SOUTH WEST OF ENGLAND REGIONAL DEVELOPMENT AGENCY 
MINUTES OF THE 40th BOARD MEETING 27 January 2003 
Sterling House, Exeter

Present:

• Juliet Williams - Chairman
• Doris Ansari - Board Member
• Nick Buckland - Board Member
• Nigel Costley - Board Member
• Helen Holland - Board Member
• Brian Kemp - Board Member
• Mike Leece - Board Member
• Robin Nicoll - Board Member
• Jeremy Pope - Deputy Chairman
• Jonathon Porritt - Board Member
• Judith Reynolds - Board Member
• Colin Skellett - Board Member
• Harry Stadholme - Board Member
• Eric Thomas - Board Member
• Geoff Wilkinson - Chief Executive
• Suzanne Bond - Director of Strategy and Communications
• Carolin Bull - Director of Enterprise and Innovation
• Nick Lewis - Director of Corporate Services
• Colin Molton - Director of Development
• Anne Bulleid - Executive Office
• Melanie Farrant - Executive Office

Apologies:

Peter Chalke - Board Member

1. MINUTES FROM 37TH AND 38TH MEETINGS

The minutes of the 37th and 38th meetings were agreed as a correct record. 
 
The Board confirmed that the RDA should not invest in the Finance Wessex venture capital fund. Recommendations made by a select committee on the skills shortages in advanced engineering would be reviewed by the Board in March.

2. CHAIRMAN'S REPORT

Juliet Williams said that she wanted to improve communications between board members and the Executive. Commitments that board members undertook on behalf of the RDA would be recorded so that briefings could be provided and information captured. Future chairman's reports would include summaries of both chairman and board member activity.  
 
Juliet Williams also wanted to ensure that any board members' conflicts of interest were managed clearly and appropriately.

Board Decision

1. Board members will continue to register all interests, pecuniary or otherwise, in accordance with COP1 paras 7 and 8. 
 
2. Notwithstanding the completion of the register, board members will notify the Chairman (via the Exec Office) in advance of each board meeting of any potential conflicts of interest that could arise at that meeting. 
 
3. If the interest is direct or pecuniary, they will withdraw from the meeting for that item. 
 
4. If the Chairman and board member believe the interest could be construed as potentially leading to bias, the board member can make a short factual statement, and answer any questions before withdrawing from the meeting. 
 
5. If, on review, neither the Chairman nor the board member believes the interest could be construed as potentially leading to bias, it will simply be noted in the minutes. 
 
6. General geographical interests are not conflicts of interest for the purposes of this policy. 
 
Board members agreed that Jane Henderson would be invited to alternate issues meetings and Juliet Williams agreed to consider whether the Chief Executive of the Regional Assembly should be invited to occasional issues meetings. It was also agreed to consider including strategic issues put forward by board members on board agendas.  
Board members noted the Chairman's activities in December and January.

3. CHIEF EXECUTIVE'S REPORT QUARTER 3 2002-03

The report circulated with the papers was noted. The following points were discussed:

• Corporate Plan meeting with Alan Johnson - unexpectedly a senior representative from ODPM had also attended. The Corporate Plan had received general approval from both departments. The RDA's position in respect of funding for Royal William Yard was discussed and as a result additional government funding would be pursued.
• During Lord Haskins's recent visit to Sterling House the RDA's future working with Defra and GOSW had been discussed.
• The Chief Executive's report should include a finance report allowing board members to monitor forecasts and spending. The current financial situation was :

- £96m of new projects approved in the financial year to date - £26m for spending in the current year 
 
- current year's spend forecast at £115m, however inclusion of carry over and funding for CUC had increased the current year's budget from £116m to £126m 
 
- £11m headroom on forecast spending remained

• The RDA's appraisal process would be included as an item at a future board meeting
• The Regional Assembly had nominated members to sit on each of the RDA's advisory groups
• Commercial in Confidence
• Commercial in Confidence

4. COMMUNICATIONS AND RELATIONSHIP MANAGEMENT

Last year the Board approved the principles of a corporate communications strategy, and an action plan had now been produced which addressed the RDA's communication needs and would ensure that messages were consistent internally and externally. Two aspects of the communications strategy were presented to the Board.

• Policy Briefings System. A series of policy briefings had been produced to give background, general details and the RDA's position on wide number of issues. These would be available to board members on CD-ROM or through the Executive Office, and access in the longer term via the internet was being explored. These policy briefings would supplement, not replace, specific briefings for board members attending events on behalf of the RDA.
• Contact Management System. This system allowed records of individuals, organisations and opportunities to be maintained centrally and accessible across the RDA. It included diaries for all board members which would, in the most part, be maintained by staff organising or attending events involving board members although it would require limited input from board members via the Executive Office which would write to board members setting out precisely the information required

5. CAMBORNE POOL REDRUTH URBAN REGENERATION STRATEGY

Stephen Bohane, Head of Operations for Cornwall and the Isles of Scilly, and John Dobson, Regeneration Manager for Camborne Pool Redruth, joined the meeting for this and the following item. 
 
