Appendix: Government response
1. It is vital that the North West retains skills
in order to ensure the region is well positioned for the upturn.
We are encouraged that witnesses reported that companies seem
to have learnt the lessons of previous recessions and do appear
to be doing all they can to avoid redundancies and retain skills
in their workforce. We recommend that the Regional Minister continues
to monitor this situation. (Paragraph 1)
The Government agrees that actions aimed at avoiding
redundancies and retaining skills within the region are important,
and will remain a priority for the Regional Minister. Both the
Joint Economic Commission for the North West, and the North West
Regional Skills and Employment Board will continue to work to
deliver initiatives to support individuals affected by the downturn
through support for new skills and training. Apprenticeships are
a key route to building the regional skills base, and the Government
is committed to delivering significant growth in Apprenticeships
for young people and adults across the region.
2. We conclude that Jobcentre Plus has, on the
whole, dealt well with the challenges presented by the recession
and has increased its staffing levels appropriately to meet the
increased demand for its services. However, Jobcentre Plus must
find a way to ensure that it is called in at an early stage when
an employer is planning redundancies so that those affected can
be given timely advice. We recommend that Jobcentre Plus and its
partners continue to work with employers to achieve this. (Paragraph
24)
The Government welcomes the Committee's recognition
that JobCentre Plus has responded well to the challenges within
the North West, and it will continue to offer support to employers
to ensure early intervention when redundancies are being planned.
It has taken significant steps to improve the Rapid Response Service
(RRS) for those businesses declaring 20 or more potential redundancies
to the Insolvency Service. There are dedicated RRS managers in
place working with regional partners to offer both earlier intervention
and a much broader range of help and support.
Advanced notification of redundancies are monitored
weekly, alongside the monitoring of smaller scale redundancies.
Collaboration with trade unions has also facilitated early access
to employers and individuals in many redundancy cases. An Industrial
Restructuring Group has been established in which NWDA, BLNW,
JCP and LSC assess how the region is responding to redundancies
and ensure the conduct of joint responses, working with employers
to ensure a smooth and efficient service is provided.
3. It is unfortunate that the restructuring of
the Learning and Skills Council is taking place in the middle
of a recession. In these circumstances it is vital that the transition
is planned as carefully as possible. We recommend that the Minister
considers the benefits of linking the skills strategy for the
Skills Funding Agency to the Regional Economic Strategy and writes
to us about whether this is possible and desirable in the North
West. We also recommend that in its response to this Report the
Government sets out what lessons have been learned in the North
West following the gross mismanagement by the LSC of the further
education capital programme. (Paragraph 30)
The Government accepts there have been difficulties
around the further education capital programme, particularly where
successes led to an increase in demand for funding. The Government
has accepted all the recommendations made in the Foster Review.
In taking the recommendations forward, a dedicated project management
group across both the LSC and the Department has been established.
This has led to a new needs-based system which after an open and
transparent prioritisation process, in consultation with the sector,
has allowed the most urgent projects to begin this autumn.
The Chancellor announced in the Budget an additional
£330 million of capital funding which has allowed the LSC
to give approval to a limited number of projects starting this
autumn, and has also announced a continuation of the Further Education
capital investment programme in future years. In the North West
approval has been given to 4 colleges: West Cheshire, Furness,
Wythenshawe and St Helens. The LSC hope to be able to announce
that a project at the Manchester College will also be able to
proceed following further discussions.
The Government recognises the need to ensure a smooth
transition for restructuring of the Learning and Skills Council.
The current economic climate means that it is more important than
ever that the skills system is able to respond quickly and effectively
to the needs of employers and individuals. The Government is therefore
actively considering the simplification of the skills landscape
at the regional level.
To this end, it is considering making the Regional
Development Agencies the single body with responsibility for producing
the regional skills strategy and acting as champion and advocate
for skills at the regional level. The regional skills strategy,
which would constitute an investment plan, would be integrated
within the single Regional Strategy (which will replace the Regional
Economic Strategy). Under this scenario, the Skills Funding Agency
(which will replace the Learning and Skills Council from April
2010) would be responsible for allocating funds and managing the
relationship with colleges and providers.
