SOUTH WEST OF ENGLAND REGIONAL DEVELOPMENT AGENCY 
MINUTES OF THE 34th BOARD MEETING 29 July 2002 
Sterling House, Exeter 
 
 
Present: 

• Sir Michael Lickiss - Chairman
• Doris Ansari - Board Member
• Nick Buckland - Board Member
• Peter Chalke - Board Member
• Nigel Costley - Board Member
• Helen Holland - Board Member
• Brian Kemp - Board Member
• Mike Leece - Board Member
• Alf Morris - Board Member
• Robin Nicoll - Board Member
• Jeremy Pope - Deputy Chairman
• Colin Skellett - Board Member
• Geoff Wilkinson - Chief Executive
• Suzanne Bond - Director of Strategy and Communications
• Nick Lewis - Director of Corporate Services
• Colin Molton - Director of Development
• Anne Bulleid - Executive Office
• Melanie Farrant - Chairman's Office
• Simon Hooton - Head of Policy

Apologies: 
Jonathon Porritt - Board Member 
 
 
1. MINUTES FROM 32ND AND 33RD MEETINGS 
 
The minutes of the 32nd and 33rd meetings were agreed as a correct record. 
 
2. CHAIRMAN'S REPORT 
 
Members noted the Chairman's commitments since the last meeting. He explained that developments at the Met Office site in Exeter were on schedule. It was suggested that, because of the sizeable potential for spin off businesses, the Board could benefit from a Met Office presentation. The Chairman was also pleased to report the positive negotiations with IPWireless started during this recent US visit which will hopefully result in the South West piloting a broadband delivery project involving British Telecom and local government. 
 
3. CHIEF EXECUTIVE'S QUARTERLY PERFORMANCE REPORT 
 
The Chief Executive introduced his report and said that his next report would be in a revised format to reflect the new single pot funding arrangements. From 2002-3 the RDA would be required to report against four Tier 3 core milestones, and eleven specific supplementary milestone targets identified by the RDA which reflected its Corporate Plan priorities. To meet board members' requests for clear and concise performance reporting, the new format would distinguish between obligatory reporting requirements and chosen targets. It would also include narrative reporting to describe the RDA's work against the Corporate Plan themes. However the RDA would still be required to collect information relating to old programmes beyond April 2002. 
 
The CEO explained the new system for lead roles across the RDAs, matching government departments to individual RDAs' strengths on a permanent basis. Under this system, SWRDA now had responsibility for DCMS and DEFRA. The Board agreed the CEO's request to increase the RDA's 2002/03 establishment by one member of staff to 229 to provide additional resource that would be required to manage the workload that the DEFRA role would generate. The Chairman added that DCMS was currently working to resolve a management restructuring of tourism before looking at its other responsibilities. 
 
4. REVIEW OF THE REGIONAL STRATEGY 
 
Suzanne Bond introducing the item explained that the RDA had five weeks to prepare a draft of the refreshed RES before beginning a second consultation phase. The presentation was in 3 parts: 
 
Section 1: Looking back at the role, function and rationale for the RES, and at what influences it. 
 
Section 2: The current context including Government expectations the state of the Regional economy and the views of the regional partners. 
 
Section 3: Suggestions on how to refresh the RES. 
 
The following is a summary of the general discussion: 
 
There is now a far greater understanding of the dynamics of the economy of the South West region. There should, however, be a much clearer link between identified needs and opportunities and subsequent agreed actions and their outcomes. It was generally agreed that the overall thrust of the RES was and is still appropriate but that it was following through to delivery that has been patchy. 
 
The possibility of combining the Vision and Mission was considered, but the discussion culminated in the agreement to make only minor changes to their wording. 
 
There was general endorsement of the Environment Driver and an agreement it should be more accessible in its description and more easily understood. 
 
Discussion about introducing a new driver to replace partnership on transport/communications infrastructure resulted in the decision that  
1. Partnership was important to the delivery of the RES and so not be relegated. And that 
2. The communications infrastructure should be a regional priority in the RES but not a driver. 
 
When considering the way forward the discussion concentrated on the regional economic priorities - as identified in the consultation last year - and the role of the RDA in their delivery. The debate was structured therefore around the 9 themes identified in the Corporate Plan:

• Image and Coherence
• Regional Policy and Intelligence
• Urban Renaissance
• Rural
• Innovation
• Skills and Learning
• Regional Infrastructure
• Sustainable Development
• Integrated Business Development

The following points were made: 
 
All nine themes remain priority areas of activity for the South West region. 
 
