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Criticism of RDA has missed the point

22 June 2010

The South West RDA rejects completely the ignorant and mischievous allegations levelled by the TaxPayers' Alliance over the weekend concerning targets for RDA investment.

Public money invested through RDAs provides the foundations on which businesses can create their success. All our work is designed to help create jobs, support businesses and increase prosperity. To dismiss this as 'public sector causes' wilfully misses the point.

Our investments are made to a range of organisations (private, public and community) who can deliver the complex developments in the most effective way. Public sector bodies often manage complex developments and sub-contract work to the private sector to get the work done. The vast majority of RDA investment ends up providing work and contracts for private companies. They are often channelled through other bodies for good reasons - for example, in providing managed workspace for businesses, the process will often be managed by a public body as they can bring together the land, planning permissions and matching investments before contracting a private company to construct the development.

By investing through other public bodies, RDAs have been able to regenerate run-down city centres, such as Gloucester via the Gloucester Heritage Urban Regeneration Company; build up transport infrastructure; construct workspace and develop new skills. It is right that local authorities should lead on the regeneration of their areas; or that further education colleges should lead on the provision of training; or that county councils should be involved in providing services to rural communities.

RDAs have successfully managed to invest and distribute government funds effectively to the projects and programmes that achieve the best results for the economy. All the independent research confirms this. Our investment processes are rigorous and examine long-term benefit to the economy; return on investment and the viability of the delivery organisation.

For the most part, government does not invest directly in companies - indeed it is the nature of business that they should invest 'private' capital in order to make their returns. Government does not have a great history of 'picking winners' through grants to companies. However, there are circumstances where individual businesses have a significant role to play in developing new technologies; by expanding their operations; through using more local suppliers that warrant direct investment.

Economic development is, by its nature, a partnership activity - a range of private, public and community organisations are involved to varying degrees. The outcome of this work has been independently verified - better jobs, conditions for more businesses to grow, a more highly skilled workforce and more prosperous communities in which people live and work.

By Paul Harris, Director of Communications and Information