Memorandum submitted by East Midlands
Development Agency
The East Midlands Development Agency (emda)
welcomes the opportunity to contribute to this Inquiry into the
role and effectiveness of RDAs. This submission complements the
joint RDA submission (also being presented to the Committee) by
providing information on emda's role, achievements and
impact.
Early independent evaluation findings show that
emda has had substantial positive and ongoing impacts on
the performance of the East Midlands economy.
emda provides strategic economic leadership,
drawing together the partnerships required to deliver the region's
economic aspirations set out in our Regional Economic Strategy.
emda has a strong track record in developing
unique and innovative solutions, helping turn places that the
market has failed into economic success stories.
emda has successfully levered in £285m
of private sector investment into physical regeneration during
the last three years alone.
emda's business-led approach means that
we are flexible, fleet of foot and able to make difficult decisions
in responding to economic opportunities and challenges.
emda has tailored successful emergency
help to local companies and their workers hit by unexpected economic
shocks.
emda is excellent value for money, delivering
efficient and effective programmes and initiatives.
emda has consistently achieved its goals—against
a backdrop of ongoing efficiency savings.
Since 1999-00 emda has:
— created or safeguarded 68,036 jobs;
— created or supported 63,108 businesses;
— assisted 85,921 people with their
skills development needs; and
— remediated 1,494 hectares of brownfield
land.
INTRODUCTION: EMDA
AND THE
EAST MIDLANDS
The East Midlands, like a number of regions
in England, has been hit hard in the past by periods of industrial
re-structuring. As a result it has experienced a significant decline
in traditional heavy industries, such as coal, steel and large
scale manufacturing. Whilst the most significant changes took
place in the 1980s and early 1990s the effects are still visible
today, in both the region's major urban centres and its rural
hinterlands.
In the last decade the performance of the region
has improved in relation to a number of key indicators. The region
has grown rapidly in both economic and demographic terms. The
East Midlands is the fourth largest of the nine English regions,
and has a population of 4.3 million people and more than 160,000
businesses. Challenges remain and emda continues to work
with private, public and third sector partners to ensure that
our shared economic objectives for the region are realised. If
current trends continue, the East Midlands will experience the
fastest population growth of all English regions, growing by 10.5%
between 2006 and 2016.
emda's total budget for 2008-09 is £173m.
1. The need for a level of economic development
and regeneration policy / delivery between central and local government
The joint RDA response to the Committee highlights
a number of issues in relation to this area of the Inquiry: critical
mass; cross-boundary working; tackling market failure at the most
appropriate level; ensuring a tailored and flexible approach;
and delivering economies of scale and providing specialist resource.
These issues are equally relevant from an East Midlands perspective.
The East Midlands economy is now worth some
£74 billion per annum—and, as such, is larger than
the Czech Republic, Hungary, Hamburg and Berlin. Again, as detailed
in the joint RDA response, many economic development, regeneration
and infrastructure-related issues (including labour markets, housing
and transport) do not respect administrative boundaries—these
key issues are often most effectively pursued on a cross-boundary
basis. In addition, the East Midlands shares a border with five
other regions—requiring us to work effectively with neighbouring
RDAs and other partners in order to deliver a coherent response
to economic challenges and opportunities, at the right spatial
level.
2. The effectiveness of the RDAs and their
role in adding value
Early independent evaluation findings show that
emda has had substantial positive and ongoing impacts on
the performance of the East Midlands economy.
emda provides strategic economic leadership,
drawing together the partnerships required to deliver the region's
economic aspirations set out in our Regional Economic Strategy
(RES).
emda utilises its resources, expertise
and flexibility to deliver truly innovative solutions and deliver
economic success.
EMDA'S
ECONOMIC IMPACT
In 2005 emda became the first RDA to
commission a comprehensive and independent programme of impact
evaluation. This three-year programme assessed the impact of emda's
work from April 1999 to March 2007 on companies, communities and
the economy of the East Midlands and was undertaken by a consortium
led by ECOTEC Research and Consulting.
Provisional findings from this evaluation have
demonstrated that emda has had substantial positive and
ongoing impacts on the performance of the East Midlands economy.
These impacts are expected to provide an on-going contribution
to the regional economy and cover both emda projects and
national programmes that have been delivered by emda. These
findings will also form part of emda's contribution to
the national RDA impact evaluation project currently being undertaken
by Pricewaterhouse Coopers (PwC), on behalf of BERR, and will
be subject to further review by PwC.
