5 The
role of the Regional Minister
A regional champion?
127. Mr Phil Woolas MP was appointed Regional
Minister for the North West in June 2009, succeeding Rt Hon Beverley
Hughes MP. He will combine the role with that of Immigration Minister
at the Home Office and Minister of State at HM Treasury. In a
statement about his appointment, Mr Woolas, who represents the
constituency of Oldham East and Saddleworth, said:
I am honoured to have been appointed to this position.
I was brought up in Burnley, went to school and college in Nelson,
university in Manchester, my family live in Cumbria and I represent
Oldham. As Minister for Local Government and Regeneration, I got
to know Merseyside and Cheshire well. I have strong links to the
region and a great affection for it and see it as my job to champion
the region in Whitehall and Europe. The North West Region is the
engine room of the British economy and it is leading us out of
recession. The opportunity to redress the inequalities with the
South is something I have devoted my political life to.[169]
128. Regional Ministers, created in June 2007,
were intended to provide "a clear sense of strategic direction
for their regions" and "give citizens a voice in central
government". The role of Regional Ministers is to:
- advise the Secretary of State
for Business, Innovation and Skills on the approval of regional
strategies and appointment of RDA Chairs and Boards;
- represent regional interests in the formulation
of central government policy relevant to economic growth and sustainable
development in areas that have not been devolved to the RDAs;
- facilitate a joined up approach across government
departments and agencies to enable the effective delivery of the
single regional strategy;
- champion the region at high level events and
with regard to high profile projects (including through a programme
of regional visits); and
- represent the Government with regard to central
government policy at regional select committee hearings and at
parliamentary debates focused specifically on the region.[170]
129. The NWDA were very positive about the creation
of the role of Regional Minister. Mr Broomhead told us:
[…] the role of the Regional Minister from my
point of view, particularly in a recession, has been invaluable
to getting messages back into the Government and providing assistance.[171]
130. However, there was also a lot of cynicism
about the role in the evidence we received. Damian Waters of the
CBI said:
The question is whether the Regional Minister can
go back to London and Whitehall and wield any influence and power.
Based on experience, I have to say that that is not the case.[172]
Holly Bonfield of the FSB told us that the former
Regional Minister had declined invitations to meet the FSB and
had not met with the Federation until the beginning of the Joint
Economic Commission (see para 138 below). [173]
It is also unclear to us how the Regional Minister's role fits
with that of the Minister of State for the Departments for Business,
Innovation and Skills and for Communities and Local Government,
currently Rosie Winterton MP. Ms Winterton has responsibility
for "strengthening regional economies (including Grants for
Business Investment); Regional Development Agencies and sub-national
implementation; Solutions for Business (business support simplification);
local government policy; Government Offices; City-regions; Multi
Area Agreements; Regeneration; Worklessness; and Regional resilience".[174]
131. The Minister told us that his priority for
his first year in post would be:
Jobs, jobs and jobs—the protection and promotion
of jobs, which, of course, includes skills. The future job initiative
is critical and that is what we need to focus upon.[175]
We asked the Regional Minister whether he had enough
power to achieve his aims for the North West. He replied:
The way we are in a strong position is in the development
of the partnerships we have within the region. I know that it
does not always feel like it from the constituency angle, but
we probably have—maybe the south west and the north east
would counter this—among the strongest partnership arrangements
with the public and private sectors, but especially with the public
sector. That means that what one needs to focus on to "join
up Whitehall", to use the jargon, is easier to identify.
I am also a Treasury Minister wearing my London hat, so I think
that helps.[176]
132. We also asked him whether his other ministerial
roles left him with enough time to devote to the region. He explained
that he had made arrangements to ensure time was set aside for
the role:
Obviously, that is an issue that I have had to give
a lot of attention to, so as to organise the arrangements with
the office, and the structures. That has been my first priority—it
is very pragmatic stuff about allocation of time, communication
links and so on. The answer to the question is that my enthusiasm
for this job is 100%. […]
I have had about eight months' experience in the
Home Office job, and we have established strategies, timetables
and objectives there that mean more time is freed up. Of course,
the priority during non-sitting times, in terms of chunks of time,
is in the North West. That means that I can answer your question
honestly and say that the time is there, but it does require prioritisation.
[…] I put the constituency first, as I think
it is right to do that. That is the most important point, but
in terms of being able to establish priorities, that is there.
