Regional development agencies and the Local Democracy, Economic Development and Construction Bill - Business and Enterprise Committee Contents


Examination of Witnesses (Questions 340 - 359)

MONDAY 15 DECEMBER 2008

RT HON PAT MCFADDEN MP, MS PHILIPPA LLOYD AND MS BERNADETTE KELLY

  Q340  Chairman: I think there was a bit of irony in your answer just then, Minister.

  Mr McFadden: If you want to put together a list like that I think you always can. People can say, "We have got parish councils, district councils, county councils", and so on. You can always do that.

  Q341  Chairman: But we do know what they do. We are used to them.

  Mr McFadden: Well, that does not necessarily always make it right, just because you are used to them. I think you can always put together a list like that. It goes back to what you said to me about the boundaries. Some of this is permissive but what is the overall idea behind this? The overall idea behind this is to have local authorities and regional development agencies working together better than they previously have, particularly on the economic development front. One of the advantages of having a single strategy rather than the separate strategies that we have had in the past is that we have had the RDA with its job doing the business in economic development, good, that is fine, I think they do that quite well, but it has not been aligned with what the local authorities have been doing through the planning framework and so on which can have a major economic impact. There is a potential economic gain here in the overall aim of this. While, yes, you can list every body involved in this and say that all looks over-complex, in the end there is quite a simple idea behind this, which is to get the different bodies, who are not the national government but at a smaller level than the national government in a particular region, working together for the economic good of that region. It is quite a simple idea in the end and we are asking them to work together to produce a single strategy going forward 10-15 years which takes into account the main things that influence this in order to advance that. Yes, there is a list but it is a simple idea.

  Q342  Chairman: It seems to me if the EPBs did their job well they could replace the RDAs.

  Mr McFadden: That is another thing which slightly clouds this debate sometimes, that everybody thinks they lose if something else is set up. I will give you a more common example, which is this city region debate.

  Q343  Chairman: We are worried about that in Worcestershire.

  Mr McFadden: If cities are advancing does that mean that regions are losing? I think that is an odd way to think about it. Most of our major regions have got one or two cities that are key drivers of growth. I tend to think that the whole region benefits when a city drives forward, including many places round about the city. I do not see this debate as a zero sum game at all where every time somebody is given a responsibility somebody else loses, or every time a new body is set up it means everybody else loses. What we are trying to do here is get an architecture together that reaches that central prize I talked about, which is people at the sub-national level working to—

  Q344  Chairman: I do not want to labour the point because you made the point several times, but what I am talking here about is helping understand what on earth is going on, how decisions are being taken in the organisations that affect their lives economically. One of the complaints we often hear about RDAs is they spend their whole lives co-ordinating all the other bodies out there to have a say in the issue. There is an industry of co-ordination now and it seems to me that another mechanism is being added. I had forgotten about city regions, I am grateful to you for adding it to the list for me. It is another thing to liaise with and more meetings to be held and highly paid civil servants talking to each other about very desirable outcomes.

  Mr McFadden: In the end I think this is perhaps simpler than you suggest. This is about local authorities and the RDAs working together.

  Q345  Chairman: A minister can veto a local authority walking away from that, I do not quite understand that, but I am sure it is an issue I am sure we will get a note about. Can I just one other factual question about EPBs. Can they cross-regional boundaries? The EPB I would like set up in Worcestershire is Herefordshire, Worcestershire and Gloucestershire because we have three counties, the Three Counties Choir Festival, the Three Counties Agricultural Society. Can they cross regional boundaries?

  Mr McFadden: I do not see why not.

  Chairman: That would be helpful. That would be good news. Thank you for that.

  Q346  Mr Binley: I am beginning to see a nightmare on a big scale here, particularly in the relationship and working practices between the RDAs and LALBs. We have an Urban Development Corporation in my part of Northamptonshire, they are supposed to work with three local authorities and it has taken them two and a half years to produce a core strategy and it still is not out yet. This is the sort of problem I think you are creating. I just wonder how you see them working together. I wonder why you do not see the opportunity for division and dissent in this particular operation. I do not know to what extent this new arrangement will replicate regional assemblies quite frankly. You almost have the same thing back again in a different form and in a different name. I am, quite frankly, really very concerned about the future of my county and my so-called region on the basis of this particular relationship.

  Mr McFadden: In the end, whatever structure you have, if people do not want to work together or take part in it you cannot force these things. This is about a structure which we believe can add value. We have been round the list of bodies, who is taking part and so on. In any structure that deals with localities and regions, and the national government in the end, there are going to be a number of bodies involved. The success of it will be about the willingness of those taking part to work together for the benefit of their areas. I am a bit more optimistic than you—

  Q347  Mr Binley: Clearly!

  Mr McFadden: —that people do want to do that. There have been a number of examples of good cross-local authority working in the country. What we are trying to do through the sub-national review is to give a sharper focus to local authority emphasis on economic development and to bring together spatial issues with economic development issues in a way that has not been happening up until now. You took evidence from some RDA chairs at one of your previous meetings and they were telling you about the kind of clashes you can get where something might make sense economically and the planners say, "No, we have got a strategy that says you cannot do that". This should enable those issues to be talked through properly and sorted out.

  Q348  Mr Binley: You are a great optimist and I wish you well with it, but I am fearful. I think your background in politics might inject a little fear into your mind as well, quite frankly. Talking about the spatial planning responsibilities, what support will you provide to both RDAs and local authorities to undertake their responsibilities, for example, staffing a secretariat and so forth, understanding the cumbersome nature of the LALBs particularly in some of the areas we are talking about?

