s) will be responsible for determining the format of each meeting and for ensuring good attendance by MPs (with the target of at least 80% of MPs from each Party attending at least one meeting each year).
  
  It is important that the meetings cover an agenda of real issues as agreed by the lead Member (s) in advance with the political group's regional co-ordinator - the meetings should not take the form of unfocussed gatherings or receptions. The lead Members should provide a verbal report each quarter to the full Board covering any meetings with MPs during that period and/or providing a more general "political" update on regional or national matters of interest to SEEDA. He or she should also raise any major issues at the monthly Board meetings. The Director of Strategy and Corporate Services and his team will provide support for the organisation of these meetings.
  
• arrangements must be established to ensure the development of effective relations (including "aftercare") with private sector companies involving the Chairman, Board Members, Sector Task Groups and the executive team. As a first step, the Chief Executive and the relevant Executive Directors will produce a paper for the Board on this priority requirement.
  
• It was confirmed that the Operational Manual would be available on SEEDA's "S" Drive.
• Proposals for geographical responsibilities for Members will be circulated with the revised Operational Review Paper.

ACTION
Jeff Alexander to revise Operational Review paper and prepare an additional Appendix covering geographical responsibilities for Members.

• Members noted that the proposed twice-yearly meetings with South East MPs were to be arranged in their separate political groups. However it was essential that the meetings focussed on SEEDA business-related issues.

Item 6 Regional Economic Strategy (RES)

Differences in Government's Response to RDA Strategies (Paper 15/2/00-6(1))

• Members noted that comments were generally positive but that the responses from Government appeared to have been designed so that no league table of RDA strategies could be established.
• The Chairman reminded the Board that one of the issues raised in SEEDA's RES was the need for the South East being able to re-invest in itself. He intended to write back to Government on this issue. He felt this remained an important issue because a successful North needed a prosperous South. The relationships between the South East's needs (e.g. an improved transport infrastructure, CTLR) and the North's needs needed to be made clearer.
• Members agreed with this approach and agreed that the North South Divide issue should be discussed by Members at some stage in the future. In later discussion Members agreed that it would be a good idea to organise a Board away-day at which key issues could be discussed such as the North/South Divide.

Progress on Implementation (Paper 15/2/00-6(2)) and Process for implementing Action Plans

• The Chairman acknowledged that there were detailed Action Plans on the RES but he was keen to have sharper milestones and targets for each key area of the RES. It was recognised that the substantial number of actions in the RES and that actions such as promoting Social Inclusion would make the preparation of milestones and targets difficult to achieve. Therefore it was agreed that the Chairman, Chief Executive and Jeff Alexander would develop some proposals on the best methodology for establishing milestones and targets.

ACTION
Chairman, Chief Executive and Jeff Alexander would develop some proposals on the best methodology for establishing milestones and targets.

Item 7 GO-SE Liaison/Regional Assembly Liaison

• The meeting was joined by David Saunders and Ken Dufton.

Connexions

• David Saunders gave the Board some background on the recent launch of Connexions, a Government programme bringing together the Careers Service, the Local Authority Youth Service and other youth focussed crime reduction programmes. The programme targetted children who had become disengaged with the established education system by providing them with a personal advisor.
• There were five pilots nationally one of which was to be in the South East (covering Hampshire, Portsmouth and the Isle of Wight). Funding would be from central Government and Local Authorities. Some funding would be new, additional money.
• Kevin Wilson noted that he was acting as the lead for the Local Government Association on this programme.

Regional Planning Guidance - Timetable

• David Saunders indicated the Government aimed to issue the draft RPG for the East and South East in mid-March and publish guidance on Housing (PPG3) at the same time. There would then be a long consultation period (which would need to take the local elections into account) with publication of the final RPG in the Autumn.
• David Saunders was unable to reveal the contents of the report.

Cabinet Office Report on the Role of the Government Offices

• David Saunders noted that the report was imminent and that it would acknowledge the GOs vital role in joining up the agendas of the disparate Departmental agendas. It was likely to recommend that GOs represented a wider range of Government Departments such as MAFF, Health Service and the Lord Chancellor's Department
• David Saunders also reported that a Regional Co-ordination Unit was to be created with the aim of improving Ministerial and Whitehall co-ordination of policy initiatives and communications with GOs.
• Finally the report concluded that the close working relationship between GOs and RDAs should be continued and built upon.

• Ken Dufton reported back on the recent Regional Assembly meeting.
• A planning committee is to be set up to establish arrangements for when the Assembly becomes the Regional Planning Guidance body;
• The Assembly would be appointing two Transport Planners so that work could start on the Regional Transport Strategy. It was recognised that SEEDA and GO-SE would have a close involvement in this work; and
• The Assembly were working with SEEDA in developing a Regional Sustainability Framework.
• Members noted that there were areas of apparent duplication between the Assembly and SEEDA and asked the Chief Executive to discuss this issue with the Assembly's Director.

ACTION
Chief Executive to discuss with the Assembly's Director how best to handle areas of apparent duplication between SEEDA and the Assembly.

• Ken Dufton also raised the possibility of the SEEDA Annual Open meeting and Assembly's AGM being held on the same day (12 July). However it was explained that the SEEDA Board had agreed to hold its Annual Open meeting after the publication of its Annual Report which must be laid before Parliament and published before SEEDA's Annual Open meeting could take place. This was unlikely to happen until towards the end of the Summer Recess and almost certainly after 12 July.
• Nevertheless SEEDA acknowledged the Assembly's helpful suggestion for a joint meeting and would discuss this with the Assembly at the appropriate time.

