Memorandum submitted by Royal Institution
of Chartered Surveyors (RICS)
ABOUT RICS
By way of background, RICS is the largest organisation
for professionals in property, land, construction and related
environmental issues worldwide. We promote best practice, regulation
and consumer protection to business and the public. With 140 000
members, RICS is the leading source of property related knowledge,
providing independent, impartial advice to governments and global
institutions.
RICS is uniquely well placed to offer its perspective
as the leading property professional body, required by its Royal
Charter to place the public interest at the core of all its activities
and ahead of its members' own interests.
KEY POINTS
— RDAs provide an effective delivery
mechanism between local and central government and should continue
in the future
— There needs to be clear demarcation
between the roles of national, regional and local government organisations
— RDAs have added significant value
through the programmes they have developed, innovative delivery
mechanisms and the skills and coordination they have brought to
understanding regional strategies
— There is an essential need for better
communication from RDAs so the action they are taking is better
understood, in particular by regional partners and stakeholders
— Problems with RDAs have occurred
in relation to the Rural Development Plan for England
— The inclusion of spatial strategies
and regional planning within the scope of RDAs has highlighted
particular issues with shortage of expertise on land use, planning
and built environment issues
— RDAs should have a presence in Brussels
but should utilise UK Trade and Investment for promotion to the
rest of the world
— RDAs must be accountable to a Regional
Ministers who should have sole responsibility for each particular
region, rather than balancing it with other ministerial responsibilities
THE NEED
FOR A
LEVEL OF
ECONOMIC DEVELOPMENT/BUSINESS/REGENERATION
POLICY DELIVERY
BETWEEN CENTRAL
AND LOCAL
GOVERNMENT
RICS believes that RDAs are providing an effective
delivery mechanism between local and central government. There
is a strong case for the coordination of regional and sub-regional
policy development and delivery to tackle issues which cross local
authority boundaries which RDAs provide a solution to. They are
also able to address the significant differences between local
economic and spatial issues which central or sub-regional approaches
would struggle to deal with.
Any attempts to get rid of them would be unwise,
particularly as no other model has been suggested. If the RDAs
did not exist then something else would have to take their place
as the work they undertake is too important to be decided by sub-regional
organisations and too complex to be decided by central government.
RDAs are able to deal with large structural and economic issues
that are beyond the resources of local authorities.
There does need to be clear demarcation between
the roles of national, regional and local government organisations.
In particular, national policy and funding needs to be effectively
translated into regional and local plans. These plans must then
be delivered locally and in particular at the sub-regional level.
This is essential for two main reasons:
— Local delivery can focus on local
needs. For instance, within the North West the needs of central
Manchester are very different from the needs of rural Cumbria
— Barriers and opportunities within
regeneration are usually local in nature
The importance of RDAs has been shown by them
bringing a much needed focus to regional regeneration that would
have been beyond the ability of local authorities. Numerous bodies
operate within the field of regeneration and the importance of
the RDA is that it is able to coordinate these groups and deliver
a regional viewpoint. It is essential that regeneration in particular
continues to be driven by regional and local needs rather than
policy decided in London alone.
RDAs operating outside London should be focussed
on bringing together stakeholders who are essential to the economic
prosperity of the region through Single Integrated Regional Strategies
(SIRS) if they are introduced as part of the sub-national review
process. To support these strategies, RDAs must be more ambitious
in devolving responsibilities and delegating functions to local
authorities as a way of bringing stakeholders together. However,
the process for developing and signing SIRS needs to avoid setting
up potential conflicts of interest in delivery.
THE EFFECTIVENESS
OF RDAS
AND THEIR
ROLE IN
ADDING VALUE
RDA performance can vary from agency to agency
and from project to project so it is difficult to come to one
clear view on their effectiveness. In many cases the RDAs have
added significant value through the programmes they have developed,
innovative delivery mechanisms and the skills and coordination
they have brought to understanding regional strategies. They also
have the capability to pull together resources to provide one
pot funding and the associated leverage that would not be available
otherwise.
