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MINUTES OF THE 69th MEETING OF THE
SOUTH EAST ENGLAND DEVELOPMENT AGENCY
HELD ON 26 MAY 2005
SEEDA HEADQUARTERS, GUILDFORD
Present:
James Brathwaite (Chairman),
Rob Anderson,
Liz Brighouse,
Poul Christensen,
Rob Douglas,
Keith House,
Terry Mills,
John Peel,
Peter Read,
Phil Wood,
Imitiaz Farookhi
In attendance:
Pam Alexander,
Paul Hudson,
Paul Lovejoy,
John Parsonage,
Duncan Straughen, Simon Walker,
Donal Galligan, Valerie Carter (for item 6),
Greg Ward (for item 5)
Item 1 Welcome and apologies for absence
Apologies had been received from: Peter Jones, Bill Wakeham, Sarah Hohler and Mary McAnally.
Item 2 Minutes of the last meeting (26 April 2005)
- Subject to minor corrections the minutes were AGREED as a correct record of the meeting.
Actions from previous meetings
- Rob Douglas reported that he had written to members of the Learning and Workforce sub-Committee.
- John Parsonage reported that the new online Research Excellence Directory would be demonstrated to the Board at lunchtime.
- Paul Lovejoy reported that there had been minimal change to RDAs' Lead Roles following the election. Departmental responsibilities remained unchanged although SEEDA would swap with emda the Manufacturing Lead Role for the Small Business Lead Role.
- Rob Douglas reported that he had followed up his suggestion of a Board session with Alex Oliver of the Forum for Philosophy in Business. The Forum will submit quotes for a facilitated session with the Board and for performing a 'rigour review' of the revised RES.
Item 3 Declarations of interest
- Rob Douglas as acting Chair of the Surrey Economic Partnership for item 7.
- Phil Wood items 7, 12 and 13 (economic partnership member).
- Poul Christensen as Chair of Defra's investment committee for item 8.
Item 4 Post Election rummage
- Paul Lovejoy gave a presentation on developments in Whitehall since the election. The Board then held a "rummage" discussion on issues relating to the implications for SEEDA of Ministerial changes in the Government.
Item 5 Policy Update: Enterprise Hubs & Gateways
- Greg Ward gave a presentation on SEEDA's £2million p.a. business incubation activities through its Enterprise Hubs and Gateways.
- The SEEDA Enterprise Hub incubation initiative is the largest in world involving 800 companies (Shanghai's programme is second with 500 companies). It targets innovative companies looking to commercialise technology in domestic and international markets. There are two categories of membership. Network members receive a general level of support whilst Portfolio members (those with the highest chance of growth, around 180 companies to date) are given an intensive level of business support by trained mentors using advanced diagnostic tools that take entrepreneurs through the business analysis process (e.g. market evaluation; investment readiness training; specialist intellectual property advice; all delivered by trained mentors). The end product is an outline business plan for use in seeking further investment. SEEDA has succeeded in leveraging £8.8million investment into these portfolio companies over the last 4 years. Resources to support portfolio members are limited but SEEDA is looking to increase the number supported from 180 to 300.
- Through the Enterprise Gateways 144 companies have been created, 2489 companies intensively assisted (with 30 or more hours of engagement). The Gateways focus on reaching specific groups with entrepreneurial potential in disadvantaged areas e.g. young enterprise; women's enterprise (50% of new companies in the US are formed by women compared to 15% in the UK); communities in deprived wards.
- The Chairman and Board members noted and welcomed the success of SEEDA's efforts in this area. The Chairman requested figures on the total annual turnover of Hub and Gateway companies and asked how SEEDA measures success in the Hubs and Gateways. Imitiaz Farookhi suggested that the Hub companies should be encouraged to contribute to innovative forms of public service delivery (like for example the Future Builders programme in the housing sector).
- The Board NOTED the update.
Action: Item 5 Policy Update: Enterprise Hubs & Gateways; paragraph 13
Greg Ward to report back with an analysis of success of Hub and Gateway companies and a strategy for moving companies on with targets.
Item 6 Project Update: Sustainable Rural Communities
- Valerie Carter updated the Board on developments in SEEDA's work with rural communities since the 2002 Rural White Paper, and the Haskins review of modernising the rural delivery agenda, which produced the 2004 Rural Strategy and a new Defra PSA target on 'improving access to services' in rural areas.
- Under the Rural Strategy delivery of the Countryside Agency's programmes transferred to the RDAs in April 2005, some of Defra's socio-economic support schemes will follow.
- SEEDA's work in creating sustainable rural communities is largely concentrated in the deprived areas of West Hampshire, the Isle of Wight, Kent and Sussex. It takes the form of, for example: new business creation - through de minimis capital grant from SEEDA (small but successful); rural development programmes (which ended in 2004 and have been absorbed into the Area Investment Frameworks) bidding for EU funding for example through the EU Leader+ programme, SEEDA had 5 successful bids in the third phase worth £2.5million over 5 years (more than any other English region).
