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South West RDA chair highlights the need for strong private sector involvement in new LEPs

08 September 2010

The chair of the South West RDA has been telling a Government select committee how important the voice of business will be in the make-up of the new Local Enterprise Partnerships (LEPs) and the delivery of economic development work in the future.

Sir Harry Studholme appeared before the BIS Select Committee yesterday (07 September), along with the chairs or chief executives of four other regional development agencies. The RDAs had been invited by the Committee to provide their perspective and lessons learned in developing a sustainable and resilient economy.

RDAs are due to be abolished by the spring of 2012 and some of their functions will be carried out by LEPs – proposed to be joint local authority / business groups.

The Committee heard evidence for around 80 minutes from the RDA leaders, as they discussed some of the challenges ahead such as the transfer of RDA assets and knowledge, responsibility for inward investment and how LEPs might be funded, co-ordinated and staffed.

The RDAs emphasised the economy can only be rebalanced with effective and direct partnership between the private sector (small, medium and large companies, and their representatives) and the public sector. They further noted that RDAs have themselves benefited strongly from the injection of commercial experience and acumen into their boards and workforces.

At this critical time for the economy the Agencies reiterated their support for making the transition to LEPs - and new nationally-led functions - as smooth as possible. However it was noted that successful economic development takes time and expertise.

The Committee also heard about the complexities and diversity of economic geography and the need for LEPs to cooperate across wider areas as functional market areas rarely reflect administrative boundaries.

Speaking after the hearing, Sir Harry said: “This morning was an important and welcome opportunity to outline to MPs a number of challenges which are going to be critical in the transition to a different way of structuring economic development.

“RDAs have been uniquely placed to co-ordinate activity and investment, to strategically plan to use scarce resources to best effect, and to bring many partners together onto shared ground. Each £1 invested by RDAs has directly benefited regional economies by an average of at least £4.50.

“We’re keen to pass onto ministers and civil servants what we’ve learned from 11 years of economic development that will help the English regions in terms of economic recovery. It takes time to become really effective in this regard, to develop mature networks and partnerships, and to understand what works in practice – and to design, develop and deliver effective programmes and projects on the ground. So we’re glad to have been able to explain these crucial issues to the committee’s MPs today.”

Ends

Notes to editors

The South West RDA works for and promotes a modern, stronger and more resilient economy across South West England.

Our work involves creating better jobs, successful businesses, more prosperous cities, towns and villages within an economy that uses less carbon and will still be thriving in 20, 50 and 100 years time.

For more details contact: RDA Press Office, 01392 229567.