Chatham Maritime and the Portsmouth Heritage
Area are good examples of how RDAs have added value through pump
priming and providing confidence to private developers. There
has been a similar positive experience in the West Midlands where
Fort Dunlop and Longbridge are two examples of how the public
sector has been able to act as the initial prime mover and catalyst
for regeneration. Capital investment through the RDA has also
helped the physical regeneration of North Staffordshire to progress
at a pace that otherwise would have been unthinkable.
There is an essential need for better communication
from RDAs so the action they are taking is better understood,
in particular by regional partners and stakeholders. RICS is concerned
that community stakeholder interaction may actually start to decline
if the regional assemblies are abolished as proposed under the
sub-national review. The RDAs must start to consider how they
will engage with an effective stakeholder group and must be prepared
to fund the administration of such a group.
Specific issues have arisen with the RDAs that
have been assigned lead roles covering a particular sector with
the aim of giving regional stakeholders the opportunity to influence
government policy formulation and delivery. We have particular
concerns about the lead role of the East Midlands Development
Agency (EMDA) on construction issues. One of their key responsibilities
is maintaining strong national relationships with key external
partners. RICS believe that EMDA has insufficiently engaged with
the industry and has therefore only had a limited impact in raising
the profile of the industry.
Other problems with RDAs have occurred around
the Rural Development Plan for England (RDPE). Although it has
been recognised that the first two years of the programme were
taken up with basic formalities such as agreeing monetary allocations
and parameters, we are now in the third year and little action
has been taken. Severe delays have affected the process and although
the European Commission did not approve the programme until December
2007, RDAs should have been ready to go when approval was given.
In rural Lancashire, delivery will finally commence
in April 2009 despite the scheme starting in January 2007. Although
the blame cannot be laid entirely at the RDA's door, there have
been ongoing discussions between the RDA, Defra and sub-regional
government. Throughout this period Lancashire has seen almost
no rural intervention.
RDA EXPERTISE
There is generally a high level of expertise
on the policy side of RDAs but this is not as evident when it
comes to practical expertise or delivery. RDAs were originally
set up as business led organisations and while the voluntary sector
and local government have a role to play, high quality business
leaders are essential. There should be increased consultation
with the private sector and more representatives of business should
be brought in to work with RDAs.
The potential inclusion of spatial strategies
and regional planning within the scope of RDAs has highlighted
particular issues with shortage of expertise on land use, planning
and built environment issues. Chartered Surveyors have expertise
in all these areas and work across all aspects of RDA activity
in the private and public sectors so would be able to offer skills
and expertise.
The sub-national review currently proposes to
abolish the regional assemblies and if this happened the vital
role for community stakeholders and their expertise will be lost.
There must be certainty for stakeholders if these changes are
adopted and they must be given a clear role with well funded and
managed structures in advance of the possible transfer of powers
in 2010.
The RDAs could look quite different by 2010
and they need to carefully plan to ensure that they have the skills
and capacity to deliver. With a changing role in terms of becoming
more of a commissioning body than a delivery body the RDAs must
ensure that they have both the right structure and expertise to
do this effectively. Of equal importance to expertise, RDAs need
to ensure that their Chairmen, Boards and Executives have a shared
ambition for the future and the necessary skills and capabilities
to work effectively with partners in the region.
THE EXTENT
OF, AND
NEED FOR,
THEIR OVERSEAS
ACTIVITIES
RDAs are responsible for significant amounts
of inward investment and in particular EU funding. As such it
seems reasonable that they should each have a presence in Brussels.
This is also important to allow them to make effective representation
to EU decision makers and lobby on behalf of their regions. There
is less of a case for RDAs to have representation beyond the EU.
UK Trade and Investment co-ordinates activity of this type of
activity across the world and RDAs should use this mechanism to
represent their regions. Wherever RDAs are represented abroad
they must be aware of the cost of this work and the public perception
that it is made up of junkets for minor bureaucrats.