4. We conclude that the North West Regional Development
Agency, Jobcentre Plus and the Learning and Skills Council appear
to have developed a good working relationship in the region. We
welcome this close relationship and recommend that these, and
any successor, bodies continue to work closely together in the
future to ensure the region is not disadvantaged by significant
skills gaps in the future. (Paragraph 36)
The Government welcomes acknowledgment that its regional
agencies are working effectively together. It will ensure that
this close partnership continues through successor bodies to deliver
strong regional outcomes on the skills agenda. This will be delivered
through the Regional Employability Group, a sub group to the Regional
Skills and Employment Board.
The recent decision by the Secretary of State for
BIS that RDAs will lead on strategic skills matters will provide
the NWDA with the direct opportunity to address the skills demand
in the region. Through the Regional Employment and Skills Board
a Commissioning Plan will be developed which will be delivered
by the Skills Funding Agency. The NWDA will ensure that the Regional
Skills Strategy is fully aligned and integrated into the integrated
Regional Strategy (RS2010).
5. We welcome the use of the Rapid Response Service
and the Response to Redundancy Programme across the region where
needed. However we are concerned that the effectiveness of the
Rapid Response Scheme does not appear to be being monitored. We
recommend that an exercise be undertaken to evaluate the programme
in terms of outcomes for participants. We would also like to hear
more from the Learning and Skills Council about the impact of
the Response to Redundancy Programme in the North West once the
programme is underway. (Paragraph 40)
The Government does not accept that it would provide
value for money to evaluate the Rapid Response Service (RRS) programme
in terms of outcomes for participants. The RRS offers support
for employers and individuals affected by redundancy, rather than
as a programme for people looking for work. Jobcentre Plus at
both a regional and local level monitors the take up (and decline)
of support from employers. Systematic evaluation is therefore
not straightforward.
Firstly, the creation of a tracking system for individuals
would be complex and highly labour intensive as many of the individuals
who make use of the RRS do not need to access mainstream Jobcentre
Plus activity. They find work without actually becoming unemployed.
Currently JCP are unable to monitor what happens to these individuals
because it keeps no specific record. In addition, RRS connects
people to existing products, support and delivery systems which
are themselves evaluated.
In the North West, since October 08 over 490 employers
have been assisted through RRS with support offered to over 32,000
individuals. JCP is not in a position to create a tracking system
for all individuals seen by the RRS as its focus is on ensuring
it can deploy help quickly. This approach, however, will be kept
under review in circumstances of large-scale redundancies.
In the NW JCP has developed and are in the process
of putting in place a tracking system to evaluate the impact of
the Job Focused Training support funded through RRS. This process
is reliant on individuals providing information relating to employment
following access to redundancy support, as some individuals may
not register for welfare benefits.
The Response to Redundancy programme is currently
delivered through a network of 25 Learning and Skills Council
(LSC) providers in the region. LSC and JCP have worked together
to ensure the Response to Redundancy offer and the JCP Rapid Response
funding complement each other. A provider directory has been produced
to detail provision, location of provision and provider contact
details, and has been issued to JCP, NextStep, Business Link advisers
and other partners to facilitate an activist approach between
partners and providers. A performance review exercise is currently
underway to ensure both regional and national targets are achieved.
6. We consider increasing skills in the North
West to be of the highest importance and we welcome the work that
the LSC and partners have done to engage regional businesses in
skills training. Train to Gain is providing an invaluable service
in the North West and funding must be secured to ensure it can
continue. We ask the Government to update us on progress with
bidding for additional funding for the scheme in the North West.
(Paragraph 45)
The Government can confirm that an additional £4.7
million has been agreed for the Train to Gain (TtG) programme
over the original allocation for the North West, increasing the
financial year budget for 2009-10 to £113 million. The LSC
is also in the process of allocating £14 million of European
Social Fund expenditure to eligible providers to purchase additional
TtG provision, and intends to go out to competitive tender for
up to an additional £8 million of provision in November to
help meet demand for the programme from North West employers.
