Memorandum by the Mid Yorkshire Chamber
of Commerce and Industry (MYCCI) (DRA 76)
Paragraph 95 of the Policy Statement on the
Draft Regional Assemblies Bill mentions that the Select Committee
is seeking written evidence by 27 August 2004, so MYCCI
is taking the opportunity to send its comments.
It is reasonable when assessing a draft Bill
intended to become an Act of Parliament in due course, to consider
its capability to fulfil a purpose. Very relevant in the context
of the draft Regional Assemblies Bill is the issue of reducing
the current regional disparities in prosperity. MYCCI does
not believe that in its present form the Bill would make a contribution
of any significance to a region's prosperity just because it had
an elected regional assembly. A little while ago MYCCI
sent its comments to the Chairman of the ODPM Select Committee
following its report on "Reducing Regional Disparities in
Prosperity". It was apparent that many of the issues raised
by the Select Committee would not be able to be addressed effectively
by a regional elected assembly with very the limited real powers
as proposed.
In its response to the White Paper "Your
Region, Your Choice", the Mid Yorkshire Chamber of Commerce
welcomed the concept of devolvement from central government to
the regions, but expressed concern about the extent of the proposed
devolvement in relation to the handing over of actual powers.
You will see the comparison with the existing chambers/assemblies—the
one in Yorkshire and Humber has done a good job, considering the
limitations under which it has to operate.
In the period since the White Paper "Your
Region, Your Choice" nothing in various announcements,
which have tended to trickle out bit by bit, has reduced MYCCI's
concern about the very limited true powers envisaged for an elected
regional assembly (ERA), as distinct from "working with",
"being consulted on" and "advising" etc. By
any stretch of the imagination these are not powers. Reference
is made to elected assemblies having a coordinating role with
regard to existing bodies, but they are excluded from having any
say over third parties. This clearly goes to show that an elected
assembly is yet another body and layer of bureaucracy.
Very early on, it was apparent that only three
regions were targeted and it would be quite a number of years
before a move was made to expand on these. MYCCI has always
found it difficult to imagine central government giving any form
of true power to, say, three regions "to do their own thing"
whilst the remaining regions in England continued, in effect,
under the existing tight central government control. The Government
has previously stated that notwithstanding voting on ERAs (now
reduced to one for the time being), existing regional chambers
(some have assumed the title of assembly) will be strengthened
and supported. They could certainly take on the roles trumpeted
for ERAs as above—namely from "working with",
"being consulted on" and "advising" where
their existing activities may, as yet, not be "officially"
recognised, even though "informal" networking is already
taking place.
The Government sets so much store on an elected
assembly but has not taken the opportunity for the assembly to
have more say in connection with the host of unelected quangos
whose actions can affect matters in a region.
Then there is the question of funding for ERAs
against the yardstick of devolvement. The Government has stated
that the activities of ERAs will relate to those devolved from
central government. The Policy Statement on the Draft Assemblies
Bill mentions the need for specific additional powers in some
policy areas to enable ERAs to carry out work which is currently
a function of the Secretary of State or other bodies.
In relation to housing, reference is made to
the work of an ERA including work currently undertaken by the
Government Office for the region and the local office of the Housing
Corporation. The original Government estimate for an ERA was £25
million per year (£30 million has since been mentioned, but
it could be even higher in view of what has happened cost-wise
with the Welsh and Greater London assemblies) with £5 million
out of this represented by activities taken over from other bodies.
The question therefore arises, that if so many
existing activities are being devolved to the ERA and that it
is not becoming another layer of bureaucracy, why is the figure
of £5 million not significantly higher? This question was
asked by MYCCI of Nick Raynsford MP at one of the public
"soundings", but he gave no answer. If £5 million
is the maximum for devolvement what is the breakdown of the remaining
£20-25 million in terms of activities, which is clearly identified
as not additional bureaucracy to what is already in existence.
Moving from the general to the more specific—the
Bill includes a statement of an assembly's general purposes in
relation to its region—the promotion of economic development,
social development and the improvement and protection of the environment,
which are exactly the same as the statutory duties for local authorities
with all the implications of who holds the purse strings—75%
of central government funding in respect of local authorities
and virtually 100% of central government funding in respect of
elected regional assemblies.The Policy Statement refers to quite
a number of limitations on the powers of an elected regional assembly.
