Appendix 1:Government response
Introduction
We are grateful to the Committee for its inquiry
into the East Midlands Development Agency (emda) and the
Regional Economic Strategy (RES). We have considered the Committee's
comments carefully and provide our responses to each of its conclusions
and recommendations below.
Recommendation 1
We hope that political disagreements regarding the
establishment of Regional Committees will be resolved and look
forward to welcoming opposition Members to the East Midlands Regional
Committee. We welcome the establishment of the East Midlands Grand
Committee. (Para 2)
Response
We agree with the Committee. Regional select committees
are a vital means of holding regional agencies to account. We
believe that the regional select and grand committees that have
taken place so far have demonstrated the value of robust debate
at the regional level.
Recommendation 2
The East Midlands Development Agency (emda)
has a key role in driving and co-ordinating regional economic
development. We notice that witnesses have expressed varying levels
of awareness of its role in the region. We urge emda to
improve its marketing and communication in order to further awareness
of its role, and to make businesses better aware of the support
it can provide, particularly during the current economic climate.
(Para 10)
Response
The Regional Economic Cabinet, chaired by Phil
Hope, Regional Minister will continue to encourage emda's
regional partners to work with emda to help raise awareness
of all the help that is available to people, communities and businesses.
Recommendation 3
emda
was originally established to provide strategic economic leadership
in the region. Since its establishment it has taken on a large
number of additional responsibilities and has moved away from
its original strategic role, becoming responsible for the delivery
of a number of grants and European Regional Development Funds.
We note the concerns raised by witnesses that this may cause emda
to lose its business focus and urge it to ensure it remains intent
on its economic focus. (Para 16)
Response
Additional responsibilities were added following
strategic reviews by Government. We are confident that emda
has the capability and capacity to deliver its new role. emda's
overall objective remains to help to achieve the Regional Economic
Performance Public Service Agreement target, which is crucially
important in the current climate. There was widespread recognition
in the sub-national review consultation that an integrated regional
strategy to promote sustainable economic development was the right
way to go. RDAs will work in conjunction with Local Authority
Leaders' Boards to deliver this, allowing them to share experience
and capacity.
Recommendation 4
emda's
board members are chosen by Ministers in the Department for Business,
Innovation and Skills. We note that they are chosen on an individual
basis and not as representatives of organisations in the region,
and so are not formally providing sectorial and wider expertise
for emda. With increased responsibility within the region,
emda's remit is now significantly broader than the area
overseen by the Department for Business, Innovation and Skills.
We recommend that the Regional Minister should now take the lead
role in board appointments, and should consult with stakeholders
in the region and the full range of relevant Government Departments.
(Para 24)
Response
In accordance with the Commissioner for Public
Appointments Code of Practice the final decision on whom to appoint
rests with the Minister for BIS. The Commissioner stipulates the
level of involvement in her Code for the Regional Minister. In
line with this, the Regional Minister is consulted on the specification,
asked to put forward names of potential applicants as well as
giving advice to the Minister on the strongest candidate to appoint
in the posts to be filled, based on merit.
Regional stakeholders are invited by the relevant
Government Office to participate in the consultation exercise
on key documents and asked to offer names of any potential candidates.
Recommendation 5
The first Regional Economic Strategy for the East
Midlands in 1999 set an ambitious target for the region to be
a top-20 region in the EU by 2010. We congratulate emda
on its work towards that goal, commend its regional priorities
and fully support its continued vision and ambition for the East
Midlands to be a flourishing region by 2020. (Para 28)
Response
We agree that emda should be
congratulated on its record of success and the progress made towards
the vision of the first RES. We also welcome the recent independent
evaluations that show the positive impact of the work
emda carries out within the East Midlands.
As the Committee states the two evaluation reports
state that emda adds significant value to the
region's economy. The lower estimate (by PWC) concludes that for
every £1 spent by the RDAs, an average of £4.50 of economic
output (or GVA) was put back into the regional economies, while
the Ecotec report puts the figure at around £9. Both reports
provide evidence of the vital role the emda and the other
RDAs play in driving forward economic performance.
