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MINUTES OF THE 71st MEETING OF THE
SOUTH EAST ENGLAND DEVELOPMENT AGENCY
HELD ON 19 JULY 2005 SEEDA GUILDFORD
Present:
James Brathwaite (Chairman), Rob Douglas, Peter Jones, Rob Anderson, Liz Brighouse, Poul Christensen, Mary McAnally, Terry Mills, John Peel, Peter Read, Imtiaz Farookhi, Sarah Hohler, Keith House, Bill Wakeham
In attendance:
Pam Alexander, Paul Hudson, Paul Lovejoy, John Parsonage, Duncan Straughen, Simon Walker, Donal Galligan, Nigel Walmsley, TSE (for item 6), Bob Collier, TSE (for item 6), Christina Hartshorn (for item 7)
Item 1 Welcome and apologies for absence
- The Chairman welcomed the Board and noted apologies for absence from Paul Martin, Phil Wood and Poul Christensen.
Item 2 Minutes of the last meeting (23 June 2005)
- Subject to minor corrections the minutes of the last meeting were AGREED as a correct record of proceedings.
Actions from previous meetings
- Second Reading of the Crossrail Bill did not take place as scheduled on 18 July. Consequently Paul Hudson will bring a proposal for lodging a petition against the Bill (to allow SEEDA to argue for the extension of the rail link from Reading to London to Ebbsfleet) in advance of the rescheduled Second Reading in September.
- Pam Alexander reported that she had held a positive meeting with Legal & General, and the SFIE grant had been confirmed.
- Figures on absenteeism and staff turnover are now included in the Financial and Operational Review.
Item 3 Declarations of interest
- John Peel as Chair of the West Sussex Economic Partnership for Item 5.
- Sarah Hohler as a member of Kent County Council for Item 8.
Item 4 Global Competitiveness rummage
- The Board held a rummage discussion on the issue of global competitiveness and its implications for the South East economy.
Item 5 Area Update: Surrey & Sussex
- Liz McSheehy updated the Board on SEEDA's work in Surrey and Sussex. Surrey & Sussex contains 32%, or 2.58 million, of the SE population, and is characterised by a mixed GVA performance, poor east-west road links, and 72 Super Output Areas along the coastal fringe. SEEDA's investment during the last year totalled £29.2 million (17% of budget, the majority of this in Hastings). The AIFs in the sub-region have succeeded in levering in £11.7 million of private sector funding, created 18,000 new learning opportunities of 3-36 hours and supported the creation of 65 new businesses. Going forward the aim will be to build on the effective partnerships already in place to help create quality places along the coastal fringe and to build on the success in areas like the Gatwick Diamond, as well as to support the continuing success of the Thames Valley.
- John Peel emphasised the potential in the Gatwick Diamond and welcomed the work of Sussex Enterprise in helping to realise this potential.
- The Board NOTED the area update.
Item 6 Tourism SE
- The Chairman welcomed Nigel Walmsley, Chief Executive, and Bob Collier, Chair, of Tourism SE (TSE) and invited them to summarise TSE's performance, initiatives and the key tourism issues facing the SE.
- TSE is a membership organisation created 3 years ago when DCMS gave SEEDA responsibility for delivering the work of the old Tourist Boards. It receives £2 million per annum from SEEDA to deliver its strategic role for the SE tourism industry.
- TSE's work in 2004/5 has focussed on increasing demand through, for example, Magnetic South, value added promotions and quality assurance; and on improving the supply side of the industry to help businesses compete more effectively for customers (SE had 2 winners of the Excellence in England award and the number of SE entrants is set to double in 2006). Tourist numbers in the SE saw an upward trend in the 1990s but downward trend in the 2000s due to increasing global competition, however the value trend is stable at a high level, just above the national average.
- Going forward TSE is working hard on preparations for the Olympics 2012 which present a major opportunity for the Tourism industry in the SE. It is estimated that the industry could see 50-75% of the benefits generated by the Olympics through overspill visitor accommodation, athletes' training camps, day visits out of London and business conference taking place around the time of the Olympics. More immediately TSE has set up a joint initiative with the Business Links to provide tailored advice to tourism businesses in the SE, and will be rolling out a new tourism management system, ‘eBiz Buzz', to 3,000 businesses later in 2005. It will continue to align its work to SEEDA's Corporate Plan objectives.
- On the Olympics Mary McAnally updated the Board on recent developments. The London Olympics Co-ordinating Group (LOCOG), chaired by Charles Allen, will soon have a delivery and procurement arm established by statute (the Olympics Delivery Authority). LOCOG has also set out 3 specific deliverables for RDAs with RDA Boards expected to co-ordinate regional input and organise the regional offer. LOCOG will have a FTE official working on regional issues although RDAs will lead on key issues, working structures will be settled by mid-August. However active marketing of the London Olympics can only begin after the end of the Beijing Olympiad in 2008.
