South East England Development Agency (SEEDA)

HELD ON THURSDAY 23 JANUARY 2003 AT SEEDA HEADQUARTERS

Present

James Brathwaite CBE (Chairman), Cllr. Ken Bodfish OBE (Deputy Chairman), Cllr. Ken Thornber CBE, Robert Douglas, Elizabeth Brighouse, Dr Peter Read CBE, Barry Camfield, Mary McAnally, Cllr. Keith House, Terry Mills, Cllr. Sarah Hohler, John Peel, Janis Kong OBE, Poul Christensen

Apologies for absence

Professor Sir Clive Booth (Deputy Chairman)

In Attendance

Anthony Dunnett (Chief Executive), Jeff Alexander (Agency Secretary and Director, Strategy and Corporate Services), Paul Hudson (Director, Infrastructure and Regeneration), John Parsonage (Director, Learning and Skills), Peter Cusdin (SEEDA, Area Director, West), Paul Lovejoy (SEEDA, Head of Strategy)
Phil Bailey (Head of Secretariat)

Congratulations

1. The Chairman and Board noted that Professor Clive Booth had been awarded a knighthood in the New Years' Honours and asked that their congratulations be noted for the record. The Chairman and Board also congratulated Mary McAnally on her appointment as Chair of the Regional Sports Council.

Approval of Previous Minutes

2. The Board approved the minutes of the previous meeting (23 December 2002).

Declaration of Interests

3. Rob Douglas declared an interest in item 5 - SEEDA's programmes for Successful People - because he was the Chair of the Surrey Learning and Skills Council.

Chairman's Report

4. The Chairman reported on a number of his meetings held since the previous Board meeting.

DTI Investment Committee

5. The Chairman had accepted an invitation to sit, on behalf of the RDA Chairs, on the newly formed DTI Investment Committee. The Committee will advise on the strategic decisions on allocation of DTI expenditure under the new system of business support and the Chairman felt that it would be a good place to influence decisions in regard to RDAs.

Meetings with Roger Cato (Managing Director - Gatwick Airport) and Roger de Haan (Saga)

6. The Chairman was keen to meet key business people around the region and explore how SEEDA and the business community could work jointly on specific projects

Urban Renaissance Conference

7. The Chairman had attended the Urban Renaissance Conference which he felt went well. He also took the opportunity of undertaking a guided tour of Reading Town Centre.

Corporate Plan 2003/06 - Meeting with Alan Johnson

8. The Chairman and Chief Executive had met DTI Minister, Alan Johnson, to discuss SEEDA's draft Corporate Plan. The meeting had gone well and only minor issues remained to be resolved. The Minister that that "SEEDA's plan was the 'best' of an improving pack". The Plan will be brought to the February Board meeting.

Meeting with Philip Hammond MP and Robert Jackson MP

9. The Chairman reported that he had met Philip Hammond MP (Runnymede and Weybridge) and opposition spokesman on Regional matters and, separately Robert Jackson (Wantage). The Chairman noted that he welcomed the opportunity to engage with the Conservative party.

Housing and the Communities Plan

10. The Chief Executive confirmed that the Communities Plan, to be launched in the near future, will propose that Regional Housing Boards be established. They will be chaired by the Government Office Regional Director and will involve RDAs as a Member of the Board together with, in the South East, English Partnerships, the Housing Corporation and the Regional Assembly. The Boards will oversee the production of Regional Housing Strategies and advise Ministers on the allocation of a new Single Pot which will take over the current Housing Improvement Programme and an element of the Housing Corporation's funding (their Approved Development Programme).

11. The Chief Executive also reported that discussions have been held with the Deputy Prime Minister on the role of SEEDA, the Housing Corporation and English Partnerships in the Growth Areas. The three Agencies have agreed to create a joint delivery team to operate in the Growth Areas based on SEEDA's dedicated operational experience.

12. The Board welcomed the Agency's increased involvement in housing because they felt it was increasingly relevant to the economic development agenda. They were concerned about the apparent lack of coverage in the Government's plans for affordable housing in regard to the non-growth areas. It was recognised that SEEDA was well placed to take advantage on their new roles and responsibilities because an agreed Regional Housing Statement was in place and work was well underway on the Brownfield Land Assembly Trust.

SEEDA's Programmes for Successful People

13. The Board noted that it was an appropriate moment to present this item because the White Paper on Higher Education had just been launched. Members were reminded that in the early days, the RDAs influence with Government was limited but that initiatives such as the National Skills Group and SEEDA's Learning and Skills Committee had meant increased leverage for RDAs. However the biggest achievement was the completion of the Framework for Regional Employment and Skills Action (FRESA) which linked the skills agenda with that of competitiveness and productivity.

14. The Board was asked to note the seven FRESA strategic objectives and how they fed into the Regional Economic Strategy (RES). The presentation set out SEEDA's key delivery partners for the four priorities in the RES:-

• Skills for Prosperity;
• Participation in Prosperity;
• Learning for All; and
• Social Dialogue.

15. The presentation also examined issues on promoting a healthy labour market which required a strong and dynamic demand side and a strong and responsive supply side.

