NWDA Business & Closure Plan 2011/12

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NWDA BUSINESS/ CLOSURE PLAN 2011/12 CONTENTS

1 Foreword 2 Context summary including:

Background to complexity of NWDA What has been done already to close What has to be done in 2011/12

3 Resource Planning

Redundancy programme De-commitment and Balancing the Agency’s Budget

4 Closure of the Agency

Statutory Requirements Transition Programme Plan Assets and Liabilities Knowledge Management

5 Closure of programmes

6 2011/12 Delivery

Sectors Enterprise Support Science and Innovation Internationalisation Skills and Employment Capital Investment Rural Energy and Environment Marketing Strategic Influence

7 Legacy Document/Legacy Issues 8 The Future

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NWDA BUSINESS/CLOSURE PLAN 2011/12 1 FOREWORD by Chairman/ Chief Executive Government has decided that all RDAs will be abolished and new arrangements put in place for economic development in England. This will therefore be the final year of activity for NWDA. The primary focus for the Agency during 2011/12 will be to close down its business effectively and efficiently, including a smooth transfer of those functions which are to be handed to successor bodies. NWDA’s Board is keen to ensure that the Agency’s legacy supports continuing improvement in the performance of the North West economy. We will publish a document, (in two parts - part one in June and part two in the Autumn) which will tell the story of the Agency over the last 12 years, setting out what we have learned and provide details of how some key activities will be taken forward after we have closed. This Business/Closure Plan sets out our main activities for 2011/12. This includes ongoing delivery of some key projects and programmes which are supporting the North West economy. During 2011/12 we will be looking to close programmes and projects or hand them over in good order to partners to ensure that the long term economic benefits are delivered. We now have clarity around those functions where there will be a statutory transfer to other bodies. Delivery of the European Regional Development Fund (ERDF) will move to the Department of Communities and Local Government. Similarly, the Rural Development Programme for England (RDPE) will move to the Department for Environment, Food and Rural Affairs. Our Inward Investment work will pass to United Kingdom Trade and Investment (UKTI). We are pleased that a number of our staff will continue to work on those functions with successor organisations. We are also looking to ensure that, where possible, other functions which continue to be important to the development of the North West economy have a home post-March 2012. The Agency has been supporting and working with the Regional Transition Team (established by the Regional Leaders Board) to develop the opportunities in a number of areas such as business support, research, sector development and Europe. Our people have been instrumental to the Agency’s success over the last 12 years and we have sought to ensure that we have in place a robust resource and support plan for 2011/12. This sets out a systematic approach to reducing staff numbers in line with business needs, so that staff leave the organisation in one of three “waves” between now and March 2012. We have put in place a support package for our staff to equip them, as far as possible, with the skills and expertise needed to go out into the job market and continue to be successful. This will continue to be delivered throughout the forthcoming year.

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It is with great sadness that we must close the Agency. However, we must also realise that things cannot stay the same and we hope that in the future the Agency will be remembered for its drive and determination in delivering improvements to the North West to make it a place where people choose to live, learn, work and play.

--------------------------------------------- ---------------------------------------- ROBERT HOUGH MARK HUGHES Chairman Chief Executive May 2011 May 2011

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2 NWDA – THE CLOSURE CONTEXT The Agency has a large, varied and complex portfolio of assets and liabilities, including 6000 asset/liabilities records. This is a result of the range of activities we have been involved in over our lifetime including: Delivering £3.6bn expenditure, representing over 4,000 projects and programmes

across the region. These ranged from: very large complex projects; programmes of economic regeneration within an area; smaller shorter-term projects to support businesses; and projects to improve the skills and employment prospects for individuals.

Establishing, either directly, or in partnership with others, a number of delivery

bodies to ensure economic regeneration in specific areas of need. This included a range of Urban Regeneration Companies and Special Purpose Vehicles. We also supported the establishment of five Sub-Regional Economic Partnerships, as well as a large number of other partnerships at local, sub-regional and regional level.

Establishing Business Link North West as a wholly owned subsidiary. The

Government has announced that the Regional Business Link Service will close on 25 November 2011.

Managing the European Regional Development Fund of £625m. Establishing two key financial instruments within the ERDF programme. The first,

the NW Business Fund (the £180M Venture Capital Loan Fund), opened for business on 20 December 2010.