Item 7 Policy Update: Entrepreneurial Capacity & Culture
- Christina Hartshorn updated the Board on SEEDA's work in delivering the RES objectives relating to enterprise and skills. The goal has been to encourage enterprising people and new ventures in the region through entrepreneurship education which concentrates on building capacity to start and grow a business and to exploit uncertainty and complexity, and provides continuous progression through the education system. To achieve this SEEDA has been working closely with educators and businesses across a range of projects to adapt teaching approaches and materials and develop ways of embedding an entrepreneurial culture in SE schools, shifting the emphasis from qualifications to skills.
- The Board NOTED SEEDA's work to date in this area, and AGREED SEEDA's forward strategy for entrepreneurial capacity and culture, noting that close monitoring of the progress and outcomes of all projects in this area will be vital in assessing their efficacy and impact.
Item 8 Major Projects & Progammes
Turner Contemporary
- Paul Hudson summarised progress on the Turner Contemporary project. Following the Board's approval in July 2004 for the project to proceed to appraisal a joint external appraisal was conducted by SEEDA and the Arts Council. The recommendation that an investment be made by SEEDA acknowledges the risks involved in the project and proposes that any investment be subject to:
- conditions over and above those normally included in the SEEDA funding agreement which mirror those currently being drafted by ACE;
- formal confirmation from KCC that they are prepared to underwrite the full cost of the capital project taking into account the contributions from ACE and SEEDA;
- SEEDA's contribution of £4m being grant towards the capital costs of the project only, and SEEDA having no involvement in the ongoing revenue costs.
- Peter Read, MPC Chair, confirmed that MPC considered that the risk appraisal had been properly conducted.
- Sarah Hohler summarised the funding position. KCC has underwritten the full cost of the project and has already committed £5 million. In addition Thanet District Council has committed £1 million, £500,000 has been sourced from EU funds and a further £500,000 has been raised by a KCC fund-raising committee. Estimated costs remain at £25 million. Design models of the gallery have been tested to withstand one in 10,000 year storms and it will be fitted out to meet grade A gallery standards.
- The Board observed that whilst this is an important and iconic project the link between Turner Contemporary and the wider regeneration of Margate was crucial. Pam Alexander noted that she will be chairing a new Margate Renewal Partnership which will analyse Margate's regeneration requirements and bring partners together to create momentum for real change in Margate.
- Following a free vote, for which Sarah Hohler left the room, the recommendation was accepted. The Board wished KCC well and AGREED to offer them a capital grant of £4million towards the construction of the Turner Contemporary art gallery in Margate, subject to:
- Conditions over and above those normally included in the SEEDA funding agreement which mirror those currently being drafted by ACE.
- Formal confirmation from KCC that they are prepared to underwrite the full cost of the capital project taking into account the contributions from ACE and SEEDA.
- SEEDA's contribution of £4m being grant towards the capital costs of the project only, and SEEDA having no involvement in the ongoing revenue costs.
Action: item 8, Major Projects, Turner Contemporary, paragraph 22
Susan Priest to update the Board on Margate's regeneration in the new year Snowdown Colliery
- Snowdown Colliery is the last of the 4 Kent collieries to be regenerated. The project faced significant write down issues, consequently two options were identified, continue work under contract with English Partnership or with Dover District Council. MPC endorsed the recommendation that work should continue in this way.
- The Board APPROVED expenditure of £16.325m from English Partnerships National Coalfields Programme to complete the comprehensive regeneration of the former Snowdown Colliery, Kent , by way of a new 125 year lease from the existing land owner being granted to Dover District Council or Priority Sites Ltd, with SEEDA retained under contract as the project delivery agend.
Adur Enterprise Gateway, Ropetackle, Shoreham
- Paul Hudson summarised the position on the Adur Enterprise Gateway on the Ropetackle site in Shoreham. The site is being redeveloped for a mix of uses through a joint venture with Berkeley Homes. The residential element of the scheme has progressed well but approval for further expenditure is being sought to complete the business incubation element. Therefore it is proposed that SEEDA should fit out and locate the Gateway on the first, second and third floors of the building that has been constructed as a community centre and work space. Write down on this fit-out will be offset by revenues from the residential scheme.
- Peter Read, as Chair of the Major Projects Committee, observed that the SEEDA team had accepted and learnt lessons on project cost management as a result of this scheme (for example a framework panel of developers is now used to forecast expenditure on construction of Enterprise Gateways). He therefore endorsed the expenditure and recommended it to the Board.
- The Board APPROVED an increase of £520,000 in expenditure on the construction, fitting out and operation of the Adur Enterprise Gateway Building on the Ropetackle site at Shoreham, to take the total project budget to £3.38 million with an additional write down cost of £498,000 to take the total project investment to £3.878 million.
