Agenda item

(i)         Joint Report of the Assistant Chief Executive and Corporate Director of Regeneration and Economic Development.

(ii)        Presentation by the Spatial Policy Team Leader, Regeneration and Economic Development.

The Chairman introduced the Spatial Policy Team Leader, Regeneration and Economic Development, Maria Antoniou who was in attendance to give an update for Members in relation to Improving Economic Governance in the NELEP area (for copy see file of minutes).

The Spatial Policy Team Leader reminded Members of the North East Independent Economic Review (NEIER) report that was published in April 2013 with creating “more and better jobs” being at the heart of its agenda, in the order of 60,000 for the region.  Members noted that the popular view of overreliance on the public sector was not necessarily correct, rather a weakened private sector needed to be strengthened.  Councillors learned that social inclusion and employability had been identified as a gap.  The Committee were reminded that the NEIER report made 14 recommendations, with the top five priorities as identified by Lord Adonis, the lead on the NEIER report, were:

·        To promote the region at home and abroad as a magnet for trade, talent, tourism and inward investment

·        A doubling in the number of youth apprenticeships, alongside higher school standards and an increase in the proportion going on to higher education

·        The development of strong “innovation and growth clusters”

·        Big improvements in transport infrastructure and services

·        The creation of stronger public institutions, including the location of key national institutions, such as the new British Business Park, in the North East

Members were reminded that the NEIER endorsed the commitment of the Local Authority Leaders and Elected Mayor (LA7) on the establishment of a new statutory body in the form of a Combined Authority (CA). 

The Spatial Policy Team Leader explained that at a conference on 6 September 2013 there had been a lot of progress reported including: Skills Plan; partnerships with Schools; Skills Incentive Partners, with 2 other LEPs; access to 3^rd Round EGF and Joint European Resources for Micro to Medium Enterprises (JEREMIE); a concierge service for one point of contact for the “North East”; the appointment of an “Inward Investment Manager”; discussions regarding transatlantic routes being opened up via Newcastle Airport; the use of the Leamside Line for freight, freeing up the main East Coast line with Network Rail, Highways Agency being involved; Pinch Point funding from the Department of Transport; and the devolution of transport funding, including specific projects such as a Rail Station for Horden. 

The Committee noted that there would be a Strategic Economic Plan (SEP) and Local Growth Deals (LGDs) from Government in response to the Heseltine Review.  Members noted that the SEP would provide the opportunity to develop a shared approach for the North East and that the SEP was to: articulate the shared strategic economic vision for local growth; provide the overarching policy framework and implementation plan for the region; create the basis for prioritisation of a range of investment funds and alignment of local assets and resources; and create the basis for negotiation of a LGD.  It was added that the SEP must also frame a multi-year implementation plan, to be assessed by Government, and that the NEIER helped to provide an appropriate evidence base.

The Spatial Policy Team Leader explained that having the CA was critical in being able to have financial and political accountability and Members were reminded as regards what a CA was and was not, as previously brought to Committee in June.  Members noted the approach of the CA and also the economic growth responsibilities including:

·        Setting the growth plan and investment strategy for the North East

·        Economic intelligence and analysis as a basis for strategic planning and coordination

·        Acting as the accountable body for a range of devolved funding

·        Strategy and decision-making on the skills agenda across the North East

·        Coordinating inward investment activity through an “Investment Gateway” working with Local Authority Economic Development Teams

The Committee noted that the CA would take responsibility for some transport functions: preparation of the Local Transport Plan; preparation of a bus strategy; powers to make a Quality Partnership Scheme or Quality Contract Scheme; and the making of joint and through ticketing schemes.  It was added that several operational functions would still be devolved to Local Authorities: information provision; infrastructure delivery; commissioning/procurement of subsidised bus services; and concessionary travel.

Members were provided with a list of milestones in respect of Government and Local issues and next steps were for the CA to be established in shadow form as soon as possible; the Secretary of State to be consulted on proposals and a Lords and MPs event in October; Parliamentary debate, January 2014; and 1 April 2014, proposed establishment of a CA alongside those for South Yorkshire and West Yorkshire.

The Chairman thanked the Spatial Policy Team Leader and asked Members for their questions. 

Members asked questions as regards how Scrutiny arrangements would be developed; measuring delivery of the CA; processes and strategies in place should a Local Authority come out of the CA; a simplified “flow chart” to allow the “man in the industrial estate” to understand the new arrangements and provide a single point of contact.

The Spatial Policy Team Leader noted that whilst all areas nationally had LEPs, not all had a CA in place and that staff from the NELEP and Local Authorities were working on the SEP and updates on progress would be brought back to Members via this Committee.

Resolved:    

(i)         That the report and presentation be noted.

(ii)        That the Economy and Enterprise Overview and Scrutiny Committee continues to     receive future updates on the development of the Combined Authority including         detail of governance and Scrutiny arrangements.