ACTION
Chief Executive/Jeff Alexander to discuss possibility of a joint SEEDA Annual Open meeting/Regional Assembly meeting with the Assembly's Director.

Item 8 Chairman's Review

World Economic Forum

• The Chairman reported that he would be producing a summary of the speeches at the World Economic Forum. Overall he thought the event was extremely fascinating and highlighted the speed of change throughout the world.

Board Evaluation Reports

1. The Chairman thanked Members for their returns. A report providing the average markings and a selection of representative comments on the Board Evaluation Form would be produced for Members.

ACTION
Jeff Alexander to produce a composite report showing average markings and a selection of representative comments on the Board Evaluation Form.

Chairman's Advisory Panel meeting

• The Chairman noted that he had received feedback from the first meeting of the Advisory Panel and had concluded that there was insufficient opportunity, at the first meeting of the Panel, to gather views from Panel Members. He intended to discuss the draft agenda of the next Panel meeting with the Board. Suggested issues were Higher Education and feedback from the Sector Groups.
• The next meetings of the Advisory Panels are Tuesday 20 June, in London (NOT 25 JULY as mentioned during the Board meeting) and Wednesday 6 December, in Guildford.

Honours (New Year 2001 - Royal Garden Party Non-State Nominations)

• The Chairman noted that GO-SE were seeking nominations for New Year 2001 honours and for Royal Garden Parties. Members were invited to let Jeff Alexander have any nominations by Friday 18 February.

ACTION
Members to let Jeff Alexander have any Honours or Royal Garden Party nominations by Friday 18 February.

Board Away-Day

• The Chairman told Members that several Members had suggested that a Board away-day should be arranged for later in the year. The Chairman thought this was a good idea and would provide an opportunity to discuss issues such as the North South Divide and a "Review of Regionalisation". The Away-Day could also review the report on Members' evaluation of the Board.

Item 9 Venture Capital Funds

• Caroline Williams reported that interviews had now been held with potential fund managers and that the preferred bidder was West Midlands Enterprise. They would raise the money for the Fund and manage the process of investing the Fund. Their initial task was to prepare the bid for a share of DTI's Enterprise Fund (which needed to be lodged with DTI by the end of March) and assess the possibility of obtaining funding from the European Investment Bank. Caroline Williams noted that West Midlands Enterprise would be investing £500,000 of their own money into the Fund and had a PR/Marketing team that had demonstrated some good ideas on branding.
• Caroline Williams raised the issue of developing a set of criteria for the Fund and it was agreed that a sub-committee consisting of Caroline Williams, Bryan Davies, Russ Nathan, Kit Oliver and the Chief Executive be formed to take this forward.

ACTION
A sub-committee consisting of Caroline Williams, Bryan Davies, Russ Nathan, Kit Oliver and the Chief Executive be formed to developing a set of criteria for the Fund and report back to the Board, as appropriate.

• Members thanked Caroline Williams for the good progress that had been made in establishing a Regional Venture Capital Fund.

Item 10 Board Committee Reports

Europe

• It was confirmed that the executive were working towards signing the lease on South East House on 1 March and that a formal opening ceremony of South East House could be held in June. The European Strategy, if complete, could be launched at the opening ceremony.
• There were no comments on the other Board Committee reports.

Item 11 Open Board Meeting (Annual Open Meeting) - (Paper 15/2/00-11)

• The Board paper was agreed without amendment.

Item 12 Chief Executive's Report

General Report (Paper 15/2/00-12(1))

Single Regeneration Budget - Round 6

• The Chief Executive informed the meeting that 47 bids had been received seeking funding of £147m. SEEDA had funding of £70m. available in Round 6.

Cross Boundary working

• It was noted that the Local Government Association were interested in cross boundary issues and the Chief Executive was asked to prepare a short paper outlining the key cross boundary issues and relationships such as Thames Gateway.

ACTION
Chief Executive to prepare a short paper outlining the key cross boundary issues and relationships such as Thames Gateway.

The SEEDA Village

• The Chief Executive confirmed that 5 NTOs had expressed a wish to be co-located with SEEDA and that SEEDA was workin with the National Training Organisation.
• The Board noted the Chief Executive's written report.

Project Report (Paper 15/2/00-12(2))

• The Board noted the Chief Executive's project report.

Vision and Values (Paper 15/2/00-12(3))

• The Board recognised he importance of developing a set of SEEDA vision and values and asked to be kept informed on progress on the identified actions required. They believed that a Mission Statement would strengthen the document and that this was a further issue for the away day.

Item 13 AOB

Discussion of Issues

• The Board noted that it would be useful if they could hold a discussion of issues. A list of issues so far identified would include the North/South Divide, "Review of Regionalisation" and SEEDA's Mission statement. All might be considered for discussion at the away day.

• It was agreed that the dates for the Board meetings in the first three months of 2001 would be agreed at the next meeting and thereafter on a quarterly rolling basis.

ACTION
Board to set the dates for meetings in the first three months of 2001.

Item 14 Date of Next Meeting

• Thursday 16 March 2000, starting at 14.00hrs at SEEDA Headquarters.