SOUTH WEST OF ENGLAND REGIONAL DEVELOPMENT AGENCY MINUTES OF THE 66th BOARD MEETING 27th JUNE 2005 
Lord Haldon Hotel, Dunchideock, Devon 
 
Present: 
 
Juliet Williams - Chairman 
Cathy Bakewell - Board Member 
Nick Buckland - Deputy Chairman 
Christine Channon - Board Member 
Nigel Costley - Board Member 
Alan Courts - Board Member 
Duncan Hames - Board Member 
Brian Kemp - Board Member 
Jonathon Porritt - Board Member 
Christine Reid - Board Member 
Judith Reynolds - Board Member 
Harry Studholme - Board Member 
Eric Thomas - Board Member 
 
In attendance: 
Geoffrey Wilkinson - Chief Executive 
Suzanne Bond - Director of Strategy and Communications 
Nick Lewis - Director of Corporate Services 
Colin Molton - Director of Operations and Development 
Stephen Peacock - Director of Enterprise and Innovation 
Simon Hooton - Head of Policy 
Ian Piper - Head of Regeneration 
Claire Gibson - Head of Planning, Transport and Environment 
Nigel Jump - Head of Economic Intelligence 
Jonathan Coe - Policy and Research Manager 
Jeff Chinnock - Corporate and Parliamentary Affairs Manager 
Caroline Bloodworth - Corporate and Parliamentary Affairs 
 
Visitors: 
 
Martin Boddy - University of the West of England 
Julian Dennis - Wessex Water 
David Lock - David Lock Associates 
 
Apologies: 
 
Colin Skellett - Board Member 
 
1. WELCOME 
 
The Chairman welcomed Bronwyn Hill, GOSW Regional Director to the meeting. She also welcomed Duncan Hames: his reinstatement to the Board was confirmed by the Minister (Alun Michael) on 22 June. 
 
The Chairman addressed the issues raised by some Board members on the membership of the Way Ahead Advisory Group, particularly on the lack of community representation and environmental expertise. Judith Reynolds had suggested a community nominee and this issue would be discussed at the first meeting of the Advisory Group later that day. It was further agreed that Jonathon Porritt and the Chairman would speak outside the meeting about possible environmental nominees. 
 
Nick Lewis outlined the current position with regard to the proposed biomass project at Winkleigh. A letter had been received, addressed to all Board members, from David Lausen (Winkleigh Society). It was suggested that Geoff Wilkinson and Harry Studholme would draft a response which would be circulated to the Board for comment. The Board asked about the handling of the process to date. It was explained that the National Audit Office had investigated the issue twice and had found no substantive problems. It was agreed that the Agency's involvement was twofold: financial in regard to the land purchase and support for the impact studies and secondly, in its role as a statutory planning consultee. The letter should examine the issues concerning both roles and ensure that the Agency had based its decisions and submissions on available data. 
 
It was agreed that a brief note on the Great Western Mainline franchise consultation would be circulated to Board members for comment by 1 July. 
 
2. REGIONAL ECONOMIC STRATEGY (RES) REVIEW 
 
The Chairman explained that the meeting was an opportunity for the Board to contribute to the development of the RES. The draft RES document would come back before the Board in the autumn. 
 
Simon Hooton reminded the Board of its agreement in January to a set of working assumptions upon which to base the review of the RES. On the basis of these assumptions, the RDA had commissioned a report on the evidence base, working with partners, to inform policy decisions. This was formally launched on 27 May. The second stage of the review process - to agree priorities and actions with partners - was now underway. This was being undertaken through a range of activities including one to one meetings, thematic workshops, presentations at partners meetings and a special website with a dedicated e-mail address. 
 
Productivity/Knowledge Economy/Market Sectors 
 
Nick Buckland introduced the session on productivity, the knowledge economy and market sectors. He noted that there were clear differences between some businesses in the south west of the region and the north of the region and that the RES needed to reflect that. He also outlined some of the global pressures on the economy and the potential impact of increased 'offshoring'.  
 
