South East England Development Agency (SEEDA)

HELD ON THURSDAY 25 JULY 2002 AT SEEDA HEADQUARTERS, GUILDFORD

Present

Allan Willett CMG (Chairman), Professor Clive Booth (Deputy Chairman), Cllr. Ken Bodfish OBE (Deputy Chairman), Cllr. Kit Oliver OBE DL, Caroline Williams, Cllr. Kevin Wilson, Janis Kong OBE, James Brathwaite CBE, Barry Camfield, Robert Douglas, Elizabeth Brighouse, Dr Peter Read CBE, Sarah Ward OBE DL, Mary McAnally (from 14.00hrs)

Apologies for absence

Cllr. Ken Thornber CBE

In Attendance

Anthony Dunnett (Chief Executive), Paul Bevan (Chief Executive, Regional Assembly), Jeff Alexander (Agency Secretary and Director, Strategy and Corporate Services), Phil Bailey (SEEDA, Head of Secretariat), Marianne Neville-Rolfe (Director, Business and International Division), Paul Hudson (Director, Infrastructure and Regeneration)

Summary of Meeting

• The Board approved the minutes of the previous meeting.
• Noted the Declaration of interests by Members;
• Reviewed progress against the Agency's Core Output Targets;
• Noted the report by the Chairman;
• Noted the Chief Executive's update on the Hastings and Bexhill 5-point plan;
• Noted and endorsed work on the Freedom of Information Act 2000;
• Agreed that SEEDA should progress work on a partner survey;
• Ratified SEEDA's membership of Finance South East Limited;
• Approved, in principle and subject to full appraisal, the Newhaven Enterprise Gateway;
• Discussed with the Regional Assembly, the White Paper on Regions and the Regional Economic Strategy;
• Noted and agreed SEEDA's Transport and Environment Accountability Plans;
• Reviewed and noted the Finance Report and various SEEDA programme investments.
• Approved the revised Terms of Reference for the Audit Committee and noted the record of a meeting of the Audit Committee held on 20 June 2002.

Declaration of Interests

1. Jim Brathwaite declared an interest in item 7 - Newhaven Enterprise Gateway - because of his involvement with Sussex Enterprise and item 12 - Environment Accountability Plan - because he had recently acquired a company involved in waste recycling. It was agreed that Jim Brathwaite was not debarred from participating in the discussion on these items.

Tier 3 Core Outputs

2. The Board received a brief presentation on the Core outputs (Jobs created/safeguarded, Brownfield Land remediated/recycled, Learning Opportunities and businesses created or attracted to the region that begin trading and those sustained for 12 months). SEEDA has now established common definitions for outputs under various programmes.

3. A provisional assessment of progress against each target was provided to the Board. Validation of SEEDA's achievements is undertaken through a rigourous process involving Internal Audit and the National Audit Office.

Chairman's Report

4. The Chairman reported to the Board on a number of issues including various meetings: the RDA Chairs Forum, the RDA Chairs meeting with the Chancellor, Margaret Ford, the new Chairman of English Partnerships and meetings with Charlotte Dixon and David Shakespeare before they stood down from their respective positions as Acting GO-SE Regional Director and Chair of the Regional Assembly.

Comprehensive Spending Review 2002 (CSR 2002)

5. The Chairman noted that the Board would be discussing the recent announcements later but he viewed the CSR 2002 outcome as extremely positive for RDAs. RDA funding had been increased by 4.5% but, more importantly, additional responsibilities had been given to RDAs. SEEDA's own funding would not necessarily increase by this level as it was subject to a formula approach for allocating funding between RDAs.

Housing

6. The Chairman noted that he would be meeting the Deputy Prime Minister on 8 August to discuss recent announcements on housing in the South East. Members noted that Milton Keynes, Thames Gateway and Ashford had been identified as areas to locate additional housing and that there were many associated issues such as availability of funding for supporting infrastructure such as schools, hospitals roads etc. Members stressed the importance of local authorities and communities being fully engaged in taking this forward.

Successor to SEEDA Chairman

7. The Chairman noted that the new Chairman was due to be announced shortly.

Hastings and Bexhill

8. The Chief Executive updated Members on the development of the 5 point plan and progress made since the Government's announcement on 21 March 2002. In particular he stressed that SEEDA has sought assurance from Lord Rooker, who has taken over responsibility for regeneration from Lord Falconer at the Office of the Deputy Prime Minister, that there will be no change in support from Government for implementation of the 5 point plan. The Minister has agreed to visit Hastings on 31st July.

9. Members welcomed the progress report.

Freedom of Information Act 2000

10. Members noted the paper that had been provided on how SEEDA was responding to the requirements of the Freedom of Information Act 2000. A 'Model' Publication Scheme was being developed by the North West Development Agency on behalf of RDAs and SEEDA was fully involved in the process.

Finance South East

11. The Board recalled that it had agreed at its meeting on 26 July 2001 to establish Finance South East as a company limited by guarantee and that rigourous efforts had been made to establish a fund of £30m. The Board now agreed that the Fund should close at its present levels, albeit leaving open the option of securing additional funds.

12. The Board ratified SEEDA's membership of Finance South East Limited.

Newhaven Enterprise Gateway

13. Members noted that this was the first proposal for an enterprise gateway to be brought to the SEEDA board. Enterprise Gateways are a new SEEDA concept aimed at providing the same level of incubation as enterprise hubs but targetting a broader business market which will include businesses in deprived wards, social and community businesses and businesses being run by ethnic minorities and women entrepreneurs. SEEDA is in close partnership with Business Links on Enterprise Gateways.

14. This first enterprise gateway would be based at a new incubator centre at Denton Island. It will provide physical incubation space and offer intensive business support to tenants and aspiring entrepreneurs within the Newhaven area.