John Dobson gave a presentation outlining the current physical and economic position of the Camborne Pool Redruth area. A lot of activity was already underway in the area and there was significant support from local partners for the Urban Framework Plan, but additional impetus was required to step up regeneration. The Urban Regeneration Company (URC) had identified a number of key sites and had requested that the RDA help with their acquisition to encourage land owners and developers to work with the URC to achieve the Urban Framework Plan. To this end, the Board was asked to consider the principle of using its Compulsory Purchase Order powers which gave the RDA the ability to carry out complex major land assembly initiatives.

Board Decision

The Board agreed in principle to the use of the RDA's CPO powers to acquire key sites identified by the Camborne Pool Redruth Urban Regeneration Company where regeneration was unlikely to occur without such intervention. The Board acknowledged the need to undertake detailed investigative work prior to seeking a formal board resolution to make a compulsory purchase order.

6. STRATEGY FOR THE DELIVERY OF SITES AND PREMISES IN CORNWALL

Stephen Bohane gave a presentation explaining the background to the RDA's plans for delivering employment sites and workspace to meet identified needs in Cornwall. The Board's approval for the acquisition of Trevol Business Park at Torpoint was also sought at a gross cost of £3.8m (towards which £1.1m of Objective 1 funding would be available). 
 
The RDA was working to ensure that construction skills shortages across Cornwall (and indeed the whole south west region) were met and was also helping to supply high quality business premises in Cornwall to attract new business and encourage business growth. There was some concern however from the Board that trends in rental levels and construction costs were not fully appreciated when making gap funding decisions. Colin Molton was in the process of gathering data to inform research to be commissioned by the Strategy and Communications Directorate on this issue. The high cost per job figures at the Trevol Business Park, in comparison to other projects was noted. Nick Lewis explained that the RDA's investment decisions were based on the overall appraisal and there were no fixed limits on cost per job or any other output.

Board Decision

The Board noted the RDA's outline plans for the delivery of employment sites and workspace identified for local need within Cornwall; and approved the acquisition of Trevol Business Park at Torpoint, and the remediation and development of factory space at a gross cost to the RDA of £3.8m.

7. BOARD MEMBERS' RESPONSIBILITIES AND REPRESENTATIONS

A matrix of board members' RDA responsibilities and representations was tabled and agreed subject to adding Doris Ansari's name to the Audit Committee and Judith Reynolds's to the Bournemouth Dorset and Poole LSC. It was noted that Nigel Costley was no longer on the Gloucestershire LSC.

8. RDA OFFICERS' MEMBERSHIP OF OUTSIDE BODIES

Board Decision

The Board noted the current list of organisations which included RDA members of staff as board members, and authorised officers becoming directors of Norton Radstock Regeneration Company and Regen SW.

9. RISK MANAGEMENT STRATEGY

As requested by the Board at a previous meeting, the RDA's top ten risks had been reviewed and were presented to the Board. Although the work had been reviewed by the Audit Committee, there was some concern from board members that they had little input to the risk management process. It was agreed that there should be a workshop-style item at a future board meeting to review the RDA's risk management strategy and approach to reducing risks.

10. FINANCIAL DELEGATIONS

The Board considered a revised series of delegations for project expenditure, running cost expenditure, and write-offs; single tender actions; and bank mandates. A move from gross to net cost for projects requiring Board approval was recommended where projected 'receipts' were in fact part of the funding package eg European or lottery funds. Projects needing departmental approval would remain at gross level.

Board Decision

The Board resolved to adopt the delegations for project expenditure, running cost expenditure, and write-offs; single tender actions; and bank mandates as set out in appendices to the board report but not the move from gross to net which would be further discussed when the Board discussed the Agency's appraisal process.  
 
The Board also resolved to participate as an originator in the direct debit scheme operated by certain members of the Association for Payment Clearing Services and the Northern Ireland Bankers' Association, and that Geoffrey Wilkinson and Catherine Pollard were authorised to execute a form of indemnity worded in the standard form required by those members.

11. RURAL ISSUES

A paper updating the Board on the RDA's work on rural issues and the Defra lead role had been circulated. The Government's Strategy for Farming and Food had been published at the end of 2002 and several board members expressed their disappointment that it neither set out actions to be taken that would make a real impact on the rural economy and farming, nor dealt with the problems facing mainstream agriculture and food production. The complex relationship between the rural economy and agriculture meant that the RDA had to focus on an approach that was both practical and realistic. The Board would be looking at the region's food and drink sector at a forthcoming issues meeting.

12. INSURANCE ARRANGEMENTS

The RDA's insurance arrangements, as set out in a paper circulated with the agenda, were noted. Nick Lewis explained that the RDA, as a government body, did not take out credit insurance.

13. STANDING ITEMS

a. Projects Approved 
Noted. 
 
b. Executive Reports 
Noted. 
 
c. Policy Consultation Responses 
Noted. 
 
d. Summary of Advisory Group minutes 
Noted. Advisory group minutes would in future be circulated in full to board members as soon as they were available. 
 
e. Decisions taken using Urgency Procedures 
None had been taken since the last report to the November board meeting. 
 
f. Documents Sealed 
Noted. 
 
g. Loan Write Offs 
Noted. 
 
h. Audit Committee minutes, 10 December 2002 
Noted. 
 
i. Remuneration Committee report 
Noted.