The consequences of expanding RDA remit to include
new functions, as proposed by the sub national review, including
the delivery of EU funding
RICS support measures that bring together economic
development with housing, planning and transport issues but are
concerned that RDAs are not currently well placed to perform their
proposed new functions on regional planning. Bringing spatial
strategy into the remit of RDAs would lead to greater cross-border
awareness, cooperation and action between regions. It must be
recognised that regional borders are artificial and do not necessarily
reflect patterns of social and economic activity.
Any potential expansion of powers provides the
opportunity for some standardisation of certain elements of the
RDAs and in particular the sharing of best practice. Although
each RDA will have to have some different approaches based on
the specific local environment this should not mean that they
automatically do things differently. This would make it easier
to build relationships with external stakeholders who often struggle
to understand the complex differences from one region to another.
Any additional work for RDAs must be matched
with adequate resource allocations and it is currently not clear
how this will happen. There will also be greater confusion about
controls from national government. RDAs may have to work with
responsibilities to and regulations from different departments
including CLG, BERR and Defra. This will create difficulties in
policy development and delivery.
THE ACCOUNTABILITY
OF RDAS
RDAs are currently accountable to a series of
central government departments and Parliament and it is proposed
under the sub-national review that this will transfer to local
authority forums, regional select committees and Regional Ministers.
There would be difficulties in transferring
accountability to local authorities who receive funding and strategic
direction from the RDAs. This would be considered a clear conflict
of interest in other areas. The key line of accountability should
be to the relevant Regional Minister who should in turn be accountable
to Parliament. Regional Ministers should have this as a specific
task and should not hold another Ministerial position which could
interfere with their regional role.
To improve accountability there must be more
openness and transparency around RDA structures, activities and
performance. There is a role for stakeholders to play as an independent
third party or critical friend. It is essential that mechanisms
are put in place to allow this contribution, particularly after
the changes suggested in the sub-National Review.
HOW RDA PERFORMANCE
HAS BEEN
MEASURED IN
THE PAST
AND WILL
BE MEASURED
IN THE
FUTURE
There is a tension between outputs and outcomes
for RDAs with outputs being easily recorded but difficulties in
recording actual outcomes. This can be shown by schemes in Castleford
and Sheffield City Centre where place making has been at the heart
of public sector intervention. Although the attractiveness of
investment and quality of life have improved it is difficult to
record exactly how much improvement there has been. RDAs and local
authorities both need to explain their interventions better and
what outcomes are being achieved.
There should be greater distance between Government
Offices/Regional Assemblies and the RDA, although some scrutiny,
particularly from Regional Assembly committees has led to changes
in RDA policy and activity. Going forward, RICS would like to
see the establishment of an Independent RDA Inspectorate which
is accountable to BERR.
In terms of measuring RDA performance, the Government's
2007 SNR document established 5 outcome focussed performance indicators
which should be the basis for future action:
— GVA per hour worked as a measure
of productivity
— Employment rate showing proportion
of the working age population in work
— Basic, intermediate and high level
skills attainment to show skill levels.
— Regional expenditure on R&D as
a proportion of GVA as a measure of innovation
— Regional business start-up rate as
a measure of enterprise.
These would appear to be very good Performance
Indicators to adopt from an economic standpoint however there
needs to be something to act as a balance and give focus to the
RDA in pursuance of its future spatial planning responsibilities.
RECOMMENDATIONS
— RDAs operating outside London should
be focussed on bringing together stakeholders who are essential
to the economic prosperity of the region through Single Integrated
Regional Strategies (SIRS) if this procedure is introduced
— The practice of RDAs taking a lead
role on a specific sector must be addressed
— Land use, planning and built environment
skills must be boosted ahead of RDAs taking responsibility for
these areas
— There must be a clear structure for
the transfer of community stakeholder expertise when regional
assemblies are abolished
— Regional promotion outside the EU
should take place through UK Trade and Investment
— Any additional work for RDAs must
be matched with sufficient resources
— The key line of accountability for
RDAs should be the relevant Regional Minister
— An independent RDA Inspectorate should
be established which is accountable to BERR
19 September 2008
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