This Bulletin reports the main issues covered at the full Assembly meeting of 12 July 2006.

ASSEMBLY ELECTIONS

Cllr Keith Mitchell was re-elected unopposed as Chairman of the Regional Assembly.

Cllr Don Turner was re-elected as Deputy Chairman with a large majority after a vote.

Cllr Louise Bloom is the new Vice Chair for the Liberal Democrats replacing Cllr Cec Tallack, who stood down as vice-chair after three years. Ian Chisnall, representing social and environmental partners, Councillor Alan Hopkins, representing other parties, and Douglas Horner representing economic partners, remain Assembly vice-chairs.

CHAIRMAN'S ANNUAL REPORT

Cllr Keith Mitchell updated the Assembly on the work of the Executive Committee and Leadership Group, since the last full Assembly meeting in March 2006. Topics included:

• Select Committees on SEEDA's work
• Assembly responses to consultations
• Rural issues
• Health issues.

He also looked forward to priorities for the coming year:

• Comprehensive Spending Review 2007 - there is intense pressure on public finances, leading to a focus on making better use of resources and reducing expenditure outside the priority areas of health and education. However Cllr Mitchell said the Assembly would continue to make the case for more infrastructure investment
  
  
• Constitutional and operational matters - amendments to the constitution are being developed by the Leadership Group and will be brought to the November Plenary. Amendments will review party representation and the addition of the Regional Transport and Housing Boards
  
  
• English Regions Network - Cllr Mitchell becomes Chairman of the English Regions Network this month. He will hold the position for two years.

MINISTERIAL ADDRESS

Phil Woolas MP had to cancel his keynote speech at short notice because of parliamentary business.

RPC CHAIRMAN'S REPORT

Cllr Christine Field, Chairman of the Regional Planning Committee (RPC), updated the Assembly on the Committee's recent work.

The main focus for the RPC for the past year has been the South East Plan. A particular success was the level of co-operation achieved between local authorities in delivering the South East Plan.

However the Committee has also had to deal with a wide range of issues arising from the Assembly's role as the statutory regional planning body, particularly ensuring a proper balance of economic, social and environmental needs in planning for future levels of growth.

This was highlighted by the Thames Basin Heaths Special Protection Area, the environmental protection covering a large area of the Thames Valley, Hampshire and Surrey which has had a large impact on home building plans there.

DIAMONDS FOR GROWTH

Marion Headicar, Chief Executive Portsmouth City Council, gave a presentation on the ‘diamonds for growth’.

The ‘diamonds’ have been identified in the new Regional Economic Strategy (RES) for the South East, and reflect the South East Plan's priority for sustainable urban renaissance and economic growth. They show how the Government's city regions agenda could work in the South East.

The eight ‘diamonds’ account for one third of the region's eight million population with economies that have grown faster than the region as a whole and the UK. They were cited in the region's advice on regional funding allocations earlier this year as priorities for infrastructure investment.

There was an extensive debate about the diamonds including:

• How they were identified
• The importance of co-operation and partnership working across local authority boundaries
• Whether they will result in areas outside the ‘diamonds’ losing out on funding and skilled workers
• The need to avoid further layers of bureaucracy.

SEEDA ANNUAL REPORT

Jim Brathwaite, SEEDA Chairman, and Pam Alexander, SEEDA Chief Executive, reported on the Development Agency's work over the last year.

Key achievements were:

• SEEDA exceeded its main performance targets:
• SEEDA funded projects have created or safeguarded over 4,000 jobs with 2,000 further jobs created or safeguarded through Foreign Direct Investment and almost 9,000 people assisted into employment
• Almost 36,000 businesses have been assisted to improve their performance, and SEEDA has supported the creation or attraction of over 2,000 growing new businesses
• Over 100 hectares of brownfield land have been brought back into use
• Almost 42,000 people have been assisted in skills development
• £261m of inward investment was secured
  
  
• Working closely with the Assembly and GOSE on the Regional Funding Allocations
• Liaising with local authorities on the 2nd phase of Local Area Agreements
• The Regional Economic Strategy (RES) review
• The Olympic co-ordination committee
• European progress including the Grow initiative and the European Social Fund.

Goals for 2006/07 include:

• Delivery of the Corporate Plan
• Implementation of the RES
• Comprehensive Spending Review 07
• A successful Independent Performance Assessment
• Delivery of efficiency and manpower plans.

Key issues for this year include:

The need for growth, but not at the expense of the environment. There needs to be an improvement in resource efficiency.

• It is not a case of ‘business as usual’ as the costs are too high. Energy bills have gone up 60% in the last year and drought orders are also impacting on business
• SEEDA has successfully lobbied for more funding through the Business Resource Efficiency and Waste (BREW) programme and will continue to press for more as part of its drive to improve resource efficiency in the region
• SEEDA is working with the South East Water Forum and Environment Agency to start a water savings trust. Businesses currently use around 30% of the South East's water
• Standards of new development also need to be improved to increase resource efficiency.

REGIONAL ECONOMIC STRATEGY

Paul Lovejoy, SEEDA Executive Director of Strategy and Sustainability, updated the Assembly on the progress of the Regional Economic Strategy (RES).

There were 180 responses to the consultation which closed on 30 June. A comprehensive summary of these will be available on the SEEDA website shortly.

The Assembly welcomed SEEDA's outline of how it plans to amend the RES following consultation. There remained concern over the inclusion of support for growth at Heathrow and the majority of members felt unable to agree to the RES with this in place.

The Assembly agreed to refer the final draft of the RES to the Executive Committee for final approval with the following caveats:

• The Assembly cannot support growth at Heathrow
• There needs to be clarification over the designations of diamonds for growth and the existing hubs in the South East Plan
• The proposed growth rate needs to be clarified vis-à-vis that assumed in the South East Plan.

IMPLEMENTING THE SOUTH EAST PLAN

Martin Tugwell, Assembly Planning Implementation Director, presented a progress report on implementing the South East Plan.

The Implementation Plan is an integral part of the South East Plan. It will be the basis for arguing for investment for regional and sub-regional infrastructure.

The ambition is for a single implementation Plan for the South East Plan and Regional Economic Strategy (RES) in order to maximise the alignment and investment priorities.

The Assembly agreed to:

• Develop an implementation plan for the region that forms part of the South East Plan but which reflects the implementation issues associated with the Regional Economic Strategy, although still not supporting growth at Heathrow and Gatwick
• Work with SEEDA to develop the region's Implementation Plan
• Organise a Regional Infrastructure Summit as part of the process of developing the Implementation Plan.

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Last updated: 21 August 2007