Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 340 - 352)

TUESDAY 14 SEPTEMBER 2004

COUNCILLOR ARTHUR BRANSBY THOMAS, COUNCILLOR BOB GIBSON, MR PAUL BRIGGS, MR STEVE MACHIN AND MR PAUL BEVAN

  Q340  Christine Russell: Can I ask you what you are planning to do to interest women in regional government. 14 witnesses this morning, and every one is a man. I would like to know with your regional assemblies how many women have got actively involved? What plans have you got to involve more in the future? Perhaps you could then go on to talk about stakeholders' involvement and when you envisage that happening?

  Mr Briggs: I have been particularly involved with that as Chairman of the Economic and Social Partners. We have a number of women making a contribution on our Economic and Social Policies Group.

  Q341  Christine Russell: Just making tea?

  Mr Briggs: No, they are very much involved with drawing up the policies we have actually done. One member is particularly concentrating on the very issue you have raised. We have included that in terms of the equality and diversity issues we have mentioned earlier on. I think the involvement of stakeholders is an extraordinarily important factor, and it is why we have spent quite a lot of time actually drawing up a statement of principles, so that it is enshrined statutorily and also involved in the structure and operation of an assembly if the yes vote comes through. We have to make sure we review that. I would like to see that scrutiny role actually brought more forcefully forward in any Bill that comes forward to ensure that those particular obligations are carried through. That is very important. I think there is another element of scrutiny, which I think you began to address earlier on in the previous session. It seems to me we ought to have an extended power of scrutiny over the implementers of the strategy, and perhaps even for those who are actually investing money from other quangos in the area, so that they do align with the strategy for the region. If there is no more money in the region then we must make it effective and make sure it is aligned with that. I would hope that the stakeholder involvement, if it can be made more solid in the Bill, would actually empower stakeholders and make them more involved.

  Mr Machin: Some very quick statistics from the North West. I think out of 46 local authorities there are five women chief executives. It is a problem which is one of governance in general, rather than for regional governance. The North West Regional Assembly has engaged the Manchester Business School to do research to identify the presence of women in particular and the imbalance in gender across governance in the North West. Certainly the outcome of that work shows that the prospects for more representative gender balance in devolved institutions as in Wales do offer a number of opportunities in regional governance if we get the structures right. Moving on to stakeholder involvement: we have proposed that the added value we have gained from involved economic and social partners be extended with their representatives sitting at the board table with the elected regional assembly, should one arrive in the North West, and be involved fully in decision-taking but not in decision-making. That is something which is best done through the representative role of the ballot box. There is real value-added to be gained from regional bodies through the involvement of business and social partners: obviously a "yes" to the idea of a regional civic forum; and full stakeholder involvement in as many ways as we can achieve. In the North West the Chamber of Commerce has 17,000 members.

  Chairman: If I could just cut you off there.

  Q342  Mr Betts: Relations with the regional Government Office, would you say how you think that might change under an elected regional assembly? Would it be more radical if the proposal was to abolish the regional Government Office and give the regional assembly responsibility for those functions?

  Mr Machin: We think that the current arrangements in the North West with the Government Office work very well up to a point. The problem is not with the Government Office and the regions, it is the point at which their schizophrenic role being a support of the region but also the Government's watchdog comes into play. We know with the European Structural Funds that had there been more flexibility with Whitehall we could have built on the 95% success of the bid we achieved in the 2006 round. I think there are good relationships that work very closely with Government Office and the RDA. Certainly the role of Government Office of London is one where further clarity is needed. If you have a regional assembly it seems to me that the officials that work to it and work to Government need to be very clear about the extent to which they are responsible and to whom their duty lies.

  Mr Bevan: I think one would expect the Government Office to reduce in size and scope.

  Q343  Mr Betts: Substantially?

  Mr Bevan: Yes.

  Cllr Gibson: The relationships with the North East, the Regional Government, the Office of the Regions and the RDAs are excellent. The interface in future is now being looked at, as is the interface with local government etc.

  Q344  Mr Betts: A lot is going to change somehow. We have got the RDA and you have mentioned a good working relationship, fine: but under the new regional assembly presumably there is no responsibility for the day-to-day working of the RDA but to carry on as before. There will be a regional strategy done by the RDA in line with Government guidelines and then the assembly is going to get it and be able to alter the full stops and commas. It does not seem they have got much more to do than that. Is that a hard view?

