All RDAs across England are closing by March 2012
(see transition and closure section).
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RDAs: "One of the most efficient of all Government departments
and agencies…" and "Focused on getting the economy moving
again"
18 June 2010
Government analysis shows that England’s RDAs are among the most
efficient of all departments and agencies, and also confirms
economic benefits arising from RDA work.
Past independent National Audit Office studies showed that all
RDAs were making a real difference in their regions, and their
latest report is likely to declare that RDAs are performing
‘strongly’ or ‘to a good standard’ across a wide range of their
work.
England’s RDAs were today responding to suggestions made during
the week that they are wasteful, have high running costs and have
not made a difference to the economies of their regions.
Sir Harry Studholme, lead Chairman for all England’s RDAs, said:
“RDAs’ responsibility is clear: to support and help government
deliver their objectives. We accept change is coming and we are
ready for it, especially considering the limited funding likely to
be available for economic development in the next few years.
“However, discussions about our future have not reduced our
passion for working to create stronger, more sustainable and
balanced economies in each part of the country.
“Together, our challenge is to ensure that England can remain
internationally competitive in future, particularly in key sectors
such as advanced manufacturing and low carbon technologies.
“It is vital that our record in recent years is judged fairly
and accurately, to best inform a new way forward in the difficult
times ahead.”
HM Treasury’s 2009 study "Smarter government: Putting the
frontline first" found that RDAs were among the 25% most efficient
of all government departments and larger agencies in terms of
financial management, HR, IT, procurement and office costs.
Over the last three years, England's RDAs have spent
approximately 10% of their 'Single Programme’ funding on
administration costs. Spend on administration will come down by a
further £57 million by the end of the current three-year spending
period in 2011.
Sir Harry said: “We believe evidence will demonstrate that this
admin level of 10% compares very favourably with organisations past
and present carrying out similar functions.”
In 2006, the National Audit Office (NAO) assessed how well each
RDA was performing over a range of key activities designed to
improve regional economies. They judged that all nine RDAs were
performing ‘highly’ or ‘well’.
The NAO’s latest studies of RDA performance are due to be
published soon, and they are likely to declare that RDAs are
performing ‘strongly’ or ‘to a good standard’ in over 80% of
functions assessed, and that they are at least ‘adequate’ in the
remaining ones.
Finally, in one of the largest independent evaluations of its
type undertaken for government, PricewaterhouseCoopers found last
year that - over a five-year period from 2003 to 2008 - each £1
invested by RDAs had directly benefited regional economies by
£4.50.
That figure increased to £6.40 if future benefits of RDA
investment were taken into account. PwC were rigorous in analysing
only that proportion of RDA work where they considered there were
clearly attributable 'direct' benefits to RDA investment. If
indirect benefits were taken into account, those £4.50 and £6.40
figures would increase significantly.
PwC said that there was “credible evidence that all RDAs have
generated economic benefits, especially if account is taken of the
potential persistence of the projected benefits.”
Sir Harry concluded: “Based on this independent analysis, and
with a conservative estimate, RDAs have contributed at least £38bn
towards the economic development of England's regions during that
period.
“We do not claim we have got everything right in our 11 year
history, but the story of our work is overwhelmingly one of
success.”
On the South West RDA’s work in Cornwall
Over the last decade, the South West RDA has invested more in
Cornwall and the Isles of Scilly than any other part of the region
- over £300m, which is over a quarter of our investment expenditure
attributable to specific places. Cornwall receives the highest
share of RDA funding with Devon, including Plymouth and Torbay, not
far behind.
The Agency has helped to inspire and drive some of Cornwall’s
most iconic developments, including:
- Eden Project;
- Combined Universities Cornwall;
- St Austell town centre redevelopment; and
- The internationally acclaimed Wave Hub
Many of these and other projects receive EU funding which have
to be match funded by the public and private sectors. The Agency
has consistently provided the lion’s share of match funding. This
work has been led by our team in Truro, working closely with, and
listening to, Cornwall’s many public and private sector
partners.
Some example of the projects that have been supported
include:
St Austell town centre regeneration: RDA
invested £31.5 million in this £75 million scheme that has
regenerated five acres of Cornwall’s largest town to create a
vibrant new retail centre, car parking and town centre
accommodation. The RDA’s investment leveraged £43.5 million from
the private sector and this scheme would never have happened
without the Agency’s involvement because of the extent of market
failure in the town. It is estimated that the project will create
between 500 and 700 jobs and the scheme is almost fully let.
Eden Project: The South West RDA has been
involved with Eden since its inception and has provided £17.93
million of investment over the project’s four phases of
development. A comprehensive study into the Eden Project’s economic
impact, compiled by independent consultants Amion, estimates the
cumulative impact of Eden to be in the region of £737.8 million up
to March 2007. By the end of the decade this figure is expected to
exceed £1 billion.
Gaynor Coley, Eden's managing director, said: "The RDA had the
foresight to get behind the concept of Eden long before we owned
our site or had put a spade in the ground. They helped champion the
idea that an ambitious visitor destination with environmental
education at its heart could transform the economic landscape not
only for Cornwall but for the wider region. They were prepared to
entertain untested architecture and engineering and a construction
plan that would have left many others like rabbits in the
headlights. Their support has leveraged £56 million from the
Millennium Commission into the county and built not only an
economic engine but a model for regeneration that has attracted
interest from around the globe.
“Their support created an optimism and demonstration that we can
do world class here in the South West - and has fostered an
attitude that will bring benefits as yet unmeasured for many years
to come."
Wave Hub: This £42 million project has been
spearheaded by the South West RDA since its inception and will
create the world’s largest test site for testing wave energy
devices 10 miles off the north coast of Cornwall.The RDA is
investing £12.5m in Wave Hub with a further £20m from the
Convergence European Regional Development Fund and £9.5m from the
UK Government.
An independent economic impact assessment has calculated that
Wave Hub could create 1,800 jobs and inject £560 million into the
UK economy over 25 years. Almost 1,000 of these jobs and £332
million could be generated in the South West. The aim is to create
an entirely new marine renewables industry in South West England
that enhances the UK’s offer to the global marine renewables market
which could be worth £100bn per annum by 2030.
On the South West RDA’s 2006 staff conference
This was our annual staff conference/training event in May of
that year. The two day event brought together the majority of our
300 staff from across the South West to discuss and plan the work
for the forthcoming year, and to provide staff training on key
operational issues. As the largest English region, with teams based
in several offices, this was a most cost effective way to building
an effective agency. Most large organisations have a regular staff
event of this sort; we are no different and on a per head basis
this event was exceptional value for money.