EMDA'S
STRATEGIC IMPACT
— emda has demonstrated strong
leadership and engaged effectively with stakeholders on key strategic
and policy issues.
— emda is viewed as an effective
advocate of regional interests.
— emda has successfully influenced
the policy and investment decisions of regional and national organisations.
— emda has levered substantial
resources from partners.
— Innovation has been a strong feature
of emda's work, with a range of initiatives attracting
national attention and being replicated in other regions.
2a. Providing strategic leadership
The RDAs' key role in providing strategic economic
leadership centres on the development and championing of their
respective Regional Economic Strategies (RESs). These long term
strategies are based on comprehensive evidence and identify the
challenges and opportunities ahead. emda has invested significantly
in the capacity required to undertake economic analysis and policy
development. As a result, we have produced a Regional Economic
Strategy fully grounded in analysis. As noted in the National
Audit Office's Independent Performance Assessment (IPA) of emda,
"the Evidence Base, developed in house, is detailed and
comprehensive, and is well regarded by partners and stakeholders
alike, many of whom use it as a reference to produce programmes
and strategies for the region". We also use our extensive
links with business to provide timely assessments of economic
conditions in the region, a capability that is particularly significant
in the current economic climate.
The current RES sets out a "flourishing
region" vision. Progress towards this vision is measured
through a Regional Index of Sustainable Economic Wellbeing (ISEW).
This allows us to adjust standard measures of economic progress
to take account of factors such as: the value of voluntary work;
the costs of pollution; the quality of the natural environment;
and the costs of crime. The RES vision and the concept of the
ISEW captured the imagination and support of partners in the region.
It also worked well alongside our comprehensive consultation process,
which targeted both regional stakeholders and, for the first time,
members of the public. These factors helped to ensure significant
partner engagement and buy-in to the delivery of the RES.
At the national level, emda has led RDA
engagement in national policy development (as "lead RDA")
in a number of significant policy and delivery areas:
Manufacturing—emda is the lead
RDA on issues relating to manufacturing policy and support and
for relations between BERR and EEF, the manufacturer's organisation.
emda represents RDA interests in the Ministerial Advisory
Group (MAG), which guides BERR and DIUS in the development of
the Government's Manufacturing Strategy. In this role, emda
has led activity to engage the RDA network and a wide range of
regional business representatives in the policy debate to inform
the new Government strategy, Manufacturing: new challenges,
new opportunities (September 2008). emda also represents
the regions on the High Level (Enterprise and Manufacturing) Task
Force, which was established to jointly oversee the implementation
of the Government's Enterprise and Manufacturing Strategies. We
have also played a key role in shaping a wide range of delivery
initiatives including the Manufacturing Advisory Service (MAS).
We represented the regions on the MAS Development Board from 2005
to 2007, and have coordinated the subsequent roll-out of programme
enhancements by the RDAs. We have coordinated MAS policy development
with BERR since 2007 and, since April 2008, emda has managed
the MAS network on behalf of BERR. emda is also responsible
for the monitoring, reporting and development of MAS performance
across the UK. We also assisted in the development of the National
Manufacturing Skills Academy (NMSA), which was launched in January
2007.
Europe—emda leads the RDAs' engagement
in a range of European policy, funding and lobbying issues. emda
has led the RDAs' involvement in a range of policy-related activities,
including the English regions' contribution to the Lisbon Agenda
(of jobs and growth) and the future of EU Cohesion policy. Through
emda's leadership, the RDAs shaped the future of EU funding
delivery in England for the 2007-13 period, including the agreement
to transfer the management of the European Regional Development
Fund (ERDF) programmes from the Government Offices to the RDAs.
This complex and challenging transfer required us to work closely
with central government and the European Commission and took place
on 31 January 2008, when a Statutory Instrument came into force.
The effective implementation of the programmes continues to be
a significant focus of our European lead role activity.
International Trade and Investment—A key
feature of the role is ensuring close collaboration between RDAs
and UKTI, ensuring we maximise our shared impact. We co-chair,
with UKTI, an International Business Development Forum, which
also includes the Devolved Administrations, and so ensure a joined
up approach. emda led RDA engagement in the joint RDA/UKTI/DA
review of UK Representation Overseas, which reported earlier this
year. This highlighted the importance of RDAs continuing to operate
alongside UKTI in overseas markets in order to maintain the UK's
strong inward investment performance, but with UKTI playing a
greater coordination role.