NWDA will continue to work to further integrate TtG with the activity
of Business Link North West.
7. We believe it is crucial that young people
who have begun apprenticeships are able to complete them. The
Government and its regional agencies have set up schemes to protect
apprentices affected by the recession, but these do not appear
to have been promoted enough within the region. We ask the Regional
Minister to coordinate with companies, the further education sector
and Jobcentre Plus to ensure that apprentices affected by the
recession are made aware of what assistance is available to them.
We also recommend that the Regional Minister takes the lead in
ensuring that schemes to protect apprentices are promoted to all
partners. (Paragraph 52)
The Government recognises the importance of supporting
apprenticeships during the current economic downturn, but does
not agree that schemes to protect apprentices have been insufficiently
promoted within the region. In the North West, the National Apprenticeship
Service (NAS) continue to pilot a range of initiatives targeted
at regional and sectoral support, such as working with CSkills
to invest up to £1 million in supporting out-of-work Apprentices
from the construction industry. NAS have also developed 'employer
pool' contracts with the Construction Industry Training Board
and Economic Solutions, working closely with the North West Provider
Network to pick up any learners being made redundant. To ensure
that they are able to continue their training, they will be funded
to remain in full-time off-job provision for up to six months,
either to complete their apprenticeship or to allow time for alternative
employment to be sought.
JCP managers engaged through the Rapid Response Service
are signposting apprentices to the national apprenticeship vacancy
matching system and NWDA has established its own bursary scheme
to help to retain graduates in the region, which is promoted through
the 14 HEIs in the region. To increase awareness of the support
available, NAS will issue a fact-sheet newsletter in early October
providing further information for employers and those interested
in apprenticeships.
8. We support the apprenticeships scheme launched
in Building Britain's Future and recommend that the Government
sets out how it proposes to increase the number of apprenticeships
available to young people in the North West within both the public
and private sector. (Paragraph 53)
NAS is currently developing an employer engagement
strategy which will identify the priority sectors to target for
increased apprenticeship opportunities within the North West.
Early indication suggests that the following sectors will be key:
Retail, Nuclear, Hospitality and Catering, Public Sector, Engineering
and Care. This will support the Government's objectives to increase
the total number of apprenticeships available to young people
in the region.
Implementation will include sector-focused employer
engagement events and key partner engagement with employers on
the NWDA strategic sites. The North West Apprenticeship Ambassadors'
Network is being set-up, which links into the National Network.
To date partnership working by the NAS has generated employer
Apprenticeship vacancies numbering over 1,500 since April.
In the Public Sector, NAS are working with the North
West Employers Organisation (NWEO) to engage with Local Authorities.
Employer Services Managers have been allocated to work with specific
Local Authorities to support their Apprenticeship development,
and the NHS has provided 1,100 pledges for apprenticeships, via
a joint initiative with the Strategic Health Authority.
9. We welcome the Future Jobs Fund as a means
of supporting innovative bids to create new jobs for the North
West. We recommend that the Regional Minister and the Government
Office for the North West work with partners, including the trade
unions, to ensure as many applications from the North West, particularly
from young people, are as successful as possible. (Paragraph 57)
The Government can confirm that it has worked with
partners through GONW to ensure that a number of high-quality
and innovative bids were submitted to the Future Jobs Fund. As
a result in round one, the North West saw the most successful
set of bids outside of London. The funding that has been secured
will potentially generate the greatest number of job opportunities
of any region with around 9,268 jobs, as well as further opportunities
from successful national bids. There is currently geographical
coverage of around 80% of the region, and bids will be actively
encouraged to cover remaining areas in the next two rounds. Unsuccessful
round one bidders have been contacted in order to offer constructive
feedback on how bids could be improved, and signposting to other
partners to strengthen delivery.
