Select Committee on Communities and Local Government Committee Minutes of Evidence


Examination of Witnesses (Questions 160-173)

MS TRISH HAINES, MR KEN FOOTE AND MR LAIRD RYAN

20 MARCH 2006

  Q160  Mr Olner: The footprint is not wrong—it is too big?

  Mr Foote: We are yet to be convinced with the proposed footprints of the ambulance service and the police service, in regard to sensitivity to local issues.

  Q161  Mr Olner: I know that Staffordshire is well in love with the West Midlands on all of these issues—are you not?

  Mr Ryan: The new localism, if you like, is putting increased pressure on those services to link in to local demands and identities; and yet at the same time they are trying to create a regional perspective for them, so the two definitely run counter to each other.

  Mr Foote: I thought that was a really important point because at the same time we are having this debate about regions, sub-regions and city regions, most town halls are now devolving lots of powers and governance to neighbourhood levels, and so we have to see this in some kind of continuum and not have too big gaps opening up in terms of accountability and strategy.

  Q162  Mr Olner: Mr Foote, at one stage you are saying you are going to devolve things to a lower level locally, and it is moving in other regions the other way, to make things bigger. Does the one in the middle disappear?

  Mr Foote: That is why we are very interested, particularly where we are because of the geography of the north, in the sub-regional, city regional agenda, because we see that as the real opportunity to connect both to the street and to the region; and because of where the Humber is, we have as much interest in what is happening in Rotterdam as we do other parts of the country, so we are wanting to try and connect all those places with some kind of strategic thread.

  Q163  Mr Betts: To Hull and Stoke; you have obviously large parts of severe deprivation and low activity in your areas. How do you think city regions would address that particular issue?

  Mr Ryan: I think that they would create a wider perspective for the strengths and weaknesses and opportunities that we can use to address the issue. Over the past twenty years or so there has been a whole series of initiatives like SRBs, derelict land grants, a housing market renewable partnership and so forth, which have tended to focus on the weaknesses of the area, and allow the area in a sense to pull itself up by its own bootstraps. The reality is that a city regional perspective widens the economic opportunities. For example, the zone of influence of Stoke-on-Trent extends across three regions, into the North West and then to the East Midlands; but because the regional economic strategies collect the data region by region, we cannot see the benefits of what is going on in the city in terms of the wider area. We also have, for example, am automotive corridor that runs along the A50 and the A500 from Bentley and Crewe, through Stoke, through JCB at Uttoxeter and to the west side of Derby. It enables us to identify the way that labour and housing markets operate, and the environmental perspective and the way that that operates. If we just look at it in terms of our city boundaries, we do not do full justice to the processes that go on.

  Q164  Mr Betts: Was not one of the problems of trying to do it through almost loose working relationships that Hull and East Anglia had a bit of a problem, did they not, on housing market renewal, in getting its act together and getting funds? If you had been in an athletics race, you would have been lapped by one or two of the other contestants.

  Mr Foote: No, the baton has been handed down. What I was going to say- funnily enough before you asked that question was that if you had East Riding giving evidence to you, they would be saying that it is absolutely crucial for the sustainability of the East Riding that Hull works as a city and vice versa; and that the relationships and the interconnectivity between Hull and the East Riding is properly understood between the two councils. There is an enormous amount of cross-boundary activity going on. That perhaps was not the case back when there was the break-up of Humberside and the two or three years that followed that; those days have gone now. We actually see that we have got a shared agenda.

  Q165  Mr Betts: Concern has been expressed in relation to city regions that those authorities, those small towns that may be on the periphery of a city region—and indeed might be in an overlapping area between two city regions—that they somehow lost out in the loose federations that get formed. Is that an issue of concern that has been raised and you are trying to address that?

  Mr Ryan: No, not at all. If you look at our own example in south Cheshire, there are two contrasting authorities: Crewe and Nantwich, and Congleton. Crewe and Nantwich have a very successful engineering sector and a number of chemical industry research establishments, and it has a very high-quality living environment. However, they are not recognised as being part of the Manchester city region. They tried to join and they were rejected. Congleton is an area that falls between Manchester and ourselves. They have an image as being a commuter centre both northwards and southwards. The whole idea of the city regional approach that we are trying to adopt is one based around governance and the strengths of the areas. It is trying to complement what is going on in the city centre with the opportunities of small towns and rural areas so that there is, if you like, a fair exchange between them.

