SOUTH WEST OF ENGLAND REGIONAL DEVELOPMENT AGENCY 
MINUTES OF THE 79th BOARD MEETING 11 SEPTEMBER 2006 
Sterling House, Dix's Field, Exeter 
 
Present: 
Juliet Williams - Chairman  
Nick Buckland - Deputy Chairman  
Cathy Bakewell - Board Member 
Christine Channon - Board Member 
Alan Courts - Board Member 
Kelvyn Derrick - Board Member 
Duncan Hames - Board Member 
Brian Kemp - Board Member 
Jonathon Porritt - Board Member  
Judith Reynolds - Board Member 
Colin Skellett - Board Member  
Harry Studholme - Board Member 
Eric Thomas - Board Member 
 
In attendance: 
Jane Henderson - Chief Executive 
Suzanne Bond - Executive Director Strategy and Communications 
Nick Lewis - Executive Director Resources 
Colin Molton - Executive Director Operations and Development 
Stephen Peacock - Executive Director Enterprise and Innovation 
Simon Hooton - Director of Policy and Strategy 
Claire Gibson - Director of Planning Transport and Environment 
Ian Thompson - Director of Operations North 
Rosemary Wells - Director of Enterprise 
Guy Lavender - South West England Director for the 2012 Games 
Jeff Chinnock - Head of Corporate and Government Affairs  
Caroline Bloodworth - Board and Policy Advisor 
 
Observers: 
Michael Whitehouse - Assistant Auditor General, National Audit Office 
Peter Cudlip - Assessment Team Leader, National Audit Office 
Roger Sumpton - NAO (Peer Assessor, Advantage West Midlands) 
 
Apologies: 
Nigel Costley - Board Member  
Christine Reid - Board Member  
 
 
1. MINUTES FROM 78th MEETING AND MATTERS ARISING 
 
The minutes of the meeting were agreed as a correct record. There were no matters arising. 
 
 
2. CHAIRMAN'S REPORT 
 
The Chairman tabled her report and updated the Board on a number of other items. 
 
South West RDA Annual Public Meetings. As previously reported, these would take place on 16th October (Plymouth Pavilions) and 17th October (Jurys Hotel, Bristol). The Board meeting on 16th October would now take place in the afternoon, and would be a business meeting. 
 
Board dinner - Sunday 10th December. It was suggested that a Board dinner would be held on the Sunday before the December Board meeting - venue to be confirmed.  
 
Northern Way Initiative. The Chairman confirmed the Northern Way had discontinued. 
 
Board self assessment. A draft options paper was being developed which the Board sub-group would consider in October. A paper would come to the November Board meeting. 
 
3. CHIEF EXECUTIVE'S REPORT 
 
ITV programme. Jane Henderson reported discussions between Board members, herself and Richard Thomas following up the recent ITV programme on the RDA. It had been agreed that a more robust approach to the media would be developed, and a programme of media training would be provided. The Executive Team were considering whether any formal follow-up action would be taken to challenge the position taken by ITV in relation to the programme. Richard Thomas was currently piloting a monthly media issues forward look. 
 
Commission for Racial Equality. An investigation was planned on the extent to which diversity issues were taken into account in the design and implementation of projects by RDAs. 
 
Possible use of CPO powers - Peninsula Medical School, Treliske. Colin Molton explained that, following the breakdown of negotiations to acquire land to accommodate the Phase 1 Medipark Innovation Centre, together with student accommodation, the Agency proposed to serve formal Requisitions for Information on landowners under 5.20 of the RDA Act. This would show the intent of the Agency to instigate compulsory purchase powers to acquire the necessary land. A paper outlining the situation in more detail would come to the Board in October.  
 
LSC Structure. The issue of the ongoing changes to the structure of the LSC was raised, including concern about how skills issues would be addressed at local level. Stephen Peacock reported that he would be meeting with Malcolm Gillespie to discuss these issues and the Board would be informed of the potential impact of any changes on the RDA.  
 
Lottery Living Landmarks projects. Colin Molton confirmed that projects that had successfully won lottery funding were currently contacting partners for support and, in some cases, match funding. He confirmed that all projects would be required to follow the Agency's normal business and delivery planning process.  
 