The second, JESSICA, the region’s Urban Development Fund will promote urban regeneration projects through a holding fund arrangement. It will enable the region to lever in a £100m loan facility from the European Investment Bank and utilise the European Investment Bank’s expertise.

During 2010/11 we had already put in place a range of measures to drive the process of closure. We had: A Transition Programme Plan. Set up workstreams to implement this Plan. Agreed a resource plan for closure. Developed an Assets and Liabilities plan which has been submitted to BIS. Revised our Governance arrangements to ensure they are fit for purpose. Started to withdraw from the vast range of partnerships and companies on which

we had an interest. Closed over 150 projects. Reduced our post 2010/11 financial liabilities by over £220m.

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Throughout 2011/12 we will focus on ensuring that we divest ourselves of those assets and liabilities prior to closure in the most prudent manner. A key objective will be to minimise the number of assets, liabilities or ongoing activities that default to a residual body. In many cases we have identified clear exit solutions; and where that has not been possible so far, we have sought to assess a range of options and consider where clear choices lie as a basis for further discussion with our BIS colleagues and stakeholders in the region. Our total lifetime funding represents £3.6bn and during 2010/11 we delivered £243m of programme activity. Beyond March 2011 we have a funding commitment of £164m. In April 2011 we will have 151 Single Programme projects still delivering and we will work to reduce this to zero by 31 March 2012. This assumes that we will be able to bring forward completion dates and manage down our commitments through careful and effective negotiations with our partner bodies. Our Board will continue to meet throughout 2011/12 to provide direction and advice to the Agency Executive, to make sure that our approach to the closure of the Agency fits within our established culture as a people-centred organisation as well as meeting statutory requirements. Robust governance arrangements will continue to ensure that the Board is fully informed of developments so that it is able to make effective and defensible decisions. This will ensure the legacy of the Agency is maintained and that there is orderly transition to other bodies and partners of those functions that will continue. Operationally we have scheduled the Audit Committee to meet bi-monthly, which is more frequently than previously; and the recently established Board Transition Group also meets regularly to deliver key closure tasks remitted to it by the Board. We are carefully monitoring our activity around all aspects of closure and paying particular attention to making sure arrangements are in place to ensure clear accountability for both the wind-up of the organisation and decision making. Given the complexities, the Agency has established a staged process to its resource planning and associated redundancy programme. Around 90 staff left the Agency in October 2010 in anticipation of diminishing business. Further redundancies are scheduled throughout 2011/12. The table at the top of page 8 demonstrates the Agency’s position as at 31 March 2011. However, the position is continuously changing due to staff transferring and finding other employment. At the time of publishing it is estimated that there will be around 85 staff leaving in July; 70 leaving in the late Autumn and the remaining staff exiting the business by March 2012. This excludes around 80 staff who will transfer to other bodies under COSOP or TUPE. A small number of staff may be retained for a short time after 31 March 2012 to administer the statutory Annual Report and Financial Statements.

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3 RESOURCE PLANNING NWDA Redundancy Programme In order for the NWDA to effectively implement a redundancy programme, capacity and resource planning has been central to the approach which has taken the following into consideration: A phased approach to declining activity and resource; Potential TUPE/ COSOP transfers; Reduced administration budget for 2011/12; Transition objectives; Closure requirements, including statutory requirements; Resources required to enable transition and closure; Areas where work has already ceased or diminished. The Agency’s redundancy programme is based on three phases of releasing staff: Wave 1 on 7 July 2011, Wave 2 in Autumn 2011 and in Wave 3 in March 2012 when the Agency closes. Formal collective compulsory redundancy consultation of a minimum of 90 days duration commenced on 7 January 2011 and discussions have centred around the declining budget, diminishing workload of Agency staff and the requirements of the closure of the Agency. The consultation on redundancy has been inclusive with all staff and has been held with Joint Consultative and Negotiation Committee (JCNC) which incorporates management, elected staff representatives and the union (PCS) full time representative. Individual consultation is also being conducted by an appropriate manager within the NWDA for staff affected in each phase. The resource plan also considers the requirement for flexible resourcing and the requirement for staff to work flexibly through to closure. Performance management remains high on our agenda and objectives have been set which focus on business closure. Staff support through this period has been paramount to the consultation discussions that have taken place, not only to support emotionally, but also to equip staff with skills to assist them in securing an alternative role external to the Agency within either the public or most probably the private sector. To support staff the Agency has provided tailored workshops and development activities, alongside an intranet page providing useful information to aid with searching for a job. Staff have also been supported by being provided with appropriate time off to attend interviews or sign up with recruitment agencies.