  Mr Machin: I do not think it is unduly hard. I think what needs to be worked through is: firstly, which institution is responsible for policy development—I would argue that that would be the elected assembly; secondly, which for delivery—I would argue that would be the agencies, Environment Agency, Development Agency and so forth; and, thirdly, who is responsible for evaluating whether the bodies are being effective or not.

  Q345  Mr Betts: The policy of strategy is still with the RDA. Eventually it comes to the assembly. We all know the bodies to initiate generally have the real power. Why is the power not with the regional assembly?

  Mr Machin: I think in your deliberation that is one thing that needs to be made clear. The power should sit with the elected body; and the Development Agency, Environment Agency and their like become delivery bodies which are tasked to deliver against specific targets for the region.

  Q346  Mr Clelland: The estimated cost of an elected regional assembly for a Band D council taxpayer is around 5p a week. Do you think that is a realistic figure in your view, or do you think the Government has provided sufficient tax-raising powers for elected regional assemblies?

  Cllr Gibson: It is difficult one to work through. I would like to see a paper on this. I do not know where the 5p comes from. I do not know where the £25 million comes from. I do not know where the 300 jobs come from. I do not know where the £400 million building comes from. So it is a difficult one. For me if we can achieve what we set out to achieve in terms of workless-ness, connectivity, a better regional development strategy then 5p in the pound on local tax seems fairly cheap.

  Q347  Mr Clelland: It could be difficult for regional assemblies to have real clout and real authority when they can only influence things rather than actually have a financial power to do things.

  Cllr Gibson: The Bill is what it is. It is what we derive and drag out of Government from then on. It is a process than begins on November 6th; it is not an event that ends on November 4th.

  Cllr Thomas: The other aspect of finance which is rather strange is that this Bill is tighter on the block grant that is coming through, proposed through Government, than was proposed in the original White Paper when there was much greater flexibility for the assembly to be using it.

  Q348  Chairman: Would you like that greater flexibility back in?

  Cllr Thomas: Yes, we would.

  Q349  Mr Sanders: We heard earlier in the North East that of 300 staff in the Government Office 100 of them are transferring to the assembly and will be employed by the elected assembly. Is that not a very clever way of central government shifting the costs of 100 staff, at the moment paid for directly by the taxpayer, on to the council tax payer in the region? Are we not actually being had by this entire Bill, which is simply a way of transferring costs from the centre on to the region in the mistaken belief that you have some say over what happens in the region? Discuss.

  Cllr Thomas: I do not think the 5p is something which will cover the cost of what you are envisaging there. I could make the general point that with the present assemblies the financing has certainly not kept pace with the responsibilities given to the assemblies. Whatever happens with the finance, there has to be the finance to allow the assembly to do the job it is being created to do.

  Q350  Mr Clelland: What flexibility will regional assemblies have under the terms of the general grant they will get?

  Mr Bevan: I think the functional body approach is a real limitation. It is bad enough within a government or local government organisation to take money from one department and put it into another to reflect your priorities; but if you have got functional bodies with relatively autonomous boards that makes it even more difficult.

  Q351  Mr Clelland: Cllr Gibson mentioned his ambition in the North East for additional powers certainly in terms of transport. Why is that so important?

  Cllr Gibson: I think we do not have powers in the North East. The powers in transport are here in Westminster and Whitehall. The strategies for the region tend to be around congestion in the South and South East and not the economic development needs of the North East. We need now to be looking in the North East at our links with Scotland, and our connectivity with Scotland, through to Ireland and Europe; and our connections with Manchester, Liverpool and Leeds. We cannot deal with issues—we are not allowed to deal with issues—unless the priorities are set down here in Westminster and Whitehall. We have argued for years about dualling the A1 into Scotland and it gets laughed at because people say, "Why do you need to dual carriageway the Lake District?" It is not about that. It is a serious problem of getting the North East connected to Scotland and connected to Manchester and the South etc so they will begin to develop.

  Q352  Chairman: Would you like to see transport powers added?

  Cllr Gibson: We want to amend the Bill in Parliament and have powers but we would like the finance around those powers as well, so that we can have regional strategies on transport etc, developing the region, paid for by the region and everybody in the region has a handle on them. We do not have that at the minute.

  Chairman: I am afraid at that point I will have to cut you off. Thank you very much for your evidence.





 
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