Construction—emda led RDA engagement
in the development of the national Sustainable Construction Strategy
(June 2008) and are now leading RDA activity to support its implementation.
We have also co-ordinated RDA support for innovation in construction
through the simplified business support offer and a range of other
initiatives.
2b. Leading responses to economic shocks
emda is the natural leader to bring regional
partners together to respond to economic shocks. Our strong links
with central government, our business-led Board and extensive
business engagement enable timely and flexible responses, helping
businesses survive and re-orientate. Key examples of effectiveness
include:
— In 2001 emda brought together
a grouping of public and private sector partners to form a taskforce
to address large scale redundancies in the region's aerospace
sector, including Rolls Royce and its associated supply chain,
following the market downturn in the aftermath of September 11th.
In 2003, emda established the Pan-Business Redeployment
Programme. This provides pre-redundancy support and skills development,
and ultimately aims to redeploy skilled engineers to fill recruitment
shortages in engineering elsewhere in the region. For an investment
of £2m this project has assisted over 2,500 people under
threat of redundancy and helped retain key engineering skills
within the region. The success of this approach is one on which
we intend to build as we move into a more challenging economic
climate.
— In 2002-03, we helped the farming
and food sectors, and local communities, cope with the aftermath
of Foot and Mouth. During and immediately after the outbreak,
emda delivered a Rural Recovery Fund worth £2.2m.
The fund provided support to over 270 non-farming businesses across
a wide range of sectors whose viability was threatened by the
restrictions applied during the outbreak, ensuring that the vast
majority of those businesses were able to continue successfully
after the outbreak.
— In 2007 we played a significant role
in supporting the recovery of communities and businesses affected
by flooding in Nottinghamshire and Derbyshire, through the the
Flood Relief Grant Scheme: a scheme that was in place and accessible
to businesses within days of the floods. Just over £270,000
was provided in grant aid to 161 businesses. These grants provided
much needed financial aid to cover costs associated with the flooding
such as: loss of earnings; property damage; damaged stock; and
damaged machinery/equipment.
2c. Highly effective and flexible delivery
emda operates very successfully at the
sub-regional level working with, and through, Local Area Agreements,
Local Authorities, Urban Regeneration Companies and emerging Economic
Development Companies.
In 2001 emda commissioned and agreed
to fund seven Sub-regional Strategic Partnerships (SSPs). These
bring together businesses, public sector, voluntary and community
groups to tackle the distinct needs of their local areas. From
2002 onwards, emda has allocated Single Programme funds
to our SSPs and in 2008-09 just under £50m worth of investment
will be directed and prioritised by SSP Boards. Over the past
3 years, SSPs have successfully levered over £100m from other
partners, created 10,000 new jobs and 900 new businesses, and
helped 13,000 people develop their skills.
The joint RDA response also notes the proven
track record of cross-regional partnership working in a variety
of settings. For example, in 2007, emda and Advantage West
Midlands worked together to spearhead the Midlands Energy Technologies
Institute (ETI) Consortium. This succeeded in its bid to attract
the ETI to the East Midlands. The ETI is a £1bn public-private
partnership to develop and deploy energy technologies fit for
a low carbon economy. The consortium also included the universities
of Birmingham, Loughborough and Nottingham, and regional businesses
such as E.ON, Rolls-Royce, Caterpillar, Toyota, and Alstom. These
private sector partners have collectively pledged £15m per
year for the next ten years towards the Institute, to be matched
by Government funds. Effective cross-border working allows us
to build partnerships to meet distinct market need, without the
constraint of geographic boundaries.
2d. Translating national policy into regional
delivery
emda is an effective intermediary between
Central Government and the front-line delivery of economic development
and regeneration policies. We have influenced the formation of
a wide range of national policies, recent examples include the
Innovation White Paper and the UK Manufacturing Strategy. We have
also demonstrated the ability to improve delivery of national
initiatives—a good example being emda's delivery
of the Business Link service.
emda was the first RDA to directly manage
its Business Link service, putting in a new streamlined regional
delivery model and reducing the number of sub-regional service
providers from five to one. As a result, back office costs were
consolidated allowing investment in customer facing staff to increase
by a third. emda has also made improvements in the consistency
and quality of the services that are being delivered and despite
the period of transition, customer satisfaction has remained at
90%.[126]
In addition, emda has successfully anticipated the future
direction of national policy by aligning the delivery of Train
to Gain, UK Trade and Investment (UKTI) activity and the Business
Link service, as well as integrating support for social enterprises,
land-based businesses and resource efficiency measures.