Economic Development: In this vital "test"
area of an assembly's competence there appears to have been some
slight strengthening since the White Paper "Your Region,
Your Choice". However, the RDA would retain its present
day-to-day operational independence and its Board would be directly
responsible for ensuring that it fulfils its statutory role, ie
from central government and delivers its corporate plan. The assembly
would need to consult the Government on appointments to the Board
of the RDA.
Furthermore, the assembly and the RDA would
be required to have regard to Government guidance on preparing
the regional economic strategy and the Government would be able
to require changes to be made if it considers that the strategy
is inconsistent with national strategy of have a detrimental effect
on areas outside the region, ie another region or regions. This
could be used to stifle innovative action which is sorely needed
to reduce disparities in prosperity between regions including,
for example, a northern region "stealing a march" in
some way on the prosperous south east, bearing in mind that through
national taxation, other regions are helping to pay for the major
expenditure in the south east to reduce the effects of congestion
directly resulting from its prosperity.
In the light of its response to the White Paper
"Your Region, Your Choice", MYCCI is pleased
that the Policy Statement makes specific reference to the importance
of provision for stakeholder involvement in amplification of clause
53 (subsection (3) in particular) and clause 48 (4) (participation
of assembly participants) of the draft Bill.
Training and Skills: An assembly would
have no control except in the appointment of five members to local
learning and skills councils. Otherwise it is a matter of the
national Learning and Skills Council having a duty to consult
elected regional assembles on guidance to Local LSC's, which would
have a similar duty to consult the relevant assembly on their
local plans.
European Programmes: It was originally
understood that an assembly's role would include the ability for
direct negotiations with the EC in Brussels, but this is not now
spelt out, while the Office of the Deputy Prime Minister will
continue to be the managing and paying authority.
Planning: The only real difference compared
with existing regional chambers/assemblies, will be that elected
assemblies will be able to issue their regional spatial strategies
instead of the Secretary of State.
Housing: For what it is worth, an elected
assembly's role would include work currently undertaken by the
Government Office for the region and the strategic and resource
allocations of the local office of the Housing Corporation.
Transport: It is disappointing that there
is nothing substantial in this key area linked with economic development
compared with existing regional chambers/assemblies. Elected assemblies
would be able to advise the Government on the allocation of local
transport funding and make proposals for schemes of regional importance
to the national organisations responsible for highways and rail.
Arts and Sports: Accountability and funding
for the arts and sports which are regional in character will be
devolved to the assembly in a way that protects strategic national
priorities.
Tourism, Historic Environment and Museums:
A supporting role, presumably by providing some funding from the
assembly's own budget.
Lottery: The Government does not propose
that there should be any requirements in the Bill on the Lottery
distributors, but assemblies' general purposes should enable them
to work with and support these organisations.
Public Health: Elected assemblies' general
purposes provide for them to promote the health, safety and security
of the community and assemblies would be able to support the development
and implementation of a health improvement strategy for the region.
Environment: The draft Bill includes
provision for elected assemblies' role in being consulted on environment
and conservation issues.
Crime Reduction: Assemblies' general
purposes would enable them to promote the health, safety and security
of the community.
Fire and Rescue: Additional to the White
Paper. A regional fire and rescue service would be constituted
as a functional body of an elected assembly.
The 160 page independent assessment by the Royal
Society of Arts on elected assemblies in English regions headed
"Democratic Passport to Inclusive Prosperity or Powerless
Talking Shops?" makes some interesting points. One is that
wherever a power, a budget or a responsibility is devolved to
an elected regional assembly, it is essential that Central Government
should no longer have these powers, budgets or agencies with the
same remit. This extent of devolvement has not of course arisen
with the present Bill, although it is not unreasonable to take
the view that true devolvement implies some passing of power from
one body to another and with it, associated transfer of autonomy.
In his preface the Prime Minister says "This
Bill will give the regions an unprecedented opportunity to have
a greater say over the key issues that affect them as well as
having the power to devise their own solutions and set their own
priorities."
In his foreword the Deputy Prime Minister says
"The draft Bill shows how regional assemblies would be able
to make a real difference to jobs, growth and quality of life",
and "elected regional assemblies are also empowered by the
draft Bill to make big strategic decisions over matters such as
housing, planning, transport and fire and rescue." As a "prospectus",
MYCCI believes that the draft Regional Assemblies Bill
and accompanying Policy Statement do not fulfil the requirements
to achieve these aspirations, due to the lack of real power being
devolved.
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