The table below shows the NWDA approach to reducing staff resources through to March 2012. Current Headcount (March 2011) 326

Exits Leave/ Transfer date Reduction Balance

Wave 1 Redundancy 7th July 2011 -101 225TUPE/COSOP Transfers Spring/summer 2011 -77 148Wave 2 Redundancy Autumn 2011 -61 87Wave 3 Redundancy 31st March 2012 -87 -

2011/12 Budget As detailed in Section 5 of this Plan the Agency has a number of ongoing programmes and projects and associated funding requirements for 2011/12. Current funding requirements are reflected in our allocation from Government for the 2011/12 financial year, notwithstanding that further expenditure reductions may be implemented as discussed in Section 5. A separate allocation for administrative expenditure has also been made which reflects our declining staff complement throughout the year as set out above. Government has made central provision for meeting RDA closure costs which fall outside the normal business of delivering an investment programme and running the organisation. We will be drawing down additional resources from this central pot as specific closure costs, such as staff redundancy, are identified. The current budget for the investment programme and running costs, which is subject to ongoing review in the context of Section 5 of this Plan and confirmation from BIS for the 2011/12 allocation, is as follows:

Corporate Objective

£m

Programme Support development of internationally competitive sectors 23.7m Improve formation, survival and growth rates of businesses 33.3m Develop higher added value activity through innovation 9.1m Realise opportunities from globalisation 3.7m Develop leadership and management skills in the workforce 3.5m Stimulate demand for higher level skills in the workforce 0.4m Grow the size of the workforce 0.07m Support the development of major employment sites & premises 10.0m Improve the physical conditions for private sector investment 17.7m Adapt to climate change and increase sustainable resource use 4.7m Improve the image of the region to businesses and visitors 1.1m Other costs 0.6m

Total Programme (Grant In Aid and Receipts) 107.87 Running Costs (admin) 16.9

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4 CLOSURE OF THE AGENCY The Agency has established a fully integrated programme as a key tool to managing all transition and closure activities. The programme is structured in accordance with best practice and contains workstreams of activity which underpin the closure process and specific projects for the transfer of functions and assets. All of the activities and tasks associated with transition and closure which are described in this Plan are covered by that programme. Statutory Closure A full log of actions required to effect the legal closure of NWDA has been established. This includes action required beyond the 2011/12 financial year to formally close the organisation. Areas of activity to be undertaken throughout the year include: Withdrawal from external companies and other corporate interests (withdrawal to

be on a phased basis as the business need for NWDA’s engagement ceases) Closure of Business Link Northwest, a wholly owned subsidiary Cessation of statutory planning function Transfer of all contracts with ongoing rights or obligations to successors Completion of all payments to suppliers and creditors Completion of all staff payments and pension liabilities Termination of all licences, insurances and similar agreements Finalisation and posting of accounts for our final year and closure of banking

facilities Finalisation of all tax matters Transfer of all inventories, IT systems and records associated with statutory

closure to Government

Key Milestones Date Start withdrawal from corporate interests March 2011 Cease statutory planning role September 2011 Closure of Business Link November 2011 Closure of NWDA March 2012 Final Accounts June 2012 Complete all outstanding statutory closure actions* June 2012

* A small number of actions can only be undertaken later in 2012 and it is assumed that these will be performed by BIS.

Value Transfer Since the announcement of RDA abolition, we have worked closely with Government departments and regional stakeholders to seek to ensure a smooth and effective transition to the new landscape for economic development. At the time of writing this Plan there is still some uncertainty around which RDA functions will be continued in the future although it is known that the following activities will transfer to national bodies:

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Business Link – The Northwest service will close in November 2011, along with all other regional services, and will be replaced with a national service, to be managed by the Department for Business Innovation and Skills (BIS).

Manufacturing Advisory Service – The Northwest service will continue to operate

until December 2011 whereupon it will be replaced with a new national service which is to be procured by BIS.

ERDF – The management of the 2007/13 Northwest Operational Programme will transfer to the Department for Communities and Local Government (DCLG) in July 2011. This will involve the transfer of the NWDA staff who currently manage that programme.

RDPE – The management of this programme will transfer to the Department for the Environment, Food and Rural Affairs (DEFRA), also in July 2011. Again this will involve the transfer of NWDA staff.

