MINUTES OF THE 22nd BOARD MEETING 21st/22nd May 2001 
Menzies Hotel, Bath  
 
 
 
Present:

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

Apologies Received: 
Doris Ansari 
Tim Parker (Day 2)  
Tudor Evans (No apologies received)  
 
 
1. Minutes of the 19th/20th/21st Meeting 
Minutes of the 19th/20th/21st Meetings were agreed as a correct record. 
 
2. Matters Arising 
No matters were raised. 
 
3. Chairman's Update 
The Chairman updated the Board on a number of recent engagements and issues:

• The funding for phase 1 of the Combined University for Cornwall has been approved by Ministers.
• The meeting with Jocelyn Stephens of English Heritage at Royal William Yard had proved useful to the preparation of proposals for the future of the site.
• The meeting with a Taiwanese trade mission in Bristol had been very successful with a number companies actively looking for partnership deals in the Region. A reciprocal visit to Taiwan is being planned.
• The Chairman reported on his meeting with Prince Charles who had visited Cornwall for a briefing on Objective 1. The meeting had discussed ways in which the Duchy could work with Objective 1.
• The Board was briefed on the very positive report prepared by the Department for the up-coming RDA Chairmen's meeting on the future role of RDAs.

4. Chief Executives Report 
 
Jill Barrow introduced her report detailing the RDAs progress against planned targets and outputs in the last quarter. It was reported that this was the last report in this style and that reports in future would be made quarterly with additional detail on the Strategic Programme. 
 
Points Raised 
There were no Points Raised. 
 
5. 4th Quarter Accounts 
 
Nick Lewis introduced the accounts noting that this was last time that the accounts would be presented in this format as the RDA changed over to resource accounting. 
 
Point Raised

• There was a small under-spend of £187K on allocated resources mostly on ring-fenced funds Rapid Response and Derelict Land Grant
• Income targets had been met or exceeded.
• There was additional expenditure on administration to fund the ICT contract.
• Board Members queried whether with the change to resource accounting we would
• be able to carry unspent funding forward to the following year. Nick Lewis noted that in theory the RDA how had full end year flexibility. Administration budgets are ring-fenced for one more year and transfer from programme budgets cannot be made. In 2002/2003 there will be no ring fence on the administration budgets.
• There were three additional development projects in excess of £.5m in the fourth quarter: Clodgey Lane (Cornwall) Morlands (Somerset) and Eden (Cornwall)..
• It was reported that future commitment on development projects is building up and although not all will come forward next year, there is clearly pressure on the land and property budget. The Chairman noted that the RDA has already presented a case demonstrating that we are £10m short of needs for 2001/2002. As previously reported, the grant received this year is likely to provide the basis for future years settlements which will perpetuate the under-funding problem.

Board Decision 
The Board noted the accounts.  
 
6. Risk Management Strategy (RMS) 
 
Alfred Morris (Chair of the Audit Committee) introduced the paper and the presentation by PricewaterhouseCoopers on the RMS. The need to produce a RMS as part of the process of preparing the new Statement of Internal Control was highlighted. It was also emphasised that the RMS was not the sole concern of the Audit Committee but of the Board and the Executive Management.

• PricewaterhouseCoopers led an exercise for the Board in assessing the key risks to the RDA. The output from the session will be feed into the preparation of RDAs RMS and Risk Map. This in turn will feed into the Corporate Plan process, to be presented to the Board towards the end of the year.

7. Skills Development Fund 2001/2002 Evaluation Report 
 
CB introduced the paper advising the Board on the external evaluation of projects supported by the Skills Development Fund (SDF) 2000/2001. The Report evaluated projects against the Regional Strategy, the quality of the management, appraisal criteria and best practice. 
 
Points Raised

• Board Members welcomed the study noting that it gave them a deeper insight into outcomes of one area of the RDA's work. The report provided assurance that the SDF was achieving the objectives set for it in a way relevant to the Regional Strategy and the needs of the region.
• The contribution of Sub Regional Partnerships to the programme and the relevance of projects to the Sub Regional Strategies were noted.
• Board Members considered that this type of programme evaluation should become a more common approach to monitoring and evaluation in the future.

Board Decision 
The Board welcomed the report and agreed the recommendations. 
 
7b South West Skills Development Fund 2001/2001 
 
Caroline Bull introduced the paper setting out the process that had been adopted to allocate the SDF for 2001/2002. The South West had been allocated £3.4m for projects this year. The fund is targeted on three issues; Sub Regional Partnership proposals, regional priority sectors and RDA initiated proposals consistent with the Regional Strategy. The projects proposed for funding support were presented. 
 
Cairns Boston declared an interest in projects 11/01 Food and Drink Sector and Project 14/01 Tourism Taskforce. 
 
Points Raised

• Chairman asked that these projects should be given more publicity.
• Board Members requested that more information be given on the harder outputs being achieved by schemes rather than the softer measures being reported in the paper. CB reported that the more measurable outputs from the projects were available and Jeremy Pope noted that the business plan for each bid was more detailed containing the information being requested.
• Board Members felt that it was increasingly important that the RDA understood how SDF projects link to other priorities and actions in the sub regions.
• Jill Barrow reported that closer co-operation with Learning and Skills Councils on projects would come in the future as they became more settled. CB noted that LSCs have been kept briefed on the progress of the SDF this year..