10. We are encouraged that Jobcentre Plus, the
Learning Skills Council and university careers services are working
together to support graduates during the downturn. We ask Jobcentre
Plus and the Learning Skills Council, or its successor bodies,
to report back to us in six months time about the progress made
in delivering these initiatives and whether any further support
can be given to graduates in the region. (Paragraph 63)
The Government welcomes recognition of efforts by
Jobcentre Plus, the Learning and Skills Council, and the North
West Universities Association to work together to develop a coherent
support package for graduates at risk of redundancy and new graduates
unable to find employment. JCP and LSC agree to report back to
the Committee in six months to set out progress made. In addition,
the NWDA is working closely with the National Council for Graduate
Entrepreneurship with a view to encouraging more students, and
graduates to think seriously about starting a business, or becoming
self-employed.
11. We are strongly in favour of promoting and
protecting jobs in the North West. However, any support funded
by the taxpayer should be able to demonstrate value for money
in its approach. We recommend that the short-time working proposals
put forward by the Federation of Small Businesses and the TUC
are discussed at the next meeting of the Joint Economic Commission
in order to canvas support for the measures compared to other
available options. (Paragraph 67)
While the Government can agree to discuss the proposals
put forward by the FSB and TUC at the next meeting of the Joint
Economic Commission in order to canvas support, it can give no
commitment to taking forward any proposals at this stage.
The Government has extensively examined the business
case for a general UK wage support and has concluded that such
support for all employers is not a feasible, cost effective or
sustainable option. Experience of operating such schemes in the
past shows they can act to create distortions and perverse incentives
for other sectors and companies to "bargain" for subsidies.
Such findings are supported by the OECD which concludes that wage
subsidy schemes are extremely costly because of high deadweight
costs where many eligible firms would in fact have retained workers
without the subsidy.
The Government believes that business support is
more effective and will bring permanent benefits to UK businesses
and the economy. The packages of credit support that have recently
been introduced, including the £10 billion Working Capital
Scheme and an Enterprise Finance Guarantee Scheme, are designed
to directly address the issues of access to finance. Additionally
Train to Gain continues to provide effective and direct support
to employers, helping them invest in the future productivity and
profitability of their businesses by focusing on the training
and skills of their employees.
12. Manufacturing is a vital part of the North
West economy and also supports a large service sector. We welcome
the efforts made by NWDA and the Manufacturing Advisory Service
to support manufacturers in the region. However, we believe more
could be done by the NWDA and the Government to make sure that
the manufacturing base in the region remain a diverse and important
sector in the North West. We recommend that the NWDA and the JEC
make manufacturing a priority over the next twelve months. We
further recommend that the Regional Minister works with the Department
of Business, Innovation and Skills to accelerate the delivery
of the Automotive Assistance Programme in the region. (Paragraph
74)
The Government agrees that manufacturing is vital
to the North West economy, and confirms that it remains a priority.
Advanced manufacturing has already been cited as a key sector
within the Regional Strategy 2010 Principles and Issues Paper.
The Joint Economic Commission will also continue to focus on identifying
opportunities around manufacturing, for example to support issues
such as the "green economy" or around energy.
The Government, through NWDA, will officially launch
its NW Manufacturing Strategy and Action Plan in October, which
aims to improve the service to manufacturing businesses and raise
the performance of the sector within the North West. This will
include the establishment of an industry led manufacturing forum,
led by the industry, to raise the profile of manufacturing and
ensure that the needs of manufacturers are met. It will also include
the deployment of a dedicated manufacturing portal to improve
the sector's image and provide manufacturers with key information
on the services available.
The launch of the new Future Manufacturing Advisory
Service by NWDA will in addition provide in the North West a total
investment of £23.3 million over four years to specifically
respond to the needs of manufacturing business. The aim is to
deliver over £100 million of GVA and create over 2,000 jobs
in the region.
Much effort has been and continues to be made by
the Regional Minister, working with the Department of Business,
Innovation and Skills and NWDA to encourage the effective use
of the Automotive Assistance Programme by North West based automotive
sector key players and the supply chain.