Anyway, I love the North West, so that comes first for me.[177]
Government Office for the North
West
133. The Regional Minister is supported by the
Government Office for the North West (GONW), which represents
central Government in the region. GONW's evidence to the Committee
described its role as joining up the work of 12 Departments,[178]
feeding back the region's views and needs to Whitehall, as well
as working with partners at a strategic level "to ensure
they are up to speed and working effectively together".[179]
As examples of such work, it cited the organisation of events
bringing senior ministers (including the Prime Minister and Lord
Mandelson) to meet business people in the region and supporting
a visit by the Cabinet to Liverpool in January 2009. It also told
us that it had worked closely with Local Authorities in the context
of the downturn through Local Strategic Partnerships (LSPs) and
that it had negotiated, and would monitor, the 3-year Local Area
Agreements (LAAs) on behalf of central Government.[180]
134. GONW told us that its support to the former
Regional Minister for her programme of meetings with businesses
and business organisations in each of the sub-regions and had
ensured the Minister was "fully aware" of how the recession
was affecting business and had "a basis for a considered,
co-ordinated regional response". In addition,
the GONW said that it provided assistance to the Regional Minister
for the Council of Regional Ministers and the Regional Economic
Council.[181]
135. The NWDA told us that, together with the
LSC, the Government Office had played a "really good part"
in making sure the transition from part of the LSC to the Young
People's Learning Agency was "seamless" (see paras 27
to 29 above).[182]
However, other witnesses suggested that GONW was not a strong
force in the region. The CBI, for example, praised the NDWA and
Business Link for their reaction to the recession, but described
Government initiatives as "variable in quality and failing
to deliver".[183]
We are also concerned that GONW did not appear to have been aware
of the problems in the LSC's college capital programme (see para
26 above).
136. We challenged the Minister as to whether
the GONW made a real difference to his role. He replied:
My predecessor […] would say yes. My experience
is limited. I think the taxpayer gets better value as a result
of the structures of the Government office and the JEC. You asked
about infrastructure projects. You could look at the Greater Manchester
waste PFI, the Edge Lane West project, the West Cumbria hospital
and the further education developments […]—in the first
tranche Bolton and Liverpool, and in the second tranche we got
four of the thirteen college projects in the North West, so we
did more than our fair share in that regard.
[…] From the point of view of the region, comparative
to other regions, the result was that we did better, but I think
my point about the taxpayer is, would those projects have happened
without that structure? Possibly/probably. Would it have happened
as quickly and as effectively, and therefore with the saving to
the taxpayer? I think not. That is the critical point—when
we talk about unlocking that as well, I think we bring added value.
[184]
He also suggested that the Government Office had
a role to play in "holding people to account" in the
region.[185]
137. We asked the Minister whether he believed
GONW could be improved. He told us:
Yes, I do. I think that we have worked out, in each
of the key areas of policy […] key priorities in each of
the strategic areas, whether that be tourism, skills or economic
development. We are able, therefore, to set out a programme with
signposts on it that are clear, understandable and pragmatic,
which is what I think we want in the North West, and get on with
it.[186]
The Joint Economic Commission
138. GONW provides the Secretariat to the Joint
Economic Commission (JEC), which was established by the then Regional
Minister in October 2008 to:
- review information and intelligence
on the economic and social impacts of changing economic circumstances
on the North West;
- discuss the challenges facing the region and
agree any necessary individual or joint actions; and
- enable Regional Ministers to ensure that decisions
of the National Economic Council (NEC) could be implemented and
that information on impacts in the North West could be fed back
to the National Economic Council, for example, by looking for
opportunities to push forward both existing and planned infrastructure
projects that would benefit the North West economy.[187]
139. The JEC is co-chaired by the Regional Minister
and the Chair of the NWDA, Bryan Gray. Membership comprises the
Chair or Chief Executive of all the major public agencies, alongside
local authorities, the private sector, higher education, the third
sector, and the trade unions.[188]
140. Witnesses agreed that the JEC had played
a valuable role in sharing and reviewing latest intelligence about
the economic downturn.[189]
Voluntary Sector North West also welcomed the fact that it had
been included in the JEC saying that this had helped to develop
a "stronger sense of partnership" between the public
and voluntary and community sectors.[190]
141. However, views were divided on whether the
JEC had led to any direct actions or outcomes. Liz Meek, Director
of GONW, claimed that the JEC had been particularly effective
in getting stalled infrastructure projects moving, as well as
bringing public and private sector organisations together to test
Government initiatives before they were introduced:
The early successes of the JEC have largely been
about unblocking projects that were blocked. Some of that was
obviously done in fairly private negotiations involving Ministers
and Departments, but we are pleased with the result as far as
the North West goes. Some substantial PFIs have been approved—the
Greater Manchester waste PFI, for example. Some of the colleges
perhaps did not get enough, but given the situation, we feel that
the North West did quite well. […] All the housing schemes
worked jointly with the Homes and Communities Agency and the Development
Agency, to work out where the priorities were so that the money
could be targeted where it was most effective. It might not be
headline grabbing, but I think that the North West got from that
construction opportunities it would not otherwise have had.
