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MINUTES OF THE 58th MEETING OF THE
SOUTH EAST ENGLAND DEVELOPMENT AGENCY
HELD ON 22 JULY 2004
SEEDA HEADQUARTERS, GUILDFORD
Present:
James Brathwaite (Chairman),
Rob Anderson,
Clive Booth,
Liz Brighouse,
Poul Christensen,
Rob Douglas (until Item 6),
Sarah Hohler,
Keith House,
Peter Jones,
Janis Kong,
Mary McAnally,
Terry Mills,
John Peel,
Peter Read,
Phil Wood
In attendance:
Pam Alexander,
Jeff Alexander,
John Parsonage,
Charlotte Dixon,
Paul Hudson,
Paul Lovejoy (for Item 4),
Marianne Neville-Rolfe,
Phil Bailey
Item 1 Welcome and apologies for absence
Apologies had been received from Paul Martin (GO-SE).
Item 2 Minutes of the last meeting (17 June 2004)
- Para 43, 'John Read' should read 'Peter Read'.
- The minutes were then AGREED and signed by the Chairman.
Report on Expenditure levels
- It was AGREED that Marianne Neville-Rolfe would provide a report setting out, at a high level, spend on key SEEDA activities by area and identify region wide spend
Action: carried forward from Operational Report (17 June 2004); paragraph 65
Marianne Neville-Rolfe to provide a report on expenditure levels by sub-region for the September Board.
Annabel Main to circulate map of SEEDA activity by area.
Regional Economic Strategy and Corporate Plan
- It was AGREED that the Board would give initial thought to the forthcoming review of the Regional Economic Strategy at their proposed discussion at the September Board Meeting on the Corporate Plan.
- The Board NOTED actions and matters arising from the minutes.
Item 3 Declarations of interest
- John Peel as member of Sussex Economic Partnership in relation to core funding for South East Economic Partnership (item 12b).
- Peter Jones as member of East Sussex Economic Partnership in relation to core funding for South East Economic Partnership (item 12b) and as Member of the Hastings and Bexhill Task Force (Sea Space) (item 12a).
- Sarah Hohler as the Kent County Councillor with Cabinet responsibility for Turner Contemporary (item 8).
Item 4 Coastal Towns Rummage
- Members discussed issues surrounding the development of SEEDA's policy towards the regeneration of coastal towns. It was AGREED that the SEEDA Executive would pull together the key elements of the discussion into a plan of action that would be presented to the Board at a subsequent meeting.
Action: from Item 4 - Coastal Town Rummage, paragraph 9
Chief Executive and SEEDA Executive to prepare plan of action and present to the Board later in the year.
Item 5 Learning and Skills Division Report
- John Parsonage, Executive Director, Learning and Skills, presented his Division's latest achievements and summarised his priorities as work begins on the Corporate Plan.
- Members welcomed the presentation and commented on a number of aspects of Learning and Skills programme of activity. They acknowledged the success of the Regional Skills for Productivity Alliance (RSPA) and that business participation was good (as it was in the South East Science, Engineering and Technology Advisory Council – SESETAC). The group also had strength in that it brought together all the key agencies in the region and therefore they were able to, for example, agree to joint planning cycles. This was felt to be a critical element to the success of the RSPA. It was NOTED that although HEFCE were not involved in the RSPA, SEEDA had made progress in encouraging the Universities to think collectively about planning their activities and to take a more regional approach. Much progress had been made in the last year on influencing mainstream funding to achieve the region's objectives for skills and productivity.
- There was support for the work on basic skills moving towards the National Health Service University. Members felt that there would be potential to roll out the programme on a nationwide basis and that take up would be even better once models were established as issues such as timing, capacity and funding were resolved.
- Members NOTED that the Chancellor's spending review announcements on 12 July had included, amongst other things, the possibility of further integration of planning and funding of adult skills and workforce development on a regional level including, if RDAs and Learning and Skills Councils (LSC) agree, a 'dual key' approach to the management of adult skills budgets operated by the RDA Chief Executive and the regional LSC Director. The Board felt that there would be a general view within the South East to support this approach.
- The point was made that there may be a gap for courses on Regeneration to give people some background experience of the type of work that SEEDA carries out. John Parsonage indicated that there had been some investigations into courses of this type.