- The current focus is on three key areas:
i. Building SEEDA's increased rural delivery role into the RES (including planning ahead for the new Defra transfers)
ii. Ensuring effective delivery of the region-wide small town programme
iii. Delivering on inherited CA commitments, and developing a new programme for meeting the new PSA target.
- The Board expressed an interest in: how the core cities concept interacts with the rural agenda in the SE given its high population dispersed among a high number of medium and smaller sized towns; how SEEDA measures the effectiveness of its strategic influencing role in the context of the rural agenda; and in the development of a rural transport framework for the SE.
- Valerie Carter responded that the EU Peri-urban regions initiative (PURPL), led by SEEDA and the Dutch national government, is looking at issues affecting peri-urban areas and how to cope with rural areas and their issues in this context. This initiative is receiving much interest from other EU regions and the first conference will be held in October at Sandown racecourse.
- On strategic influencing Valerie Carter felt that SEEDA's strategic networks are working well in bringing together partners with a common interest and getting them to agree priorities and then engage with SEEDA, for example the Farming and Rural Industries Group has worked together in this way. Evaluation is done in collaboration with partners.
- On the rural transport agenda Valerie Carter noted that the Regional Assembly has the lead through the Regional Transport Board in developing a vision for rural transport in the South East. Paul Hudson added that SEEDA has been involved in a pilot project in East Sussex on rural transport that focussed on demand for travel and the need to move between destinations for socio-economic reasons. He observed that there is a need to stimulate innovative schemes like this and to influence the RTB as it progresses.
- The Chairman welcomed SEEDA's efforts and stressed the importance of the rural agenda in the South East. Given this he expressed concern at the 'Wheels to Work' programme on the Isle of Wight coming to an end.
- The Board NOTED the update.
Action: item 6; Project Update – Sustainable Rural Communities; paragraph 20
Valerie Carter to report back to the Board on the innovation and enterprise agenda for rural areas and on the analysis of the Countryside Agency programmes.
Item 7 Economic Partnerships: 3 year programme
- The Chairman and Keith House queried the funding mechanisms for the South East Economic Partnerships (SEEPs), and asked whether there is scope for driving good performance through sliding scales of grant according to SEEP performance.
- Paul Lovejoy clarified that the core grants the SEEPs receive cover their running costs and there is £170,000 available for the strongest SEEPs bringing forward the best projects. SEEDA's three year commitment to the SEEPs is set out in the Corporate Plan with in-principle allocation of £1 million to fund them; proposals for 2006/07 and 2007/08 would be brought to a future Board meeting.
- The Board AGREED the 2005/6 funding for the SEEPs.
Action: item 7; Economic Partnerships – 3 Year Programme; paragraph 26
Paul Lovejoy to present to Board members, with guests from the SEEPs, an overview of all the money going into and through SEEPS.
Item 8 SEEDA response to Gatwick master plan consultation
- Paul Hudson reported on BAA Gatwick's consultation on accommodating the expansion of Gatwick up to 45 million passengers, and sought Board endorsement of SEEDA's proposed response to the consultation. Key points are that it supports expansion within Gatwick's existing footprint but that this needs to be supported by better surface access i.e transport infrastructure.
- The Board supported this strongly in line with its position on airport expansion, in particular emphasising that rail links to and from Gatwick need to be maintained and improved, particularly from the west of the region. Poul Christensen supported the response but queried the extent of SEEDA's engagement with the airlines at Gatwick.
- The Board AGREED SEEDA's proposed response to the Gatwick master plan consultation, and urged continued engagement with all the key players.
Item 9 Major Project: Ashford, Crouch's Garage, Dover Place.
- Commenting on Crouch's Garage and Dover Place projects in Ashford Pam Alexander drew the Board's attention to SEEDA's approach to write-downs. She confirmed that SEEDA continues to look for full write-down cover on ODPM funded projects. In the case of Ashford, whilst there was still a small write-down which remained to be covered by SEEDA she emphasised that Paul Hudson had reached an agreement with ODPM and local partners on pooling and using revenue to recoup the cost of most of the write-down on this, and this was a result which should not prejudice SEEDA's future position.
- The Board queried progress generally and specifically on the learning campus at Ashford.
- Paul Hudson reported that work is progressing well with the delivery board fully committed and appropriately staffed to make things happen. ODPM was very positive about SEEDA's role in Ashford. On the learning campus he added that there is strong support for delivering it with Kent & <ol> Medway LSC committed and taking things forward. There is one more stage before it goes for planning approval.
- Pam Alexander informed the Board that Ashford is bidding for £90 million out of the £250million on offer in the latest round of ODPM funding.
- The Board APPROVED the purchase of the former Crouch's Garage site at Dover Place, Ashford.
Item 10 Financial and Operational Review
- The Board were concerned that SEEDA's performance on payment of invoices remains unacceptable and must be addressed. Duncan Straughen agreed commenting that this issue is being tackled urgently. The new IT systems now in place are driving better performance and are identifying any blockages, and we are also linking invoice payment standards to staff personal objectives. He would report to the Board monthly on invoice payment performance.
