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


Memorandum submitted by The Environment Agency

SUMMARY

  The Environment Agency welcomes the opportunity to respond to the Business & Enterprise Committee inquiry into the "future role and responsibilities of Regional Development Agencies" (RDAs). Through the reforms announced in the Sub-National Review (SNR), RDAs will have a more strategic remit in co-ordinating the development and delivery of Single Regional Strategies (SRSs), in association with Local Authority leaders forums and input from wider stakeholders. This presents a variety of opportunities and challenges, and the Environment Agency looks forward to working with RDAs in their evolving role.

  Our main points are summarised below:

    —  We believe the policy reforms enshrined within the SNR are a key opportunity to ensure that sustainable development is placed at the heart of regional planning, decision-making and subsequent delivery activity.

    —  The reforms should facilitate the much needed shift to sustainable economic development, ultimately leading to a more resource efficient and lower carbon economy. They should also ensure that future RDA interventions deliver a wider set of economic, social and environmental outcomes.

    —  As the RDAs take on a more strategic and less project based role, it is essential that they are able to conduct effective stakeholder engagement.

    —  We are concerned that RDAs may not have fully the capacity, in skills and resources, to discharge their new responsibilities. Expertise and champions for spatial planning, within the context of sustainable development, must be established at a Board and technical level. RDAs must also have access to expertise on key environmental issues including climate change.

    —  We are concerned that the proposed timetable for developing SRSs provides insufficient time for necessary environmental checks, including proper evidence gathering, appraisal and examination in public.

    —  New regional scrutiny and monitoring arrangements of RDAs must include an assessment of the extent to which sustainable development and climate change objectives are met. Defra should have a role in assisting Business Enterprise & Regulatory Reform (BERR) in setting the tasking framework and assessing how effectively RDAs are performing their functions.

    —  We believe that the existing RDA performance indicators must be revised to reflect their wider functions. The delivery of sustainable development and indicators which track performance in moving to a resource efficient/low carbon economy should be explicitly reflected within RDA targets.

    —  Overall the RDA tasking framework must drive an integrated approach to sustainable development, supported by leadership and a cultural shift throughout the organisation.

1.0  INTRODUCTION

  1.1  The Environment Agency is the leading public organisation for protecting and improving the environment in England and Wales. We work across all levels of government, with staff at regional and local level. We welcome the opportunity to respond to the inquiry into the role of RDAs.

  1.2  Our interest in the future role of RDAs is based on the potential implications for the environment and our ability to undertake our functions. This response is informed by our work at a regional and local level, and our direct involvement as a statutory consultee in the preparation of Regional Spatial Strategies, Local Development Frameworks, Strategic Environmental Assessments and on planning applications. Our comments are grouped under the main areas addressed by the inquiry.

2.0  MAIN COMMENTS

The need for a level of economic development/business/regeneration policy delivery between central and local government

  2.1  Spatial planning at a regional level provides an important bridge between national and local planning policy. It should help put planning policy within the context of a region's particular characteristics, including geography, population and environmental conditions. It plays an important role in addressing cross boundary issues, helping to make provision for critical infrastructure and should ensure sufficient environmental safeguards are established and maintained.

  2.2  We believe the policy reforms enshrined within the SNR are a key opportunity to ensure that sustainable development is placed at the heart of regional planning, decision-making and delivery. The proposals will bring about major changes to both regional bodies and policy. In particular, RDAs will become the Regional Planning Body. Government, (see Planning Policy Statement 1: Delivering Sustainable Development) has made clear that the statutory purpose of planning is to deliver sustainable development. Therefore as RDAs take over the regional planning function, they will have a crucial role in co-ordinating regional planning policy to plan for and facilitate sustainable development. This includes ensuring that development is planned in a way which successfully adapts to the unavoidable impacts of climate change.

  2.3  The SNR sets out an ambition for regional institutions and policy to focus on promoting economic growth. Whilst this is of course a central objective, we are concerned that it must be set in the context of accompanying social and environmental objectives. The aim must surely be to secure the best achievable sustainable development, rather than simply focusing on raising Gross Value Added (GVA). The reforms are an opportunity to drive England's response to climate change and this should not be missed through too narrow an economic focus.