We would re-iterate that whilst emda
is responsible for leading on the RES, the whole region has a
responsibility to see it delivered. Government will therefore
continue to support the strong partnership work that is required
to achieve the vision for a flourishing region by 2020.
Recommendation 6
The Regional Economic Strategy (RES) is owned by
the region, and emda alone cannot achieve its objectives.
It is therefore vital that key partners are brought in early to
develop the RES, ensuring that they feel they have an investment
in working towards the region's goals. While some sectors have
spoken of the close working relationship they have with emda,
there is a perception that it did not consult sufficiently with
some key sectors, such as micro businesses, trade unions and the
environment sector, and some witnesses felt they were involved
at too late a stage. We urge emda to establish and maintain
improved relationships with key partners in the region, whilst
continuing to make use of the strong links it already has with
many sectors. (Para 36)
Response
We agree with the Committee regarding the importance
of consulting and engaging with a wide range of partners. However,
in response to the criticisms made by partners we would point
out the positive nature of the recent independent assessment (by
the National Audit Office) of emda's approach
to consultation and partnership working.
The 2007 Independent Performance Assessment noted
the wide and inclusive consultation process that emda
ran for the Regional Economic Strategy and agreed that "the
innovative approach adopted has paid off … the majority of
partners and stakeholders we spoke to and contacted felt that
they had played a role in the development of the RES and that
their suggestions had been listened to and acted upon." [ref
p. 6 IPA 2007]
It also noted that "emda
has a good reputation for engendering partnership working …
emda is perceived as a much more mature organisation in
terms of its own partnership working and that it is very good
at bringing others to the table and helping other organisations
work together". [ref p. 7 of 2007 IPA]
We would point out that whilst some of the concerns
raised during the Inquiry relate to engagement during the formulation
of the RES, emda is now looking forward with
its partners to arrangements that will be needed to develop the
new Regional Strategy. emda is already planning—with
the Leaders' Board—how it will engage with stakeholders
in developing the Regional Strategy and held a well attended stakeholder
event in July this year to begin this process. Whilst it will
be important for emda and the Leaders' Board to build on
what has worked well in the past, the nature of a single integrated
strategy means it is right to take stock and consider what will
work best for the region in the future.
Government is confident that the approach taken
will be in line with its guidance, which has clearly stressed
the importance of engagement with stakeholders. The current Local
Democracy, Economic Development and Construction Bill sets out
a requirement for RDAs and Leaders' Boards to prepare, publish,
keep up to date and comply with a statement of their policies
on involving those persons who appear to them to have an interest
in the Regional Strategy. Draft guidance makes it clear that Government
expects 'involvement' to include the opportunity to engage and
participate in shaping the Regional Strategy and we are confident
that emda, with the Leaders' Board, will take
account of the Committee's comments when considering how to comply
with these requirements.
As well as a role for emda, we
suggest there is also a role for regional partners to ensure that
they are well organised and able to engage effectively with emda.
We also recognise that Government itself has a role to play and
acting through the Government Office for the East Midlands we
will provide constructive support and challenge to emda,
the Leaders' Board and their partners wherever possible.
Recommendation 7
The range of data and statistics that emda
has to gather is immense. While we acknowledge the large evidence
base used by emda to underpin the current RES, which it
commissioned from academics and universities, we urge emda
to utilise fully the expertise and knowledge of its regional partners
on data collection and analysis. We also urge emda to examine
its procedures so that emda can make informed decisions
based on accurate and timely data. This should ensure that emda
uses a variety of sources of information and analyses, not
just the large evaluation studies it commissions. (Para 42)
Response
We agree that there is a clear need for emda
working with the Local Authority Leaders' Board to engage with
its partners to develop a credible, robust and timely evidence
base for the new Strategy and for its wider business decisions.
We agree that the new Regional Strategy requires collaboration
with an even greater range of partners than the RES.
We believe emda is well placed
to deliver here, given its existing expertise on research and
intelligence and track record of working closely with partners
on developing and sharing intelligence and information, for instance
through Intelligence East Midlands.