Our business-led Board has enabled us to work
extremely effectively with the private sector to proactively address
business needs. A good example of this was the development by
emda of the first Regional Venture Capital Fund in 2002.
Working with the then Department for Trade and Industry (now BERR),
£30m of new capital was secured for investment in small businesses
in the East Midlands. A major component of the funding package
was secured from a number of East Midlands local authority pension
funds, with emda playing a vital role in building a business
case for this investment. This innovative solution helped address
specific problems identified by the region's business community
in relation to access to finance for small and medium-sized companies.
In developing a new scheme to help aspiring entrepreneurs raise
finance for their business ventures, emda has managed to
lever in over £750,000 from the former Phoenix Fund and created
a significant regional fund called EnterpriseLoans East Midlands.
This is now worth some £5.8m and is delivered by First Enterprise
Business Agency Limited (FEBA).
3. RDA expertise
emda provides specialist economic development
and regeneration know how—delivered through an effective
mix of public and private sector expertise.
emda is a competent and efficient programme
delivery body which utilises effective project appraisal processes
to ensure that better value for money is achieved.
emda has a strong track record in developing
truly unique, and innovative solutions which have been highlighted
as national examples of best practice.
emda has an effective mix of public and
private sector expertise (both at Board level and within the main
body of our staff) and has the specialist economic development
and regeneration capacity necessary to deliver against the breadth
of our responsibilities. emda is a competent and efficient
programme delivery body, delivering unique and effective solutions
and utilising effective project appraisal processes to ensure
that better value for money is achieved.
Delivering unique and innovative solutions—emda
has a strong track record in developing unique and innovative
solutions, many of which have been highlighted as national examples
of best practice.
The blueprint limited partnership is a property
regeneration partnership that delivers new solutions for regeneration
in the East Midlands. It is a 50:50 public-private partnership,
bringing together emda, English Partnerships and Morley
Fund Management's igloo Regeneration Fund. The Partnership was
formed in 2005. Investment, ownership, risk and profit are shared
equally between the public and private sector. It was developed
to kick-start development in the region by levering in private
sector funding and expertise. Crucially it seeks to remediate
and develop land that would not be commercially viable for private
sector developers to take on in isolation. Since 2005, £21.5m
of funding has been levered in from the private sector (£17m
equity investment, and £14.5m of bank debts). Blueprint has
received numerous awards including: the East Midlands Property
Deal of the Year Award in 2005; "highly commended" finalist
in the 2007 Regeneration and Renewal magazine award for Regeneration
Partnership of the Year; and more recently named Developer of
the Year at the 2008 Midlands Property Awards. Consequently, it
has attracted considerable interest from within the UK and further
afield.
BioCity was established in 2002 and is a joint
venture between emda, Nottingham Trent University and the
University of Nottingham to develop the bioscience and healthcare
cluster within the East Midlands. BioCity is a major success story
for the region and offers flexible tenancy agreements designed
to meet the requirements of small start-up and fully established
businesses. emda played a key role in this process by forging
a partnership between the Higher Education sector and the growing
biomedical, healthcare and environmental sectors. emda
has invested a total of £8.2m in BioCity and, to date, BioCity
has created over 350 knowledge-based jobs, replacing those lost
with the closure of the old BASF facility. In addition, companies
at BioCity have raised over £25m investment funding in 4
years. Finally, BioCity has also attracted the UK National Micro
and Nanotechnology Network (Eminate) centre, along with international
investment from USA, Canada, Germany, Denmark, Australia and Japan.
The National Audit Office received very positive
feedback from partners and stakeholders on the role of emda
in regenerating the former coalfields area through the National
Coalfields Programme (NCP). Since 1999 emda has managed
the operation of projects within the NCP. This programme is successfully
transforming some of the region's most deprived communities into
thriving economic places. emda has got work moving on a
number of sites in the East Midlands that had lain untouched for
many years, and has done so in a technologically innovative manner.
