South East England Development Agency and the Regional Economic Strategy - South East Regional Committee Contents


Memorandum submitted by Southern & Eastern Regional Trades Union Congress (SE 14)

INTRODUCTION

  The Southern and Eastern Region of the Trades Union Congress (SERTUC) represents around 800,000 trade union members and their families in the SEEDA Region. In the Greater South East of England (SEEDA, EEDA and LDA), SERTUC represents more than two million trade unionists.

TUC affiliated trade unions represent the workforces in the private, public and voluntary sectors.

In the private sector: manufacturing, food, construction, the wide range of the service industries that make up the service sector, health and social care, finance sector, hospitality, retail, utilities, printing and publishing, creative, communications, media and transport.

  In the public sector: government departments, government agencies, local government, postal, health and social care, all areas and levels of education.

  In the voluntary sector: trade union members are in all the wide variety of paid voluntary sector activities. Many individual trade union members are also unpaid volunteers in voluntary organisations

  Trade unions and their members make a significant contribution to the economy of the South East and play a major part in its development.

  In reality, there is not a sector of the economy or community that trade unions and their members do not have an involvement or interest in.

  SERTUC is pleased to make a contribution to the South East Regional Select Committee inquiry into the South East England Development Agency and the Regional Economic Strategy. SERTUC would also be willing to attend the inquiry to answer any questions on our submission or any other questions the committee might like to ask.

KEY BULLET POINTS

    — SEEDA makes good efforts to be accountable. — SEEDA has shown willingness to engage partners and stakeholders in developing the RES.

    — The RES is widely tested for "Fit for Purpose".

    — Manufacturing in the south east is the powerhouse of the UK economy and must be supported. Public sector investment is a key factor against economic depression.

    — Proposed changes to RDAs give us concern about a possible increase in narrow local or party-political focussed interests, rather than the wider strategic picture.

    — SEEDA has developed a relationship with public and private sectors across government agencies.

    — Business support is more than Business Link.

The role, responsibilities and accountability of SEEDA

  1.  SERTUC believes that SEEDA takes its role and responsibilities seriously and therefore tries to make itself accountable. SERTUC has always had an open relationship with SEEDA. We have attended all the annual SEEDA meetings and have found them useful and informative.

  2.  SERTUC has been to the recent economic briefings (which also included the Minister for the South East Jonathan Shaw) and found them well organised with a cross section of views. SEEDA's stewardship of these meetings has led to healthy debate and an openness on the realities of the economic issues facing the South East.

  3.  SERTUC has also submitted evidence (both written and oral) to the SEERA Select Committees. SEEDA's performance at these SEERA Select Committees has been robust, open and willing to listen and take on board any criticism and respond in a positive way.

The process by which the RES was drawn up and the level of involvement of regional stakeholders

  4.  SEEDA is unique in that it is the only Regional Development Agency in England that has a Social Dialogue Forum. This forum brings together representatives of business (CBI, IOD, EEF, TUC, trade unions), major private sector companies, and from the public sector regional local authority representatives, GOSE, NHS, as well as Government Agencies HSE and ACAS. Thus the SDF is a major stakeholder grouping.

5.  The SDF is chaired by a SEEDA Board member and has an agreed work programme. Through the chair the SDF reports directly to the SEEDA Board. During the process of drawing up the Regional Economic Strategy the SDF had a very close involvement and was able to input a joint SDF submission. This was clearly important as it put forward the unified view of the major partners of the economic priorities of the region. At every stage of the evolving RES, the SDF and its members were consulted and at a number of the regional road shows SDF members gave presentations. This process went on with other regional stakeholders. Within the process of developing the RES, stakeholders like the SDF were allocated the responsibility of delivering on key targets of the RES.

  6.  SERTUC, through its Regional Secretary, is part of the senior group of regional stakeholders monitoring the progress of the RES (SEEDA's RES Steering Group), and SERTUC has attended the ongoing RES Partner meetings.

The effectiveness of the RES for the South East in delivering against its targets including the degree to which the regeneration of areas of deprivation and the former coalfield areas has been successful

  7.  With the economic downturn it is SERTUC's understanding that the RES has been constantly tested as to effectiveness and relevance to the current economic situation, this has certainly been the most important theme at any economic briefing: "is the RES fit for purpose". Prior to the downturn, SEEDA recognised the need for regeneration, not just of the coalfield areas, but in areas like Hastings and Chatham, where regeneration has led to economic improvements and thereby improvements in the standard of living—not just financially, but also regarding the well being of the community.