We note that emda has recently
published an updated RES evidence base for consultation and is
seeking views from all stakeholders in the region in order to
ensure that this is the best possible evidence base for informing
future work. This will be an important building block as partners
move towards an evidence base for the single regional strategy
and GOEM is encouraging regional and local stakeholders to respond
to the consultation. emda is also working closely with
the Regional Assembly on the evidence base in use for the partial
review of the Regional Spatial Strategy.
We also note the work that emda
is undertaking to support local authorities in the region to prepare
for the proposed duty to carry out a Local Economic Assessment.
Subject to the passage of the Local Democracy, Economic Development
and Construction Bill, this duty will be introduced for county
and unitary authorities from April 2010. emda has been
meeting regularly with these councils for the last year, offering
support and seeking agreement for ways in which the local assessments
can contribute to the regional evidence base. This will provide
a 'bottom-up' view and increase the range of information and evidence
that emda and the Leaders' Board take into account as they
begin work on the single regional strategy.
Recommendation 8
emda
was the first Regional Development Agency to commission an independent
evaluation of all its activities and we welcome its findings.
This was a ground-breaking piece of work carried out by Ecotec
and highlighted the significant impact emda has had on
the region. We are also reassured by the conclusions of the National
Audit Office and PricewaterhouseCoopers reports, and all provide
a positive endorsement of emda's work and its benefits
to the regional economy. (Para 49)
Response
We agree with the committee in welcoming the findings
of the evaluation and the approach that emda
has taken. The Department for Business, Innovation and Skills
has used the work carried out in the East Midlands to inform the
approach taken for the national evaluation of RDAs that reported
in March this year.
Please refer to our response on recommendation
5 as regards the value added to the regional economy by emda.
We also note that emda is already
putting to use the evaluation findings in informing its decisions
about future priorities and spending, which will help it become
even more effective.
Recommendation 9
emda
has taken positive and effective steps to provide support to business.
We are concerned to hear from witnesses that awareness of Business
Link and its services is not as good as it should be. We urge
the Government, working with emda, to improve its marketing
and advertising in the region, to ensure that businesses are aware
of the services they can access. (Para 59)
Response
We are aware that emda will respond
direct to the Committee on its own marketing plans. We agree that
the wider Government family also has a role. Nationally, there
has been significant progress made during the last two years in
bringing greater clarity to the business support that is funded
by Government. The new Solutions for Business portfolio of 30
business support products delivers on the Government commitment
to reduce around 3,000 different products to less than 100, responding
to business requests for simplification. Business Link now forms
the gateway for all publicly funded business support.
At the regional level, emda had
already simplified its business support offer, from almost 400
schemes in 2006 to less than 50 in 2009 and is now working with
local authorities and others to align its products under the national
Solutions for Business brand.
Turning to the Real Help Now package of support,
the Regional Minister Phil Hope has regularly tasked members of
his Regional Economic Cabinet to promote the support that is available
and they have responded positively to these calls. The Regional
Economic Cabinet has come together around the principle that public,
private and third sector partners all share responsibility for
supporting the region through the recession and in preparing for
the upturn. We welcome the steps partners have taken to assist
emda in promoting the available support.
However, regarding the services that Business
Link provides, we would bring to the Committee's attention the
latest performance figures that show high levels of satisfaction
with Business Link in the region (90% for 2008-09). Targets for
business contact have been exceeded—82,165 businesses and
pre-start-up individuals were in contact with Business Link last
year. By merging previous county-based providers, the service
has also made an increase of 40% in the number of front-line advisers
following significant back-office efficiencies. Whilst there is
always scope for improvement, we do not agree with the Committee's
view that the Business Link service is 'not as good as it should
be'.
Recommendation 10
We welcome emda's focus on regeneration schemes
in order to create and safeguard jobs during the current economic
climate. (Para 67)
Response
We agree with this comment and note that emda
is already working closely with the new Homes and Communities
Agency as well as existing partners on regeneration schemes that
will ensure continued benefits for the region.
emda has also
been part of discussions commissioned by the Regional Minister's
Regional Economic Cabinet about infrastructure. This has enabled
regional partners to keep priorities and opportunities under review,
as well as work together to overcome barriers creatively.