- The Board also NOTED the success of programmes such as the Workforce Skills programme, particularly the Action for Business Colleges programme. The approach towards accrediting the Colleges was supported and that the standard should remain high.
Item 6 Innovation
- Members NOTED the Science and Innovation announcements of SR 2004 and were disappointed that that there will be no new money for RDAs in taking forward their enhanced role in supporting business-university and business - business collaboration proposals following the Lambert review. Nevertheless, useful progress had been made in HEIF2.
Item 7 Developing the 2005-08 Corporate Plan
- Marianne Neville-Rolfe presented SEEDA's thoughts on the Spending Review announcements by way of background to SEEDA's next Corporate Plan. The confirmation of new tasks and responsibilities meant that RDAs had an even more central role to play in the Government's economic development and productivity agenda. This confidence in RDAs demonstrated that they had made an impact. RDAs welcomed that the additional funding for some of the new tasks will transfer into the Single Pot with ringfencing but, as had been mentioned, were disappointed that the enhanced role on business-university collaboration had not attracted additional funding but was expected to be funded from the headroom created by the inflation uplift, efficiency savings and wind-down of Single Regeneration Budget commitments. Marianne concluded that it was now incumbent on RDAs to demonstrate yet a further step change in performance and that this would be measured against the new tasking framework.
- It was explained that the key aspect of the new Tasking Framework was that it aligns RDAs regional priorities as a contribution to the national Public Service Agreement (PSA) between Government Departments and the Treasury. This meant that SEEDA's Corporate Plan needed to set out how the Regional Economic Strategy played into the Government's priorities as set out in the PSAs.
- Members AGREED that the proposed approach towards the preparation of the Corporate Plan was sensible. They asked that cross-cutting issues of importance to the region such as rural priorities, sustainability, housing and the Growth Areas should be clearly addressed. They also asked that the Plan emphasises the South East's importance in regard to the national economy.
- The Board AGREED with the proposed next steps, namely that the Board should make early input into the process through a Board Rummage at its 23rd September meeting, followed by feedback and work in progress report to the Board on 27 October. Final Board approval would be sought on 9 December, to produce a Corporate Plan for transmission to DTI by 20 December.
Action: from Item 7 Developing the 2005-2008 Corporate Plan, paragraph 21
Board to hold a Rummage on the Corporate Plan at its meeting on 23rd September.
Item 8 Margate Regeneration: Turner Contemporary
- The Board NOTED that Sarah Hohler had declared an interest in this item. It was AGREED that she could remain for the discussion to answer questions but should not participate in any decisions that the Board might make.
- Paul Hudson introduced the discussion setting the proposal for the Turner Contemporary in the wider context of the regeneration of Margate, a Priority Regeneration Area. Kent County Council (KCC) were requesting a contribution of £7 million from SEEDA towards the £25m. capital costs of the construction of the Turner Contemporary. Whilst the project itself continues to develop and be refined through detailed work, KCC are keen to have an indication at this stage of whether SEEDA will support it, and therefore it is being put to the Board, somewhat unusually, at the beginning of the formal evaluation of the project. This is to enable the Board to decide whether as a matter of principle it wishes to support the project.
- Paul Hudson explained that there were alternative options to that proposed by KCC. One possibility would be to commit up to £4 million to match the Arts Council England (ACE) allocation since it could be argued that SEEDA as a regional body should not be expected to contribute more than the national specialist arts funding body. However, in addition, SEEDA could offer to carry out the development of the adjoining Rendezvous site, itself one element of the Margate regeneration programme and a key context for the Turner Contemporary project, and an activity more directly related to SEEDA's development functions. It is also likely that SEEDA will be asked to contribute to the town centre regeneration programme. If the Board agrees in principle, the appraisal of the Rendezvous project would be taken forward alongside the full project appraisal of the Turner Contemporary which would be undertaken in association with ACE and will return to the Board via the Major Projects Committee in the late Autumn.
- Members NOTED that, since their 'in principle' agreement was being sought, the project had not yet been before the Major Projects Committee. Members recognised that Arts and Culture could play an important role itself in assisting the regeneration of Margate. It was also recognised that surrounding towns such as Broadstairs and Ramsgate had made significant improvements whilst Margate still had severe deprivation. It was also noted that there had been recent successes for Kent International Airport, that there could be improved rail links and that the Port of Dover offered a gateway for potential visitors.
