6 Preparing for the upturn
Priorities that can add value
133. As the South East emerges from the economic
downturn, it is important that resources are focused on those
priorities that will really add value in the region. SEEDA recognised
that preparing for the upturn was important and told us that it
saw its role as, "ensuring that we focus constantly on the
importance of the South East to the upturn. If we do not grow
the South East economy at the head of the upturn, we will not
grow the UK economy either. We need the investment that will enable
this to happen".[145]
134. Ross McNally of the South East Chambers of Commerce,
told us that he would like SEEDA to be focusing on business priorities
in the region, to be totally business-led and responding to business
need. He also urged RDAs to be innovative and to create real enterprise
in new areas, seeing the role of the RDA as "agenda sharing
and leveraging activities on a local basis - so that the total
is greater than the sum of its parts".[146]
135. In their evidence to us, the Regional Minister
and SEEDA pointed to the Hindhead Tunnel as an example of leveraging
investment in the South East and enabling local authorities to
work together for the benefit of the region.[147]
136. SEEDA told us that, "because we have such
high economic activity rates in the South East, we are not looking
to create jobs, we are looking to create high value jobs and to
increase skills, particularly in those parts of the region that
are underperforming in comparison with the average".[148]
SEEDA wants to focus on sectors such as low-carbon, information
and communications technology, creative and digital industries.
It said, 'We believe that the focus on key sectors is very important.
In reshaping SEEDA and its budgets, we are looking at how we identify
not the winners but how we enable the potential winners of the
future to have the infrastructure that will enable them to grow,
expand and innovate".[149]
Hi tech traditions
137. In its written evidence SEDfIG told us that
the South East needed to build upon its knowledge economy strengths
and develop the potential of its world class industries: "a
range of leading ICT, bioscience, engineering and medicine/pharmaceuticals
industries exist within the South East. Looking forward, regional
policy should seek to sustain and expand these industries, exploiting
opportunities for future growth and development".[150]
138. The current RES focus what it means to be a
world class region places a strong emphasis on innovation drivers
and investment in science and technology.[151]
To this end SEEDA is reviewing the sectors in the South East
that "will really drive the growth and ensure that we are
leading world class development, whether it is in environmental
technologies, aerospace or the creative industries, to see what
our businesses need to support them in those markets."[152]
Innovation and a low carbon future
139. Pam Alexander, Chief Executive of SEEDA, realises
that SEEDA does not have all the skills required as "our
job is to build the capacity and make the partnerships work by
bringing people together to lead on those areas, rather than trying
to become expert in everything ourselves". She went on to
emphasise future priorities for SEEDA and said that, "We
believe in our RES very clearly that sustainability is an opportunity
for jobs, exports and innovation. That is at the heart of where
we now believe is the way out of this recession. The low carbon
strategy is something that we were putting in the RES three years
ago. We believe it is absolutely right to keep it central to what
we are trying to do."[153]
140. Harvey Bradshaw of the Environment Agency said
that the key challenge facing SEEDA was that "in the pursuit
of growth and regeneration, the environment will be seen as a
cost rather than an opportunity. However he emphasised the Environment
agency's close relationship with SEEDA, describing SEEDA as a
"valuable partner", and related discussions where all
had agreed that the environment needed to go hand in hand with
economic and social regeneration. He also told us that moving
towards a low carbon economy was a huge opportunity and that there
was already a tide of commitment to that thinking. He said he
would be delighted to work with SEEDA on progressing this area
and that, "SEEDA runs projects - a pathway to zero waste,
and a low carbon for home project - that we are pleased to collaborate
with. It has recently invited us on to the environmental technology
steering group, which it chairs, whose function is to see how
to attract high value added jobs based around the low carbon industry
into the South East, and to become competitive in the global market
for that field."[154]
141. Harvey Bradshaw agreed that SEEDA should use
its position to draw in skills from elsewhere and bring together
partnerships: "There is a relatively small number of people
out there who can help us to deliver the sort of innovation that
we need. These people are by no means common, and I think that
there is a commitment in SEEDA to try to pull in those skills
and use them in the best possible way."[155]
142. Harvey Bradshaw also stated that this was an
opportunity to think in a different way and said that, "Many
people believe this is an opportunity to shift the economic cycle
fundamentally, rather than going back to what we have done in
the past."[156]
In its written evidence the Environment Agency gave further confirmation
of sustainability moving up the agenda and stated that, "while
credit from more traditional means has been squeezed, more loans
have become available for 'green businesses' or businesses that
wish to upgrade their equipment to save energy and save money."
Overall the Environment Agency's position aligned with SEEDA's
focus on key sectors, and they told us that, "we feel the
time is right to take practical action to help the region emerge
from the economic downturn with a low carbon economy that is both
more environmentally sensitive and more competitive".[157]
143. We have
heard evidence that SEEDA works well with the Environment Agency
and the Homes and Communities Agency in the region. We welcome
this close working and believe that the identification of the
right skills and mechanisms to bring together thinking on economic
development, regeneration, sustainability, environmental infrastructure
and a low carbon economy will be vital in the years ahead.
145 Q 152 Back
146
Q 67 Back
147
Q 147 Back
148
Q 3 Back
149
Q 26 Back
150
Ev 115 Back
151
Q 157 Back
152
Q 158 Back
153
Q 25 Back
154
Q 130 Back
155
Q 136 Back
156
Q 130 Back
157
Ev 50 Back
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