Memorandum submitted by CBI West Midlands
I write in my capacity as Chairman of the CBI
in the West Midlands regarding the Business and Enterprise Committee's
inquiry into the role of regional development agencies (RDAs).
Please feel free to contact me should I be able
to be on any further assistence in this matter.
Businesses in the West Midlands recognise the
role of the Regional Development Agency in driving the economic
development of our region, but there are questions to be raised
about how best it can optimise the effective delivery of its activities.
In a confusing environment—with many players
on the regional stage all contributing to major decisions—it
makes it difficult to measure the effectiveness of the RDA in
isolation.
That being said, a more streamlined structure—an
objective of the sub national review—is to be welcomed.
It can only be a good thing if it enables our RDA to place a greater
focus on delivering tangible results.
Currently, despite being told that the RDA is
"business driven", this would not be the perception
of many in the commercial sector in the region. It is our belief
that to overcome this the process of "streamlining"
must cover:
— people—to be truly business
driven the RDA needs to tap into the very best commercial skills
within the region. The RDA needs to continue to listen to the
business world more effectively and ensure that more business
expert/leaders are engaged on RDA boards. It also means more commercially
"able" people on staff.
— process—businesses find the
preoccupation of the RDA with consultation frustrating. The emphasis
must be on getting on with the job and delivering results.
Business needs and expects RDAs to make a real
difference on the ground. We must see results measured in terms
of making a difference to economic development and not in terms
of new initiatives set up, consultations taking place, and research
undertaken.
In considering the set of results listed by
our RDA it is evident that there is much output but it is often
difficult to measure tangible and quantifiable outcomes. For example,
our Economic Strategy has undoubtedly set us valuable targets
but it's own process isn't an end in itself. Likewise we have
several very valid initiatives including the Skills Action Plan,
but again we can't measure deliverables until the targets set
are reached.
Our RDA needs to be specifically engaged in
those areas which contribute most to our regional economy—skill,
transport and planning.
It seems obvious to suggest then that this is
where its focus remains, and that the RDA doesn't undertake activities
that may duplicate other inputs.
In considering the consequences of expanding
the RDA remit—businesses largely support the idea of a single
regional strategy "owned" by a single organisation and
it makes sense for the RDA to take on this role. Again—streamlining
is key—less is more—currently we have too many strategies
and bodies in place that seek to promote development across regional
areas—this remains confusing to many CBI members.
Under the umbrella of "accountability"
the proposals to grant a wide range of powers to the leaders'
forum are sobering. Businesses would be concerned to see such
a significant shift of influence away from the commercial sector
towards Local Authorities, as this would suggest a shift away
from the focus of economic development too. Such a move could
surely only impact negatively on the ability of the RDA to the
job it is supposed to do.
Lastly, businesses certainly feel that the "hands
off" approach from central government is welcome. Micromanaging
the RDAs will only ever result in a duplication of functions.
19 September 2008
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