Nine new development agencies are at the heart of government proposals for English regional regeneration, published in a White Paper on December 3. Building Partnerships for Prosperity says the agencies will be business-led bodies with representation from other regional interests including the voluntary sector and local government. Their five core responsibilities will be:
economic development and regeneration;
competitiveness, business support and investment;
skills;
employment;
sustainable development.
Subject to Parliamentary approval, they will be fully operational by April 1999, administering existing single regeneration budget funds. They are also taking on functions from English Partnerships and the Rural Development Commission. Boundaries will follow existing Government Regions except in the north west where there will be only one including Merseyside.
Crucially the RDAs are not being given control over TEC budgets, which remain with the education and employment department, and instead will have to coordinate activities with them. Likewise they will only have a duty to consult regional chambers, the newly emerging bodies comprising local government and other interests, and not have to follow any strategy they set. Contact DETR Enquiries on 0171 890 3000
TAKING LOCAL CONTROL
Local communities must be allowed to take centre stage in decision-making about regeneration, a policy report by the New Economics Foundation has argued. Taking Power was launched on December 3 by the architect, Richard Rogers, and calls for more of the single regeneration budget to be allocated to community projects, rather than public/private partnerships. It also wants two new funds, the Community Development Finance Fund and the Community Technical Assistance Fund, to foster greater self-sufficiency. Contact Ed Mayo, NEF, on 0171 377 5696
PRACTISING PARTNERSHIPS
The Department of the Environment, Transport and the Regions has produced a good practice guide on local authorities involvement in private companies. Issued at the start of December, it aims to foster partnerships with the private sector in regeneration and in areas such as leisure services, transport and marketing. Contact DETR Publications on 0171 890 3000
Comment
The new regional development agencies, coupled with fully-fledged regional government for London and talking shop chambers elsewhere in England, amount to a radical shake-up of the regeneration infrastructure. Companies involved in partnerships need to understand these changes and put in place their own arrangements to relate at a regional level.
The big question was always whether central government – the officials as much as the politicians – would ever allow real decentralisation of power and decision-making. In one critical aspect, on TEC and Business Link funding from the DfEE, the cynics have been proved right. Likewise with the DTI’s retention of inward investment funding. No amount of goodwill and “close coordination” will force TECs to follow the regional strategies drawn up by the RDAs if their paymasters say otherwise.
Business people risk being sold a pig in a poke, just as many feel happened under the last government with promised TEC autonomy. Without real control over all available regional regeneration and enterprise funding, the RDAs will be business-led in name only. As the proposals go through Parliament, individual companies and bodies such as the CBI and BITC must make it clear that without more powers, business leaders of calibre are unlikely to get involved.
Plans for new business-led regional agencies mark the start of a radical shake-up in the way companies can contribute to economic regeneration. But will business leaders want to get involved if the agenices lack freedom and adequate resources?
The new regional development agencies, coupled with fully-fledged regional government for London and talking shop chambers elsewhere in England, amount to a radical shake-up of the regeneration infrastructure. Companies involved in partnerships need to understand these changes and put in place their own arrangements to relate at a regional level.
The big question was always whether central government – the officials as much as the politicians – would ever allow real decentralisation of power and decision-making. In one critical aspect, on TEC and Business Link funding from the DfEE, the cynics have been proved right. Likewise with the DTI’s retention of inward investment funding. No amount of goodwill and “close coordination” will force TECs to follow the regional strategies drawn up by the RDAs if their paymasters say otherwise.
Business people risk being sold a pig in a poke, just as many feel happened under the last government with promised TEC autonomy. Without real control over all available regional regeneration and enterprise funding, the RDAs will be business-led in name only. As the proposals go through Parliament, individual companies and bodies such as the CBI and BITC must make it clear that without more powers, business leaders of calibre are unlikely to get involved.
COMMENTS