Martin Boddy outlined the differences that had emerged during the evidence base process, particularly around the region's comparison with the South East, the East and Scotland and the real differences in productivity levels within the region. He outlined the key issues around peripherality, investment in both business and infrastructure and support for innovation. 
 
A number of Board members underlined the view that the South West was very diverse. Reference was made to One North East which had four separate areas treated differently. It was agreed that peripherality, particularly affecting businesses in the far south west of the region, meant that they focused more in local markets, with few foreign-owned businesses, although there were some examples of companies in the far South West that bucked this trend. The competitive pressures that were a spur to improved productivity need to be recognised - whether international trade or the 'agglomeration' effects of big cities. 
 
On the knowledge economy, it was suggested that the South West should try to exploit existing global ideas and develop a stronger innovation agenda. The importance of tapping into latent knowledge within the region, and improving the relationships between SMEs and the FE /HE sector was discussed.  
 
On sectors, it was considered important to identify all the significant sectors, and to more clearly express why there was a case for public sector intervention in some sectors and not in others. Discussions were taking place with other RDAs on the way to develop a structure to mesh with the sectoral approach that the DTI was taking.  
 
Sustainable Development 
 
Jonathon Porritt introduced the key issues on sustainable development, and outlined the UK's new Sustainable Development Strategy and its guiding principles. The Government's commitment to exceed the Kyoto obligations was likely to mean the adoption of rigorous new targets which might be introduced at a regional level. Questions were raised on the Government's sustainable communities agenda and on whether the strategy was more about managing growth than sustainability.  
 
Julian Dennis explained the background to Wessex Water developing into a business with a sustainable approach. He outlined that it resulted in the company being highly regarded by ethical investors and was able to attract high quality employees who were able to feel good about the company. There was clear evidence that the company's commitment to Sustainable Development had a positive impact on profitabililty and investment. 
 
The Board felt the phrase "doing more with less" was a key message for the RES - taking the widest meaning of eliminating waste in all types of resources (human as well as physical). Specifically, the RDA was encouraged to adopt "whole life" costings particularly for RDA infrastructure projects. The importance of communicating clear messages about sustainable development in the RES was linked with the need to present a clear business case  
 
The Board accepted this was a complex area but considered more could be done to demonstrate good practice by developing and publicising success stories and existing good practice.  
 
Spatial Planning 
 
Harry Studholme introduced this session and explained that the Regional Spatial Strategy (RSS) was being developed at the same time as the RES, although it had a 20 year time frame. David Lock explained his background as a Planning Consultant, and provided information on Regional Planning Guidance 10 (RPG10) - the central government guidance on spatial and planning issues that had been in place over the last few years. He emphasised the need for towns and cities to work together; for improved connectivity between and within settlements; and for places to ensure that they remained attractive for residents, workers and investors. 
 
The Board stressed the need for the RSS and the RES to be aligned, and the importance of the RDA inputting into the RSS on economic issues.  
 
The issue of emerging tensions in the RSS - that by concentrating on Principal Urban Areas, rural areas were being left out - was discussed. It was felt that the political view on rural delivery was mixed currently. The description of near country and far country was welcomed and it was suggested that the approach to develop (market) towns rather than villages would be the appropriate focus. The MCTi process did include market/coastal towns and their hinterland villages. 
 
The RES needed to demonstrate more clearly the different characteristics and requirements of different spatial areas. It was agreed that in looking at rural productivity, there was a need to better understand what the RDA can do to assist land-based industries. 
 
Labour Markets 
 
Nigel Costley provided a short presentation on the labour market in the South West, including growth and unemployment rates. 
 
Summary 
 
Simon Hooton explained that the aim was to make the RES clearer, shorter and easier to understand, with detail being provided in annexes. The next steps were to continue with partner consultation meetings over the next five weeks, with drafting due to start at the end of July through to the end of August. It was expected that the draft would be sent to the Board Sub Group by email, probably with a tight turn around time, prior to its launch on 20 September. He welcomed any further thoughts or comments from the Board either written or by email.