PAPER C

Committee: ECONOMIC DEVELOPMENT, PLANNING, TOURISM AND LEISURE SERVICES SELECT COMMITTEE

Date : 27 MAY 2002

Title FUTURE DELIVERY OF ECONOMIC DEVELOPMENT SERVICES

REPORT OF THE STRATEGIC DIRECTOR, EDUCATION AND COMMUNITY DEVELOPMENT

SUMMARY/PURPOSE

This report outlines the future arrangements for delivery of the Council=s economic development services and the proposed reporting arrangements to the Select Committee.

BACKGROUND

In April 1999 the Council determined to deliver its economic development services through a Service Level Agreement with the Isle of Wight Partnership which brought together a number of agencies into a single organisation. As part of its contribution the Council seconded the staff of the Economic Development Unit together with a cash contribution of ,60,000 pa.

Financial difficulties arising from changes in Government policy in the delivery of training and business support services have required a reorganisation of the service during 2001/02. Now re-named the Isle of Wight Economic Partnership (IWEP), the agency has been re-focused upon 2 main areas of activity B inward investment and area regeneration. The Policy & Strategy Team of Council secondees has now returned to the authority (as the Economic Development Unit) advising the Council and the IWEP Board on strategic matters, research and bid development.

The Council=s relationship with the IWEP is governed through a Service Level Agreement (SLA) which sets out the nature and terms of the authority=s support for the Partnership. In the current year, the Council is making a cash contribution of ,104,000 together with the continuing secondment of 3 staff. A new SLA setting out the terms of the Council=s relationship with the Partnership is currently being drawn up.

FUTURE DELIVERY OF THE SERVICE

Promoting economic development and social regeneration is a key corporate objective of the Council. Under the new organisational arrangements the delivery of the service is shared between the Partnership and the Council as follows :

A. ISLE OF WIGHT ECONOMIC PARTNERSHIP (IWEP)

The Partnership is essentially the delivery arm of the service with specific responsibility for the following executive functions :

1. Inward Investment & Marketing team

- led by Mike King, the team is responsible for activities aimed at attracting new jobs and investment to the Island and growing our existing business base. More specifically, the objectives of the team are:

C to provide a Aone stop@ investor handling service for new and existing businesses

C to market the Island as an investment opportunity

C to facilitate the provision of sites and premises for new and existing businesses

C to manage the Enterprise Hub B a managed workspace facility based at the St Cross Business Park aimed at highBtech companies

C to promote innovation and technology transfer activities

2 Area Regeneration team

- led by Liz Wood, the team is responsible for delivery of the Partnership=s area regeneration programmes B principally the Single Regeneration Budget (SRB) and Rural Development Programme (RDP). More specifically, the objectives of the team are :

C to deliver the four on-going SRB programmes

C to deliver the on-going RDP programme

C to deliver the Leader+ programme (a European Union programme aimed at supporting rural regeneration)

C to deliver the Healthy Living programme

C to support the development of sustainable local regeneration partnerships

C to manage the financial affairs of the IWEP

B. THE ISLE OF WIGHT COUNCIL

Under the new arrangements, the Council has taken on responsibility for advising the IWEP Board on the strategic policy aspects of the economic development service. This is delivered by the Economic Development Unit.

Economic Development Unit

- led by John Bentley, the team is responsible for advising the IWEP Board on strategic policy matters and for advising the Council generally on all aspects of the service. More specifically, the objectives of the team are :

C to oversee the Council=s Service Level Agreement with the IWEP setting out the nature and terms of the authority=s support

C to co-ordinate implementation and review of the Island Regeneration Strategy and advise the IWEP Board and partners agencies on strategic policy issues and operational responses

C to co-ordinate European policy initiatives

C to co-ordinate bid development activities and maximise the levels of external funding attracted to the Island

C to provide a research and information service

The activities of the Partnership are overseen by a Board of Directors made up as follows :

Chairman : Danny Fisher / Yokakawa Marex

Directors : Cllr Shirley Smart, Leader, IoW Council

Cllr Harry Rees, Economic Development Portfolio holder,

IoW Council

Alan Kaye / Head of Paid Service, IoW Council

Paul Ruddling / SP Systems

Brian Friend / AMS

Chris Bland / Hovertravel

Michael White / RCC

LIAISON WITH THE SELECT COMMITTEE

As highlighted in the recent economic development best value review, which was reported to the Select Committee in April, there is a need to establish a closer working relationship between the Council and the IWEP, particularly as regards the role of the Select Committee.

The nature of the working relationship will be formally set out in a new Service Level Agreement (SLA) which is in the course of being drawn up. The SLA will set out arrangements for a number of issues :

C Details of the joint objectives of the partnership arrangement

C Details of the Council=s contribution to the IWEP in terms of both staff secondments and financial contributions

C Details of the Council=s requirements as regards reporting arrangements to the authority on Partnership activities and expenditure

C Details of the Partnership=s contribution to implementing the Service Improvement Plan arising from the best value review

Reporting arrangements to the Select Committee will be as follows :

C Quarterly activity reports detailing operational activities in the previous quarter

C End of year AAnnual Report@ summarising activities and achievements over the year

C Ad hoc reports and presentations as requested by the Committee

The Portfolio Holder for Economic Development, who is a member of the IWEP Board, will also continue to keep the Committee informed of developments and activities in the service.

CONCLUSION

Notwithstanding the difficulties experienced by the Partnership over the past year, the agency has continued to perform at a high level. The new Service Level Agreement and reporting arrangements to the Council and the Select Committee will provide the basis for a sound working relationship between the authority and the Partnership.

RECOMMENDATIONS

THAT the Select Committee is invited to comment upon and approve the proposed reporting arrangements to the Council.

BACKGROUND PAPERS

Economic Development Best Value Review

Contact point : John Bentley, Head of Economic Development Tel. 823346

ALAN KAYE

Strategic Director

Education and Community Development