Notable examples of NCP projects include:
— Sherwood Energy Village is a mixed
use development that has created a diverse industrial and commercial
base. emda led on this project, working closely with English
Partnerships, to secure funding from the NCP to remediate the
91 hectare site and also contributed £5m to support its redevelopment.
The project demonstrates innovative redevelopment using cutting
edge technologies in sustainable construction, including the UK's
largest system of sustainable urban drainage which has attracted
international interest. Sherwood Energy Village won the first
ever Enterprising Britain award in 2005.
— At Avenue Coking Works, emda
has taken one of the most highly polluted sites in Western Europe,
and, working with partners, has undertaken one of the most complex
on-site remediation treatments ever carried out in the UK. This
work has attracted significant international attention (from China
and other countries) with the site now used to demonstrate best
practice in sustainable technologies. emda's approach has
been an exemplar in using cutting edge technology and engaging
a wide and diverse set of partners at an early stage to meet the
challenges faced in terms of capacity and environmental management.[127]
The agency's approach to community consultation and involvement
in this project is also recognised as a model of best practice,
with regular newsletters, events, a bespoke website, contact with
affected households, and the involvement of local schools.
4. The extent of, and need for, RDA overseas
activity
Overseas representation has enhanced the East
Midlands inward investment offer, and is crucial to maintaining
the UK's position as the number one destination in Europe for
inward investment.
Our approach is reaping real benefits. In 2007-08,
the region saw an increase in foreign companies investing in the
East Midlands for the fourth year running.
The average annual salary of new jobs created
through inward investment successes is 11% higher than the average
gross annual salary for the East Midlands.
When the RDAs were established in 1999, they
took over regional inward investment budgets and have continued
to work in partnership with UK Trade & Investment (UKTI) to
attract, grow and retain Foreign Direct Investment (FDI) in the
regions. To help promote inward investment to the region, emda
has representation in several key overseas markets. In North America
and Asia, emda and Advantage West Midlands collaborate,
thus sharing costs to promote the "British Midlands".
Our overseas representation adds significant
value to the UK's and the East Midlands inward investment offer.
emda's overseas representatives work closely with UKTI
overseas posts, and this collective and coordinated effort has
been an important factor in maintaining the UK's position as the
number one destination in Europe for inward investment.
Our approach is reaping real benefits. In 2007-08,
the East Midlands saw a total of 88 international investment project
successes leading, in total, to 5,960 new or safeguarded jobs,
and an increase in companies investing in the East Midlands for
the fourth year running. Of these, emda directly secured
37 international investment project successes with an associated
4,254 jobs created or safeguarded. 32 (86%) of these projects
were from overseas markets where we have offices or representation.
27 (73%) of these projects are classed as knowledge driven, demonstrating
that we are attracting and retaining innovative and high value
companies.
For the new jobs created in 2007-08, the average
annual salary of £29,076 is 11% higher than the average gross
annual salary for the East Midlands, demonstrating how important
inward investment is to the regional economy. This very much reflects
our strategy which is focused on attracting high-value companies
that will bring good-quality, well-paid and interesting jobs to
the region. Examples include:
PepsiCo Ltd—Following a pan-European
search for a new R&D facility to support their manufacturing
operation, US-owned PepsiCo announced in 2007 they would be retaining
their R&D facility in the UK and investing £15 million
in a brand new PepsiCo Technical Centre of Excellence in Leicester,
safeguarding 175 existing jobs. The centre will provide state
of the art pilot plants and laboratories to enhance and support
new product development.
Kabushiki Kaisha M-TEC—a Japanese Motorsport
company; established MUGEN EURO Co. Limited, a wholly owned UK
subsidiary in July 2007. The UK business will be engaged in R&D,
testing and production of racing and high performance engines
and other automotive technologies, creating 12 new jobs. This
investment complements existing regional strength in motorsport
related R&D and manufacturing.
5. The consequences of expanding RDA remit
to include new functions, as proposed by the SNR, including the
delivery of EU funding
emda welcomed the original proposals
outlined in the SNR but we feel that focus has shifted from its
original objective—to improve sustainable economic growth
in all the English regions.
SNR implementation should protect and enhance
the benefits of the business-led RDA model, ensuring that we remain
fleet of foot, take managed risks, and maximise private sector
investment and leverage.
emda consistently does "more with
less"—successfully taking on additional responsibilities,
whilst exceeding targets, and delivering efficiency savings.