Inward Investment – The role of attracting foreign direct investment will transfer to UKTI in late Spring. NWDA staff engaged in that activity will transfer to UKTI’s appointed contractor for the delivery of this service.

GBI Grants in Assisted Areas – The management and monitoring of existing grants to businesses will transfer to BIS in late summer / early Autumn (new GBI grants have ceased).

Research and Development – This grants programme, GRAND, to support

Research and Development will be continued by the Technology Strategy Board (TSB). The transfer date is unknown at the time of writing this Plan. The TSB also intends to continue, at a national level, with collaborative R&D and Knowledge Transfer Partnership programmes, activities which have previously involved RDA delivery at the regional level.

We will support the transition of these activities to the new arrangements, a role which will include facilitating staff transfers where applicable and the transfer of records, systems and other knowledge assets. At the time of writing this Plan, discussions continue with Government departments on other potential transfers to national level and with the Regional Leaders Board on the potential for transfers at regional or sub-regional level. The latter includes discussions around specific business support, research activities and the capability for individual or groups of Northwest LEPs to continue to deliver these services. More detail on specific functions is provided in section 6 of this Plan.

Key Milestones Date Final decisions on any regional transfer of functions received April 2011 Final decisions on any further national transfer of functions received April 2011 Inward Investment transfer to UKTI May 2011 ERDF transfer to DCLG July 2011 RDPE transfer to DEFRA July 2011 GBI transfer to BIS September 2011 Business Link closure and transition to new national service November 2011 MAS closure and transition to new national service December 2011

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Assets and Liabilities The Government has placed an obligation on all RDAs to dispose of or transfer all assets and liabilities, either through market sales or to suitable successors, prior to closure in a way which conforms to a set of key principles which include: Asset disposal to be based on the principles of the RDA Act – to further economic

development and regeneration; Disposal must be state aid compliant; Assets and liabilities to be packaged together where possible and with the aim to

achieve the best possible economic outcome for the region; The cost of asset disposal must be affordable in the current fiscal climate; Consideration to be given as to how the asset will prosper with its new owner,

taking account of the original objectives when acquiring the asset. Such consideration to be balanced with other considerations – achieving best value, meeting local demands and ambitions, national policy aims, the need for national deficit reduction, the views of localities on best use of the asset, and the capacity of the new owner to hold and develop the assets with any associated risks.

Only those assets and liabilities where sale or transfer has not been possible by March 2012 to pass to Government for future action. We have itemised all our assets and liabilities in an Assets and Liabilities Plan which was submitted to Government in January 2011 with proposals on how they may be transferred prior to closure. At the time of writing this Business Plan, the Government is still reviewing that document and making its decisions on our proposals on an ongoing basis for different groups of assets and liabilities. Our assets and liabilities fall into the following categories: Land and property which offers a reasonable prospect of disposal on the open

market during 2011/12 – these disposals have been agreed by Government and are being progressed. (8 sites are in this category).

Land and property where transfers to other bodies can be readily effected during

the year – again these transfers will be progressed following Government approval. (12 transfers will be progressed).

Land and property which is not ready for open market disposal prior to our

closure, including sites where new public investment is required before they can be sold for development and sites which are of strategic importance to economic development objectives of the area where they are located. The future management of these sites is subject to ongoing discussions with Government. (This relates to 26 sites).

Land and property income streams which includes actual income from the

Agency’s property joint venture, future income from JESSICA and potential future

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income through clawback and overage agreements for third party land acquisitions and private sector developments. The question of who the future beneficiaries of these income streams should be is subject to ongoing discussions with Government.

Venture Capital Loan Funds – It has been agreed that our interests in Northwest

Business Finance, which manages the Northwest Fund, will transfer to Capital for Enterprise Ltd (CfEL) in September 2011. We are working with CfEL to progress this transfer. The question of who the beneficiary of future returns from previous funds administered by NWDA is subject to ongoing discussions with Government.

Office leases – We will exit from all office leases upon their expiry during 2011/12,

including overseas offices occupied under licence. For the leases which do not expire until after March 2012, we will actively seek to assign those leases during the year and we will work closely with BIS on this activity as they will acquire the liability for any ongoing leases that we are unable to assign.