8.  SEEDA's strategy, set out in its Coastal Contours Policy document, is an attempt to deal with the differing level and types of economy (rural, urban) and deprivation that impact on a very diverse region.

The effect of the financial and economic situation on businesses in the region including the effect on different sectors such as manufacturing, service industries etc

  9.  SERTUC's view is that the current financial and economic situation is impacting on the south east economy in differing ways: sectoral, geographical, differing timing of impacts—and not just on the private sector, but also on the public sector.

10.  SERTUC is concerned that the strong regional manufacturing base is being eroded and a strong emphasis should be kept by funding (with possible wage subsidy schemes) skills and training maintenance, with robust provisions for public sector procurement.

  11.  SERTUC is very concerned about the drop in job vacancy levels in already deprived areas (for example the Isle of Wight). The drop in job vacancy levels will impact on those entering the job market, either for the first time or for those wanting to come back.

  12.  In the financial sector, the differential impact of job losses, especially to the lower paid and mainly female employment. SERTUC is very concerned by the job losses in the public sector, particularly in local authorities, which we feel are unnecessary.

  13.  SERTUC also recognises that some parts of the south east economy are holding up well and the south east has a fairly robust economic structure. SERTUC believes that if the economic downturn continues for a long period of time, the debilitating effect will not only be in the south east, but the UK economy as a whole. The SEEDA region, as part of the Greater South East, is the economic powerhouse of the UK's economy. SERTUC believes that more, rather than less, financial investment, whether public or private, should come to the south east.

The changes to regional policy proposed in the Local Democracy, Economic Development and Construction Bill and the potential effect on the work of SEEDA

  14.  SERTUC has serious concerns about the shift of emphasis from a pan-regional approach to a more sub-regional approach. We recognise the need to involve local stakeholders, democratic structures, the community and those socially excluded, as well as specifically local needs. However we know that economic and employment interests have political boundaries that are porous, and that there are wider social and economic interests that go beyond any sub-regional or local authority boundaries.

15.  The south east is particularly impacted on by its interrelationship across and beyond the region, with its travel to work patterns and the importance of London, its global companies who are located in the south east because of its international transport links, along with its relative high skill and highly educated workforce that attracts companies—the south east has national and global importance.

  16.  SERTUC is particularly concerned that in the proposed restructure narrow local interests could prevail, and that, indeed, powers devolved to a sub-regional or sub-sub-regional level could be abused for party political purposes.

  17.  In addition, it is looking extremely likely that stakeholders who are now currently involved in shaping the region will be excluded or pushed to the sidelines.

  18.  We should note here that cuts to Regional Development Agencies' funding are likely to threaten the continued meaningful engagement of regional partners.

The role of other Government agencies such as the Government Office for the South East, and of partnerships between Government agencies, local government and the private sector, in delivering the aims of the RES

  19.  SEEDA has developed a good relationship with GOSE and the various Government Departments and other government agencies, such as HSE and ACAS, along with the private sector. To illustrate this relationship, SERTUC can give two examples:

    (a) The Social Dialogue Forum of SEEDA, which brings together private, public sector, government agencies, and trade unions to deliver key RES objectives on: Older workers, Flexible working, Healthy workplaces. The SDF is working with SEEDA and other stakeholders and partners to develop a coordinated approach to the delivery of these RES objectives.

    (b) Workwise South East is part funded by SEEDA and chaired by the Department of Health Regional Public Health Director, with partners from the public and private sectors, and trade unions from the SDF.

How effective initiatives such as Business Link are being in assisting businesses in the current climate, including helping them to gain access to funding both from Government funding streams and through the banking system

  20.  Business Link has recently been reorganised to have a stronger regional focus and now provides a more integrated service to its small business clients, it is developing but has a narrow client base of SMEs. Business Link produces on a regular basis its Hot Topics Spotlight, which covers business issues impacting on the region including banking and loans. Importantly, SEEDA has initiated with JCP and ACAS its Continuing Employment Support Service (CESS), which is a rapid response to threatened or real redundancy situations, and covers all sectors of the private sector, large and small companies. SEEDA has also provided its own loan scheme. Business Link should not be seen on its own but as a part of a wider business support provided by SEEDA.

21.  SEEDA has organised regular meetings with regional banking leaders—SERTUC remains to be convinced that the banks are responding appropriately to the requests, from either SEEDA or the government, as regards appropriate loans being made available in a timely fashion to either employers for business development, or to individuals for mortgages for house purchase.





 
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Prepared 23 September 2009