A second area is about bringing this unique group
together so that we work together. The public sector organisations
around the table control over £20 billion. Having Jobcentre
Plus, the health authority, the Learning and Skills Council and
ourselves, together with the private sector, has meant that the
various schemes that were being launched could all be tested,
and we could ensure that everybody was pulling in the same direction.
Those are two examples of what the JEC has done. [191]
142. The NWDA agreed, telling us:
We found it very helpful for focusing evidence based
around the sorts of interventions that both the Government and
the RDA should be making. For instance, we agreed with the Homes
and Communities Agency at the JEC about the 20 physical regeneration
projects that would fail because of issues, and we were able to
bring some of them forward—one of them being the northern
relief road in Carlisle[192]
143. However, others expressed doubts about the
extent to which the JEC was responsible for such achievements.[193]
The FSB told us:
The third objective was to bring forward some infrastructure
projects to bring some money into the area. We do not see any
evidence of that. […] I have a document here about JEC achievements,
and there are nine bullet points concerning support for business.
I don't think any of those have happened because of the JEC, they
were all happening anyway; different organisations in the North
West were getting together to make those happen. What the JEC
thinks it has achieved does not necessarily reflect what it has
achieved.[194]
The CBI agreed:
The evidence, from attending four out of the five
[JEC meetings] is that, sadly, it has become an organisation that
is good at sharing information with itself. In terms of action
for the North West, I am not sure that I could write a top five
actions that the JEC has delivered on behalf of the North West.
… Part of the problem is that the Regional Minister and the
JEC can only encourage and enthuse about activity, but fundamentally
they don't have any real power to force people to do anything.[195]
Private Sector Partners NW Limited described the
JEC as a "'cheerleader' for the Government's behaviour and
policies and a messenger to other groups/committees", adding
that this was "an important, but limited, task".[196]
144. The JEC met five times since October 2008,[197]
but its last meeting was as far back as February 2009. At the
time this report was agreed we understood that the JEC was about
to have another meeting, although the outcomes of this meeting
had not yet been shared with us. The Minister told us that this
meeting would be "critical" because it would also involve
a meeting of the seven major banks at regional level to discuss
credit availability (see access to finance para 80, Chapter 3).[198]
David Higham of the GONW also told the Committee that the next
meeting of the JEC would give GONW an opportunity to raise the
issue of late payment (see para 102, Chapter 3) with the private
sector representatives on the Commission.[199]
145. Damian Waters of the CBI told us that he
felt the JEC was "coming to the end of its natural life".
He added:
Maybe a new Regional Minister will have new ambitions
for the JEC and will stimulate new life into it, but my feeling
is that it is dying a natural death. [200]
Other witnesses suggested that the JEC could play
a role going forward if it reconsidered its purpose and became
more transparent.[201]
Liz Meek, Director of GONW, agreed that the JEC was "in transition",
saying it was "obvious" that "with a new Chair,
[the JEC] will take a different course. [202]
146. 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.
169 www.gos.gov.uk/gonw/ Back
170
Ministry of Justice, The Governance of Britain, Cm 7170,
3 July 2007, para 118 Back
171
Q 106 Back
172
Q 27 Back
173
Q 27 Back
174
www.bis.gov.uk Back
175
Q 116 Back
176
Q 117 Back
177
Qq 119-120 Back
178
Cabinet Office; Department for Business, Innovation and Skills;
Department for Children, Schools and Families; Department for
Culture, Media and Sport; Department of Energy and Climate Change;
Department for Environment, Food and Rural Affairs; Department
for Work and Pensions; Department for Transport; Department of
Health; Home Office; Ministry of Justice. Back
179
Ev 35 Back
180
Ev 35 Back
181
Ev 35 Back
182
Q 114 Back
183
Ev 49 Back
184
Qq 121-122 Back
185
Q 126 Back
186
Q 124 Back
187
Ev 35 Back
188
The full membership comprises the Chair or Chief Executive of
the NWDA, Home and Communities Agency, Jobcentre Plus, Learning
and Skills Council, Highways Agency, and NHS NW; local authorities
through 4NW; NW Confederation of British Industry, Federation
of Small Businesses, Private Sector Partners; North West Universities
Association and NWVCS and NW TUC. Back
189
Ev 102, Ev 73, Ev 49 and Ev 83 Back
190
Ev 90 Back
191
Q 118 Back
192
Q 106 Back
193
Ev 52 Back
194
Q 28 Back
195
Q 26 Back
196
Ev 102 Back
197
Ev 35 Back
198
Q 118 Back
199
Q 131 Back
200
Q 28 Back
201
Q 28 and Ev 52 Back
202
Q 158 Back
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