Supplementary memorandum submitted by
the West Midlands Regional Assembly
1. INTRODUCTION
1.1 Thank you for the opportunity to provide
additional evidence to inform your oral evidence session with
Pat McFadden MP, Minister for Employment Relations and Postal
Affairs. This response reflects our initial thoughts following
the recent publication of the Government Response to the SNR Consultation.
2. SUB REGIONAL
COLLABORATION AND
ECONOMIC INVESTMENT
BOARDS
2.1 It is important to ensure sufficient
flexibility exists to allow local authorities to work together
as appropriate taking into account the differing needs of sub
regions. Although this approach will not provide neat boundaries
it will be more to be successful in addressing local and sub regional
needs. Such variable sub regional arrangements can only be managed
effectively by local authorities. One of the strengths of the
West Midlands is its pragmatic approach to sub regional working.
2.2 Clarification will be required regarding
the relationship between Economic Investment Boards and Integrated
Transport Authorities proposed by the Transport Act.
3. REFORMED REGIONAL
GOVERNANCE STRUCTURES
3.1 The enhanced role for local authorities
and joint ownership of the new regional strategy addresses the
major concerns regarding the democratic deficit at the regional
level. In the West Midlands we have made significant progress
towards joint governance arrangements with the establishment of
the Joint Strategy and Investment Board which is leading the preparation
of Regional Funding Allocation advice.
3.2 Significant work will be required to
develop governance and support structures in all regions that
make best use of available resources at the regional level including
the expertise of other stakeholders.
3.3 It is difficult to make more detailed
comments regarding the regional strategy when Government expectations
are still unclear. It will be essential that guidance promised
for January 2009 is produced within the expected timescale, something
that has been a major issue with the SNR process to date. The
joint roles in developing the strategy and delivery plan and in
monitoring will ensure the strategy has a sufficiently wide focus
while allowing Regional Development Agencies to focus on business
and economic development. It will be vital that existing Regional
Spatial Strategy revisions that are at an advanced stage are allowed
to be completed or be merged into the new single strategy. Without
this there is a danger of a policy vacuum in 2010 that could be
exploited by speculative development pressures as the recession
draws to an end.
4. IMPLICATIONS
FOR LOCAL
AUTHORITIES
4.1 The recognition of the valuable role
local authorities play in economic development is welcome. We
would urge that all aspects of the requirements for local authorities,
not just the new duty to carry out local economic assessments
are subject to a regulatory impact assessment.
4.2 The flexibility regarding membership
of the Local Authority Leaders Board is welcomed. It is vital
that the make up of this reflects both the varied needs and governance
arrangements in the Region. It will be important that this flexibility
is retained as transition plans are assessed and new governance
proposals submitted. We have however already made arrangements
to set up the Leaders Board, which has been meeting as the Regional
Forum of Leaders.
4.3 There is a degree of scepticism that
the new parliamentary accountability arrangements will provide
effective scrutiny of regional organisations and strategy. This
is due to the limited time available for detailed investigations.
However we will contribute as much as possible to supporting the
West Midlands Regional Select Committees.
5. REGIONAL DEVELOPMENT
AGENCIES
5.1 It is too early to comment on the extent
of delegation of decision making by Regional Development Agencies
and movement by them towards a more strategic role. This will
be considered as part of transition planning. There has been some
disappointment with the move from delegation of funding to an
investment planning approach however this has the potential for
greater success if there is a genuine commitment by regional bodies.
RDA's need to implicitly recognise that regardless of whether
economic delegation is mandatory or voluntary, it can only be
delivered effectively by local authority led sub regional partnerships.
6. ANY OTHER
COMMENTS
6.1 It is difficult to comment on the arrangements
for consultation as more detail will be provided in the guidance
(see paragraph 3.3) but we intend to build on the lessons from
the recent consultations in respect for the revised West Midlands
Economic Strategy and the Regional Spatial Strategy Phase 2. However,
a duty to engage and consult with stakeholders and communities
is welcome.
December 2008
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