Office furniture and equipment – Those items with value will be subject to market

sale and those with no value will be offered to charities. Programme liabilities – Notwithstanding our best endeavours to close out our

investment programme by March 2012 (see Section 5 of this Plan), there will be some programmes and projects which will need to continue, and be funded, beyond our life. There may also be actual and contingent liabilities associated with outstanding CPO compensation and ERDF grants that we have received. During the first quarter of 2011/12, we will review all of these liabilities in detail with Government and agree a set of succession arrangements to enable a planned and managed handover to nominated successors towards the end of 2011/12.

Key Milestones

Date

Final decisions from Government on assets & liabilities received April 2011 Start marketing assignment of office leases April 2011 Land and property disposals and transfers start April 2011 Start furniture and equipment disposal April 2011 Agree succession arrangements for programme liabilities June 2011 Withdrawal from overseas offices June 2011 VCLF interests transfer to CfEL September 2011

Knowledge Management We currently hold: 50,000 hard copy files (including those held by Business Link NW) 2.8 million electronic documents (excluding emails) 42 data systems Various other knowledge assets including our research base and other IPR We have already produced a high level knowledge management inventory which quantifies our records and knowledge assets, by function, and this has enabled

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Government to provide guidance on future recipients of retained records. Our approach to knowledge management throughout 2011/12 will therefore be as follows: Review all records and categorise for retention or disposal (with priority given to

those records associated with the early transfer of functions or early disposal/transfer of assets)

Review the quality of those records which are required by successors to support

ongoing operational activity such as live projects or transferred assets and liabilities (with the same prioritisation as above)

Package those hard copy and electronic records for transfer alongside a

transferred function, asset, liability or project. Package other records for transfer which require retention but are non-

operational. Agree with Government retention or disposal arrangements for data systems. Take decisions on research and IPR knowledge assets in light of decisions on the

future of the regional research function.

Key Milestones

Date

Agreement on future retention of data systems received April 2011 Decisions taken on research and IPR knowledge assets May 2011 First package of records ready to support function transfer June 2011 Complete categorisation of all records for retention or disposal June 2011 Availability of full inventory of all records to be retained July 2011 Complete QA of all records required for operational purposes September 2011 Residual retained records transferred for archiving March 2012

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5 CLOSURE OF PROGRAMME Upon announcement of RDA abolition and in-year budget cuts, we took immediate action last summer to close the project pipeline and instigate a series of budget reductions to existing programmes and projects. This has had the consequential effect of significantly reducing the size and value of the 2011/12 budget and programme. At the time of writing this Plan, the 2011/12 programme consists of 151 Single Programme projects in delivery. During the year we will seek to reduce to zero by 31 March 2012, the number of ongoing projects by bringing forward completion dates. The Agency is under an obligation by Government to identify scope for further expenditure reductions in 2011/12 without unilaterally breaking contracts and without adversely impacting on value for money, ERDF programme performance or activities which are of national or regional importance (including those which will or may transfer to national or regional/local bodies as continuing priorities). The Agency is also under an obligation to minimise the amount of ongoing project activity beyond our closure date. As a consequence of the above, we will complete a review of all our existing projects in the first quarter of 2011/12 in order to: Define precisely the content and value of our remaining programme for 2011/12

and future years. Identify and implement any further budget reductions for 2011/12. Agree, initially with Government and then with nominated successors, the

succession arrangements for the ongoing management and funding of projects which will continue beyond our closure.

All projects which do continue beyond our closure will be handed over to agreed successors, together with appropriate records and other knowledge transfer, prior to our closure date. We will also identify, in the first quarter of 2011/12, all outstanding actions required post closure on projects which are already completed or are due to complete before 31 March 2012. Such actions may include: Outstanding payments e.g. retentions Project audits for expenditure incurred during 2011/12 Outputs monitoring Clawback monitoring

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We will seek agreement with Government within the first quarter on whom these responsibilities are to pass to.

Key Milestones

Date

NWDA Board decision on project completion dates & budgets April 2011 BIS notified of all post closure project activities April 2011 Agree with BIS proposed successors for ongoing projects June 2011 Agree succession arrangements with nominated successors July 2011 Start project handover process October 2011 Complete project handovers March 2012

Key Performance Indicators The Agency has developed a set of Key Performance Indicators (KPIs) to ensure an efficient move towards closure. The KPIs, which are monitored monthly by the NWDA Board, cover the following key areas: The number of open projects which will be closed or transferred to another

delivery body. The number of sites owned which will be transferred in accordance with the

Assets and Liabilities Plan. The number of Directorships and Ownership interests from which the Agency

will withdraw as early as possible in the year. The reduction in staffing, as shown in the table on page 8. Spend against budget. The budget allocation for the Agency’s Programme, as

confirmed by BIS, is £108m for 2011/12. The Agency will also ensure ongoing monitoring of its responses to BIS Action Notes, requests under the Freedom of information Act, Parliamentary Questions and any complaints received.