15. Members welcomed the concept of Enterprise Gateways and agreed that Newhaven was an appropriate location for an Enterprise Gateway. They stressed the importance of involving the local community and local voluntary organisations as the project is developed and appraised

Regional Assembly Liaison

16. The following issues were discussed:-

White Paper - Revitalising the English Region

17. Paul Bevan briefly set out the Assembly's initial views. The Chairman emphasised that SEEDA would be contributing to a collective RDA response and would stress the view that regionalisation had to have demonstrable benefits for sustainable economic development and that regions should be allowed to adopt a flexible approach.

Regional Economic Strategy Review

18. Paul Bevan referred to the discussion at the Assembly Plenary on 17 July of the responses to SEEDA's RES Consultation document and commented that this had been a useful process. He noted that the Assembly had asked for a special meeting to consider the draft RES in full once it had been developed and that this meeting had now been arranged for 4 October.

19. Paul Bevan also noted the recent announcements on housing in the South East and confirmed that the Assembly's Planning Committee would be considering a response.

Transport Update and SEEDA Accountability Plan

20. The main areas of progress since the Board last considered the Transport SAP (July 2001) were highlighted. SEEDA had made a substantial contribution to the development of the draft Regional Transport Strategy (RTS) and the multi modal studies (ORBIT, South Coast, Thames Valley, South West and Wales). Members noted the update and approved changes in the Transport accountability plan for inclusion on SEEDA's website.

21. The Board was updated on the 'Transport Compact'. This envisaged a solution which embraced new investment in the road and rail infrastructure, a firm recognition of the environmental assets of the region, restraining traffic growth, investment in public transport and recognising the gateway role of the region's ports and airports. The Regional Assembly has commissioned some research which will enable the relationships between these factors to be explored and understood.

South East England Comparator Regions Analysis

22. The Board were reminded that SEEDA had commissioned research comparing the South East with top performing 40 regions across Europe, North America and Asia Pacific. The original list of 40 regions included a wide range of economies and the second phase of the project identified a list of 14 regions with similar profiles to that of the South East, in terms of sector mix, economic structure, and functions.

23. The Board welcomed this work and agreed to further work on specific dimensions of inter-regional comparison should be pursued.

Review of Regional Economic Strategy (RES)

24. The overall messages of the consultation process were:-

• Overwhelming support for overall approach, and analysis of the region;
• Smart growth endorsed as the central aim of the RES;
• Strong support for the broad thrust of policy proposals, with no fundamental disagreements or entirely new policy directions being proposed;
• Clearer recognition of the environment as an asset rather than a constraint;
• More clarity required on the role of SEEDA, and of other partners;
• Fewer, more distinctive, SEEDA actions.

25. A draft strategy will be presented at the September Board meeting and, following their consideration, a draft will be considered by a special meeting of the Assembly on 4 October. Final approval will be sought at the Board meeting on 17 October.

26. The Board took the opportunity to discuss a number of issues that had arisen or been announced prior to the Board meeting:-

RDA Lead Roles

27. The Chairman explained that RDA Chairs had agreed lead roles for each RDA. A key point was that the 'lead' rested with the RDA, not the individual RDA Chair. SEEDA's lead areas were:-

• Manufacturing
• Competitiveness/Clusters/innovation
• Broadband/ICT/e-commerce
• Science & Research/Research Councils
• Corporate Social Responsibility
• Renewable Energy (as since confirmed)

Comprehensive Spending Review 2002 (CSR 2002)

28. The Chief Executive outlined the key proposals contained in the CSR 2002.

RDA Budget Increase

29. Increase in RDA budgets of 4.5% per year in real terms in the next 3 years with a budget switch of £200 million per year from capital to revenue to help ensure the RDAs have the right mix of funding for their evolving role.

Tourism

30. RDAs collectively given an initial £2 million per year from the DCMS for their greater role in regional tourism promotion.

Transport - Multi Modal Study Budget Increase

31. RDAs collectively given an additional £2 million per year from 2004-05 through DTI to play an increased role in commissioning of multi-modal transport studies via the Regional Planning Bodies, to ensure that transport links within and between regions support increased productivity.

LSCs & Business Links

32. The piloting of an enhanced role for RDAs in working with the LLSCs on Adult Learning and in the management of the SBS service at the regional level.

Housing and Planning

33. RDAs will be invited to participate in the reforms being made to the institutional framework on housing and planning. Increasing the supply of affordable housing is a particular priority in the South East and adjacent regions.

Innovation

34. £1.25 billion additional Government spending by 2005-06 compared to 2002-03 and a stronger role for the RDAs. Part of the funding will be used to create a new enhanced Higher Education Innovation Fund to stimulate the commercialisation of scientific research.

35. The Board welcomed the key proposals contained in the CSR 2002. The recognized that significant additional responsibilities had been passed to RDAs and that DCMS was now a sponsoring Department of RDAs.

South East Regional Airport Study (SERAS)

36. The Board noted that the Government had launched its consultation paper setting the strategic direction for airport policy for the next 30 years

37. Members recognised the importance of this consultation to the South East. The Infrastructure Committee would now consider the report and it was noted that the Regional Assembly would be commissioning a specialist to review the Study.

Review of the Environment Accountability Plan

38. The Board briefly discussed progress on Waste. It was agreed that SEEDA had a role to develop a market in waste recycling and a supporting role in the preparation of a regional waste strategy.

39. Members noted the update and approved changes in the Environment accountability plan for inclusion on SEEDA's website.

Date of Next Meeting

40. The next meeting of the SEEDA Board will be held on Wednesday 18 September at SEEDA Headquarters, Guildford.