Item 9 Lead Roles Report
Enterprise
- Jeff Alexander updated the Board on activity in SEEDA's new Lead Role.
- The Chairman queried the origins of the Local Enterprise Grant Initiative (LEGI) administered by ODPM. This is a new grant funding regime for neighbourhood renewal areas organised through the Government Offices and delivered by Local Authorities. Despite limited RDA involvement in its creation ODPM have agreed that RDAs should be fully involved in its development due to the clear links to economic development. The Chairman also requested that SEEDA take the lead on Black and Ethnic Minority Enterprise through this new lead role.
- Pam Alexander informed the Board that future lead role updates would be taken at six month intervals.
- The Board NOTED the Enterprise Lead Role report.
Item 10 Financial and Operational Review
- The Board welcomed SEEDA's efforts to get its forecast spend profile back on track (following identified slippages on some property acquisitions) noting that work needs to continue to avoid underspends. Duncan Straughen informed the Board that there will be a half year review of SEEDA's spend profile at the November Board meeting.
- The Board NOTED the Financial and Operational Review.
Item 11 Committee Reports
SESETAC
- John Parsonage thanked Bill Wakeham for his chairmanship and for navigating SESETAC's considerable agenda in focussing on three key areas, emerging technologies, SME support and SET skills. He welcomed Dr Annette Doherty as the incoming Chair of SESETAC.
- The Board welcomed Dr Doherty's appointment and SESETAC's work to date.
Audit
- Rob Douglas informed the Board that the Audit Committee had recommended sign off of SEEDA's annual accounts, and confirmed that SEEDA's policy on gifts and hospitality had been reviewed and approved and is being observed by staff.
Action: item 11; Committee Reports; paragraph 37
Duncan Straughento ensure that in future SEEDA's Annual Accounts come to the Board for approval in advance of sign off
Item 12 Projects
The Board NOTED the list of projects and MPC minutes of 23 June.
Item 13 Chairmans Report
- The Chairman informed the Board that he has been appointed to the Board of the Environment Agency where he will actively pursue the business agenda.
- The Chairman had also had productive meetings with: BT's Head of Projects Gary Bullard (according to whom the South East is on track to be the first regions to have 1million connected broadband subscribers, ahead of London); Stephen Ladyman on the infrastructure agenda; Terry Ryall, Regional Director of the Princes Trust, on the enterprise agenda in deprived areas; and the Prince of Wales, at a dinner with RDA Chairs, on the rural regeneration and enterprise agenda.
Item 14 Agency Report
- Pam Alexander reported that she and the Chairman presented the review of 2004/5 to the Regional Assembly plenary on 13 July. On the SE Plan the plenary agreed a figure of 28,900 new houses per annum, a draft sub-regional breakdown will be produced by the end of the year and final figures submitted in March 2006. SEEDA is working closely with the Regional Assembly on the evidence base for growth estimates, and ODPM is keen for business to lead on the housing agenda through the RDAs.
- She drew the Board's attention to the following points:
- Brian Bender has been appointed as DTI's new Permanent Secretary, John Alty is the new Director General, Fair Markets.
- At a high level Energy seminar with DTI security of supply was discussed at length, Joan McNaughton Director General Energy will attend the next RDA Chief Executives' meeting in October and RDA Chairs in November.
- SEEDA had signed an MOU with Beijing and received a pharmabio delegation.
- The SEEDA brunch at the International Festival of the Sea had been very successful in communicating SEEDA's work and objectives in Southampton and urban South Hampshire
- A high level meeting with Microsoft executives on 18 July focussed on synergies in CSR, education and skills. This is the first of a series of high level meetings between SEEDA and the major corporates in the SE.
- The 29 June SEEDA Parliamentary reception had provided useful engagement with SE MPs, and raised a number of issues which are being pursued.
Action: item 14; Agency Report; paragraph 42
Simon Walker to invite Joan McNaughton, Director General Energy DTI, to the January meeting of the SEEDA Board.
Item 15 AOB
- The Chairman informed the Board that he had recommended Peter Jones' appointment as SEEDA's second deputy chairman, this is currently being finalised with Ministers.
Action: item 8, Major Projects, Turner Contemporary, paragraph 22
Susan Priest to update the Board on Margate's regeneration early in 2006 (once the Margate Renewal Partnership is fully underway).
Action: item 11; Committee Reports; paragraph 37
Duncan Straughen to ensure that in future SEEDA's Annual Accounts come to the Board for approval in advance of sign off
Action: item 14; Agency Report; paragraph 42
Simon Walker to invite Joan McNaughton, Director General Energy DTI, to the January meeting of the SEEDA Board.
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