PAPER B
Purpose : for Decision
REPORT TO THE EXECUTIVE
Date
: 16 JUNE 2004
Title : REPORT OF THE ISLE OF WIGHT ECONOMIC PARTNERSHIP
REPORT OF THE PORTFOLIO HOLDER FOR ECONOMIC DEVELOPMENT,
UK AND EU, REWGIONAL ISSUES
IMPLEMENTATION DATE : 28 June
2004
SUMMARY/PURPOSE
1
To
receive, as part of the performance management system, the quarterly report of
the Isle of Wight Economic Partnership and consider what, if any, actions to
take in order to ensure the delivery of economic development objectives.
BACKGROUND
2
On
3rd December the Executive resolved to manage and monitor the work
of the IWEP on a quarterly basis as part of its contract management role. The
summary of the IWEP's activities attached to this report is provided for this
purpose and an officer from the IWEP will attend to answer Members' questions.
3
Appendix
1 covers the activities of IWEP for the period January – March 2004. It
provides an overview of performance on all IWEP activities and is not restricted
to the relatively small proportion of those activities which are funded by the
Council.
4
This
extra information allows the Executive to keep under review the totality of the
IWEP’s contribution to economic development activity on the island and consider
whether the Council's own contribution is appropriate in relation to the
activities undertaken by other agencies.
5
IWEP
activities particularly worth noting described in Appendix 1 are:
Finance – the IWEP have made a small
surplus for the year 2003/04.
Cowes Waterfront – this continues to make good
progress and is seen as a flagship project, not just for the Island, but for
the SE region. Every effort should be
made by all parties to continue to maximise the benefits that this project can
bring to the Island and demonstrate to SEEDA just what the Island can do when
given opportunity, resources and support.
PSA Target 11 – this has been the subject
of previous reports, but in spite of various problems 75% of the annual target
has been achieved in 50% of the time (ie six months). Council staff have had discussions with the IWEP and are working
together to continue taking this forward.
Leader+ - Members were informed in
previous reports that the Island had been invited to bid for additional funds
which became available as a result of underspend in other areas. £135,000 has now been approved.
RDP and SRB V – both of these programmes
came to an end in March 2004 and both have achieved targets significantly in
excess of those originally set.
STRATEGIC CONTEXT
7.
The
Council delivers its economic development activities through the IWEP. These contribute to the achievement of the
Corporate Objective “encouraging job creation and economic prosperity”
contained in the Corporate Plan. The Executive should be aware that although
economic development is a discretionary function for the Authority its
significance will be increased in the next CPA round (2006) when these
activities will be included in the assessment.
8.
In addition to
contributing to 2 PSA targets (supporting business & job creation, and
encouraging over 50s into work), the IWEP's contribution is crucial to
achieving the recommendations of the Best Value review of Economic Development
and the Audit Commission report on Partnerships. The completion of any
outstanding recommendations will be considered as part of the review of the SLA
for 2005/06.
CONSULTATION
9.
As a report on
past activity, consultation in the preparation of the report is unnecessary.
However, Economic Development, Planning and Tourism Select Committee continue
to receive reports from the IWEP on a regular basis so that it can examine the
extent to which the island is being well served by the Executive’s approach to
economic well-being and development and, by extension, by the current multi
agency activity.
FINANCIAL/BUDGET IMPLICATIONS
10
For the financial
year 2004/05 the Council will contribute £94,000 in cash to the IWEP, in
addition to which there are seconded staff as described in the Service Level
Agreement. The Council continue to meet
the agreement to pay rent on Enterprise House should the IWEP be unable to do
so. This amounts to £135,000 per year
paid in quarterly instalments of £33,750. The IWEP's growth bid for the
financial year 2004 / 05 was considered, together with all other growth bids,
as part of the budget making process concluded by Full Council recently, but
was not approved.
LEGAL IMPLICATIONS
11.
The council has a
duty under the Local Government Act 1999 (and subsequent circulars) to deliver
best value. In respect of economic development and regeneration it is
considered that this is best accomplished through the letting and management of
the contract with the IWEP.
12.
More
significantly, there is a duty to keep under review the use of discretionary
economic well-being powers under part 1 Local Government Act 2000.
OPTIONS
i To receive the report from the IWEP and resolve what
actions should be taken in respect of any areas of concern
ii To receive the report from the IWEP and wait until the next
quarterly report before deciding if there are additional actions the Executive
would wish to see being taken
EVALUATION/RISK MANAGEMENT
13.
The
Executive resolved in December that it would continue to undertake contract
management itself through the continued receipt of quarterly reports.
RECOMMENDATIONS
Option ii
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BACKGROUND PAPERS
14 Service Level Agreement between the Council and IWEP
15 Legal
Agreements between the Council and IWEP undertaking to guarantee payment of the
rent on the properties known as Enterprise House and the Innovation Centre, St
Cross Business Park, Newport, should the IWEP be unable to do so.
ADDITIONAL INFORMATION
Appendix 1 – IWEP Activities –
Quarterly Report 2004
Contact Point :Lesley Williams, Principal Economic Development
Officer
Tel: +44 (0)1983 823797 email:
[email protected]
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D ROWELL
Strategic Director for
Environment Services
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H REES
Portfolio Holder for
Economic Development, UK and EU, Regional Issues
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