  Mr Betts: Clearly, there may be a division of opinion about how city regions should be governed, whether it is this loose coming-together of a number of existing authorities which pool their efforts on a slightly wider area—but equally can look out if they get nasty decisions that they do not want to be part of; or having something that is more formalised with directly-elected councillors or a mayor—as the RPPR has just come out in favour of—for a city region, with a more formal structure with the hope that central government would recognise that and target resources at it. Do you have views on that?

  Q166  Chair: Can we have a brief view from each of you—a "yes" or "no" really?

  Mr Ryan: Yes, as long as it is not the one-size-fits-all approach.

  Q167  Chair: So either, but depending on which city.

  Mr Ryan: Yes.

  Mr Foote: Local communities have lots of experience through local strategic partnerships of being able to manage areas through governance arrangements, which are not necessarily governmental arrangements.

  Ms Haines: Voluntary arrangements work up to a point. They do not work as soon as you start getting conflicting local priorities in different areas, and you have to have some other mechanism for dealing with that. The tried and tested one, in a sense, is LGR, which has some significant downsides. There are a couple of other options, one of which is the elected mayors that you talked about; and another would be loading funding arrangements into strategic planning, to require it to be done on a joint basis, which has been done in a very limited way.

  Q168  Alison Seabeck: Ms Haines, you have already covered some of the benefits that you feel Reading could gain from becoming a city region, and in a sense some of those are also clear from your submission in which you comment that Reading Council is restricted in its ability to take a whole range of decisions because it does not have a wider remit outside its own boundaries. How do the other five authorities within your urban area feel about that—your expansion, if you like?

  Ms Haines: They have different views. Some of the views are different from ours and from each other, so there is not a consensus on this, and that is part of the problem; that there is no clear way forward coming out of the councils working together.

  Q169  Alison Seabeck: What are their concerns? Can you pinpoint any specific concerns, or is it across a range of issues that they just feel that your political clout will simply subsume them?

  Ms Haines: The concerns are around two specific things, and they both relate to economic growth: for those on the outside ring of a city region gaining the benefit from economic growth without having to carry many of the costs of it; and those on the inside of the city region carrying many of the costs and having to bear them disproportionately. The voluntary arrangements around things like key-worker housing, the voluntary sector, et cetera are not a problem because everybody thinks those are a good thing to do. As soon as it comes to crucial things like housing numbers to facilitate economic growth or road-building schemes or other transport infrastructure arrangements that might lead to more congestion, or traffic being routed differently, then each authority looks to the interests of its own local area, quite legitimately obviously. What we have not got is a view across that wider region that transcends administrative boundaries. It is stifling strategic planning.

  Q170  Alison Seabeck: You are suggesting that you need to have some form of city regional government rather than just purely voluntary governance for structures if you are to make those decisions on a broader basis.

  Ms Haines: Yes, Chair. The current governance arrangements are insufficient for the strategic view that needs to be taken on some things. It is sufficient in lots of ways, but there are some specific areas, specifically around strategic planning, where they are insufficient. I think there are several routes that could provide that—as I say, a spectrum from required joint strategic planning backed up by allocation of funding at one end to local government reorganisation or elected mayors or whatever at the other end. There are different routes that lead to that.

  Q171  Alison Seabeck: Let us move forward and assume there is a greater Reading, a city region around Reading: how do you envisage that functioning with the London city region and the Mayor and his powers, because there will undoubtedly be overlaps?

  Ms Haines: The overlaps are there at the moment, so in discussions with London around things like Crossrail those discussions go on, and I do not think that that would be any different. It might be a slightly more equal discussion because London is not only very large and powerful but it is very well organised in the way that the rest of the councils in the South East do not speak with as coherent a voice as they might do.

  Q172  Alison Seabeck: You raised rail as one of the overlaps. Scenario: Reading signal box needs to be upgraded—very, very expensive; Mayor decides he does not want to spend the money there, given that he is going to potentially have powers over overground lines going into London, and he wants to upgrade Paddington Station for the same amount: who do you see acting as a broker in that position?

  Ms Haines: Reading Station is an interesting example because it is not a regional scheme, it is a national one, because it is not Reading it primarily affects; it is the South West—

  Q173  Alison Seabeck: It was an example, but if you had that clash?

  Ms Haines: I would say that one goes back to the Department for Transport, not to the Mayor for London. However, I take your point and there are other examples, and that is a real issue. I have to be honest and say I have not thought about a region with London at the head of it because London administratively is so separate from the rest of the South East, so I am not sure how else to answer your question.

  Chair: Thank you all very much for helping us to explore city regions in an amoeba-like way!


 
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