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6 2011/12 DELIVERY During the year we will be focused on closure of the programme and the Agency as outlined above. However we will still have a budget of over £100m for ongoing activities that were started prior to April 2011. Some of these will conclude during the year, but some will transfer to other bodies on, or before, our closure in March 2012. In many cases, for activity not covered by national transfers (i.e. ERDF, RDPE and Inward Investment) NWDA is working with local partners to examine whether and how activity can continue beyond our closure. The section below outlines the major activities we will deliver during the year, and where possible, actions being taken at the time of writing to secure activity beyond our lifetime. SECTORS We will deliver: The Manufacturing Advisory Service (MAS) until December 2011 and seek to

influence the design and procurement of the new MAS4 national service. Supply chain and training projects in automotive, aerospace and food and

drink sectors. Projects related to the National Aerospace Technology Strategy. The centre of excellence in Biopharmaceuticals, the Manchester Biomedical

Research Centre and the Integrative Mammalian Biology project. A cluster programme via Vision + Media until its transition to Creative England. The Air Services Development Fund project. Financial and other support to the five sub-regional tourist boards and

Hadrian’s Wall Heritage Limited in their transition and restructure. The Visitor Economy Attraction Fund supporting Chetham’s School of Music,

Lowther Castle and Gardens, Carlisle Roman Gateway and Roman Maryport The Food Tourism project. In addition we will support the following transfer activity: Work with the cluster organisations to identify any sustainable future and any

role they can provide in supporting LEPs. Work with the NW Manufacturing Forum to develop it into a sustainable

model. Consider and agree with the Tourist Boards the future arrangements for

Regional Tourism Management Group and the Visitor Economy Commission. Work closely with VisitEngland on new organisational delivery and support

mechanisms.

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ENTERPRISE SUPPORT We will deliver: The regional Business Link Service until its closure in November 2011, and

work to ensure a smooth transition into the national service. The Intensive Start-up Support project (ISUS) until December 2011. The Business Start High Growth project until its end date in August 2011,

reviewing it in the light of BIS’s emerging Coaching for High Growth proposals. The existing Grant for Business Investment (GBI) and Grants for Research

and Development (GRAND) projects. The Transitional Small Business Loan Fund. NW Business Angel events during 2011/12, supporting the transfer to a

suitable legacy delivery partner. Projects to develop enterprise culture including the Prince’s Charities in

Burnley project until completion in July 2011 and the Coalfields Project. In addition we will support the following transfer activity: Explore transfer opportunities for elements of the Business Link service

including: Access to Finance, Innovation Advisory Service, Targeted Service, Enterprise Europe Network (EEN), CRM – data warehouse

Complete the transfer of Agency interests in the Venture Capital Loan Fund (VCLF) to appropriate national/regional bodies.

SCIENCE AND INNOVATION We will deliver: Vanguard House, Daresbury and agree the transfer of NWDA’s interests in the

Daresbury JV company Northwest e-Health The Knowledge Centre in Materials Chemistry The Manchester Biomedical Research Centre Capacity Building Programme The Science Fund projects – North West Virtual Engineering Centre and the

Composites Certification and Evaluation Facility In addition we will support the following transfer activity: Look at the future options for NW Science Council INTERNATIONALISATION We will deliver: The “Developing your trade potential” and the accessing New Markets

programmes. The UK Data Capture investment to support Census related jobs in Trafford

Park.

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The Transitional Alliance of Clusters Towards Improved Co-operation Support (TACTICS) programme, identifying an organisation willing to take it on.

In addition we will support the following transfer activity: Close down of NWDA overseas offices by the end of June 2011. Move Investor Development and FDI work and staff to the new UKTI

contractor. Pass the secretariat of the Northwest International Business Forum and the

Stakeholder Forum to UKTI. Work with partners to change the size and scope of the current ERDF trade

programme and to obtain ERDF match for Local Authority Investor Development funding.

SKILLS AND EMPLOYMENT We will deliver: The Leadership and Management Programme (LEAD) until December 2011,

working with the provider network to develop a model for its continued delivery.