We welcome the opportunity to play a full and
proactive role in the implementation of the SNR and fully support
the move towards a Single Integrated Regional Strategy (SIRS).
However, SNR implementation must retain a clear focus on its original
objective, which was to improve sustainable economic growth in
all the English regions.
It is imperative that SNR implementation protects
and enhances the benefits of the business-led RDA model. Business
leadership of RDAs, clear decision making based on our capacity
and expertise in key areas, and our financial flexibility have
been critical factors in the progress we have made in developing
regional economies to date. The role and contribution of business
and private sector leverage were significantly underplayed in
the March 2008 consultation document, Prosperous Places,
both in terms of engagement at the regional strategic level and
in economic development activity at the local level. The proposals
failed to identify the opportunities and incentives for private
sector engagement, something which is critical, especially in
these more challenging economic times. emda strongly believes
that we need to remain fleet of foot, take managed risks, and
maximise private sector investment and leverage. Maintaining the
right balance and calibre of private sector involvement in our
Board is a crucial part of this.
There are significant challenges within the
governance model described by the SNR, including the pivotal relationship
between the RDA and local government. It is accepted that these
arrangements should be agreed region by region, but clarification
of the relationship between the RDA Board (including the role
of the RDA as the Regional Planning Body) and the Local Authority
Leaders' Forum is required. A number of business representative
organisations have expressed similar concerns. For example, the
Institute of Directors' SNR response noted that current proposals
risk "the threat of diluted business input and a bureaucratic
governance model. The governance structures (chiefly the local
authority leaders' forum) are unworkable, undesirable and unhelpful.
If RDAs are to take on the responsibilities that have been proposed,
then such frameworks must be systematically redesigned to avoid
the policy "logjams" that would occur".
RDAs have taken on considerable and growing
responsibilities since their inception. emda has done this
effectively and efficiently, whilst also continuing to exceed
our targets. Where we have taken over responsibilities from other
public bodies we have consistently delivered efficiently, reducing
administration costs relative to delivery resources. We have also
made significant improvements in terms of the effectiveness and
quality of programmes and services, bringer a stronger regional
coherence and providing better value for money.
The transfer of the management of the ERDF programmes
from the Government Offices to the RDAs is not part of the SNR
proposals, but was part of a general push to better align European
and domestic funding in support of regionally agreed priorities.
emda became formally responsible for the region's ERDF
programme in January 2008 and worked hard to ensure that better
strategic alignment and impact can be delivered alongside streamlined
processes and efficiencies. It should be noted, however, that
the regulations that guide ERDF funding, and its associated structures
(including separate Programme Monitoring Committees), are significant
issues in terms of the effective integration and alignment of
the programmes with existing RDA process and practice, as well
as presenting emda with a number of governance challenges.
6. The accountability of RDAs
emda is accountable nationally to Ministers
and Parliament, and regionally to our Board and partners.
emda is currently scrutinised at the
regional level by the East Midlands Regional Assembly.
emda welcomes proposals for strengthening
parliamentary scrutiny of RDAs, however, we must ensure that any
new arrangements avoid unnecessary duplication and the consequent
potential overstretch of RDA resources.
The joint RDA submission to the Committee sets
out the current accountability arrangements for RDAs. emda
is accountable to Ministers and Parliament through the Secretary
of State for BERR and, as with all RDAs, our annual performance
report and annual accounts are laid before Parliament. We also
appear before Parliamentary Select Committees and answer Parliamentary
Questions. At the regional level, we are held to account by our
Board, which includes a mix of business, senior local authority,
community, trade union and academic leaders. We are also held
to account by our regional partners and this happens in a variety
of ways: through consultation exercises, attendance at partner
meetings and our Annual Public Meeting.
Whilst we welcome the proposals for strengthening
parliamentary scrutiny of RDAs, it will be important to ensure
that any new scrutiny and accountability arrangements for the
regions are both effective in their scope and reach, and avoid
duplication.
In addition to the points raised in the joint
RDA submission regarding the creation of Regional Select Committees,
it is also important to highlight the need for clarity over the
distinctive roles of parliamentary and regional (local authority-led)
accountability arrangements. It will be essential to avoid unnecessary
duplication and the consequent potential overstretch of RDA resources.
The accountability process should be mindful of what is being
scrutinised at the regional level when considering the remit of
the parliamentary arrangements—this will ensure that arrangements
are complementary and proportionate.