Recommendation 11
emda
has responded quickly and positively to the current economic situation.
They have worked hard to support business in the region, and we
urge them to continue to work with banks in order to make them
aware of what support is available and to urge banks to assist
companies as appropriate. We note the concerns surrounding the
European Regional Development Fund and encourage emda to
examine the process to make it easier to access. (Para 71)
Response
We agree that emda deserves credit
for the way it has responded to the recession. It meets regularly
with the banks through the Regional Risk Finance Forum and Government
is confident that it is working hard to improve levels of lending
and address other access to finance issues.
We understand that emda will
respond directly to the committee regarding the European Regional
Development Fund. Through GOEM, Government will work with emda
to provide any support that it requires to review the processes
in question. The GOEM Regional Director chairs the regional Programme
Monitoring Committee and will continue to report to central Government
regarding emda's management of the ERDF programme.
However, we would remind the committee of the
need to ensure that agreed processes are followed and all funding
requirements laid out by the European Commission are met. We understand
that this can sometimes lead to matters taking longer than partners
would like, but this is far preferable to risking the region losing
out if money has to be repaid. Government is pleased that emda
is taking its responsibilities seriously, a view supported by
the Chair of the Regional Assembly, Cllr David Parsons CBE, who
described emda as 'incredibly competent' in oral evidence
given to the committee.
Recommendation 12
emda
needs to work with timely and accurate data on which to base decisions
in the current economic climate and we urge them to improve the
collection and analysis of data and to work with regional partners.
(Para 72)
Response
The response to recommendation 7 sets out our
view regarding emda's work with partners on evidence
and data in general. emda makes use of official data sources
and its evidence base was assessed and peer-reviewed by a team
of researchers and independent academics to ensure it provided
an accurate portrait of the region.
With regard to its work during the economic downturn,
emda has played an active role in the Regional
Economic Cabinet, where it has worked with regional partners to
provide the Cabinet with an up to date picture of the regional
economy. It has provided similar information on a monthly basis
to the national Council of Regional Ministers. Government is satisfied
that emda draws on a wide range of sources to ensure its
view of the economy is up to date but it will continue to support
emda in looking for ways to improve and incorporate alternative
sources of data, where that data can be shown to be robust.
Recommendation 13
We welcome the Single Programme Grant in Aid which
allows emda to effectively influence regional economic
priorities and gives greater flexibility to manage the available
resources. However, its effectiveness is harmed by the reduction
in its budget. These reductions can be at short notice which affects
expenditure already allocated. It has also been affected by the
removal of the ability to carry-forward its budget. We recommend
that emda has no further reductions in its budget in order
to enable it to take strategy decisions for the good of the region
on a stable and agreed budget. We also recommend that emda's
ability to carry-forward its budget is reinstated. (Para 83)
Response
We have issued RDAs with indicative budgets for
2010-11 to inform their planning for that year. However, the Government
cannot give firm commitments in relation to RDAs' future budgets.
The RDAs' budgets enable them to deliver important
investment in programmes and projects focused on economic development
and the RDAs are key to the delivery of Government policies in
these areas. We expect key decisions about the RDAs' spending
to be made in the context of the next Spending Review and following
consultation between RDAs and Government Departments.
The take up of end year flexibility (EYF) is subject
to normal Treasury scrutiny on the basis of need and realism,
and the wider fiscal position. BIS will work with RDAs and HM
Treasury to review the RDAs EYF position in the light of these
requirements.
Recommendation 14
It is vital that projects receive funding in a timely
manner and that emda is able to respond to changing economic
circumstances. We have received assurances from emda that
they process requests as quickly as possible. However, they are
hampered by state aid rules which ensure that the system is inefficient.
We urge the Government to re-examine the Treasury Green Book and
recommend that the process regarding state aid rules are streamlined.
(Para 87)
Response
The Green Book itself refers only to the need
to ensure that proposals comply with state aid rules and the need
to ensure that competition effects are properly taken into account.
The Green Book supplementary guidance on the Market effects of
subsidies published by the Office of Fair Trading and HM Treasury
provides guidance on how to assess whether a proposal is likely
to have a significant effect on competition and, if so, how to
incorporate this into appraisal of a proposal. It does not specify
a detailed process for dealing with state aid rules.