The Mentoring programme, working to define legacy arrangements. The Carlisle College campus re-development and Furness College new build. The NW Coalfields Regeneration Programme (Phase II). Funding support to 5050vision, the Northwest Forum on Ageing, identifying

ways for the Forum to be sustainable beyond the life of NWDA. CAPITAL INVESTMENT We will deliver: About 50 capital projects already on site, including:

o Key projects in East Manchester (including Ancoats Urban Village, New Islington public realm, the BMX Centre and the Sharp building digital media centre).

o Key projects in Salford (including Chapel Street and the City of Salford Stadium).

o Rochdale Kingsway Business Park. o Remediation and infrastructure works at Bickershaw Colliery, Wigan o Key projects in Liverpool (including Mann Island, Baltic Creative, St Paul’s

square and public realm in Mount Pleasant, Castle Street and the Commercial District).

o Remediation of the former St Helens glass site for new retail and leisure development.

o Atlantic Park (Sefton). o Orford Park – a mixed use sports related development in Warrington, o Blackpool Leisure Assets.

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Management of the JESSICA initiative, ensuring completion of the UDF Operational Agreements and the subsequent delivery of projects. We will transfer NWDA’s rights in the JESSICA fund to a receiving body.

Asset management of the NWDA’s Property Portfolio (44 directly owned sites), until such time as a disposal strategy is approved by BIS and implemented.

Management of the PPP Joint Venture, including relationship management with Aviva Investors and Warners (Estate Managers). We will transfer NWDA’s shareholding in Norwepp Limited to a receiving body.

In addition we will support the following transfer activity: Work to deliver the Assets and Liabilities Plan once approved by BIS,

transferring NWDA’s interests to other bodies RURAL We will deliver: The RDPE budget until its transfer to DEFRA on 1 July 2011, working with

DEFRA to deliver the RDPE Transition Plan. Leadership on a range of rural forums and partnerships until 1 July 2011. In addition we will support the following transfer activity: Work to find a sustainable future for the North West Regional European Group

on CAP reform ENERGY AND ENVIRONMENTAL We will deliver: The Newlands 2 Land Regeneration Programme (including the formal opening

of Brockholes - Preston), and develop appropriate legacy arrangements. The development of the Festival Gardens (Liverpool). The Market Development for Renewables project. The Climate Change Partnership (including the DCLG funded Low Carbon

Skills Fund and the NWIEP funded CLASP Local Authority Support Programme) and seek to ensure successor arrangements.

The Construction Knowledge Hub. The Eco-innovation programme. The Embedding Resource Efficiency project and novate the contract to an

appropriate successor body. The North West Waste Technologies Centre of Excellence. The Power Technologies Innovation project. The Nuclear Advanced Manufacturing Research Centre.

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In addition we will support the following transfer activity: Work with The Land Trust to explore dowry options for Land regeneration

programmes. Develop legacy arrangements for the Sustainable Consumption and

Production (SCP) Partnership to ensure delivery of the SCP Action Plan. Work with existing project partners (particularly Enworks and ENVIROLINK) to

Develop sustainable business models. Find a legacy body for the Nuclear, Tidal, Photovoltaic and Solid State

Lighting networks. MARKETING We will deliver: Existing major event contracts (e.g. Lakes Alive, Tour of Britain) and provide

support / advice to partners on securing future major events. We will also determine transition arrangements for contracted major events which take place after March 2012.

Activity which will lead to a strong regional legacy from 2012 in line with NW 2012 Legacy Framework Plan e.g. Pre-Games Training Camps, Inspire Mark, Business contracts.

Support to LOCOG in relation to London 2012 operational requirements in the NW e.g. volunteer recruitment, Torch Relay.

STRATEGIC INFLUENCE We will deliver: Economic intelligence until Autumn 2011, working with the Regional Leaders

Board to find a suitable future A legacy / lessons learned document in Autumn 2011 A European service for partners, and support to the NW Regional European

Partnership, until the end of June 2011, working with the Regional Leaders Board to find a suitable future*

The effective transfer of ERDF to CLG on 1 July 2011 Six evaluations of the Agency’s major investments by the end of June 2011 Effective governance, fulfilling our statutory requirements (e.g. FOI requests)

and support to the Board European Partnership and associated sub groups until July 2011 * The Brussels office will close at the end of June 2011.