4. THE WAY AHEAD: TAUNTON VISION  
Commercial in confidence  
(Cathy Bakewell declared that she was an interested party, but did not have a formal conflict of interest) 
 
 
5. AIRPORTS: OVERVIEW OF RDA ACTIVITY 
(Christine Channon and Alan Courts declared an interest in this item)  
 
Claire Gibson explained that the purpose of the paper was to advise the Board of the discussions with airport operators and airlines on the issue of sustainable aviation, provide an update on key issues regarding the region's airports, and to seek Board approval not to establish a Route Development Fund (RDF) for the region. 
 
Further to discussion and agreement at the April 2005 Board meeting, the Board agreed with the recommendation not to set up an RDF. Since then, in June 2006, the EU had approved a UK RDF protocol with some key criteria on how an RDF could be used in the region from 1 June 2007. ONE and the Welsh Assembly Government had now set up RDFs, although NWDA had chosen not to. Despite this, the Board was advised that the criteria were particularly limiting and not reason enough for the South West RDA to reconsider establishing an RDF. 
 
The Board was generally supportive of the efforts to develop a dialogue and clarify ideas concerning the promoting of sustainable aviation in the region. However, there was consensus on the need for a broader vision for sustainable aviation and its potential economic benefits, together with a need for greater clarity as to whether the South West RDA would continue to support the development of all the region's airports. 
 
Board decision 
The Board: 
i) noted the measures the South West RDA was supporting to help ensure forecast growth in aviation was sustainable; 
ii) noted the recent activity at four of the region's main airports; and 
iii) endorsed the recommendation for the South West RDA not to establish an RDF for the South West. 
The Board further decided that the Agency should undertake a "mapping" exercise in order to thoroughly assess the economic benefits of the region's airports and the trade-offs with their impact on the environment.  
 
 
6 NEWQUAY AIRPORT 
Commercial in confidence 
 
 
7. IMPLEMENTATION OF THE REGIONAL ECONOMIC STRATEGY (RES) 2006-2015  
 
Simon Hooton updated the Board on Agency activity in support of the development of the RES and the issues that had emerged during the review process. He also outlined the actions planned to develop and co-ordinate the RES process in the future. The Agency was, in cooperation with partners, holding key debates on five key issues identified in the RES. The debates would seek to explore these critical issues and develop a regional consensus on addressing them. The first such debate, on economic development within environmental limits, would be on 11 September. The processes to improve how the implementation of the RES was co-ordinated and to enhance procedures for monitoring and evaluating RES implementation were also discussed.  
 
There was general support for the proposals, particularly around the more active management of the RES and the involvement of regional partners. 
 
Board Decision 
The Board noted progress on RES implementation activity and endorsed the proposals within the paper. The RES Board sub-group should continue to steer and advise the implementation process. 
 
8. BUSINESS LINK 
Commercial in confidence 
 
 
9. MAXIMISING THE OPPORTUNITIES OF THE 2012 GAMES ACROSS THE SOUTH WEST 
Guy Lavender provided an overview of how the South West's support for the London 2012 Olympic Games and Paralympic Games fitted into the national and regional architecture. He explained that a South West Regional Legacy Framework was being produced which would outline delivery principles to define the Agency's approach to delivering the Olympic legacy (these included leadership, empowerment, and a focus on Portland). Other priorities included branding and pre-Games training camps.  
It was agreed that the key role for the South West RDA concerned leadership. 
 
Board decision 
The Board: 
- restated its commitment to maximising the opportunities offered by the 2012 Games; 
- Endorsed the draft mission, principles, themes and current priorities outlined in para 5 of the paper; and, 
- Agreed that individual members should act as Olympic advocates during appropriate events in the lead-up to the Games. 
 
10. REGIONAL INPUT TO THE COMPREHENSIVE SPENDING REVIEW 2007 
Suzanne Bond provided an update of the work undertaken by the Agency and the work of SWRA and GOSW in drafting the regional response to HM Treasury as part of the Comprehensive Spending Review (CSR). An outline of the current consultation draft was presented which had been framed around the Treasury's five drivers of productivity (Skills and Employment, Enterprise, Innovation, Investment and Competition). The RES Board sub-group would meet to advise on the submission. 
It was agreed that a first draft would be circulated to Board members for comment. 
 