Recommendation 15
We fully support the production of a single integrated
strategy, allowing better alignment of policy in the region. We
look forward to emda and the Local Authorities Leaders'
Board establishing a good working relationship and to the production
of the region's first integrated strategy. (Para 94)
Response
We welcome the Committee's support for the Government's
introduction of single integrated regional strategies. Phil Hope,
Regional Minister, and Rosie Winterton, Minister of State for
CLG and BIS, have held positive meetings with key partners including
emda, EMRA and local authority leaders. emda,
the East Midlands Regional Assembly and the Shadow Local Authority
Leaders' Board are collaborating well to develop plans for delivering
on their new duties as proposed by the Local Democracy, Economic
Development and Construction Bill (LDEDC). Government will continue
to provide the support and challenge required to help the region
get there.
Recommendation 16
We are concerned that the abolition of a regional
assembly removes a dedicated and knowledgeable regional scrutiny
body. We are also concerned that this removes a formal mechanism
for stakeholder engagement. We welcome emda's efforts to
develop mechanisms in the region to ensure that the involvement
of regional partners in policy decision making is maintained and
look forward to emda's report at the end of the year. We
will revisit the issue of regional accountability once the Assembly
has been disbanded and any new arrangements are in place. (Para
101)
Response
We believe that the new parliamentary arrangements
in the form of regional select and grand committees, the new regional
governance arrangements flowing from the Sub National Review and
existing departmental performance controls do provide scope for
effective scrutiny. Nonetheless, we are aware that alternative
models have been proposed, including by EMRA. We will therefore
work with relevant government departments and regional partners
to examine the case for enhanced scrutiny and how new legislation
and regulations can enable any flexibility in the region. Government's
aim will always be to secure arrangements that achieve proper
scrutiny of public expenditure but do not go too far and become
an unnecessary burden that has the effect of impeding the effective
delivery of public services.
Recommendation 17
We understand the concerns expressed by witnesses
over the lack of clarity for sub-regional arrangements. We look
forward to clarification from emda. (Para 105)
Response
Sub-regional Strategic Partnerships (SSPs) have
been delivering sub-regional economic development activity at
a local level in the East Midlands since 2003. The Sub National
Review indicated an expectation that RDAs would delegate funding
directly to Local Authorities. In line with the spirit of the
SNR, the emda Board agreed, in September 2007,
to contract sub-regional activity directly with the 9 Unitary
and County Authorities (9Cs) from 2009-10. This has been received
by the region's Local Authorities with enthusiasm, as it assists
with the process of embedding economic development into local
areas' plans and strategies.
From 1st April 2009, emda commenced
its new contractual arrangements with all Unitary and County Councils
in the East Midlands, with the exception of Derbyshire County
Council and Nottingham City Council. The majority of SSP activity
and staff has now transferred into the Local Authorities. The
annual allocation to the Local Authorities and remaining SSPs
is approximately worth £44m in 2009-10.
The specifics of the new arrangements are detailed
below.
Derby and Derbyshire Partnership (DDEP SSP) will
continue to manage sub-regional arrangements until the 1st November
2009, from this date the County Council will take over all staff
and activity in the Derbyshire County Council area.
Derby City has a direct contractual relationship
with emda for sub-regional economic delivery
activity. Derby City Partnership commissions all Derby City's
economic development activity.
Greater Nottingham Partnership (GNP) will continue
to deliver sub-regional activity in Nottingham City and the conurbation
area in 2009-10. Negotiations with the City are progressing well
and it is envisaged that an agreement with the City will be in
place by the end of 2009. In which, GNP SSP staff and activity
will be transferred to the City or the proposed Economic Development
Company in 2010.
- Nottinghamshire County Council
Nottingham County Council has a direct contractual
relationship with emda for economic development
activity. The Alliance (ASSP) staff and activity transferred to
the County on the 1st April 2009 and commissioning activity is
undertaken by Nottingham County Council.