The RDA has an important strategic role in working to achieve a positive regional image externally and promote strong internal partnerships. 
 
Advocacy and intelligent lobbying are essential to inform opinion on regional policy and influence decision making. 
 
Many organisations are involved in Urban Renaissance and the RDA's funding is 'a drop in the ocean', we all need to work together to achieve common priorities. 
 
The majority of the RDA's work has either a direct or indirect impact on rural communities and on rural areas. 
 
Communications infrastructure remains the highest regional priority following consultation. But the RDA can only influence the region's infrastructure at a strategic level as it does not have funding to carry out such development 
 
The RDA's strategic role in achieving sustainable development is to educate and influence others to take a sustainable approach, as exemplified by its own actions. 
 
In summary, the Board agreed that:

• Overall minimal changes should be made to the RES.
• Tighter details on implementation is necessary.
• Priorities should be better defined and linked to outcomes and timescales.
• The RES should be clearer in order to achieve partnership buy-in.
• Responsibility for the social agenda should be clarified.
• 'Sustainability' should be reinstated in the Strategy's mission, and
• a working group including Brian Kemp, Robin Nicoll, Colin Skellett and Jeremy Pope should meet over August to take this forward before a further report was made to the Board in September.

5. REGIONAL GOVERNANCE WHITE PAPER 
 
Although not an official consultation document, Suzanne Bond asked board members whether they wished to respond to the White Paper on Regional Governance, either to the Regional Assembly or government. 
 
Board members felt that the RDA should not take a public position on regional governance at this stage as it was a political issue. This position would remain the same whether in response to Government or the Regional Assembly.  
 
Board Decision 
The Board agreed that a letter should go from the RDA to the Office of the Deputy Prime Minister explaining the decision not to comment. 
 
6. MILLS BAKERY, ROYAL WILLIAM YARD, PLYMOUTH 
 
Commercial in Confidence 
 
7. INTERNAL AUDIT ANNUAL REPORT 
 
The Board noted the approval of the Audit Committee to the Internal Audit Annual Report and the Annual Audit Plan, which addressed finance and business control issues that arose during the course of the year 2001/02.  
 
 
Board Decision 
The Board approved revised terms of reference circulated with the Board agenda and the co-option of Stella Pirie as an additional member to the Audit Committee. 
 
8. FINANCE FOR BUSINESS STRATEGY 
 
Caroline Bull explained that the Finance for Business strategy was one of a suite of strategies currently being developed to support business. The Board would be asked to approve incubation science park and business birth rate strategies in due course.  
 
A lot of background work had been carried out in developing the Finance for Business strategy, which outlined how to improve access to finance. It was based on a number of regional and national surveys that had identified how lack of access to and knowledge of finance available impeded business development. The strategy aimed to cover access to finance for business at all stages of development but targeted stages that required extra support. 
 
Board Decision 
Subject to focusing support on areas not currently provided for by the market including a combination of debt and equity in the escalator diagram, strengthening social enterprise support through co-operative developments and stressing the importance of succession planning in the context of MBOs/MBIs etc, the Board agreed the strategy. 
 
9. SOUTH WEST ICT STRATEGY 
 
The South West ICT strategy was another of the suite of business strategies being developed. 
 
Nick Buckland explained that the strategy had been made more demand led than in previous drafts, and that businesses needed to be made more aware of opportunities offered through ICT. The RDA role should be to pull together existing ICT strategies and create an overarching strategy to ensure all others supported the same aim, and to generate demand for ICT provisions. The Board considered that the strategy as presented would not engage partners. It was suggested that more explicit evidence of demand, a clearer focus on priorities for action and timescales for achieving these would address these points. 
 
Access to ICT and broadband was still an issue. Broadband was seen in the USA as an economic driver and Nick Buckland encouraged the Board to consider it as a utility. It was suggested that the RDA should put pressure on suppliers such as BT to make access to Broadband easier.  
 
Board Decision 
The Board agreed that the strategy should be re-worked to include points made during their discussion before publication. 
 
10. TRADE PARTNERS UK 
 
Brian Kemp declared an interest in this item as a supplier to Honda (UK). 
 