Current regional scrutiny of emda by
the East Midlands Regional Assembly is underpinned by a Scrutiny
Protocol. This forms a joint contract between all partners involved
in this process, which ensures that all partners understand their
shared responsibilities, and the outcomes of the scrutiny process.
It also ensures that Scrutiny Reviews are realistic, and remain
focussed on what is reasonable and achievable, whilst also ensuring
that they have sufficient impact to promote effective change.
7. How RDA performance has been measured and
will be measured in the future
Since 1999, emda has consistently achieved
all core output and expenditure targets.
emda was judged to be "performing
strongly" by the NAO—with 22 points from a possible
24.
emda operates with a low cost base, with
employment costs of less than 6% of expenditure in 2007-08, and
has consistently exceeded efficiency targets, as agreed with BERR.
7a. Exceeding our targets
emda's performance has been measured
against a framework, primarily based on operational outputs set
by Government, which has evolved over time. We have delivered
our targets year on year and a table summarising the outputs achieved
is at Annex A. Since 1999-00, emda has:
— Created or safeguarded 68,036 jobs;
— Created or supported 63,108 businesses[128];
— Assisted 85,921 people with their
skills development needs[129];
and
— Remediated 1,494 hectares of brownfield
land.
A significant element of the IPA assessment
process focused on our performance against the objectives set
in the 2005-8 Corporate Plan. The final report from the NAO noted
that: "emda has made substantial progress against its
Corporate Plan, its own Critical Success Factors and its targets
against the PSA Framework".
The IPA awarded emda 22 points from a
possible 24—with emda judged to be performing strongly.
This reflected a particularly strong assessment of emda's
achievements to date.
7b. Delivering efficiencies
It is important to reiterate that these achievements
were delivered against the backdrop of efficiency measures required
by all RDAs in terms of their administration budgets.
In 2007-08, the final year of the three year
efficiency programme based around the Gershon review, emda
exceeded the target of £9.4m, and achieved £14.8m savings
across the year. This was achieved by re-contracting the delivery
of a range of support activity without compromising on output
achievements, and by levering in private sector funding to assist
in the re-development of brownfield sites through blueprint. It
should also be noted that emda operates with a low cost
base, with pay costs at less than 6% of expenditure in 2007-08.
7c. Increasing focus on outcomes and impact
As set out in the joint RDA submission to the
Committee, there is now a greater focus on outcomes and impact,
following the introduction of the new RDA Sponsorship Framework
in April 2008. This move supports the desire to be able to make
assessments of the RDAs' individual and collective contribution
to regional outcomes and the Regional Economic Performance Public
Service Agreement. The RDAs and BERR have adopted a common impact
evaluation framework and the RDS Impact Evaluation Study currently
being delivered by Pricewaterhouse Coopers, on behalf of BERR,
will provide an assessment of the impact of the RDAs and is expected
to report at the end of November 2008. As set out in section 2,
emda became the first RDA to commission a comprehensive
and independent programme of impact evaluation back in 2005.
In summary, our early independent evaluation
findings show that emda has had substantial positive and
ongoing impacts on the performance of the East Midlands economy.
emda provides strategic leadership, drawing
together the partnerships required to deliver the region's economic
aspirations set out in our Regional Economic Strategy. emda
has a strong track record in using a business-led approach to
develop unique and innovative solutions, helping turn places that
the market has failed into economic success stories.
emda's business-led approach means that
we are flexible, fleet of foot and able to make difficult decisions
in responding to economic opportunities and challenges. This is
an approach that has also levered-in significant private sector
investment. emda has also successfully tailored emergency
help to the needs of local companies and their workers hit by
unexpected economic shocks.
emda is a competent and efficient programme
delivery body which utilises effective project appraisal processes
to ensure that better value for money is achieved. As new responsibilities
have been acquired, emda has consistently delivered more
with less.
19 September 2008
126 Source-Business Link Customer Satisfaction Survey. Back
127
National Audit Office, Independent Performance Assessment
(2007), p. 19. Back
128
8,921 businesses created and 54,187 businesses supported-to note
that the output achievements for business creation are from 2002-03
onwards and 2005-06 for businesses supported-see Annex A for full
details. Back
129
Output achievements for assisting people with their skills development
are from 2002-03 onwards-see Annex A for full details. Back
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