- Leicester City Council and Leicestershire
County Council
Both Councils have a direct contractual relationship
with emda, with the City acting as the accountable
body. Leicestershire Economic Partnership (LSEP SSP) staff and
activity transferred to the City from the 1st April 2009. The
Councils have established an Economic Development Company to deliver
activity in line with the City and County's priorities for economic
development.
- Lincolnshire County Council
Lincolnshire County Council has a direct contractual
relationship with emda for economic development
activity. Lincolnshire Enterprise (LE SSP) staff and activity
has transferred to the County Council. Commissioning activity
is undertaken by Lincolnshire County Council.
- Northamptonshire County Council
Northamptonshire County Council has a direct contractual
relationship with emda for economic development
activity. The County has decided to continue with Northamptonshire
Enterprise Limited (NEL SSP) for 2009-10 and will be reviewing
this arrangement in 2010-11.
Rutland County Council has a direct contractual
relationship with emda for economic development
activity. The Welland SSP activity has largely transferred to
Rutland and Leicestershire County Councils. Rutland County Council
has employed most of the Welland SSP staff and will commission
economic development activity directly.
Recommendation 18
We were disappointed that emda's presentation
did not mention equality issues, and their success or otherwise
in fulfilling their duty to promote equality. We would have liked
further analysis assessing the impact of their programmes, and
of economic change, on diverse communities in relation to race,
gender, disability, socio-economic background and other areas
covered by the duty. (Para 110)
Response
We understand the emda will respond
direct to the Committee on this issue. We believe that emda
does in fact have the systems in place to deliver on its equality
duty, and that emda had not included equality issues in
its evidence only in order to direct the evidence it did offer
to the questions asked direct by the Committee.
Recommendation 19
emda
has a statutory responsibility to contribute to sustainable development.
While we congratulate emda on its work towards sustainable
development, we are not convinced that it is embedded as a priority
within all aspects of the organisation. We are concerned that
there is no requirement to have environmental expertise on emda's
board. We recommend that the Department for Business, Industry
and Skills and the Regional Minister examine the criteria for
appointment on emda's board and seek to include representation
from the environmental sector. (Para 115)
Response
Currently Board members are assessed against their
knowledge and experience of environmental issues however all appointments
are on merit against all the criteria in the person specification.
We are content that there is expertise within
emda on sustainable development issues, but will
of course expect to see this demonstrated by the development of
a new Regional Strategy with a strong commitment to sustainable
development.
Recommendation 20
We are concerned that no one body takes the lead
on sustainable issues in the region. We urge further discussion
in the region to establish whether that is a role best suited
for emda or another body. We also encourage that this discussion
revisits the need for the establishment of a sustainable champion
in the region, similar to that already established in other regions
in England. (Para 116)
Response
There are no plans to revisit the discussion given
the clear recommendation from the recent consultation on delivering
sustainable development in the region. However, we will expect
emda, the Local Authority Leaders' Board and
its regional partners to ensure that sustainable development is
embedded in the Regional Strategy and in partners' subsequent
delivery plans.
Recommendation 21
We congratulate emda for leading the development
of the Regional Index of Sustainable Economic Welfare, and its
incorporation into the Regional Economic Strategy. We look forward
to its further development to give greater emphasis to environmental
indicators. We are concerned that the emphasis on economic indicators
and the need to demonstrate economic impact for every environment
project is detrimental to emda's ability to deliver sustainable
development. We recommend that the Government use the Regional
Index of Sustainable Economic Welfare as an alternative to the
traditional GVA-only measurement of the RDA's economic performance.
(Para 124)
Response
RDAs are tasked to raise the sustainable growth
rate of their region's economy. When appraising possible investment,
RDAs are asked to consider environmental and social impacts alongside
economic outputs.
Any metric used to measure the RDAs economic performance
needs to be consistent with the Government national and regional
economic policies aims, and needs to be transparent and robust.
Recommendation 22
We welcome the responsibility contained in the Local
Government, Economic Development and Construction Bill to ensure
a single regional strategy based upon sustainable development.
We recognise emda's concerns but urge them to continue
to work towards sustainable development in the region. (Para 128)
See responses to recommendations 19-21 above.