  Mr McFadden: My generous friends at CLG, apart from the answer to Mr Wright on the Economic Assessment Duty, have been funding regional assemblies. These bodies will not continue in the new set-up so funding that would previously have gone to them can go to support these new structures for some of the purposes that you have said.

  Q349  Mr Binley: I hear you talk about money but I do not hear you talk about management ability and therein lies the real problem. You can spend as much money as you like, Minister, but you know very well that unless you have got the skills and the right people doing the job, and I have not seen evidence that we do have that in our regional authority anyway, and we certainly have not got it in our local government cadre, unless you have got that expertise this job becomes even more impossible and I do not accept the answer is just about money.

  Mr McFadden: It is not just about money but you have got recruit the right people in any walk of life, I completely agree with that.

  Q350  Mr Binley: I wish you well with that one too. I think there is an awful lot of wishing going on here for this thing to work properly. Can you give an assurance to the private sector allay their concerns that additional planning responsibility will not dilute the RDAs' focus on the needs of business, particularly over the coming three years and particularly recognising that budgets are being cut?

  Mr McFadden: I talked to business a lot during the consultation period for the sub-national review. This is a reflection of the success of RDAs from a business point of view. They said, "We like the fact we have got an organisation here at the regional level which is business-led, is firmly focused on economic development and we do not want that to be diluted". I believe by combining the economic strategy with the spatial and planning work that will actually help business. If you ask any business person what one of their major frustrations is, they will often tell you that planning decisions do not seem to support economic development. That is one of the big gripes of business. By combining the economic strategy with the spatial strategy, I think that is an opportunity for economic gain and not one which will see a dilution in focus. I do not think that business will lose out from this, business has a great deal to gain from it.

  Q351  Mr Binley: You have made my very point. Can I suggest that you look at the performance of the West Northants Urban Development Corporation in terms of the sustainable communities' project and you will see exactly what I am talking about in terms of lack of progress, lack of involvement with the business sector, lack of support from the local community. If you get that at the level you are talking about this programme is doomed to failure and I do not want to see that happen.

  Mr McFadden: Would not those shortcomings that you are talking about be helped by making sure that the economic and spatial come together so you do not get that kind of gridlock?

  Q352  Mr Binley: But we have got that together because we are in the business of supplying jobs as well and it is not working. I just ask you to look at it and get a handle on that because you might find better ways of doing what you want to do. Can I ask the means by which Government will monitor statements of consultation and engagement with stakeholders to ensure that relevant interests are involved, because this has not happened in the rather smaller example of the working together process that you are talking about at regional level?

  Mr McFadden: I think it is section 69 of the Bill that asks those responsible for putting together the strategy, which is the RDAs and Leaders' Boards, to consult with the relevant bodies in their area. This was raised by a number of people during the consultation on the sub-national review. You mentioned business and they clearly want to and should be consulted, but they are not the only voice who should. There are environmental partners, social partners who should also be consulted. I think any region worth its salt is going to want to get buy-in to a strategy that is as big and as important for it as this and I believe they will do that and section 69 of the Bill asks them to do that. What we could have done, which we did not do, was produce a whole list of people you are supposed to consult with and ask them to go through a great tick box exercise. I think that would have been mistaken. Sensible people said, "Look, we will do this. Leave it to the regions to decide exactly how we do it, but we are used to working together in that way in our regions". That was the view that we took. Business and the other organisations I have mentioned should be consulted as part of the joining up of the strategy and I think they will be.

  Q353  Mr Binley: Let us talk about the consultation document. How confident are you that the strategy can be agreed within the timetable set in the consultation document? Could you update us on what the decision regarding whether statutory timetables are required will be made.

  Mr McFadden: We have set down our timetable and I hope organisations can meet that. Can I say before—

  Q354  Mr Binley: You hope!

  Mr McFadden: Can I say before we start that life does not always work like that, but we think it is a reasonable timetable.

  Q355  Mr Binley: My concern is all of this will make it drag. That has been one of the thrusts of my questioning to you. If it does, are you going to set a statutory timetable? Are you going to force this issue through?

  Ms Kelly: In advance of the Bill entering committee stage we are hoping to set out some further details about how we expect the policy to operate in a number of areas, including how this process for producing a single regional strategy will work. One of the things we are considering in that context is whether some form of timetabling, whether statutory or otherwise, would be sensible in order to make sure that we do achieve the objective in a streamlined and reasonably timely process. That is something we are setting out further policy on in advance of the Bill's later stages.

  Q356  Mr Binley: My final question, Chairman, you will be relieved to know. Can you give us some insight into the role and membership of the Examination in Public panels?

  Ms Kelly: Typically, the Secretary of State will appoint somebody who will chair the panel and typically it has been someone who—

  Q357  Mr Binley: That is a paid position, I assume?

  Ms Kelly: It is a paid position.

  Q358  Mr Binley: What sort of money is that? There would be a load of people in my area who want to know what sort of money that is.

  Ms Kelly: I would have to give you details on what the figures are, I am afraid, I do not have them to hand, but it is a paid position. Then relevant experts as well to support in the process of testing the evidence.

  Q359  Mr Binley: You must have thought about the structure of it already. Give me some idea how it might be made up? Where are you going to get the people from? Are you looking at it in terms of sectional interest, regional interest? How is it going to made up?

  Ms Kelly: This is not a new model, we already do Examination in Public on our regional spatial strategies.


 
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