Board Decision 
The Board endorsed the proposals for the 2001/2002 SDF. 
 
8. Supply Chain Development Strategy 
 
CB introduced the paper which sets out the objectives and plans for the Regional Supply Office during the next year. The strategy has four key elements; raising awareness of supply chain concepts, initiating improvement programmes, supporting regional clusters and emerging sectors and maximising the impact of integrated working with regional partners. 
 
Points Raised

• Board Members asked that they be given more information about the work of the Regional Supply Office.

Board Decision 
The Board endorsed the Supply Chain Strategy for 2001/2002 and it was agreed that an information paper on the work of the RSO would be included for the next Board Meeting. 
 
9. Foot and Mouth Report 
 
The Chairman and Jeremy Pope gave an update on progress on foot and mouth action and the proposals for the £11m allocated by Government to the RDA. The funding has been given in two tranches, the distribution of which has to be agreed with the Department through the preparation of business plans. Jeremy Pope emphasised the care with which this distribution strategy has been prepared. 
 
-£5m for Devon, Gloucestershire and Exmoor. The terms for distributing this funding are agreed with the Department. 
-£6m for a wider action. The terms for this funding have not yet been agreed.

• Peter Chalke welcomed the fact that the second tranche of money would be available to Wiltshire which had been impacted badly despite having relatively few cases
• Board Members queried whether Business Links had the competency to manage the funds available. JP emphasised that he believed that they did but under some careful guidance from the RDA.
• JP noted that some of the RDA's base allocation had been allocated to South West Tourism for promoting the Region. In addition to this the Department of Culture Media and Sport had allocated £12m across the country as a whole for tourism promotion in response to the foot and mouth crisis, a sum which fell far short of the £36m that had been asked for.
• ML asked whether there was going to be a check on the effectiveness of funding distribution. It was confirmed that there would be a check after the first 10% had been distributed to Business Links and further review at the end of the funding programme.
• JB noted that a newsletter for partners on the foot and mouth action was being prepared by the RDA.

Board Decision 
The Board endorsed the two recommendations set out in the paper.

• The proposal to use £5m to support businesses in Devon, Gloucestershire and Exmoor.
• That an initial tranche of 10% of the additional £6m be made available to the areas not covered above, subject to a pending analysis of other RDA's actions and confirmation of capacity and capability of Business Links administration.

11. Executive Reports 
 
Points Raised: 
 
Enterprise and Innovation

• Outputs for inward investment activity in 2000/2001 were updated;

- Value of business attracted had increased to £89m. 
- There were now 20 members of Invest SouthWest

Strategy and Performance

• Consultation on the Corporate Plan was now underway. Meetings had been held to date with Sub Regional Partnerships and the Social and Economic Partners in the Regional Chamber have been very helpful.
• The Targetry Framework proposed by Ministers for RDAs has been rejected by CEO and Chairs and will now be re-thought by the Department assisted by the RDAs.
• Amer Hirmis has been appointed as economist for the RDA.
• The new integrated South West UK Brussels Office is now fully staffed.
• Urban II (EU Community programme) has now been agreed.

Marketing

• The Board were updated on progress with the Image of the Region FFA.
• A fundamental review of RDA publications is being undertaken.

Development

• It was reported that the development on the recently acquired Morlands site at Glastonbury was now likely to be a mixed development rather than retail as proposed by the previous owners.

Corporate Services

• Board Members welcomed the RDA's internal Green Action Plan as a good start towards reducing the impact of the Agency's operations on the environment.

12. AOB 
 
SRB Bristol 
HH reported on the problems being encountered in the Hartcliffe and Withywood SRB scheme following the change in emphasis rules on the capital/revenue split. The problem for this project has been resolved but there is concern that this new emphasis (imposed by the DETR on all RDAs) will have a wider impact across the RDA's activities. Dawn Primarolo, Bristol MP and Treasury Minister, has become aware of the problem and asked for clarification on the issues. 
 
It was agreed that the Chairman write to DETR setting out the problem and noting that Department was alerted by the RDA in January that this split would have a direct impact on funding for projects to which the RDA is already committed. 
 
Mike Leece queried whether the same problem would arise for other SRB schemes. This is being worked out for each SRB schemes as delivery plans come in for approval and Board Members would be alerted if further problems arose. 
 
Marine Aviary Project in Torquay 
Colin Molton explained the problems that have arisen with this development and the issues that emerged over the listing by English Heritage of the 2nd World War loading ramps. CM noted that the proposed development project was not of sufficient quality and a meeting had been held with all parties to discuss the project. It has been agreed that the RDA will continue to support the Marine Aviary Project and will seek expert advice on the problem of the loading ramps.  
 
South Crofty 
Colin Molton explained that, at a meeting with three RDA Board members (Mike Leece, Doris Ansari and Nigel Costly) to discuss the St Austell project with local partners, South Crofty had also been discussed. Following this meeting an update paper on this project was circulated to all Board Members. The paper arrived with Board Members just after the April Board Meeting but it was felt that the issues in the paper could have been raised at the meeting. It agreed that the issues in the paper would be discussed at the next Board Meeting. 
 
Next Meeting 
10 am June 18th 2001 Tennex UK, Salisbury, Wilts. 
 
 
APPENDIX 1 
 
Items listed for future action in minutes