Neil Blakeman, Regional Director of Trade Partners UK, joined the meeting to give a presentation on the work of TPUK and its relationship with the RDA.  
 
TPUK worked through Business Links to improve international trade thus helping the RDA and its partners achieve their objectives. The underperformance of the region in international trade was largely due to its narrow trade base and, although the number of exports was growing, the number of imports was increasing faster. This was being addressed by the Supply Solutions Team. 
 
Research carried out by Nottingham University showed there was strong evidence that productivity had to improve for international trade to prosper. This link needed to be recognised, together with the productivity - exports - innovation circle. It was important that sufficient weight was accorded to international trade within the revised RES. 
 
The RDA's activity in client record management for larger companies, linked with the DTI's sectoral activities, would influence the international trading of the region's larger companies. Neil Blakeman described the successful 'Passport to Export' project designed specifically for SME exporters. He suggested a number of areas where the RDA and TPUK could continue to work together successfully in the future:

• Increasing the capacity of the 'Passport to Export' scheme
• Exploring the potential for funding international trade advisers
• Support for the mentoring project in Cornwall and Gloucestershire
• Increasing sector and inward investment initiatives

Following the presentation, board members made a number of comments. The relatively poor export performance of the South West in relation to other regions should not be forgotten, which TPUK was working well to remedy. It was suggested that the RDA's US staff could work with TPUK to identify opportunities for export as well as continue their inward investment role. Work in the food and drink sector had revealed that many suppliers were not properly connected in the supply chain. The RDA supply solutions team was working hard to encourage suppliers to work with Business Links to help meet the demands of the large purchasers in the region.  
 
The need for the RDA to continue to work with TPUK and to increase its commitment to international trade, forging new relationships and identifying new opportunities, was agreed by the Board. 
 
11. FORMAL RESPONSE TO SOUTH WEST AND SOUTH WALES MULTI MODAL STUDY (SWARMMS) 
 
Colin Molton introduced this item, highlighting the convergence between the RDA's and the Regional Assembly's views on the Study. There was one particular area of divergence concerning motorway improvements in the Bristol area, where the RDA's view that improvements should be carried out before completion of the Greater Bristol study were in accord with those of the Highways Agency.  
 
12. MARCH 2002 ACCOUNTS AND ANNUAL REVIEW AND FINANCIAL  
STATEMENT 
 
The Board considered the accounts and the Annual Review and Financial Statement for 2001/02, noting that the Chairman had approved the Financial Statements using urgency procedures. Board members were asked to pass any comments on the Annual Review to Suzanne Bond. 
 
13. HEALTH & SAFETY POLICY 
 
The Board noted the RDA's health and safety policy which had been signed off by the Chairman and Chief Executive. Members were advised that the Health and Safety Executive had accepted that the principal responsibility for health and safety lay with the Executive Team as the Board was made up of non-executive directors. However, any health and safety incidents would continue to be reported to the Board through the Executive Reports. 
 
Nick Lewis clarified that, as an NDBP, the RDA was insured under the Government's self-insurance; that it had an exemption certificate from employer's liability; and that it had public liability insurance. 
 
15. STANDING ITEMS 
 
a. Projects Approved 
The list of projects approved was noted. Improvements to housing stock previously carried out with SRB funding would now be carried out under the Neighbourhood Renewal Scheme and other government funding.  
 
b. Executive Reports 
Noted. 
 
c. Policy Consultation Responses 
Noted. The RDA had been asked by all of the LSCs to respond to their business plans. 
(Secretary's note: The RDA has responded to all of the business plans over the last few months.) 
 
d. Decisions taken using Urgency Procedures 
Noted. 
 
e. Documents Sealed 
Noted. 
 
f. Audit Committee minutes 
Noted. 
 
 
16. ANY OTHER BUSINESS 
 
a. Inward Investment Group 
Doris Ansari reported that membership of this group had been reviewed and at the last meeting a discussion had taken place about whether the RDA should take additional risks. Additional areas for growth for existing inward investors in the region had also been explored. 
 
b. Strategic planning function for RDAs 
Information from the Office of the Deputy Prime Minister regarding new planning roles for RDAs was coming through slowly and as yet there was no indication of a timeframe.  
 
17. DATE, TIME AND VENUE OF NEXT MEETING 
 
Monday 16 September at 1.00 pm in Sterling House, Exeter (lunch will be available from 12.30 pm).