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7 NWDA’S LEGACY For nearly twelve years, the Agency has worked hard to invest in projects which have made the biggest impact on the regional economy and we have learned a lot over this time about what works and does not work. We will publish a Legacy Document (in two parts), which aims to share our experience, good practice and learning, for the benefit of leaders, policy makers and practitioners in the post-RDA economic development landscape. It will also set out how key activities will be taken forward and where further information can be found. Part one “Business, People and Places: Learning from NWDA’s Experience” will be published in June with part two “NWDA Record of Activity” to be published in the Autumn. The report will provide a clear picture of the learning gained by the Agency as we tried over the decade or so of our existence to improve the North West for businesses, people, and places and we hope that it is helpful to everyone involved in economic development, regeneration, and the big issues facing our places in the coming years. The Agency’s work is not yet totally finished, and our focus for 2011/12 must be on effective closure and the smooth transfer of activities where necessary. However, we hope that the important contribution the Agency has made to the economic development of the North West over the last twelve years is recognised, and we hope the new players will be well placed to capitalise on these achievements, learning and ways of working. After all, while institutional arrangements may alter, the issues, assets and opportunities for this part of the UK do not. The North West's five approved Local Enterprise Partnerships plan to be operational from 1 April 2011 and they will have a key role in ensuring some of our legacy continues. This includes for example, the positive outcomes from the Northern Way and in particular the achievements around the Transport Compact, which proved how successful collaboration across boundaries can be. The LEPs may benefit from that good practice. To date we have offered whatever help we can to support their development and establishment and ensure the spread of good practice.

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8 THE FUTURE The Local Growth White Paper of October 2010 and the Budget on 23 March 2011 have set the context for sub-regional partnership working on economic development following the closure of RDAs. The White Paper provided some detail on the creation of Local Enterprise Partnerships (LEPs) and their roles; which RDA economic development functions will be led at national level; and how the £1.4B Regional Growth Fund (RGF) will operate. The Budget announced the creation of 21 Enterprise Zones and trailed decisions on the first round of the Regional Growth Fund (RGF) and the opening of further rounds.

Government has now approved 33 LEP proposals which cover 90 per cent of the population, 1.8 million businesses and 21 million employees. There is some overlap, with 23 Local Authorities in two LEPs, and gaps, with not all Local Authorities in a LEP area signed up as members. The North West has five LEPs – Greater Manchester, Liverpool City Region, Cheshire & Warrington, Cumbria and Lancashire. The Government’s White Paper outlined LEPs’ future roles and functions and how they might influence and guide economic development locally. The first round of Regional Growth Fund bidding closed on 21 January 2011, with submission of 464 bids worth £2.78bn. The North West submitted 89 bids, more than any other region. The Government announcement on 12 April 2011 confirmed that nine of that 89 were successful in securing investment (subject to a due diligence process and finalising funding agreements). The total Round 1 RGF investment in the North West will be circa £24.5m; and it is anticipated that this will create 5,533 direct, and 2,279 indirect jobs. The Budget’s “Plan for Growth” included a proposal to create 21 Enterprise Zones across England. These will benefit from business rate discounts; capital allowances for manufacturing; simplified planning; and superfast broadband. Government has agreed four sites already: Liverpool and Wirral Waters, Manchester Airport City, Nottingham Boots Campus London Royal Docks. Birmingham and Solihull; Sheffield City Region; Leeds City Region; Western England; The Black Country, Tees Valley and North Eastern LEP areas have also been invited to submit site proposals. The remaining LEPs will be invited to bid for the remaining 10 Enterprise Zones, to be determined by summer 2011.

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BOARD AND EXECUTIVE Board Members Robert Hough, Chairman Vanda Murray, Deputy Chair Peter Hensman, Deputy Chair Peter Allen John Brooks Joe Dwek Clive Elphick David Goldie Frank Hont Cllr Tony McDermott Cllr John Merry Anne Selby Lord Peter Smith John Stageman Cllr Susan Williams

Executive Mark Hughes, Chief Executive Duncan Gray, Executive Director Resources Simon Nokes, Executive Director Policy & Planning Tim Sheward, Executive Director Economic Development Diane Summers, Executive Director, Human Resources & Development Nigel Dove, Director of Marketing Steven Zdolyny, Director of Legal Services & Estates.

More information about the Agency and its closure activities can be found on our website www.nwda.co.uk/transition.