13. We welcome the work that the NWDA and Business
Link have done to restructure Business Link. This had clearly
led to improved perceptions of Business Link and encouraged businesses
to seek advice and support from the service. However, the NWDA
and Business Link could still do more to promote Business Link
as a first point of call for early advice or a business health
check and we recommend that it continues to work with banks, local
authorities and other partners to improve signposting to the valuable
services it provides. (Paragraph 79)
The Government welcomes recognition that Business
Link (BLNW) is providing an effective service within the North
West. It accepts, however, that work must continue to further
raise the profile of the advice and support it can provide to
the business community in the region. A full programme of promotional
and learning events is scheduled over the next quarter which will
include joint road-shows with the banks, and a range of seminars
with partners such as local authorities. This will particularly
target groups who may not have previously been aware of the services
offered by BLNW.
14. We agree with the NWDA that the failure to
restore sufficient access to credit and confidence in the banks
remains a major risk to the regional economy. We recommend that
the Government continues to apply pressure upon the banks at a
regional and a national level with regard to increasing lending
to businesses in the region. We also ask the Regional Minister
to examine the cost of borrowing in the North West and report
to us on how this compares with the pattern nationally. (Paragraph
87)
The Government is providing real help now to protect
businesses, jobs and homes along with the investments we are making
to ensure the UK is well placed to seize opportunities presented
by the recovery. In November's Pre-Budget Report, the Government
introduced a £20 billion package of measures (fiscal stimulus)
to give the economy a shot in the arm, which included a one year
cut in VAT and accelerating spending on infrastructure.
Action by the Bank of England has supported the Government's
action. The Bank has reduced interest rates from 5 per cent to
0.5 per cent, and in September kept rates at 0.5 per cent at its
monthly Monetary Policy Committee meeting. The Bank has also introduced
£125 billion of quantitative easing, putting more money into
the economy to boost spending. The Government has also taken decisive
action to protect people's savings, prevent the collapse of the
banking sector and save millions of jobs.
The Government has acted to get the banking system
working again, to clean it up and rebuild it so that it can support
families and firms. The economy will not be fixed unless we fix
the banks. Within the North West, the Regional Minister continues
to meet with representatives of the leading regional banks to
identify further actions to address the issue of access to finance.
NWDA is also able to influence banks through bi-monthly meetings
with regional business banking representatives as well as BusinessLink
North West's case by case activity to encourage increased lending
to business.
On the issue of the cost of borrowing in the North
West, the Government can find no evidence that the cost of borrowing
from banks in the region differs from that provided elsewhere.
Typically high street banks manage products on a national basis,
and for small loans to SME's a standard credit scoring system
is used. In relation to loans above this level the cost of borrowing
depends on the individual business and level of security, but
no evidence can be found that North West businesses are being
disadvantaged compared to other regions. Business Link Access
to Finance brokers continue to help businesses in the region to
look at a variety of funding options.
15. We support the joint work being done between
Business Link, LloydsTSB and HBOS to increase the dialogue between
businesses and bank staff. However, it is vital that the Government
urges all major banks to educate their staff about the services
Business Link provides. (Paragraph 88)
The Government agrees that it is vital for the major
banks to educate their staff about the services which partners
such as BusinessLink North West (BLNW) can provide. NWDA and BLNW
are developing a specific programme for use with bank staff within
the North West highlighting the range of Business Link initiatives
and referral methods. The close working relationship between BLNW
and the banks will also be used to encourage the banks to refer
businesses to BLNW when they are unable to help, such as when
refinancing/loan applications fail.
