MINUTES OF THE 27TH BOARD MEETING 26 November 2001 
Sterling House, Exeter 
 
 
 
Present:

• Sir Michael Lickiss Chairman
• Doris Ansari
• Cairns Boston
• Nigel Costley
• Tudor Evans
• Helen Holland
• Mike Leece
• Alf Morris
• Timothy Parker
• Jeremy Pope Deputy Chair
• Jonathon Porritt
• 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:  
Peter Chalke 
Stella Pirie 
 
 
 
 
1 Minutes 
 
Minutes of the 25th and 26th meetings were agreed as a correct record. 
 
Matters Arising 
(a) Strategy and Communications Directorate Update (25th meeting, minute 10(b)) 
 
A temporary director for the Regional Observatory was being recruited who would be responsible for reviewing the name of the Observatory. 
 
(b) Rural Action Plan (26th meeting, minute 1) 
 
Jeremy Pope reported that his meeting with Commissioner Fischler seeking a six month extension to Objective 5B funding had been positive. The decision would be finalised by the Starr Committee on 19 December. 
 
2 Chairman's Report 
 
Members noted the commitments of the Chairman since the last meeting. Attention in particular was drawn to:

• Jill Barrow's last day with the RDA would be 7 December, and the new chief executive, Geoffrey Wilkinson, would start from 10 December. Stella Pirie, Cairns Boston and Tudor Evans would be retiring from the Board on 13th December and four new board members would be appointed on that date. Confirmation of these appointments was expected shortly. Helen Holland was standing down as Deputy Chair with effect from 13 December and would continue as an ordinary board member.
• Sir Michael reported that the RDA Chairs' meeting with Estelle Morris and representatives from DfES had been very constructive. DfES had given an undertaking that future policies involving regional activity would not be announced before consultation with RDAs. The chairs' meeting with Gordon Brown had been an opportunity for RDAs to identify key issues they would wish to be considered in the budget structure.
• Richard Caborn as Minister for Sport had spoken of his conviction that sport should be developed on a regional, not national, basis. He had reiterated this position at a Sport England event attended by Helen Holland, citing sport as an industry that would help regeneration.

3 Chief Executive's Performance Report 
 
Jill Barrow introduced the report. 
 
It was noted that the benchmarking outturn information was not a reliable measure of RDAs' performance as different criteria were used by different agencies. It was anticipated that measurement of RDAs' performance would become more sophisticated with the single pot funding. SWRDA would be measuring only core costs within the administration budget from 2002.  
 
It was noted that Tier 2 targets would measure the RDA's achievements partly through its partners' performance.  
 
4 September 2001 Accounts 
 
The accounts were noted by the Board. 
 
5 Corporate Plan 
 
The draft Plan had been circulated for Board Members to consider. The format followed requirements laid down by the DTI although the content reflected the work of SWRDA and incorporated board members' comments. 
 
The Board considered the allocation of discretionary funds for 2002-03. Four scenarios had been prepared illustrating potential spending. The distinction between legal and moral commitments, and the interpretation of a legal commitment, was explained. The Executive Team recommended Scenario 2 to the Board as the best response to more significant moral commitments, but acknowledged that it did not cover all moral commitments. However, the Executive Team was confident that further funds would become available in year through slippage of legal commitments, disposal of assets and other funding opportunities. Whilst over-programming did raise expectations, the Executive Team considered it to be the best way to maximise further funding opportunities. The Executive Team would be working with senior staff between January and April to ensure the RDA responded positively to the new funding flexibility. 
 
RDA spending in 2002/03 was determined to a greater extent by its targets; from year 2 onwards better understanding of the targets and increased discretionary funding would allow the RDA to meet regional needs better. It was important for the RDA to build a reputation for delivery, and expectations raised by allocations in Scenario 2 were considered to be manageable as projects included were deliverable.  
 
The investment appraisal process would ensure that projects funded would contribute towards the holistic aspirations of the RDA. Scenario 2 was an illustration of discretionary spending and the 2002/03 outturn could be different as up to 100% of allocated funds could be vired across the themes. (The themes reflected those partners had identified they would wish to see the RDA working within.)  
 
Board members felt it was important that the RDA had the capacity to respond in a harder economic climate. Re-examination of the value of the priority sectors and their impact was suggested. 
 
Board members felt that they needed to explore further financial delegations to partners and agreed to consider this at their next meeting.  
 
SWRDA retained its strong commitment to sustainable economic development. Its commitment to urban renaissance, as well as rural regeneration, would be more clearly specified in the Plan. The RDA had a role to play in the development of the social enterprise sector as a strategic economic opportunity and was already exploring this with socio-economic groups. 
 
Board Decision 
 
The draft Corporate Plan was endorsed and it was agreed that the working party of Board members should sign off the final version for submission to Dti on 13th December. The Board wished to explore delegations to sub regional partners and the investment appraisal process further at their meeting in December. 
 
6 South West UK Brussels Office 
 
Doris Ansari introduced Eleni Marianou who gave a presentation on the South West UK Brussels Office, which covered the office structure, the aims and objectives of the SWUKBO and key priorities for 2002. 
 
As the RDA's framework was essentially economic, a fundamental role was to maximise all opportunities for funding from public sources. It was important to understand where maximum results could be achieved. Board members were interested in which priority sectors were in receipt of EU funding and what funding streams the RDA could tap in to. The Board was advised that the EU was particularly influenced by key approaches from regions working in trans-country partnerships. 
The SWUKBO could look at opportunities where the RDA was seeking future funding and for potential trans-national partners. 
 