16. Members welcomed the presentation and discussed a number of issues. It was felt that government was not always joined up on the Skills and Learning agenda and that there were a number of bodies involved including HM Treasury, the Cabinet Office's Performance Unit and the Prime Minister's Office that had only recently started to get closely involved.

17. The Board recognized that Skills and Learning was a top priority for business and Members with business experience also felt that the workforce was generally well trained but that their skills needed releasing and that the education of management could be improved. Members also acknowledged the current debate between the preferences for vocational or academic qualification based education curriculum, noting that the key point was that people should receive flexible training and transferable skills.

18. Members endorsed a strong role for SEEDA. There was support for the FRESA, noting that it joined up thinking at a regional level and that SEEDA could add cohesion to partners activities, encourage best practice and channel views to Government.

Project Cowes, Isle of Wight

19. The Board received a presentation on Project Cowes. It was noted that the Isle of Wight had recently witnessed successes in new high technology industries (composites and renewable energy) and the plans for a centre of excellence for yachting. Nevertheless despite these successes, the Island remained one of the major regeneration priority areas in the South East, containing 15 of the worst 119 wards, putting it on a par with Hastings and Thanet. GDP per capita for the Island is only 68% of the European average, but when combined with Hampshire this is largely hidden. It does not benefit from European or Assisted Area status.

20. The "Project Cowes" initiative is about planning the future of Cowes, East Cowes and the Medina Valley as far south as Newport Harbour, identifying the function of the area, the contribution it can make to the Island economy, and putting in place a strategic framework to guide new investment and development opportunities in particular for 25 key sites. In particular it is designed to take advantage of two opportunities which have now been presented to the Island - using the vacant GKN site and the plans for the design and manufacture of racing yachts for future British America's cup bids.

21. Members welcomed the presentation and strongly endorsed the proposals. It was felt that they could bring about a "step change" in the Island economy by attracting new investment to provide the facilities and attractions that both local people and visitors can enjoy. This investment will also enable the growth of local businesses and the attraction of new companies. The Board were keen that a long term vision was promoted for the Island. Members believed that it was important, in such a vision, that the regeneration and rural needs of the Island were not overlooked.

Economic Outlook and Risk Management of Downturn in the South East

22. The Board received a presentation on Global Risks and their Impact on the South East. The overall prospect facing the world economy over 2003 and beyond is one of fragile recovery, with global GDP forecast to grow by 3% this year following 2 years of decline. This would be a respectable performance, slightly below the long term trend of 3.5%. There are however a number of significant risks to this scenario, as follows:-

• A return to recession in the US
• Continued stagnation in Europe
• A consumer-led downturn in the UK

23. The impact on the South East would be greater because the region was more dependent on US investment than any other English Region. There was also a possibility that stagnation in "Euroland" would also affect the South East.

24. Members were aware that there have been a number of recent disinvestments in the South East. SEEDA had been working with local partners to provide support to the workforce directly affected to help them adapt and retrain. There may be opportunities for site redevelopment and for creating the right circumstances for the growth of the industries and occupations of the future.

25. The Chief Executive noted that SEEDA had now established seven Investor Development Managers whose role was to build relationships with the region's top companies. SEEDA was also strengthening its geographic focus by creating four new Area teams, under four new Area Directors. SEEDA was already working with the Economic Partnerships and using the sector groups to think through the potential impact on their sector.

Chief Executive's Report

26. It was noted that SEEDA had been congratulated as leading the way amongst the RDAs on responding to the Urban White Paper and Rogers Report on Urban Renaissance.

South East England "Innovative Actions"

27. The Board noted that SEEDA had been successful in the second round of funding for the new European structural funds programme. - "Innovative Actions". This new European funding programme (launched in 2002) supports 2 year regional programmes of innovative projects but must be aimed at benefiting the Objective 2 areas (Thanet and Hastings).

Interim Evaluation of Regional Innovation Fund (RIF)

28. The Board noted the interim evaluation that had been undertaken on the Regional Innovation Fund.

Arrangements for Launching the Regional Economic Strategy (RES)

29. Members noted that the Regional Economic Strategy had been formally launched earlier in the day. The core message is that the RES sets the ambition that South East England will be one of the world's top 15 performing regions by 2012 and that this will be achieved by a strategy of smart growth. The next step is to agree the Action Plans with key regional partners.

Appointment of Agency Secretary

30. The Board noted that the exchange of posts, with effect from 1 February, between the Director of Business and International (Marianne Neville-Rolfe) and the Director of Strategy and Corporate Services (Jeff Alexander) meant that Marianne Neville-Rolfe will be in the post that is recognised as having the responsibilities of Agency Secretary. The Board is required, by Standing Order 20, to appoint formally Marianne Neville-Rolfe as Agency Secretary. The Board should, at the same time, accept he resignation of Jeff Alexander as Agency Secretary.

31. The Board:-

• Accepted the resignation of Jeff Alexander as Agency Secretary; and
• Appointed Marianne Neville-Rolfe as Agency Secretary.

Date of Next Meeting

32. The next meeting of the SEEDA Board will be on Thursday 20 February 2003, at SEEDA Headquarters.