16. It is difficult to measure the success of
the Enterprise Finance Guarantee Scheme at present because of
the low awareness among banks and businesses. This is a serious
flaw in a scheme that was intended to increase the level of lending
from the banks to businesses. We recommend that Business Link
continue their work to increase take up of the scheme. This should
include every opportunity to engage with bank staff who are involved
in delivering the scheme. We further recommend that the Joint
Economic Commission monitor the take up of this scheme and report
this information to us on a quarterly basis. (Paragraph 95)
Since the launch of the EFG, the Government continues
to work closely with approved lenders and SME representative bodies
to ensure that they are aware of EFG and any extensions there
have been to its scope. As a result, the EFG has facilitated lending
which would otherwise not be available. As of the 9th September,
nationally 5,105 EFG loans have been offered to customers with
a total value of over £512 million. That includes 530 offers
made specifically in the North West to the value of £51.52
million. The Government agrees to provide returns on a quarterly
basis to the Committee on take-up within the region.
Furthermore, the Government agrees that BLNW has
a role at regional level to ensure bank staff understand the purpose
of the Scheme and are able to promote it appropriately, as well
as promoting the scheme themselves to encourage applicants to
approach the banks. A programme of work planned with the banks
will address this issue. BLNW will also look to deliver other
communiqué to bank staff as appropriate to ensure better
understanding of the support that is on offer from Government
to business.
17. There is a demonstrable need for venture capital
funding in the North West. It is important to ensure that innovative
small and medium sized enterprises survive the recession, and
are well placed to expand when the opportunity arises. It also
provides a vital potential source of funding for new-starters.
We recommend that the Regional Minister works with HM Treasury
to clarify the status of the Venture Capital Fund and accelerate
a decision as to its final delivery, and that he reports back
to this Committee on the response from HM Treasury. (Paragraph
98)
The Government agrees that venture capital funding
is important to support the development particularly of innovative
SMEs. The Regional Minister has worked closed with the Treasury
and others in accelerating decisions relating to the Venture Capital
Loan Fund (VCLF). NWDA will continue to provide transitional loans
and other financial support to companies as appropriate in the
interim. The revised proposal for a North West Venture Capital
Loan Fund (VCLF) was submitted to HM Treasury following acceptance
of the North East Region proposed VCLF scheme in August. A decision
is expected shortly. We agree to inform the Committee when a decision
has been made.
18. Business Link and the NWDA have valuable experience
of the needs of business in the region, and the detail of how
projects are delivered on the front line. The Government should
have engaged more with the Northwest Regional Development Agency
before announcing initiatives that the NWDA had to implement.
We recommend that in future the NWDA is involved in discussions
about new initiatives in the region from the start. The Government
should also consider how it disseminates information in the region
to other partners, including banks, and review what it can do
to make sure the delivery of initiatives does not become confused.
(Paragraph 101)
The Government agrees that it is important that information
on new initiatives is clear from the outset so that partners are
able to effectively support delivery. It does not accept, however,
that it did not engage its regional agencies sufficiently when
determining the needs of businesses in the region.
The Department for Business, Innovation and Skills
continues to work closely with the NWDA and BLNW on a number of
key initiatives, with GONW providing support as appropriate. NWDA
were actively involved in shaping the New Industry New Jobs agenda
before specific proposals were announced, and are key players
in implementing the Business Support Simplification Programme,
as well as the regional enterprise strategy.
NWDA will also use their lead RDA role for the Department
for Energy and Climate Change to ensure early engagement with
policy announcements; and through their new responsibility around
the skills agenda and developing relationship with the Skills
Funding Agency (SFA) will seek to ensure that any announcements
that may impact on the region are aligned with the Regional Employment
and Skills Board policy and proposals.
As a general rule to ensure clear delivery within
the region, GONW disseminates information and guidance to Local
Authorities and other public sector partners, while NWDA leads
on the dissemination of information to private sector organisations,
including the banks, mainly via its Regional Banking Forum group.
19. We welcome the move by the JEC to make prompt
payment an immediate priority. There are differing opinions as
to performance of public sector in paying on the 10 day target
and we agree with the NWDA that there should be an audit of public
sector (central government, agencies and local government) performance
in this regard. These results should be made public, the reasons
why the 10 day target is not being met in some parts of the public
sector should be identified and the JEC should work with the relevant
partner organisations to improve the level of performance. (Paragraph
107)
The Government agrees that paying suppliers promptly
is critical in helping small firms maintain their cash flow and
survive in the current economic climate. The Regional Minister
through the Joint Economic Commission has been active in ensuring
that regional agencies make payment to contractors and suppliers
promptly, and within 10 days in most cases.
