Agenda item

Attached is a copy of the report to be considered by the Cabinet on 29 July.  The views of the Commission will be reported to the Cabinet.

 

The Commission considered a report of the Chief Executive concerning the establishment of an Economic Development Company (EDC) across Leicester and Leicestershire and the early appointment of a Chief Executive for the new organisation.  A copy of the report marked ‘B’ is filed with these minutes.

 

The Commission also received a powerpoint presentation on the key elements of the proposals. A copy of the slides used in the presentation are also filed with these minutes.

 

In response to questions and comments the Commission was advised as follows:

 

i)          The consultants advising the City and County Council had, in arriving at their recommendations, taken into account arrangements in other authorities including Nottinghamshire and Newcastle;

 

ii)                  Whilst the EDC as a delivery body would contain strong representation from private and business sector interests, the City, County and District Leaders who served on the Leadership Group would provide the strategic direction and performance management;

 

iii)                As part of the proposals, the Leicestershire Economic Partnership (LSEP), the Welland Partnership and the Leicester Regeneration Company would cease to exist. LeicesterShire Promotions would continue to supply tourism services but the new EDC would also have a key role in ‘place marketing’.

 

iv)                Whilst the detailed implications of the recent RSS guidance were still to be assessed, it appeared on an initial assessment that the RSS guidance would support the approach to economic development as set out in the report;

 

v)                  The further work required outlined in paragraph 18 of the report would be particularly challenging. Part of this process would involve conducting a ‘due diligence’ exercise; this needed to be undertaken to ensure that an independent and expert view was obtained;

 

vi)                The five year budget would be an indicative budget for planning purposes only ;

 

vii)              Whilst the concerns expressed by some members about City domination of the EDC were noted, an assurance was given that the governance arrangements in place would ensure that the views and concerns of businesses in the County market towns and rural centres would be highlighted through appropriate representation at all levels within the structure.

 

Discussion then ensued on the possible arrangements for scrutiny of the new arrangements. The following were put forward as possible options:

 

• Scrutiny of the Leadership Group which comprises the County, City and District Leaders as this body would be responsible for providing the strategic direction and setting the framework for delivery plans;

 

• Inviting the Chief Executive of the EDC to report on the activities and achievements of the company’;

 

• Establishing a joint committee involving the City and County and Council to scrutinise the Leadership Group and/or the EDC thereby avoiding multiple scrutiny recognising that consideration would need to be given to the role of District Councils in any such body.

 

RESOLVED:

 

a)         That the Cabinet be advised that the Commission:-

 

i)                    supports the establishment of an Economic Development Company (EDC) on the basis outlined in the report;

 

ii)                  has concerns about the amount of further work yet to be undertaken (outlined in paragraph 18 of the report) to ensure the successful establishment of the new Company and would urge the Cabinet to ensure that all partners commit the appropriate level of resources required to avoid slippage on the proposed timetable;

 

iii)                has some concerns about the continued role of LeicesterShire Promotions within the proposed new structure, particular in relation to its role of promoting the City and County as a tourist destination;

 

b)         That further consideration be given to mechanisms and structures for scrutiny of the new arrangements for delivering economic development and associated activity;

 

c)         That Leicestershire Promotions be invited to a future meeting of the Commission to provide information on its work in the County area.