Recommendation 23
We agree that the interests of rural parts of the
East Midlands should be a mainstream concern for emda.
However, this should not mean that rural areas do not receive
targeted resources. emda must also ensure that its support
is suitable for areas that are "semi-rural", with towns
and villages interspersed with countryside, and that such areas
do not fall through the gaps. (Para 133)
Response
The Government does not prescribe how emda
should divide its resources between urban, rural and semi-rural
areas in the region. Our policy is that equitable account is taken
of the needs and interests of all parts of the community, including
rural and semi-rural areas, in developing and delivering policies
and deciding on spending priorities. emda is a key partner
and contributor to the East Midlands Rural Affairs Forum, and
has been actively involved in the development of the Rural Action
Plan.
The mainstreaming of rural interests does not
preclude the targeting of resources at areas that most need it.
For example, the Department for Environment, Food and Rural Affairs
(DEFRA) is devolving around £60m of Rural Development Programme
for England (RDPE) funding to emda over the period
to 2013 to deliver the social and economic objectives of the Programme
and target resource in rural areas. By September 2009 emda
had already received 258 endorsed Expressions of Interests and
43 approved full applications that represent £7.6m of RDPE
grant investment. In addition, emda has allocated £13m
through the LEADER approach to enable 'bottom-up' community involvement
in rural development in large parts of Lincolnshire, the Peak
District, Bolsover and North East Derbyshire, Bassetlaw and Newark
& Sherwood and North Northants.
Examples of projects supported by emda
in rural areas and market towns include:
- Rectory Farm in Northamptonshire:
Awarded £170,000 by emda
for the demolition of a redundant agricultural building and the
construction of a new 496 sq metre building containing offices
for let and a community room, in a rural area with very few facilities
of this kind.
- Retford Enterprise Campus:
Over 1000 square metres of office and incubator
space for new start ups and early growth businesses on a high
profile site on the edge of Retford market town centre. It will
create 36 jobs, support 18 new start or growth businesses and
will provide much needed investment in a rural area surrounded
by areas of multiple deprivation, largely as a result of the decline
of the former North Nottinghamshire coalfields.
- Business and Innovation Centre in Market Deeping:
Aims to encourage local enterprise in south Lincolnshire
by improving the conditions for the start ups of small to medium-sized
businesses, as well as creating jobs. The centre has secured an
ERDF grant of £499,962 and emda Single Programme
support of £1.1m.
Recommendation 24
The availability of broadband is an essential tool
for business. While we recognise that much has been done in the
region, there are still areas, particularly in the rural parts
of the region, where availability is patchy, if not non-existent.
We urge the Government to invest in broadband infrastructure and
coverage in the East Midlands to allow businesses to take advantage
of new technologies. We look to emda to continue to lobby
Government on this issue. (Para 136)
Response
The Government is now working to implement the
recommendations made in the Digital Britain Report around universal
service that will enable universal broadband access to virtually
all UK homes and businesses at a speed of 2Mbps by 2012. The Network
Design and Procurement Group will be responsible for the procurement
and delivery of the universal service commitment. Those currently
unable to receive a service will be given priority.
The Government is also working to set up the Next
Generation Fund to help pay for upgrading the UK telecoms infrastructure,
which will help to deliver next generation broadband in the 'final
third'.
Recommendation 25
We welcome the work emda has done towards
supporting the demand in appropriate work space units in market
towns. We congratulate them on the initiative they have shown
in the development of Cransley Park, and encourage them to continue
to work to support small businesses in rural areas. (Para 139)
Response
We agree that emda deserves congratulating
for Cransley Park. See response to recommendation 23 on rural
issues more broadly.
Recommendation 26
The Regional Economic Strategy, with its aim of making
the East Midlands a flourishing region, highlights the ambitions
of the East Midlands. We believe that emda plays a key
role towards achieving that vision, driving and co-ordinating
regional and economic development and regeneration. It has delivered
measurable outputs and its beneficial impact has been recognised
in the reports by Ecotec, the National Audit Office and PricewaterhouseCoopers.
(Para 140)
Response
We agree with this comment. See our response to
recommendation 6 on emda's performance.