This action is being monitored across the public
sector, and good progress has been reported by regional government
agencies, with all NHS and PCT establishments signed up to the
Government's Prompt Payment Code (PPC), making 10 day payments
where possible. GONW, NWDA and BLNW have themselves signed up
the PPC to demonstrate leadership at the regional level.
20. We are dismayed to find that larger firms
are exploiting their strength at the expense of small businesses.
The JEC should identify and make public the worst offenders among
the private sector in the region, to borrow the Regional Ministers
phrase, we should be 'shining a light' on those that do not pay
on time. The Government should also take this message to the banks,
regionally and nationally, that they have a major role to play
in increasing the speed with which cash can move through supply
chains and help reduce the need among business to withhold payment.
(Paragraph 108).
The Government agrees that larger firms must be encouraged
to make payments promptly, in order to ensure that SMEs are not
disadvantaged during the current economic climate. The Department
for Business, Innovation and Skills are working with major businesses
to support the Prompt Payment Code (PPC). Within the North West,
the Chief Executive of NWDA has written to the main North West
based private sector organisations to encourage their members
to make payments within terms of no more than 30 days and to sign-up
to the PPC. This has resulted in strong endorsement from the recipients
particularly those representing smaller firms. On this basis we
are now planning to raise the profile of prompt payment and will
hold an event in the region where public agencies, local authorities
and large private sector companies can publicly show their commitment
to the PPC.
21. We conclude that the NWDA refocused its priorities
quickly and appropriately in response to the economic downturn.
However, we are concerned about the impact budget cuts will have
on Agency investments, particularly in 2010-11 when the transfer
of funding to the Government's Homebuy Direct Scheme will hit
the NWDA's budget hard. We recommend that the Government details
the investment projects which the NWDA has had to cut or cancel
as a result of this reduction in funding. We also ask the Government
for a commitment that there will be no further cuts to the Agency's
budget over the 2008-2011 period. (Paragraph 126)
The refocused RDA budget enables them to continue
to deliver important investment in programmes and projects focused
on economic development, where the RDAs are key to the delivery
of Government policy in these areas. The Government has also issued
RDAs with indicative budgets for 2010-11 to inform planning for
that year.
We expect key decisions about future RDA spending
beyond 2010-11 to be made in the context of the next Spending
Review and following consultation between RDAs and Government
Departments. In the North West, the NWDA has recently established
with HCA a joint statement of working which, in particular seeks
to ensure joint investment planning so that the totality of NWDA
and HCA investment has the maximum impact on the region and its
sub regions. The Government agrees to write separately to the
Committee to provide full details of the projects that may have
been delayed or cancelled as a result of the recent reprioritisation
the NWDA budget.
22. We welcome the enthusiasm with which the new
Regional Minister has taken up his role. However, we also need
to see action to be persuaded that the role carries real weight
and influence at Westminster and that the Minister has time to
commit to the role in addition to his other responsibilities.
We are concerned that the Government Office for the North West
(GONW) does not appear to be providing strong leadership in the
region. Indeed it seems invisible to us as constituency MPs. We
also remain to be convinced that the Joint Economic Commission
(JEC) has played any greater role in the region than providing
a forum for information sharing. We recommend that the Regional
Minister and GONW brief us on actions agreed at the most recent
JEC and then update us on progress delivering these actions on
a quarterly basis. We also recommend that the Minister sets out
what his intentions are for the future of the JEC. (Paragraph
146)
The Government does not agree that GONW and the JEC
have failed to provide strong leadership in the region on the
response to the economic downturn. GONW has provided support to
the Regional Minister to engage effectively with regional stakeholders;
help the Regional Minister identify priorities for work in the
North West; and has ensured the Regional Minister is up to date
on the key issues affecting the region, supporting engagement
on areas where best value can be added.