- There was a view expressed and supported that SEEDA should put all possible resources into the regeneration of Margate, including the Old Town and the Town Centre, rather than substantially support the costs of building an arts centre, although there were few such buildings in the South East. Nevertheless, the possibility of continuing SEEDA support for the construction of Turner Contemporary with significant funding support for the regeneration of Margate through developing the adjoining Rendezvous site found considerable support amongst Board members.
- The Chairman made clear to the Board, in considering their decision, that this project was of the highest priority to KCC and that KCC considered that SEEDA's support and contribution was vital. It would not be enough for SEEDA to indicate support for the project without making a substantial 'in principle' agreement to contribute funding to the project. Paul Hudson agreed that the very strong likelihood was that the project would fall without SEEDA support.
- The Chairman indicated that he needed to put a motion to the Board and he asked Sarah Hohler to leave the room. The motion put to the Board was:
"To offer KCC a grant of up to £4 million in principle, subject to continuing appraisal and refinement of the project and, in addition, SEEDA to offer to consider taking over from KCC and Thanet District Council the development of the adjacent Rendezvous site as a separate project."
- The motion was CARRIED, by 10 to 3 with no abstentions.
Action: Item 8 Margate Regeneration; Turner Contemporary, paragraph 30
Board to consider full appraisal in the late Autumn, with a report from the Major Project Committee.
Paul Hudson to inform KCC of agreement in principle.
Item 9a Ashford, Kent – International House
- Janis Kong reported that the Major Projects Committee had considered this project which involved the purchase of International House, Dover Place, Ashford as part of the overall land assembly strategy for the Ashford Growth Area at a cost of £10m funded by ODPM from the Sustainable Communities Programme and by rental receipts. They ENDORSED the Chief Executive's decision to support the project but NOTED the following points:
• The project represented a departure from SEEDA's traditional way of working in that it involved property management. The Chief Executive had therefore been asked to consider competence and skills as part of the risk appraisal; and
• ODPM were supporting the project because they wanted the Sustainable Communities Plan to demonstrate progress.
- The Board APPROVED the project and the proposed level of SEEDA / ODPM funding.
Item 9b Chiltern Woodworks Enterprise Gateway Building
- Janis Kong reported that the Major Projects Committee had considered this project which involved SEEDA acquiring a site for the development of a Managed Business Centre (MBC) as the focus for the Chiltern Woodworks Enterprise Gateway, at a maximum gross cost of £5,800,000. They ENDORSED the Chief Executive's decision to support the project and welcomed property consultants undertaking the economic appraisal of this project.
- The Board APPROVED the project and the proposed level of SEEDA funding.
Item 9b Frater Gate Business Park, Gosport
- Janis Kong reported that the Major Projects Committee had considered this project which involved additional expenditure of £700,000 to provide Phase 2 of the project, increasing the total project cost from £2.9m to £3.6m. The Committee NOTED that although additional costs were proposed, this was essentially a new project, albeit a project they felt should proceed.
- The Board APPROVED the additional expenditure for this project
Item 10 Hubs and Gateways
- Jeff Alexander introduced the update on SEEDA's Hubs and Gateways programme and drew Member's attention to the key issue of a sustainable model that guarantees the future success of the Hubs and Gateways as key drivers of innovation and company start-up and growth. This involves supporting Hubs as a genuine incubation facility rather than as a managed workspace model. There was also the issue of whether SEEDA can generate income through its property investment in the programme.
- Jeff Alexander asked the Board to note progress on the Aylesbury Vale Enterprise Hub, noting that the key difference since the Board gave in principle approval at its October 2003 Board meeting was the involvement of the University of Buckingham.
- Members NOTED that the Hubs and Gateway programme remained a flagship SEEDA initiative and looked forward to considering the options for taking a sustainable model forward.
Action; from Item 10 Enterprise Hub and Gateways, paragraph 39
Jeff Alexander to report back to the Board on models for future sustainability. John Peel requested to be involved in the review.
- The Board:-
• NOTED the progress made in delivering the Enterprise Hub and Enterprise Gateway programmes across the South East; and
• NOTED that the Aylesbury Vale Enterprise Hub had been given full approval by the SEEDA Executive.
