MINUTES OF THE 20th BOARD MEETING 19th March 2001, 
Exeter 
 
 
 
Present:

• Sir Michael Lickiss Chairman
• Doris Ansari (DA)
• Cairns Boston
• Nigel Costley
• Helen Holland Deputy Chair
• Michael Leece
• Alf Morris
• Tim Parker
• Stella Pirie
• Jeremy Pope Deputy Chair
• Jill Barrow Chief Executive
• Suzanne Bond Director of Strategy and Performance
• Caroline Bull Director Enterpirse and Innovation
• Nick Lewis Director of Corporate Services
• Colin Molton Director of Development
• Simon Hodgson Head of Corporate Affairs

Apologies Received:  
Peter Chalke 
Jonathon Porritt 
Michael Roberts Director of Marketing  
 
 
 
1. Minutes of the 18th Meeting  
 
Minutes of the 18th Meeting were agreed as a correct record. 
 
2. Matters Arising 
 
Jeremy Pope reported back from the Business Development Sub Group that it had been agreed that no money would be released to sector initiatives without there being a clear business plan in place 
 
3. Chairman's Update:

• The Chairman updated the Board on a number of recent engagements and including a visit with Lord Sainsbury at Hewlett Packard, a meeting with CBI South West, the About Face Conference and a meeting with all the Lord Lieutenants for the SW.
• Chairman explained that despite a number of meetings he has concerns over the role of the Countryside Agency in the Region. There is a lack of clarity over the role of the CA at regional level where they seem to be undertaking a higher profile role in rural regeneration than intended.
• The Chairman updated the Board on the current position with foot and mouth disease and setting out some of the action being undertaken by the Agency and the work with the ministerial Task Force. The progress of the regional distress fund was reported with pledges from the public and private sector. A further meeting with ministerial Task Force is planned for the 20th March.

4. Points Raised in Discussion

• Board members expressed their high level of concern at the position and particularly the impact on the tourism industry. The impact on the tourism is likely to at least x5 greater than that on farming.
• Board members also noted with concern that there is a growing impact in urban areas as well as rural areas and the South West economy as a whole.
• Nigel Costley highlighted a number of concerns that were now arising with companies laying of staff in response to the foot and mouth crisis.
• Michael Leece wanted to ensure that the RDA did not get drawn in to an inappropriate role in terms of handing out funds.
• Board members expressed their appreciation for the work of the Chairman and staff in dealing with the crisis and putting the RDA at the centre of the regional response.

5. Chief Executives Report

• Jill Barrow introduced the performance report and noted that some outputs had increased since the report had been prepared. It was also noted that we were still negotiating the purchase of some significant sites and the outputs for PIP were not yet included. The target income figure for investment activity was expected to be reached.
• It was reported that the Venture Capital Fund was not yet been agreed with EU but approval is still expected by the 30th April for a May launch.

6. January Accounts 
 
Nick Lewis updated the Board on the accounts position and expressed confidence that full spend would be achieved by the end of the year. 
 
 
7. Draft Budget 2001/2002 
 
Nick Lewis introduced the report and explained that the allocation figures were still subject to confirmation. It was reported that RDA's have secured greater year-end flexibility along with the loss of ring fencing on some but not all budgets.

• Jill Barrow alerted the Board to the problem with the land and property budget that had been reported to John Prescott in the letter attached to the Board paper. Chairman explained that this year's budget was increased during the year but that the additional sums were not automatically added to our baseline budget for future years.
• RDA are required to implement resource accounting but there are still no rules from DETR. The Chairman explained the background to resource accounting and the problems of introducing it into the RDA.
• Chairman noted that a there would be a conference for all RDA Board Members later in the year at which benchmarking (raised at earlier Board meetings) would be one of the topics for discussion.
• Board Members expressed concern at the widening gap of resource allocation between the northern and southern RDAs.

Board Decision 
The Board noted the draft budget. A final administration budget would be presented to the April Board Issues day. 
 
 
8. Inward Investment Plan 
 
Points Raised in Discussion 
 
Tim Bagshaw, Head of Inward Investment, introduced the presentation on the changes proposed for the inward investment activity. Tudor Evans, Chairman of the Inward Investment Sub Group, reported that the Sub Group have endorsed the proposed approach but there are still some problems securing the financial contributions of partners to the work of the Inward Investment team.

• It was reported that there are now 17 members of Invest SW with income of around £60K expected for 2000/2001. It is expected that there will be 35 members by the end of 2001/2002 with income of around £100k.
• The importance of ensuring that we do not have double counting in the reporting of outputs was emphasised particularly because funding partners would want to know what was being achieved with their funding.
• It was noted that some partners may wish to offer support in kind rather than in cash but that we should welcome this as it still show commitment.
• Board members sought clarification as to how we would receive inward investment funding after 2002. It was explained that it would be part of the 'single pot' funding the amount of investment made by the RDA would be for the Board to agree.

Board Decision: 
The Board approved the Inward Investment Plan 
 
 
9. International Trade 
 
Neil Blakeman of Trade Partners UK introduced the presentation on international trade strategy in the South West noting that some of the research and statistical work was still in preparation. 
 