- Rob Douglas queried the cumulative 17% variance against quarterly targets on use of incubator units. Jeff Alexander explained that this is due to some hubs and gateways not being established, for example High Wycombe.
- The Board repeated their desire to see the profile of expenditure more evenly distributed across the financial year. Duncan Straughen noted that SEEDA staff are working hard on profiling and spend predictions to achieve this now that the systems made this possible and undertook to present the profile at future meetings.
- The Board NOTED the Financial and Operational Review.
Item 11 Lead Roles Report – Science and Innovation
- The Chairman welcomed the Science and Innovation Lead Role report from Ed Metcalfe, observing that SEEDA should push for consistent funding to support science and innovation in the South East as compared to the other English regions.
- Commenting on the Chief Scientific Advisor's comments in the media on nuclear fusion and its potential for solving the problems of climate change and security of energy supply, the Chairman proposed that the UK, through the Rutherford Appleton laboratory, should aim to become the world centre for fusion research. The Board supported the Chairman in writing to Ministers.
Item 12 Progress Report: South East Regional Centre of Excellence
- Paul Hudson updated the Board on developments with the South East Regional Centre of Excellence, which brings together a wide range of bodies and initiatives with the common goal of driving excellence in regeneration and urban renaissance.
- The Chairman welcomed the Centre and noted the positive report from the Regional Assembly Select Committee on SEEDA's role in regeneration in the South East. He observed that whilst SEEDA has a key role to play SEEDA's partners are equally important.
- Terry House observed that the elements of the centre of excellence idea were working well in many SE Local Authorities through the Design Clubs and Design Champions initiative. Keith House agreed, adding that there is a need to encourage Local Authority Planning Officers to add value by challenging projects and demanding higher standards.
Item 13 Projects
- Peter Read noted that the projects forward look that has been put in place is working well. He queried the approval status of the Environmental Sector Consortia proposal.
- Jeff Alexander explained that normal SEEDA procedures had been followed for the sector consortia proposals. The Board had approved the programme in principle and business plans for each sector consortia have been brought forward for approval by the Project Advisory Board as £750,000 projects.
Action: item 13; Projects; paragraph 46
Jeff Alexander to give the Board a full update on all six sector consortia in September.
Item 14 Chairman's Report
- The Chairman reported that he had held an interesting meeting with Sir Bernard Bernard Ingham & David Kirby on resolving the problems of the public/private interface.
- Following his attendance at a RAISE board meeting (with Liz Brighouse) the Chairmen suggested that Board would benefit from a presentation on developments in the voluntary sector which generates 3.2% GDP per annum. Imitiaz Farookhi agreed that the time is right for the Board to consider issues around volunteering in the South East. There is increased HM Treasury interest in volunteering, and a new public body has been set up to encourage volunteering by young people,
- Pam Alexander proposed a Board rummage on volunteering linked to the RES review with internal and external speakers to facilitate discussions.
Action: item 14; Chairman's Report; paragraph 49
Paul Lovejoy to arrange a Board rummage on volunteering.
Item 15 Agency Report
- The Greater South East (GSE) brings together SEEDA, EEDA and the LDA (Agency Report paragraph 32) and Pam Alexander reported that efforts are currently being focussed on key areas for cross boundary engagement such as inter-regional transport issues. She also informed the Board that SEEDA would become RDA Chair of Chairs from April 2006 for six months, and would begin shadowing emda in October.
- Rob Douglas reported that he had visited the UK Permanent Representation in Brussels and had met with Carlos Tevares from the Commission President's office, with whom he discussed the Lisbon agenda and raised the issue of UK visa cost increases. UKREP helpfully informed him that EU Member States have to submit a Lisbon action plan in the near future and that HM Treasury would be looking to RDAs to feed into this on regional issues. Paul Lovejoy welcomed this and noted that the action plan and indeed the UK Presidency will be significant opportunities for RDAs to feed into the debate on Euro-zone productivity.
Item 16 AOB
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Pam Alexander noted that the venue for the June Board meeting would be Chatham, followed by a tour of Chatham Maritime. She also noted that due to re-arrangement of a Thames Gateway Strategic Partnership meeting the September Board meeting would have to be re-arranged.
SUMMARY OF ACTIONS
Action: item 5; Policy Update – Enterprise Hubs & Gateways; paragraph 13.
Greg Ward to report back with an analysis of success of Hub and Gateway companies and a strategy for moving companies on with targets.
Action: item 6; Project Update – Sustainable Rural Communities; paragraph 20
Valerie Carter to report back to the Board on the innovation and enterprise agenda for rural areas and on the analysis of the Countryside Agency programmes.
Action: item 7; Economic Partnerships – 3 Year Programme; paragraph 26
Paul Lovejoy to present to Board members, with guests from the SEEPs, an overview of all the money going into and through SEEPS.
Action: item 13; Projects; paragraph 46
Jeff Alexander to give the Board a full update on all six sector consortia in September.
Action: item 14; Chairman's Report; paragraph 49
Paul Lovejoy to arrange a Board rummage on volunteering.
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