  2.4  There now needs to be a fundamental shift in thinking which recognises that environmental sustainability is an essential component of economic development, rather than a constraint. For example, resource efficiency leads to enhanced business competitiveness ie reducing consumption of energy and water, and production of waste, and thereby cutting running costs. The policy reforms should facilitate the much needed shift to sustainable economic development, making the wider connections to achieving a low carbon, resource efficient economy.

  2.5  We welcome the SNR references to the need to move to a low carbon economy and efforts to define sustainable economic development, in particular the reference to environmental limits. In addition they should help ensure that RDA interventions on a policy and project basis (eg sector support programmes, physical regeneration activities etc) deliver a wider set of economic, social and environmental outcomes in an integrated way.

The effectiveness of RDAs and their role in adding value

  2.6  In some regions, for example in the South East, we have worked closely with RDAs and this has led to some positive results, such as on physical regeneration projects, as well as water and waste policy. Yorkshire Forward has also contributed to funding opportunities, providing around £3.5 million for flood defences around the Humber Estuary. It has also contributed financially to projects in Leeds, the Dearne Valley and North Yorkshire and has recognised the need for local investment in flood defences by contributing to the local levy. However, in other regions we have found it a challenge to establish an open dialogue and effective partnership working.

  2.7  Our experience in working with RDAs reveals that the degree of buy-in to the sustainable development agenda can be dependent on individuals which presents a risk to its widespread take-up. In taking forward the SNR reforms, it is clear that sustainable development needs to mainstreamed and embedded throughout the organisation.

  2.8  We also note the recent Environmental Audit Committee (EAC) report into Climate Change and Local Government. This highlights that local and regional Government sometimes face contradictory national messages on climate change. The Environment Agency reiterates the EAC recommendation that Government must minimise the inconsistencies between policies and ensure departments have a joined up approach to climate change.

  2.9  As the RDAs take on a more strategic and less project based role, it is essential that they are able to engage in effective partnership working and stakeholder engagement, through the ability to respond to a wider interpretation of sustainable development. We look forward to working in partnership with RDAs to help implement the SNR proposals and recommend that innovative methods of partnership engagement are considered.

  2.10  One option for enhanced partnership working is through secondments. These can help ensure a better dialogue between partners and an exchange of skills. For example, the Environmental Planning Manager in the Environment Agency Midlands Region will be seconded to Advantage West Midlands (AWM) to work in their SNR transitional team. We welcome this as a positive step forward and recognition of the need to bring in other stakeholders' expertise and guidance during the SNR transition process.

RDA expertise

  2.11  The EAC report into Climate Change and Local Government also highlights a concern that RDAs pay insufficient attention "to the economic risks posed by climate change impacts" and that regions "should have a strategic overview of climate change". This needs addressing when considering the future roles and responsibilities of RDAs. In addition we support their calls for the Government to review how the SNR addresses sustainable development and ensure that the opportunities it offers for improving local and regional co-operation on climate change issues are taken.

  2.12  We are concerned that RDAs may not have the capacity, in skills and resources, to fully reflect and discharge their new responsibilities. Expertise and champions for spatial planning, within the wider context of sustainable development, must be established at Board and technical level. RDAs also need to ensure they have sufficient expertise on important environmental issues, including climate change mitigation and adaptation. A key challenge remains in mainstreaming this expertise across RDAs, something that could be encouraged by the integration of environmental objectives for the organisation as a whole. Their more strategic role also requires RDAs to have the expertise and skills to facilitate effective stakeholder engagement.

  2.13  RDAs need to be well positioned to help facilitate the much needed shift to a low carbon economy. For example, this will require access to experts on renewables, resource (including energy and water) efficiency and waste minimisation. Where appropriate, the Environment Agency will seek to support RDAs for example in the provision of advice, information and data etc. We may also be able to input to sector specific projects which relate to our core activities and where we have a particular specialism. For example, environmental technologies (innovative fish pass design), food and drink (environmentally-benign agricultural practice), tourism and leisure (angling participation and fish stock improvement) and livestock (best practice).