Board decision 
The Board agreed to delegate authority to the RES Board sub-group who would meet to discuss and oversee the process. However, the joint CSR response would be sent to all Board members for comment. The Board agreed that Colin Molton would have delegated authority to sign off the final version of the advice in late September (the Chief Executive would be on holiday at this time). 
 
11 EUROPEAN PROGRAMMES 2007-2013  
Simon Hooton outlined the future EU programmes, their value, the aspiration for the programme to be carbon neutral, and the timetable for their implementation. The objectives and priorities of both the Convergence and Competitiveness Programmes were explained. It was expected that the programmes would start late (likely to be September 2007). However, this was similar to previous programmes and was not in itself a cause for concern. The Government had yet to make an announcement as to how these new programmes would be managed. If the programmes were transferred to the RDA this would have significant implications with regard to staff numbers, funding and management.  
 
Board decision 
The Board endorsed the work of the internal European Programmes Strategy Board, the South West Cohesion Steering Group (chaired by Judith Reynolds) and the Post 06 Group (chaired by Juliet Williams). 
 
12 UPDATE ON RECENT NATIONAL AND REGIONAL ENERGY REVIEWS 
Claire Gibson reminded the Board that a summary of both the South West RDA and the joint RDA responses to the national Energy Review consultation has been provided to them at the June Board meeting. This paper summarised the outcome of the Energy Review and the potential implications for RDAs. The Board was advised that the DTI was keen to continue working with RDAs to inform the revised Energy White Paper due to be published early in 2007.  
 
Claire Gibson reported that the SWRA Strategic Review of Sustainable Energy Bilateral in July, and the preceding process, had gone well. However, the draft recommendations from the Strategic Review were disappointing as they did not fully reflect the responses the Agency gave at the Bilateral or acknowledge the work it was already doing. The recommendations were to be considered by the SWRA Executive Committee on 15 September for sign-off before being formally sent to the Agency. The Agency's response to these recommendations would come to the November Board for consideration. 
 
Board decision 
The Board noted the findings of the Energy Review and the implications for the Agency, and noted the draft recommendations from the SWRA's Strategic Review of Sustainable Energy as well as the programme for preparing the formal response. 
 
13 SOUTH WEST RDA'S RESPONSE TO THE DRAFT REGIONAL SPATIAL STRATEGY (RSS) 
 
Claire Gibson explained that, at its meeting in May 2006, the Board had delegated responsibility for the sign-off of the Agency's consultation response to the Board Planning sub-group. Work continued to ensure the Agency had sufficient evidence to support its representations at the RSS Examination in Public in Spring 2007. 
 
Concern had been raised that the Executive Summary document that had been issued by the Agency did not fully reflect the main submission, particularly with regard to the relative emphasis on sustainable development. It was agreed that appropriate time should be allowed in the future to ensure that summary documents reflected the breadth of the Agency's views rather than highlight particular aspects.  
 
Juliet Williams asked Board Members to take the time to read the Agency's full response and suggested any issues or points of clarification were raised at the next Board meeting.  
 
Board decision 
The Board noted the contents of the response and the further work to be undertaken before Spring 2007. 
 
14 Q1 ACCOUNTS  
 
Nick Lewis reported that there had been some small changes to the gross allocation including BREW funding. He raised concerns about the balance of the capital and current budget headroom across the RDAs. 
 
Board decision 
The Board noted the accounts. 
 
15 DISPOSAL OF ASSETS 
Colin Molton outlined the paper which set out proposals for the sale of Investment and Development Assets in line with the agreed Asset Management Strategy. 
 
Board decision 
The Board noted the report. 
 
12 STANDING ITEMS 
 
a. Projects Approved 
Noted.  
 
b. Policy Consultation Reponses 
Noted. 
 
c. Summary of Board Advisory Group minutes 
Noted. 
 
d. Decisions taken using Urgency Procedures 
None. 
 
e. Documents Sealed 
Noted. 
 
f. Loan Write Offs 
Noted 
 
g. Audit Committee minutes 
None. 
 
h. Remuneration Committee minutes 
None.