Through its role leading for Whitehall on Local Area
Agreements (LAAs) and Multi-Area Agreements (MAAs), GONW has brought
together key delivery partners at the local and sub-regional levels
to commit to stretching performance across a range of policy agendas.
This includes working with Whitehall colleagues in brokering arrangements
for agreeing LAAs with robust targets on issues such as reducing
teenage conceptions and addressing all age/all cause mortality.
As a result, additional contraception services are now in place
across the St Helens and Halton Teenage Action Zones; while Halton
PCT is developing a Quality Outcome Framework across high priority
diseases such as diabetes and stroke.
In Cheshire there has been progress in Community
engagement. GONW has brought together the councils and Criminal
Justice Board to offer a better integrated approach. In Lancashire
GONW has responded to a significant increase in serious acquisitive
crime, a package of support for Burnley was negotiated and being
delivered by the GONW community safety team. New ways of working
have been trialled in Knowsley and welcomed by local authority
colleagues. Close engagement with the Greater Manchester City
Region pilot and Total Place Pilot also continues.
GONW has also played a lead role in ensuring that
a number of high-quality and innovative bids were submitted to
the Future Jobs Fund which has resulted in a high number of successful
bids for the region as part of round one. This will potentially
generate the greatest number of job opportunities of any region
with around 9,268 jobs, as well as further opportunities from
successful national bids.
GONW, with NWDA, has been instrumental in bringing
partners together quickly through the JEC to mitigate the worst
impacts of the economic downturn in the region, and developing
a work-plan where partners can deliver action—including
unblocking infrastructure projects, supporting the labour market
and vulnerable communities, and identifying strategic opportunities
for the upturn. Most recently JEC has examined regional support
to tackle worklessness; how to use good procurement practice to
support recovery; and to consider opportunities around energy
efficiency and renewables.
However, the Government recognises the need to ensure
continued leadership in the region. Both the Regional Minister
and the Chair of the NWDA want to examine opportunities for recovery
in the region, and ensure that future discussion at JEC includes
a focus on a number of key issues and actions where partners can
work together to identify effective and measurable outcomes. As
a result, the next meeting in November will focus first on digital
connectivity; a later meeting will look at the "green economy",
with the aim of identifying opportunities and barriers to realising
the potential of these sectors for the North West. The Government
agrees to provide updates on JEC actions to the Committee on a
quarterly basis.
GONW are always happy to respond to MPs and since
the beginning of 2009 it has dealt with over 200 letters. Staff
also held a number of meetings with MPs. GONW welcome the views
of the Committee and as a result MPs will be invited for a discussion
hosted by GONW on key issues and activities in each sub region.
23. We conclude that the city region pilot scheme
has potential to help the local authorities in the Manchester
conurbation work together on areas of mutual benefit. However,
the Government must ensure that other parts of the North West
do not lose out as a result. We recommend that in its response
to this Report the Government set out what assessment it has made
on the impact of the pilot scheme for the rest of the region.
(Paragraph 154)
The Government agrees that an assessment of the impact
of Manchester city region plans on the wider North West need to
be carried out. This will done by GONW in conjunction with other
regional partners, including NWDA. We did not want to delay this
response while the assessment is conducted and GONW agrees to
write separately to the Committee before the end of November with
further details.
24. We welcome the Minister's confidence about
the prospects for an economic recovery. It is vital to ensure
that the region is prepared for an upturn and we place on the
record now our intention to scrutinise the Single Regional Strategy
in detail. We recommend that the North West Development Agency
shares drafts of this document with us as soon as it becomes available.
(Paragraph 159)
The Government welcome the interest that the Select
Committee is taking in the development of the new integrated Regional
Strategy, and notes the intention to scrutinise in detail. Members
of the Committee will be included as key consultees when the document
is circulated for consultation in late 2009/early 2010. In the
interim the Government will ensure that Members are kept fully
informed of drafts of the document as they are compiled in preparation
for the formal consultation.
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