Recommendation 27
The financial and economic downturn has affected
all businesses in the East Midlands region and major job losses
have been experienced. Following initial delay in the Government's
reaction, emda has responded well to the current economic
climate. It has adapted its role from growth to survival and has
acted swiftly. Its Survive and Thrive events have been very successful
in the region, providing support to businesses. However, emda
must give continuing attention to ensuring businesses can access
financial support. The Single Programme Grant in Aid allows emda
to be flexible in its approach and to prioritise the available
resource. However, this action is jeopardised by the reduction
and cuts in emda's budget, some of which are at short notice.
This affects emda's ability to take forward strategy decisions
for the good of the region. (Para 141)
See response to recommendation 13.
Recommendation 28
However, there are areas where improvement is needed.
emda's resources alone will not achieve the objectives
of the Regional Economic Strategy. It is therefore vital that
key partners work together to ensure that a common vision is shared.
It is also important that the knowledge and expertise of key partners
in gathering and analysing data is utilised. Contributing to sustainable
development is one of emda's statutory functions. While
it has led the way in the development of the Regional Index of
Sustainable Economic Welfare, the sustainability ethos needs to
be further embedded in emda. (Para 142)
Response
The Government considers that emda
has a sound approach to observing the principles of sustainable
development we set out in Securing the Future (2005) to ensure
policy formulation contributes to a strong, healthy and just society
and to our ability to live within environmental limits. The current
RES sits with the regional spatial and housing strategies within
the framework of the 'Integrated Regional Strategy' for the East
Midlands. emda observes Government Guidance on Appraisal,
Delivery and Evaluation which requires sustainable development
to be considered in programme and project design and ensures the
long term impact of projects is considered. emda uses a
framework to incorporate sustainable development into individual
responsibilities of staff.
We agree that delivery of the RES is not down
to emda alone and note the extensive work already
undertaken by emda on the implementation plan, where 101
organisations provided details of the contributions they would
be making to delivery of the RES.
We note the progress made to date in putting in
place new arrangements for the single regional strategy that will
set out a common vision for partners. The Regional Minister and
GOEM will be keeping a close eye on the development of these arrangements
as work towards the Regional Strategy begins, including the inclusiveness
of work on gathering and analysis of data.
We welcome emda working alongside
the Government Office and the Regional Assembly in promoting sustainable
consumption and production; in particular in developing a stronger
administrative framework for managing waste arising in the region
and ensuring that we draw more effectively upon regional expertise,
for example from Northampton University.
We note the positive steps that have been taken
in preparing the Regional Funding Advice over the last year. emda
has shown its ability to work with regional stakeholders and create
consensus on significant regional funding matters and we look
for a continuation of this approach as the regional strategy process
gets underway.
We further note that in its wider operations emda
supported the Government Office and the Regional Assembly throughout
the consultation process and the development of the regional Climate
Change Programme of Action. The Programme of Action provides a
public statement of commitment by the main regional bodies to
support central and local government policy in addressing the
causes and consequences of climate change and provides a framework
for action within the region. emda now chairs the Regional
Climate Change Partnership Management Group charged with delivering
the Programme.
Recommendation 29
The Sub-National Review means another period
of change for emda. It will result in additional responsibilities
and the need to build working relationships with new bodies, and
to develop new working methods. As it moves forward, it is imperative
that it develops and maintains close working partnerships in the
region. However, the dissolution of the Regional Assembly removes
a knowledgeable regional scrutiny body and a formal mechanism
for stakeholder engagement. emda's efforts to develop mechanisms
in the region to ensure the involvement of regional partners in
policy decision making is welcomed. As emda moves forward,
it is imperative that it develops and maintains close working
partnerships in the region. (Para 143)
Response
Under the LDEDC Bill emda will
be jointly responsible for the new Regional Strategy with the
Leaders' Board and both bodies recognise that the Regional Strategy
is a new challenge for them. Government is content that they are
working well together to develop plans for delivering on their
new duties.
On the issue of scrutiny please see the response
to recommendation 16.
Phil Hope MP
Minister for the East Midlands
2 October 2009
| 
