MINUTES OF THE 25th BOARD MEETING 17 September 2001 
North Quay House, Plymouth 
 
 
 
Present:

• Sir Michael Lickiss Chairman
• Doris Ansari
• Cairns Boston
• Peter Chalke
• Nigel Costley
• Tudor Evans
• Helen Holland Deputy Chair
• Mike Leece
• Alf Morris
• Timothy Parker
• Stella Pirie
• Jeremy Pope Deputy Chair
• Jill Barrow Chief Executive
• Suzanne Bond Director of Strategy and Communications
• Caroline Bull Director of Enterprise and Innovation
• Nick Lewis Director of Corporate Services
• Colin Molton Director of Development
• Simon Hodgson Head of Corporate Affairs
• Melanie Farrant Chairman's Office

Apologies Received: 
Jonathon Porritt 
 
 
1. Minutes of the 24th Board Meeting  
Minutes of the 24th meeting were agreed as a correct record. 
 
 
Matters Arising 
(a) The Chairman reported that, after a meeting with Robin Teverson, the matter of non-executive directorship of Finance Cornwall had been resolved, with Finance Cornwall and Finance South West each appointing one and the RDA appointing two non-executive directors.  
 
Board Decision 
The Board agreed in principle to become a member and guarantor of Finance Cornwall, subject to negotiations to

• minimise the reputational risk of the RDA,
• restrict the powers of the executive directors and actions of the company by amendment of the Memorandum of Articles of association of the company,
• minimise the reputational risk and personal liability of the RDA officers appointed as non-executive directors.

(b) The Chief Executive tabled a paper showing certain areas of SWRDA's performance against other RDAs. Members welcomed this information and asked to receive it regularly. It was requested that full comparison data be provided with any qualifications set out. 
 
(c) A cross-RDA meeting for all board members was being arranged for February 2002 to be held over one and a half days in Birmingham. Members would receive further information as soon as possible. 
 
(d) A plan of area briefings for board members would be drawn up and circulated. 
 
(e) A paper on interfaces between the RDA and the Regional Assembly would be put to a future meeting. 
 
 
2. Chairman's Report 
 
Members noted the commitments of the Chairman since the last Board meeting. Attention was drawn to:

• The Chairman's attendance at the opening of the second factory at the Honda plant in Swindon. Honda's worldwide sales were up by 14%; and, from the autumn, Civics made in Swindon were to be sold in Japan.
• Alf Morris representing the Chairman at a dinner for a visiting Korean delegation.
• The RDA Chairs' meeting with Ministers had been broad ranging. Lord Falconer had expressed his intentions to change the current planning processes. A White Paper on this subject was anticipated in the spring.
• The Chairman reported that White Paper on regional governance was due in January 2002.
• The Chairman and Chief Executive were currently involved in the second round of meetings with SRPs and would ensure that there was no misunderstanding regarding the availability of funding previously available through rural development programmes.
• The Chairman would be visiting New York in October and hoped to assess the business climate since his last visit in June especially following the events in Manhattan.

3. Chief Executive's Performance Report 
 
Jill Barrow introduced the quarterly performance report. Projects in the Strategic Programme which had not been approved until June would appear in the next quarter's report. Organisation information for business development partners was unavailable due to the FMD crisis. Figures for job safeguarding and creation were low due to the economic downturn. Jill Barrow suggested that members may like to give some consideration as to how the RDA should operate in a period of recession.  
 
Members welcomed the inclusion of sub region reports, and debated how the range of the RDA's work could be effectively communicated to partners and the public. Proposals would be made to the Board meeting in January. 
 
 
4. June 2001 Accounts 
 
The report showed that the 2001-02 budget was already largely committed and that if DTI implemented the negative year end adjustment proposed the situation would be very serious. In Nick Lewis's view the proposed adjustment had no accounting justification and had to be seen in the light of the inadequate L&P allocation for 2001/02. . SWRDA had repeatedly pressed the Department to unlock funding held in reserve and this pressure needed to be maintained. Members were encouraged to lobby ministers if opportunities arose.  
 
The particular qualities of the South West meant it could not be assessed alongside other regions, and it was suggested that the SWRDA should encourage groups looking at the regions to explore their differences to give independent support to the South West argument for additional funding. It was further suggested that the SWRDA, the Regional Assembly and the region's MPs should submit a collaborative application under the Spending Review. 
 
 
5. SWRDA's Regional Gateways Strategy 
 
The Infrastructure Sub Group had drawn up a Regional Gateways Strategy which was presented to the Board.  
 
Members agreed the need to be realistic about the status, functions and potential of the region's airports in order that appropriate strategies could be drawn up to meet the region's needs. 
 
Board Decision 
The Infrastucture Sub Group was asked to re-examine the strategy. In the meantime, the RDA would continue to support the market position of each airport and its future potential role and activities. 
 
 
6. Regional Foot and Mouth Contingency Plan 
 
The Contingency Plan had been drawn up in anticipation of a renewed outbreak of FMD in the autumn. It was essential that lessons were learned from experiences during the spring. The Contingency Plan was an amalgam of issues identified by a number of agencies, and it was proposed it be submitted to government to encourage strategic thinking. Further bankruptcies were anticipated in the autumn when grants ran out. The RDA needed to examine how to regenerate the South West economy to support regional businesses. A list of potentially eligible organisations was already being compiled should additional funding be made available. 
 
