Conclusions and recommendations
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.
(Paragraph 2)
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. (Paragraph 10)
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. (Paragraph 16)
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.
(Paragraph 24)
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. (Paragraph 28)
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.
(Paragraph 36)
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.
(Paragraph 42)
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. (Paragraph 49)
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. (Paragraph
59)
10. We
welcome emda's focus on regeneration schemes in order to
create and safeguard jobs during the current economic climate.
(Paragraph 67)
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.
(Paragraph 71)
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.
(Paragraph 72)
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. (Paragraph
83)
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.
(Paragraph 87)
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. (Paragraph 94)
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. (Paragraph 101)
17. We
understand the concerns expressed by witnesses over the lack of
clarity for sub-regional arrangements. We look forward to clarification
from emda. (Paragraph 105)
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.
(Paragraph 110)
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. (Paragraph
115)
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.
(Paragraph 116)
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 RDAs' economic performance.
(Paragraph 124)
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. (Paragraph
128)
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.
(Paragraph 133)
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. (Paragraph 136)
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. (Paragraph 139)
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.
(Paragraph 140)
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. (Paragraph 141)
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. (Paragraph 142)
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. (Paragraph
143)
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