The consequences of expanding RDA remit to include new functions

  2.14  There is potential that the RDA-focussed reforms could result in economic development being given a higher prominence, with environmental issues given (or perceived to be) a lesser priority. We are concerned that this may result in policy and/or investment priorities that do not adequately protect the environment or maximise opportunities for delivering genuinely sustainable development. As highlighted above, RDAs need to be equipped with the expertise to ensure they can discharge their new responsibilities effectively. More widely, a culture change is required to ensure that the new responsibilities are not just regarded as a "bolt on", but integrated throughout the entire organisation.

  2.15  As highlighted in our response to the recent SNR consultation, in principle we support the development of the national sustainability framework as a means of ensuring that SRSs take an integrated approach to economic, social and environmental issues. It is important that this sustainability framework is delivered sufficiently ahead of SRSs being developed, to ensure that it influences thier content and plans for delivery. It will also be important to test the SRS against the appropriate Regional Sustainability Framework, ensuring that different regional priorities are considered and accounted for.

  2.16  When considering the process for developing the SRS, it is important to give regional stakeholders sufficient flexibility to ensure the very necessary environmental checks are made. We are concerned that the proposed timetable for developing a SRS provides insufficient time to allow for proper evidence gathering, appraisal and examination in public. In their co-ordinating role, RDAs need to be given sufficient time to ensure that a meaningful Sustainability Appraisal/Strategic Environmental Assessment (SA/SEA) is conducted. This will avoid the potential risk of non-compliance with statutory SEA requirements.

  2.17  The SNR also proposes to devolve responsibility for allocating funding to Local Authorities. We are concerned that with the emphasis on promoting economic growth, there is potential for regional Sustainable Development and Climate Change expertise to be weakened. Safeguards must be put in place to ensure that at a minimum these are maintained, and ideally strengthened. This is likely to require financial support from central government departments.

  2.18  We are actively engaged with some RDAs on EU funding. This involves being present on high level committees and sub-groups. We welcome this partnership approach and believe this should be given a stronger emphasis in determining future arrangements for the delivery of EU funding. This will enable RDAs to utilise other organisation's skills and expertise to supplement their own. A subsequent challenge is to ensure that high level commitments to embed environmental sustainability in EU Funding schemes are delivered in practice.

The accountability of RDAs

  2.19  New regional scrutiny and monitoring arrangements of RDA performance must include an assessment on the extent to which sustainable development, climate change and wider environmental objectives are being met. A robust relationship with partners, to feed in their expertise and experience, is also vital. Regional Assemblies had access to a range of social and environmental partners whose expertise they could draw on to help scrutinise RDA performance. It is unclear how the proposed Local Authority leaders forums will precisely discharge their scrutiny responsibilities. Clarity also needs to be provided on how Regional Select Committees will interact with the region.

  2.20  As the lead department for delivering the Government's Sustainable Development Strategy (Securing the Future, 2005), Defra should have a role in assisting BERR in assessing how effectively RDAs are performing their functions, and making an appropriate contribution to the achievement of sustainable development. We also believe that Defra has a wider role in helping BERR set the RDA tasking framework and recruiting board members.

How performance has been measured in the past and will be in future

  2.21  Measures to assess RDA performance have largely been based on narrow economic development indicators. Examples include jobs created, brownfield land reclaimed and the number of business start ups. Performance indicators are critical to driving core activity and opportunities to take a more integrated approach, eg delivering projects in a way which maximises benefits for the local community and environment, may not always have been secured.

  2.22  We believe that the indicators on which RDA performance is assessed must be revised to reflect their wider functions. The SNR ambition to drive sustainable economic development should be explicitly reflected within RDA performance indicators. Measures to promote genuinely sustainable economic development cannot just focus on raising GVA. They must include a range of environmental and social indicators, including decoupling targets, a reduction in carbon footprint, alongside a specific reference to climate change adaptation. Concepts such as the Index of Sustainable Well-Being and Ecological Footprint may, in the long term, be used as measures of progress. Overall the RDA tasking framework must drive an integrated approach to sustainable development, supported by leadership and a wider cultural shift within the organisation.

  2.23  We believe the existing RDA purpose "to contribute to the achievement of sustainable development in the UK where it is relevant to its region to do so" is too weak. This duty should be strengthened to ensure that contributing to sustainable development is central to their emerging strategic role. This could be linked to the Government's four priorities for action on sustainable development: sustainable consumption and production; climate change and energy; natural resource protection and enhancement; and sustainable communities.

19 September 2008






 
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