Item 11 Composite Research Centre – Isle of Wight
- Jeff Alexander reported that the Board should note that SEEDA had been working with the DTI to establish, with a funding contribution from SEEDA, the GKN Composite Research Centre on the Isle of Wight forming part of the DTI sponsored National Composite Network (NCN). In view of the urgency and the full appraisal carried out by DTI, the Chief Executive had approved this grant, which was within her delegation, without the advice of the Major Projects Committee but with the agreement of the Chairman. This project was particularly important because without support it was extremely likely that GKN would have transferred its Research and Development of composites to Alabama. He also mentioned that this project represented a good example of how SEEDA and the DTI can work together to achieve common objectives quickly.
Action: from Item 11 Composite Research Centre – Isle of Wight, paragraph 41
Chairman to write to DTI thanking them for their support for the Composite Research Centre on the Isle of Wight (Jeff Alexander to draft) by 9th August
- The Board WELCOMED and ENDORSED the Chief Executive approval of this project.
Item 12a Gap Site, Hastings and Ryde Town Improvements
- The Board NOTED that the Major Projects Committee had ENDORSED the Chief Executive's recommendations to:
• Progress the acquisition of a derelict Brownfield town centre site (Gap Site, Hastings) at a cost of £2.6m and to investigate the acquisition of the adjoining properties, and to conclude terms for the acquisition of land owned by HBC; and
• Invest in projects to improve the Town Centre and Gateways of Ryde and Ryde Esplanade, Isle of Wight, funded from the Single Regeneration Budget.
Item 12b Projects Report
- The Board NOTED the project report.
Item 13 Operational Review – Finance Report
- Marianne Neville-Rolfe reported that considerable progress had been made in committing the SEEDA programme budget and that although the tables indicated 14% headroom was available, in effect, this was also committed to projects which could be considered as 'work in progress' but were not yet in the pipeline of SEEDA's approval systems. Expenditure had also picked up after a slow start.
- The Board WELCOMED and NOTED the new format for displaying the figures and that the flow of management information was significantly improved following SEEDA's investment in the new systems. They asked that, in addition, the spend in the latest month was shown on the table.
Action: from Item 13 Operational Review – Finance Report, paragraph 46
Marianne Neville-Rolfe to revise the Expenditure Report as indicated above.
Item 14 Chairman's report
- The Chairman expressed concern that Pfizers proposal for a child day care centre was encountering difficulties with the Dover Council; and noted that Crown Estates might be a valuable partner for SEEDA and that his annual report with the Chief Executive to the SEERA Plenary, held the previous day, had gone well.
Item 15a Broadband Aggregation Programme
- The Chief Executive reported on the difficulties that the Broadband Aggregation Programme was facing as a result of DfES and Department of Health not delivering on their previous commitment to procure public sector broadband through the Regional Aggregation Boards (RABs). The situation had not yet improved.
- In the South East, a revised business plan for ADIT SE (the SE RAB) is in preparation, taking into account the reduced short term expectations of business from the DH and DfES contracts. Meanwhile the Chief Executive asked that the Board agrees that SEEDA support ADIT SE for a further two months to see if it wins further business to help it achieve long term viability. The Executive was asked to ensure that newbuild projects in the South East included fibre to the home wherever possible. Board Members were asked to ensure that, where relevant, public bodies with whom they were associated understood the value for money and potentially wider benefits offered by ADIT South East.
- The Board AGREED that SEEDA should review the position in September.
Action: from Item 15a – Broadband Aggregation Programme, paragraph 50
John Parsonage to make proposals for the long-term future of ADIT South East to the September Board Meeting.
Item 15b Agency report
- The Chief Executive added to her report by noting that SEEDA had met GO-SE to discuss the Annual Performance report earlier in the week.
- The Board NOTED the report and felt it was a very helpful summary of SEEDA's activities.
Item 16 Any Other Business
- The Board briefly discussed arrangements for presenting SEEDA's report at the Annual Open meeting on 23rd September and asked the SEEDA Executive team to consider the most appropriate arrangements.
- It was NOTED that a paper reviewing the structure and role of SEEDA's Board Committees would be brought forward at a future Board meeting.
Action: from Item 16 – Any Other Business, paragraph 54
David Rawlins to coordinate proposals with Executive Directors for the September Board meeting.
Date of the next meeting
- The next Board meeting is scheduled for Thursday 23rd September 2004 at 13:30pm following the SEEDA Annual Public Open Meeting, which, will be starting at 10:30 at the Säid Business School in Oxford.
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