Points Raised in Discussion 

• The links between sectors and geographical needs were explained and the Board discussed targeting and whether the skewed distribution of trade was a concern or not. It was agreed that choices are needed and priorities need to be established. The robustness of the sector approach was discussed and it was felt greater targeting of key companies and key markets might offer a more radical approach if the region is to really develop a more competitive edge in exports.
• Stella Pirie (who chairs the International Trade Forum) clarified that Trade Partners UK funding is for SMEs and current non-exporters and that the priority sectors do already represent a strong focus.
• Board Members requested some further information on trade patterns at the sub regional level.
• Chairman suggested that the Action Plan would be more focussed than the Strategy and this could pick up issues of prioritisation more clearly.

Board Decision: 
Board agreed that a further report on the Strategy and the Action Plan would be bought to the June Board meeting. 
 
 
10. Innovation Strategy 
 
Caroline Bull introduced the paper setting out that at this stage it was very much an outline strategy that would require further work with partners before being finalised.

• Board Members noted the overlap of this work with the work of Skills and Learning Board Sub Group and that a strong connection between the two areas of work needed to be maintained. It was also noted that 'innovation' is process for change, it is about management and how change is achieved
• There were some concerns that this was a very generalised strategy that at this stage did not have any direct benefits to business.
• It was proposed that a paper be bought back to the Board that sets out what could be actually done under the umbrella of innovation.
• Chairman proposed that the Board revisit 'innovation' as part of the April Board Issues Meeting and that Skills and Learning Group work with the Enterprise and Innovation Directorate to present an update on the issue as part of the New Futures discussion.

Board Decision: 
It was agreed that there would be a further discussion about innovation at the April Board Meeting Issues day alongside the New Futures item. 
 
 
11. ICT Outsourcing  
 
Nick Lewis, Director of Corporate Services introduced the proposal to enter into a seven year ICT Partnership Outsourcing Contract for the provision of ICT services to the RDA. In response to concerns from some Board Members it was noted that there were options for reducing the overall cost. 
 
Points Raised:

• Members were concerned that video conferencing should be included in the package as an essential component of operating a more sustainable approach to our work.
• Board members queried whether all the savings are realistic and whether the implementation time-scale and the timeline for savings was realistic More detail on how the savings are to be achieved was requested.
• A question was raised as to whether the contract and tender process had been audited or reviewed. It was confirmed that the RDA had taken professional advice from Bevan Ashford (legal advisors to the RDA) on the whole acquisition process.
• The Chairman proposed that having critically assessed the proposal, the RDA agree the recommendations, noting the need to present further information on some elements of the project.

Board Decision 
The proposal for a seven-year outsourcing contract with IT Net was agreed. The Director of Corporate Services was asked to re-present the business case for handheld PCs, IP telephony and document management, but not video conferencing, which the Board felt, should be included in the essential category. The Board asked to be kept briefed on progress of the project and to be given an update at the May Board meeting. 
The Board agreed that the Chief Executive be given the authority to agree terms and sign the outsourcing contract. 
 
 
12. Regional ICT Strategy 
 
Nick Lewis introduced the item supported by Colin Bluck and Jim Brooks from Smart SouthWest. 
 
Points Raised

• Board members were content with the broad concept of the Strategy but noted a number of issues that need to be considered; who are we trying to influence, what is trying to be achieved and is it achievable. Board members asked for clarification on the link to the RDA's own ICT Strategy and whether the RDA had the management resources to ensure that the strategy can be delivered. It was noted that the Agency is trying to act as a catalyst rather than trying to manage or fund the process.
• Board members noted that local authorities have a 'e' business targets for all their the work and that AM noted that there are considerable centres of expertise in the region (e.g. Hewlett Packard) which do put the SW in the forefront of thinking about the application of ICT.
• Acknowledged that ICT development is a high-risk area and that the RDA and partners needed to understand the consequences of failure. It was also noted that the ICT infrastructure in the SW was poor and that this would constrain progress in the region.

Board Decision: 
The Board agreed the proposals to develop a Regional ICT Strategy. Michael Leece Jeremy Pope and Alfred Morris agreed to be involved with the ICT Working Group. 
 
 
13. PRESENTATION

• South West Lottery Distributors The Board received a presentation from Pippa Warrin of South West Lottery Distributors setting out the work of the lottery funds in the Region and identifying those areas where the RDA and SWLD might work more closely together.

The Board thanked Pippa Warrin for her presentation. 
 
 
14. PRESENTATION

• South West Tourism The Board received a presentation from Malcom Bell of SouthWest Tourism detailing the work of the organisation and setting out the impact of the current crisis on the tourism industry in the SW. The Board discussed the current areas of co-operation and those issues on which the RDA and the SWT could work together to alleviate the impact of foot and mouth disease on the tourism economy.

The Board thanked Malcolm Bell for his presentation 
 
 
15. Regional Planning Guidance 
 
Board Members noted that the revised submission had been sent to the DETR.  
 
 
16. Insurance  
 
Nick Lewis presented a report on the RDA's insurance arrangements for those areas of operation where there is a legal requirement to do so or where a business case can be made (under government rules there is a presumption of no insurance necessity). 
 
 
17. Executive Reports 
 
Points Raised

• The Development Report item on the Celtic Film Festival needs to redrafted.
• It was reported that the pay settlement of 2.5% was rejected by the unions following a ballot of staff, but that the settlement was being implemented as an interim payment.. The RDA would be discussing a revised settlement with DETR, although the Chief Executive noted that she was not hopeful of securing an improved Pay Remit.

18. AOB 
 
Nil 
 
 
19. Date of Next Meeting 
 
Board Issues Day 23rd April 2001  
Gloucester City Council Offices,  
Gloucester. 
 
APPENDIX 1 
 
Items listed for future action in minutes