 
7 Royal William Yard, Plymouth 
 
COMMERCIAL IN CONFIDENCE 
 
8 Strengthening the RDA - Culture South West and South West Tourism 
 
The contribution of tourism and culture to the regional economy was considered to be so significant that proposals were made for connections between the RDA Board and South West Tourism and Culture South West to be formalised and strengthened. A number of recommendations to achieve this had been made in papers circulated with the agenda. 
 
Whilst fully supporting the need to work more closely, board members did not support the principle of offering Board observer status to any regional organisations. Partnership working with Culture South West and South West Tourism was, however, fully supported. Members felt that the future of a successful South West tourism industry lay within the region, not nationally, and it was agreed that the RDA could lead work in pulling together the various aspects of and organisations involved in tourism and culture so that the region became an exemplar. 
 
Board Decision 
 
With regard to culture, it was agreed that:

• The RDA Chairman take up observer status on the Culture South West Board
• Culture South West be invited to become a formal advisory board to the RDA Board
• The Executive Director of CSW be co-located in the RDA's Exeter offices
• The RDA makes a new staff appointment working jointly to the RDA and the Executive Director of CSW, in order to enhance the economic input and policy profile of the cultural industries to the regional economy.

With regard to tourism, it was agreed that:

• The RDA Chairman take up membership of the South West Tourism Board
• The current Tourism Advisory Group be reviewed in terms of its objectives and membership, and proposals for the revised group (which would advise both the RDA and SWT) put to the RDA Board
• The new advisory group be invited to submit a strategy for consideration by the RDA Board.

9 Regional Planning Guidance for the South West 
 
A report had been circulated with the agenda illustrating the RDA's input to draft RPG. A further report summarising the final RPG was tabled. 
 
Colin Molton summarised RPG as a strategy that covered cross-boundary issues such as infrastructure (including transport), waste, housing numbers and environmental considerations that could not be determined in the long term on a local basis. 
 
The Board expressed its thanks to the Development Team, including Claire Gibson, and the Strategy Directorate for their work in contributing to RPG. 
 
10 Business Recovery Fund (Foot and Mouth) 
 
A paper had been circulated which gave examples of where the BRF had been able to assist businesses in the region.  
 
Allocation of the extension to BRF of £3m would be agreed by the Board Rural Sub Group, but it was proposed that the majority be allocated to the key sectors of tourism and food & drink as anticipated dispensation under state aid rules for the additional £3m had not been granted.  
 
11 Broadband Fund 
 
The RDA's plans for projects allocated for broadband development had been submitted to the DTI. £3.8m had been allocated to the region; however, this would not fund all of the projects which had yet to be costed and prioritised. The wide area satellite pilot was particularly interesting although the viability of satellite links was still being explored. 
 
12 Corporate Plan - Regional Assembly Response 
 
An RDA response to the recommendations made by the Regional Assembly Select Committee was tabled to be read alongside the previously circulated Assembly report. 
 
Sir Michael welcomed Chester Long, Chairman of the South West Regional Assembly, to the meeting to discuss the recommendations. The RDA welcomed the recommendations which would either be reflected in the final document or incorporated into the RDA's work. Chester Long commented that the Assembly had been asked that the RDA show its spending more precisely rather than in blocks; and hoped that the RDA and the Assembly would work together to exert influence to support improvements to the region's infrastructure. He also recommended exploiting new economic opportunities such as fridge disposal. 
 
The Board hoped that it would be able to develop a set of economic-based milestones that the Assembly could share, particularly in joint areas of concern such as waste and renewable energy. The contribution of the Assembly's member organisations to regional development was significant and there was considerable value in the RDA and the Assembly working together. It was suggested that staff from both  
 
organisations should work to identify areas where together the RDA and the Assembly could exert considerable influence for the benefit of the region. The disproportionately low funding received by the South West region was put forward as a potential area, as was joint response to the forthcoming White Paper on regional governance. 
 
Chester Long reported that the Assembly was not required to report its scrutiny of the RDA to DTLR but would be subject to audit. The majority of the funding for scrutiny was being spent on staffing and, this year, the select committee process; but staff had also been appointed to explore other areas of work such as the Regional Observatory. 
 
Sir Michael thanked Chester Long for joining the meeting and, in concluding, said that he looked forward to the RDA and the Assembly working together for the benefit of the region. 
 
13 Standing Items 
 
(a) Executive Reports 
 
Directorate reports were noted. The following points were also made:

• It was reported that the Plymouth City Growth Strategy Pilot bid had been successful, and that an announcement about Swindon URC was imminent.
• A structure for each sub region had been established to respond to large scale redundancies or employment opportunities.
• Proposals for an internal and external communications strategy would be made to the Board in January, together with a three year marketing strategy drawn up in partnership with the Regional Assembly and South West Tourism.

(b) Policy Consultation Responses 
 
Noted. 
 
(c) Decisions taken using urgency procedures 
 
Noted. 
 
(d) Documents sealed 
 
Noted. 
 
(e) Loan write offs 
 
Noted. 
 
14 Any Other Business 
 
Details of the DTI review were noted with some disappointment as a more radical outcome had been expected. The South West Industrial Development Board has aproximately £5m-£8m available for Regional Select Assistance which could provide some flexibility for e RDA funding. Caroline Bull would be pursuing this through the DTI. 
 
15 Date of Next Meeting 
 
Monday 10 December 2001 at Sterling House, Exeter