Jeremy Pope agreed to pursue the question of vaccination when he met Commissioner Fischler later in September 
 
Members requested a report at a future Board meeting illustrating firstly, the effects of the RDA's work arising from FMD and secondly, sectors where it had not been able to help. 
 
Board Decision 
Members endorsed the Contingency Plan and agreed that the Chairman should write to Patricia Hewitt and Alun Michael highlighting the anticipated problems.  
 
 
7. Corporate Plan 2002-04 
 
The draft work programme had been circulated with the agenda and was currently with partners for consultation. A working group of Jeremy Pope, Alf Morris and Mike Leece would consider targets and priorities of the Corporate Plan before draft figures were made available to the Board prior to the Issues Day in October when members would review the programme. The Regional Assembly was holding two scrutiny days in October and November to examine the programme, which would be attended by the Chairman, Jill Barrow and Suzanne Bond. 
 
The Chairman reported that the Department had been persuaded that RDA Corporate Plans should contain clearly stated assumptions on which targets and figures were based, together with a sensitivity analysis. 
 
It was agreed that, when consulting partners, organisations should be invited to contribute a view in addition to their representatives as individuals. 
 
 
8. Board Member Expenses 
 
Members noted a letter and press release from the Inland Revenue, circulated with the agenda, concerning the tax status of their expenses. 
 
NB. The DTI had confirmed that board members' remuneration would be increased by 3% from 1 April 2001, bringing the annual remuneration for ordinary board members to £7419. 
 
 
9. Plymouth City Airport 
 
A paper was presented to the Board seeking their approval to proposals to improve safety at Plymouth City Airport. The paper set out a summary of the proposals and recommends an investment by the Agency of £4.6m.  
 
The revised RDA funding figure was less than the £8m originally approved in principle, with a large proportion of this sum allocated to realignment of the road and £1.25m allocated to runway works to ensure compliance with safety requirements. 
 
Board Decision 
The Board approved an investment, subject to DTLR approval, of £4,589,991 in the project in 2 phases: 
 
i) Contribution towards runway resurfacing and centreline lighting of £1,250,000 during the financial year 2002/3. 
 
ii) Contribution of £2,928,678 (plus £411,313 to cover professional fees to date together with legal and project monitoring fees) from financial year 2002/3 onwards, towards the relocation of the A386, to provide a 90m runway end safety area to meet CAA requirements, subject to Plymouth City Council obtaining planning consent and confirming that they will accept full responsibility for cost overruns. 
 
Both phases should be subject to an appropriate clawback mechanism, secured by a charge on the airport, and Plymouth City Council demonstrating that they have sufficient resources to complete the project within budget. 
 
 
10. Standing Items 
 
a. Enterprise and Innovation Directorate

• £4.1m had now been paid to businesses adversely affected by FMD in the region.
• The Economists Panel was to examine and assess the impact of the terrorist attack on the USA.

b. Strategy & Communications Directorate

• The Regional Assembly was keen to be involved in the Regional Observatory hub management and the RDA was negotiating a tripartite approach between the Agency, the Assembly and GOSW. The title 'Observatory' was to be re-examined.
• A number of Board Members were involved in the launch of the integrated South West office in Brussels.
• It was clarified that the Food and Drink Strategy referred to in the Report was a Sector Group Strategy and not a formal RDA document.

c. Corporate Services Directorate

• The apparent high turnover of staff was attributed to a process of natural change, as the RDA has been in place for well over two years, the end of the RDA's 'honeymoon period' and some staff securing promotion outside of the RDA. Similar turnovers had been experienced by other RDAs. The low level of last years Pay Award and delays in the current year were exacerbating the position.

d. Development Directorate

• A meeting with Urban Splash had been successful and the first phase of development at Royal William Yard had been agreed. A paper would be put to the Board in October when members would receive a presentation from Urban Splash.
• Confirmation of approval for the Gloucester Docks project had been received from the Department. Outstanding issues were to be re-examined and arrangements for the development formalised. The RDA would seek funding from the Department. If this were unforthcoming the RDA would renegotiate phased payment with Crest.
• Regional Planning Guidance had been published in its final form. Comments made by the RDA during the drafting had largely been incorporated. An information paper setting out the RDA's input to RPG would be included at the next Board meeting.
• The RDA's consultation responses since the last Board meeting were noted.

f. Decisions taken using Urgency Procedures 
No decisions requiring urgency procedures had been taken since the last Board Meeting. 
 
g. Documents Sealed 
Documents sealed between 1 July and 30 August were noted. 
 
h. Loan Write Offs 
Loan write offs since 1 April 2001 were noted. 
 
i. Remuneration Committee minutes 
Minutes of the Remuneration Committee meetings on 4 September 2000, 18 December 2000, 19 Marsh 2001 and 21 May 2001 were tabled and noted. 
 
j. Any Other Business 
There was no other business. 
 
k. Date of Next Meeting 
Monday 23 October 2001 at the Portland Heights Hotel, Dorset. 
 
 
APPENDIX 
 
Items listed for future action in minutes